N-1Nova Scotia Power Inc. - Accounting Policy and Procedure Manual 5/14/2010
43 passages
POLICIES - 04 Expenditures for amounts less than the stated materiality limits should be charged to operations as they are incurred. - 05 When additional costs associated with capitalizing immaterial amounts exceed the benefits of providin...
AI summary The policies outline guidelines for handling expenditures below materiality limits, expensing costs when capitalizing immaterial amounts is not beneficial, and annual reviews of materiality limits by Corporate Accounting Services and Capital Accounting to ensure their continued relevance.
GENERAL - 01 Nova Scotia Power Inc. (NSPI) is the primary operating subsidiary of Emera Inc, a diversified energy company based in Halifax, Nova Scotia. Emera invests in electricity generation, transmission and distribution as well as gas...
AI summary Nova Scotia Power Inc. (NSPI), a subsidiary of Emera Inc., outlines its corporate cost allocation policies, ensuring fair distribution of support services and general expenses among NSPI and its affiliates. The policy aligns with the Code of Conduct's Section 6.11, which mandates equitable allocation based on the nature of corporate services.
SELECTION AND APPLICATION OF ALLOCATION METHODOLOGY - 06 The procedures followed by Corporate Accounting to allocate the corporate support services Operating, Maintenance and General (OM&G) to affiliates are: - a. Identify cost centres tha...
AI summary The document outlines procedures used by Corporate Accounting to allocate corporate support services costs to affiliates, including identifying cost centers, interviewing managers, reviewing industry practices, and applying selected allocation methodologies. Calculations are updated monthly, quarterly, and annually.
DIRECT EXPENSE ALLOCATION 10 Corporate support services costs that can be directly attributed to a specific entity are directly charged to the entity.
AI summary The document outlines a principle for allocating corporate support services costs, specifying that expenses directly attributable to a specific entity should be charged to that entity.
COMMON COST ALLOCATORS - 11 Where services are provided to a number of affiliates and direct charging is not readily determinable or practical, one or more of the following methods or "costs drivers" are used for allocating costs. - 12 Tim...
AI summary The document outlines methods for allocating costs among affiliates when direct charging is impractical, including Time Analysis, Project Analysis, and Total Capitalization. It references the UARB 2002 Rate Case Decision requiring time-keeping records for senior management and details allocation based on factors like employee numbers, revenue, and asset value.
RESPONSIBILITY - 24 Corporate Accounting Services will be responsible for: - a. identifying cost centres that provide services to both NSPI and its affiliates; - b. choosing allocation cost drivers; - c. identifying and calculating an appr...
AI summary The document outlines responsibilities for Corporate Accounting Services and NSPI's Controller regarding cost allocation policies, including identifying cost centers, selecting allocation drivers, and managing overhead distribution to affiliates.
DEFINITIONS - 28 For the purpose of the Cost Allocation Policy and interpretation of this Policy, the following definitions will apply. - 29 Affiliate The Nova Scotia Companies Act defines an Affiliate as: - (1) A company shall be deemed t...
AI summary The text defines key terms under the Cost Allocation Policy, including 'Affiliate' per the Nova Scotia Companies Act, 'Corporate Support Service' as shared functions across NSPI and Emera, and 'Cost Allocation' as methods to apportion costs. Definitions focus on legal structures, corporate services, and cost apportionment frameworks.
COST ALLOCATION POLICY – 1570 more overall factors (also known as general allocators). - 32 Cost Driver a measurable event or quantity which influences the level of costs incurred and which can be directly traced to the origin of the costs...
AI summary The document defines key terms related to cost allocation, including cost drivers, common costs, direct costs, regulated/non-regulated services, and total capitalization. These definitions establish a framework for allocating costs among entities and affiliates within a regulated environment.
06 Interest Expense Interest on long-term debt is recorded at current transaction date rates and recognized in operations. 4 CICA Handbook 1650.20
AI summary The document states that interest on long-term debt is recorded at current transaction date rates and recognized in operations, citing CICA Handbook 1650.20 as a reference.
INTRODUCTION - 01 Since the move to online input of General Ledger data, the Chart of Accounts has undergone extensive changes. With the exception of the first segment, Company , all segments of the accounting flex field have been modified...
AI summary The document outlines changes to Nova Scotia Power Inc.'s Chart of Accounts following the transition to online General Ledger data input. Modifications include expanding the Account Segment, enhancing the Activity Segment for transmission/distribution details, reorganizing the Cost Centre Segment, and standardizing Project Segment codes to improve cost tracking and management.
09 Cost Centre Segment The fourth segment indicates the Cost Centre . The lowest level of cost centre available (department/district) is termed the "Child" and is the only level which can accept direct charges. Summary reports to divisiona...
AI summary The text explains the structure of cost centres, distinguishing 'Child' (lowest level accepting direct charges) and 'Parent' (compiling data for reports). It emphasizes consistency in Capital Work Orders and references the Chart of Accounts for full cost centre listings.
AI141 1/6/2010 5:19:00 PM Cost Centre Code Number Range 000-100 201-210 301-400 401-499 500-540 541-899 900-999 + Alphabetic Codes Major Classification Fossil Fuel Generation Customer Operations Page 2: [3] Deleted AI141 1/6/2010 5:20:00 PM
AI summary The text outlines cost centre codes and their number ranges, including classifications such as Fossil Fuel Generation and Customer Operations. It appears to be part of a regulatory document related to accounting and cost management.
Land and Land Rights - 03 Includes the cost of land owned and the rights, interests and privileges held by the Company in land owned by others. Land and land rights shall be classified within the function according to the major purpose for...
AI summary The text outlines accounting procedures for land and land rights, including cost allocation, apportionment between land and buildings, handling of deferred payments, and treatment of proceeds from land sales. It specifies when costs are charged to land accounts versus other plant accounts and how surplus land value is accounted for.
Buildings, Structures and Grounds - 04 Includes the installed cost of all permanent structures, services and improvements used to house, support, or safeguard property or persons. Also includes those items that are permanently attached to...
AI summary The text outlines accounting rules for buildings, structures, and grounds, including cost apportionment between land and buildings, demolition costs, excavation expenses, and allocation of foundation and improvement costs. It specifies how different construction and acquisition scenarios should be classified and accounted for.
Indirect Costs 06 Includes administrative/financial costs of construction (allowance for funds used during construction, administrative overheads, inspections, traffic control, pole stacking, etc.) plus all costs associated with the design...
AI summary The text defines indirect costs as administrative and financial expenses related to construction projects, including allowances for funds used during construction, overheads, inspections, and project management costs, as well as design and survey expenses.
Site Restoration 10 Included in this activity is the present value of the future cost of site restoration associated with the generating facilities.
AI summary The text states that the present value of future site restoration costs for generating facilities is included in the activity, highlighting the financial consideration of long-term environmental remediation expenses.
Street Lighting 24 Includes the installed cost of all equipment used entirely for the unmetered street and highway lighting systems.
AI summary The text specifies that the installed cost of equipment for unmetered street and highway lighting systems is included in the rate proceeding, highlighting infrastructure cost considerations relevant to regulatory analysis.
Office Equipment 30 Includes the installed cost of all office related furniture and equipment. This account does not include general purpose computer equipment.
AI summary The text defines the scope of the 'Office Equipment' account, specifying it includes installed costs of office-related furniture and equipment but explicitly excludes general-purpose computer equipment.
04 Fuel Consumption Fuel costs are charged to expense as follows: - a. Fuels are recorded as inventory when received. - b. As fuel is consumed, its cost is relieved from inventory using the weighted average cost method and is charged to fu...
AI summary Fuel costs are accounted for by recording inventory upon receipt and expensing them via weighted average cost method as consumed, using consumption reports from generating plants. Derivative transactions are also included in fuel expense. Power purchases are expensed as received.
01 Interest Expense The interest expense figure on the Statement of Earnings is a net amount comprised of several different income and expense items. The individual items include: - a. long-term debt interest; - b. amortization of debt iss...
AI summary The interest expense on the Statement of Earnings is a net amount comprising long-term debt interest, amortization of debt issue costs, foreign exchange costs, short-term debt interest, bank charges, gains on debt defeasance portfolios, and hedge position payments/receipts.
11 Short-term Interest (Account 083) This account includes all interest, commissions, stamping fees, and overdraft charges associated with the issuance of commercial paper, banker's acceptances, hedge settlements, and prime loans. These co...
AI summary Account 083 covers short-term interest expenses from commercial paper, banker's acceptances, hedge settlements, and prime loans, which are expensed or amortized monthly. Interest income from short-term investments is netted against these expenses for presentation.
GENERAL - 02 An expenditure must create a benefit having a life of more than one year to be considered capital. Annual fees or maintenance costs do not create an asset; they simply maintain the existing asset base and should be expensed an...
AI summary The text outlines criteria for capitalizing expenditures, emphasizing long-term benefits, and discusses depreciation and amortization. It references guidance from the National Association of Regulatory Commissioners and FERC.
DEFINITION Cost is the amount of consideration (cash or other assets) given up to acquire, construct, develop, or better a capital asset and includes all costs directly attributable to the acquisition, construction, development or betterme...
AI summary The text defines 'cost' in the context of capital assets as the consideration given up to acquire, construct, or develop them, including all directly attributable expenses and installation costs necessary for their intended use.
PROCEDURES - The cost of a capital asset includes all expenditures necessary to place the asset in service. Therefore, cost not only includes the purchase price, but also other acquisition costs such as brokers' commissions, installation c...
AI summary The text outlines procedures for capitalizing the cost of capital assets, including acquisition expenses, construction-related costs, and carrying costs like AFUDC. It specifies that capitalization stops when assets are substantially complete and ready for use, with references to CICA guidelines.
Cost Elements Mounting Brackets
AI summary The document text briefly mentions 'Mounting Brackets' under the section 'Cost Elements', indicating that this is a specific cost item being considered in the regulatory proceeding.
Cost Components Chemical Testing Equipment Meter Testing Equipment Transformer Testing Equipment Electrical Testing Equipment Miscellaneous Equipment Cost Elements Controls Panels Meters Wiring Stores Equipment (074) Cost Components Counte...
AI summary The document outlines various cost components related to equipment, stores, purchase price differences, non-utility property, and the coal pier. It includes categories such as testing equipment, wiring, legal fees, and infrastructure elements like conveyors and hoppers.
Cost Elements Adapters Excavation Painting - First Time Backfill Filters Permits Bolts Foundations Piping Brackets Gravel Protective Equipment Cabinets Ground Rods Racks Clamps Inspections Signs Concrete Ladders Tanks Duct Systems Motors
AI summary The text lists various cost elements related to infrastructure and construction, including excavation, painting, permits, and other materials and services.
Cost Components All Terrain Vehicles Compressors Service Trucks Bombardiers and Tractors Digger Trucks Stake and Dump Trucks Bucket Trucks Helicopters Brush Chippers Forklifts Trailers Caterpillars Loaders and Backhoes Cost Elements Chassi...
AI summary The document outlines various cost components, including equipment, office furniture, shop tools, and leasehold improvements, categorizing them under different sections such as 'Office Equipment', 'Shop Equipment', and 'Leasehold Improvements'. The text provides a detailed breakdown of items and their associated costs, though it lacks context on how these costs are being analyzed or evaluated within a regulatory or financial framework.
APPLICATION OF ADMINISTRATIVE AND VEHICLE OVERHEAD (SELF - CONSTRUCTED ASSETS) - 6230
AI summary This document discusses the application of administrative and vehicle overhead for self-constructed assets, likely involving cost allocation and financial considerations for infrastructure projects in Nova Scotia.
08 Power Production Division Eligible Overhead Expenses for Power Production include all costs incurred by the Division's head office cost centres as well as the costs included in the administration cost centres for all operational generat...
AI summary Eligible Overhead Expenses for the Power Production Division include costs from head office and administrative cost centres, with a separate allocation for head office rent added to eligible expenses.
09 Shared Services Division Eligible Overhead Expenses and rates are calculated for each Shared Services Division, deemed to have capital related labour and expenses. These eligible expenses include, but are not limited to, office supplies...
AI summary The Shared Services Division's eligible overhead expenses, including office supplies, training, rent, and materials, are calculated with a separate allocation of head office rent added to the division's expenses.
IDENTIFICATION OF DIVISIONS 06 The first step in the application of overhead costs to capital projects is the disaggregation of NSPI's Annual Capital Expenditure Plan (ACE Plan) into several broad areas of responsibility with similar proje...
AI summary The document discusses the process of allocating overhead costs to capital projects by dividing NSPI's Annual Capital Expenditure Plan into three divisions: Customer Operations, Power Production, and Shared Services. It references past approvals by the Public Utilities Board and UARB for using direct labour costs as a basis for overhead allocation.
10 Shared Services Division Eligible Overhead Expenses and rates are calculated for each Shared Services Division deemed to have capital related labour and expenses. These eligible expenses include, but are not limited to, office supplies,...
AI summary The Shared Services Division calculates eligible overhead expenses, including office supplies, training, rent, and materials, for divisions with capital-related labour and expenses.
APPLICATION OF ADMINISTRATIVE OVERHEAD (CONTRACTED ASSETS) - 6235 12 The double application of the self-constructed overhead costs is avoided by applying the selfconstructed rate to the Eligible Overhead Expenses determined above and then...
AI summary The text discusses the method to avoid the double application of self-constructed overhead costs by applying the self-constructed rate to eligible overhead expenses and then reducing those expenses by the result.
CALCULATION OF OVERHEAD APPLICATION RATE 13 Once the Capital-related Overhead Expenses have been determined, the overhead application rate can be calculated. The application rate is simply the quotient, expressed as a percentage, of the Ca...
AI summary The overhead application rate is calculated by dividing Capital-related Overhead Expenses by total contract costs, expressed as a percentage. This rate is calculated separately for each division based on the provided example.
REVIEW OF OVERHEAD APPLICATION RATE 14 The overhead application rate will be reviewed on a periodic basis by Capital Accounting to assess its reasonableness. Deleted: Corporate Deleted: Services
AI summary The overhead application rate will be periodically reviewed by Capital Accounting to assess its reasonableness. The terms 'Corporate' and 'Services' have been deleted from the text.
07 Timing of Application AFUDC application begins in the month in which a work order receives charges and continues until the month the work order becomes operational plant. On most work orders, AFUDC is applied at the full rate to cumulat...
AI summary The timing of the AFUDC application is tied to the month a work order receives charges and continues until the work order becomes operational plant. For major capital work orders, the actual start and operational dates are considered when applying AFUDC.
09 Calculation of AFUDC Rate The rate used to capitalize AFUDC is the Company's weighted average cost of capital before tax . The rate is calculated annually, in advance, by dividing the forecasted annual interest expense, preferred divide...
AI summary The AFUDC rate is calculated using the Company's weighted average cost of capital before tax, determined annually by dividing forecasted interest expense, preferred dividends, and net earnings by the forecasted average debt and equity.
10 Allowance for Doubtful Accounts The allowance for doubtful accounts is calculated and adjusted monthly to reflect the Company's best estimate of uncollectible receivables. Large industrial and commercial accounts are assessed for collec...
AI summary The allowance for doubtful accounts is calculated monthly to estimate uncollectible receivables, with large accounts assessed individually and others based on aged listings. Factors include the age of outstanding amounts, write-offs, and recovery percentages. The account is recorded under general ledger 339.
GENERAL - 01 The Company accrues a liability for severance programs at the date management commits to a staff reduction plan and a reasonable estimate can be made of the amounts involved. - 02 Generally accepted accounting principles presc...
AI summary The Company accrues liabilities for severance programs when management commits to staff reduction plans. Costs are expensed in the year of commitment if they are below 0.25% of annual revenue requirement, otherwise they are deferred and amortized over three years to align with future cost savings from restructuring.
- 01 An overhead charge will apply to labour costs of NSPI employees outside of the corporate support groups relating to affiliate or non-regulated activities. This charge is designed to recover all administrative costs benefiting, but not...
AI summary An overhead charge is applied to NSPI employees' labour costs for activities outside corporate support groups to recover administrative costs. This is calculated using various OM&G expense accounts and should be reviewed annually by Corporate Accounting Services.
04 The overhead application rate would be calculated as follows: Description Amount OM&G Expenses (identified above) $50,000,000 Operating Labour 100,000,000 OM&G Expenses as a Percentage of Operating Labour 50% OTHER DEFERRED COSTS - 6950
AI summary The overhead application rate is calculated based on OM&G expenses and operating labour, with OM&G expenses comprising 50% of operating labour. Other deferred costs are also mentioned in the document.
PREFERRED DIVIDENDS - 7320
AI summary The document discusses preferred dividends under the matter number 7320, likely in the context of regulatory proceedings involving Nova Scotia Power Inc. and related financial considerations.
N-6Second Filing of Revisions - NSPI Accounting Policy and Procedures Manual 9/15/2010
20 passages
POLICIES - 04 Expenditures for amounts less than the stated capitalization limits should be charged to operations as they are incurred. - When additional costs associated with capitalizing immaterial amounts exceed the benefits of providin...
AI summary The text outlines accounting policies for capitalization limits and expensing expenditures. It specifies that amounts below capitalization thresholds should be expensed as incurred, and that if capitalizing immaterial amounts incurs excessive costs, all costs should be expensed.
COST ALLOCATION POLICY - 1570 e. On a monthly basis, allocate common corporate support services costs to affiliates. Allocation calculations will be updated monthly, quarterly and annually depending on the cost centre. The overhead load fa...
AI summary The policy outlines monthly allocation of common corporate support services costs to affiliates, with updates based on cost centre frequency. Overhead load factors are updated annually or more frequently as needed.
COMMON COST ALLOCATORS - Where services are provided to a number of affiliates and direct charging is not readily determinable or practical, one or more of the following methods or "costs drivers" are used for allocating costs. - 12 Time A...
AI summary The document outlines four common cost allocators for NSPI and its affiliates when direct charging is impractical: Time Analysis, Project Analysis, Enterprise Employees, and Total Capitalization. It emphasizes the UARB 2002 Rate Case Decision requiring senior management to maintain time-keeping records for accurate cost allocation.
RESPONSIBILITY - 24 Corporate Accounting Services will be responsible for: - a. identifying cost centres that provide services to both NSPI and its affiliates; - b. choosing allocation cost drivers in conjunction with the service providers...
AI summary Corporate Accounting Services and NSPI's Controller are tasked with identifying cost centers, selecting allocation drivers, calculating overhead factors, and managing the Cost Allocation Policy to ensure fair distribution of corporate support costs among NSPI and its affiliates.
COST ALLOCATION POLICY – 1570 demonstrable benefit to NSPI customers, when compared with all other available options. 27 SECTION 6.11 - The costs of corporate support services will be fairly allocated between NSPI and its affiliates. The a...
AI summary The Cost Allocation Policy outlines how corporate support service costs between NSPI and its affiliates must be fairly allocated based on service nature. Definitions include Affiliate (as per Nova Scotia Companies Act), Corporate Support Service, Cost Allocation, Cost Driver, Common Costs, and Direct Costs. The policy emphasizes demonstrable customer benefits from affiliate transactions.
COST ALLOCATION POLICY – 1570 - 35 Regulated refers to services or products that are subject to price regulation by regulatory authorities. - Non-Regulated refers to services or products that are not subject to price regulation by regulato...
AI summary The document defines 'Regulated' and 'Non-Regulated' services, outlines components of 'Total Capitalization,' and references a deleted provision regarding affiliate capital factors like foreign exchange adjustments and goodwill. It focuses on cost allocation principles under regulatory oversight.
04 Fuel Consumption Fuel costs are charged to expense as follows: - a. Fuels are recorded as inventory when received. - b. As fuel is consumed, its cost is relieved from inventory using the weighted average cost method and is charged to fu...
AI summary The text outlines the accounting treatment of fuel costs, detailing that fuels are recorded as inventory upon receipt and expensed using the weighted average cost method as they are consumed, with consumption reports from generating plants serving as the basis for these entries.
PROCEDURES - Every expenditure must be classified as either capital or operating, and should be budgeted and accounted for accordingly. Operating costs are expensed in the year incurred, against the revenue earned in that period. The deter...
AI summary The document outlines procedures for classifying expenditures as capital or operating, emphasizing materiality considerations and adherence to the Annual Capital Expenditure Plan (ACE Plan). Capital expenditures require work order approval, while operating costs are expensed immediately. NSPI's materiality guidelines in its accounting manual dictate capitalization thresholds.
ASSETS CAPITALIZATION OF COST - 6000 The following decision tree will assist in determining whether an expenditure is capital or operating: Deleted: 2 Deleted: 3
AI summary The document introduces a decision tree to classify expenditures as capital or operating, aiding in asset capitalization under US GAAP, with involvement from NSPI and UARB. It's part of regulatory proceedings related to cost considerations.
DEFINITION O1 Cost is the amount of consideration (cash or other assets) given up to acquire, construct, develop, or better a capital asset and includes all costs directly attributable to the acquisition, construction, development or bette...
AI summary The text defines 'Cost' as the total consideration (cash or assets) exchanged to acquire, construct, or improve a capital asset, including all directly attributable expenses necessary for its installation and readiness for intended use.
PROCEDURES - The cost of a capital asset includes all expenditures necessary to place the asset in service. Therefore, cost not only includes the purchase price, but also other acquisition costs such as brokers' commissions, installation c...
AI summary The text defines capital asset costs as including all expenditures to place an asset in service, such as purchase price, installation, legal fees, and carrying costs like AFUDC. It specifies that capitalization of carrying costs stops when an asset is substantially complete and ready for use, referencing NSPI's accounting policies for guidance.
COST COMPONENTS AND ELEMENTS - 6140 Labour and expenses incurred by Company staff Net proceeds from the sale of timber, etc. Net proceeds from the sale of buildings Environmental Assessment
AI summary The document outlines cost components including labour expenses, proceeds from timber and building sales, and environmental assessments. These elements are part of a broader financial and operational analysis within the regulatory proceeding.
Ash Handling Equipment (021) Cost Components Ash Hopper Clinker Grinder Fans Ponds Conveyor System Pumps Cost Elements Belts Foundations Chutes Hoppers Controls Lining Excavation Motors Fencing Mounting Devices Electrical Control Equipment...
AI summary The document outlines detailed cost components for ash handling systems, electrical control equipment, and power infrastructure, including specific elements like conveyors, pumps, transformers, and grounding systems. It provides a structured breakdown of equipment and associated costs.
Cost Components Wind Turbine Wind Turbine Aux. Piping PROPERTY, PLANT AND EQUIPMENT
AI summary The document section titled 'Cost Components' includes technical terms such as 'Wind Turbine,' 'Piping,' and 'PROPERTY, PLANT AND EQUIPMENT,' suggesting a focus on infrastructure and asset categorization within a regulatory context. An image reference is included, though no detailed discussion or analysis is provided.
Purchase Price Difference (080) Cost Components Pur. Diff – Kentville Pur. Diff – LM6000
AI summary The document discusses the purchase price difference for the Kentville and LM6000 projects, focusing on cost components within a regulatory proceeding context.
GENERAL - The Company has an obligation to provide electric service to the consuming public in the most cost effective manner. This obligation is discharged when a customer group receiving special services pays for the cost of those servic...
AI summary The Company must provide electric service in a cost-effective manner, ensuring no customer group subsidizes another. Policies in the Rate and Regulations Manual dictate service extension distances, and any service beyond these must be funded by the customer. Factors such as location, future development, public safety, and return on investment are considered when determining customer capital contributions.
POLICY - O4 Allowance for funds used during construction should be capitalized at the effective cost-of-capital rate, compounded semi-annually, except in the following circumstances: - a. Projects that will be under construction for less t...
AI summary The policy outlines the conditions under which the Allowance for Funds Used During Construction (AFUDC) should be capitalized at the effective cost-of-capital rate, with exceptions for short-duration projects, those delayed by extraordinary circumstances, and projects where capitalization would exceed economic value or future benefits.
06 Basis for Application The application base for AFUDC includes the cumulative total of all direct and indirect charges to work orders, but excludes all AFUDC related to spending subsequent to January 1 or July 1, whichever is the latest....
AI summary The application base for AFUDC includes cumulative direct and indirect charges to work orders, excluding AFUDC related to spending after January 1 or July 1, whichever is later. This exclusion leads to semi-annual compounding of AFUDC.
08 Calculation of AFUDC Rate The rate used to capitalize AFUDC is the Company's weighted average cost of capital before tax . The rate is calculated annually, in advance, by dividing the forecasted annual interest expense, preferred divide...
AI summary The AFUDC rate is calculated using the Company's weighted average cost of capital before tax, determined annually by dividing forecasted interest expense, preferred dividends, and net earnings by forecasted average debt and equity. The annual rate is then divided by twelve to obtain the monthly rate.
OVERHEAD APPLICATION RATE - 6940A 04 The overhead application rate is calculated based on total OM&G expenses identified above divided by total operating labour. Deleted: would be Formatted: Justified Deleted: as follows:¶ ¶ ¶ Description...
AI summary The overhead application rate is calculated by dividing total OM&G expenses by total operating labour. The text discusses the methodology used for this calculation, though specific details are partially deleted or formatted in a way that obscures full clarity.
N-7Third Filing of Revisions - NSPI Accounting Policy and Procedures Manual 9/24/2010
12 passages
08 Short-term Interest Short-term interest includes all interest, commissions, stamping fees, overdraft charges associated with the issuance of commercial paper, banker's acceptances, hedge settlements, and prime loans These costs are expe...
AI summary Short-term interest encompasses various financial costs such as interest, commissions, and fees related to commercial paper and other short-term financing instruments. These costs are expensed or amortized monthly based on the number of days of associated debt.
09 Other Financing Charges The Company expenses related banking costs in the month in which they occur. Stand by fees and letters of credit fees are expensed monthly. Credit facility fees are expensed over the period to which they relate.
AI summary The Company expenses banking costs, including standby fees, letters of credit fees, and credit facility fees, in the month they occur or over the relevant period.
10 Foreign Exchange Expense It is the Company's intent to assign foreign exchange costs directly to the end-use accounts based on an estimate of the foreign exchange rate set for the month. However, due to fluctuations in exchange rates th...
AI summary The company intends to assign foreign exchange costs directly to end-use accounts using estimated monthly exchange rates. However, fluctuations and timing differences cause over or under applied costs, which are not reallocated. Month-end balances are translated and adjustments are made to the foreign exchange account.
DETERMINATION OF ELIGIBLE OVERHEAD EXPENSES The next step is the identification of operating expenses that will benefit construction or development activities. A separate determination is made for each division. The process relies on budge...
AI summary The document outlines the process for identifying eligible overhead expenses that benefit construction or development activities, emphasizing the use of budgeted expense figures to determine overhead application rates before the fiscal year begins.
08 Power Production Division Eligible Overhead Expenses for Power Production include all costs incurred by the Division's head office cost centres as well as the costs included in the administration cost centres for all operational generat...
AI summary Eligible overhead expenses for the Power Production Division include costs from head office and administrative centres for operational generating stations, with a separate allocation of head office expenses added to eligible expenses. Rent was deleted from this section.
09 Shared Services Division Eligible Overhead Expenses and rates are calculated for each Shared Services Division, deemed to have capital related labour and expenses. These eligible expenses include, but are not limited to, office supplies...
AI summary The Shared Services Division's eligible overhead expenses, including office supplies, training, rent, and materials, are calculated and allocated to each division. A separate allocation of head office expenses is also added to these eligible expenses.
10 HEAD OFFICE RENT Head Office expenses are allocated to the three operating divisions based on the square footage occupied by each division. Deleted: October 13 Deleted: August 10 Deleted: . 2006 1 For a detailed discussion of the genera...
AI summary Head Office expenses are allocated to three operating divisions based on square footage occupied. A reference is made to NSPI's Accounting Policy and Procedures Manual Section 3100 for a detailed discussion of the general ledger account structure.
APPLICATION OF ADMINISTRATIVE AND VEHICLE OVERHEAD (SELF - CONSTRUCTED ASSETS) - 6230
AI summary The document discusses the application of administrative and vehicle overhead for self-constructed assets, specifically referencing Nova Scotia Power Inc. (NSPI) and the Nova Scotia Utility and Review Board (UARB). It includes references to accounting standards and regulatory processes.
CALCULATION OF OVERHEAD APPLICATION RATE Once the Capital-related Overhead Expenses have been determined, the overhead application rate can be calculated. The application rate is simply the quotient, expressed as a percentage, of the Capit...
AI summary The overhead application rate is calculated by dividing capital-related overhead expenses by capital labour costs, expressed as a percentage. This calculation is performed separately for each division after determining the capital-related overhead expenses.
DETERMINATION OF ELIGIBLE OVERHEAD EXPENSES O7 The next step is the identification of operating expenses that will benefit construction or development activities. A separate determination is made for each division. The process relies on bu...
AI summary The document discusses the determination of eligible overhead expenses, focusing on the allocation of operating expenses to construction or development activities. It references past approvals by the Public Utilities Board and the UARB for using direct labour costs to allocate overhead expenses to capital projects.
APPLICATION OF ADMINISTRATIVE OVERHEAD (CONTRACTED ASSETS) - 6235 expense figures since the overhead application rate for a particular fiscal year must be determined before the year commences.
AI summary The document discusses the application of administrative overhead for contracted assets, emphasizing the need to determine the overhead application rate for a fiscal year before the year begins to ensure accurate expense figures.
10 Shared Services Division Eligible Overhead Expenses and rates are calculated for each Shared Services Division deemed to have capital related labour and expenses. These eligible expenses include, but are not limited to, office supplies,...
AI summary The Shared Services Division calculates eligible overhead expenses and rates for divisions with capital-related labour and expenses, including office supplies, training, rent, and materials.
06394Board Order 2/16/2011
34 passages
GENERAL - 01 Nova Scotia Power Inc. ("NSPI") is the primary operating subsidiary of Emera Inc, a diversified energy company based in Halifax, Nova Scotia - 02 For financial reporting purposes, NSPI is organized into cost centers and has sp...
AI summary Nova Scotia Power Inc. (NSPI) is a subsidiary of Emera Inc. and operates under a Cost Allocation Policy that ensures fair distribution of corporate support services and general expenses between NSPI and its affiliates, aligning with accounting principles.
SELECTION AND APPLICATION OF ALLOCATION METHODOLOGY - 06 The procedures followed by Corporate Accounting to allocate the corporate support services Operating, Maintenance and General ("OM&G") to affiliates are: - a. Identify cost centres t...
AI summary The document outlines the procedures used by Corporate Accounting to allocate corporate support services Operating, Maintenance and General (OM&G) costs to affiliates of Nova Scotia Power Inc. (NSPI), including identifying cost centres, determining direct and shared costs, selecting an allocation methodology, and calculating charges.
COST ALLOCATION POLICY -1570 e. On a monthly basis, allocate common corporate support services costs to affiliates. Allocation calculations will be updated monthly, quarterly and annually depending on the cost centre. The overhead load fac...
AI summary The document outlines a policy for the monthly allocation of common corporate support services costs to affiliates, with updates occurring monthly, quarterly, and annually depending on the cost centre, and the overhead load factor being updated annually or more frequently if needed.
DIRECT EXPENSE ALLOCATION 10 Corporate support services costs that can be directly attributed to a specific entity are directly charged to that entity.
AI summary The document states that corporate support services costs directly attributable to a specific entity are charged to that entity.
COMMON COST ALLOCATORS - 11 Where services are provided to a number of affiliates and direct charging is not readily determinable or practical, one or more of the following methods or lIcosts drivers" are used for allocating costs. - 12 Ti...
AI summary The document outlines common cost allocators used for allocating costs among affiliates when direct charging is impractical. Methods include Time Analysis, Project Analysis, Enterprise Employees, and Total Capitalization, each based on different metrics such as time spent, employee numbers, and capital structure.
COST ALLOCATION POLICY - 1570 - 16 Number of Invoices Number of invoices uses the relative proportion of invoices processed for each affiliate. - 17 Number of Journal Lines Number of journal entry lines uses the relative proportion of acco...
AI summary The document outlines a cost allocation policy that uses various metrics such as the number of invoices, journal lines, vehicles, asset value, and total revenue to allocate costs proportionally among affiliates based on their relative contributions.
RESPONSIBILITY - 24 Corporate Accounting Services will be responsible for: - a. identifying cost centres that provide services to both NSPI and its affiliates; - b. choosing allocation cost drivers in conjunction with the service providers...
AI summary The document outlines the responsibilities of Corporate Accounting Services and the Controller of NSPI regarding the allocation of common corporate support services costs to NSPI's affiliates, including identifying cost centres, selecting cost drivers, calculating overhead allocation factors, and reviewing these elements on a quarterly and annual basis.
DEFINITIONS - 28 For the purpose of the Cost Allocation Policy and interpretation of this Policy, the following definitions will apply. - 29 Affiliate The Nova Scotia Companies Act defines an Affiliate as: - (1) A company shall be deemed t...
AI summary This section defines key terms related to cost allocation and corporate structure under the Cost Allocation Policy. It outlines definitions such as 'Affiliate,' 'Corporate Support Service,' 'Cost Allocation,' 'Cost Driver,' 'Common Costs,' and 'Direct Costs' to ensure clarity in interpreting and applying the policy.
EMPLOYEE FUTURE BENEFITS - 2400 - 11 Actuarial valuations are performed annually for all plans. - 12 Pension expense, as determined in the annual actuarial valuation, is charged to both operating departments and corporate adjustments. - 13...
AI summary The document outlines the management and administration of employee future benefits, specifically pension plans, including actuarial valuations, funding, investment, and expense allocation. NSPI plays a central role in managing these plans, with contributions and administrative expenses handled through trustee and fund managers.
04 Fuel Consumption Fuel costs are charged to expense as follows: - a. Fuels are recorded as inventory when received. - b. As fuel is consumed, its cost is relieved from inventory using the weighted average cost method and is charged to fu...
AI summary The document outlines how fuel costs are accounted for, specifying that fuels are recorded as inventory upon receipt and charged to expense using the weighted average cost method as they are consumed. Consumption reports from generating plants are used to support these entries, and derivative transaction settlements are also included in fuel expense.
08 Short-term Interest Short-term interest includes all interest, commissions, stamping fees, overdraft charges associated with the issuance of commercial paper, banker's acceptances, hedge settlements, and prime loans These costs are expe...
AI summary Short-term interest encompasses various financial costs related to debt instruments such as commercial paper and banker's acceptances, which are expensed or amortized monthly based on the number of days of the associated debt.
09 Other Financing Charges The Company expenses related banking costs in the month in which they occur. Stand by fees and letters of credit fees are expensed monthly. Credit facility fees are expensed over the period to which they relate.
AI summary The Company expenses banking costs, including standby fees, letters of credit fees, and credit facility fees, in the month they occur or over the relevant period.
10 Foreign Exchange Expense It is the Company's intent to assign foreign exchange costs directly to the end-use accounts based on an estimate of the foreign exchange rate set for the month. However, due to fluctuations in exchange rates th...
AI summary The company assigns foreign exchange costs to end-use accounts based on monthly exchange rate estimates, but fluctuations and timing differences cause over or under applied costs that are not reallocated. The U.S. funds bank account balance is translated at month-end, affecting the foreign exchange account.
COST COMPONENTS AND ELEMENTS - 6140
AI summary The document provides an overview of cost components and elements related to utility operations, including accounting standards, capital expenditures, and regulatory considerations. It outlines various financial and operational aspects that are relevant to regulatory proceedings.
Cost Elements for both (001) and (002) Appraisal costs prior to closing title Arbitrator, in the case of expropriation Bulkheads - buried and not requiring maintenance/replacement Clearing land for lines Condemnation proceedings including...
AI summary The text outlines various cost elements associated with acquisition and expropriation processes, including appraisal costs, legal fees, condemnation proceedings, and initial acquisition costs. These are relevant to both (001) and (002) in the regulatory proceeding.
COST COMPONENTS AND ELEMENTS - 6140
AI summary The document discusses the cost components and elements related to the regulatory proceeding, focusing on various financial and operational aspects of utility services in Nova Scotia.
CAPITAL CONTRIBUTIONS IN AID OF CONSTRUCTION - 6220
AI summary The document discusses capital contributions in aid of construction, focusing on financial and regulatory considerations related to infrastructure projects in Nova Scotia. Key themes include accounting standards, capital expenditures, and regulatory oversight.
APPLICATION OF ADMINISTRATIVE AND VEHICLE OVERHEAD (SELF - CONSTRUCTEp ASSETS) - 6230 expense figures since the overhead application rate for a particular fiscal year must be determined before the year commences.
AI summary The document discusses the determination of overhead application rates for administrative and vehicle expenses in fiscal years, emphasizing that these rates must be established before the year begins to ensure accurate expense figures.
08 Power Production Division Eligible Overhead Expenses for Power Production include all costs incurred by the Division's head office cost centres as well as the costs included in the administration cost centres for all operational generat...
AI summary Eligible overhead expenses for the Power Production Division include costs from head office and administrative cost centres for operational generating stations, with a separate allocation of head office expenses added to the Division's eligible expenses.
09 Shared Services Division Eligible Overhead Expenses and rates are calculated for each Shared Services Division, deemed to have capital related labour and expenses. These eligible expenses include, but are not limited to, office supplies...
AI summary Eligible overhead expenses for the Shared Services Division include office supplies, training, rent, and materials, with a separate allocation of head office expenses added to these eligible expenses.
APPLICATION OF ADMINISTRATIVE AND VEHICLE OVERHEAD (SELF - CONSTRUCTED ASSETS) - 6230 - overhead expenses determined above based on capital labour to total labour for both administrative and vehicle overheads. - 12 Some capital-related exp...
AI summary The document discusses the allocation of overhead expenses, particularly administrative and vehicle overheads, based on capital labour to total labour. It emphasizes that capital-related expenses should be included in overhead expenses charged to capital projects and allocated based on capital labour costs.
CALCULATION OF OVERHEAD APPLICATION RATE 13 Once the Capital-related Overhead Expenses have been determined, the overhead application rate can be calculated. The application rate is simply the quotient, expressed as a percentage, of the Ca...
AI summary The overhead application rate is calculated by dividing capital-related overhead expenses by capital labour costs, expressed as a percentage. This calculation is performed separately for each division after determining the capital-related overhead expenses.
APPLICATION OF ADMINISTRATIVE OVERHEAD (CONTRACTED ASSETS) - 6235
AI summary The document discusses the application of administrative overhead for contracted assets, focusing on accounting and financial considerations related to Nova Scotia Power Inc. and other relevant entities. It includes references to accounting standards and financial mechanisms.
GENERAL - 01 Overhead expenses are integral costs associated with the construction of capital assets. As per NSPl's Accounting Policy & Procedures Manual Section 6100 - Cost, the cost of a capital asset not only includes direct constructio...
AI summary Overhead expenses are considered integral to the construction of capital assets and must be allocated to capital projects. NSPl's accounting policy outlines that overhead costs are based on labour costs for internally managed projects and contracted costs for externally managed projects, as per the Public Utilities Board's ruling.
09 Shared Services Division Eligible Overhead Expenses and rates are calculated for each Shared Services Division deemed to have capital related labour and expenses. These eligible expenses include, but are not limited to, office supplies,...
AI summary The Shared Services Division calculates eligible overhead expenses and rates for divisions with capital-related labour and expenses, including office supplies, training, rent, and materials.
CALCULATION OF OVERHEAD APPLICATION RATE 12 Once the Capital-related Overhead Expenses have been determined, the overhead application rate can be calculated. The application rate is simply the quotient, expressed as a percentage, of the Ca...
AI summary The overhead application rate is calculated as the percentage of Capital-related Overhead Expenses divided by contract costs. A reference is made to NSPI's Accounting Policy and Procedures Manual for further details on the general ledger account structure.
ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION .. 6240
AI summary The document discusses the Allowance for Funds Used During Construction (AFUDC), which is a financial accounting method used to calculate the cost of capital during the construction of power plants and other capital projects. It involves considerations such as Return on Equity (ROE), Weighted Average Cost of Capital (WACC), and regulatory oversight by the Nova Scotia Utility and Review Board (UARB).
07 Timing of Application AFUDC application begins in the month in which a work order receives charges and continues until the month the work order becomes operational plant. On most work orders, AFUDC is applied at the full rate to cumulat...
AI summary The AFUDC application period starts when a work order receives charges and ends when the work order becomes operational. For most work orders, AFUDC is applied at the full rate monthly, while major capital work orders consider the actual start and operational dates.
01 Cost Cost is the main component of most retirement work orders. Refer to NSPl's Accounting Policy & Procedures Manual 61 00 for a more detailed description of the items included in cost. The amounts that must be removed to record the de...
AI summary The document outlines the components of cost in retirement work orders, including removal costs, salvage value, and net salvage value. It explains how asset retirement obligations (AROs) are defined and the processes for recording retirement costs and salvage values in work orders.
Materials - 04 Materials are accounted for using a computerized perpetual inventory system. Purchases are recorded at cost and issues are charged to capital or operating accounts at average cost. - 05 Physical counts are performed on a rot...
AI summary The document outlines the accounting practices for materials, including the use of a perpetual inventory system, cost-based recording of purchases, average cost allocation for issues, periodic physical counts, and monthly interest charges on inventory to cover carrying costs.
Fuel - 07 Fuel inventories, consisting of oil, coal and fuel additives, are accounted for using the weighted average cost method. This method assigns costs between fuel inventory on hand and fuel consumed on the assumption that fuel is con...
AI summary Fuel inventories are accounted for using the weighted average cost method, with monthly reports tracking fuel purchases, consumption, and inventory balances. Fuel purchases received but not yet invoiced are accrued and recorded as liabilities.
POLICIES - 03 All start-up costs associated with the development of new business should be expensed. - 04 All NSPI employees who perform work on non-regulated activities should charge an overhead application rate as per NSPI's Accounting P...
AI summary The policies outlined include expensing all start-up costs for new business development and requiring NSPI employees working on non-regulated activities to apply an overhead rate as specified in the Accounting Policy and Procedures Manual.
ACCRUED INTEREST ON LONG-TERM DEBT - 8120
AI summary The document heading indicates a focus on accrued interest on long-term debt, likely related to financial accounting and regulatory considerations for Nova Scotia Power Inc. and its subsidiaries.
POLICY 01 Interest on long-term debt should be accrued on a 30-day month basis using the principal outstanding and prevailing rate for each debt instrument.
AI summary The text discusses the accrual of interest on long-term debt, specifying that it should be calculated on a 30-day month basis using the principal outstanding and prevailing rate for each debt instrument.
05338Letter request Board review Batch 3 revisions. 9/24/2010
19 passages
08 Short-term Interest Short-term interest includes all interest, commissions, stamping fees, overdraft charges associated with the issuance of commercial paper, banker's acceptances, hedge settlements, and prime loans These costs are expe...
AI summary Short-term interest encompasses various financial costs related to debt instruments such as commercial paper and banker's acceptances. These costs are expensed or amortized monthly based on the number of days associated with the debt.
09 Other Financing Charges The Company expenses related banking costs in the month in which they occur. Stand by fees and letters of credit fees are expensed monthly. Credit facility fees are expensed over the period to which they relate.
AI summary The Company expenses banking costs, including stand by fees, letters of credit fees, and credit facility fees, in the month they occur or over the relevant period.
COST OF OPERATIONS INCOME TAXES - 5900
AI summary The document discusses the cost of operations and income taxes, focusing on financial reporting and accounting principles. It includes references to income tax expenses and related accounting standards.
GENERAL - Overhead expenses are integral costs associated with the construction of capital assets. As per NSPI's Accounting Policy & Procedure Manual Section 6100 Cost, the cost of a capital asset not only includes direct construction or d...
AI summary Overhead expenses are considered integral to the construction of capital assets, and their allocation to specific projects is necessary despite their inability to be directly tied to individual expenditures. The Nova Scotia Utility and Review Board has historically approved the allocation of overhead costs based on direct labour costs, as established in a 1982 ruling by the Public Utilities Board.
APPLICATION OF ADMINISTRATIVE AND VEHICLE OVERHEAD (SELF - CONSTRUCTED ASSETS) - 6230
AI summary The document discusses the application of administrative and vehicle overhead for self-constructed assets, likely involving cost allocation and accounting practices. It includes references to Nova Scotia Power Inc. and the Nova Scotia Utility and Review Board.
DETERMINATION OF ELIGIBLE OVERHEAD EXPENSES The next step is the identification of operating expenses that will benefit construction or development activities. A separate determination is made for each division. The process relies on budge...
AI summary The document outlines the process for identifying eligible overhead expenses that benefit construction or development activities, with a focus on using budgeted expense figures to determine overhead application rates before the fiscal year begins.
08 Power Production Division Eligible Overhead Expenses for Power Production include all costs incurred by the Division's head office cost centres as well as the costs included in the administration cost centres for all operational generat...
AI summary Eligible overhead expenses for the Power Production Division include costs from head office and administrative centres for generating stations. A separate allocation of head office expenses is added to the Division's eligible expenses.
09 Shared Services Division Eligible Overhead Expenses and rates are calculated for each Shared Services Division, deemed to have capital related labour and expenses. These eligible expenses include, but are not limited to, office supplies...
AI summary The Shared Services Division's eligible overhead expenses, including office supplies, training, rent, and materials, are calculated and allocated to the division. A separate allocation of head office expenses is also added to the division's eligible expenses.
10 HEAD OFFICE RENT Head Office expenses are allocated to the three operating divisions based on the square footage occupied by each division. Deleted: October 13 Deleted: August 10 Deleted: . 2006 1 For a detailed discussion of the genera...
AI summary Head Office expenses are allocated to three operating divisions based on square footage occupied. The document references NSPI's Accounting Policy and Procedures Manual Section 3100 for more details on the general ledger account structure.
APPLICATION OF ADMINISTRATIVE AND VEHICLE OVERHEAD (SELF - CONSTRUCTED ASSETS) - 6230
AI summary The document discusses the application of administrative and vehicle overhead related to self-constructed assets, with a focus on accounting principles and regulatory considerations.
DETERMINATION OF CAPITAL-RELATED OVERHEAD EXPENSES - Once the Eligible Overhead Expenses have been determined, the overhead expenses related to the Company's capital activities must be calculated. This calculation involves prorating the el...
AI summary The document outlines the process for determining capital-related overhead expenses, emphasizing the proration of eligible overhead expenses based on capital labour to total labour for administrative and vehicle overheads, and the inclusion of certain expenses in the divisions' overhead based on capital labour costs.
CALCULATION OF OVERHEAD APPLICATION RATE Once the Capital-related Overhead Expenses have been determined, the overhead application rate can be calculated. The application rate is simply the quotient, expressed as a percentage, of the Capit...
AI summary The overhead application rate is calculated by dividing Capital-related Overhead Expenses by capital labour costs, expressed as a percentage. This calculation is performed separately for each division after determining the Capital-related Overhead Expenses.
GENERAL - Overhead expenses are integral costs associated with the construction of capital assets. As per NSPI's Accounting Policy & Procedure Manual Section 6100 Cost, the cost of a capital asset not only includes direct construction or d...
AI summary The text discusses the inclusion of overhead expenses in the cost of capital assets, explaining that these costs are real and substantial but not directly tied to specific projects. Overhead costs are allocated to capital projects, and the method used aligns with the Public Utilities Board's ruling as outlined in NSPI's Accounting Policy and Procedures Manual.
DETERMINATION OF ELIGIBLE OVERHEAD EXPENSES O7 The next step is the identification of operating expenses that will benefit construction or development activities. A separate determination is made for each division. The process relies on bu...
AI summary The document discusses the determination of eligible overhead expenses, focusing on the allocation of operating expenses benefiting construction or development activities. It references past approvals by the Public Utilities Board and UARB for using direct labour costs to allocate overhead expenses to capital projects.
APPLICATION OF ADMINISTRATIVE OVERHEAD (CONTRACTED ASSETS) - 6235 expense figures since the overhead application rate for a particular fiscal year must be determined before the year commences.
AI summary The document discusses the application of administrative overhead to contracted assets, emphasizing that overhead application rates must be determined before the fiscal year begins to ensure accurate expense figures.
09 Power Production Division Eligible Overhead Expenses for Power Production include all costs incurred by the Division's head office cost centres as well as the costs included in the administration cost centres for all operational generat...
AI summary The Power Production Division's eligible overhead expenses include costs from head office cost centres and administration cost centres for all operational generating stations.
10 Shared Services Division Eligible Overhead Expenses and rates are calculated for each Shared Services Division deemed to have capital related labour and expenses. These eligible expenses include, but are not limited to, office supplies,...
AI summary The Shared Services Division calculates eligible overhead expenses and rates for divisions with capital-related labour and expenses, including office supplies, training, rent, and membership dues.
CALCULATION OF OVERHEAD APPLICATION RATE Once the Capital-related Overhead Expenses have been determined, the overhead application rate can be calculated. The application rate is simply the quotient, expressed as a percentage, of the Capit...
AI summary The overhead application rate is calculated by dividing Capital-related Overhead Expenses by contract costs, expressed as a percentage. This calculation is essential for determining how overhead costs are applied to specific projects or contracts.
APPLICATION OF OVERHEAD The overhead charged to a particular project is determined by multiplying the contract costs charged to the project by the appropriate overhead application rate. The charge is debited to a Capital Work Order while t...
AI summary The overhead charged to a project is determined by multiplying the contract costs by the appropriate overhead application rate. The overhead is debited to a Capital Work Order and credited to Operating, Maintenance and General Expenses. Specific examples and calculations are deleted from the text.
06100Compliance Filing - Accounting Policy and Procedures Manual 1/11/2011
27 passages
GENERAL - 01 Nova Scotia Power Inc. ("NSPI") is the primary operating subsidiary of Emera Inc, a diversified energy company based in Halifax, Nova Scotia - 02 For financial reporting purposes, NSPI is organized into cost centers and has sp...
AI summary Nova Scotia Power Inc. (NSPI) is a subsidiary of Emera Inc. and operates under a Cost Allocation Policy that ensures corporate support services and general expenses are fairly allocated between NSPI and its affiliates, in line with accounting standards.
SELECTION AND APPLICATION OF ALLOCATION METHODOLOGY - 06 The procedures followed by Corporate Accounting to allocate the corporate support services Operating, Maintenance and General ("OM&G") to affiliates are: - a. Identify cost centres t...
AI summary The document outlines the procedures used by Corporate Accounting to allocate corporate support services (OM&G) to affiliates of NSPI, including identifying cost centres, determining direct and common costs, selecting an allocation methodology, and updating allocations on a monthly, quarterly, and annual basis.
COSTS INCLUDED IN THE ALLOCATION PROCESS - 07 NSPI's corporate support services costs include all expenses, both direct and common, required to provide support services to NSPI and its affiliates. - 08 An overhead load will be charged to N...
AI summary NSPI's corporate support services costs include both direct and common expenses for supporting NSPI and its affiliates. An overhead load is applied to affiliates to cover indirect support costs not captured in corporate support group cost centres.
DIRECT EXPENSE ALLOCATION 10 Corporate support services costs that can be directly attributed to a specific entity are directly charged to that entity.
AI summary The document states that corporate support services costs directly attributable to a specific entity are charged to that entity.
COMMON COST ALLOCATORS - 11 Where services are provided to a number of affiliates and direct charging is not readily determinable or practical, one or more of the following methods or "costs drivers" are used for allocating costs. - 12 Tim...
AI summary The document outlines various methods for allocating common costs among affiliates of Nova Scotia Power Inc. (NSPI), including time analysis, project analysis, enterprise employees, total capitalization, and others based on factors like number of invoices, journal lines, and asset value.
RESPONSIBILITY - 24 Corporate Accounting Services will be responsible for: - a. identifying cost centres that provide services to both NSPI and its affiliates; - b. choosing allocation cost drivers in conjunction with the service providers...
AI summary Corporate Accounting Services is responsible for identifying cost centres, selecting allocation cost drivers, and calculating overhead allocation factors for NSPI's affiliates. The Controller of NSPI oversees the management of the Cost Allocation Policy.
CODE OF CONDUCT 26 SECTION 1.1 – The primary purpose of this Code of Conduct is to ensure that all transactions NSPI enters into with affiliates are designed and carried out in a manner reasonably expected to produce demonstrable benefit t...
AI summary This section of the Code of Conduct outlines the requirement for NSPI to ensure that transactions with affiliates provide demonstrable benefits to customers and that corporate support service costs are fairly allocated between NSPI and its affiliates.
DEFINITIONS - 28 For the purpose of the Cost Allocation Policy and interpretation of this Policy, the following definitions will apply. - 29 Affiliate The Nova Scotia Companies Act defines an Affiliate as: - (1) A company shall be deemed t...
AI summary This section defines key terms related to cost allocation and corporate structure under the Cost Allocation Policy. It outlines definitions for affiliate, corporate support services, cost allocation, cost drivers, common costs, and direct costs, with a focus on regulatory and accounting clarity.
08 Cost Centre Segment The fourth segment indicates the Cost Centre . . A complete list of all cost centres is provided in the Chart of Accounts.
AI summary The fourth segment in the Chart of Accounts indicates the Cost Centre, with a complete list of all cost centres provided in the same document.
04 Fuel Consumption Fuel costs are charged to expense as follows: - a. Fuels are recorded as inventory when received. - b. As fuel is consumed, its cost is relieved from inventory using the weighted average cost method and is charged to fu...
AI summary Fuel costs are recorded as inventory upon receipt and charged to expense as they are consumed using the weighted average cost method. Consumption reports from generating plants are used to make these entries, and derivative transaction settlements are also included in fuel expense.
08 Short-term Interest Short-term interest includes all interest, commissions, stamping fees, overdraft charges associated with the issuance of commercial paper, banker's acceptances, hedge settlements, and prime loans These costs are expe...
AI summary Short-term interest refers to interest and related costs incurred from financing activities such as commercial paper, banker's acceptances, and prime loans. These costs are expensed or amortized monthly based on the number of days of the associated debt.
09 Other Financing Charges The Company expenses related banking costs in the month in which they occur. Stand by fees and letters of credit fees are expensed monthly. Credit facility fees are expensed over the period to which they relate.
AI summary The Company expenses banking costs, including standby fees, letters of credit fees, and credit facility fees, in the month they occur or over the relevant period. This approach aligns with standard accounting practices for such expenses.
GENERAL - 02 An expenditure must create a benefit having a life of more than one year to be considered capital. Annual fees or maintenance costs do not create an asset; they simply maintain the existing asset base and should be expensed an...
AI summary The text defines capital expenditures as those that create long-term benefits and are not expensed immediately but capitalized as assets. It outlines criteria for capitalizing expenditures, such as extending asset life, increasing capacity, or reducing operating costs. Capital expenditures are accounted for through depreciation and amortization over their useful life.
COST COMPONENTS AND ELEMENTS - 6140 Luminaire Relays Transformer Meters (051) Cost Components Instrument Transformers Meters - Energy Meters - Demand Cost Elements Current Transformers Metering Tanks Fittings Protective Devices Potential T...
AI summary The text outlines various cost components and elements related to infrastructure and services, including meters, transformers, service lines, and mobile radio systems. It categorizes items into cost components and cost elements under different sections such as Meters, Services, and Subscriber Mobile Radio.
DETERMINATION OF ELIGIBLE OVERHEAD EXPENSES 06 The next step is the identification of operating expenses that will benefit construction or development activities. A separate determination is made for each division. The process relies on bu...
AI summary The document outlines the process for identifying operating expenses that benefit construction or development activities, with a separate determination made for each division based on budgeted information.
APPLICATION OF ADMINISTRATIVE AND VEHICLE OVERHEAD (SELF - CONSTRUCTED ASSETS) - 6230 expense figures since the overhead application rate for a particular fiscal year must be determined before the year commences.
AI summary The document discusses the necessity of determining the overhead application rate for a fiscal year before the year begins, ensuring accurate expense figures for administrative and vehicle overhead related to self-constructed assets.
08 Power Production Division Eligible Overhead Expenses for Power Production include all costs incurred by the Division's head office cost centres as well as the costs included in the administration cost centres for all operational generat...
AI summary Eligible overhead expenses for the Power Production Division include costs from head office and administrative cost centres for operational generating stations, with a separate allocation of head office expenses added to the Division's eligible expenses.
09 Shared Services Division Eligible Overhead Expenses and rates are calculated for each Shared Services Division, deemed to have capital related labour and expenses. These eligible expenses include, but are not limited to, office supplies...
AI summary The Shared Services Division's eligible overhead expenses, including office supplies, training, rent, and materials, are calculated and combined with a separate allocation of head office expenses.
10 HEAD OFFICE RENT Head Office expenses are allocated to the three operating divisions based on the square footage occupied by each division.
AI summary Head Office expenses are allocated to three operating divisions based on the square footage each division occupies. This method ensures a fair distribution of overhead costs.
CALCULATION OF OVERHEAD APPLICATION RATE 13 Once the Capital-related Overhead Expenses have been determined, the overhead application rate can be calculated. The application rate is simply the quotient, expressed as a percentage, of the Ca...
AI summary The overhead application rate is calculated by dividing capital-related overhead expenses by capital labour costs, expressed as a percentage. This calculation is performed separately for each division after determining the capital-related overhead expenses.
REVIEW OF OVERHEAD APPLICATION RATE 14 The overhead application rate will be reviewed on an annual basis by Capital Accounting to assess its reasonableness.
AI summary The overhead application rate will be reviewed annually by Capital Accounting to ensure its reasonableness.
APPLICATION OF ADMINISTRATIVE OVERHEAD (CONTRACTED ASSETS) - 6235
AI summary The document pertains to the application of administrative overhead for contracted assets, likely involving financial and regulatory considerations related to Nova Scotia Power Inc. and the Nova Scotia Utility and Review Board.
DETERMINATION OF ELIGIBLE OVERHEAD EXPENSES 06 The next step is the identification of operating expenses that will benefit construction or development activities. A separate determination is made for each division. The process relies on bu...
AI summary The document outlines the process for identifying operating expenses that benefit construction or development activities, emphasizing the use of budgeted figures to determine overhead application rates before the fiscal year begins.
POLICY - 04 Allowance for funds used during construction should be capitalized at the effective cost-of-capital rate, compounded semi-annually, except in the following circumstances: - a. Projects that will be under construction for less t...
AI summary The text discusses the capitalization of the Allowance for Funds Used During Construction (AFUDC) at the effective cost-of-capital rate, compounded semi-annually, with exceptions for projects under short construction timelines, those delayed by extraordinary circumstances, and those where capitalization would exceed economic value or future benefits.
08 Calculation of AFUDC Rate The rate used to capitalize AFUDC is the Company's weighted average cost of capital before tax . The rate is calculated annually, in advance, by dividing the forecasted annual interest expense, preferred divide...
AI summary The AFUDC rate is calculated using the Company's weighted average cost of capital before tax, determined annually by dividing forecasted interest expense, preferred dividends, and net earnings by average debt and equity. The annual rate is then divided by twelve to obtain the monthly rate.
12 Allowance for Doubtful Accounts The allowance for doubtful accounts is calculated and adjusted monthly to reflect the Company's best estimate of uncollectible receivables. Large industrial and commercial accounts are assessed for collec...
AI summary The allowance for doubtful accounts is calculated monthly based on the Company's estimate of uncollectible receivables. Large accounts are assessed individually, while others use aged listings and historical data to determine uncollectible rates.
POLICIES - 01 The Company accrues a liability for termination costs associated with severance programs consistent with the requirements of FASB ASC Topic 420 – Exit or Disposal Cost Obligations or ASC Topic 712 – Compensation – Nonretireme...
AI summary The document outlines the Company's accounting treatment of termination costs associated with severance programs, referencing FASB ASC topics and considering the impact on revenue requirement and rate stability. It distinguishes between one-time, special, and contractual termination benefits and explains when liabilities are recognized.
06394Board Order 2/16/2011
26 passages
GENERAL - 01 Nova Scotia Power Inc. ("NSPI") is the primary operating subsidiary of Emera Inc, a diversified energy company based in Halifax, Nova Scotia - 02 For financial reporting purposes, NSPI is organized into cost centers and has sp...
AI summary Nova Scotia Power Inc. (NSPI) is a subsidiary of Emera Inc. and operates under a Cost Allocation Policy that ensures fair allocation of corporate support services and general expenses between NSPI and its affiliates, in line with accounting principles.
SELECTION AND APPLICATION OF ALLOCATION METHODOLOGY - 06 The procedures followed by Corporate Accounting to allocate the corporate support services Operating, Maintenance and General ("OM&G") to affiliates are: - a. Identify cost centres t...
AI summary The document outlines the procedures used by Corporate Accounting to allocate corporate support services Operating, Maintenance and General (OM&G) costs to affiliates, including identifying cost centres, interviewing managers, selecting an allocation methodology, and calculating charges.
COST ALLOCATION POLICY -1570 e. On a monthly basis, allocate common corporate support services costs to affiliates. Allocation calculations will be updated monthly, quarterly and annually depending on the cost centre. The overhead load fac...
AI summary The document outlines a policy for the monthly allocation of common corporate support services costs to affiliates, with updates occurring monthly, quarterly, and annually depending on the cost centre, and the overhead load factor being updated annually or more frequently if needed.
COSTS INCLUDED IN THE ALLOCATION PROCESS - 07 NSPl's corporate support services costs include all expenses, both direct and common, required to provide support services to NSPI and its affiliates. - 08 An overhead load will be charged to N...
AI summary The document outlines how corporate support services costs for NSPI and its affiliates are allocated, including both direct and common expenses, and the overhead load charged to affiliates for indirect support costs.
DIRECT EXPENSE ALLOCATION 10 Corporate support services costs that can be directly attributed to a specific entity are directly charged to that entity.
AI summary The document states that corporate support services costs directly attributable to a specific entity are charged to that entity.
COMMON COST ALLOCATORS - 11 Where services are provided to a number of affiliates and direct charging is not readily determinable or practical, one or more of the following methods or lIcosts drivers" are used for allocating costs. - 12 Ti...
AI summary The document outlines methods for allocating common costs among affiliates of Nova Scotia Power Inc. (NSPI), including Time Analysis, Project Analysis, Enterprise Employees, and Total Capitalization, each based on different metrics such as labor hours, employee count, and capital structure.
COST ALLOCATION POLICY - 1570 - 16 Number of Invoices Number of invoices uses the relative proportion of invoices processed for each affiliate. - 17 Number of Journal Lines Number of journal entry lines uses the relative proportion of acco...
AI summary The document outlines a cost allocation policy that uses various metrics such as the number of invoices, journal lines, vehicles, asset value, and total revenue to allocate costs proportionally among affiliates based on their relative contributions.
RESPONSIBILITY - 24 Corporate Accounting Services will be responsible for: - a. identifying cost centres that provide services to both NSPI and its affiliates; - b. choosing allocation cost drivers in conjunction with the service providers...
AI summary Corporate Accounting Services is tasked with identifying cost centres, selecting allocation drivers, calculating overhead factors, and processing monthly cost allocations to NSPI's affiliates. The Controller of NSPI oversees the management of the Cost Allocation Policy.
DEFINITIONS - 28 For the purpose of the Cost Allocation Policy and interpretation of this Policy, the following definitions will apply. - 29 Affiliate The Nova Scotia Companies Act defines an Affiliate as: - (1) A company shall be deemed t...
AI summary This section defines key terms related to cost allocation and corporate structure as outlined in the Cost Allocation Policy. It includes definitions of 'Affiliate,' 'Corporate Support Service,' 'Cost Allocation,' 'Cost Driver,' 'Common Costs,' and 'Direct Costs' to ensure consistent interpretation and application.
04 Fuel Consumption Fuel costs are charged to expense as follows: - a. Fuels are recorded as inventory when received. - b. As fuel is consumed, its cost is relieved from inventory using the weighted average cost method and is charged to fu...
AI summary The document outlines the accounting treatment for fuel costs, including inventory recording, weighted average cost method for consumption, and inclusion of derivative transaction settlements in fuel expense.
POLICIES - 03 Differences between actual fuel costs and amounts recovered from customers accumulate in the FAM Regulatory Asset (Liability) included in "Other Assets" or "Other Liabilities" on the Balance Sheet and subsequently become an a...
AI summary The text discusses the Fuel Adjustment Mechanism (FAM) and how differences between actual fuel costs and recovered amounts are accounted for in the FAM Regulatory Asset (Liability) on the Balance Sheet. Interest is earned on this balance at the weighted average cost of capital (WACC), compounded semi-annually by NSPI.
08 Short-term Interest Short-term interest includes all interest, commissions, stamping fees, overdraft charges associated with the issuance of commercial paper, banker's acceptances, hedge settlements, and prime loans These costs are expe...
AI summary Short-term interest refers to the costs associated with financial instruments like commercial paper and banker's acceptances, which are expensed or amortized monthly over the number of days of the associated debt.
09 Other Financing Charges The Company expenses related banking costs in the month in which they occur. Stand by fees and letters of credit fees are expensed monthly. Credit facility fees are expensed over the period to which they relate.
AI summary The company expenses banking costs, including standby fees and letters of credit fees, monthly. Credit facility fees are expensed over the period they relate to, rather than being capitalized.
Cost Elements Contract Costs Electrical Materials Mechanical Security
AI summary The text lists various cost elements including contract costs, electrical materials, mechanical, and security. These are likely categories of expenses related to infrastructure or operations.
COST COMPONENTS AND ELEMENTS - 6140 Cost Elements Controls Meters Panels Wiring Stores Equipment (074) Cost Components Counters & Shelves Elev &Stack. Equip. Hand & Power Driven Trucks Storage Bins Cost Elements Mounting Devices Computer A...
AI summary The document outlines various cost components and elements related to utility infrastructure, including meters, panels, wiring, equipment, software procurement, middleware modifications, purchase price differences, and non-utility property. These categories are listed under different headings for organizational and accounting purposes.
APPLICATION OF ADMINISTRATIVE AND VEHICLE OVERHEAD (SELF - CONSTRUCTEp ASSETS) - 6230 expense figures since the overhead application rate for a particular fiscal year must be determined before the year commences.
AI summary The document discusses the necessity of determining the overhead application rate for a fiscal year prior to its commencement to ensure accurate expense figures.
09 Shared Services Division Eligible Overhead Expenses and rates are calculated for each Shared Services Division, deemed to have capital related labour and expenses. These eligible expenses include, but are not limited to, office supplies...
AI summary The Shared Services Division's eligible overhead expenses, including office supplies, training, rent, and materials, are calculated and allocated along with separate head office expenses to determine rates for the division.
APPLICATION OF ADMINISTRATIVE AND VEHICLE OVERHEAD (SELF - CONSTRUCTED ASSETS) - 6230 - overhead expenses determined above based on capital labour to total labour for both administrative and vehicle overheads. - 12 Some capital-related exp...
AI summary The document discusses the allocation of overhead expenses, specifically administrative and vehicle overheads, based on capital labour to total labour ratios. It emphasizes that certain capital-related expenses should be included in overhead expenses charged to capital projects and allocated to divisions based on their capital labour costs.
CALCULATION OF OVERHEAD APPLICATION RATE 13 Once the Capital-related Overhead Expenses have been determined, the overhead application rate can be calculated. The application rate is simply the quotient, expressed as a percentage, of the Ca...
AI summary The overhead application rate is calculated by dividing capital-related overhead expenses by capital labour costs, expressed as a percentage. This calculation is performed separately for each division after determining the capital-related overhead expenses.
APPLICATION OF ADMINISTRATIVE OVERHEAD (CONTRACTED ASSETS) - 6235
AI summary The document pertains to the application of administrative overhead for contracted assets, likely involving Nova Scotia Power and the Nova Scotia Utility and Review Board. It references accounting standards, financial systems, and regulatory processes relevant to the management and evaluation of capital expenditures and asset-related costs.
GENERAL - 01 Overhead expenses are integral costs associated with the construction of capital assets. As per NSPl's Accounting Policy & Procedures Manual Section 6100 - Cost, the cost of a capital asset not only includes direct constructio...
AI summary Overhead expenses are considered integral to the construction of capital assets and must be allocated to capital projects even though they are not directly tied to specific projects. NSPl's accounting policy outlines that overhead costs are determined using labour costs for externally contracted projects, following the Public Utilities Board's ruling.
08 Power Production Division Eligible Overhead Expenses for Power Production include all costs incurred by the Division's head office cost centres as well as the costs included in the administration cost centres for all operational generat...
AI summary The Power Production Division's eligible overhead expenses include costs from head office and administrative cost centres for operational generating stations.
09 Shared Services Division Eligible Overhead Expenses and rates are calculated for each Shared Services Division deemed to have capital related labour and expenses. These eligible expenses include, but are not limited to, office supplies,...
AI summary The Shared Services Division calculates eligible overhead expenses and rates for divisions with capital-related labour and expenses, including office supplies, training, rent, and materials.
08 Calculation of AFUDC Rate The rate used to capitalize AFUDC is the Company's weighted average cost ofcapital before tax. The rate is calculated annually, in advance, by dividing the forecasted annual interest expense, preferred dividend...
AI summary The AFUDC rate is calculated annually using the Company's weighted average cost of capital before tax, derived from forecasted interest expense, preferred dividends, and net earnings. This rate is then divided by twelve to determine the monthly AFUDC rate.
01 Cost Cost is the main component of most retirement work orders. Refer to NSPl's Accounting Policy & Procedures Manual 61 00 for a more detailed description of the items included in cost. The amounts that must be removed to record the de...
AI summary The text discusses the accounting treatment of asset retirement obligations, removal costs, salvage value, and net salvage value in the context of retirement work orders. It outlines how these costs are recorded, including the inclusion of labor, materials, and overhead, and their impact on accumulated depreciation.
OVERHEAD APPLICATION RATE 04 The overhead application rate is calculated based on total OM&G expenses identified above divided by total operating labour.
AI summary The overhead application rate is determined by dividing total OM&G expenses by total operating labour. This calculation is used to allocate overhead costs appropriately within the organization.