Topic:"Cost Considerations" in M11990

1 M08984, Nova Scotia Power Inc., 2019 Annual Capital Expenditure Plan - Capital Expenditure Justification Criteria Documents, approved by the NSUARB in a letter dated April 16, 2020. M11536, Nova Scotia Power Inc., Pre-Tax Weighted Averag...

AI summary This document references two regulatory approvals related to Nova Scotia Power Inc.: the 2019 Annual Capital Expenditure Plan and the Pre-Tax Weighted Average Cost of Capital (WACC) and Allowance for Funds Used During Construction (AFUDC) Rates, both approved by the NSUARB in 2020 and 2024 respectively.

2025 Budget 1 (1) (2) (3) (4) (5) (6) (7) (8) 2 2025 Cost Cost Weighted Weighted Average Pre-tax After-tax Pre-tax After-tax 3 Opening Closing Capital Capital Ratio Factor Factor Cost Cost 4 5 Estimated Cost of Capital 6 7 Short-term debt...

AI summary The 2025 Budget table outlines the estimated cost of capital for short-term and long-term debt, as well as common equity, with weighted average costs provided. It includes figures for opening and closing balances, capital ratios, and pre-tax and after-tax cost factors.

1 Request IR-3: 2 3 Please refer to page 1 of Appendix A of the Application dated November 28, 2024. 4 5 (a) With reference to the average capitalization of $5.683 billion shown at row 13 please 6 quantify what portion of the $5.683 billio...

AI summary The document requests quantification of how the average capitalization of $5.683 billion is allocated across various categories, including net plant in service, construction work in progress, non-capital deferrals, working capital, and other items.

Nova Scotia Power Inc. FOR-10 Estimated Average Capital and Cost of Capital Year Ended December 31st Thousands of Dollars

AI summary Nova Scotia Power Inc. submitted a FOR-10 document outlining estimated average capital and cost of capital for the year ended December 31st, with figures presented in thousands of dollars.

2025 Budget 1 (1) (2) (3) (4) (5) (6) (7) (8) 2 2025 Cost Cost Weighted Weighted Average Capital Pre-tax After-tax Pre-tax After-tax 3 Opening Closing Capital Ratio Factor Factor Cost Cost 4 5 Estimated Cost of Capital 6 7 Short-term debt...

AI summary The document provides an overview of the 2025 budget, focusing on the estimated cost of capital, including details on short-term and long-term debt, common equity, and weighted average costs. It includes figures for opening and closing balances, capital ratios, and cost factors.

All In CP Rates 4.47% 4.18% 3.97% 3.88% Interest Rate Calculation per WACC methodology Interest Rate Calculation per WACC methodology Opening, Short-Term Debt 9,835 Ending, Short-Term Debt 165,932 Average Short-Term Debt Balance, 2025 87,8...

AI summary The document provides interest rate calculations based on the WACC methodology, showing changes in short-term debt balances and associated interest expenses over time. It outlines the average short-term debt balance for 2025 and the cost of short-term debt at 5.19%.

WACC and AFUDC Rates for 2025 Application (NSUARB M11990) NSPI Responses to NSUARB Information Requests 1 Request IR-3: 7 process to calculate NS Power's credit spread as noted in response to (a) above remains 8 the same. However, because...

AI summary NSP explains that its credit spread has decreased compared to the Term CORRA benchmark rate but remains consistent with 2024 levels when compared to treasury bills. A credit downgrade in 2023 led to higher borrowing costs due to a different investor base, and NSP assumes its current credit rating remains stable with no migration expected.

REDACTED 2025 WACC and AFUDC Rates NSUARB IR-6 Attachment 1 Page 1 of 1 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Nova Scotia Power Inc. Estimated Average Capital and Cost of Capital Year Ended December 31st Thousands of Dollars FOR-10 2...

AI summary The document presents Nova Scotia Power Inc.'s estimated average capital and cost of capital for 2025, including short-term and long-term debt, common equity, and weighted average costs. It also includes a request for clarification on the specific Bloomberg short-term interest rate being referenced in the application.

4 M11990, Industrial Group Submission, WACC and AFUDC Rates for 2025, February 13, 2025, Page 4. spread4F 5 1 to the forecast Canadian Treasury Bill rate. Combined these amounts represent an 2 estimated fixed cost of borrowing above the 3-...

AI summary NS Power explains its use of the Term CORRA rate as a replacement for the discontinued CDOR benchmark in forecasting short-term interest rates. It applies a historical spread between Canadian Treasury bills and Term CORRA, plus a fixed adjustment, to maintain consistency with previously approved methodologies and stakeholder presentations.

2025 Budget 1 (1) (2) (3) (4) (5) (6) (7) (8) 2 2025 Cost Cost Weighted Weighted Average Capital Pre-tax After-tax Pre-tax After-tax 3 Opening Closing Capital Ratio Factor Factor Cost Cost 4 5 Estimated Cost of Capital 6 7 Short-term debt...

AI summary The 2025 Budget outlines the estimated cost of capital for short-term and long-term debt, as well as common equity, with details on pre-tax and after-tax costs, weighted averages, and capital ratios. This information is critical for evaluating financial strategies and capital structure.

14 .1 Appendix A - WACC calc 17 1) Figures presented reflect whole numbers which may cause $1M in rounding differences on some line items. 18 2) Pre-tax equity cost excludes the income tax gross-up factor. 19 3) Average capital reflects av...

AI summary This section provides notes on the WACC calculation, indicating that rounding differences may occur due to the use of whole numbers and that the pre-tax equity cost excludes the income tax gross-up factor. The average capital is calculated as the average of year-end balances.

- 3 1 (f) - 4 Preamble: NSPI references the exemptive relief given in 2023 to participate in the 2023 - 5 Commercial Paper Market within this application. In the last WACC/AFUDC application, - 6 M11563, NSPI confirmed that it had a further...

AI summary The document discusses NSPI's participation in the Commercial Paper Market, restrictions on sales to Canadian Qualified Purchasers, and the use of Bloomberg versus Canadian Bank rates in calculating the WACC. It requests updates to a table, impact analysis, and elaboration on the improved forecast process using Bloomberg rates.