P-2NSPI (UARB) IR-1 to IR-33; NSPI (Irving Oil) IR-1 to IR-7; NSPI (CBRM) IR-1 to IR-17 - Responses
16 passages
RESPONSE TO INFORMATION REQUEST TO: NSUARB FROM: NSPI Question IR-8: In Attachment A, Paragraph (2) it is stated that NSPI will conduct an initial screening to determine whether the implementation of the procedures is warranted. Please ela...
AI summary NSPI responds to an information request by NSUARB regarding the factors considered in an initial screening for alternate supply options. Key factors include engineering detail, fuel acquisition plans, unit size relative to customer needs, and preliminary economic analysis.
rvice provided in conjunction with the contracts has not, and will not in the future, impede the development of competition in its service territory." March 23, 1995. order, Case No. U-10646, p. 21 .. The Commission also indicated that oth...
AI summary The Commission emphasized that contracts should not lead to underrecovery of power supply costs or subsidization of contract customers by others. It required separate rate class treatment for contracts and annual reporting to ensure fair cost allocation and protect all ratepayers. This was based on prior orders in Case No. U-10646 and Case No. U-10961.
SECTION C. Economic Development Related Rates For purposes of this report, economic development related rates are those that provide an economic motivation to a customer in exchange for the alteration of the customer's load pattern (not ne...
AI summary This section discusses economic development related rates, focusing on interruptible rates and off-peak load rates. Interruptible rates allow customers to accept service interruptions in exchange for lower rates, benefiting both customers and utilities by reducing costs. Off-peak rates encourage energy use during non-peak times, lowering customer costs. Illinois is highlighted as one of 37 states allowing such rates.
Full Range of Evaluation Criteria PROSCREEN II provides a full range of evaluation criteria so that every aspect of a plan can be assessed: RATES Average Cass Prices - Base and Fuel Class Rate Increases - Base and Fuel ECONOMICS Present Wo...
AI summary PROSCREEN II offers a comprehensive set of evaluation criteria for assessing energy plans, covering rates, economics, reliability, financial integrity, customer impact, and societal and shareholder considerations. Key aspects include revenue requirements, cost assessments, reliability metrics, financial ratios, and stakeholder impacts.
me Costs - Customer Variable Costs - Utility Fixed DSM Expense - Utility New Participants Expense - Utility Variable DSM Expense - New Participants Incentive Payment - Variable Incentive Payment - Fuel Switch Savings (Costs) - New Particip...
AI summary The text discusses the methodology for evaluating the impacts of demand-side management (DSM) programs, including variable and fixed costs, incentives, and external benefits. It highlights the use of PROSCREEN II's DLC algorithm and the integration of load forecasting and generation and fuel modules to assess dispatch decisions.
Introduction The PROVIEW (PRY) Module is a resource planning model which determines the least-cost balanced demand and supply plan for a utility system under prescribed sets of constraints and assumptions. PROVIEW incorporates a wide varie...
AI summary The PROVIEW module is a resource planning tool used to develop least-cost balanced demand and supply plans for utility systems. It works with other modules like GAF and LFA to evaluate DSM programs through screening, optimization, and detailed analysis, incorporating factors such as emissions, cost effectiveness, and reliability.
Construction Period Calculations The construction period begins with the construction start date and ends immediately before the in-service date. Items calculated for this period include: - Capital Expenditures These are entered either as...
AI summary The document outlines the construction period calculations, focusing on capital expenditures, CWIP, AFUDC, ITC, and overheads. It explains how these items are calculated and applied during the construction phase, including the use of escalation rates, inflation rates, and user-specified percentages.
Economic Calculations The CER Module also calculates the annual present worth and the accumulated present worth of the revenue requirements associated with each project. Reports show the determination of present worth of revenue requiremen...
AI summary The CER Module calculates annual and accumulated present worth of revenue requirements for projects, using minimum revenue requirements and discounted cash flow approaches. It supports engineering economic evaluations and life-cycle comparisons of projects, and system analysis reports are available for entire plans, including data from the GAF Module or PROMOD Ill.
Public Power Capabilities in the Capital Expenditure and Recovery Module PROSCREEN II also has logic designed very specifically for simulating the mrique :financial decision environment of cooperatives, municipals and other public power en...
AI summary The PROSCREEN II module is designed to simulate financial decision environments for public power entities, including the automatic determination of debt financing for construction projects. The CER Module calculates bond sizing, issuance amounts, interest during construction, and amortization schedules using methods approved by the Federal Financing Bank, with results passed to the FIR Module for financing processes.
Output Reports The following repons are provided by t.l-ie CER Module: - Project Financial Cost Flows Bond Sizing Report - System Report Project Revenue Requirements - Oass Report System Revenue Requirements - Project Report Busbar Costs R...
AI summary The document outlines various output reports generated by the CER Module, including financial cost flows, revenue requirements, busbar costs, and diagnostics for evaluating processing results. These reports cover bond sizing, deferred taxes, AFUDC, plant closings, and other financial considerations.
Introduction The Financial Reporting and Analysis (FIR) Module is designed to combine results from the Load Forecast Adjustment (LF A) Module, the Generation and Fuel (GAF) Module, and the Capital Expenditure and Recovery (CER) Module, wit...
AI summary The Financial Reporting and Analysis (FIR) Module integrates data from multiple modules to generate financial reports and analyze the impact of various factors on company financial operations, including construction programs, capital market conditions, tax law changes, and rate adjustments.
General Capabilities - The FIR Module considers construction expenditures, revenue requirements, generation and non-generation costs, taxes (If applicable), and financing alternatives to analyze the impact of a strategic scenario. - Specia...
AI summary The FIR Module evaluates construction costs, revenue needs, and financing options to analyze strategic scenarios. It models financial instruments, debt, and lease provisions, and allows users to input escalation rates or annual amounts for accurate financial projections.
Class Cost of Service The CRM combines the functiooalization and classification steps of a cost of service analysis as its initial process, referred to as the classification process. Plant and expense items are assigned to user-defined cla...
AI summary The CRM combines classification and functionalization steps in a cost of service analysis. Plant and expense items are assigned to user-defined categories, and classified costs are allocated to jurisdictions and rate classes using various methods such as Coincident Peak Demand, Noncoincident Peak Demand, and KWH Energy Sales.
The marginal transmission cost is based on a statistical approach, in which a linear regression of total transformer kV.A installed, at both 138 kV and 69 kV voltage levels, against annual System Maximum Demand is carried out. The 1984 rev...
AI summary The document outlines the methodology for calculating marginal transmission and distribution costs, including the use of linear regression, capital cost updates, inflation and discount rates, and operating and maintenance expenses. It also explains how customer costs are derived from meter and service extension costs, with a carrying charge applied.
ate of 10.00% (interest at 7% plus depreciation at 3%) was applied to the marginal capital values to obtain the annual carrying charge. The carrying charge was then converted to a per customer charge. The operating and maintenance costs po...
AI summary This text explains the method used to calculate marginal customer costs, including the application of a carrying charge derived from capital values, operating and maintenance costs, and overhead charges, all of which are then converted to a per customer charge and escalated annually.
For the nine months ended September 30 {unaudited) millions of dollars (except earnings per common share) 1999 1998 Revenue Electric $584.0 $550.1 Other 7.4 6.2 591.4 556.3 Cost of operations Fuel for generation and power purchased 196.7 1...
AI summary This document presents financial data for the nine months ended September 30, showing revenue, cost of operations, and earnings for the years 1999 and 1998. Key figures include revenue from electric and other sources, cost of operations, and net earnings applicable to common shares.
P-3NSPI (Sempra) IR-1 to IR-14
17 passages
5 Seasonal Rates 6 7 In 1993 I looked at NSPI's embedded cost of service study and found significant 8 differences between summer and winter costs. In the Interim IR-R2, NSPI reports a 9 seasonal differential in avoided costs for the year...
AI summary The text discusses seasonal rate differentials based on NSPI's embedded cost of service study and the reconciliation of seasonal avoided costs using the equi-proportional method, leading to higher winter rates for some customer classes.
10 Short-Run versus Long-Run Marginal Costs 11 12 I indicated that for utility rates to be considered efficient they must reflect marginal 13 costs. Marginal costs can be measured over either the short run or long run. For rate 14 design p...
AI summary The text discusses the importance of distinguishing between short-run and long-run marginal costs in utility rate design. Short-run marginal costs are appropriate for short-term contracts, while long-run marginal costs are better for long-term decisions, such as those made by consumers choosing between energy sources for new homes.
Senior Project Manager (1982 to 1985) Electric Power Research Institute Developed, managed, and coordinated projects related to demand-side planning, rate design, load forecasting, and customer behavior and response. Major projects include...
AI summary The text outlines the professional experience of an individual in the energy sector, focusing on roles in demand-side planning, rate design, load forecasting, and load management. It highlights projects related to forecasting software, load control experiments, and textbooks on marginal cost calculations.
Technical Reports Demand-Side Mana.gement: Decoupling Profits from Sales. With M. Reid. Washington, D.C.: Edison Electric Institute, January 1993. Customer Response to Rate Options. With A. Fauqui, S. Shaffer, K. Seiden, M. Mauldin, and S....
AI summary The text lists various technical reports related to demand-side management, rate design, and cost-benefit analysis in the electricity sector, primarily authored by individuals and organizations associated with the Edison Electric Institute and the Electric Power Research Institute (EPRI). These reports focus on energy efficiency, rate structures, and load management.
DR. CHAMBERLIN, DIRECT EXAM. BY MR. OUTHOUSE 2749 - be calculated in a similar manner? - 2 They can be calculated in a similar manner, in which Α. case avoided costs are calculated if they're 3 calculated the same way as long-run marginal...
AI summary The discussion revolves around the calculation of avoided costs and long-run marginal costs, with the expert noting that they can produce similar results if calculated on the same planning assumptions. The expert also clarifies that avoided costs are often used differently in PURPA contexts and may involve distinct approaches compared to long-run marginal costs.
DR. CHAMBERLIN, CROSS-EXAM. BY MR. KEHOE A. Well, it's been a couple of years since I looked at that. I'm not sure that I can in detail. What I recollect from a couple of years ago was that, as I looked at NSPI's embedded cost of service s...
AI summary The discussion centers on the allocation of fixed costs between winter and summer periods in relation to time-of-use initiatives. Concerns are raised about whether fixed costs are being arbitrarily assigned to winter and whether shifting consumption would lead to cost savings. The expert responds that the issue is one of efficiency rather than allocation.
DR. CHAMBERLIN, CROSS-EXAM. BY MR. MACDONNELL 2772 think marginal - Q. If you'd like to substitute a word, that's fine. - A. I think reflecting marginal costs in the rates is a very important thing to do. I think, the more efficiency is an...
AI summary The discussion focuses on the importance of reflecting marginal costs in rates and the reconciliation process involving revenue requirements. It highlights the differences between marginal cost-based and embedded cost-based revenue requirements, particularly in examples like California.
DR. CHAMBERLIN, CROSS-EXAM. BY MR. MACDONNELL 2773 part of the reconciliation process? A. Sure. Acknowledging that one way to do cost Q. Okay. Is there a necessity to be consistent between the cost allocation study and rate design? allocat...
AI summary The discussion centers on the importance of consistency between cost allocation studies and rate design, particularly when there is a disparity between embedded energy costs and marginal energy costs. The concern is that using a cost allocation method that assigns fixed capital costs based on energy consumption may lead to inefficiencies if rates are set based on lower marginal costs, potentially attracting more demand than revenue can support.
DR. CHAMBERLIN, CROSS-EXAM. BY MR. MACDONNELL 2774 shortfall who would pay for it? - A. If there's a revenue shortfall that results from an incorrect price to start with, I guess stockholders pay for it until the next rate case. And then i...
AI summary The discussion centers on revenue shortfalls due to incorrect pricing and the allocation of costs based on marginal costs. The expert explains that shareholders typically bear the burden of shortfalls until the next rate case and suggests that while marginal cost-based studies may be beneficial, they are not strictly necessary.
DR. CHAMBERLIN, CROSS-EXAM. BY MR. MACDOUGALL 2785 allocation studies would reflect 65% of fixed costs classified to energy. - I didn't review them, though. So, I'm I mean, in Ā. concept if I'll agree with this. In concept if capacity cost...
AI summary Dr. Chamberlin discusses the allocation of capacity costs to energy in allocation studies, noting that if 65% of fixed costs are classified to energy, this could lead to over-allocation and affect pricing. He also mentions that revenue reconciliation and rate design play a role in how these costs are ultimately reflected.
DR. CHAMBERLIN, CROSS-EXAM. BY MR. CAMPBELL 2795 - to produce that electricity off peak, everybody benefits from it. The cost/benefit method doesn't address that. It says it's across, when in fact,\nit's above. - Q. You identify Mr. Bowman...
AI summary The discussion centers on the method of setting time-of-use rates, with a focus on whether customer charge methods or adjustments to peak and off-peak pricing better address cost/benefit considerations. The speaker critiques the customer charge method for potentially making time-of-use rates unpalatable due to high charges and suggests alternative approaches.
DR. CHAMBERLIN, CROSS-EXAM. BY MR. CAMPBELL - seem to support, sort of, the at least the drop\nin the third block. But I'd want to know some\nother things as well, like what the marginal costs were, and the relationship between that block...
AI summary Dr. Chamberlin discusses the appropriate pricing for the third block in relation to marginal costs, emphasizing the need to distinguish between short-run and long-run marginal costs depending on the nature of the service agreement. He raises concerns about the implications of disconnecting electric heating customers during capacity shortages.
DR. CHAMBERLIN, CROSS-EXAM. BY MR. HARRIS 2814 being suggested to us that if there's any alignment of rates to take place, it should be with the kind of rates that might be expected to prevail in a competitive marketplace. And my understan...
AI summary The discussion centers on aligning rates with marginal cost for efficient price signaling, even in the absence of immediate competition. The expert agrees that aligning rates with marginal cost encourages optimal customer and societal resource use.
urn to a declining rate structure. 3 In this paper, we show that the efficiency criticism of declining block rates has been incorrectly applied, and has therefore led to poor policy choices. The economic efficiency argu-I ment for inverted...
AI summary This paper argues that the efficiency criticism of declining block rates has been incorrectly applied, leading to poor policy choices. It highlights that inverted block rates may not always be economically efficient, especially when considering seasonal variations in electricity use and capacity costs.
A. Balancing Competing Objectives In choosing a desirable rate structure from the available alternatives, electric utilities and their regulators balance objectives that often compete with one another. The Public Utility Regulatory Policie...
AI summary The text discusses the balancing of competing objectives in setting electricity rates, referencing the Public Utility Regulatory Policies Act (PURPA) of 1978. It outlines PURPA’s three objectives: energy conservation, efficiency, and equitable rates. It also explains inverted block rate structures and PURPA’s stance on declining block tariffs, emphasizing efficiency and cost considerations.
Endnotes: 1. Fla. Pub. Serv. Comm., Docket No. 830465-El, July, 1984. 2. Bracewell & Patterson, Survey of U.S. Jurisdictions with Inverted Block Rates (prepared for British Columbia Hydro, May 1991) . · .. . ·3: I£ ' ... - 4. Time-of-use (...
AI summary The text discusses rate structures, particularly the preference for time-of-use (TOU) pricing over block rates for large users due to cost-effectiveness, while block rates may be better for small commercial and residential classes. It references various economic theories and regulatory policies related to pricing and taxation.
RESPONSE TO INFORMATION REQUEST TO: SEMPRA ATLANTIC GAS INC. FROM: NSPI Question IR-14: Attachment "A", paragraphs 10 and 11, Application by Nova Scotia Power Inc. for a Load Retention Rate. NSPI proposes to compare and assess the impact o...
AI summary NSPI is responding to a request for information regarding marginal costs related to a Load Retention Rate. The response refers to a prior UARB interrogatory and confirms that the cost of capital is considered in determining the net benefit of offering the Load Retention Rate.
P-10-a[Full Document] Development and Use of Natural Gas: Socio-Economic Impact on the Cape Breton Regional Municipality
10 passages
Issues NSPI entered into a 32-year coal contract with CBDC in 1978. The contract is one based on mutual dependence. It was negotia ted at a time of rapidly rising oil prices and considerable instability in energy markets. NSPI gained suppl...
AI summary NSPI and CBDC entered into a 32-year coal contract in 1978, which expired in 2010. The contract provided NSPI with supply security and price stability, while CBDC received guaranteed market support. The contract was re-negotiated in 1995, leading to an 18% price drop influenced by declining oil prices and world coal prices, which increased NSPI's coal usage.
Related to the question of production capability is production cost. At an estimated $55-60 per tonne, CBDC is a relatively high cost producer. By comparison, average mine-mouth prices in the U.S. are about half – in the range of CDN $30 p...
AI summary The text compares production costs of CBDC with U.S. mine-mouth prices, highlighting CBDC's higher costs at $55-60 per tonne compared to U.S. prices expected to drop to $22 per tonne by 2020. The differences are attributed to variations in mining techniques and geography.
What this means for the CBRM CBDC's production difficulties and relatively high costs serve to weaken the company's competitive position as a supplier to NSPI. The long term contract provides some protection from market forces, provided CB...
AI summary CBDC's production challenges and high costs hinder its competitiveness as a supplier to NSPI. While the long-term contract offers some short-term protection, long-term viability requires reduced costs and more stable production levels. CBDC is developing a strategy to address these issues in its next 5-year plan.
- 5. Natural gas burner tip price is $2.75/mmbtu or $2.61/GJ to displace #2 oil and #6 oil in the ind'l and com'l/inst'l sectors. Rate Base Calculation Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Cate Base % $ (000's) % $ (000's) % $...
AI summary The document provides a rate base calculation table detailing various components and percentages for different years, including initial values, plant additions, deductions, and year-end figures. The table includes categories such as distribution lines, meters, and corporate expenses, along with depreciation and working capital.
ASSUMPTIONS USED IN DEVELOPING MODEL Rate Base Lateral cost -$35 million, distribution system - $20 million Distributor will build out basic system as quickly as possible to have service ready for customer connections to gain early revenue...
AI summary The assumptions used in developing the model include capital expenditures for lateral and distribution systems, depreciation rates, equity and debt ratios, operating and maintenance costs, and revenue requirements. The model assumes a 35% equity ratio with a 12% return on equity, and capital is capitalized at different rates over the project timeline. Operating costs are estimated, with normalized ratios emerging in later years as the system becomes operational.
Relative Cost of Fuel Electricity is a commodity that cannot be differentiated by source or quality and therefore, the challenge is to be the least cost producer. All the generating companies in the United Kingdom have implemented a range...
AI summary The text discusses efforts by UK generating companies to reduce fuel costs through diversification of fuel sources, investment in efficient CCGT plants, and closure of inefficient plants. These measures are driven by the need to remain competitive in a market where the Pool only pays for available plants.
1. RESISTANCE TO CONVERSION Development of a new natural gas distribution system into areas previously unserved by natural gas often requires some measure of incentive program to encourage conversion to the newly available energy source. T...
AI summary The text discusses the barriers to converting to natural gas, including safety concerns, cost savings, and high conversion costs. It outlines strategies to overcome these barriers, such as cost reduction measures, gas price stabilization, and public awareness campaigns, referencing successful and unsuccessful implementations in other jurisdictions.
2. COST REDUCTION MEASURES FOR THE MAINLINE DISTRIBUTION SYSTEM The objective is to reduce the actual distribution cost of delivering gas to the burner tip, as distribution tolls are often one of the most significant cost components in det...
AI summary The text discusses the objective of reducing distribution costs for gas delivery to end users, highlighting that distribution tolls can account for 30 to 40 percent of the final price. It outlines two general approaches: aids to construct mainline facilities and toll reduction techniques.
Toll Reduction Techniques Distribution tolls for each consumer class are normally set by the provincial utility board with jurisdiction. In Nova Scotia, this function will be administered by the Nova Scotia Utilities and Review Board under...
AI summary The text discusses toll reduction techniques used by regulatory boards to lower transportation tolls from new distribution systems. It outlines methods such as adjusting depreciation terms, forward levelizing rates, reducing return on equity, government debt guarantees, and cost savings incentives. It also notes that cross-subsidization is no longer used in modern unbundled service environments.
Service Connection Cost Assistance The cost to bring gas service from the street main into a dwelling often ranges from $600 to $2,000 per installation. Several approaches have been used successfully in other jurisdictions. - Partial subsi...
AI summary The document outlines various methods to assist with the cost of connecting gas service to homes, including partial subsidization by utilities or government, capped subsidies, and loan assistance programs. These approaches aim to reduce the financial burden on consumers while managing cost exposure for ratepayers and ensuring affordability.