Topic/Matter Intersection

Topic:"Cost Considerations" in M12451

Matter: Nova Scotia Power Inc. - 2026 General Rate Application (GRA)
1117 passages 74 documents

Cost Considerations across all matters →

N-3Direct Evidence - General Rate Application 2 passages
Preamble p. pp. 18-30
- With respect to the fuel-related GRA amounts and Actual Adjustment / Balance Adjustment - (AA/BA) riders and rates, the FAM will continue to operate. - Nova Scotia Power is seeking approval of new Base Cost of Fuel (BCF) amounts for each...

AI summary Nova Scotia Power is seeking approval for new Base Cost of Fuel (BCF) amounts for 2026 and 2027 based on the forecast in FOR-07. The Fuel Adjustment Mechanism (FAM) will continue to operate, with its Actual Adjustment / Balance Adjustment (AA/BA) riders and rates remaining in place.

Overview p. pp. 18-73
Overview - Planning for Nova Scotia's electricity system requires an estimation of how much power - customers will consume over the course of a year, and load affects both planning and operational - costs: - Total electricity usage determi...

AI summary This section outlines the importance of load forecasting in planning Nova Scotia's electricity system, noting that total consumption and peak demand influence both variable and fixed costs. NS Power updates its load forecast annually, and the 2026-2027 forecast was developed using an updated methodology, as detailed in SR-02 and Figure 4-1.

N-42026-2027 GRA PR 01-03 - Proposed Rates (Tariffs) 2 passages
Baseline Data p. p. 220
Baseline Data NS Power Customers Customers Meter Reads Opt-out Customers Hours per Year 1,820 Less: Vacation (3 weeks + 11.5 days Stat) 186 Less: Sick Time 35 Less: Safety training/ Admin 160 Estimated Available Hours 1,440 MR2 Supervisor...

AI summary The document provides baseline data on meter reading costs, customer statistics, and opt-out percentages for NS Power. It includes details on estimated available hours, annual O&M costs for meter supervisors and coordinators, and projected opt-out customer numbers over time.

Preamble p. p. 234
The following schedule of charges shall apply to customers requesting Load Research information. (Note: Customers must provide access to a shared phone line for data collection via automatic meter reading equipment): - a) Recovery of the C...

AI summary The document outlines the schedule of charges for Load Research information, including recovery of capital costs, setup, analysis and reporting, and specialized customer analysis, each with a 25% markup on actual costs incurred by the company.

N-52026-2027 GRA Appendix 1-6 - Redacted 5 passages
2026-2027 GRA Direct Evidence Appendix 1A Page 2 of 7 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 25
2026-2027 GRA Direct Evidence Appendix 1A Page 2 of 7 REDACTED (CONFIDENTIAL INFORMATION REMOVED) OP-01 NS Power / Emera Regulated Annual Reports Attachment 1 – NS Power 2024 Q3 MD&A Attachment 2 – NS Power 2024 Financial Statements Attach...

AI summary This document lists various attachments related to financial and operational data for NS Power and Emera, including MD&A reports, financial statements, and breakdowns of expenses, revenue requirements, capital costs, and rate bases for the 2026-2027 period. Some attachments are partially confidential.

2026-2027 GRA Direct Evidence Appendix 3A Page 12 of 14 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 25
2026-2027 GRA Direct Evidence Appendix 3A Page 12 of 14 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Short-Term Debt, Cost Pre-tax WACC Rate, Pre-tax Cost Simple 12-Month Simple 12- Avg. Avg. Avg. Month (Current) (Current) Avg. 2026 4.14% 3...

AI summary This document provides financial data for 2026 and 2027, including short-term debt costs and weighted average cost of capital (WACC) rates. The data includes pre-tax figures for both years, highlighting changes in average costs over time.

Inclusion of ash haulage costs for solid fuel (section 3.2.2) and heavy fuel oil (section 3.2.3) p. p. 164
Inclusion of ash haulage costs for solid fuel (section 3.2.2) and heavy fuel oil (section 3.2.3) Ash haulage costs, under the current POA, are only associated with limestone (section 3.2.7) but other plants that consume solid fuel and heav...

AI summary NS Power is requesting approval to include ash haulage costs for solid fuel and heavy fuel oil in the Fuel Adjustment Mechanism (FAM), citing that these costs are allowable under section 3.2.7 and fit the description of allowable fuel costs. The proposed addition would apply to sections 3.2.2 and 3.2.3, with an estimated annual cost of $1.7M for 2026 and 2027.

2026-2027 GRA Direct Evidence Appendix 6B (Redline) Page 15 of 35 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 201
2026-2027 GRA Direct Evidence Appendix 6B (Redline) Page 15 of 35 REDACTED (CONFIDENTIAL INFORMATION REMOVED) - NS Power labour and associated costs for Equipment Operators, Mechanics, Supervisors related to fuel handling and Lab Techs rel...

AI summary The document outlines various costs related to fuel handling and inventory management, including labor, measurement, materials, repair, and heavy equipment operating costs. These costs are categorized under solid fuel and are recorded in specific accounts within NS Power's Chart of Accounts.

Preamble p. p. 201
- Biomass Commodity Consumed - Maintenance and Operating expenses for Fuel Handling (allocation between OM&G and FAM) - Third Party Quality Testing and Inventory Measurement Costs (e.g. surveys, density testing, sampling) - Storage fees (e...

AI summary The text outlines various costs associated with biomass commodity consumption, including fuel handling, transportation, environmental compliance, and ash hauling. It specifies that expenses up to the bin collecting conveyor at the biomass plant are classified as FAM expenses and notes how these costs are recorded in NS Power's Chart of Accounts.

N-62026-2027 GRA Appendix 7A-E - Redacted 18 passages
1.2 Inflationary Increases p. p. 5
1.2 Inflationary Increases NS Power's 2023-2024 GRA budget was prepared in 2021. At the time of that forecast, the Company assumed an inflationary rate of 2.7 percent in 2022, 1.9 percent in 2023 and 2.0 percent for 2024 when forecasting t...

AI summary NS Power's 2023-2024 GRA budget assumed lower inflation rates than actual, with the Bank of Canada reporting a 4.6% annual inflation increase from 2021 to 2024. Actual material and contract expenses exceeded the forecasted inflation rates.

In the 2026-2027 GRA test period forecast, NS Power has assumed the following forecast inflationary rates for labour and non-labour operating expenses: p. p. 5
In the 2026-2027 GRA test period forecast, NS Power has assumed the following forecast inflationary rates for labour and non-labour operating expenses: 2026 2027 Labour 3.25% 3.00% Non-Labour 2.00% 2.00% 1.3 Power Production

AI summary NS Power has forecasted inflationary rates for labour and non-labour operating expenses during the 2026-2027 GRA test period. Labour costs are projected to increase by 3.25% in 2026 and 3.00% in 2027, while non-labour costs are expected to rise by 2.00% in both years.

1.5.8 Storm p. p. 17
1.5.8 Storm The 2024 OM&G storm restoration expense included in the 2023-2024 GRA Compliance Filing was $17.7 million, but the Company's actual 2024 storm restoration expense was $12.7 million. These costs are included in the total Energy...

AI summary The document discusses the 2024 storm restoration expenses, noting a discrepancy between the reported and actual costs. It outlines how the 2026-2027 GRA forecast was calculated using historical data, adjusted for inflation and AMI implementation, while excluding post-Tropical Storm Fiona costs which were deferred as a regulatory asset.

REDACTED Appendix 7A – OM&G Costs by Group p. p. 17
REDACTED Appendix 7A – OM&G Costs by Group ($ million) 2020 2021 2022 2023 2024 2020-2024 Average Level 1-2 9.5 7.2 6.2 12.0 9.0 8.8 Level 3-4 9.1 1.4 14.9 32.1 3.7 12.2 Post Tropical Storm Lee - _ - (14.2) (0.3) (2.9) Adjusted Level 3-4 9...

AI summary The document presents OM&G costs by group from 2020 to 2024, showing fluctuations in Level 1-2 and Level 3-4 expenses, including the impact of Post Tropical Storm Lee. Adjusted Level 3-4 costs and total expenses are outlined, with future forecasts for 2026 and 2027. NS Power is applying for a permanent storm rider to recover costs exceeding those included in rates.

1.8 Corporate Groups p. p. 27
1.8 Corporate Groups Corporate Group OM&G expense has increased from $95.9 million in the restated 2024 GRA Compliance Budget to $107.6 million in 2024 actuals. The primary drivers of the increased expense in Corporate Groups are increases...

AI summary Corporate Group OM&G expenses increased from $95.9 million in the restated 2024 GRA Compliance Budget to $107.6 million in 2024 actuals, driven by increases in Information Technology, Procurement and Security, and Regulatory Affairs, partially offset by a decrease in the Corporate Secretary and General Counsel group.

1.8.6 Facilities, Procurement and Security p. p. 30
1.8.6 Facilities, Procurement and Security Facilities, Procurement and Security OM&G expense was $17.1 million in 2024, an increase of $4.0 million from the restated 2024 GRA Compliance forecast of $13.1 million. This is primarily related...

AI summary The Facilities, Procurement and Security OM&G expense increased in 2024 due to inventory cost adjustments and higher facility maintenance costs. NS Power has discontinued assigning inventory interest expenses to the Procurement department, which will reduce 2025 expenses but increase Corporate Adjustments. Forecasted expenses are expected to rise slightly in 2026 and 2027 due to staffing and inflation.

REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026-2027 GRA Direct Evidence Appendix 7B Page 1 of 2 p. p. 30
REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026-2027 GRA Direct Evidence Appendix 7B Page 1 of 2 2024 Compliance 2024 Compliance Restated Customer Solutions _ 4,95 53 4,953 TOTAL CUSTOMER EXPERIENCE AND INNOVATION 25,991 1,139 1,485 1,954...

AI summary The document presents a compliance table related to the 2026-2027 GRA, showing financial figures for customer solutions, total customer experience and innovation, corporate adjustments, pension, and total regulated operating costs, with values for 2024 compliance and restated figures.

Redacted p. p. 30
Redacted 2026 Forecast 2026 Forecast 202/ Forecast TOTAL CUSTOMER EXPERIENCE & INNOVATION 25,998 6,145 32,144 36,996 41,014 42,290 8,870 4,018 1,276 CORPORATE ADJUSTMENTS (46,435) - (46,435) (56,458) (63,897) (68,215) (17,461) (7,439) (4,3...

AI summary The document presents a financial table outlining forecasted and actual costs related to customer experience, corporate adjustments, pensions, and regulated operating costs for various years, including 2024, 2025, and 2026. It includes figures for labour costs and their variations across different periods.

(in Thousands of $) p. p. 30
(in Thousands of $) 530050 Regular Labour 530200 Overtime Labour 530250 Sales Comm.Salaries 530300 Term Labour 530350 Loaned Op.Labour 530360 Borrowed Operating Labour 530400 Loaned Cap. Labour 530550 Labour Clearing Total Labour 530900 Of...

AI summary The text presents a detailed breakdown of labor and operational expenses across various categories, including regular and overtime labor, office supplies, travel, materials, and contracts. It provides actual figures for 2024, budget estimates for 2025, and forecasts for 2026 and 2027, highlighting compliance and actuals data across different years.

Power Production Head Office p. p. 30
pt/Info.Software 194 187 177 180 (17) (10) 536100 Rental/Mtnce equipment/software - - - - - - 532850 Appl. Software - - - - - - - - - - - - 532900 Comp.Hrdwr & Op.Sftwr 532950 Directors' Fees & Exp - - - - - - 533100 Ext. Legal & Audit 42...

AI summary The text presents financial data related to various categories such as rental/maintenance equipment, software, legal and audit expenses, shareholder meetings, advertising, meals and entertainment, employee benefits, insurance, energy use, rent, cost recovery, training, personal equipment, severance costs, commissions, write-offs, recoveries, other goods and services, and relocation expenses, with figures for 2024 and forecasts for 2026 and 2027.

Tufts Cove & Combustion Turbines p. p. 30
Tufts Cove & Combustion Turbines (in Thousands of $) 2024 2026 2026 Forecast vs 2024 2026 Forecast vs 2024 2026 Forecast vs 2025 2027 Forecast vs 2026 Responsibility Area Power Production Tufts Cove and Combustion Turbines Overview Tufts C...

AI summary The document provides a financial overview of the Tufts Cove Generating Station and combustion turbines, detailing costs associated with engineering, maintenance, and operations across various years, including comparisons between 2024 actuals, 2025 budgets, and 2026 forecasts. It highlights forecasted changes and variances over multiple years.

Biomass p. p. 30
Biomass (in Thousands of $) 536050 Data Communication Circuits - - - - - - - 532250 Leasing - - - - - - - 532450 Corporate Filing Fees - - - - - - - 532500 Consulting 3 14 - - (3) (14) - 532600 Membership Dues 2 - 2 2 0 2 0 532600 Lubrican...

AI summary The document presents a table of various expenses and costs associated with biomass-related activities, including consulting fees, fleet fuel, advertising, and employee benefits, with figures provided in thousands of dollars.

Energy Delivery Services p. p. 30
Energy Delivery Services 2024 2026 Forecast 2026 Forecast 2026 Forecast 2027 Forecast 535950 Royalties/Easements/Appraisals 11 (0) - - (11) 0 - 532100 Telephones 144 156 165 169 21 9 4 532800 Internet Communications - 23 265 402 265 243 13...

AI summary The document presents a detailed breakdown of various costs and expenses related to energy delivery services for the years 2024 and 2026, including items such as royalties, telephones, internet communications, leasing, corporate filing fees, consulting, lubricants, fleet fuel, software, legal and audit expenses, advertising, employee benefits, insurance, repairs and maintenance, and energy use.

Reliability Implementation p. p. 30
Reliability Implementation 2024 2026 Forecast 2026 Forecast 2026 Forecast 2027 Forecast 536050 Data Communication Circuits - - - - - - - 532250 Leasing - - - - - - - 532450 Corporate Filing Fees - - - - - - - 532500 Consulting 2 404 367 37...

AI summary The table outlines various operational and maintenance costs across multiple years, including consulting fees, membership dues, fleet fuel, and software subscriptions. It provides a forecast of expenses from 2024 to 2027, highlighting fluctuations in certain categories such as consulting and fleet fuel.

Transmission & Distribution Contractor Management p. p. 30
Transmission & Distribution Contractor Management 2024 Compliance 2026 Forecast vs 2024 2026 Forecast vs 2024 2026 Forecast vs 2025 2027 Forecast vs 2026 532100 Telephones 47 41 34 35 (13) (7) 536050 Data Communication Circuits - - - - - -...

AI summary The document provides a detailed breakdown of compliance and forecast data for various categories under Transmission & Distribution Contractor Management, including expenses related to telephones, data communication, leasing, consulting, fleet fuel, and software. The data compares 2024 compliance figures with forecasts for 2026 and 2027.

Storm p. p. 30
Storm /in The nds ۰f ¢ 534650 Training & Development - 1 - - - (1) 534750 Personal Equipment 30 4 39 40 9 35 1 530850 Severance Costs - - - - - - 534800 Commissions - - - - - - 534850 Write-offs - - - - - - 536550 Recoveries - - - - - - -...

AI summary The text presents a table detailing various costs and recoveries related to storm response, including training, personal equipment, and customer recovery. It also includes budget forecasts and actual figures for the Energy Delivery responsibility area in Nova Scotia.

Administration p. p. 30
Administration 530050 Regular Labour 530200 Overtime Labour Compliance Restated 2024 Actual vs 2024 vs 2024 vs 2025 vs 2026 Energy Delivery Ad dministration includes the costs associated with the Senior Management and Finance support of th...

AI summary The table outlines various administrative costs and changes related to Energy Delivery, including increases in contracts due to the Contractor Safety Summit, external legal and audit expenses, and decreases in Other Goods and Services and Travel Expense due to the GRA Settlement Agreement and mutual aid storm response expenses.

Customer Solutions p. p. 30
Customer Solutions 2024 Compliance 2026 Forecast vs 2024 2026 Forecast vs 2024 2026 Forecast vs 2025 2027 Forecast vs 2026 535950 Royalties/Easements/Appraisals - - - - - - 532100 Telephones 29 20 29 30 0 10 1 536050 Data Communication Cir...

AI summary The text presents a table with various expenses categorized under 'Customer Solutions' for the years 2024 and 2026, showing actual costs and forecasts. It includes line items such as telephone costs, consulting fees, advertising, and fleet fuel, among others, with comparisons between years.

N-72026-2027 GRA Appendix 8A-G -Depreciation Study - Redacted 83 passages
Section 118
REDACTED (CONFIDENTIAL INFORMATION REMOVED) 340.99 OTHER PRODUCTION PLANT OTHER PRODUCTION - GAS TURBINES BURNSIDE 12-2049 75 - S0.5 a (10) 43,645,266 14,071,208 33,938,585 1,440,687 3.30 23.6 TUSKET 12-2049 75 - S0.5 a (11) 17,461,600 6,8...

AI summary The text provides financial and operational data for gas turbine production plants at Burnsidge, Tuskett, and Victoria Junction, including details on costs, revenues, and efficiency metrics.

Section 124
AD 12-2035 90 - S0.5 a (2) 24,785,573 13,165,184 12,116,101 1,031,094 4.16 11.8 TOTAL OTHER PRODUCTION - WIND 314,100,795 141,206,954 178,996,752 13,208,959 4.21 TOTAL OTHER PRODUCTION PLANT 492,589,726 184,208,655 336,433,567 22,666,476 4...

AI summary The document presents financial data related to production costs, including figures for total other production from wind and other production plants, along with various financial metrics such as totals, percentages, and other numerical indicators.

Section 131
0.4 367.00 UNDERGROUND CONDUCTORS AND DEVICES 42 - R3 (25) 75,012,364 33,657,017 60,108,439 2,408,318 3.21 25.0 368.00 LINE TRANSFORMERS 35 - R1 (25) 555,455,934 237,671,905 456,648,012 23,881,410 4.30 19.1 369.00 SERVICES 48 - S2.5 (65) 1...

AI summary The text presents financial data for various categories including underground conductors, line transformers, services, meters, and street lighting, with details on costs, revenues, and other metrics.

Section 309
370,570 5,108,660 5,108,660 (179,498,344) (3) INTERNATIONAL COAL PIER 2029 17,885,000 19,746,485 19,746,485 (11,479,941) (172) TOTAL STEAM PRODUCTION PLANT 208,443,570 288,335,282 190,084,838 (2,123,890,000) (9) HYDRO PRODUCTION PLANT AVON...

AI summary The text presents financial data and figures related to various energy production facilities, including international coal pier, total steam production plant, and hydro production plants such as Avon, Bear River, Black River, and Dickie Brook. The data includes amounts related to costs and revenues for different years.

Section 392
COST OF GROSS NET REGULAR REMOVAL SALVAGE SALVAGE YEAR RETIREMENTS AMOUNT PCT AMOUNT PCT AMOUNT PCT 1993 299,338 0 142 0 142 0 1994 2,461 0 0 0 1995 32,151 25,848 80 14,439 45 11,409- 35- 1996 27,997 52,984 189 11,179 40 41,805- 149- 1997...

AI summary The text provides a table detailing the cost of retirements, gross amounts, net amounts, and salvage values over various years, from 1993 to 2010. It includes data on percentages and specific figures for each year, highlighting the financial aspects of retirements and salvage values.

Section 417
COST OF GROSS NET REGULAR REMOVAL SALVAGE SALVAGE YEAR RETIREMENTS AMOUNT PCT AMOUNT PCT AMOUNT PCT THREE-YEAR MOVING AVERAGES 99-01 682,778 732 0 0 732- 0 00-02 671,611 0 0 0 01-03 590,023 0 0 0 02-04 513,236 705 0 0 705- 0 03-05 266,092...

AI summary The document presents a table with data on cost of retirements, gross amounts, net amounts, and salvage values over a period of years, showing trends and percentages related to asset management and financial considerations.

Section 790
ments.  Potential sediment management costs based on known or suspected contamination and the nature of the sediments in the various reservoirs. A comparison of the results of the 2018 and 2024 estimates is provided in Table ES-1. Table E...

AI summary The text compares 2018 and 2024 estimates for system decommissioning costs, showing increases in infrastructure removal, environmental, and sediment management costs, with a notable exception of no sediment management required at Wreck Cove.

Section 792
y “Hydro System Decommissioning Cost Estimate for Nova Scotia Power Inc’s Control Structures” [1] resulted in the generation of cost estimates which included:  Infrastructure removal costs, including powerhouse, substation and equipment r...

AI summary The document discusses the decommissioning cost estimate for Nova Scotia Power Inc.'s hydroelectric facilities, including infrastructure removal, environmental costs, and sediment management. An updated estimate was conducted in 2024, building on the 2018 study by Hatch.

Section 805
 Financing costs.  Costs driven by revisions/changes to laws and regulations.  Soil and sediment decontamination and disposal costs.  Compensation to landowners related to depreciated land values and altered uses.  Lost or altered rec...

AI summary The text outlines various costs associated with a decommissioning project, including financing, legal changes, decontamination, landowner compensation, and grid-related work. It also discusses the use of Producer Price Indexes (PPIs) to calculate escalation factors for project costs, with specific weightings assigned to workforce, construction equipment, fuel, and materials.

Section 806
H374195-0000-21A-249-0001, Rev. 0 Page 5 © Hatch 2024 All rights reserved, including all rights relating to the use of this document or its contents. REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026-2027 GRA Direct Evidence Appendix 8B Pag...

AI summary The document discusses the calculation of composed escalation factors using the Producer Price Indexes (PPIS) for the year 2024, based on a formula that considers the relative weighting of each component. It also outlines the index series used for decommissioning projects in Canada, including workforce and construction equipment.

Section 807
commissioning projects in Canada: 1. Workforce: Average hourly rate for construction 2. Construction equipment: Equipment and machinery 3. Fuel: Annual average retail prices for gasoline and fuel oil in cents per liter 4. Structural compon...

AI summary The document discusses commissioning projects in Canada, focusing on factors such as workforce rates, construction equipment, fuel prices, structural components, and concrete costs, with detailed data provided in Appendix A and Figure 3-1. It also includes a hydroplant asset study update by Nova Scotia Power Inc. regarding hydro system decommissioning.

Section 808
3.50 3.00 Escalation Factor 2.50 2.00 1.50 1.00 0.50 1990 1995 2000 2005 2010 2015 2020 2025 Year Workforce Const. Equip. Fuel Structural components Concrete Composed factor Figure 3-1: Canadian Escalation Factors per Year Referred to 2024...

AI summary The text discusses escalation factors for decommissioning projects in the USA, including workforce, construction equipment, fuel, structural components, and concrete, with data from 1991 to 2024. It references Appendix A for detailed PPI breakdowns and Figure 3-2 for composed escalation factors.

Section 809
The resulting composed escalation factors per year, as well as the escalation factor per cost component, are shown in Figure 3-2. . H374195-0000-21A-249-0001, Rev. 0 Page 7 © Hatch 2024 All rights reserved, including all rights relating to...

AI summary The document presents a graph showing escalation factors per year and per cost component, including workforce, construction equipment, fuel, and structural components, with data referenced to 2024.

Section 820
For the Annapolis, Gaspereau, St. Margaret’s Bay and Tusket systems, Hatch had performed decommissioning estimates for environmental costs as part of other project scopes. These estimates were site specific and likely more accurate than ap...

AI summary The document discusses environmental cost estimates for decommissioning four systems (Annapolis, Gaspereau, St. Margaret’s Bay, and Tusket) based on site-specific data from a 2018 study, which were escalated to 2024 CAD using a 1.23 Canada escalation factor. Table 4-2 provides the adjusted costs for each system.

Section 821
1.23 $13,018,175 Mersey $15,500,000 1.23 $19,065,000 4.3 Sediment Management Costs Each system’s sediment classification from 2018 was checked against any new information. No information was found that conflicted with the 2018 assumptions....

AI summary The text discusses sediment management costs for various systems, noting that classifications from 2018 remain unchanged except for Wreck Cove, which was re-evaluated from 10% to 0% due to a misassignment. It also references a hydroplant asset study update by Nova Scotia Power Inc.

Section 830
The infrastructure removal, environmental, and sediment management estimated cost results are described in more detail in Sections 5.2, 5.3, and 5.4, respectively. 5.2 Infrastructure Removal Costs The updated infrastructure removal cost es...

AI summary The document details infrastructure removal costs for NSPI’s hydroelectric portfolio, noting increases due to inflation and updated data on dam removal costs. Environmental and socio-economic costs are excluded from the estimates.

Section 834
sting) or precedent (based on the environmental costing matrix). Main drivers of cost increases were inflation and new information regarding contamination. H374195-0000-21A-249-0001, Rev. 0 Page 14 © Hatch 2024 All rights reserved, includi...

AI summary The document discusses cost increases driven by inflation and new contamination information, referencing a hydroplant asset study update and a hydro system decommissioning study from December 11, 2024.

Section 842
$33,577,731 Wreck Cove $55,946,550 $131,159,862 0.0% $ 8,913,745 - 6. References [1] Hatch Ltd., "Hydro System Decommissioning Cost Estimate Final Report. Report No. H357345- 00000-200-230-0001," 2018. [2] N. Pansic, R. Austin and M. Finis...

AI summary The document outlines a hydro system decommissioning study update by Nova Scotia Power Inc. (NSPI), referencing cost estimates, sediment management, and producer price indexes. It includes citations from various reports and studies, including a 2024 email from NSP regarding the hydro study update.

Section 1005
Hydro Asset Archaeology Study consisted of background research, the creation of GIS-based models of pre-dam landscapes and archaeological potential modeling and serves as a companion to this document. In 2024, NSPI requested Boreas Heritag...

AI summary The document outlines the Hydro Asset Archaeology Study, including background research, GIS-based modeling of pre-dam landscapes, and archaeological potential modeling. In 2024, NSPI requested Boreas Heritage to update the 2018 Hydro Asset costings due to increased expenses, updated field methods, and evolving regulations.

Section 1020
evelopment or decommissioning areas included in the Asset List are clear of archaeological concerns. As a result, any changes, recommendations or requirements by CCTH may affect the final costs. There are many unknown factors that may cont...

AI summary The text discusses the potential impact of archaeological concerns on the costs of development and decommissioning projects, emphasizing the challenges in estimating costs due to unknown factors. Boreas Heritage recommends a staged approach to manage and mitigate these concerns.

Section 1114
e 2018 Hydro Asset Archaeology Program. The following recommendations and costings for the Sheet Harbour Hydro System are based on the results of that study and are summarized in Table 13. Table 13. Summary of costings for individual asset...

AI summary The text discusses the 2018 Hydro Asset Archaeology Program and provides costings for archaeological assessments at various locations in the Sheet Harbour Hydro System, including Governor Lake Dam and Governor Lake, highlighting the need for reconnaissance and monitoring due to high archaeological potential.

Section 1192
etailed Decommissioning Opinion of Probable Cost). The Detailed Opinion of Probable Cost consists of line items developed in 2010 and is consistent with the NSPI plant system Work Breakdown Structure. 2.1 Cost Categories Revised probable c...

AI summary The document outlines the methodology for estimating the probable costs of decommissioning NSPI power production sites, including the use of updated price indices and industry benchmarks, as well as the classification of estimates based on AACE guidelines.

Section 1193
2026-2027 GRA Direct Evidence Appendix 8D Page 8 of 189 NSPI Power Production Sites Remediation Study Update August 26, 2024 Table 1 AACE Estimate Classifications Level of Project Estimating Level of Accuracy Estimate Class End Usage Defin...

AI summary This document provides an update on the NSPI Power Production Sites Remediation Study and includes a table outlining AACE Estimate Classifications, detailing levels of project estimation, methodologies, and accuracy ranges.

Section 1194
50% to 100% Check Estimate Deterministic 50%: -10% to +15% or Bid/Tender 100%: -3% to +3% To determine the class of estimate required to achieve an accuracy of 25%, the level of definition for the decommissioning, demolition and remediatio...

AI summary The document discusses cost estimation for decommissioning, demolition, and remediation projects, noting a 23% escalation factor due to rising labor and material costs. It also outlines the use of Class 4 estimates and contingency rates based on site-specific conditions.

Section 1195
2026-2027 GRA Direct Evidence Appendix 8D Page 9 of 189 NSPI Power Production Sites Remediation Study Update August 26, 2024 2.5 Variation in Cost Estimates 2.5.1 Asbestos Abatement The feedback received from site operations at Trenton was...

AI summary The document discusses variations in cost estimates for the NSPI Power Production Sites Remediation Study, highlighting increased asbestos abatement costs at the Trenton site, challenges with salvage and material scrap value estimates, and the absence of detailed air monitoring data.

Section 1207
Item Description Estimated Cost July 2024 Assumptions / Notes: Code 500's ELECTRICAL: 50&51 ON SITE DISTRIBUTION LINES REMOVALS 109,360 56 ELECTRICAL POWER SYSTEMS REMOVAL 169,508 57 OlliER AUXILIARY SYSTEMS AND EQUIPMENT REMOVALS 58 ELECT...

AI summary The document outlines various costs associated with the removal and decommissioning of electrical, water, and building systems, including on-site distribution lines, electrical power systems, water systems, and building ventilation. It also includes administrative expenses not included in the demolition phase.

Section 1214
,544 900's SCHEDULES AND GENERAL DRAWINGS: 90 DRAWINGS 44,455 SUB-TOTAL (excluding contingency): 22,092,248 CONTINGENCY ALLOWANCE FOR MARGIN OF ESTIMATING ERROR: 25% 5,523,062 GRAND TOTAL: 27,615,310 NOTE: The Demolition Estimate is based...

AI summary The document provides a demolition and environmental remediation estimate with a total cost of $27,615,310, including a 25% contingency allowance. The estimate is based on previous site visits, limited drawings, past experience, and consultation with a contractor, without actual quotes or field data.

Section 1226
4 900's SCHEDULES AND GENERAL DRAWINGS: 90 DRAWINGS $ 44,455 SUB-TOTAL (excluding contingency): $ 31,365,613 CONTINGENCY ALLOWANCE FOR MARGIN OF ESTIMATING ERROR: 25% $ 7,841,403 GRAND TOTAL: $ 39,207,016 NOTE: The Demolition Estimate is b...

AI summary The document provides an estimate for demolition and environmental remediation costs, including a 25% contingency allowance. The estimate is based on previous site visits, limited drawings, past experience, and consultation with a contractor, but no actual quotes were obtained. Environmental remediation costs are based on site size, brownfield development, and potential contamination levels.

Section 1232
85 ADMINISTRATION EXPENSES $ 1,458,134 900's SCHEDULES AND GENERAL DRAWINGS: 90 DRAWINGS $ 54,680 SUB-TOTAL (excluding contingency): $ 23,136,602 CONTINGENCY ALLOWANCE FOR MARGIN OF ESTIMATING ERROR: 25% $ 5,784,150 GRAND TOTAL: $ 28,920,7...

AI summary The document provides an estimate for administration expenses and includes a contingency allowance. The demolition estimate is based on limited data and past experience, while environmental remediation costs are estimated based on site size and potential contamination, with a 25% contingency factor applied.

Section 1234
Y FOR FINANCIAL DEPRECIATION COST STUDY 2024 LOCATION: BURNSIDE GAS TURBINE SITE DATE: Julv2024 Account Estimated Cost: Item Description Assumptions / Notes: Code July 2024 1.23 Factor for Up-dating from July 2010 to July 2024 100"s SllE R...

AI summary The document outlines estimated costs for financial depreciation related to site remediation and building structures at the Burnsides Gas Turbine Site in July 2024. It includes costs for site remediation issues, site access removals, and site services removals, along with an updating factor from July 2010 to July 2024.

Section 1237
$ - 77 Plant Operating Equipment Removals $ - 800's GENERAL AND UNDISTRIBUlED: 82 Field Facilities and Decommissioning $ 9,113 85 Administration Evftllnses $ 296 627 ()stantec. \\ca0213-ppfss01\work_graup\1214\aclive\121418266\05_report_de...

AI summary The document presents a summary of site decommissioning estimates for the Financial Depreciation Cost Study 2024, focusing on the Burnsides Gas Turbine Site. It includes line items for plant operating equipment removals, field facilities and decommissioning, and administrative expenses.

Section 1266
DATE: Jul-24 Account Item Description Estimated Cost July 2024 Assumptions / Notes: Code 900's SCHEDULES AND GENERAL DRAWINGS: 90 DRAWINGS $ 31,699 SUB-TOTAL (excluding contingency): $ 6,523,061 CONTINGENCY ALLOWANCE FOR MARGIN OF ESTIMATI...

AI summary The document provides an estimate for demolition and environmental remediation costs, including a contingency allowance of 25% due to limited data and reliance on past experience and consultations with contractors.

Section 1272
,232 85 ADMINISTRATION EXPENSES $ 78,923 900's SCHEDULES AND GENERAL DRAWINGS: 90 DRAWINGS $ 24,600 SUB-TOTAL (excluding contingency): $ 4,325,920 CONTINGENCY ALLOWANCE FOR MARGIN OF ESTIMATING ERROR: 25% $ 1,081,480 GRAND TOTAL: $ 5,407,4...

AI summary The text presents an estimate for demolition and environmental remediation costs, including a contingency allowance of 25% due to limited data and reliance on previous experience and consultations. The total estimated cost is $5,407,400.

Section 1278
83 GRAND TOTAL: $ 5,939,913 NOTE: The Demolition Estimate is based on previous site visit, limited drawings, past experience and consultation \\4th an experienced contractor, no actual qoutes to complete the Demolition v.ork were obtained....

AI summary The text provides a demolition estimate for a site, noting that it is based on previous site visits, limited drawings, and consultations with an experienced contractor, without actual quotes. Environmental remediation costs are estimated based on site size and contamination potential. A 25% contingency factor is included, and scrap value for rail cars is not considered.

Section 1283
$ 58 ELECTRICAL CONTROL AND COMMUNICATION $ 700"8 COMMON SERVICES: 71 WATER SYSTEMS REMOVAL $ 73 BUILDING VENTILATION AND HEATING REMOVALS $ 75 COMPRESSED GAS SERVICES REMOVAL (EXCLUDING FUEL GAS) $ 77 PLANT OPERATING EQUIPMENT REMOVALS $...

AI summary The document outlines various categories of costs associated with electrical control and communication, water systems removal, building ventilation and heating removals, compressed gas services removal, plant operating equipment removals, field facilities and decommissioning, administration expenses, and schedules and general drawings, with specific monetary figures listed for some items.

Section 1287
$ 52,112 82 ADMINISTRATION EXPENSES $ 156,336 SUB-TOTAL (EXCLUDING contingency): $ 3,682,576 CONTINGENCY ALLOWANCE FOR MARGIN OF ESTIMATING ERROR: 20% $ 736,515 SUB-TOTAL (INCLUDING contingency): $ 4,419,091 900's EQUIPMENT SALVAGE AND REC...

AI summary The text presents a financial summary with line items such as administration expenses and equipment salvage and recovery, including a contingency allowance. It also references a redacted document related to a 2026-2027 GRA Direct Evidence Appendix.

Section 1311
aoolv inflation factor. Removal and Disposal of Materials and Residues 1,100,000 Assume $200,000 for chemical residue removals from piping systems and disposal, and $800,000 for cleaning and removal of liquids in caustic tanks, water treat...

AI summary The text discusses the costs associated with the removal and disposal of materials and residues at the Lingan Generating site, including chemical residue removal from piping systems, cleaning and removal of liquids in caustic tanks, and the decommissioning of a large HFO tank. The estimate includes an increase in costs compared to previous years due to higher MW capacity and associated infrastructure.

Section 1320
diation. Costs include presentation of final reports, Record of Site Condition, legal costs, etc. No sianificant chanaes to the 2020 estimate· therefore aoolv inflation factor. Long Term Monitoring 451,800 Cost for semi-annual groundwater...

AI summary The text outlines costs related to long-term monitoring and liability for the LGS and LAMS sites, including groundwater monitoring, reporting, and communication regarding impacts. The estimates are based on updated unit rates from 2024 and assume monitoring over 5 and 10 years respectively.

Section 1347
- •-:�:.. COST STUDY ?n?A LOCATION: POINT ACONI GENERATING STATION DATE: 1-Jul-24 Account Estimated Cost: Item Description Assumptions/ Notes:2024 Code July 2024 100's SITE REMEDIATION ISSUES: 12 SITE REMEDIATION ISSUES 11,989,017 120 Gene...

AI summary The document outlines estimated costs for site remediation issues at the Point Aconi Generating Station, including $11,989,017 for site remediation issues and $232,360 for general preparation activities such as planning, permitting, and coordination with regulators and NSPI. An inflation factor is applied to the 2020 estimate.

Section 1363
No significant change from 2020 estimate; therefore, apply inflation factor. Removal and Disposal of Materials and Residues 246,000 Costs associated with chemical residue removals from piping systems and disposal, and for cleaning and remo...

AI summary The text discusses the removal and disposal of materials and residues, including chemical residue removals from piping systems and disposal costs, as well as cleaning and removal of liquids in caustic tanks, water treatment systems, and fuel systems.

Section 1365
No significant change to 2020 estimate; therefore, apply inflation factor. (j Stantec \\ca0213 ppfss01\work_group\1214\active\121418266\05_report_deliverable\draft_doc\Revised_Draft\Site2_2024 Estimate-Point Aconi Generating Site.xis 2 of...

AI summary The text discusses an estimate for the Point Aconi Generating Site, referencing a cost study and applying an inflation factor to a 2020 estimate. It is part of a larger document related to a regulatory proceeding.

Section 1370
Costs include presentation of final reports, Record of Site Condition, legal costs, etc. No sicnificant chance from 2020 estimate· therefore aoolv an inflation factor. Long Term Monitoring 540,000 Cost for semi-annual groundwater monitorin...

AI summary The text outlines the costs associated with long-term monitoring and liability assessments, including legal costs, groundwater monitoring at specific sites, and communication related to monitoring results. Inflation factors and updated unit rates from 2024 are applied to 2020 estimates.

Section 1373
- •-:�:.. COST STUDY ?n?A LOCATION: POINT ACONI GENERATING STATION DATE: 1-Jul-24 Account Estimated Cost: Item Description Assumptions/ Notes:2024 Code July 2024 15 SITE SERVICES REMOVALS 191,212

AI summary The document provides an estimate of $191,212 for site services removals at the Point Aconi Generating Station as of July 2024.

Section 1381
275 Dyke/ Containment Berm removal 14,514 Dyke/ Containment Berm removal around fuel tanks 300's BOILERS AND AUXILIARIES: 33 BOILER PLANT - REMOVALS 1,188,380 330 General 331 Boiler 1,093,601 332 Draft Plant (including Air & Gas and Magnes...

AI summary The document outlines costs associated with the removal of dykes and containment berms around fuel tanks, as well as various components of boiler plants, including boilers, draft plants, precipitators, and auxiliary systems. It provides a detailed breakdown of expenses related to these removal and replacement activities.

Section 1390
LOCATION: POINT ACONI GENERATING STATION DATE: 1-Jul-24 Account Estimated Cost: Item Description Assumptions/ Notes:2024 Code July 2024 SOO's ELECTRICAL: 50&51 ON SITE DISTRIBUTION LINES REMOVALS 72,907 504 Supporting Structures 505 Framin...

AI summary The document outlines the estimated costs for the removal of electrical infrastructure at the Point Aconi Generating Station, including on-site distribution lines and electrical power systems, with specific line items and notes on equipment and assumptions.

Section 1391
no PCB transformers onsite (equipment all certified) 56 ELECTRICAL POWER SYSTEMS REMOVAL 127,587 560 General -Electrical (including Junction and Terminal Boxes) 54,680 561 Medium Voltage Systems (4 kV to 15 kV) 18,227 562 Low Voltage Syste...

AI summary The text outlines the costs associated with the removal of various electrical power systems and auxiliary equipment, including medium voltage systems, low voltage systems, and control cable systems, with specific line items and amounts provided.

Section 1397
LOCATION: POINT ACONI GENERATING STATION DATE: 1-Jul-24 Account Estimated Cost: Item Description Assumptions/ Notes:2024 Code July 2024 S00's GENERAL AND ADMINISTRATION: 82 FIELD FACILITIES AND DECOMMISSIONING 127,587 825 Demolition Contra...

AI summary The document outlines estimated costs for general and administration expenses at the Point Aconi Generating Station in July 2024, including demolition, environmental engineering, and field supervision costs, with specific line items and assumptions provided.

Section 1412
No significant change since 2020 estimate; therefore, apply inflation factor. 0 Stantec \\ca0213-ppfss01\work_group\1214\active\121418266\05_report_deliverable\draft_doc\Revised_Draft\Site5_2024 Estimate-Tufts Cove Generating Station - R1...

AI summary The text indicates that there has been no significant change since the 2020 estimate, and an inflation factor is being applied. It references a cost study for Tufts Cove Thermal Generating Station.

Section 1415
sume on-site water treatment system can be used during excavation for water control. The cost to remediate sediment impacts have not been induded as a previous investigation conduded that sediments in the area of the site are not expected...

AI summary The text discusses remediation measures for a site, including on-site water treatment systems and fill materials, seeding, fencing, and grading. It notes that sediment remediation is not expected due to background concentrations in Halifax Harbour and applies an inflation factor to cost estimates from previous years.

Section 1416
d. No significant change since 2020 estimate; therefore, apply inflation factor. In-Program Contaminant Monitoring 364,534 Environmental consulting, site coordination/supervision, Project management issues, soil and water sampling during e...

AI summary The text discusses the costs associated with various phases of a decommissioning project, including in-program contaminant monitoring, phase 6 activities, and miscellaneous considerations. It notes that estimates have not changed significantly since 2020 and suggests applying an inflation factor.

Section 1433
.TION COST STUDY ?n?A LOCATION: TUFT'S COVE THERMAL GENERATING STATION DATE: Jul-24 Account Item Description Assumptions/ Notes:2024 Code 36 BOILER STEAM AND WATER SYSTEMS REMOVALS 346,307 360 General 363 Boiler Vents, Drains and Slowdown...

AI summary The document presents a cost study related to the removal of boiler steam and water systems at the Tufts Cove Thermal Generating Station, with specific line items and associated costs listed for various components of the system.

Section 1448
2026-2027 GRA Direct Evidence Appendix 8D Page 104 of 189 SITE ;- - - ·- 11\JINt:: �;:-••••-i; ,. �"-IEETS:nD �111.1 A.11.lr'IAI -,_ :IATION COST STUDY ?n?A LOCATION: BURNSIDE GENERATING STATION (COMBUSTION TURBINE) DATE: July 2024 Estimat...

AI summary This document is part of a cost study related to site remediation issues at the Burnsides Generating Station, dated July 2024. It includes an estimated cost of $1,145,315 for site remediation, with a factor for updating costs from July 2020 to 2024.

Section 1454
sampling for PHCs, estimate indudes reporting and coordination with regulators. Used same methodoloav as 2020 but with uodated 2024 unit rates. Liability 127,587 Potential impacts in the wetland north of the site. No sionificant chanoe sin...

AI summary The text provides estimates for liability and future land use controls related to a site in Burnside, using updated 2024 unit rates and applying an inflation factor due to no significant changes since 2020. The document is part of a revised draft for a cost study.

Section 1470
584 Relaying, Metering, Control and Recording 585 Data Acquisition and Annunciator Systems (When not part of DCS System 341) 586 Time Standards () Stantec \\Ca0213-ppfss01\work_group\1214\active\121418266\05_report_deliverable\draft_doc\Re...

AI summary The document contains a cost study for the Bumside Generating Station, focusing on estimated costs for common services in July 2024. It includes account codes and item descriptions, with assumptions and notes for the estimates.

Section 1502
·- SITE -,;::,,- - :�lnNINI':: ;::_:::;.T;,_:.,TE WO- . i:n � CIIJAl.lt'IAI -, .. _ :1.1\TION COST STUDY ?n?.t TUFTS COVE LM6000 Units (2) Plus WHR Boiler and LOCATION: Steam Turbine Generator DATE: Julv 2024 Account Estimated Cost: Item D...

AI summary The document outlines the removal costs for electrical power systems and auxiliary systems at a site in Tufts Cove, including details on various voltage systems and equipment. The estimated cost for auxiliary systems and equipment removal is listed as $2,460.

Section 1506
2026-2027 GRA Direct Evidence Appendix 8D Page 119 of 189 ·- . i:n � CIIJAl.lt'IAI -, .. _ :1.1\TION COST STUDY ?n?.t SITE -,;::,,- - :�lnNINI':: ;::_:::;.T;,_:.,TE WO- TUFTS COVE LM6000 Units (2) Plus WHR Boiler and LOCATION: Steam Turbin...

AI summary This document provides a cost study for the removal of compressed gas services, excluding fuel gas, at the Tufts Cove LM6000 Units (2) Plus WHR Boiler and Steam Turbine Generator site as of July 2024. The estimated cost for this service is $4,354.

Section 1509
STUDY ?n?.t LOCATION: TUSKET GENERATING STATION (COMBUSTION TURBINE) DATE: 7/15/224 Account Estimated Cost: July Item Description Assumptions/ Notes: 2024 Code 2024 1.23 Factor for Up-dating from July 2020 to July 2024 1DO's SITE REMEDIATI...

AI summary The text outlines a site remediation issue at the Tusket Generating Station, with an estimated cost of $716,490 for the year 2024. The cost includes an updating factor of 1.23 from July 2020 to July 2024.

Section 1518
2026-2027 GRA Direct Evidence Appendix 8D Page 121 of 189 SITE •- - �"',lnNINt: · •,TE wn - 1 �nR Clt.lAt.lt"IAI • :lATION COST STUDY ?n?.t LOCATION: TUSKET GENERATING STATION (COMBUSTION TURBINE) DATE: 7/15/224 Account Estimated Cost: Jul...

AI summary This document is a page from a cost study related to the Tuskett Generating Station, outlining site access and services removal costs for the year 2024. It includes estimated costs and assumptions for various site-related removal activities.

Section 1537
,925 828 Decommissioning Costs 85 ADMINISTRATION EXPENSES 205,199 850 Demolition Studies covered above 851 Consultant Service 29,028 852 Field Supervision 145,140 Includes trailers trucks etc. 853 Head Office Engineering - Salaries and Exp...

AI summary The text outlines various expenses related to decommissioning and administration, including consultant services, field supervision, and engineering costs, as well as final site drawings. These costs are associated with NSPI's involvement in the project.

Section 1543
n of Decommissioning and Clean-up Plans 7,925 One UST removal and two oil/water separator removals. No significant change since 2020; therefore, apply inflation factor.

AI summary The text discusses the costs associated with decommissioning and clean-up plans, including the removal of one underground storage tank and two oil/water separators. It notes that there has been no significant change in costs since 2020 and suggests applying an inflation factor.

Section 1547
s. Includes reporting and coordination with regulators. Used same methodology as 2020 but with updated 2024 unit rates. Liabilitv 27 060 No sianificant chanae since 2020· therefore aoolv inflation factor. Future Controls of Land Use 27 060...

AI summary The text outlines liability calculations and site access removals, including updated unit rates and inflation factors applied since 2020. It references a spreadsheet and a confidential document related to a 2026-2027 GRA Direct Evidence Appendix.

Section 1554
2026-2027 GRA Direct Evidence Appendix 8D Page 131 of 189 lnNINt:: ESTIM4TE - - IEE'T FOR FI ... AIJl"IAI -,_ SITE ni::- - •-:nN COST STUDY ?n?A LOCATION: VICTORIA JUNCTION GENERATING STATION (COMBUSTION TURBINE) DATE: July 2020 Account Es...

AI summary This document provides a cost study for the Victoria Junction Generating Station, focusing on boiler plant removals. The study was conducted in July 2020 and outlines assumptions and notes related to the estimated costs for 2024.

Section 1570
1.23 Factor for Up-dating from July 2020 to 2024 1oo·s SITE REMEDIATION ISSUES: 12 SITE REMEDIATION ISSUES 1,724,076 120 General Preparation (Planning, Pennits, Co-ordination with Regulators etc.) 15,849 Costs associated with overall plann...

AI summary The text discusses site remediation issues, including costs for general preparation, Phase 1 site information assessment, and associated activities. It references a 2017 Phase 1 ESA completed by EXP for specific sites and outlines additional costs for a HAZMAT survey.

Section 1583
nth duration of the project. Used same mathodology as 2020 but with updated 2024 unit rates. 126 Phase 6 - Confinnatory Sampling and Completion Reporting 95,096 Environmental consulting, site coordination/supervision, Project Management is...

AI summary The text discusses Phase 6 of a project involving confirmatory sampling and completion reporting, including environmental consulting, site coordination, and risk assessments. It also mentions miscellaneous considerations such as regulatory approvals and legal costs associated with decommissioning, using updated 2024 unit rates and an inflation factor.

Section 1600
LOCATION: MARINE TERMINAL POINT TUPPER DATE: 15-Jul-24 Account Estimated Cost: Item Description Assumptions/ Notes:2024 Code July 2024 SOO's ELECTRICAL: 50&51 ON SllE DISlRIBUTION LINES REMOVALS 504 Supporting Structures 505 Framing and Ha...

AI summary The document outlines the estimated costs for the removal of electrical infrastructure at the Marine Terminal Point Tupper location, including distribution lines, power systems, and associated components such as transformers and conduits.

Section 1608
Assumptions / Notes: 2024 Code July 2024 1.23 Factor for Up-dating from July 2020 to 2024 100'5 SITE REMEDIATION ISSUES: 12 SITE RE MEDIA11ON ISSUES 2,376,850 120 General Preparation (Planning, Permits, Co-ordination ""1th Regulators etc.)...

AI summary The document outlines site remediation issues, including costs related to planning, permits, and coordination with regulators and entities like NSPI and NSE. The costs are adjusted using an inflation factor from July 2020 to 2024.

Section 1609
lators etc.) 24,600 Costs associated Ytlith overall planning, permitting, coordinating with regulators, coordinating with NSPI, NSE, etc. No change since 2020; apply inflation factor. 121 Phase 1 -Site Information Assessment 49,200 Previou...

AI summary The text outlines costs related to planning, permitting, and coordination with NSPI and NSE, noting no change since 2020 and the application of an inflation factor. It also discusses the need for a comprehensive Phase 1 ESA and a HAZMAT survey due to previous incomplete assessments and the potential presence of asbestos-containing material.

Section 1610
vey. No change since 2020; therefore, apply inflation factor.

AI summary The text indicates that there has been no change since 2020, and suggests applying an inflation factor.

Section 1620
site; therefore, it is anticapted that this cost 1Nill be much lov.er than other NSPI sites. No change since 2020; therefore, apply inflation factor. Excavation of Contamminated Soils and Sediments 526,500 As mentioned above, it is assumed...

AI summary The text discusses the anticipated costs for excavating and disposing of contaminated soils and sediments at an NSPI site, noting that the cost is expected to be lower than at other NSPI sites. It references the use of an inflation factor and updated 2024 soil disposal rates, with assumptions about sediment depth and volume based on previous experiences at similar sites.

Section 1624
l be similar to the PTMT cost since both sites are similar in size and have similar features. No change since 2020; therefore, apply inflation factor. 127 Miscellaneous Considerations: Regulatory Agencies Approval of Decommissioning Comple...

AI summary The text discusses costs associated with site remediation, including regulatory approval, meetings with NSE, and long-term groundwater monitoring. It assumes costs will be similar to PTMT due to comparable site sizes and features, and applies an inflation factor from 2020.

Section 1625
long-term monitoring reporting. Assume groundwater monitoring will be conducted for 5 years. Used same methodoloav as 2020 but 1Nith uodated 2024 unit rates. Liability 61,500 Cost associated with assessing impacts/concems in the adjacent w...

AI summary The text discusses long-term groundwater monitoring, liability estimates for assessing impacts on adjacent properties, and future land use controls. It includes assumptions about monitoring duration, inflation factors, and maintenance costs for fencing. The liability estimate is based on communication costs related to long-term monitoring results.

Section 1626
carried for ongoing fence assessments/maintenance. Assume $50,000 fence maintenance costs. ()stantec. \\ca0213-ppfss01\work_graup\1214\aclive\121418266\05_report_deliverable\draft_doc\Revised_Drafl\Site11_2024 Estimate-Sydney international...

AI summary The text provides an estimate for site decommissioning costs at the Sydney International Coal Pier, including $50,000 for fence maintenance and referencing a spreadsheet with cost details. The document is part of a financial depreciation cost study for 2024.

Section 1638
2 Metering 513 Transfonners (May Contain PCB's) 58 ELECTRICAL POWER SYSTEMS REMOVAL 104,550 560 General -Electrical (including Junction and Tenninal Boxes) 104,550 Lights/ Transfonner/AG-cables/ MCC buildings/ Sub stations 561 Medium Volta...

AI summary This document outlines the costs associated with the removal of electrical power systems, including transformers, junction boxes, and various voltage systems. It references a specific Excel file and includes a redacted section indicating confidential information has been removed.

Section 1642
EET FOR FINANCIAL DEPRECIATION COST STUDY 2024 SYDNEY INTERNATIONAL COAL PIER Account Estimated Cost: Item Description Assumptions / Notes: 2024 Code July 2024 77 PLANT OPERATING EQUIPMENT REMOVALS 15,375 770 Environmental - Monitoring Equ...

AI summary The text provides an estimate of costs related to the removal of plant operating equipment and decommissioning activities at the Sydney International Coal Pier in 2024, including direct labor and equipment costs, as well as general and administration expenses.

Section 1645
AND RAILCAR MAINTENANCE CENTRE DATE: DATE: 30-Jul-24 Account Estimated Cost: Estimated Cost: Item Description Assumptions / Notes: 2024 Code July 2020 July 2024 1.2300 Factor for Up-dating from July 2020 to July 2024 100's SITE REMEDIATION...

AI summary The document outlines the estimated costs for site remediation issues, including general preparation and coordination with regulators and organizations such as NSPI and NSE, with an inflation factor applied to update costs from July 2020 to July 2024.

Section 1663
eporting. Assume groundwater monitoring WII be conducted for 5 years. Used same methodoloav as 2020 but with uodated 2024 unit rates. Liability 50,000 61,500 Cost associated Wth assessing impacts/concerns in the adjacent water bodies or pr...

AI summary The text discusses groundwater monitoring over 5 years, liability estimates for assessing impacts on adjacent water bodies and properties, and future land use controls under NSPI ownership. It includes assumptions about inflation, remediation, and fence maintenance costs.

Section 1664
Costs carried for ongoing fence assessments/maintenance. Assume $30,000 fence maintenance costs. ()stantec \D0213-ppfn01\work_group\1214\aclive\121418268\0S_report_deliverable\draft_dac\Revi&ed_Draft\Si\1112_2024 Estima\11-Sydney Transport...

AI summary The text discusses the estimation of costs for ongoing fence assessments and maintenance, assuming $30,000 for fence maintenance. It also references a site decommissioning estimate worksheet for a financial depreciation cost study related to the Sydney Transportation and Railcar Maintenance Centre.

Section 1710
Estimated Cost 2024 Action Account Item Description Assumptions / Notes: By Code 2024 Escalation 2024 1.23 1oo•s SITE REMEDIATION ISSUES: For this estimate we have assumed the follov,,ina: Comolete demolition of the farm as it stands todav...

AI summary The text provides an estimated cost of $279,825 for site remediation issues in 2024, assuming complete demolition of the farm, no salvage value for equipment, and continued use of the overhead crane until the demolition is complete.

Section 1728
Estimated Cost 2024 Action Account Item Description Assumptions / Notes: By Code 2024 BOO's GENERAL AND ADMINISTRATION: 81 FIELD FACILITIES AND DECOMMISSIONING 57,180 811 Demolition Contractor Site trailers / Facilities 57,180 1.5% ofTDREC...

AI summary The document outlines estimated costs for field facilities, administration, and equipment salvage in 2024, with figures based on percentages of TDREC. These costs are associated with BOO's activities and include demolition, consultant services, supervision, and engineering expenses.

Section 1757
p in 2021. This area historically had scrap metals and minor items (overhead doors, conveyor structure, metal lighting mast, complete with fixtures and roof trusses) stockpiled here, which have been removed from the site. Applied inflation...

AI summary The text discusses the historical removal of scrap metals and minor items from a site, the application of an inflation factor to 2021 estimates, and the reduction of annual capital costs for progressive reclamation activities from 2021 through 2024, adjusted based on the published CPI and the higher costs associated with smaller programs.

Section 1759
Chemistrv/metals. Estimate includes reportina and coordination with reaulators. Liability Future Controls of Land Use (j Stantec V:\1214\active\121418266\05_report_deliverable\deliverable\Site17_2024 Estimate-LS Quarry_rev01.xlsx Page 1 of...

AI summary The text outlines an estimate for site access removals at Glen Morrison Quarry, including reporting and coordination with regulators. It is part of a cost study for a finalization process, dated July 2024.

Section 1766
387 Gypsum Handling and Storage (off-site) 400's TURBINES, GENERATORS AND AUXILIARIES: N/A (j Stantec V:\1214\active\121418266\05_report_deliverable\deliverable\Site17_2024 Estimate-LS Quarry_rev01.xlsx Page 3 of 5 REDACTED (CONFIDENTIAL I...

AI summary The text provides a portion of a cost estimation document for a project at Glen Morrison Quarry, including sections on gypsum handling and storage, as well as electrical components. It includes a table with account codes, item descriptions, and estimated costs for the year 2024.

Section 1767
Assumptions/ Notes: 2024 Code Cost2024 500's ELECTRICAL: 50 & 51 ON SITE DISTRIBUTION LINES REMOVALS 56 ELECTRICAL POWER SYSTEMS REMOVAL 25,200 560 General -Electrical (including Junction and Terminal Boxes) 561 Medium Voltage Systems (4 k...

AI summary The document outlines costs associated with the removal of electrical systems and water systems in 2024. Specific line items include the removal of low voltage systems, fire fighting systems, and an overflow structure at a selling pond, with associated costs provided.

N-82026-2027 GRA Appendix 9-13 16 passages
Parent CI Number : - p. p. 1
Parent CI Number : - Asset Location : 1455 - 1455 Transmission Plant General Budget Version UARB Submissions Archaeological Assessments 532500 Consulting LOT 1 $ 67,825 $ 67,825 Line Design LOT 1 $ Sub-Total 175,626 $ $ 175,626 243,451 533...

AI summary The document outlines various costs associated with a transmission plant project, including archaeological assessments, legal and audit expenses, and administrative overhead. It provides a breakdown of budget submissions and actuals, highlighting variances and reasons such as project management, engineering, and procurement activities.

Summary of Related CIs (+/- 2 years): p. p. 8
Summary of Related CIs (+/- 2 years): Pursuant to Section 11.2 of the CEJC, related CIs for Transmission projects include "Work completed on the same asset class (Padmount transformers, Breakers, etc.) or in the same location (feeder, Tran...

AI summary The text outlines related Capital Investments (CIs) for Transmission projects under Section 11.2 of the CEJC, including examples of specific projects (e.g., line terminal upgrades, thermal rating improvements) with associated costs and a depreciation class for Transmission Plant assets.

Asset Location : - Budget Version UARB Submissions 1455 1455 Transmission Plant General p. pp. 14-21
Asset Location : - Budget Version UARB Submissions 1455 1455 Transmission Plant General Capital Item Accounts Exp. Type Utility Account Forecast Amount Additions 0700 - TP - Environmental 66,703 Additions 3500 - TP - Wood Poles 774,399 Add...

AI summary The document outlines budget submissions related to the Transmission Plant General under the Nova Scotia Utility and Review Board (NSUARB). It details capital item accounts, including additions and retirements for various transmission-related assets, and provides cost estimates for labor and materials associated with upgrading thermal ratings for specific lines.

Reason for Variance p. p. 21
Reason for Variance The final costs of $2,982,714 for the project were $767,760 lower than the original submission of $3,750,474, primarily due to the use of internal versus external labour. At the time of the original submission, the Proj...

AI summary The final project cost was significantly lower than the original submission due to the use of internal labour instead of external resources. This change led to cost savings across most budget categories and eliminated the need for contingency funds, although some costs increased due to market conditions and unforeseen requirements.

67N Onslow 345 kV Node Swap Title: p. p. 21
67N Onslow 345 kV Node Swap Title: Description Unit Quantity Unit Estimate Total Estimate Cost Support Reference Completed Similar Projects (FP#'s) Meals Lot 1 $ 2,353 $ 2,353 Sub-Total $ $ - 2,353 AFUDC 605050 Interest Capitalized $ 534,8...

AI summary The document outlines cost estimates for the 67N Onslow 345 kV Node Swap project, including meal expenses, AFUDC, vehicle and administrative overheads, and total estimated costs. It also includes a comparison between original submission budgets and final application costs.

Preamble p. pp. 57-58
Despite the recent tariff tensions, the magnitude and significance of trade between the two countries reflects the high degree of integration between the two economies. According to the U.S. Department of State: "The United States and Cana...

AI summary The text highlights the strong economic integration between Canada and the U.S., citing high levels of trade and similar macroeconomic indicators. It emphasizes that the economic and investment environments of both countries are comparable, influencing the cost of capital analysis and the selection of proxy companies for evaluation.

Jurisdiction Adj. Docket/Proceeding Notes p. p. 77
Jurisdiction Adj. Docket/Proceeding Notes Alberta 50 bps 2018 GCOC Decision 22570-D01-2018 and 2024 GCOC Decision 27084- D02-2023 Adjustment of 50 bps is normally included in the allowed return to account for administrative and equity issu...

AI summary The text outlines various adjustments to allowed returns across different jurisdictions, primarily focusing on flotation costs and financing flexibility. These adjustments range from 25 bps to 50 bps, with some jurisdictions specifying the inclusion of flotation costs in the allowed return. Nova Scotia's 2023 rate application was resolved through a settlement agreement that did not explicitly address flotation costs or financing flexibility.

Canadian Regulated Utilities US Electric Utilities North American Electric Utilities p. p. 112
Canadian Regulated Utilities US Electric Utilities North American Electric Utilities CAPM – Historical MRP 9.71% 10.69% 10.32% Multi-Stage DCF 9.60% 9.35% 9.29% Risk Premium 9.54% 10.45% 10.00% Average 9.62% 10.16% 9.87% 8

AI summary The table compares the weighted average cost of capital (WACC) across Canadian regulated utilities, US electric utilities, and North American electric utilities, highlighting differences in CAPM, Multi-Stage DCF, and Risk Premium rates.

2.1.2 Economic Comparison of In-house versus Outsourced Meter Readings p. pp. 119-120
2.1.2 Economic Comparison of In-house versus Outsourced Meter Readings In its Order dated December 6, 2018, the Board directed NS Power to explore the option of providing opt-out meter reading services by external contractor resources, inc...

AI summary The NSEB directed NS Power to explore outsourcing opt-out meter reading services in 2018. In the 2023-2024 GRA, NS Power evaluated the economic impact of outsourcing versus in-house meter reading and found that outsourcing would cost 25% more than keeping the service in-house.

Non-standard Meter Service (AMI) Opt-out Fee 2026-2027 GRA Direct Evidence Appendix 13A Page 10 of 14 p. p. 122
Non-standard Meter Service (AMI) Opt-out Fee 2026-2027 GRA Direct Evidence Appendix 13A Page 10 of 14 NS Power has increasingly been asked by stakeholders to leverage its AMI data for various justifications and analyses. AMI data helps NS...

AI summary NS Power highlights various benefits of Advanced Metering Infrastructure (AMI) data, including improved outage management, reduced field work, and better integration of new electric loads. These benefits support the approval of the AMI Authorization to Overspend Application (M11003).

2.3 The Company has Acquired Actual Experience with Opt-out Costs and Flexible Customer Options p. pp. 122-124
2.3 The Company has Acquired Actual Experience with Opt-out Costs and Flexible Customer Options As part of the approval process for NS Power's AMI roll-out, the NSEB required NS Power to track its costs and report annually on the customers...

AI summary NS Power has been tracking and reporting opt-out costs related to AMI installation since 2021. In 2024, these costs amounted to approximately $1.11 million, with cumulative costs since 2019/2020 reaching $4.24 million.

Cost Category 2019/2020 2021 2022 2023 2024 Grand Total p. p. 124
Cost Category 2019/2020 2021 2022 2023 2024 Grand Total Internal Labour 0.15 0.07 – – – 0.22 Consulting 0.18 0.00 – – – 0.18 13 M11003 – NSEB Decision, 308688, pages 9-10. November 3, 2023. 14 M08349, NS Power CI 47124 – AMI Project, Suppl...

AI summary The document presents a table of cost categories and associated expenses for the AMI Project from 2019/2020 to 2024, including internal labour, consulting, total labour, customer care expenses, and meter services expenses. It references specific NSEB decisions and a CI project related to the AMI Project.

Re: M08349 – CI 47124 – Advanced Metering Infrastructure (AMI) Project – Costs Associated with Opt-Out Services p. p. 130
Re: M08349 – CI 47124 – Advanced Metering Infrastructure (AMI) Project – Costs Associated with Opt-Out Services The Nova Scotia Utility and Review Board (NSUARB, Board) approved Nova Scotia Power Incorporated's (NS Power, Company) applicat...

AI summary The Nova Scotia Utility and Review Board approved NS Power's AMI Project in 2018 and directed the company to explore cost-effective opt-out meter reading services and track associated costs. NS Power has installed over 531,000 smart meters, with 97% now using OTA billing. The Board approved discontinuing monthly updates due to NS Power's progress and commitment to complete installations.

Costs Associated with Opt-Out Services p. p. 130
Costs Associated with Opt-Out Services Up to December 31, 2024, NS Power has incurred costs in relation to opt-out services in three areas: - (1) Capital investment - (2) Customer care expenses for program roll out - (3) Meter reading cost...

AI summary NS Power has incurred costs related to opt-out services up to December 31, 2024, across three areas: capital investment, customer care expenses for program rollout, and meter reading costs for opt-out meters.

Opt-out Capital Investment 2019/2020 ($M) 2021 ($M) p. p. 130
Opt-out Capital Investment 2019/2020 ($M) 2021 ($M) Internal Labour 0.15 0.07 Consulting 0.18 0 Total Labour 0.33 0.07 Customer Care Expenses

AI summary The table shows a comparison of opt-out capital investment expenses for 2019/2020 and 2021, highlighting reductions in internal labour and consulting costs. The section on 'Customer Care Expenses' suggests a focus on operational costs related to customer service.

Section 253 p. p. 131
Opt-out customers in OTA-enabled areas require manual meter reading and receive nonstandard meter service. In 2024, NS Power continued to read these opt-out customers per standard read frequency in accordance with current regulations. Goin...

AI summary Opt-out customers in OTA-enabled areas require manual meter reading, which NS Power performed in 2024 at a cost of approximately $1.1 million for 100,000 reads. NS Power is exploring cost-reduction strategies and flexible customer options, as outlined in Appendix 13A of the 2026-2027 GRA.

N-92026-2027 GRA Appendix 12 A-C - Cost of Service Study Process - Redacted 312 passages
Cost of Service Study Redacted p. pp. 4-26
Cost of Service Study Redacted 1 TABLE OF CONTENTS 2 3 1.0 INTRODUCTION 5 4 2.0 SUMMARY OF STAKEHOLDER PROCESS 7 5 3.0 SUMMARY OF COSS 10 6 3.1 The COSS Framework 10 7 3.2 Developments in the Company's Power System Impacting COS 11 8 4.0 O...

AI summary The document outlines the structure and contents of a redacted Cost of Service Study (COSS) being presented in a regulatory proceeding. It includes sections on the stakeholder process, proposed changes to the COSS, and a line loss study. Key topics include classification of generation and transmission costs, treatment of battery systems, and proposed changes to the DSM rider.

Section 10 p. p. 6
- 4 to be consultative in nature, undertaken through a comprehensive stakeholder process facilitated - 5 by an expert COS consultant. NS Power retained Elenchus Research Associates Inc. (Elenchus) as - 6 its expert consultant at the end of...

AI summary NS Power conducted a consultative process in 2024 with stakeholders to address the Cost of Service (COS) treatment, facilitated by Elenchus and mediated by Bruce Outhouse. The process included technical conferences, resolution sessions, and extensive data exchange, resulting in multiple appendices with models, DR responses, and other supporting documents.

Section 11 p. p. 6
decks provided by NS Power and its consultants, - 25 appended as Appendix 12A(3) , jurisdictional scans, appended as Appendix 12A(4) , and - 26 memorandums, appended as Appendix 12A(5) . 27 - 28 At the outset of the COS process, NS Power p...

AI summary The document references decks provided by NS Power and its consultants, including jurisdictional scans and memorandums, as part of the Cost of Service Study (COSS) process. NS Power presented background information on the COSS to stakeholders, including a review of general principles and a detailed walkthrough of the current COSS approved in 2013.

1 4.0 OVERVIEW OF NS POWER'S PROPOSAL p. pp. 10-11
1 4.0 OVERVIEW OF NS POWER'S PROPOSAL 2 3 NS Power has identified several areas within the existing COSS that can be updated to respond to 4 changes such as increased renewables being brought online, as was ordered by the Board, and to 5 b...

AI summary NS Power proposes updates to the Cost of Service Study (COSS) to align with changes in the electricity market, including increased renewables, and a principled approach focusing on justified changes. They consider cost causation, alignment with Canadian jurisdictions, and seek to simplify the COSS based on stakeholder feedback, using Elenchus' expertise.

11 5.5 Removal of Distinction Between EHV and HV p. pp. 15-16
11 5.5 Removal of Distinction Between EHV and HV 12 13 NS Power proposes that the distinction between Extra High Voltage (EHV) and High Voltage 14 (HV) within the current COSS model be removed and replaced with a single sub-function for EH...

AI summary NS Power proposes removing the distinction between Extra High Voltage (EHV) and High Voltage (HV) in the COSS model, arguing that their integrated systems justify a single sub-function. This aligns with OATT methodology and is supported by the Elenchus Report, which cites practices in other Canadian jurisdictions.

Section 27 p. p. 17
(WACC) and transmission rate base.

AI summary The text refers to the Weighted Average Cost of Capital (WACC) and transmission rate base, which are key financial and regulatory considerations in utility rate-making processes.

Preamble p. pp. 20-176
2 3 NS Power is proposing that the treatment of General Plant be refined to more consistently allocate 4 General Plant with a clear and identifiable function. General Plant that is found to have a strong 5 relationship with a category, wil...

AI summary NS Power proposes refining the allocation of General Plant to better reflect its function, focusing on projects over one million dollars. A 'dual allocation' approach is suggested for certain costs, such as vehicle expenses, which would be split between transmission and distribution using allocators like OM&G and rate base.

1 6.0 PROPOSED MAINTENANCE OF STATUS QUO p. pp. 20-22
1 6.0 PROPOSED MAINTENANCE OF STATUS QUO 2 - 3 Through the detailed stakeholder sessions, NS Power and stakeholders comprehensively reviewed 4 each component of the current COSS. Through this review, NS Power identified areas of interest

AI summary This section outlines the proposed maintenance of the status quo, noting that NS Power and stakeholders have reviewed the current Cost of Service Study (COSS) and identified areas of interest during detailed stakeholder sessions.

9 6.1 Classification of Distribution Costs – Minimum System Study p. p. 22
9 6.1 Classification of Distribution Costs – Minimum System Study 10 11 NS Power currently uses Minimum System Study to classify distribution costs and proposes that 12 continued use of minimum system study to classify distribution costs b...

AI summary NS Power proposes continuing to use the Minimum System Study to classify distribution costs between customer and demand, supported by the Concentric Minimum System Study and the Elenchus Report. This approach allocates system build-out costs based on customer count rather than consumption.

19 6.3 Transmission Links to Other Systems – Maritime Link p. p. 23
19 6.3 Transmission Links to Other Systems – Maritime Link 9 at a number of system peaks rather than a single peak event. 20 21 The current approach to functionalization of the Maritime Link (ML) between transmission and 22 generation is t...

AI summary NS Power's analysis supports the current approach of fully functionalizing all Maritime Link costs to generation, as transmission costs are minor and not explicitly included in purchase prices. Separating transmission components from generation costs is deemed impractical due to their secondary nature.

Section 46 p. p. 26
- 1 As a reference point, BBA initially adopted an industry benchmark of 1.2 percent for non-technical - 2 losses. This value was then adjusted to 0.9 percent based on refined modelling results. 3 - 4 Non-technical demand losses were estim...

AI summary The document discusses non-technical demand losses, initially set at 1.2 percent and later adjusted to 0.9 percent based on refined modelling. The average non-technical demand loss across classes is estimated at 2.3 percent, calculated using the ratio of technical demand to energy losses and aligned with total system coincident demand.

2026-2027 GRA Direct Evidence Appendix 12A(1) Page 1 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 28
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 1 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Exhibit Reference Cells Modification formulae revised to receive no classification Exh 6 D172:M194 Allocations of transmission energy ex...

AI summary The document outlines modifications to the 2026-2027 GRA Direct Evidence Appendix 12A(1), including adjustments to transmission energy expense allocations, updates to values using the BCF file, and reclassifications to avoid division-by-zero errors in calculations.

1 Request for COSS Model Runs: p. p. 28
1 Request for COSS Model Runs: Run # NSP Position Model Run Description 1 Yes NSP's positions in aggregate. This model includes the changes from model runs #2-5 below. 2 Yes New Intermediate Generation sub-function classified to demand and...

AI summary The document outlines a request for Cost of Service Study (COSS) model runs to evaluate various NSP positions, including the classification of generation and transmission, and the inclusion of specific rate classes and allocation methods.

3 Notes on COSS Model Runs: p. p. 28
3 Notes on COSS Model Runs: - 4 All changes to the model cells are denoted with orange highlighting. - 5 Model runs 1, 2, 4, 10a, 10b, and 11 require updates to the Base Cost Fuel ("BCF") file that is an - 6 input into the COSS. Revised ve...

AI summary The document discusses updates to the Base Cost Fuel (BCF) file in the COSS model runs, noting that changes create a mismatch between ATL revenues and costs, which is addressed by adjusting the Profit/Loss figures for BTL classes in specific model runs.

15 COSS Model Run #2, New Intermediate Generation Sub-Function: p. p. 28
15 COSS Model Run #2, New Intermediate Generation Sub-Function: - 16 New balances are included in the Input Data tab for intermediate generation (Tufts Cove 1,2, and - 17 3). An explanation of the selection of the three Tufts Cove units is...

AI summary The document discusses the inclusion of new balances for intermediate generation units (Tufts Cove 1, 2, and 3) in the COSS Model Run #2. These units are currently categorized under the Steam generation subfunction, and their capacity factors are being analyzed. The explanation for selecting these units is referenced in PHP DR-1.

2026-2027 GRA Direct Evidence Appendix 12A(1) Page 7 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 28
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 7 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475)

AI summary This document refers to the Cost of Service Study Process under matter number NSUARB M11475, which is part of the 2026-2027 General Rate Application (GRA) direct evidence. The study is likely related to determining the cost of service for utility providers in Nova Scotia.

11 COSS Model Run #4, PHP is Included as a Separate Class: p. p. 28
11 COSS Model Run #4, PHP is Included as a Separate Class: 12 This model follows the same methodology as PHP DR-12.

AI summary This section describes COSS Model Run #4, which includes PHP as a separate class and follows the same methodology as PHP DR-12.

14 COSS Model Run #5, Classify Grid Scale Storage by ELCC Factor: p. p. 28
14 COSS Model Run #5, Classify Grid Scale Storage by ELCC Factor: - 15 Grid Scale Storage is not yet operational and is fully CWIP in 2023 so there are no operating and - 16 maintenance expenses or depreciation functionalized to batteries....

AI summary Grid Scale Storage is not yet operational and is fully CWIP in 2023, resulting in no operating or maintenance expenses or depreciation being functionalized to batteries. Only Interest, Return (Profit/Loss), and Corporate Taxes are functionalized to batteries, with a 62% ELCC provided in CA DR-22.

2026-2027 GRA Direct Evidence Appendix 12A(1) Page 8 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 28
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 8 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475)

AI summary This document refers to the Cost of Service Study Process as part of the Nova Scotia Utility and Regulatory Board (NSUARB) proceeding numbered M11475. It is part of the 2026-2027 General Rate Application (GRA) direct evidence, specifically Appendix 12A(1), and is marked as confidential.

CONFIDENTIAL p. pp. 28-43
CONFIDENTIAL 1 COSS Model Run #6, Transmission Subfunctionalized to EHV and HV: 2 The current COSS includes subfunctionalization between EHV and HV but both subfunctions use 3 the same allocators. The allocators applicable to the HV subfun...

AI summary The document outlines various COSS model runs that adjust how costs are allocated across different subfunctions and classifications. These include changes to transmission subfunctionalization, distribution cost allocation, service allocation based on meter costs and customer count, and reclassification of generation based on capacity factors.

2026-2027 GRA Direct Evidence Appendix 12A(1) Page 9 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 28
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 9 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475)

AI summary This document refers to the Cost of Service Study Process as part of the Nova Scotia Utility and Regulatory Board (NSUARB) matter M11475. It is related to the 2026-2027 General Rate Application (GRA) and includes direct evidence from the appendix.

2026-2027 GRA Direct Evidence Appendix 12A(1) Page 10 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 28
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 10 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475)

AI summary This section of the 2026-2027 General Rate Application (GRA) Direct Evidence Appendix references the Cost of Service Study Process as outlined in the Nova Scotia Utility and Regulatory Board (NSUARB) matter M11475.

Section 77 p. p. 28
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 11 of 46 Cost of Service Study Process (NSUARB M11475)

AI summary This document is part of the 2026-2027 General Rate Application (GRA) Direct Evidence Appendix 12A(1), discussing the Cost of Service Study Process under NSUARB matter number M11475.

2026-2027 GRA Direct Evidence Appendix 12A(1) Page 12 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 28
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 12 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475)

AI summary This document refers to the Cost of Service Study Process as part of the Nova Scotia Utility and Regulatory Board matter M11475. It outlines the process involved in analyzing the cost of service for utility providers in Nova Scotia.

2026-2027 GRA Direct Evidence Appendix 12A(1) Page 13 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 28
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 13 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475)

AI summary This document refers to the Cost of Service Study Process as part of the 2026-2027 General Rate Application (GRA) and cites the Nova Scotia Utility and Regulatory Board (NSUARB) matter number M11475.

2026-2027 GRA Direct Evidence Appendix 12A(1) Page 14 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 28
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 14 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475)

AI summary This document refers to the Cost of Service Study Process as part of the NSUARB M11475 proceeding. It outlines the methodology and considerations involved in conducting a cost of service study, which is a key component in determining appropriate rates for utility services.

2026-2027 GRA Direct Evidence Appendix 12A(1) Page 15 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 28
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 15 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475)

AI summary This document references the Cost of Service Study Process under the NSUARB M11475 proceeding, indicating that it is part of a broader regulatory analysis related to cost of service studies.

CONFIDENTIAL p. p. 28
CONFIDENTIAL - 1 classes that used to reduce the Profit/Loss allocated to ATL classes (Exh 4 Detail cell H184). In - 2 models 1, 4, and 11 the mismatch as attributed to the new rate class. 3 - 4 COSS Model Run #1, NSP Positions: - 5 This m...

AI summary The text discusses changes in profit/loss allocation for ATL classes and references COSS Model Run #1 and #2, which include NSP's positions and a new intermediate generation sub-function. It outlines adjustments to intermediate generation capacity factors and the classification of Tufts Cove and Lingan units.

2026-2027 GRA Direct Evidence Appendix 12A(1) Page 16 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 43
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 16 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475)

AI summary This document refers to the Cost of Service Study Process as part of the NSUARB M11475 matter, indicating that the study is a key component in the regulatory proceeding related to the 2026-2027 General Rate Application.

CONFIDENTIAL p. p. 43
CONFIDENTIAL 1 COSS Model Run #3, Transmission Classified as 100% Demand: 2 The classification of a portion of Transmission as Energy is removed so all rate base and costs are 3 classified as 100% Demand. The sections of the COSS that allo...

AI summary The document outlines various COSS model runs that adjust the classification and allocation of costs related to transmission, grid-scale storage, and distribution. These changes include reclassifying transmission as 100% demand, separating PHP as a class, and adjusting allocators for EHV and HV subfunctions.

2026-2027 GRA Direct Evidence Appendix 12A(1) Page 17 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 43
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 17 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475)

AI summary This document refers to the Cost of Service Study Process as part of the NSUARB M11475 proceeding, indicating it is related to the analysis of costs associated with utility services in Nova Scotia.

2026-2027 GRA Direct Evidence Appendix 12A(1) Page 18 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 43
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 18 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475)

AI summary This document refers to the Cost of Service Study Process under the NSUARB M11475 matter. It is part of the 2026-2027 GRA Direct Evidence Appendix 12A(1), which includes redacted confidential information.

2026-2027 GRA Direct Evidence Appendix 12A(1) Page 19 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 43
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 19 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475)

AI summary The document refers to the Cost of Service Study Process under NSUARB M11475, which is part of the 2026-2027 General Rate Application (GRA) Direct Evidence Appendix 12A(1). The study is likely related to analyzing the costs associated with service delivery for regulatory proceedings.

1 COSS Model Run #15 Transmission clean import-enabling assets classified by SLF: p. p. 43
1 COSS Model Run #15 Transmission clean import-enabling assets classified by SLF: - 2 This model functionalizes transmission costs associated with enabling clean imports and classifies - 3 these costs by the SLF, with remaining transmissio...

AI summary This section describes COSS Model Run #15, which categorizes transmission costs related to enabling clean imports by SLF, with remaining costs classified as demand. The model includes tabs showing variances between the scenario and the current COSS and Model #3.

8 COSS Model Run #16 Equivalent Peaker Method: p. p. 43
8 COSS Model Run #16 Equivalent Peaker Method: - 9 This model run classifies non-fuel generation costs using the equivalent peaker method. NSP does - 10 not build new CT or coal units so the cost per kW of capacity is based on Capital Cost...

AI summary This section describes the use of the equivalent peaker method in the COSS Model Run #16 to classify non-fuel generation costs. Nova Scotia Power uses capital costs from the U.S. Energy Information Administration to determine the cost per kW of capacity, with calculations detailed in the BCF file.

2026-2027 GRA Direct Evidence Appendix 12A(1) Page 20 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 43
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 20 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475)

AI summary This document references the Cost of Service Study Process under matter number NSUARB M11475, indicating that it is part of a regulatory proceeding related to the analysis of service costs.

2026-2027 GRA Direct Evidence Appendix 12A(1) Page 23 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 43
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 23 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475)

AI summary The document references a Cost of Service Study Process under NSUARB M11475, which is part of the 2026-2027 GRA Direct Evidence Appendix 12A(1). The content is redacted, indicating that confidential information has been removed.

THEORY UNDERPINNING THE MINIMUM SYSTEM STUDY p. pp. 59-166
THEORY UNDERPINNING THE MINIMUM SYSTEM STUDY - Dr. Pavlovic claims that the Minimum Size Method has no theoretical, practical or empirical basis to - classify a portion of the distribution system cost as customer-related.[1](#page-59-0) Th...

AI summary Dr. Pavlovic argues that the Minimum Size Method (MSS) lacks theoretical, practical, or empirical support for classifying distribution system costs as customer-related. This contradicts industry practice and NARUC endorsement, as well as findings by Concentric showing widespread use of MSS by Canadian utilities.

Description of the MSS p. pp. 59-166
Description of the MSS - Distribution system costs are incurred to move electricity from generation and transmission facilities - to individual customers that are distributed geographically throughout the service territory of a - utility....

AI summary The document discusses the Minimum Size Method (MSS) for allocating distribution system costs between demand-related and customer-related components. It explains that distribution costs are influenced by both the number of customers and the peak load, and references the NARUC Manual for methodology. An example of the MSS application by Concentric is provided.

2026-2027 GRA Direct Evidence Appendix 12A(1) Page 32 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 59-60
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 32 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) CONCENTRIC EVIDENCE: GRA COSS ELEMENTS - the system. The minimum system cost represents the customer-related costs, whereas the total c...

AI summary The text discusses two methods for allocating distribution costs: the Zero Intercept Study and the Minimum Size Selection. The Zero Intercept Study uses regression analysis to estimate customer-related costs, but it is criticized for potential statistical unreliability. The Minimum Size Selection method involves selecting the smallest currently installed assets for cost allocation. These methods are outlined in the NARUC Manual.

2 PRIOR COSS p. pp. 62-169
2 PRIOR COSS - 3 The Board has approved the prior Cost of Service Study (COSS), which classified distribution cost as - 4 both demand and customer-related. Figure 1 above shows the customer and demand classification - 5 utilized in prior C...

AI summary The Board has approved the prior Cost of Service Study (COSS), which classified distribution costs as both demand and customer-related, following established practice in Nova Scotia.

2026-2027 GRA Direct Evidence Appendix 12A(1) Page 36 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 63-64
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 36 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) CONCENTRIC EVIDENCE: GRA COSS ELEMENTS 100% demand-related.[7](#page-64-0) This assertion, however, fails to recognize the fact that a...

AI summary The text argues that a portion of distribution system costs is not demand-related, as some infrastructure is required regardless of peak demand. The Minimum Size Method (MSS) is used to calculate non-variable distribution costs, which should not be allocated based on demand due to their fixed nature.

CONCENTRIC EVIDENCE: GRA COSS ELEMENTS p. pp. 67-175
CONCENTRIC EVIDENCE: GRA COSS ELEMENTS 1 Minimum level of load-carrying capacity is appropriate under a minimum sized system 2 The Resource Insight evidence claims that if the minimum size used in the MSS has some load 3 carrying capacity,...

AI summary The text discusses the allocation of minimum system costs and the relevance of the NARUC Manual. It argues that minimum system costs should be treated as equally beneficial to all customers and highlights the continued relevance of the NARUC Manual in cost allocation, despite its last revision in 1992.

POLES SUB-FUNCTIONALIZATION p. pp. 69-177
POLES SUB-FUNCTIONALIZATION - Secondary customers do not pay twice when combination poles are allocated between - primary and secondary. - The Resource Insight evidence asserts that Concentric's treatment of combination poles (i.e., poles...

AI summary The document discusses the allocation of costs for combination poles in the sub-functionalization study, clarifying that secondary customers are not double-charged. Concentric Energy Advisors explains that the allocation is based on unit costs, ensuring costs are appropriately distributed between primary and secondary functions.

Inclusion of Forecasted Costs p. p. 73
Inclusion of Forecasted Costs - Mr. Briggs disputes the use of forecasted costs in the derivation of net book value and depreciation - expense associated with poles. [29](#page-73-2) It is appropriate to use both capital and O&M forecasted...

AI summary Mr. Briggs disputes the use of forecasted costs in calculating net book value and depreciation expense for poles. The NSUARB argues that both capital and O&M forecasted costs should be used in calculating the pole attachment rate, as the GRA revenue requirement is based on forecasted rate years. The prudency of these costs will be reviewed as part of the GRA.

NON-CONFIDENTIAL p. p. 74
NON-CONFIDENTIAL 1 Request DR-1: 2 3 Regarding use of ELCC factors in generation COS treatment, please clarify whether NS 4 Power's proposal is for average or marginal ELCC factors, and whether NS Power's 5 proposal is to use ELCC factors...

AI summary The document discusses NS Power's proposal regarding the use of Effective Load-Carrying Capacity (ELCC) factors in the classification of intermediate generation for cost-of-service (COSS) treatment. NS Power prefers using capacity factors over ELCC factors and suggests that if ELCC factors are used, average ELCC factors based on a prospective test year would align with their current COSS approach.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 6 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 74
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 6 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary This section of the document outlines the Cost of Service Study Process referenced in NSUARB M11475, specifically detailing NSPI's responses to CA Data Requests. It is part of a larger, partially confidential proceeding related to the 2026-2027 GRA.

NON-CONFIDENTIAL p. pp. 28-183
NON-CONFIDENTIAL 1 Request DR-12: 2 3 Please provide the hourly operating cost, including fuel, purchased power, and any other 4 relevant variable costs (transmission fees, environmental control inputs, disposal costs, etc.) 5 for the 2019...

AI summary The company does not track actual hourly operating costs and only provides monthly and quarterly cost data through FAM reports, in response to a request for detailed hourly operating cost information from 2019 to 2023.

Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests p. pp. 20-183
Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests 1 Request DR-14: 2 3 Please provide current transmission costs associated with the extra-high voltage 4 transmission system (EHV, 138 kV and greater) and the...

AI summary NSPI responded to a data request regarding transmission costs for EHV and HV systems in Nova Scotia. The response included spending figures for 2023 and details about the system configuration, noting that both mesh and radial structures are present, with HV lines supplying approximately 25% of the load capacity.

Section 6543 p. p. 74
Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary This document outlines the Cost of Service Study Process as part of the NSUARB M11475 proceeding, with NSPI providing responses to data requests from the Commission. It focuses on the methodology and data required for the study.

Section 6549 p. p. 74
13 Response DR-17: 14 15 (a) The following table provides a list of each distribution region with the transformer 16 nameplate capacity and peak load by transmission supply voltage. The transmission supply 17 voltage refers to the high-sid...

AI summary The text references a table listing distribution regions with transformer nameplate capacity and peak load by transmission supply voltage, with peak load data from 2023. It also mentions a Cost of Service Study Process under NSUARB M11475 and NSPI responses to data requests.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 718 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 74
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 718 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) COSS CA DR-22 Attachment 1 Page 1 of 1

AI summary This document is a partially confidential appendix from the 2026-2027 GRA Direct Evidence, specifically COSS CA DR-22 Attachment 1. It is part of a larger regulatory proceeding and contains information related to the Cost of Service Study (COSS).

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 723 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 74
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 723 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary This document pertains to the Cost of Service Study Process under NSUARB M11475, with NSPI providing responses to CA data requests. The context involves a regulatory proceeding related to the 2026-2027 GRA, with some information redacted.

COSS CA DR-27 Attachment 1 Page 9 of 9 p. p. 74
COSS CA DR-27 Attachment 1 Page 9 of 9 Name Section Title 4 class, differentiating among (1) customer-classified distribution costs (poles and conductors), 5 (2) customer-classified line transformers, and (3) other customer-classified cost...

AI summary The document requests detailed information on customer-classified distribution costs, including line transformers, hookups, and meter-related expenses, by customer class and year, with specific attention to residential classifications and cost classification accuracy.

Section 6608 p. p. 74
9 (d) 10 (i) NS Power's COSS tracks meter, service drop, and line transformer costs only by 11 operating and depreciation expense categories. The breakdown of other costs 12 associated with these assets such as interest, taxes, return, or...

AI summary NS Power's COSS tracks meter, service drop, and line transformer costs only by operating and depreciation expense categories. It does not provide costs specifically under a 'customer account' category, but instead includes a variety of customer service-related costs for the Retail Service Area.

Section 6631 p. p. 74
Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary This document outlines NSPI's responses to data requests related to the Cost of Service Study Process under NSUARB M11475. It provides information relevant to the regulatory proceeding on cost of service studies.

NON-CONFIDENTIAL p. pp. 28-74
NON-CONFIDENTIAL 1 Request DR-38: 2 3 Please identify how NS Power allocates land, easements, survey, and other similar costs and 4 explain the reasoning for this choice. 5 6 (a) For land/easements, please provide any available data (i.e.,...

AI summary NS Power explains that land, easements, and survey costs are allocated based on the relative shares of demand and customer services of the combined investment in substations and poles and wires. These costs account for 11% of total distribution plant investment and are classified 47.3% to Demand and 52.7% to Customer. This method has been used for many years and is considered complementary to the operation of substations and power lines.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 753 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 74
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 753 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary This document outlines NSPI's responses to data requests related to the Cost of Service Study (COSS) process under the NSUARB M11475 proceeding. It provides insights into the GRA (General Rate Application) for the 2026-2027 period.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 754 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 74
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 754 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary The document outlines NSPI's responses to data requests related to the Cost of Service Study Process under NSUARB M11475, as part of the 2026-2027 GRA Direct Evidence Appendix 12A(2).

2013 Cost of Service Study NSPI Responses to Consumer Advocate Data Requests p. p. 44
2013 Cost of Service Study NSPI Responses to Consumer Advocate Data Requests 1 Request DR-6: 2 3 Derivation of "line losses," "demand line-loss adjustment," and "requirements" in "Input 4 Data Two" 5 6 Response DR-6: 7 8 The forecast of li...

AI summary The response to DR-6 explains how line losses are forecasted and assigned to rate classes based on historical patterns from prior COSS studies. Line losses are higher during peak demand hours and are scaled hourly to match annual energy targets. 'Requirements' refers to the total generation needed to meet customer demand, including both customer demand and losses.

Section 6718 p. p. 44
Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary The document outlines NSPI's responses to data requests from the Cost of Service Study (COSS) process under NSUARB M11475, focusing on providing information relevant to the regulatory proceeding.

Section 6722 p. p. 44
11 (g) NS Power does not have specific data related to the percentage of small commercial 12 customers served off shared service drops, as in office buildings and shopping centers. PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appen...

AI summary NS Power does not have specific data on the percentage of small commercial customers served off shared service drops in office buildings and shopping centers. This information is part of the Cost of Service Study Process under NSUARB M11475, with NSPI responding to data requests.

NS Power 2022-2024 General Rate Application (NSUARB M10431) NSPI Responses to Consumer Advocate Information Requests p. pp. 44-61
NS Power 2022-2024 General Rate Application (NSUARB M10431) NSPI Responses to Consumer Advocate Information Requests 2 3 Please provide the most recent analysis of weighted meter costs, including all Excel 4 spreadsheets (with formulas int...

AI summary NSPI provided a detailed explanation of how weighted meter costs are calculated, referencing the COSS spreadsheet and updated AMI meter deployment costs. The analysis includes formulas, data, and assumptions from the exhibit provided in the rate application.

Nova Scotia Power p. p. 61
Nova Scotia Power Cost of Service Study Methodology January 2022 2022-2024 GRA SR-01 Attachment 1a Page 2 of 12 COSS CA DR-53 Attachment 1 Page 2 of 62 PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 792 of 1218 R...

AI summary The document outlines the methodology for the Cost of Service Study (COSS) used by Nova Scotia Power for the 2022-2024 GRA. It discusses the allocation of costs to Above-the-line (ATL) customer classes after subtracting Below-the-line (BTL) costs, with the aim of identifying inter-class inequities through revenue/cost (R/C) ratios.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 793 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 61
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 793 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2022-2024 GRA SR-01 Attachment 1a Page 3 of 12 COSS CA DR-53 Attachment 1 Page 3 of 62 Nova Scotia Power Cost...

AI summary This document outlines the methodology used in the Nova Scotia Power Cost of Service Study from January 2022, as part of the 2022-2024 GRA and related appendices. It is part of a partially confidential submission in a regulatory proceeding.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 798 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 61
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 798 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2022-2024 GRA SR-01 Attachment 1a Page 8 of 12 COSS CA DR-53 Attachment 1 Page 8 of 62 Nova Scotia Power Cost...

AI summary The text discusses the methodology used in the Nova Scotia Power Cost of Service Study, including the allocation of energy, demand, and customer factors, as well as the detailed breakdown of investments in distribution poles, overhead and underground wires, and the allocation of line transformers and services based on demand and customer classes.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 800 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 61
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 800 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2022-2024 GRA SR-01 Attachment 1a Page 10 of 12 COSS CA DR-53 Attachment 1 Page 10 of 62 Nova Scotia Power Co...

AI summary The document outlines the methodology for the Nova Scotia Power Cost of Service Study, including the classification and allocation of expenses into demand, energy, and customer categories. It details how various costs, such as distribution, service, and communication expenses, are allocated based on factors like rate base, meter investment, and customer numbers.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 801 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 61
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 801 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2022-2024 GRA SR-01 Attachment 1a Page 11 of 12 COSS CA DR-53 Attachment 1 Page 11 of 62 Nova Scotia Power Co...

AI summary The document outlines the methodology used in the Nova Scotia Power Cost of Service Study, detailing how various costs such as bad debt, depreciation, and interest are allocated across customer classes. The allocation is based on factors like gross write-off experience, number of customers, and total rate base. Exhibit 7 is used to verify the accuracy of the cost allocation analysis.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 802 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 61
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 802 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2022-2024 GRA SR-01 Attachment 1a Page 12 of 12 COSS CA DR-53 Attachment 1 Page 12 of 62 Nova Scotia Power Co...

AI summary This excerpt from a Nova Scotia regulatory proceeding discusses the methodology used in the Nova Scotia Power Cost of Service Study, focusing on comparing total allocated costs with revenues for each class to determine revenue to cost relationships, as shown in Exhibit 10 under proposed rates for the test year.

Nova Scotia Power Fuel and Purchased Power Related COS Methodology January 2022 p. pp. 78-81
Nova Scotia Power Fuel and Purchased Power Related COS Methodology January 2022 Forecast fuel costs for each test year are first apportioned to above-the-line (ATL) and below-the-line (BTL) classes using procedural step 1: 1. A portion of...

AI summary Nova Scotia Power outlines its methodology for allocating forecast fuel and purchased power costs between above-the-line (ATL) and below-the-line (BTL) classes. The company assigns a portion of fuel-related costs to specific BTL classes and unbundled tariffs, while allocating the remainder to ATL classes using modified procedural steps. Starting in 2023, the BUTU class will use the embedded cost allocation methodology for FAM customers.

2.0 RATEMAKING METHODOLOGY FOR UNMETERED p. p. 87
2.0 RATEMAKING METHODOLOGY FOR UNMETERED - 9 The ratemaking methodology is comprised of two steps: - 1. Determination of cost responsibilities of the Cost of Service Study (COSS)-based unmetered class, which is comprised of all costs of st...

AI summary The ratemaking methodology for unmetered classes involves determining cost responsibilities based on the Cost of Service Study (COSS), which includes street and area lighting and miscellaneous loads, followed by setting revenue responsibilities and calculating individual service rates.

2.1 Cost of Service Studies (COSS) p. p. 87
2.1 Cost of Service Studies (COSS) - From a broad cost treatment perspective, costs of unmetered services can be categorized as those - shared with other COSS classes and those assigned directly to the unmetered class.

AI summary The document discusses the categorization of costs for unmetered services within the context of Cost of Service Studies (COSS), distinguishing between shared costs and those directly assigned to the unmetered class.

2.2 Pricing of Unmetered Services p. p. 87
2.2 Pricing of Unmetered Services - The Street/crosswalk Lighting Study contained below in Section 3, focuses on determining capital - and maintenance costs. Revenue responsibilities for electricity, fixture maintenance, and fixture - capi...

AI summary This section discusses the pricing of unmetered services, focusing on how costs are allocated between shared and direct categories. It outlines a three-step costing process—functionalization, classification, and allocation—to determine the cost responsibilities of the Unmetered Class based on cost causation and infrastructure utilization.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 814 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 87-89
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 814 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2022-2024 GRA SR-01 Attachment 1d Page 5 of 11 COSS CA DR-53 Attachment 1 Page 24 of 62 Nova Scotia Power Unm...

AI summary The document discusses the determination of unmetered electricity rates for streetlight fixture maintenance, including the allocation of capital costs using the Cost of Service Study (COSS) methodology. The rates are structured with a demand charge and declining block energy charges, and are subject to changes in GRA proceedings.

Nova Scotia Power Unmetered Services Pricing January 2022 p. pp. 89-93
Nova Scotia Power Unmetered Services Pricing January 2022 1 3.0 UNMETERED SERVICE STUDY 2 3 Street and crosswalk lighting and area lights represent 95 percent of NS Power's unmetered service 4 units and the total revenue collected from unm...

AI summary The document outlines the methodology and schedules used in the 2022-2024 Unmetered Service Study by Nova Scotia Power, focusing on street and crosswalk lighting inventory levels, maintenance costs, depreciation, and capital-related expenses. It references the Cost of Service Study (COSS) and includes forecasted inventory levels based on actual data from 2021.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 818 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 91-92
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 818 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2022-2024 GRA SR-01 Attachment 1d Page 9 of 11 COSS CA DR-53 Attachment 1 Page 28 of 62 Nova Scotia Power Unm...

AI summary The document discusses the calculation of capital carrying costs for LED and non-LED fixtures using a tax-adjusted WACC rate, which varied between 8.12% in 2022 and 9.07% in 2024. It outlines a three-step process to determine these costs and references Schedule 5 and 5A for detailed tax-adjusted WACC calculations.

Section 6792 p. p. 98
- 3 describes the calculations for the ancillary services. All transmission charges shown are updated - 4 for costs and load determinants forecasted for 2022-2024 test years. The ancillary charges are - 5 based on 2019 operational actual d...

AI summary The text outlines the methodology for calculating ancillary services, noting that transmission charges are updated and based on 2019 operational data, with forecasts for 2022-2024 test years.

Nova Scotia Power Open Access Transmission Update February 2022 p. p. 117
Nova Scotia Power Open Access Transmission Update February 2022 1 In 2023, this includes $1,228.3 million of transmission assets plus $144.8 million of General 2 Property assets, plus $113.8 million of other assets such as deferred charges...

AI summary The document outlines the transmission assets and depreciation rates for Nova Scotia Power for the years 2022 to 2024. It details the inclusion of various asset types and adjustments made to the Cost of Service Study for the purpose of the Ontario Annual Transmission Tariff (OATT) revenue requirement.

1 2 3 p. p. 120
1 2 3 TABLE E1-1 Nova Scotia Power Inc. 2022 Transmission Tariff WACC Rate Millions of dollars 1) Interest (Carrying Cost) a) Weighted Average Cost of Capital - Pretax Proportion Cost Extended ST Debt 3.80% 0.84% 0.03% LT Debt 57.40% 4.98%...

AI summary The document provides a detailed breakdown of Nova Scotia Power Inc.'s 2022 Transmission Tariff WACC Rate, including components such as interest, weighted average cost of capital, income tax, and grants in lieu of property tax. It outlines financial figures and percentages related to transmission expenses and allocated amounts.

1 p. p. 120
1 Nova Scotia Power Inc. 2023 Transmission Tariff WACC Rate Millions of dollars 1) Interest (Carrying Cost) a) Weighted Average Cost of Capital - Pretax Proportion Cost Extended ST Debt 1.70% 0.90% 0.02% LT Debt 57.00% 4.97% 2.83% Common 4...

AI summary The document presents Nova Scotia Power Inc.'s 2023 Transmission Tariff WACC Rate, detailing the weighted average cost of capital, interest, tax considerations, and financial figures related to transmission costs and grants in lieu of property tax.

Section 6863 p. p. 124
Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary This document outlines Nova Scotia Power Inc.'s responses to data requests from the Cost of Service Study process, which is part of the NSUARB M11475 proceeding.

Section 6865 p. p. 124
Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary This document outlines NSPI's responses to data requests related to the Cost of Service Study process under NSUARB M11475. It provides insights into the procedural and analytical aspects of the study.

Section 6891 p. p. 124
Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary The document outlines the Cost of Service Study Process under NSUARB M11475, focusing on NSPI's responses to data requests related to the study.

Section 6893 p. p. 124
Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary This document outlines the responses provided by NSPI to data requests made by the CA in the context of the Cost of Service Study Process under NSUARB M11475.

INTRODUCTION AND PURPOSE p. pp. 165-166
INTRODUCTION AND PURPOSE - My name is Bickey Rimal, and I am an Assistant Vice President with Concentric Energy Advisors, Inc. - ("Concentric"). I provided evidence related to class cost of service, pricing and rate design matters - in the...

AI summary Bickey Rimal, an Assistant Vice President with Concentric Energy Advisors, Inc., provides rebuttal testimony in response to evidence filed by intervenors and consultants in the 2022 General Rate Application submitted by Nova Scotia Power Incorporated. The testimony addresses claims regarding the Minimum System Method, the Minimum System Study, pole sub-functionalization, cost allocation methods, and the Pole Attachment Rate calculation.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 893 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 166-168
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 893 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) COSS CA DR-61 Attachment 1 Page 5 of 19 CONCENTRIC EVIDENCE: GRA COSS ELEMENTS - the system. The minimum syst...

AI summary The document discusses two methods for allocating costs in distribution systems: the Zero Intercept Study and the Minimum Size Selection. The Zero Intercept Study uses regression analysis to estimate customer-related costs but is criticized for potential statistical unreliability. The Minimum Size Selection method relies on current minimum installation standards for distribution assets.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 896 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 169-170
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 896 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) COSS CA DR-61 Attachment 1 Page 8 of 19 CONCENTRIC EVIDENCE: GRA COSS ELEMENTS SECTION 3:

AI summary The document is a partially confidential appendix from a regulatory proceeding, focusing on the Cost of Service Study (COSS) and related evidence for the 2026-2027 GRA. It includes a section labeled 'CONCENTRIC EVIDENCE: GRA COSS ELEMENTS' and references 'SECTION 3'.

SYSTEM p. pp. 170-171
SYSTEM - Minimum System Costs are Customer-related - Dr. Pavlovic's cites Professor Bonbright's book Principles of Public Utility Rates as a basis for his - criticism of the use of the Minimum System Method to classify a portion of the dis...

AI summary The document discusses the classification of minimum system costs as customer-related versus demand-related, referencing Professor Bonbright's views. It argues that despite Dr. Pavlovic's criticism, Bonbright actually prefers classifying minimum system costs as customer-related. The text also addresses the relationship between distribution system costs and customer additions, emphasizing that some distribution costs are fixed and not directly tied to demand.

Relationship between Feeder Length and Customer Count p. pp. 171-172
Relationship between Feeder Length and Customer Count The Resource Insight evidence, filed on behalf of the CA, conducts regression analysis using length as a dependent variable and customer count as an independent variable and concludes t...

AI summary The Resource Insight evidence, filed on behalf of the CA, uses regression analysis to examine the relationship between feeder length and customer count, concluding there is no correlation. However, it is argued that the analysis fails to consider the location of feeders (urban, sub-urban, rural), which affects the number of customers served.

Figure 2: Relationship between Feeder Length and Customers by Geography p. p. 172
Figure 2: Relationship between Feeder Length and Customers by Geography Figure 2 illustrates that geographic dispersion of the customers and where they are located and not their peak demand drives the length of the feeder. As stated previo...

AI summary Figure 2 shows that the geographic dispersion of customers influences feeder length. Professor Bonbright prefers classifying minimum-sized distribution costs as customer-related. The Ontario Energy Board (OEB) links customer density to distribution asset costs, with specific percentages for different density ranges. NS Power has low customer density, which would lead to 60% of poles, conductors, and line transformers being classified as customer-related under OEB guidelines.

Application of the minimum sized conductor to the appropriate length p. p. 173
Application of the minimum sized conductor to the appropriate length - The assertion in the Resource Insight evidence that "Concentric applied the cost of a multiple- - conductor line such as triplex to the sum of the lengths of all the co...

AI summary The text refutes the claim that Concentric overstated the minimum conductor cost by applying the cost of a multi-conductor line to the total length of all conductors. It states that Concentric correctly applied the minimum-sized conductor to the appropriate circuit length, and the calculations are accurate based on the total span length.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 900 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 173-174
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 900 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) COSS CA DR-61 Attachment 1 Page 12 of 19

AI summary This document is a partially confidential appendix from a 2026-2027 GRA Direct Evidence submission, specifically COSS CA DR-61 Attachment 1, page 12 of 19. It includes a redacted image and appears to be part of a regulatory proceeding involving cost-of-service studies and related documentation.

Review of Cost Allocation Methods p. p. 177
Review of Cost Allocation Methods - Resource Insight requests a review of NS Power's cost allocation methods through a new - collaborative process. Resource Insight reasons that a review of cost allocation methods is needed - due to existi...

AI summary The document discusses the rejection of Resource Insight's proposal to review NS Power's cost allocation methods, citing that these issues are not new or immediate. It references past proceedings and argues that transitions in energy resources are likely to occur gradually, not overnight, and that vague claims about updating allocation methods lack concrete guidance.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 904 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 177-179
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 904 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) COSS CA DR-61 Attachment 1 Page 16 of 19 CONCENTRIC EVIDENCE: GRA COSS ELEMENTS - Fourth, Resource Insight do...

AI summary The text criticizes Resource Insight's recommendation for updating cost allocation methodologies, arguing that it lacks logical support and could lead to instability in cost allocation and rate design. The text emphasizes the importance of relying on precedents and the potential negative impact of abandoning them, including rate shocks for customers.

8 Figure 1 p. pp. 181-183
8 Figure 1 9 10 11 (b) Figure 2 provides a list of the selected feeder sections including general characterization 12 of the feeder (e.g., rural/suburban/urban, residential/mixed/commercial/industrial) PARTIALLY CONFIDENTIAL 2026-2027 GRA...

AI summary Figure 1 and Figure 2 are referenced in the document, with Figure 2 providing a list of selected feeder sections characterized by location and usage type. The document also mentions the Cost of Service Study Process (NSUARB M11475) and NSPI responses to CA data requests.

Section 6937 p. p. 183
Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary This document outlines the Cost of Service Study Process under NSUARB M11475 and includes NSPI's responses to data requests from the Commission. It focuses on the methodology and data analysis involved in the study.

Section 6939 p. p. 183
Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary The document pertains to the Cost of Service Study Process under NSUARB M11475, with NSPI providing responses to data requests from the Canadian Association (CA).

Section 6941 p. p. 183
2 (i) NS Power did not collect this information as part of this survey. 3 (ii) Please refer to Figure 2 above for the data related to the Phases in each Feeder 4 Section. 5 (iii) The underground conductor is in conduit. 6 (iv) NS Power did...

AI summary The text discusses the lack of data collection by NS Power in certain areas, and references a Cost of Service Study Process under NSUARB M11475, including responses to data requests by CA.

Section 6943 p. p. 183
3 (viii) The height and class of each pole with only secondary conductor is represented in 4 Figure 4 below. PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 914 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED)...

AI summary The text references a Cost of Service Study Process under NSUARB M11475 and mentions NSPI's responses to data requests from the Canadian Association. It also refers to a partially confidential appendix containing information about pole heights and classes.

Section 6945 p. p. 183
2 1 3 PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 915 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary This document is part of a partially confidential appendix from a regulatory proceeding related to the Cost of Service Study Process (NSUARB M11475), containing responses from NSPI to data requests by the Canadian Association.

Section 6954 p. p. 183
Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary This document outlines Nova Scotia Power Inc.'s responses to data requests from the Canadian Association regarding the Cost of Service Study process under NSUARB M11475.

Section 6956 p. p. 183
Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary The document pertains to the Cost of Service Study Process under NSUARB M11475, with NSPI providing responses to data requests from the Canadian Association.

Section 6968 p. p. 183
Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary The document outlines the Cost of Service Study Process under NSUARB M11475 and includes NSPI's responses to data requests from the Canadian Association. It focuses on the procedural aspects of the study and the information provided by NSPI.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 933 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 183
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 933 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary This document outlines NSPI's responses to data requests from the Canadian Association under the Cost of Service Study Process, as part of the NSUARB M11475 proceeding.

NON-CONFIDENTIAL p. p. 183
NON-CONFIDENTIAL 1 Request DR-73: 2 3 Please provide information on whether it is possible to estimate the difference in the cost 4 per customer by class for service lines, final line transformers, and meters. 5 6 Response DR-73: 7 8 It is...

AI summary The response to DR-73 explains that NS Power lacks detailed data to estimate cost differences per customer by rate class for service lines and final line transformers. However, it is possible to estimate meter costs per customer by class, as this information is provided in Exhibit 3(i) of the COSS.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 946 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 19
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 946 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary This document outlines NSPI's responses to data requests from the Canadian Association as part of the Cost of Service Study Process under NSUARB M11475. It is part of the 2026-2027 GRA Direct Evidence Appendix.

NON-CONFIDENTIAL p. p. 19
NON-CONFIDENTIAL 1 • Section 7.13.3 of the NSUARB Decision on NS Power's 2022-2024 GRA (M10431) which 2 approves the proposed changes to the interruptible credit. 3 - 4 Under the current 2023 COS, the interruptible credit costs of $11.796...

AI summary The text discusses the approval of changes to the interruptible credit under the 2022-2024 GRA (M10431) by the NSUARB, referencing the 2023 COS and the methodology used in the COSS. It also refers to how demand charges are determined and how they are set to match approved revenues.

REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 20-173
REDACTED (CONFIDENTIAL INFORMATION REMOVED) PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 947 of 1218 Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary This document outlines the Cost of Service Study Process under NSUARB M11475, detailing NSPI's responses to data requests from the Canadian Association. It is part of the 2026-2027 GRA Direct Evidence Appendix 12A(2).

Section 6986 p. p. 20
1 2 3 Date Filed: October 25, 2024 NSPI (CA) DR-77 Page 3 of 3 Not all groups of interruptible customers are necessarily interrupted during each interruption event. COSS CA DR-77 Attachment 1 Page 1 of 3 PARTIALLY CONFIDENTIAL 2026-2027 GR...

AI summary The document references a Cost of Service Study (COSS) and a General Rate Application (GRA) related to a Direct Evidence Appendix in a regulatory proceeding. It notes that not all interruptible customers are interrupted during each event, and includes a partially confidential attachment.

Section 6991 p. p. 20
4 5 6 2) The total value of interruptible demand on NSPI's system was estimated by multiplying the cost per kW by the system coincident interruptible demand served under the Interruptible Rider: 7 63 \ 202,000 kVA = 12,726,000. 8 9 10 11 1...

AI summary The text calculates the total value of interruptible demand on NSPI's system by multiplying the cost per kW by the system coincident interruptible demand. It then divides this value by the total non-coincident demand billing determinants to calculate a monthly credit of $3.43/kVA/month.

Section 7004 p. p. 28
Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests

AI summary This document outlines the Cost of Service Study Process under NSUARB M11475, with NSPI providing responses to data requests from the Commission (CA).

NON-CONFIDENTIAL p. p. 42
NON-CONFIDENTIAL 1 • effectiveness of DSM Programs designed for individual ate classes in reducing their 2 electricity usage. 3 4 Option Two: 5 6 The system cost benefit for each individual class was defined as the cost savings a class wou...

AI summary The text discusses the effectiveness of DSM programs for different electricity rate classes, analyzing the system cost benefits and changes in cost distribution when one class does not participate. The split of cost savings shifted from 75/25 to 93.2/7.2, with changes in non-fuel embedded costs impacting participating and non-participating classes differently.

Criteria p. pp. 51-52
Criteria - Cost Causation defined by proximity of arithmetic average of multipoint peaks under various CP methods to annual system peak (or 1CP) - Cost Redistribution Effect among rate classes measured as % change in annual revenues - Stab...

AI summary The text outlines criteria for evaluating cost causation and redistribution effects in rate-making processes, referencing proximity of arithmetic averages to annual system peaks, stability of cost allocation results, and precedents from other Canadian jurisdictions. It also references a partially confidential attachment from a proceeding.

Findings p. pp. 52-53
Findings - The winter peak methods provide for more stable cost allocation results from year to year but rank worse under cost causation criterion than corresponding unconstrained methods. - oIt takes as many as 88CP to match stability off...

AI summary The winter peak methods provide more stable cost allocation results but perform worse under cost causation criteria. The average cost redistribution effects on the Domestic class are minor, while effects on other classes are more significant. Analysis using ANL yields more volatile results.

Cost of Service Study Process (NSUARB M11475) NSPI Responses to IG Data Requests p. pp. 63-110
Cost of Service Study Process (NSUARB M11475) NSPI Responses to IG Data Requests 1 Request DR-1: 2 3 Please provide 3-5 years of historical hourly load data for total system and by customer class 4 (that aligns with CP allocator input data...

AI summary NSPI provides responses to data requests regarding historical hourly load data for different customer classes. The data is available for large customer classes but estimated for others using load research samples. The response also outlines the methodology used in the Cost of Service Study (COSS) process.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1022 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 91
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1022 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475) NSPI Responses to IG Data Requests

AI summary This document outlines NSPI's responses to data requests related to the Cost of Service Study process under NSUARB M11475. It provides information relevant to the regulatory review of NSPI's cost structures and service delivery.

NON-CONFIDENTIAL p. p. 91
NON-CONFIDENTIAL - 1 Capital costs match 2022 Evergreen assumptions. 2 • All dollar amounts in the table are in 2021 dollars. 2022 Evergreen IRP assumptions were - 3 adjusted from 2022 dollars to 2021 dollars using an inflation rate of 4.0...

AI summary The document discusses capital costs aligned with the 2022 Evergreen IRP assumptions, adjusted for inflation, and highlights differences between the current interruptible credit and levelized cost calculations based on updated capital costs from the 2022 Evergreen IRP.

COSS IG DR-10 Attachment 1 Page 1 of 6 p. pp. 91-99
COSS IG DR-10 Attachment 1 Page 1 of 6 Determination of Unit Avoided Marginal Annual Cost of Load Served ($/kW, in 1994 Annual Cost of Load Served ($/kW, in 1994 Annual Avoided Cost rounded to nearest dollar in 1996 % Change from 1996 Benc...

AI summary The document presents calculations related to interruptible credit and annual cost of load served for different years, including comparisons between 1996 and test years 2022-2024. It includes figures on avoided costs, revenue credits, and demand coincident with system peaks. These calculations are used to evaluate financial impacts and system reliability.

Input Assumptions p. p. 99
Input Assumptions - 1. Capital costs are for a 50MW combustion Turbine (Frame) from E3 Resource Option Study using 2021 nominal values; - 2. Fixed Operating costs are derived from E3 Resource Option Study using 2021 nominal values - 3. Scr...

AI summary The input assumptions outline capital and operating costs for a 50MW combustion turbine based on 2021 values from the E3 Resource Option Study. Assumptions include the incorporation of AFUDC into system costs, no administrative overhead, and annual escalation of FO&M costs at 2%.

Peaker Deferral Method Summary Outputs Updated 7/12/2021 p. p. 99
Peaker Deferral Method Summary Outputs Updated 7/12/2021 Year Equivalent Escalating Series ($/kW-Yr) Levelized ($/kW-Yr) 2021 $ 101.44 $ 130.98 2022 $ 103.47 $ 130.98 2023 $ 105.54 $ 130.98 2024 $ 107.65 $ 130.98 2025 $ 109.81 $ 130.98 202...

AI summary The document presents a table showing the Equivalent Escalating Series and Levelized costs per kW-year from 2021 to 2045, with the Levelized cost remaining constant at $130.98 throughout the period. The Equivalent Escalating Series cost increases annually.

Resource Cost, Performance, & Financing p. p. 99
Resource Cost, Performance, & Financing Performance Inputs Financing Performance Inputs Financing System Depreciable Lifetime 35 % Financed w/ equity % Financed w/ debt Ongoing Costs Debt Interest rate Fixed O&M Costs ($/kW-yr) $17.69 Cost...

AI summary The document presents a table outlining performance inputs and financing details for a system, including system cost, depreciation lifetime, financing percentages, interest rates, tax assumptions, and levelized costs. It includes data on capital costs, O&M expenses, and PRM adjustments.

COSS IG DR-10 Attachment 1 Page 5 of 6 p. p. 99
r>$1,597,251 $1,597,251 $1,597,251 $1,597,251 $1,597,251 $1,597,251 $1,597,251 $1,597,251 $1,597,251 $1,597,251 $1,597,251 $1,597,251 $1,597,251 $1,597,251 $1,597,251 CCA Schedule 3.06% 2.81% 2.59% 2.38% 2.19% 2.02% 1.85% 1.71% 1.57% 1.44%...

AI summary The text contains a series of financial figures and percentages, likely related to depreciation, tax savings, revenue, expenses, and operating profit over multiple years. The data appears to be part of a financial schedule or report, possibly from a regulatory proceeding.

CONFIDENTIAL (Attachments Only) p. p. 110
CONFIDENTIAL (Attachments Only) 1 Response DR-18: 2 3 4 (a) Written Responses: 5 (i) For the effect of MEU proposal to align OATT methodology with COS, please refer 6 to Attachment 1. The effect on individual rate class costs is around 0.0...

AI summary The response discusses the effect of aligning OATT methodology with COS, noting a negligible impact of 0.01 percent on individual rate class costs. It also references model requests and spreadsheet files related to NSP's unbundled service proposal and PHP ATL/BTL analyses, while indicating that certain analyses have not yet been conducted due to resource constraints.

CONFIDENTIAL (Attachments Only) p. p. 110
CONFIDENTIAL (Attachments Only) 1 (iv) Please refer to the following spreadsheet uploaded to the FTP site on October 31, 2 2024: 3 • 00-GRA 2023 COSS 2. Inter Gen (Lingan TC) CONF 4 • 00-GRA 2023 BCF 2. Inter Gen (Lingan TC) CONF PARTIALLY...

AI summary This document references a Cost of Service Study Process (NSUARB M11475) and NSPI's responses to data requests from an Independent Generator (IG). It also mentions spreadsheet files uploaded to an FTP site on October 31, 2024, related to a GRA (Generation Resource Assessment) for 2023 and a BCF (Balancing Contract Framework).

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1053 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 119
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1053 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475) NSPI Responses to MEU Data Requests

AI summary This section of the document outlines the Cost of Service Study Process under NSUARB M11475 and includes NSPI's responses to data requests from the Market Efficiency Unit (MEU). The content is part of the 2026-2027 GRA Direct Evidence Appendix.

NON-CONFIDENTIAL p. p. 119
NON-CONFIDENTIAL 1 Fixed-generation BUTU and RtR rates are calculated by the same COSS-based embedded 2 cost methodology, however, there is a phase-in adjustment applied to the BUTU rates in 3 2023 to limit the forecast revenue increase to...

AI summary The text explains the methodology for calculating BUTU and RtR rates using a COSS-based embedded cost approach, with a phase-in adjustment in 2023 to limit revenue increases. It also outlines how demand and energy charges are calculated, and summarizes the basis for FAM and non-FAM costs in different rate categories.

BUTU RtR Municipal p. p. 119
BUTU RtR Municipal FAM-related – "Energy-related Purchased Power and Fuel Cost" "Fuel Cost" "Energy Charge" Energy Allocated MWh Marginal/Avoided Cost Allocated MWh "Energy-related Fixed Generation Cost" "Fixed Cost Adder" "Energy Charge"...

AI summary The table compares different cost allocation methods across BUTU, RtR, and Municipal categories, including energy-related and demand-related costs. It outlines various cost components such as 'Energy-related Fixed Generation Cost,' 'Demand-related Purchased Power,' and 'Average NS Power Unit Cost.' The document is part of a confidential appendix in a regulatory proceeding.

Cost of Service Study Process (NSUARB M11475) NSPI Responses to PHP Data Requests p. pp. 119-186
Cost of Service Study Process (NSUARB M11475) NSPI Responses to PHP Data Requests 1 Request DR-1: 2 3 With reference to NS Power's initial position document Issue # 1a please indicate which 4 specific generation assets NS Power believes wi...

AI summary NSPI responds to a data request regarding the classification of generation assets in the Cost of Service Study. It states that only steam units operating below future system load factors and not retiring before 2030 (Tufts Cove 1, 2, and 3) will be classified based on annual capacity factors. Other units, like LM6000 and combined cycle units, will retain their current classification.

Section 8573 p. p. 119
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1059 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475) NSPI Responses to PHP Data Requests

AI summary This document relates to the Cost of Service Study Process (NSUARB M11475) and includes NSPI's responses to PHP Data Requests. It is part of a partially confidential appendix in a regulatory proceeding.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1060 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 119
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1060 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475) NSPI Responses to PHP Data Requests

AI summary This document outlines the Cost of Service Study Process under NSUARB M11475, with NSPI providing responses to data requests related to Peak Hour Pricing (PHP). The content highlights the procedural and analytical aspects of the study.

NON-CONFIDENTIAL p. p. 119
NON-CONFIDENTIAL exceed the number of operating hours typically expected from a peaking unit4 1 there remains 2 energy-related cost causation behind investment in these units. However, a significant 3 reduction in operating hours of such u...

AI summary NS Power argues that adjusting the classification method of peaking units from system load factor to individual unit capacity factor better reflects energy-related cost causation. The ELCC approach, which classifies more costs to demand as operating hours increase, is criticized for potentially misrepresenting cost causation for base load units.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1061 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 119
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1061 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475) NSPI Responses to PHP Data Requests

AI summary This document outlines the Cost of Service Study Process as part of the NSUARB M11475 proceeding, with NSPI providing responses to data requests related to Peak Hour Pricing (PHP).

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1062 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 119
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1062 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475) NSPI Responses to PHP Data Requests

AI summary This document outlines the Cost of Service Study Process under NSUARB M11475 and includes NSPI's responses to PHP Data Requests, indicating a regulatory proceeding focused on cost analysis and data provision.

Section 8588 p. p. 119
Cost of Service Study Process (NSUARB M11475) NSPI Responses to PHP Data Requests

AI summary The document pertains to the Cost of Service Study Process under NSUARB M11475, focusing on NSPI's responses to data requests related to Peak Hour Pricing (PHP).

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1068 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 119
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1068 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475) NSPI Responses to PHP Data Requests

AI summary The document discusses the Cost of Service Study Process under NSUARB M11475 and outlines NSPI's responses to PHP Data Requests, which are part of the 2026-2027 GRA Direct Evidence Appendix 12A(2).

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1069 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 119
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1069 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475) NSPI Responses to PHP Data Requests

AI summary This document outlines NSPI's responses to PHP data requests in the context of the Cost of Service Study Process under NSUARB M11475. It provides information relevant to the regulatory analysis of Nova Scotia Power Inc.'s operations and financial considerations.

Section 8597 p. p. 119
Cost of Service Study Process (NSUARB M11475) NSPI Responses to PHP Data Requests

AI summary This document outlines NSPI's responses to data requests related to the Cost of Service Study Process under NSUARB M11475, focusing on PHP (Peak Hour Pricing) data.

REDACTED COSS PHP DR-13 Attachment 1 Page 1 of 2 p. p. 119
REDACTED COSS PHP DR-13 Attachment 1 Page 1 of 2 Date Hour NSR without PHP NSR with PHP Residential Residential TOU Small General General Large General Small Industrial Medium Industrial Large Industrial Interruptible Large Industrial Firm...

AI summary This table provides data from a cost of service study (COSS) related to the Public Health Program (PHP) in Nova Scotia. It includes various metrics such as NSR (Net Service Revenue) values, residential time-of-use (TOU) rates, and other industrial and general rate categories across different dates and hours.

Section 8621 p. p. 119
Cost of Service Study Process (NSUARB M11475) NSPI Responses to PHP Data Requests

AI summary This document outlines NSPI's responses to data requests from the Public Health Program (PHP) related to the Cost of Service Study Process under NSUARB M11475.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1089 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 119
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1089 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475) NSPI Responses to PHP Data Requests

AI summary This document outlines NSPI's responses to data requests from the PHP as part of the Cost of Service Study Process under NSUARB M11475. It is part of the 2026-2027 GRA Direct Evidence Appendix.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1094 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 119
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1094 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475) NSPI Responses to PHP Data Requests

AI summary The document refers to the Cost of Service Study Process under NSUARB M11475 and outlines NSPI's responses to data requests from the Public Health Program. It is part of the 2026-2027 GRA Direct Evidence Appendix.

NON-CONFIDENTIAL p. p. 119
NON-CONFIDENTIAL 1 Request DR-19: 2 3 Please provide a detailed description of the current functionalization, allocation, and 4 classification of the Maritime Link in the current COSS. 5 6 Response DR-19: 7 8 The Maritime Link (ML) imports...

AI summary The response to DR-19 explains that the Maritime Link imports are divided into firm, capacity-backed energy, and non-firm Surplus Energy. Import costs are functionalized to Generation and classified based on system load factors and energy demand. Allocation methods are detailed, with demand costs distributed according to coincident contribution to system peaks and energy costs based on annual or monthly energy requirements.

15 4. COST OF SERVICE CLASSIFICATION OF THE MARITIME LINK p. p. 173
15 4. COST OF SERVICE CLASSIFICATION OF THE MARITIME LINK 16 The CA proposes, supported by MEUNSC, the following: - 17 (a) For the purposes of setting the Base Cost of Fuel for each year of the Rate 18 Stability Period, the Maritime Link c...

AI summary The CA proposes classifying Maritime Link costs as NS Power-owned hydro generation for the Base Cost of Fuel during the Rate Stability Period. The Parties agree to a consultative process to address cost allocation and will file a report with the Board by March 31, 2017. Disagreements will be resolved by the Board, and any changes to classification will not be retroactive and will not be implemented before January 1, 2020.

Cost of Service Classification of the Maritime Link Strawman Report p. p. 173
Cost of Service Classification of the Maritime Link Strawman Report 1 The purpose of this Report is to summarize the various options available with respect to the Cost 2 of Service allocation of the Maritime Link for the purposes of facili...

AI summary This report outlines the cost of service classification options for the Maritime Link, aiming to facilitate consensus among stakeholders. The report emphasizes that cost of service studies do not affect revenue recovery but focus on fair revenue apportionment among customer classes. NS Power seeks input by January 27, 2017, and plans to discuss the matter in a February 2017 meeting.

Cost of Service Classification of the Maritime Link Strawman Report p. pp. 175-176
Cost of Service Classification of the Maritime Link Strawman Report 1 The Company also proposed that the Nova Scotia Block be treated in the same manner as NS 2 Power-owned hydro generation. This means that its costs would be classified to...

AI summary The document discusses the proposed cost of service classification for the Nova Scotia Block, suggesting it be treated similarly to NS Power-owned hydro generation. Energy and demand costs would be allocated based on system load factors and coincident system peaks, aligning with NS Power's COSS practices.

Cost of Service Classification of the Maritime Link Strawman Report p. pp. 178-180
Cost of Service Classification of the Maritime Link Strawman Report 1 should be allocated in proportion to the average of peak demands for the three winter months.[9](#page-179-0) 2 3 4 Mr. Wallach expressed concern that the Hydro-allocati...

AI summary The document discusses the allocation of costs for the Maritime Link project, with Mr. Wallach expressing concerns about the Hydro-allocation approach and its departure from past practices. NS Power argues that its benefits-based approach is consistent with the 2013 COS proceeding and the approved methodology, while also highlighting the distinctiveness of the Nova Scotia Block in terms of service delivery and costing treatment.

Section 8664 p. p. 181
Cost of Service Study Process (NSUARB M11475) NSPI Responses to PHP Data Requests

AI summary The document outlines NSPI's responses to data requests from the Public Health Program (PHP) related to the Cost of Service Study Process (NSUARB M11475).

Section 8679 p. p. 186
Cost of Service Study Process (NSUARB M11475) NSPI Responses to PHP Data Requests

AI summary The document outlines NSPI's responses to data requests from the Public Health Program (PHP) related to the Cost of Service Study (COSS) process under NSUARB M11475.

REDACTED p. p. 186
REDACTED 1 Request DR-30: 2 3 Provide a model run that incorporates all of NSPI's lastest changes to its proposed COSS 4 positions that would apply post 2030 (ie. incorporating all currently planned plant fuel 5 conversions and all plant r...

AI summary A request (DR-30) is made for a model run that incorporates NSPI's latest changes to its proposed Cost of Service Study (COSS), including post-2030 plant fuel conversions, retirements, and the treatment of PHP load as an above-the-line customer. The response refers to confidential attachments that have been removed due to confidentiality.

Cost of Service Study Process (NSUARB M11475) NSPI Responses to SBA Data Requests p. pp. 26-186
Cost of Service Study Process (NSUARB M11475) NSPI Responses to SBA Data Requests 1 (M10431) and shared carrying cost and taxes are functionalized and allocated to customer 2 classes using the COSS model provided as SR-01 Att 03 PCON UPDAT...

AI summary The document discusses the Cost of Service Study (COSS) process as part of the NSUARB M11475 proceeding, with NSPI providing responses to data requests from the SBA. The COSS model is referenced in the context of allocating shared carrying costs and taxes to customer classes.

Section 8685 p. p. 186
Cost of Service Study Process (NSUARB M11475) NSPI Responses to SBA Data Requests

AI summary This document outlines Nova Scotia Power Inc.'s responses to data requests from the SBA related to the Cost of Service Study Process under NSUARB M11475. It provides insights into the regulatory proceedings and data submission requirements.

Section 8690 p. p. 186
Cost of Service Study Process (NSUARB M11475) NSPI Responses to SBA Data Requests

AI summary The document outlines NSPI's responses to data requests from the Stakeholder Board of Appeal (SBA) regarding the Cost of Service Study Process (NSUARB M11475). It focuses on the procedures and data provided in response to the SBA's inquiries.

NON-CONFIDENTIAL p. p. 186
NON-CONFIDENTIAL 1 Request DR-4: 2 3 How are the costs of primary vs secondary distribution classified, to demand or energy? 4 5 Response DR-4: 6 7 Please refer to page 3 of Exh 5 of 2023 COSS1 for the distribution cost classification resu...

AI summary The response to DR-4 explains that NS Power classifies distribution costs exclusively to demand, customer, or both, but not by primary vs. secondary voltage levels. Classification factors are based on investment in poles and wires, and specific percentages are provided for OM&G costs.

NON-CONFIDENTIAL p. pp. 186-20
NON-CONFIDENTIAL - 1 Lines, are classified to demand and customer as determined in Exh 3c, Exh 3e, and Exh 3g. Please - 2 refer to section "3. Distribution system sub-functionalization and classification" of the evidence - 3 filed by Conce...

AI summary The document discusses the classification of various infrastructure investments into demand and customer categories, based on evidence provided in the 2023-2024 GRA. Specific classifications include poles and wires, substations, and streetlights, with references to attachments and exhibits for detailed breakdowns.

MEMORANDUM p. pp. 20-21
MEMORANDUM TO: Nova Scotia Power, Inc. FROM: Bickey Rimal, Concentric Energy Advisors DATE: January 2022 RE: GRA Allocated Cost of Service and Miscellaneous Charges Matters The purpose of this memorandum is to provide the results of: - Con...

AI summary This memorandum from Concentric Energy Advisors to Nova Scotia Power Inc. reviews the company's allocated class cost of service (CCOS) model, concluding that it is reasonable, follows industry-accepted methodology, and produces accurate results. The model uses a three-step process: cost functionalization, classification, and allocation, which are described in detail.

2. Review of certain deferred matters from 2013 COSS Proceeding p. pp. 21-22
2. Review of certain deferred matters from 2013 COSS Proceeding When NS Power updated its COSS as a part of the compliance filing after the NSUARB issued its decision on the 2013 COSS Proceeding, several items were slated for further revie...

AI summary The document reviews deferred matters from the 2013 COSS Proceeding, including the classification of Lingan Units 1 and 2 as base load units and the treatment of miscellaneous revenues. NS Power continues to treat the units as base load due to their operational limitations and provides a report on the allocation of miscellaneous revenues, which is deemed reasonable.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1149 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 22-24
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1149 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) COSS SBA DR-4 Attachment 1 Page 4 of 7 Concentric first calculated the replacement costs of all poles at eac...

AI summary Concentric calculated the replacement costs of poles and conductors in feeder sections by voltage level, allocating costs between primary and secondary based on cost ratios. This approach was applied to both overhead and underground conductors using data provided by the Company.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1151 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 24-25
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1151 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) COSS SBA DR-4 Attachment 1 Page 6 of 7 The underlying data used to calculate the fee are cost based and the...

AI summary The document outlines the methodology for calculating pole attachment fees by NS Power, based on cost considerations. The fee is determined by allocating indirect and direct costs associated with poles between NS Power and third-party attachers. The allocation is based on the proportion of usable space occupied by non-power attachments, with a final adjustment for the average number of non-power attachments per pole. The fee is deemed reasonable and minimizes cross subsidization.

COSS SBA DR-6 Attachment 1 Page 16 of 24 p. p. 26
COSS SBA DR-6 Attachment 1 Page 16 of 24 536700 RELOCATION EXPENSE 560050 GRANTS IN LIEU OF TAXES 562050 DEPRECIATION EXPENSE 562100 ACCRETION EXPENSE 563050 AMORTIZATION OF DEFERRED TAXES 563100 REGULATORY AMORTIZATION UNUSUAL ITEMS DEFER...

AI summary The document presents a list of expense and income categories, including depreciation, interest, taxes, and grants, as well as a line of business segment description. It appears to be a financial statement or related regulatory filing, with some sections redacted due to confidentiality.

COST CENTRE SEGMENT p. p. 26
COST CENTRE SEGMENT Cost Centre Segment Value Cost Centre Segment Description 000 DEFAULT 001 MAINTENANCE 002 OPERATIONS 003 ADMINISTRATION 004 ENVIRONMENT 005 SAFETY 006 PROCUREMENT 007 CUSTOMER CARE CENTRE 008 HUMAN RESOURCES 009 BILLING...

AI summary The document presents a table listing cost centre segments and their descriptions, including categories such as maintenance, operations, administration, and others. This information is part of a partially confidential appendix in a regulatory proceeding.

Agenda p. pp. 93-94
Agenda - Introduction of Elenchus as an expert subject to the duties of an expert - Preliminary Discussion - Board Directive GRA - Meeting Objectives - Consultant Overview of Electric Utility Cost of Service Processes

AI summary The agenda includes the introduction of Elenchus as an expert, a preliminary discussion involving a Board Directive and meeting objectives, and an overview of electric utility cost of service processes by a consultant.

Board Directive - GRA p. pp. 94-95
Board Directive - GRA The 2022-2024 GRA Settlement Agreement provided as follows regarding the Line Loss Study and COSS: NS Power must file a Cost of Service Study and a Line Loss Study prior to filing its next GRA or December 31, 2025, wh...

AI summary The 2022-2024 GRA Settlement Agreement requires NS Power to file a Cost of Service Study and Line Loss Study, with stakeholder engagement, prior to the next GRA or December 31, 2025. The NSUARB directed semi-annual progress reports starting January 31, 2024. Costs may be deferred and recovered through future rates with Board approval.

The GRA Decision provided as follows: p. pp. 95-96
The GRA Decision provided as follows: [361] In this proceeding, several concerns were raised about NS Power's cost of service methodologies applied in this GRA. These concerns included the use of the minimum system study for the classifica...

AI summary The GRA Decision addresses concerns about NS Power's cost of service methodologies, including the use of the minimum system study and LF/3CP method for cost classification. The Board agrees to update the COSS and Line Loss Study to reflect recent system developments and directs semi-annual progress reports starting in 2024.

Meeting Objectives p. pp. 96-98
Meeting Objectives - Introduce experts - Develop a shared understanding of industry practices re: cost of service - Share information - Collaborate with intent to develop initial issues list and identify topics requiring further examinatio...

AI summary The meeting objectives focus on introducing experts, discussing industry practices related to cost of service, sharing information, and collaborating to develop an initial issues list. The meeting will take place on a without prejudice basis and will not be recorded without consent.

Agenda p. pp. 98-116
Agenda - 1. Introduction and Project Description - 2. Generic Background on Cost Allocation Methodologies - 3. NS Power's Existing COSS Methodology - 4. Effect of Transitional and Technological Changes on COSS - 5. Survey - 6. Next Steps

AI summary The agenda outlines the topics to be discussed in a regulatory proceeding, including an introduction, background on cost allocation methodologies, NS Power's existing cost of service study (COSS) methodology, the impact of transitional and technological changes on COSS, a survey, and next steps.

Elenchus Research Associates Inc. ("Elenchus") p. pp. 99-100
Elenchus Research Associates Inc. ("Elenchus") - John Todd, President - Founded 1980 - Andrew Blair joined Elenchus in 2016 - Transferred to Power Advisory in 2023 - Elenchus has conducted Cost of Service/Cost Allocation and Rate Design (C...

AI summary Elenchus Research Associates Inc., founded in 1980, has conducted various regulatory and utility-related reviews. Key personnel include John Todd, President, and Andrew Blair, who joined in 2016 and transferred to Power Advisory in 2023. Elenchus has worked with multiple regulators and utilities, including NB Power and ENMAX, and has assisted with rate impact and bill analysis for E1, integrating with NSP's COS model. A strategic alliance was formed with Power Advisory in 2021.

Elenchus Approach to the Review p. pp. 100-101
Elenchus Approach to the Review - Facilitate NS Power's Stakeholder Process ‐ technical sessions, with goal being to: - Assist in clarifying and understanding the concerns and views of all parties - Distinguish between interest‐based and p...

AI summary The Elenchus Approach to the Review outlines a structured process to facilitate NS Power's stakeholder engagement, clarify stakeholder concerns, and review NS Power's cost allocation methodologies. It also includes a survey of utility practices in Canada and the US, and the preparation of evidence for filing with the Nova Scotia Utility and Review Board.

Purpose of the January 18th Session (Kick-off) p. pp. 101-102
Purpose of the January 18th Session (Kick-off) - Canvass stakeholders to determine the parts of NS Power's COSS methodology that need to be explained in greater detail in future tech sessions. Future technical sessions will assist stakehol...

AI summary The January 18th session aims to engage stakeholders in reviewing NS Power's Cost of Service Study (COSS) methodology, identify areas requiring updates due to developments since 2013, and determine the implications of proposed changes on allocated costs. The session will also establish a timeline for future discussions.

Reference Documents p. pp. 103-104
Reference Documents - As baseline, NARUC, Electric Utility Cost Allocation Manual, January 1992. What has changed in the last 30 years? Comments invited. - Cost Allocation Modernization references, such as: - Electric Cost Allocation for a...

AI summary The document references historical and modern cost allocation practices, including the NARUC Electric Utility Cost Allocation Manual and recent stakeholder suggestions. It also cites previous Nova Scotia Power evidence, NSUARB decisions, and discussions from past COSS projects, including the Maritime Link Project and deferred projects from 2014–2016.

Cost Allocation Methodologies – Conceptual Overview p. pp. 104-105
Cost Allocation Methodologies – Conceptual Overview - Directly allocated costs Exclusive use by class (rare) - Shared Utility Assets and Expenses - > We all benefit from sharing - > Electrons flow through common infrastructure - Cost Causa...

AI summary This section provides an overview of cost allocation methodologies, emphasizing the use of cost causality as the main criterion for allocating shared utility assets and expenses. The goal is to achieve fair and reasonable rates, with rate design being a subsequent step that may incorporate policy considerations.

Classification p. pp. 109-110
Classification - > Demand-related costs - > Facilities determine CAPACITY of energy flows - Higher capacity requires larger "pipe" - > Energy-related costs - More energy consumed means more fuel to produce - > Customer-related costs - ➤ Mo...

AI summary The text discusses different types of costs related to energy systems, including demand, energy, and customer-related costs. It highlights that higher capacity requires larger infrastructure, more energy consumption increases fuel needs, and more customers require additional meters and service. There is also a question raised about the definitions of capacity/demand (MW) versus energy (kWh).

Allocation p. pp. 110-111
Allocation - Costs allocated to customer classes (cost drivers correspond to cost classifications) - Primary Allocators (costs shared by proportionate use) - ➤ kWh (energy including losses) - > kW (demand including losses) - > # of custome...

AI summary The document discusses the allocation of costs to customer classes based on various cost drivers, including kWh, kW, number of customers, and direct assignments such as streetlights. It outlines methods for allocating shared costs proportionally and compares total allocated costs to class revenue to assess revenue/cost ratios.

Functionalization p. pp. 116-117
Functionalization - > Approach very standardized in the electricity industry - > NS Power's functions are consistent with industry standard definitions - ➤ Main functions include generation, transmission, distribution and retail - > Costs...

AI summary The document discusses the functionalization approach used by NS Power in the electricity industry, aligning with standard definitions. It outlines main functions such as generation, transmission, distribution, and retail, and explains that costs are assigned to these functions based on the utility's system of accounts. Some allocation between functions is required, such as between transmission and distribution substation costs.

Generation Classification Methodologies p. pp. 119-120
Generation Classification Methodologies - Variable costs (per MWh) are energy related - > Such as fuel costs - > How to classify capital and other fixed costs? - ➤ NARUC Manual (January 1992) identifies many acceptable options to use for t...

AI summary The text discusses methods for classifying variable and fixed costs in generation, referencing the NARUC Manual and exploring implications of modernization on cost allocation and rate design, particularly in relation to the 4D's (Decentralization, Decarbonization, Democratization, Digitization).

NS Power's Generation Method p. pp. 123-124
NS Power's Generation Method - ➤ NS Power uses the System Coincident Load Factor to determine energy-related and capacity-related generation costs, though there are differences among types of generation - > Energy-related generation costs:...

AI summary NS Power determines energy and capacity-related generation costs using the System Coincident Load Factor. Energy-related costs are allocated based on energy (MWh), while demand-related costs are allocated using three winter month peaks and annual class peaks for distribution costs.

Transmission Classification / Allocation Methodologies p. pp. 124-125
Transmission Classification / Allocation Methodologies - ➤ Transmission is treated as an extension of generation and is classified to energy and demand based on the system load factor - ➤ Illustrative example: - > Allocation same as genera...

AI summary The document discusses transmission classification and allocation methodologies, treating transmission as an extension of generation and classifying it based on system load factor. It also raises questions about the implications of modernization and the 4D's impact on cost allocation and regulatory decisions.

Distribution Classification / Allocation Methodologies p. pp. 125-126
Distribution Classification / Allocation Methodologies - > NS Power is consistent with standard practices - > Typical approach across utilities: - ➤ Use Minimum System Method for classification of lines and transformers - ➤ Multiple-CP for...

AI summary The text discusses NS Power's use of standard classification and allocation methodologies in distribution, including the Minimum System Method, Multiple-CP, and NCP allocation. It raises a question about the implications of modernization, specifically whether the 4D's impact on CA or RD is causal or driven by policy.

Above-the-Line / Below-the-Line p. pp. 126-127
Above-the-Line / Below-the-Line - In NS Power's methodology, costs are allocated Above‐the‐Line after determining the cost responsibility of Below‐the‐Line customers - This review will focus on Above‐the‐Line rate classes

AI summary The document discusses NS Power's methodology for allocating costs Above-the-Line after determining the cost responsibility of Below-the-Line customers. The review will focus on Above-the-Line rate classes.

Agenda p. pp. 128-143
Agenda - 1. Introduction and Project Description - 2. Generic Background on Cost Allocation Methodologies - 3. NS Power's Existing COSS Methodology - 4. Effect of Transitional and Technological Changes on COSS - 5. Survey - 6. Next Steps

AI summary The agenda outlines the topics to be discussed in a proceeding, including the introduction of a project, background on cost allocation methodologies, NS Power's existing cost of service study methodology, effects of transitional and technological changes on the methodology, a survey, and next steps.

Baseload Generation Classification to Demand p. p. 139
Baseload Generation Classification to Demand Table 6: Classification of Base Load Steam generation costs to demand Percent Classified as demand Number of Utilities Percent of Utilities 90 - 100 3 27 70 - 90 0 0 50 - 70 0 0 35 - 50 3 27 Bel...

AI summary The table classifies the percentage of base load steam generation costs attributed to demand by Nova Scotia utilities. It shows that 27% of utilities classified between 90-100% and 35-50% of costs as demand, while 35% of utilities reported 'NA' for this classification.

Transmission Classification to Demand p. p. 140
Transmission Classification to Demand Table 7: Classification of transmission costs to demand Percent Classified as demand Number of Utilities Percent of Utilities 90 - 100 7 63 70 - 90 0 0 50 - 70 0 0 35 - 50 2 18 NA 2 18 Totals 11 \ Nova...

AI summary The document presents a table classifying the percentage of transmission costs attributed to demand by various utilities. Nova Scotia Power is noted as being in the 35-50% range, while other utilities are categorized into different ranges, with 63% of utilities falling into the 90-100% range.

Recap the identified issues: p. pp. 143-144
Recap the identified issues: - Review the aspects of the COSS methodology that need to be explained in future sessions - Review the issues to focus on in future sessions - What other matters need to be addressed in future sessions? - Pleas...

AI summary The document outlines the need to review aspects of the COSS methodology and identify issues to focus on in future sessions. It also asks for other matters to be addressed and requests closing comments on the process and potential improvements for future sessions.

Cost Allocation p. p. 173
Cost Allocation The amount of total costs to be allocated to individual rate classes.

AI summary The document discusses the allocation of total costs to individual rate classes, focusing on how costs are distributed among different customer categories for the purpose of rate setting.

NS Power's COS Spreadsheet Calculation Process p. pp. 178-179
NS Power's COS Spreadsheet Calculation Process - Data Input Collection: Input Data, Input Data Two - Class Usage: Exh 9a 9c - o Usage based allocator factors in Exh 8a - Rate Base apportionment to rate classes - o Functionalization: Exh 2...

AI summary This document outlines NS Power's Cost of Service (COS) spreadsheet calculation process, including data input collection, class usage, rate base apportionment, cost apportionment, and cost summaries. Exhibits and external sources are referenced for methodology and analysis.

Changes to COS Methodology since 1995 p. pp. 180-181
Changes to COS Methodology since 1995

AI summary This section discusses changes to the Cost of Service (COS) methodology since 1995, focusing on evolving regulatory approaches and practices in Nova Scotia's energy sector.

1995 COS Generic Hearing (NSPI864) p. pp. 181-182
1995 COS Generic Hearing (NSPI864) - Classification of generation and transmission should reflect the intent of the asset: - o All generation costs associated with environmental compliance and fuel conversion to be classified as energy-rel...

AI summary The document discusses the classification of generation and transmission costs, emphasizing the need to align them with the intent of the assets. It suggests that environmental compliance and fuel conversion costs should be energy-related, while fixed costs of Steam and Hydro generation and transmission should be based on annual system load factor. The Equivalent Peaker method was rejected due to inconsistent calculations, and transmission is treated as an extension of generation. Fuel costs are to be allocated on a monthly basis to reflect seasonality.

2013 COS Generic Hearing (M05473) p. pp. 182-183
2013 COS Generic Hearing (M05473) - Upheld status quo regarding the most significant elements of the 1995 COS design - SLF-based classification and 3CP Allocation of non-fuel costs of base load generation and transmission was favored over...

AI summary The 2013 COS Generic Hearing (M05473) upheld the 1995 COS design's core elements, including SLF-based classification and 3CP allocation, but noted pending decisions on distribution costs. Adjustments were made to better align with cost causation and asset utilization, including sub-functionalizing purchased power costs and using a formulaic approach for billing and call center costs.

COS Treatment of Maritime Link p. pp. 187-188
COS Treatment of Maritime Link - 2017-2019 Fuel Stability Plan (M07348) UARB approves Settlement Agreement wherein parties agree to conduct consultations to address COS treatment of ML costs. - Following stakeholder consultations NS Power...

AI summary The document outlines the treatment of Maritime Link (ML) costs within the Cost of Service (COS) framework. A 2017-2019 Fuel Stability Plan (M07348) led to consultations, resulting in a strawman report recommending that Nova Scotia Block costs be classified as NS Power-owned hydro based on the SLF. Surplus energy, representing non-firm imports, was fully classified to energy, and all approved FAM rates reflect this treatment.

Overview p. pp. 190-191
Overview - DSM Cost Recovery Process - 2023-2025 DSM Resource Plan - Regulatory Background behind Cost Allocation Methodology - DSM Cost Allocation Methodology

AI summary The text outlines an overview of topics including the DSM Cost Recovery Process, the 2023-2025 DSM Resource Plan, and the regulatory background and methodology for DSM cost allocation.

Regulatory background behind current DSM Cost Allocation Approach p. pp. 193-194
Regulatory background behind current DSM Cost Allocation Approach - The current cost allocation methodology was approved by the Board in its 2010 DSM Plan and 2010 DSM Rider Decision (NSUARB-NSPI-P-884(2). Board's findings were as follows....

AI summary The current DSM cost allocation methodology was approved by the Board in its 2010 DSM Plan and 2010 DSM Rider Decision. It recognizes three types of cost benefits from DSM: System, Class, and Participation. The recovery of DSM costs is based on the level of benefit received by customer classes, with 75% of costs directly assigned to rate classes and 25% apportioned via the COSS methodology.

Cost Allocation p. p. 195
Cost Allocation The amount of total DSM costs E1 budgets and tracks its costs by Rate classes. However, 25% of these costs are reapportioned by NS Power.

AI summary E1 budgets and tracks DSM costs by rate classes, but 25% of these costs are reapportioned by NS Power.

Allocation of DSM Program Costs p. pp. 196-197
Allocation of DSM Program Costs - All DSM Costs are budgeted and tracked by Rate Classes (See Slide 10) - System benefits are allocated to all applicable customer classes in accordance with the COS methodology reflecting allocation of gene...

AI summary The document outlines how Demand Side Management (DSM) program costs are allocated by rate classes. System benefits are distributed based on the Cost of Service (COS) methodology, with 0.7% of NS Power's revenue requirement allocated to system benefits in 2024. Remaining costs are distributed proportionally among participating classes based on their investments in DSM programs.

DSM Cost Allocation Results p. pp. 0-1
DSM Cost Allocation Results # Tabi e 3: 2024 PCR - Anocation 01 2024 prog grann costs annong rate Classes COLUMN Α В С D E F G Н I FORMULA Table 1 Column H Table 2 Column K A + C E/G E / 12 System Ben expenditure C d to classe c ucina Part...

AI summary The document presents a table detailing the allocation of demand-side management (DSM) costs across various rate classes in 2024. It includes breakdowns of system benefits expenditure, participating costs, and PCR riders, with percentages and monetary figures for each category. The data highlights the distribution of costs among residential, industrial, and municipal classes, along with associated charges and payments.

Non-fuel generation cost classification in COS p. pp. 4-5
Non-fuel generation cost classification in COS - Generation rate base, broken down by types of generation, is initially classified to demand with the exception of investments for environmental or fuel economy reasons, which are classified...

AI summary The document outlines the classification of non-fuel generation costs within the Cost of Service (COS) framework. It details how generation rate base is classified to demand or energy based on factors like System Load Factor (SLF), Effective Load Carrying Capability (ELCC), and other apportionment methods. Wind, Steam, Hydro, and Natural Gas Turbines are specifically addressed in their classification.

Methods considered in the past proceedings p. pp. 7-8
Methods considered in the past proceedings In its 1993 COS Application (NSPI864), in response to UARB's earlier directive to propose a methodology which would classify costs associated with fuel conversion and environmental compliance to e...

AI summary In past proceedings, NSPI proposed the Equivalent Peaker (EP) method for classifying generation costs, but it was rejected by the Board as impractical. The SLF-based method was adopted instead. In 2013, NS Power proposed maintaining the SLF method but also presented alternate methods like PD, EP, and TD, which were rejected due to complexity and lack of industry use.

Evolving and adaptive nature of NS Power's COS p. pp. 9-10
Evolving and adaptive nature of NS Power's COS In response to changing operating environment NS Power proposed various refinements to the COS methodology for stakeholders' review and Board's approval in GRA and Base Cost of Fuel (BCF) proc...

AI summary NS Power has proposed several refinements to its Cost of Service (COS) methodology in response to changes in the operating environment. These include the addition of new generation types, separation of fuel cost allocation, and changes to costing treatments for various energy sources and services, as discussed in various regulatory proceedings.

Challenges lying ahead p. pp. 10-11
Challenges lying ahead - The pace of changes in NS Power's generation and power purchase mix is about to accelerate in the coming years. - The share of NSPI owned generation in total system energy requirement will continue to decline falli...

AI summary NS Power's generation mix is expected to change significantly, with a decrease in fossil fuel generation and an increase in renewable energy. This shift will impact cost classification and redistribution of generation costs among different rate classes.

Discussion p. pp. 13-14
Discussion - Material changes in operating environment require reviews of costing methodology to ensure proper alignment with cost causation and asset utilization. - It is also important to be mindful of established ratemaking principles,...

AI summary The discussion highlights the need to review costing methodologies in response to changes in the operating environment, emphasizing the importance of aligning with cost causation and asset utilization. It also addresses the balance between ratemaking principles and the simplicity of the SLF method, while noting the complexity of alternative methods like LOLP and Probability Dispatch.

Why is Transmission classified on SLF? p. pp. 16-17
Why is Transmission classified on SLF? On pages 20 and 23 of its 1995 COS Decision (NSPI864) the UARB provided as follows. Regarding transmission line rate-base assets, it is the Board's opinion that these assets cannot be totally separate...

AI summary The UARB classified transmission costs based on energy and demand factors, stating that transmission cannot be fully separated from generation. Energy-related costs are determined by the annual system load factor, while remaining costs are classified as demand-related.

MidAmerican collects a substantial portion of non-energy generation costs during lowdemand hours p. p. 30
MidAmerican collects a substantial portion of non-energy generation costs during lowdemand hours • This is not consistent with cost-causation principles

AI summary MidAmerican collects a significant portion of non-energy generation costs during low-demand hours, which is inconsistent with cost-causation principles.

Retain System Load Factor (SLF) method for allocating legacy generation resource costs to energy p. p. 32
Retain System Load Factor (SLF) method for allocating legacy generation resource costs to energy - Existing coal and combined cycle unit costs split between capacity and energy - All thermal unit energy costs (not fuel, but also including...

AI summary The document proposes retaining the System Load Factor (SLF) method for allocating legacy generation resource costs to energy. It outlines how existing coal and combined cycle unit costs are split between capacity and energy, and how energy costs are allocated equally on an hourly basis. The premise is that all customers consuming energy in the same hour should pay the same rate for that energy.

Comments on NB Power COSS Filings p. p. 37
Comments on NB Power COSS Filings Prepared for the NS Power COSS Stakeholder Consultation (M11475) April 11, 2024 John D. Wilson, Grid Strategies LLC

AI summary This document provides comments on NB Power's COSS Filings, prepared for the NS Power COSS Stakeholder Consultation (M11475) by John D. Wilson of Grid Strategies LLC on April 11, 2024.

2026-2027 GRA Direct Evidence Appendix 12A(3) Page 146 of 310 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 37
2026-2027 GRA Direct Evidence Appendix 12A(3) Page 146 of 310 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Comments on NB Power COSS Filings (April 11, 2024) Page 2 of 4

AI summary This document contains comments on NB Power's Cost of Service Study (COSS) filings submitted on April 11, 2024. The text is part of a larger regulatory proceeding and includes redacted confidential information.

2. Definition of POD Method p. p. 37
2. Definition of POD Method The NB Power evidence defines the POD method as allocating "the energy classified costs by looking at the cost of providing energy in each hour instead of assuming that each kilowatt-hour served throughout the y...

AI summary The document defines the POD method, which allocates energy classified costs based on hourly dispatch and probability of dispatch. E3 suggests improvements, such as including operating reserves and excluding dispatch for exports and interruptible loads. The method requires significant data and process changes for full implementation.

3. Application of POD Method p. p. 37
3. Application of POD Method The NB Power POD method analysis assigns generation capacity (non-fuel) costs equally to all hours in which they are used. (Exh. NBP2.03, p. 15) The cost-of-service workbook provided by NB Power does not includ...

AI summary The NB Power POD method assigns non-fuel generation capacity costs equally across all hours of use. The analysis compares the POD method to the variable energy method and suggests they are similar to a class energy allocation, though verification is not possible due to incomplete supporting calculations in the provided workbook.

A. Energy (Fuel) Costs p. p. 37
A. Energy (Fuel) Costs There is at least one substantial difference between the POD and HCM methods for allocating fuel costs. NB Power's POD method uses "forward-looking dispatch and costs of individual generators," while MidAmerican's HC...

AI summary The document discusses differences between the POD and HCM methods for allocating fuel costs, noting that NB Power's method is based on forward-looking dispatch while MidAmerican's uses historical data. However, NB Power's exhibits lack supporting workpapers, making verification difficult. The methods are considered similar if forecast data is reasonable.

2026-2027 GRA Direct Evidence Appendix 12A(3) Page 148 of 310 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 37
2026-2027 GRA Direct Evidence Appendix 12A(3) Page 148 of 310 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Comments on NB Power COSS Filings (April 11, 2024) Page 4 of 4 using forecast data while the HCM method is challenged for application...

AI summary The text discusses challenges in applying the HCM method to NS Power due to the lack of hourly LMP data, requiring NS Power to calculate hourly generation costs using fuel cost, purchased power costs, and other dispatch cost inputs.

2.2 Average and Peak with Time of Use (TOU) Method p. p. 40
2.2 Average and Peak with Time of Use (TOU) Method - 7 The average and peak with time of use method increases the granularity of the data used in - 8 allocation of the energy classified costs by looking at the cost of providing energy in e...

AI summary The average and peak with time of use (TOU) method provides a more granular approach to allocating energy classified costs by considering hourly generation costs and loss of load probability (LOLP). However, it requires additional data not currently available in NB Power's systems and raises confidentiality concerns that may impact transparency in cost allocation.

2.3 Probability of Dispatch Method p. p. 40
2.3 Probability of Dispatch Method - The probability of dispatch method allocates variable production costs the same way as the - average and peak with TOU method. All fixed production costs are classified and allocated based - on the hour...

AI summary The probability of dispatch method allocates variable production costs based on hourly dispatch probabilities rather than separating costs between demand and energy. It is argued to be more accurate in assigning costs directly to the classes that use resource output, though it shares data needs and confidentiality concerns with other methods.

2.4 Marginal Cost Method p. p. 40
2.4 Marginal Cost Method 5 During the procedural conference of June 28, 2023, the final approved scope listed the marginal 6 cost allocation model as optional. Marginal cost modeling has the advantage of being relatively 7 simple to implem...

AI summary The marginal cost allocation model is deemed unsuitable for NB Power's class cost allocation study due to its volatility, inaccuracy in reflecting long-term costs, and confidentiality concerns. E3's analysis highlights discrepancies between marginal costs and actual costs, and no vertically integrated Canadian utility uses this method for CCAS.

2026-2027 GRA Direct Evidence Appendix 12A(3) Page 151 of 310 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 40
2026-2027 GRA Direct Evidence Appendix 12A(3) Page 151 of 310 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Excerpt from Exh. Overview of Cost Allocation Methodologies

AI summary The excerpt provides an overview of cost allocation methodologies relevant to the 2026-2027 GRA Direct Evidence Appendix 12A(3). It outlines approaches used to distribute costs among different service categories or customer groups.

2026-2027 GRA Direct Evidence Appendix 12A(3) Page 152 of 310 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 43
2026-2027 GRA Direct Evidence Appendix 12A(3) Page 152 of 310 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Overview of Cost Allocation Methodologies included in this analysis however, it would be appropriate to include them in future analys...

AI summary The document discusses cost allocation methodologies, highlighting the inclusion of fixed costs for generators dispatched for exports and interruptible load in customer class allocations. It notes that this approach may not accurately reflect the reason for dispatch and suggests that future analyses should consider excluding such data for better accuracy.

Table 4: Pros and cons of Probability of Dispatch method p. p. 43
Table 4: Pros and cons of Probability of Dispatch method Pros Cons Removes a layer of subjectivity because it removes the need to classify overall fixed costs to energy and capacity. Potentially more accurate in assigning costs of resource...

AI summary The Probability of Dispatch method has pros such as reducing subjectivity in cost classification and potentially more accurate cost assignment. However, it has cons like high data requirements, not considering the rationale for investments, and volatility due to system changes. The method assigns generator costs equally across usage hours, potentially misrepresenting investment rationale.

Transmission Allocator p. pp. 51-52
Transmission Allocator - Functional Classification - Demand is the appropriate allocation for transmission. - Transmission facilities are sized to handle peak electricity demand. - The majority of NS Power's transmission system is networke...

AI summary The document discusses the functional classification of transmission facilities based on demand and the need for further investigation into 3-CP versus 12-CP allocation methods to align cost with causation. It also notes that winter peaks influence system demand and that the majority of NS Power's transmission system is networked.

Timing of COS Transition p. p. 52
Timing of COS Transition - § Now is the time to make changes to reflect rapidly evolving NS Power system. - § ELCC generating resource cost functionalization is both more forward looking and more dynamic than current methodologies. - § COS...

AI summary The document emphasizes the need for updating the Cost of Service (COS) model to better reflect the current and evolving NS Power system, advocating for a more dynamic and forward-looking approach that focuses on cost-causation and the role of assets rather than ownership.

1. Introduction p. p. 55
1. Introduction 1. SBA Objectives for COSS The SBA believes that the timing is excellent for a fresh, comprehensive, and forward-looking review of the methodologies and assumptions used to establish the cost of service including allocation...

AI summary The SBA advocates for a comprehensive review of cost of service methodologies to ensure fair allocation of costs as electrification and decarbonization policies reshape energy usage and customer load profiles in Nova Scotia.

2. Underlying Principles for COSS p. p. 55
2. Underlying Principles for COSS The SBA has participated in the COSS stakeholder process hoping to see a process that: - 1. Closely examines cost causation for all the functions, generation, energy production, transmission, distribution,...

AI summary The SBA participated in the COSS stakeholder process to ensure cost causation is thoroughly examined across all functions, align cost causation with allocation factors, and avoid resisting COSS methodology improvements for rate stability, advocating for alignment with Bonbright principles and recognizing the evolving system structure.

Issuelb - Should the use ofllourly Production Costing for Cost Allocation? p. p. 55
Issuelb - Should the use ofllourly Production Costing for Cost Allocation? SBA View - The SBA would like this to be examined carefully and quickly in this process to ultimately propose changes in COSS methodology to the UARB. Issue 1 c - I...

AI summary The SBA recommends careful and quick examination of hourly production costing for cost allocation to propose changes in COSS methodology to the UARB. It also believes its preferences from Issue 1a will capture the effects of a more diverse generation portfolio on cost allocation methodology.

Issue 2d - New Transmission Resources (including grid scale battery, ancillary service technologies)? p. p. 55
Issue 2d - New Transmission Resources (including grid scale battery, ancillary service technologies)? SBA View-The SBA refers to the discussion oflssue la(i) above for Grid Scale Batteries. Regarding Ancillary Services, the SBA agrees with...

AI summary The SBA references a prior discussion on grid scale batteries and agrees that ancillary service costs should be fully demand-related, but emphasizes the need to examine the cost allocation factor in comparison to resource adequacy cost causation.

Issue 3c - Classification between customer and demand costs p. pp. 55-61
Issue 3c - Classification between customer and demand costs SBA View – The SBA strongly believes that any application of a Minimum System Study to classify distribution system costs on a customer basis is inappropriate and highly hypotheti...

AI summary The SBA argues that applying a Minimum System Study to classify distribution system costs on a customer basis is inappropriate and highly hypothetical. They also suggest that NSP should separate and allocate service drop costs on a customer basis, though they have not fully addressed remaining issues and plan to file supplemental comments.

Purpose of Minimum System Study p. pp. 62-63
Purpose of Minimum System Study - The Minimum System Study is used in the COSS for the classification of distribution costs between customer-related and demand-related. - The need to classify distribution costs is described in NARUC Electr...

AI summary The Minimum System Study is used in the COSS to classify distribution costs between customer-related and demand-related. This classification is based on the NARUC Electric Utility Cost Allocation Manual, which emphasizes that distribution costs are driven by both reaching customers and maintaining capacity to meet peak demands.

Minimum System Study Methodology p. pp. 63-64
Minimum System Study Methodology - The Minimum System Study methodology compares the cost of a hypothetical minimum system to the total cost of the distribution system. The cost of the hypothetical minimum system is classified as customer-...

AI summary The Minimum System Study methodology evaluates the cost difference between a hypothetical minimum distribution system and the actual system, classifying costs as either customer-related or demand-related. This approach is used by SaskPower, Hydro Quebec, and NL Power, and similar analyses are used by NB Power and Ontario distributors.

Zero-Intercept Methodology p. pp. 65-68
Zero-Intercept Methodology The Zero-Intercept Methodology relies on actual cost data to determine the relationship between installed costs and load carrying capacity. A regression analysis provides a formula for the cost of an asset based...

AI summary The Zero-Intercept Methodology uses regression analysis to calculate unit costs based on installed costs and load carrying capacity, with a formula that includes an intercept and a coefficient multiplied by load carrying capacity. This method separates costs associated with zero demand from those related to load carrying capacity.

COSS Model p. p. 106
COSS Model Exhibit Purpose 1 Summary of Existing and Proposed Revenue to Expense Ratio Ratios 2 Rate Base Functionalization & Classification 3 Rate Base Allocation 4 Operating Expense Functionalization 5 Operating Expense Classification 6...

AI summary The COSS Model is being analyzed through various runs, with specific changes to classifications and allocations of expenses and revenue. Key changes include the classification of PHP as a separate rate class, grid-scale storage by ELCC factor, and adjustments to transmission and generation classifications.

Overview of COSS Model Runs p. pp. 108-109
Overview of COSS Model Runs - ➤ We will begin with the model runs with less complex modifications and move toward the more complex models and NSP's Positions - ➤ Each COSS model includes a Summary tab that provides rate base and costs by f...

AI summary The document outlines the approach to reviewing COSS model runs, starting with less complex modifications and moving to more complex ones, with a focus on NSP's positions. Each model includes a Summary tab showing rate base and costs by function and classification, along with variance data and changes in the Revenue to Expense Ratio.

6. Sub-functionalize Transmission into EHV and HV p. pp. 109-110
6. Sub-functionalize Transmission into EHV and HV - ➢ Purpose: Analyse the impact of removing the allocation of HV Transmission costs to EHV-connected customers. - ➢ Model Notes: The COSS already separates Transmission into EHV and HV, but...

AI summary This section discusses the purpose and model notes of sub-functionalizing transmission into EHV and HV. It explains that the COSS model separates transmission into EHV and HV, but uses the same loads for allocators. Adjusting the HV allocator by removing EHV-connected customers shifts cost responsibility from EHV to remaining classes.

10b. Classify All Generation that is Currently Classified by SLF by Capacity Factor p. pp. 119-120
10b. Classify All Generation that is Currently Classified by SLF by Capacity Factor - ➢ Purpose: Analyse the impact of allocating all generation costs that are currently classified by the SLF by the weighted average capacity factor of that...

AI summary This section discusses the analysis of allocating generation costs based on the weighted average capacity factor rather than the Steam Load Factor (SLF). The change shifts cost classifications from energy to demand, with lower load factor classes bearing more cost responsibility.

11. MEUs Included as an ATL Rate Class p. pp. 121-122
11. MEUs Included as an ATL Rate Class - ➢ Purpose: Provide an indication of the costs that would be allocated to MEUs that take OATT service if they are included in the COSS as an ATL rate class. - ➢ Model Notes: The four municipal custom...

AI summary This section outlines the inclusion of MEUs as an ATL rate class in the COSS, noting that four municipal customers taking OATT service are instead included in the 'Municipal OATT' rate class. Transmission costs for OATT service are allocated to all rate classes, while revenues include only OATT revenues.

2. New Intermediate Generation Sub-function Classified to Demand and Energy by Weighted-Average Capacity Factor p. pp. 124-125
2. New Intermediate Generation Sub-function Classified to Demand and Energy by Weighted-Average Capacity Factor - ➢ Purpose: Identify "Intermediate Generation" assets and costs and classify by the weighted-average capacity factor instead o...

AI summary This section discusses the classification of 'Intermediate Generation' assets, specifically Tufts Cove units 1, 2, and 3, using a weighted-average capacity factor instead of the Steam Load Factor (SLF). This change results in a shift of classified costs from energy to demand, with a relatively small overall impact due to the 10% contribution of intermediate generation to total steam generation.

3. Transmission Classified 100% as Demand p. pp. 126-127
3. Transmission Classified 100% as Demand - ➢ Purpose: Classify all Transmission as 100% demand instead of using the SLF as peak demands are the primary cost driver of Transmission costs. - ➢ Model Notes: The classification factors that sh...

AI summary This section discusses reclassifying all Transmission costs as 100% demand, removing classification factors that shift costs to energy. This change shifts cost responsibility from classes with high load factors to those with low load factors, with adjustments made to avoid cell definition errors in the model.

5. Classify Grid Scale Storage by ELCC Factor p. pp. 130-131
5. Classify Grid Scale Storage by ELCC Factor - ➢ Purpose: Subfunctionalize grid scale storage separately from EHV and HV Transmission and classify by the ELCC. - ➢ Model Notes: Grid scale storage is not operational in 2023 and all asset v...

AI summary The purpose is to subfunctionalize grid scale storage separately from EHV and HV Transmission and classify it by the ELCC factor. Grid scale storage is not operational in 2023, with all asset value being CWIP. The revenue requirement of grid scale storage is not significant in 2023, so the impacts of this change are not significant.

5. Classify Grid Scale Storage by ELCC Factor p. pp. 131-132
5. Classify Grid Scale Storage by ELCC Factor Change in Total Allocated Costs ($000) Revenue to Expense Ratio Demand Energy Cust. Total Approved 2023 Scenario Change ( 1) DOMESTIC 645 -528 -0 117 97.63 97.62 -0.01 ( 2) SMALL GENERAL 34 -36...

AI summary The document presents a table analyzing the change in total allocated costs and revenue to expense ratios across various customer classes and scenarios, with a focus on the classification of grid-scale storage by ELCC factor.

1. NSP Positions p. pp. 132-133
1. NSP Positions - ➢ Purpose: Combine the changes made in COSS model runs 2, 3, 4, and 5. - ➢ Model Notes: The classification of Transmission 100% to demand is not applied to grid scale storage. - ➢ Overall Impact: There is an overall shif...

AI summary NSP is proposing to combine changes from multiple COSS model runs, noting that transmission costs classified as 100% demand impact cost classification, with some offset from increased generation costs due to changes in SLF and the inclusion of PHP.

DSM Model Scenario p. pp. 134-135
DSM Model Scenario - ➢ NSP was asked to model the impact of changing the classification of DSM costs attributable to the MEUs to be 100% based on direct customer costs. - ➢ Currently 75% of costs are assigned directly to rate classes and 2...

AI summary NSP was asked to model the impact of changing the classification of DSM costs attributable to the MEUs to be 100% based on direct customer costs. Currently, 75% of costs are assigned directly to rate classes, while 25% is classified as System Benefit and allocated using the COSS methodology. The four OATT municipalities currently receive 100% customer-related costs and no System Benefit allocation. BUTU costs are classified as 100% customer-related.

Transmission Cost Comparison Recap p. pp. 155-156
Transmission Cost Comparison Recap - 2024 Blended unit transmission costs (c/kWh) are lower under the OATT than the Municipal Tariff over a broad range of load factors starting at LF of 35%. - MEUs pay currently less for transmission under...

AI summary The 2024 blended unit transmission costs under the OATT are lower than the Municipal Tariff for load factors starting at 35%. However, the current OATT is capped at a 1.8% increase, and bundled service costs to OATT MEUs are higher than in the 2023 COSS. These findings may need reassessment after the costing methodology is revised as part of this proceeding.

Differences in Transmission Revenue Requirements p. p. 163
Differences in Transmission Revenue Requirements Expense (In thousands of 2013 2014 dollars) OATT COSS % Var OATT COSS % Var Operating, Maintenance and General OM&G) $26,586 $26,104 2% $26,762 $26,286 2% Depreciation $24,072 $26,167 -8% $2...

AI summary The text presents tables comparing transmission revenue requirements for different years, highlighting changes in expenses such as operating, maintenance, depreciation, and fixed cost recovery deferral between OATT and COSS for 2013, 2014, and 2023. The data shows significant variations in expense percentages and amounts over time.

OATT COSS p. p. 164
OATT COSS Control CentreOther Total Direct 2,978 12,109 15,087 Corporate OH 2,682 10,909 13,591 Total 5,660 23,018 28,678 Source: OMG Calc tab Source: Exh 4.1 Direct 15,087 Corporate OH 13,662 Total 28,749 - The discrepancy between Corpora...

AI summary The text presents a discrepancy in Corporate OH calculations, noting that the OATT value is determined based on the share of transmission in above-the-line classes rather than the system total, which includes below-the-line classes.

(Source: 2023 COSS and OATT spreadsheets) p. pp. 167-168
(Source: 2023 COSS and OATT spreadsheets) EXHIBIT 4.1 NOVA SCOTIA POWER INC. TRANSMISSION OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2023 (IN THOUSANDS OF DOLLARS) ABOVE-THE LINE RATE CLASSES BELOW-THE LINE RATE CLASSES TOTAL OPER...

AI summary The document provides a detailed breakdown of Nova Scotia Power Inc.'s transmission operating expenses for the year ending December 31, 2023, including operating and maintenance costs, depreciation, taxes, interest, and retained earnings. The data is presented in thousands of dollars and includes comparisons between OATT and COSS figures, showing no significant variance.

Proposed Amendment to OATT Revenue Req p. pp. 170-171
Proposed Amendment to OATT Revenue Req - In general, a direct application of transmission cost requirement, as a data input into transmission rate under the OATT, would have the following effects. - It would help eliminate differences in t...

AI summary The proposed amendment to the OATT revenue requirement aims to align transmission revenue requirements between OATT and COSS by using transmission cost requirements as a data input. The amendment would only slightly alter the computation process, primarily changing entry-level costs in the 'Revenue' tab and removing the redundant O&M tab.

Hypothesis includes greater level of complexity vs. accuracy/precision p. pp. 174-175
Hypothesis includes greater level of complexity vs. accuracy/precision - Annual losses, 8760 Data vs. load factor calculations - Non-Technical Losses, assumption vs. calculations - Secondary Configurations, sampling vs assumptions - Distri...

AI summary The text discusses the evaluation of annual energy losses and load factor calculations, comparing assumptions with actual data. It highlights the importance of accurately allocating losses per customer type by analyzing energy sold and network segment performance.

Step 02 : Calculation of loss allocation factors p. p. 196
Step 02 : Calculation of loss allocation factors - Losses are calculated for each customer class across all network segments using a defined formula. Segment Losses = Customer Class Contribution % x Total Annual Energy Losses for the segme...

AI summary This section outlines the methodology for calculating loss allocation factors, where segment losses are determined by multiplying the customer class contribution percentage by total annual energy losses for each segment, and total energy loss for each class is obtained by summing losses across all segments.

Table 4 – Overall Classifications p. p. 19
Table 4 – Overall Classifications The following table summarises the share of each utility's total costs classified by each demand, energy, and customer. The shares excluding energy are also provided. In addition to classification methodol...

AI summary Table 4 summarizes the share of each utility's total costs classified by demand, energy, and customer. It also provides shares excluding energy, with variations based on generation type and classification methodologies.

3. Review of Treatment of General Plant p. p. 24
3. Review of Treatment of General Plant During discussion in the COSS Stakeholder Engagement Session 2, held on February 22, 2024, intervenors noted that when looking at the COSS, General Plant costs had grown significantly. Intervenors we...

AI summary The document discusses the treatment of General Plant in the Cost of Service Study (COSS), noting significant growth in General Plant costs. General Plant includes NS Power's investments in facilities, vehicles, and IT infrastructure, with its Net Book Value (NBV) tracked separately and apportioned among generation, transmission, and distribution service areas for rate base and depreciation purposes.

2026-2027 GRA Direct Evidence Appendix 12A(5) 1 Page 7 of 31 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 26
2026-2027 GRA Direct Evidence Appendix 12A(5) 1 Page 7 of 31 REDACTED (CONFIDENTIAL INFORMATION REMOVED) November 1, 2024 Memo to Participants in COSS Stakeholder Process - Func�onalized among the four service areas of genera�on, transmiss...

AI summary This memo outlines the methodology for func�onalizing and classifying costs across different service areas and rate classes as part of the 2026-2027 GRA Direct Evidence Appendix 12A(5) process.

November 1, 2024 Memo to Participants in COSS Stakeholder Process p. pp. 26-29
November 1, 2024 Memo to Participants in COSS Stakeholder Process Pros Cons Would be consistent with fuel conversion Does not align with the view that the DDA and emission reduction classification. is a rate stabilization tool and was esta...

AI summary The memo outlines a debate on the classification of the Decarbonization Deferral Account (DDA) and its alignment with rate stabilization tools. It also details the inclusion of regulatory amortization in corporate taxes and the apportionment of regulatory assets and expenses to rate classes based on their responsibilities for the rate base.

3. Review of Treatment of General Plant p. p. 29
3. Review of Treatment of General Plant During discussion in the COSS Stakeholder Engagement Session 2, held on February 22, 2024, intervenors noted that when looking at the COSS, General Plant costs had grown significantly. Intervenors we...

AI summary The document discusses the treatment of General Plant in the Cost of Service Study (COSS), noting significant growth in General Plant costs. It explains that General Plant includes NS Power's investments in buildings, communication equipment, transportation, and IT infrastructure, and that its Net Book Value is tracked separately and apportioned among generation, transmission, and distribution service areas.

General Plant Category 2025 2026 2027 2028 p. p. 29
General Plant Category 2025 2026 2027 2028 Computer Hardware 4.0 4.5 5.3 4.6 Computer Software 15.6 22.6 23.7 21.8 Vehicles 21.4 20.2 17.3 17.8 Telecommunication 15.2 15.3 15.3 4.3 Other 9.2 9.1 9.0 9.1 Total 65.4 71.7 70.6 57.7 2026-2027...

AI summary The table presents projected costs for various general plant categories from 2025 to 2028, with a notable decrease in telecommunication costs in 2028 and an overall decline in total costs by 2028. This data is part of a GRA Direct Evidence Appendix, indicating its relevance to regulatory proceedings.

2026-2027 GRA Direct Evidence Appendix 12A(5) 1 Page 13 of 31 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 32
2026-2027 GRA Direct Evidence Appendix 12A(5) 1 Page 13 of 31 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Status Quo CTD Referen ce NS Power Position (Pre Resolution Session) NS Power Updated Position (Following Resolution Session) Justifi...

AI summary The document discusses NS Power's proposal to classify all generation assets based on SLF, eliminating the need to subfunctionalize generation assets. This approach is justified as it aligns with industry practices, supports system stability, and provides a simpler and more consistent method for cost-of-service classification.

3. Review of Treatment of General Plant p. p. 49
3. Review of Treatment of General Plant During discussion in the COSS Stakeholder Engagement Session 2, held on February 22, 2024, intervenors noted that when looking at the COSS, General Plant costs had grown significantly. Intervenors we...

AI summary The discussion during the COSS Stakeholder Engagement Session 2 highlighted significant growth in General Plant costs and the need for analysis of its impact on the COSS. General Plant includes NS Power's investments in buildings, communication equipment, transportation, and IT infrastructure. The NBV of General Property is tracked separately and apportioned among generation, transmission, and distribution based on relative NBV shares.

2026-2027 GRA Direct Evidence Appendix 12A(5) 1 Page 31 of 31 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 49
2026-2027 GRA Direct Evidence Appendix 12A(5) 1 Page 31 of 31 REDACTED (CONFIDENTIAL INFORMATION REMOVED) December 6, 2024 Memo to Participants in COSS Stakeholder Process are secondary. As a result, IT Work and Asset Management Investment...

AI summary This memo discusses the functionalization of IT Work and Asset Management Investment to distribution, noting that while professional judgment is required, NS Power considers this method more accurate than the previous one.

Section 9503 p. p. 49
The five-year forecast within the 2024 ACE plan shows that the investment level in general plant, which includes IT software and communication investments continues to be an area of significant investment and warrants a refinement in its C...

AI summary The 2024 ACE plan highlights ongoing significant investment in general plant, including IT software and communication, and suggests the need for a refinement in the COS approach. This is supported by a referenced table.

• Session 4: April 10, 2024 p. p. 49
• Session 4: April 10, 2024 - o Half-day session - o Topics: Generation (part 1) pros/cons of continued use of system load factor (SLF), consistency of generation and transmission treatment/classification between energy and demand - o Summ...

AI summary This session focused on generation topics, including the classification of fuel and non-fuel costs in the Cost of Service Study (COS), the rationale behind using the system load factor (SLF) for classification, and an alternative approach presented by John Wilson. NS Power and intervenors discussed these topics.

2026-2027 GRA Direct Evidence Appendix 12A(6) Page 5 of 6 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 49
2026-2027 GRA Direct Evidence Appendix 12A(6) Page 5 of 6 REDACTED (CONFIDENTIAL INFORMATION REMOVED) - o Topic: Review of Models - o Summary: In this session, NS Power's third-party COSS consultant, Elenchus Research Associates Inc. (Elen...

AI summary This document outlines a series of sessions related to the 2026-2027 GRA Direct Evidence Appendix 12A(6). NS Power presented updates on the Cost of Service Study model, discussed bundled vs. unbundled service alignment, and provided a Line Loss Study update. Resolution sessions were held to address stakeholder concerns and find common ground.

2026-2027 GRA Direct Evidence Appendix 12A(6) Page 6 of 6 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 49
2026-2027 GRA Direct Evidence Appendix 12A(6) Page 6 of 6 REDACTED (CONFIDENTIAL INFORMATION REMOVED) that NS Power and its expert consultant could also support. Although a resolution of all issues was not ultimately reached during these s...

AI summary NS Power held a final session in December 2024 to review updated Cost of Service Study (COSS) proposals following stakeholder engagement. The session allowed stakeholders to provide feedback and clarification on NS Power's updated positions and modeling related to the 3CP and other issues.

1 EXECUTIVE SUMMARY p. p. 62
1 EXECUTIVE SUMMARY 2 Nova Scotia Power Inc. ("NS Power") retained Elenchus Research Associates 3 ("Elenchus") in December 2023 to assist the company during its cost of service study 4 ("COSS") review process. The goal of this process was...

AI summary NS Power retained Elenchus Research Associates to assist with its cost of service study review process. The goal was to refine NS Power's methodology in light of developments since the 2013 COSS, including increased renewable integration, gas-fired generation, and grid-scale battery storage. Elenchus provided context on ratemaking principles and cost allocation practices.

2026-2027 GRA Direct Evidence Appendix 12B Page 6 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 62
2026-2027 GRA Direct Evidence Appendix 12B Page 6 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 1000000 Onc :hus .i ius -6- NSP COSS Consultation Report Draft April 25, 2025

AI summary The document provides a redacted excerpt from a consultation report by NSP related to the Cost of Service Study (COSS) dated April 25, 2025. It is part of the 2026-2027 GRA Direct Evidence Appendix 12B, which contains confidential information.

2026-2027 GRA Direct Evidence Appendix 12B Page 7 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 62
2026-2027 GRA Direct Evidence Appendix 12B Page 7 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -7- NSP COSS Consultation Report Draft April 25, 2025 - 1 responsibility because they typically support multiple functions and aren't drive...

AI summary NS Power has proposed refinements to its Cost of Service Study (COSS) to better align cost allocation with current operational realities and customer classes. These include adjustments for PHP's rate class, DSM benefits, and line loss studies. Elenchus supports these changes, stating they improve cost recovery and alignment with industry evolution.

2026-2027 GRA Direct Evidence Appendix 12B Page 8 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 62-65
2026-2027 GRA Direct Evidence Appendix 12B Page 8 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -8- NSP COSS Consultation Report Draft April 25, 2025

AI summary This document is a draft consultation report from Nova Scotia Power's Cost of Service Study (COSS) dated April 25, 2025. It is part of the 2026-2027 GRA Direct Evidence Appendix 12B and contains redacted confidential information.

1.1 OVERVIEW p. p. 65
1.1 OVERVIEW - 3 Nova Scotia Power Inc. ("NS Power") retained Elenchus Research Associates - 4 ("Elenchus") in December 2023 to assist the company during its COSS review process. - 5 The goal of this process was to refine NS Power's existi...

AI summary NS Power engaged Elenchus Research Associates to assist with updating its Cost of Service Study (COSS) in 2023, considering recent developments such as renewable integration, gas generation, and grid storage. The process involved stakeholder sessions in 2024 to discuss proposed changes and their alignment with regulatory principles.

2026-2027 GRA Direct Evidence Appendix 12B Page 9 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 65
2026-2027 GRA Direct Evidence Appendix 12B Page 9 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) The second second Le enc hus -9- NSP COSS Consultation Report Draft April 25, 2025

AI summary This document is a redacted page from the 2026-2027 GRA Direct Evidence Appendix 12B, which includes a consultation report draft from NSP's Cost of Service Study (COSS) dated April 25, 2025. The content is partially redacted and contains limited information.

2026-2027 GRA Direct Evidence Appendix 12B Page 10 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 65-67
2026-2027 GRA Direct Evidence Appendix 12B Page 10 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -10- NSP COSS Consultation Report Draft April 25, 2025

AI summary This document is a draft consultation report from Nova Scotia Power's Cost of Service Study, dated April 25, 2025, and is part of the 2026-2027 GRA Direct Evidence Appendix 12B. It is marked as confidential and redacted.

1 1.2 THEORY OF COST ALLOCATION p. p. 67
1 1.2 THEORY OF COST ALLOCATION - 2 In the electricity industry, electricity is generated, primarily in large power plants, then - 3 transmitted over high voltage transmission lines, after which it is transformed to lower - 4 voltages and...

AI summary This section outlines the theory of cost allocation in the electricity industry, explaining how shared assets and expenses are distributed among customer classes using a cost allocation study. The methodology relies on principles such as cost causality, benefit derived, government policy alignment, timing of recovery, simplicity, and acceptability.

2026-2027 GRA Direct Evidence Appendix 12B Page 11 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 67-68
2026-2027 GRA Direct Evidence Appendix 12B Page 11 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -11- NSP COSS Consultation Report Draft April 25, 2025 - 1 More than one criterion may also be used in developing an acceptable cost alloc...

AI summary The text discusses the development of a cost allocation study methodology, emphasizing criteria such as cost causality, simplicity, and acceptability in the context of the NSP COSS Consultation Report Draft from April 25, 2025.

Cost-related Attributes: p. p. 68
Cost-related Attributes: - 4. Static efficiency of the use of rate classes and rate blocks in discouraging wasteful use of the service, while promoting all justified types and amounts of use. - 5. Reflections of all of the present and futu...

AI summary The text discusses principles of public utility rates, emphasizing the static efficiency of rate classes and rate blocks in discouraging wasteful use while promoting justified usage, and the reflection of present and future private and social costs and benefits of service provision, referencing a 1988 publication by Bonbright, Danielsen, and Kamerschen.

2026-2027 GRA Direct Evidence Appendix 12B Page 12 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 68
2026-2027 GRA Direct Evidence Appendix 12B Page 12 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 1 enc hile ıwə -12- NSP COSS Consultation Report Draft April 25, 2025

AI summary This document is a consultation report draft from Nova Scotia Power's Cost of Service Study (COSS) dated April 25, 2025. It is part of the 2026-2027 GRA Direct Evidence Appendix 12B, which contains redacted confidential information.

1.3.1 REVENUE RELATED p. pp. 68-69
1.3.1 REVENUE RELATED Meeting revenue requirement implies that customer rates should be set so as to yield sufficient revenues for the utility to recover its approved costs. The recoverable costs that make up the company's revenue requirem...

AI summary Setting customer rates to meet the utility's revenue requirement ensures the recovery of approved costs, including operating expenses, maintenance, administration, amortization, and the cost of capital, which includes debt interest and return on equity.

2026-2027 GRA Direct Evidence Appendix 12B Page 13 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 69
2026-2027 GRA Direct Evidence Appendix 12B Page 13 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -13- NSP COSS Consultation Report Draft April 25, 2025 1 Stability and predictability are criteria that deal with the need to use cost all...

AI summary The text discusses the importance of stability and predictability in cost allocation and rate design, emphasizing the need to avoid sudden and significant changes in customer bills. It suggests that when necessary changes occur, they should be phased in to mitigate impacts on consumers.

11 1.3.2 COST RELATED p. pp. 69-70
11 1.3.2 COST RELATED - 12 Fairness and equity are understood to mean that the utility's assets and expenses have - 13 been apportioned to the customer classes in a manner that has cost causality as the main - 14 criterion. The methodologi...

AI summary The text discusses the principles of fairness, equity, and economic efficiency in utility cost apportionment. It emphasizes cost causality as a key criterion for allocating assets and expenses to customer classes, and highlights the importance of rate design in promoting operational and dynamic efficiency, as well as resource conservation.

2026-2027 GRA Direct Evidence Appendix 12B Page 14 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 70-71
2026-2027 GRA Direct Evidence Appendix 12B Page 14 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -14- NSP COSS Consultation Report Draft April 25, 2025

AI summary This document is a draft consultation report from Nova Scotia Power's Cost of Service Study (COSS) dated April 25, 2025, part of the 2026-2027 GRA Direct Evidence Appendix 12B, with confidential information redacted.

1 1.3.3 PRACTICAL RELATED p. p. 71
1 1.3.3 PRACTICAL RELATED - 2 Simplicity and administrative ease are criteria that address the need to use cost allocation - 3 and rate design methods that are understandable by stakeholders and customers and - 4 are implementable by the u...

AI summary The text emphasizes the importance of simplicity and administrative ease in cost allocation and rate design methods, highlighting the need for these methods to be understandable by stakeholders and customers, as well as implementable by the utility based on its available capabilities and resources.

2026-2027 GRA Direct Evidence Appendix 12B Page 15 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 71-72
2026-2027 GRA Direct Evidence Appendix 12B Page 15 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -15- NSP COSS Consultation Report Draft April 25, 2025

AI summary This document is a draft consultation report from Nova Scotia Power's Cost of Service Study (COSS) dated April 25, 2025, and is part of the 2026-2027 GRA Direct Evidence Appendix 12B. It contains redacted confidential information.

1 2 OVERVIEW OF STAKEHOLDER PROCESS p. p. 72
1 2 OVERVIEW OF STAKEHOLDER PROCESS - 2 From January to December 2024, NS Power held fifteen meetings with stakeholders to - 3 discuss COSS matters. These meetings are summarized below. - 4 Eight stakeholder sessions - 5 Two mini sessions...

AI summary NS Power conducted fifteen stakeholder meetings from January to December 2024 to discuss COSS matters, including eight sessions, two mini sessions, a modeling review, a pre-resolution position session, a two-day in-person resolution session, and a post-resolution session.

10 Table 1 – Stakeholder Session Summary p. p. 72
10 Table 1 – Stakeholder Session Summary Date Session Length 18-Jan-24 Initial COSS Stakeholder Engagement Session 2 Hours 22-Feb-24 2nd COSS Stakeholder Session Full Day 13-Mar-24 3rd COSS Stakeholder Session Half-Day 10-Apr-24 4th COSS S...

AI summary The document outlines a series of stakeholder sessions related to the Cost of Service Study (COSS) conducted by Nova Scotia Power (NS Power) over multiple dates and durations, indicating ongoing engagement and discussion around cost-related matters.

2026-2027 GRA Direct Evidence Appendix 12B Page 16 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 72
2026-2027 GRA Direct Evidence Appendix 12B Page 16 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -16- NSP COSS Consultation Report Draft April 25, 2025 - 1 with the current methodology, and present alternative methodologies. In additio...

AI summary NS Power conducted stakeholder consultations and discussions to refine the Cost of Service Study methodology, responding to 152 data requests and providing 31 model scenarios to assess alternative approaches.

2026-2027 GRA Direct Evidence Appendix 12B Page 17 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 72-74
2026-2027 GRA Direct Evidence Appendix 12B Page 17 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -17- NSP COSS Consultation Report Draft April 25, 2025

AI summary This document is a draft consultation report from Nova Scotia Power's Cost of Service Study (COSS) dated April 25, 2025, which is part of the 2026-2027 GRA Direct Evidence Appendix 12B. The content is redacted and contains confidential information.

4 Table 2 – Summary of NS Power Proposed Methodology p. p. 74
4 Table 2 – Summary of NS Power Proposed Methodology Status Quo Change Generation • Allocation except for treatment of purchased power • No initial classification to energy for environmental and fuel conversion reasons • Use system load fa...

AI summary NS Power proposes changes to its methodology for classifying and allocating costs related to generation, transmission, and distribution. Key changes include refunctionalizing radial-to-generation, using system load factors for classification, and creating new storage sub-functions. These changes aim to improve cost allocation and align with updated regulatory practices.

1 4.1.1.2 NSP PROPOSED APPROACH p. p. 75
1 4.1.1.2 NSP PROPOSED APPROACH - 2 NS Power is proposing to classify all generation by the same methodology. This is further - 3 discussed in section [4.2.1.2.](#page-79-2) This proposed change in methodology will eliminate the - 4 need t...

AI summary NS Power proposes to classify all generation using the same methodology, eliminating the need to sub-functionalize rate base and OM&A by type of generation, while continuing to track costs separately within the Cost of Service Study model.

7 4.1.1.3 ELENCHUS OPINION p. p. 75
7 4.1.1.3 ELENCHUS OPINION - 8 Elenchus agrees it is appropriate to continue to maintain the current sub-functionalization - 9 of rate base and OM&A by type of generation. The primary purpose of sub-functionalizing - 10 accounts is to sepa...

AI summary Elenchus supports maintaining the current sub-functionalization of rate base and OM&A by type of generation, arguing that it provides greater clarity and transparency in the cost of service study model compared to consolidating into a single generation function.

2026-2027 GRA Direct Evidence Appendix 12B Page 20 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 76
2026-2027 GRA Direct Evidence Appendix 12B Page 20 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) The second second On IC en -20- NSP COSS Consultation Report Draft April 25, 2025

AI summary This document is a redacted page from the 2026-2027 GRA Direct Evidence Appendix 12B, which includes a consultation report draft from NSP's Cost of Service Study (COSS) dated April 25, 2025.

2026-2027 GRA Direct Evidence Appendix 12B Page 22 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 78-79
2026-2027 GRA Direct Evidence Appendix 12B Page 22 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -22- NSP COSS Consultation Report Draft April 25, 2025

AI summary This document is a draft consultation report from Nova Scotia Power's Cost of Service Study (COSS) dated April 25, 2025, as part of the 2026-2027 GRA Direct Evidence Appendix 12B. It includes redacted confidential information and is part of a regulatory proceeding.

2026-2027 GRA Direct Evidence Appendix 12B Page 23 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 79-80
2026-2027 GRA Direct Evidence Appendix 12B Page 23 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -23- NSP COSS Consultation Report Draft April 25, 2025 1 part of its proposal, NS Power will remove the initial classification of environm...

AI summary NS Power proposes to classify all generation rate base, including environmental and fuel conversion, using the system load factor rather than discrete classification factors. This approach is consistent with practices in other Canadian jurisdictions and aims to align cost allocation with customer load profiles and regulatory requirements.

2026-2027 GRA Direct Evidence Appendix 12B Page 24 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 80-81
2026-2027 GRA Direct Evidence Appendix 12B Page 24 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -24- NSP COSS Consultation Report Draft April 25, 2025 - 1 would be primarily classified to energy and combustion turbines would be classi...

AI summary This excerpt from the NSP COSS Consultation Report Draft discusses the classification of assets, noting that certain classifications would be primarily energy-related, while others would be fully classified to demand, potentially leading to different rate impacts based on when investments in those assets occur.

4.2.1.3 ELENCHUS OPINION p. p. 81
4.2.1.3 ELENCHUS OPINION 5 The system load factor method is a simple and pragmatic approach to classifying costs 6 that are functionalized as generation costs as energy- and demand-related in a manner 7 that ignores the cost difference acr...

AI summary The Elenchus opinion critiques the system load factor method for allocating generation costs, noting that it oversimplifies by ignoring differences between supply resources. It raises concerns about the impact of new facilities on cost allocation and suggests that a more granular approach may not be equitable in the short term. The opinion emphasizes the need for a methodology that balances cost causality and fairness.

2026-2027 GRA Direct Evidence Appendix 12B Page 25 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 81-82
2026-2027 GRA Direct Evidence Appendix 12B Page 25 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -25- NSP COSS Consultation Report Draft April 25, 2025 - 1 reasonable rates that ultimately determines whether the methodology is appropri...

AI summary The text discusses the system load factor approach used in NS Power's cost allocation process, emphasizing that embedded costs are determined by historic decisions and not current use, highlighting the diversity of assets resulting from long-term capital investment.

2026-2027 GRA Direct Evidence Appendix 12B Page 27 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 83-84
2026-2027 GRA Direct Evidence Appendix 12B Page 27 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 10000 On IC en ш U > -27- NSP COSS Consultation Report Draft April 25, 2025

AI summary This document is a consultation report from Nova Scotia Power's Cost of Service Study (COSS) draft dated April 25, 2025, which is part of the 2026-2027 GRA Direct Evidence Appendix 12B. It contains redacted confidential information and appears to be part of a regulatory proceeding.

2026-2027 GRA Direct Evidence Appendix 12B Page 28 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 84
2026-2027 GRA Direct Evidence Appendix 12B Page 28 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -28- NSP COSS Consultation Report Draft April 25, 2025

AI summary This document is a consultation report from Nova Scotia Power's Cost of Service Study (COSS) draft dated April 25, 2025, part of the 2026-2027 GRA Direct Evidence Appendix 12B. It is redacted and contains confidential information.

4.3.1.3 ELENCHUS OPINION p. pp. 84-85
4.3.1.3 ELENCHUS OPINION - 2 The allocation of demand-classified costs using the 3CP method is consistent with the - methodologies that are generally used in other jurisdictions in Canada.[10](#page-85-1)

AI summary The document discusses the allocation of demand-classified costs using the 3CP method, noting its consistency with methodologies used in other Canadian jurisdictions.

4.3.2.2 NSP PROPOSED APPROACH p. p. 85
4.3.2.2 NSP PROPOSED APPROACH - NS Power is proposing to change the method to allocate the non-fuel, energy related - costs of purchases to rate classes from an annual to a monthly based allocation method. - The allocation of other costs i...

AI summary NS Power proposes changing the allocation method for non-fuel, energy-related costs from annual to monthly. Other costs will remain unchanged. The text references allocation methods used by NB Power, BC Hydro, and SaskPower.

16 4.3.3.3 ELENCHUS OPINION p. p. 86
16 4.3.3.3 ELENCHUS OPINION - 17 NS Power's proposed allocators for radial-to-generation and storage are reasonable as - 18 they are consistent with the allocators used for other generation sub-functions.

AI summary NS Power's proposed allocators for radial-to-generation and storage are deemed reasonable as they align with allocators used for other generation sub-functions.

2026-2027 GRA Direct Evidence Appendix 12B Page 30 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 86
2026-2027 GRA Direct Evidence Appendix 12B Page 30 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -30- NSP COSS Consultation Report Draft April 25, 2025

AI summary This document is a draft consultation report from Nova Scotia Power's Cost of Service Study (COSS) dated April 25, 2025, as part of the 2026-2027 GRA Direct Evidence Appendix 12B. It contains redacted confidential information.

5.1.1.2 NSP PROPOSED APPROACH p. p. 87
5.1.1.2 NSP PROPOSED APPROACH - NS Power is proposing to maintain the current practice of classifying and allocating EHV - and HV transmission by the same factors. The separation of EHV and HV within the cost - of service study model is no...

AI summary NS Power proposes to maintain current classification practices for EHV and HV transmission, eliminate sub-functionalization in the cost of service study model, and continue refunctionalizing bulk power substations from Transmission to Distribution.

5.1.3.3 ELENCHUS OPINION p. pp. 88-89
5.1.3.3 ELENCHUS OPINION - 2 Creating a transmission storage sub-function is prudent at this time given developments - 3 in the electricity sector since NS Power's last cost of service study review. Storage can - 4 be used for many purpose...

AI summary The text discusses the prudence of creating a transmission storage sub-function, citing developments in the electricity sector since NS Power's last cost of service study review. It notes that storage can serve multiple purposes and that NS Power is likely to develop storage with a transmission function.

Section 9609 p. pp. 89-90
- 1 interconnections, all other transmission is classified as 100% demand in all other - 2 jurisdictions in Canada. This is appropriate because the quantum of costs incurred to - 3 provide transmission service is caused by forecasted capac...

AI summary The text discusses the classification of transmission costs, including radial-to-generation and storage, within the context of cost causality and system load factors. Elenchus supports NS Power's proposal to reclassify transmission rate base, depreciation, and OM&A as 100% demand while maintaining classification based on the system load factor.

5.3 ALLOCATION p. p. 91
5.3 ALLOCATION - 5.3.1 GENERAL TRANSMISSION - 5.3.1.1 NSP CURRENT APPROACH - Demand-classified EHV and HV transmission is allocated to rate classes using the same - 3CP allocator used to allocate demand-classified generation costs. - Energ...

AI summary NS Power proposes maintaining the current method of allocating demand-classified transmission costs using the 3CP allocator, while eliminating the energy classification of transmission costs. Elenchus supports this approach, aligning with NS Power's proposal to use a single sub-function for EHV and HV transmission costs in the revised cost of service study model.

5.3.2 RADIAL-TO-GENERATION & STORAGE p. p. 92
5.3.2 RADIAL-TO-GENERATION & STORAGE - 5.3.2.1 NSP CURRENT APPROACH - 3 Radial-to-generation and storage costs are embedded within EHV and HV transmission - 4 costs so they are implicitly allocated using the same demand and energy allocato...

AI summary The document discusses Nova Scotia Power's (NSP) current and proposed approaches to allocating radial-to-generation and storage costs. NSP currently embeds these costs within transmission costs, while proposing to refunctionalize radial-to-generation away from transmission and apply the 3CP demand allocator to transmission storage. Elenchus supports the use of the 3CP allocator for transmission storage costs.

12 6.1.1.3 ELENCHUS OPINION p. p. 92
12 6.1.1.3 ELENCHUS OPINION - 13 NS Power's functionalization of Distribution to sub-functions is reasonable and - 14 consistent with the sub-functions used by other vertically-integrated utilities across - 15 Canda. This level of sub-func...

AI summary The text argues that NS Power's division of Distribution into sub-functions is reasonable and consistent with other utilities in Canada. It also suggests that creating a distribution storage sub-function is prudent, even without current facilities, due to future developments in the electricity sector and potential cost savings.

6.2.1.3 ELENCHUS OPINION p. p. 94
6.2.1.3 ELENCHUS OPINION - Elenchus agrees that the classifications applied to each sub-function are appropriate. The - cost of substations and line transformer costs are driven by demands and peak times so - it is appropriate for those co...

AI summary Elenchus agrees with the classification of sub-function costs, stating that substation and line transformer costs are demand-driven and customer-related costs vary with the number of customers served.

6.2.2.1 NSP CURRENT APPROACH p. p. 95
6.2.2.1 NSP CURRENT APPROACH - The minimum system methodology is used in the cost of service study for the - classification of poles & fixtures and overhead & underground lines between customer- - related and demand-related. The need to cl...

AI summary NSP uses the minimum system methodology in its cost of service study to classify distribution costs as either demand-related or customer-related, following guidelines from the NARUC Electric Utility Cost Allocation Manual.

6.2.2.2 NSP PROPOSED APPROACH p. p. 95
6.2.2.2 NSP PROPOSED APPROACH - 8 NS Power is proposing to maintain the minimum system methodology for the purpose of - 9 classifying poles & fixtures and overhead & underground lines. This methodology - appropriately considers the two pri...

AI summary NSP is proposing to maintain the minimum system methodology for classifying poles, fixtures, and overhead and underground lines, emphasizing that this approach appropriately considers customers and demand as the primary cost drivers.

6.2.2.3 ELENCHUS OPINION p. p. 95
6.2.2.3 ELENCHUS OPINION - The minimum system method is appropriate for classifying poles & fixtures and overhead - & underground lines between demand and customer. These costs have two clear cost - drivers: the sprawl of the distribution...

AI summary The minimum system method is deemed appropriate for classifying distribution costs related to poles, fixtures, and overhead and underground lines. It accounts for two cost drivers: the sprawl of the distribution system and peak demand. This method is used by multiple utilities and is considered the most common approach in Canada for classifying distribution costs.

2026-2027 GRA Direct Evidence Appendix 12B Page 41 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 95
2026-2027 GRA Direct Evidence Appendix 12B Page 41 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -41- NSP COSS Consultation Report Draft April 25, 2025 - 1 load can create counterintuitive and controversial results that are detached fr...

AI summary The document discusses the limitations of the basic customer method for cost allocation, highlighting inconsistencies with cost causality. It compares this method to the minimum system and zero-intercept methods, noting that the latter two are used by some Canadian utilities but not universally. The zero-intercept method, while used by some, can produce counterintuitive results.

2026-2027 GRA Direct Evidence Appendix 12B Page 42 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 95-99
2026-2027 GRA Direct Evidence Appendix 12B Page 42 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -42- NSP COSS Consultation Report Draft April 25, 2025 - 1 In Elenchus' view the minimum system method is the method most aligned with cos...

AI summary The document discusses NS Power's current and proposed methodologies for classifying and allocating distribution storage and demand-classified distribution. Elenchus supports NS Power's approach, arguing that using a weighted average classification aligns with cost causality principles and appropriately allocates distribution storage costs.

15 7.1.1 CURRENT RETAIL METHODOLOGY p. p. 101
15 7.1.1 CURRENT RETAIL METHODOLOGY - 16 Retail costs include expenses like meter reading, customer service, and billing & - 17 collection. These costs are classified fully as customer-related.

AI summary The current retail methodology classifies retail costs, such as meter reading, customer service, and billing and collection, as fully customer-related expenses.

4 7.1.3 ELENCHUS OPINION p. p. 102
4 7.1.3 ELENCHUS OPINION - 5 Meter reading, call centre, and billing services costs are allocated by a weighted allocation - 6 factor that consider the costs of these sub-functions are largely driven by the number of - 7 customers but ther...

AI summary The text discusses the allocation of meter reading, call centre, and billing services costs using a weighted factor that considers both the number of customers and class revenues, with an 85%/15% weighting based on resource analysis.

2026-2027 GRA Direct Evidence Appendix 12B Page 46 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. pp. 102-103
2026-2027 GRA Direct Evidence Appendix 12B Page 46 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -46- NSP COSS Consultation Report Draft April 25, 2025 - judgement. 1 [11](#page-103-2) Allocating these costs typically relies on judgeme...

AI summary The text discusses the allocation of costs related to customer experience, solutions, and meter data services, emphasizing the use of direct allocations and adjustments for seasonal customers. Elenchus supports these methods as reasonable.

7.2.3 ELENCHUS OPINION p. p. 104
7.2.3 ELENCHUS OPINION - General plant provides support to the generation, transmission, and distribution functions - and there generally is no clear cost driver for these costs. The overall approach to - classifying and allocating general...

AI summary The opinion discusses the classification and allocation of general plant costs, emphasizing the need for periodic reviews to ensure accurate cost assignment. It supports breaking out computer software and communications equipment for more precise allocation and highlights the importance of aligning with Canadian methodologies.

7.3.2 NSP PROPOSED APPROACH p. p. 105
7.3.2 NSP PROPOSED APPROACH - 7 NS Power has refined the COSS to facilitate scenarios that allocate costs to PHP as a - 8 separate rate class PHP's loads and customer characteristics would be included in the - 9 derivation of allocators as...

AI summary NSP has refined the COSS to allocate costs to PHP as a separate rate class, ensuring its loads and customer characteristics are included in the derivation of allocators. PHP, being a transmission-connected customer, will not receive any allocation of distribution costs.

7.4.2 ELENCHUS OPINION p. p. 106
7.4.2 ELENCHUS OPINION - 4 The study conducted by BBA is consistent with, or in many cases more detailed, than line - 5 loss studies used in other jurisdictions across Canada. In Elenchus' view the results - 6 produced by BBA are appropria...

AI summary The Elenchus opinion supports the use of BBA's study in NS Power's cost of service analysis, noting its consistency and detail compared to other jurisdictions in Canada. The study is deemed appropriate for deriving loss-adjusted energy and demand allocators.

8 CONCLUSIONS p. p. 110
8 CONCLUSIONS 2 As stated in the Introduction the goal of this process was to identify appropriate changes 3 to NS Power's COSS in light of developments including the greater integration of wind 4 and other renewables, the addition of a gr...

AI summary The document discusses the need for refinements to NS Power's Cost of Service Study (COSS) methodology due to changes in technology and generation mix, such as increased renewables and gas-fired generation. It emphasizes that the fundamental principles of cost allocation remain unchanged, but adjustments are necessary to equitably assign costs to customer classes.

2026-2027 GRA Direct Evidence Appendix 12B Page 54 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 110
2026-2027 GRA Direct Evidence Appendix 12B Page 54 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -54- NSP COSS Consultation Report Draft April 25, 2025 1 with meeting the system's base, intermediate and peak demands. However, the 2 int...

AI summary The document discusses NSP's approach to classifying generation, transmission, and distribution costs in the context of evolving energy technologies and supply portfolios. It highlights the integration of renewable generation, storage, and PPAs, and proposes refining cost classifications to align with operational realities and best practices in ratemaking.

2026-2027 GRA Direct Evidence Appendix 12B Page 55 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 110
2026-2027 GRA Direct Evidence Appendix 12B Page 55 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -55- NSP COSS Consultation Report Draft April 25, 2025 1 of the functionalization of projects within general plant will better align suppo...

AI summary This text discusses refinements to NS Power's Cost of Service Study (COSS) to better align support costs with specific functions, address unique costing approaches for PHP, and update DSM rate rider weightings based on customer class. It also highlights a new line loss study conducted by BBA, which provides a more accurate basis for allocating line losses among rate classes.

7.3 Non-coincident demand loss allocation factors p. p. 135
7.3 Non-coincident demand loss allocation factors NS Power's cost of service methodology considers three categories for non-coincident demand losses: - Secondary voltage: includes service transformer and secondary conductor; - Primary volt...

AI summary NS Power's cost of service methodology categorizes non-coincident demand losses into three types: secondary voltage, primary voltage, and bulk power transformers, each encompassing specific equipment and infrastructure.

N-122026-2027 GRA FO 01-15 - Redacted 6 passages
2026 - 2027 Financial Outlook
2026 - 2027 Financial Outlook 1 (1) (2) (3) (4) (5) (6) (7) 2 Compliance Business Plan Present Rates Present Rates Proposed Rates Proposed Rates - ($ millions) 2024 Actual 2024 2025 2026 2027 2026 2027 3 4 Power Production $98.7 $104.5 $10...

AI summary The 2026-2027 financial outlook presents detailed expense projections for various departments and operations, including power production, enterprise asset management, environment, energy delivery, and corporate expenses. The table shows expected costs for the years 2026 and 2027, along with actual figures from 2024 and 2025.

65 OM&G/Customer
65 OM&G/Customer Co mpliance 66 Current Dollars 2024 202 24 Actual 2025BP 2026F 2027F 67 Power Production $ 181.1 $ 189.0 $ 193.1 $ 196.7 68 Enterpise Asset Management & Project Implementation 17.8 15.4 17.6 18.0 69 Environment 5.1 5.6 5.4...

AI summary The table provides a financial overview of various operational and management costs under the OM&G/Customer category for different years, including power production, enterprise asset management, environment, energy delivery, customer experience, and corporate adjustments.

92 Notes: 93
92 Notes: 93 94 95 96 1) Figures presented reflect whole numbers which may cause rounding differences on some line items. 2) Forecast annual inflation rates for Nova Scotia are from the Conference Board of Canada inflation forecast dated O...

AI summary The text provides notes on financial figures, including rounding differences, inflation rate sources, and discrepancies between actual figures and those presented in FOR-01 due to expense allocations.

Section 37
Nova Scotia Power Inc. FO-10Estimated Average Capital and Cost of Capital Year Ended December 31stThousands of Dollars

AI summary This document presents Nova Scotia Power Inc.'s FO-10 Estimated Average Capital and Cost of Capital for the year ended December 31, with figures provided in thousands of dollars.

Section 39
1) Figures presented reflect whole numbers which may cause rounding differences on some line items. 34 2) Pre-tax equity cost excludes the income tax gross-up factor.

AI summary The text notes that figures are rounded to whole numbers, which may cause discrepancies in line items. It also clarifies that pre-tax equity cost excludes the income tax gross-up factor.

1) Figures presented reflect whole numbers which may cause rounding differences on some line items.
1) Figures presented reflect whole numbers which may cause rounding differences on some line items. 1 Requirement: 2 3 Average rate base, supporting schedule – allowance for materials & supplies. 4 5 Submission: 6 7 Please refer to Partial...

AI summary The document discusses the submission of a partially confidential attachment related to the average rate base and allowance for materials and supplies. It notes that figures presented are whole numbers, which may cause rounding differences on some line items.

N-132026-2027 GRA OE-01-13 - Redacted 18 passages
6 Submission: p. p. 36
6 Submission: Goods/Service Goods/Service CAD $ Value Short Description Provider Receiver _ NS Power NS Power Energy 2024 - Gas Sales Marketing Inc. Emera Energy NS Power 2024 - Gas Purchased Brooklyn Power NS Power 2024 – Power Corporatio...

AI summary The submission includes tables detailing financial transactions, such as gas and power sales and purchases, and provides information on export and import power calculations. It also references confidential attachments related to fuel supply studies and power calculations over specific financial timeframes.

3.0 CALCULATION OF THE FAM RATE p. p. 41
nd of September (year 1). The actual BA starting balance for the following year (year 2) is the over- or under-recovery of the Actual Adjustment and Balance Adjustment at the end of December (year 1). Appendix "A" to this Plan of Administr...

AI summary The document outlines the methodology for calculating the Fuel Adjustment Mechanism (FAM) Rate, including the Actual Adjustment (AA) and Balancing Adjustment (BA). It references Appendix A for sample calculations and explains fuel-related cost allocation across non-FAM classes, aligning with the FAM Tariff in Appendix E.

• Costs directly applied: p. p. 41
• Costs directly applied: - o Third Party Fuel Handling, Transportation (e.g movement between Long Term Dead Storage/Bear head and plants) and Maintenance related to Coal Piles - o Storage fees (e.g. lease, handling fees, facility fees) -...

AI summary The text lists various costs directly applied, including third-party fuel handling, storage fees, environmental compliance fees, rail car costs, and international pier operating and maintenance costs.

Section 39 p. p. 41
- Diesel Commodity Consumed - Transportation Costs - Quality Testing and Inventory Measurement Costs

AI summary The text lists various costs associated with diesel consumption, transportation, and quality testing and inventory measurement. These are likely operational or logistical expenses related to energy or utility operations.

Preamble p. p. 41
- LFO (Light Fuel Oil) Commodity Consumed - Transportation Cost - Quality Testing and Inventory Measurement Costs - GHG Emission Compliance Program costs Costs of this type are normally recorded in the following accounts in NS Power's Char...

AI summary The text lists specific costs related to LFO consumption, transportation, quality testing, and GHG emission compliance, and identifies the corresponding account in NS Power's Chart of Accounts.

7.0 DEFINITIONS p. pp. 64-65
7.0 DEFINITIONS Actual Adjustment (Refund)/Recovery Rate – AA: is an Actual Adjustment which consists of the difference between fuel-related costs recovered from a rate class through the application of the base rates and the actual fuel co...

AI summary This section defines key terms related to fuel costs and financial adjustments in the regulatory proceeding, including Actual Adjustment (Refund)/Recovery Rate (AA), Balance Adjustment (Refund)/Recovery Rate (BA), and Annual Weighted Average Cost of Capital (WACC). These definitions clarify how fuel costs are accounted for and recovered in the rate structure.

Rates p. p. 65
Rates - q) Line 18: calculate the 'Base Cost of Fuel per MWh' by multiplying line 12 by 1000, then dividing the product by line 17. - r) Line 19: calculate the 'Base Cost of Fuel per kWh' by dividing line 18 by 1000. - NOTE: The Base Cost...

AI summary The text provides instructions on calculating the Base Cost of Fuel per MWh and per kWh, referencing the Cost of Service Study (COSS) and the Annual Weighted Average Cost of Capital (WACC) for use in financial modeling.

4.1.6 Unit Variable Operation and Maintenance (O&M) Costs p. p. 65
4.1.6 Unit Variable Operation and Maintenance (O&M) Costs The incremental operating and maintenance costs will be calculated based on variable operating costs and net generation over a five-year period. The variable operating and maintenan...

AI summary This section discusses the calculation of variable operating and maintenance (VOM) costs for Nova Scotia Power's thermal plants, including the formula used and principles applied, such as the exclusion of certain capital costs and adjustments for low capacity factors.

5.5 Rail Car Lease p. p. 65
5.5 Rail Car Lease The Rail Car Lease costs will be calculated based on current contract prices. If no contracts are in place for the forecast period, the average of the two lowest evaluated and compliant bids will be used.

AI summary The Rail Car Lease costs are determined using current contract prices, and if no contracts exist, the average of the two lowest evaluated and compliant bids will be used for the forecast period.

( Confidential and Non-Confidential Versions ) p. p. 65
( Confidential and Non-Confidential Versions ) - Per commodity breakdown of total consumption costs, consumption MMBtu, price $/MMBtu and price $/MWh for Solid Fuel, Natural Gas, Biomass, Bunker Oil (Heavy Fuel Oil), Light Fuel Oil, Import...

AI summary The text provides a breakdown of total consumption costs by commodity, including price per MMBtu and MWh, along with actual and budget figures for the current month and year-to-date. It also includes percent changes and total annual budgets for various fuel types and energy sources.

Q-7 NATURAL GAS DETAIL REPORT ( Confidential ) p. p. 65
Q-7 NATURAL GAS DETAIL REPORT ( Confidential ) - Natural gas purchase quantities by supplier - Prices paid for quantities purchased - Cost/benefit of settled hedges applicable to purchases - Quantities consumed to generate electricity, sep...

AI summary This confidential Q-7 Natural Gas Detail Report outlines the purchase and sale of natural gas, including quantities, prices, hedge settlements, and costs. It separates data by generation units and includes financial metrics such as net margin, inventory changes, and forecasts for current and future periods.

A-3 FUEL COST SUMMARY ( Confidential ) p. p. 65
A-3 FUEL COST SUMMARY ( Confidential ) - Fuel costs summary by type per MWh - Reporting periods include year to date, prior period year to date, forecast next year

AI summary This confidential fuel cost summary provides an overview of fuel costs by type per MWh, covering year-to-date, prior year-to-date, and forecasted next year data.

Lingan Monthly Station Fuel Costs p. p. 152
Lingan Monthly Station Fuel Costs NOVA SCOTIA POWER Period: MONTH-Year $CAD Submitted: Date Cost Centre=LIN (Linga FER-16 MAR-16 Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Tonnes MMBT...

AI summary The document provides a detailed breakdown of monthly fuel costs for the Lingan Station operated by Nova Scotia Power, including costs for natural gas, biomass, Green MT, Bunker C, diesel, and furnace fuel, along with associated metrics such as MMBTU, tonnes, and costs per unit.

NOVA SCOTIA POWERPeriod: MONTH-Year $CADSubmitted: Date p. p. 152
NOVA SCOTIA POWERPeriod: MONTH-Year $CADSubmitted: Date Cost Cen tre=L IN (L ingan ) JAN -16 Fore FEB -16 Fore MAR -16 Fore APR -16 Fore MAY -16 Fore JUN -16 Fore JUL- 16 Fore AUG -16 Fore SEP- 16 Fore OCT -16 Fore NOV -16 Fore DEC -16 For...

AI summary The document contains a table with cost data related to fuel imports and consumption for Nova Scotia Power during the period of January to December 2016. The table includes metrics such as tonnes, MMBTU, and costs per tonne and per MMBTU for various fuel types like domestic, pet coke, and other solid fuels.

FX Adj on Costs FX Adj'd Cost(Benefit) Other Costs p. p. 152
FX Adj on Costs FX Adj'd Cost(Benefit) Other Costs FO a l Gas MTM on H nd N atura Total Othe r Cos ts Total Fuel & PP New Gas L page oss Total Fuel and Purc hased Po Pt. Aconi Solid Fuel Costs by Supplier NSPI (FAM) A-10p

AI summary The text presents a table related to FX adjustments on costs, fuel and purchased power costs, and other costs. It also references a part titled 'Pt. Aconi Solid Fuel Costs by Supplier NSPI (FAM) A-10p', indicating a detailed breakdown of fuel costs by supplier.

NOVA SCOTIA POWER Period: MONTH-Year $CAD Submitted: Date NSPI (FAM) A-10s CONFIDENTIAL p. p. 152
NOVA SCOTIA POWER Period: MONTH-Year $CAD Submitted: Date NSPI (FAM) A-10s CONFIDENTIAL JAN-16 FEB-16 MAR-16 APR-16 MAY-16 JUN-16 JUL-16 AUG-16 SEP-16 OCT-16 NOV-16 DEC-16 Total Forecast Forecast Forecast Forecast Forecast Forecast Forecas...

AI summary The document presents a table with forecasted data on fuel costs for various types, including solid fuel, bunker C, and furnace fuel, across multiple months in 2016. It includes metrics such as tonnes, barrels, gallons, MMBTU, and associated costs per unit. The table is part of a submission by Nova Scotia Power related to fuel costs and generation by fuel type.

Combustion Turbines Thermal Station Fuel Costs p. p. 152
Combustion Turbines Thermal Station Fuel Costs NOVA SCOTIA POWER Period: MONTH-Year $CAD Submitted: Date Cost Centre=CTS (Combustion Turbin FER-16 MAR-16 Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Tonn...

AI summary The text presents a detailed table of fuel costs for the Combustion Turbines Thermal Station operated by Nova Scotia Power, including data on natural gas, biomass, and other fuels, along with associated costs and adjustments.

CONFIDENTIAL p. pp. 59-81
CONFIDENTIAL Cost Centre=LIN (Lingan) Pe Actual riod-to-date - Forecast > <- Variance Y Actual ear-to-date - Forecast > Variance Forecast Full Year Prior YTD C Actual urr/Prior YT Variance Solid Fuel Tonnes MMBTU Costs $ per Tonne $ per MM...

AI summary The text presents a detailed table of fuel and energy costs, including metrics for various fuels such as solid fuel, natural gas, biomass, bunker C, and diesel. The table includes data on consumption, costs, and variances compared to forecasts, as well as adjustments related to foreign exchange and other factors.

N-142026-2027 GRA OP 01-15 - Redacted 27 passages
Adjusting Item Impacting 2025: p. p. 33
Adjusting Item Impacting 2025: Charges Related to the Pending Sale of NMGC: On August 5, 2024, Emera entered into an agreement to sell NMGC. In Q2 2025, the Company recognized a $71 million non-cash impairment charge, after-tax, and an add...

AI summary In Q2 2025, Emera recognized a $71 million non-cash impairment charge and an additional $1 million loss in estimated transaction costs related to the pending sale of NMGC, which was agreed upon on August 5, 2024.

Operating Expenses p. p. 33
Operating Expenses For Q2 2025, operating expenses increased $264 million compared to Q2 2024 and, excluding charges related to the pending sale of NMGC of $75 million, increased $189 million. Year-to-date operating expenses increased $434...

AI summary Operating expenses increased significantly in Q2 2025 compared to Q2 2024, driven by higher natural gas prices, storm cost recognition, and increased depreciation. These increases were partially offset by lower OM&G at Corporate and the timing of compensation expenses. The year-over-year increase was also influenced by a weaker CAD.

Florida Electric Utility p. p. 33
Florida Electric Utility Three months ended Six months ended For the June 30 June 30 millions of USD (except as indicated) 2025 2024 2025 2024 Operating revenues – regulated electric $ 839 $ 672 $ 1,488 $ 1,220 Regulated fuel for generatio...

AI summary The document presents financial data for Florida Electric Utility and Canadian Electric Utilities, including operating revenues, fuel costs, and contribution to consolidated net income for the periods ending June 30, 2025, and 2024. It highlights the impact of foreign exchange rates on CAD earnings and provides details on changes in operating revenues, fuel costs, and other financial factors.

Preamble p. pp. 27-33
(2) Segment net income is reported on a basis that includes internally allocated financing costs of $7 million for the three months ended June 30, 2024, and $14 million for the six months ended June 30, 2024 between the Gas Utilities and I...

AI summary The text discusses the allocation of internally generated financing costs to different business segments, specifically noting amounts of $7 million for the three months and $14 million for the six months ending June 30, 2024.

Executive Summary p. pp. 114-115
Executive Summary - ◼ Nova Scotia Power Inc. (NSPI) commissioned this benchmarking effort in 2024 to provide useful directional-based insights around OM&G and capital costs, allowing NSPI to better understand how its overall performance co...

AI summary Nova Scotia Power Inc. (NSPI) conducted a benchmarking study in 2024 to compare its OM&G and capital costs with peers. The study found that NSPI's OM&G costs are generally favorable, with most metrics in the first quartile, though the gap with peers has narrowed due to increased expenses and customer growth. NSPI's capital employed per retail customer is below the median.

Corporate Support Metrics p. pp. 117-118
Corporate Support Metrics Category Industry Group Median NSPI Performance Finance & Accounting Metrics Invoices Processed per Full Time Equivalent (FTE) 9,540 7,548 % Electronic Invoices/ Paperless Payments 50% 88% Finance & Accounting Cos...

AI summary The document presents corporate support metrics for NSPI, comparing its performance against industry group medians in areas such as finance, human resources, supply chain, and information technology. NSPI performs more favorably in some metrics and less favorably in others, with key indicators highlighting areas of strength and improvement opportunities.

EW2 – Total OM&G per Retail Customer p. pp. 127-128
EW2 – Total OM&G per Retail Customer - ◼ On a 5-year average basis, NSPI Total OM&G\ per Retail Customer is first quartile and second lowest among peers - ◼ NSPI Total OM&G per Retail Customer increased 17.2% from 2019 to 2023 (4.0% CAGR)...

AI summary NSPI's Total OM&G per Retail Customer has increased significantly compared to peers over the past five years, with a 17.2% increase from 2019 to 2023, while the peer median increased only 3.3% over the same period. NSPI's OM&G per customer is in the first quartile and second lowest among peers.

Observations p. p. 135
Observations - ◼ On a 5-year average basis, NSPI Distribution OM&G per Retail MWh Sold is first quartile and third lowest among peers - ◼ NSPI Distribution OM&G per Retail MWh Sold increased 31% from 2019 to 2023 (7.0% CAGR) while the peer...

AI summary NSPI's Distribution OM&G per Retail MWh Sold has increased significantly compared to peers over the past four years, with a 31% increase from 2019 to 2023. However, NSPI's OM&G per MWh was significantly lower than the peer median in 2020, 2021, and 2022. NSPI's Retail MWh Sold increased slightly compared to peers during the same period.

Observations p. p. 139
Observations - ◼ On a 5-year average basis, NSPI Production OM&G\ per MWh Generated is first quartile and third lowest among peers - ◼ NSPI Production OM&G per MWh Generated increased 36% from 2019 to 2023 (8.0% CAGR) while the peer median...

AI summary NSPI's Production OM&G per MWh Generated has increased significantly compared to peers over the past five years, with a 36% increase from 2019 to 2023, while peer median increased by 13%. NSPI's MWh Generated decreased by 19% in 2023 compared to 2019, while the peer median decreased by 21%.

Factors Contributing to Performance p. p. 139
Factors Contributing to Performance ◼ Cost increases can be attributed to several key factors. First, the adoption of unit flexible operations has led to higher operational costs due to the increased frequency of unit startups and shutdown...

AI summary Increased operational costs are attributed to unit flexible operations and environmental compliance requirements, which reduce operational efficiency. The text highlights the impact of frequent unit startups and shutdowns, as well as the effect of generating less energy on efficiency.

PP2-ACFB – Production OM&G per MWh Generated p. pp. 141-142
PP2-ACFB – Production OM&G per MWh Generated - ◼ On a 5-year average basis, Point Aconi Production OM&G\ per MWh Generated is the lowest in the peer group - ◼ Point Aconi Production OM&G per MWh Generated increased 30% from 2019 to 2023 (6...

AI summary Point Aconi's Production OM&G per MWh Generated is the lowest in the peer group on a 5-year average basis. However, it increased by 30% from 2019 to 2023, compared to a 28% increase in the peer group median. Despite this, OM&G increased only 6% while MWh Generated decreased by 18% over the same period.

PP2-CC – Production OM&G per MWh Generated p. pp. 142-143
PP2-CC – Production OM&G per MWh Generated - ◼ On a 5-year average basis, Tufts Cove combined cycle plant Production OM&G\ per MWh Generated is the lowest in the peer group - ◼ Production OM&G per MWh Generated for the Tufts Cove combined...

AI summary The Tufts Cove combined cycle plant has the lowest 5-year average Production OM&G per MWh Generated among peer plants. However, its OM&G per MWh increased by 22% from 2019 to 2023, compared to a 47% increase in the peer group median. Despite this, Tufts Cove's OM&G increased 54% over the same period, while MWh Generated rose by 27%.

CS2 – Total Customer Accounts OM&G per Retail MWh Sold p. pp. 146-147
CS2 – Total Customer Accounts OM&G per Retail MWh Sold - ◼ On a 5-year average basis, NSPI Total Customer Accounts OM&G per Retail MWh Sold is just within the second quartile compared to peers - ◼ NSPI Total Customer Accounts OM&G per Reta...

AI summary NSPI's Total Customer Accounts OM&G per Retail MWh Sold is within the second quartile compared to peers, with a 10% increase from 2019 to 2023, compared to a 16% increase in peer median values. NSPI's OM&G increased 11% in nominal terms, while peer median OM&G decreased 14% over the same period. Retail MWh Sold increased slightly for NSPI but more significantly for peers.

Observations p. p. 170
Observations - ◼ NSPI Finance & Accounting Cost as Percent of Revenue in 2024 is 0.18 percentage points below (or better than) the industry group median - ◼ NSPI Finance & Accounting Cost as Percent of Revenue decreased 0.03 percentage poi...

AI summary This section discusses NSPI's Finance & Accounting Cost as a percentage of revenue in 2024, showing it is below the industry median and has decreased slightly over the past few years. Despite a 6% nominal increase in finance costs from 2019 to 2023, regulated revenue grew by 17% during the same period.

Observations p. p. 171
Observations - ◼ NSPI Cost per invoice in 2023 is significantly lower (or better) than the industry group median - ◼ NSPI Cost per Invoice increased 8% over the period 2019 to 2023 (1.9% CAGR) - ◼ NSPI's costs to generate and deliver invoi...

AI summary NSPI's cost per invoice in 2023 is lower than the industry median, but has increased by 8% from 2019 to 2023. The total cost to generate and deliver invoices increased by 13% over the same period, despite a 4% increase in the number of invoices.

Observations p. p. 174
Observations - ◼ NSPI Total HR Cost per FTE in 2023 is 21% higher than the industry group median - ◼ NSPI Total HR Cost per FTE increased 21% over the period 2019 to 2023 (6.3% CAGR), with most of the increase occurring in 2023 - ◼ NSPI To...

AI summary The text highlights that NSPI's total HR cost per FTE in 2023 is 21% higher than the industry median, with a 21% increase from 2019 to 2023, driven mainly by a 41% nominal increase in total HR costs, despite an 11% growth in the number of employees.

Factors Contributing to Performance p. p. 174
Factors Contributing to Performance ◼ NSPI has seen increased HR costs due to the need to attract, retain and train specialized employees. There is a general shortage of skilled trade employees in Canada resulting in the need for increased...

AI summary NSPI has experienced increased HR costs due to a shortage of skilled trade employees in Canada. The company must invest more in recruitment and internal training programs to attract and retain specialized workers. The HR cost metric is defined as the total cost to develop and manage human capital divided by the number of employees.

Summary Observations p. pp. 176-190
Summary Observations - ◼ NSPI has seen increased HR costs due to the need to attract, retain and train specialized employees. There is a general shortage of skilled trade employees in Canada resulting in the need for increased investment t...

AI summary NSPI has experienced increased HR costs due to a shortage of skilled trade employees in Canada. While NSPI's employee-to-HR-FTE ratio is favorable, the time to fill positions is longer than the industry median, though showing an improving trend.

Observations p. p. 179
Observations - ◼ NSPI Total Cost to Perform the Process Group "Procure Materials and Services" per $1,000 Revenue in 2023 is 16% lower than the industry group median - ◼ NSPI Total Cost to Perform the Process Group "Procure Materials and S...

AI summary The document highlights that NSPI's cost to perform the 'Procure Materials and Services' process group per $1,000 revenue has decreased significantly over the past few years, showing improvements in procurement efficiency compared to industry benchmarks.

Observations p. p. 180
Observations - ◼ NSPI Percent of Supply Management Positions that are Strategic in 2023 is 13 percentage points lower than the industry group median - ◼ NSPI Percent of Supply Management Positions that are Strategic decreased 1 percentage...

AI summary The document highlights that NSPI's percentage of strategic supply management positions has decreased compared to industry benchmarks, with a 13 percentage point gap in 2023 and a 1 percentage point decline between 2019 and 2023. The number of strategic FTEs remained flat, while total FTEs in sourcing and purchasing increased slightly.

Observations p. p. 181
Observations - ◼ NSPI Average Days from Receipt of Purchase Requisition to PO Placement in 2023 is above the industry group median - ◼ NSPI Average Days from Receipt of Purchase Requisition to PO Placement increased 18% between 2019 and 20...

AI summary The document highlights that NSPI's average cycle time to issue a purchase order increased by 18% from 2019 to 2023, exceeding the industry group median. This is based on APQC procurement benchmarks for utilities.

Observations p. p. 186
Observations - ◼ NSPI Total IT Cost per $1,000 Revenue in 2023 is 46% higher than the industry group median, and 3% lower than the third/fourth quartile line - ◼ NSPI Total IT Cost per $1,000 Revenue increased 20% between 2019 and 2023 (4....

AI summary NSPI's IT costs per $1,000 revenue have increased significantly, with a 20% rise between 2019 and 2023 and a 40% increase over the past five years, outpacing revenue growth.

Observations p. p. 187
Observations - ◼ NSPI Total IT Cost per Business Entity FTE in 2023 is 24% lower than the industry group median for 2024 - ◼ NSPI Total IT Cost per Business Entity FTE increased 18% between 2019 and 2023 - ◼ NSPI Total IT Cost increased 40...

AI summary The document compares NSPI's IT cost per FTE against industry benchmarks, noting a 24% lower cost in 2023 than the median, but an 18% increase from 2019 to 2023, with total IT costs rising 40% over five years despite an 18% increase in FTEs.

Observations p. p. 188
Observations - ◼ Percentage of Total IT Cost Allocated to Capital Costs in 2023 is just above the industry group median - ◼ NSPI Percentage of Total IT Cost Allocated to Capital Costs decreased by 16 percentage points between 2019 and 2023...

AI summary The text discusses changes in NSPI's IT cost allocation and capital costs over time, noting a decrease in the percentage of IT costs allocated to capital costs and a decline in capital costs compared to an increase in total IT costs.

Factors Contributing to Performance p. p. 188
Factors Contributing to Performance ◼ The trend in reduced allocation of costs to capital is explained by movement of services to the Cloud, resulting in reduced need for IT infrastructure investment (i.e., servers) and a higher proportion...

AI summary The reduction in IT capital cost allocation is attributed to the shift towards cloud-based services, reducing the need for physical IT infrastructure and increasing the use of software as a service models.

OUR STRATEGIC PRIORITIES p. p. 37
OUR STRATEGIC PRIORITIES Always leading with Health & Safety Advancing Cleaner Energy towards our Net-Zero Vision Enhancing Reliability Driving Innovation Empowering our Teams & Communities Always Working to Minimize Cost Impacts for Custo...

AI summary The document outlines the strategic priorities of Nova Scotia Power Inc., emphasizing health and safety, cleaner energy initiatives, reliability, innovation, team empowerment, and minimizing cost impacts for customers.

PGS 2026 Revenue Requirement + 2027 Subsequent Year Adjustment p. pp. 179-180
PGS 2026 Revenue Requirement + 2027 Subsequent Year Adjustment 2026 2027 Rate Base Growth 48 - Depreciation 19 6 O&M 23 - Taxes Other Than Income Taxes 9 7 Cost of Capital 15 14 Revenue Growth, excluding CI/BS1 Rider (10) - BASE REVENUE RE...

AI summary The document outlines the 2026 Revenue Requirement and the 2027 Subsequent Year Adjustment for PGS, including details on rate base growth, depreciation, operating and maintenance costs, taxes, cost of capital, and net revenue required.

N-162026-2027 GRA RB 01-16 - Redacted 1 passage
2026-2027 Financial Outlook
2026-2027 Financial Outlook 1 (1) (2) (3) (4) (5) (6) (7) 2 Compliance Rates 2024 Actual 2024 Present Rates 2025 Present Rates 2026 Present Rates 2027 Proposed Rates 2026 Proposed Rates 2027 3 4 Net Regulated Plant in Service $4,455.8 $4,6...

AI summary The 2026-2027 Financial Outlook presents a table with various financial metrics, including Net Regulated Plant in Service, Net Utility Fixed Assets, Deferred Charges & Credits, and the Regulated Rate Base. It also includes details on the Weighted Average Cost of Capital and Total Revenue Requirement for different years.

N-172026-2027 GRA SR-01-SR-04 - Redacted 2 passages
Interruptible
Interruptible Base cost of fuel ¢/kWh 8.342 7.434 -0.908 -10.9% Non-fuel ¢/kWh 2.064 2.224 0.160 7.8% Subtotal 10.406 9.658 -0.748 -7.2% FAM AA ¢/kWh 0.000 0.000 0.000 0.0% FAM BA ¢/kWh 0.224 0.224 0.000 0.0% Subtotal 0.224 0.224 0.000 0.0...

AI summary The text presents a comparison of costs related to interruptible service, showing a decrease in base fuel costs and an increase in non-fuel costs, with no changes in various adjustment mechanisms and recovery riders.

Unmetered Service Rates: Miscellaneous Lighting & Small Loads
63,496,344 Total Wind 325,044,395 168,638,932 325,868,816 158,353,757 325,456,606 163,496,344 Gas Turbine Tufts Cove #4 $60,089,448 $56,210,620 $60,754,030 $53,744,509 60,754,030 53,744,509 Tufts Cove #5 $42,624,931 $38,401,812 $45,076,326...

AI summary The text provides a detailed breakdown of generation and gas turbine costs, including specific figures for various facilities and total generation assets. It includes data on total wind generation, gas turbine operations, and other related costs, offering a comprehensive overview of financial metrics associated with energy production.

N-19Proof of Advertisement – NSPI 1 passage
Preamble p. p. 3
The Fuel Adjustment Mechanism (FAM) and the Actual Adjustments (AA) or Balancing Adjustments (BA) is proposed to continue to operate in the normal course during 2026 and 2027, with new Base Cost of Fuel (BCF) amounts set for 2026 and 2027....

AI summary The Fuel Adjustment Mechanism (FAM) and related adjustments (AA/BA) are proposed to continue in 2026 and 2027 with updated Base Cost of Fuel (BCF) values. The Demand Side Management Rider is also proposed to continue with calculation changes.

N-20NSPI (Bates White) RIR 1-20 - Redacted 4 passages
2026-2027 General Rate Application (M12451) NSPI Responses to Bates White Information Requests p. pp. 4-185
2026-2027 General Rate Application (M12451) NSPI Responses to Bates White Information Requests 1 Request IR-3: 9 Cost of Fuel cost responsibility for the Small Industrial class without any smoothing. To 10 reconcile the Small Industrial cl...

AI summary The document discusses the 2026-2027 General Rate Application (M12451) and NSPI's responses to information requests, focusing on the Blended Cost Factor (BCF) rates for Small Industrial class customers and the Fuel Adjustment Mechanism (FAM). It references specific cells in spreadsheets and highlights the proposed use of a smoothed scenario for BCF rates.

Section 448 p. p. 182
At page 27, lines 15-16 the Direct Evidence states: "The forecast fuel and purchased power costs for the two-year test period amount to $1.8 billion, $919 million in 2026 and $918 million in 2027." In Request IR-1 we requested that Exhibit...

AI summary The Direct Evidence outlines forecast fuel and purchased power costs for the two-year test period totaling $1.8 billion. A request is made to correct Exhibit FOR-07 Att 1 and to provide an updated version of Figure 4-3 from the 2022-2024 GRA, incorporating the 2024 GRA Refresh, 2025 FAM, 2026 GRA, and 2027 GRA.

NSPI Amendments to the Plan of Administration (NSUARB M11127) NSPI Responses to CA Information Requests p. p. 219
NSPI Amendments to the Plan of Administration (NSUARB M11127) NSPI Responses to CA Information Requests 1 Request IR-1: 2 3 Reference: Application, pp. 1-3. 4 5 Please provide the current and proposed future treatment of the four types of...

AI summary NSPI responds to information requests regarding the treatment of various costs in dispatch, operational planning, and long-term planning. Ash haulage costs are included in variable fuel costs, while wind farm maintenance and Tufts Cove wharf maintenance costs are treated as fixed costs. The response highlights the inclusion and exclusion of specific costs in planning models.

PARTIALLY CONFIDENTIAL p. p. 219
PARTIALLY CONFIDENTIAL 1 At South Canoe the variable costs are associated with the warranty agreement which generally 2 warrants the turbines against defects and warrants that the technical availability of the turbines will 3 be greater th...

AI summary The text discusses variable costs associated with warranty agreements for wind turbines at South Canoe, Sable, and Point Tupper wind farms, including technical availability guarantees and financial implications of not meeting these guarantees. The variable component is based on generation and established rate (\/MWh).

N-21NSPI (CA) RIR 1-3 - Redacted 2 passages
REDACTED p. p. 2
REDACTED 1 (b) Please provide revised cost-of-service models (2026-2027 GRA SR-01 Att 02 and 2 2026-2027 GRA SR-01 Att 03) and other related attachments using the PHP 3 Interruptible system coincident demand of 57,000 kW to calculate the P...

AI summary The document requests revised cost-of-service models and updated proposed rates for 2026 and 2027, along with explanations for Power Factor Adjustments. The response outlines the calculation method for PHP interruptible credit using power factors of 1.06 and 1.02 for 2026 and 2027, respectively, and multiplies annual kVA demand by proposed Large Industrial Credits.

NON-CONFIDENTIAL p. p. 2
NON-CONFIDENTIAL 1 Request IR-3: 2 3 What is the annual cost impact of applying the PHP credit to the lower interruptible 4 system coincident demand? 5 6 Response IR-3: 7 8 The cost impact of applying the PHP credit to the lower interrupti...

AI summary The annual cost impact of applying the PHP credit to the lower interruptible system coincident demand is estimated to be an $858,069 reduction in 2026 and an $825,825 reduction in 2027.

N-22NSPI (Cleary) RIR 1-11 - Redacted 10 passages
Regulatory Environment Assessment p. p. 63
Regulatory Environment Assessment Criteria 1. Deemed Equity Ratio Score Excellent Good Satisfactory Below Average Poor Analysis NSPI's target regulated ROE is based on an actual five-quarter average regulated common equity component of up...

AI summary The document assesses NSPI's regulatory environment, focusing on its target regulated ROE based on a five-quarter average of up to 40.0% common equity, with a 37.5% ratio used for rate-setting. Financial metrics such as non-cash financial charges, depreciation, and total costs are outlined, along with customer account numbers and employee counts.

Rating Report Nova Scotia Power Inc. DBRS.COM 11 p. p. 74
Rating Report Nova Scotia Power Inc. DBRS.COM 11 For the year ended December 31 Earnings Quality/Operating Efficiency 2017 2016 2015 2014 2013 2012 Fuel for generation and purchase power/Revenues 35.7% 36.1% 38.3% 38.0% 41.7% 40.0% EBIT ma...

AI summary The document presents financial and operational metrics for Nova Scotia Power Inc. (NSPI) over several years, including earnings quality, operating efficiency, return on equity, customer growth, and cost structures. It provides data on metrics such as EBIT margin, profit margin, and total costs, along with details on customer accounts and rate base.

Earnings and Outlook p. p. 86
Earnings and Outlook 12 mos. ended September 30 For the year ended December 31 (CAD millions where applicable) 2020 2019 2018 2017 2016 2015 Revenues 1,481 1,430 1,440 1,338 1,356 1,417 Fuel cost1 (685) (663) (639) (477) (490) (543) Net re...

AI summary This table presents financial data for a company over several years, including revenues, fuel costs, net revenues, EBITDA, EBIT, interest expenses, earnings before taxes, and net income. It also includes return on equity and regulated rate base information.

2020 Summary p. p. 111
2020 Summary - Earnings for NSPI have been relatively stable, reflecting the regulated nature of its operations. - DBRS Morningstar notes that NSPI has a FAM in place that allows the Company to recover actual fuel costs from customers thro...

AI summary NSPI's earnings remained stable in 2020 due to its regulated operations and the presence of a Fuel Adjustment Mechanism (FAM) that allows recovery of actual fuel costs. EBITDA and EBIT increased slightly due to higher residential sales and lower operational costs, but net income before nonrecurring items decreased due to higher income taxes.

Financial Profile p. p. 125
Financial Profile 12 mos. ended September 30 For the year ended December 31 (CAD millions where applicable) 2022 2021 2020 2019 2018 2017 Net income before nonrecurring items 151 141 125 138 131 129 Depreciation & amortization 255 248 242...

AI summary The financial profile presents key financial metrics for the period ending September 30, 2022, including net income before nonrecurring items, depreciation and amortization, capital expenditures, and free cash flow. It also highlights changes in total debt and cash flow relative to total debt.

Page 14 of 17 Nova Scotia Power Inc. January 19, 2023 p. p. 125
Page 14 of 17 Nova Scotia Power Inc. January 19, 2023 Operating Statistics For the year ended December 31 Earnings Quality/Operating Efficiency 2021 2020 2019 2018 2017 Fuel for generation and purchase power/revenues (%) 54.4 48.3 46.4 44....

AI summary The document presents operating statistics for Nova Scotia Power Inc. from 2017 to 2021, including earnings quality, operating efficiency, customer base growth, and various cost metrics such as fuel costs, variable costs, and depreciation. It also includes data on customer accounts, employee numbers, and rate base figures.

Page 13 of 16 Nova Scotia Power Inc. January 12, 2024 p. p. 143
Page 13 of 16 Nova Scotia Power Inc. January 12, 2024 Operating Statistics For the year ended December 31 Earnings Quality/Operating Efficiency 2022 2021 2020 2019 2018 Fuel for generation and purchase power/revenues (%) 56.7 54.4 48.3 46....

AI summary The document presents operating statistics for Nova Scotia Power Inc. over several years, including metrics such as earnings quality, operating efficiency, customer base growth, and various cost components like fuel, variable costs, and depreciation. It also details customer accounts and employee numbers across different sectors.

2026-2027 General Rate Application (M12451) NSPI Responses to CLEARY Information Requests p. p. 171
2026-2027 General Rate Application (M12451) NSPI Responses to CLEARY Information Requests 1 Monetary Policy Report (MPR), Figure 8 provides yield data for 30-year versus 10-year 4 which are reported in Figure 20 (page 45) of Appendix 10A....

AI summary NSPI responds to a question regarding the use of forecasted 30-year government bond yields in the cost of capital calculation, explaining that it is a forward-looking estimate based on investor expectations and economic indicators, and that recent actual interest rates have exceeded forecasts due to higher-than-expected inflation.

2026-2027 GRA Cleary IR-4 Attachment 1 Page 6 of 32 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 184
2026-2027 GRA Cleary IR-4 Attachment 1 Page 6 of 32 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Average % Change on Previous Calendar Vear Ann To 国内約 ※生産 民間 消費 民間 投 鉱工 業生産 消費物 -0.000 を除く エネル (酒類 ) 及び ギーを 総合 卸売 物価 現金 総 (名 額 新 1 登録 1 (百万 台数

AI summary The text is a partially redacted table with headers and some Japanese text, likely related to economic or statistical data. It includes terms such as 'domestic production,' 'private consumption,' 'energy,' and 'retail prices,' suggesting it may be related to economic indicators or cost analysis.

NON-CONFIDENTIAL p. p. 216
NON-CONFIDENTIAL 1 America) equal to its respective estimates of average long-term nominal GDP growth. 20 one particular industry (including utility stocks). If not confirmed, please explain. 21 22 (b) Please provide the Blume (1970) study...

AI summary The text contains a request for specific financial data and calculations related to beta estimates and the CAPM model. It asks for the Blume (1970) study, raw beta estimates, and recalculated cost of equity estimates. The response confirms the request and refers to attachments for the study and revised beta data.

N-23NSPI (Doane Grant Thornton) RIR 1-93 - Redacted 8 passages
CONFIDENTIAL (Attachment Only) p. p. 32
CONFIDENTIAL (Attachment Only) 1 Request IR-2: 2 3 Reference: General 4 5 Please explain assumptions used in forecasting labour costs for both union and non union 6 employees. Provide a copy of the internal labour forecast study produced w...

AI summary The document contains a request for explanations on assumptions used in forecasting labour costs for union and non-union employees, along with a reference to a confidential attachment summarizing research on future labour inflation costs.

2026-2027 General Rate Application (M12451) NSPI Responses to GT Information Requests p. pp. 32-43
2026-2027 General Rate Application (M12451) NSPI Responses to GT Information Requests 1 Request IR-3: 2 forecasts. Forecasts are prepared by the department leader, with assistance from the Finance team, 3 and then reviewed by Directors and...

AI summary NSPI outlines its process for preparing and reviewing forecasts, emphasizing the involvement of department leaders and executive leadership in justifying operating budgets. The process includes sensitivity analyses and adjustments to OM&G budgets to ensure improved value for customers. Labour reconciliation is also discussed, ensuring that labour forecasts align with actual salaries.

NON-CONFIDENTIAL p. pp. 32-43
NON-CONFIDENTIAL 1 Request IR-13: 2 3 Reference: N-6 - 2026-2027 GRA Direct Evidence Appendix 7C Page 9-10 of 58 4 5 Per N-6, (Appendix 7C), page 9-10 of 58, we understand that "advertising" is lower in 2024 6 actuals and 2024 compliance r...

AI summary Nova Scotia Power reduced advertising expenses in 2024 due to a strategic pause in existing outreach efforts while developing a new customer communication strategy. The reduction was primarily attributed to a greater focus on consulting engagements to better align with customer needs.

Preamble p. p. 43
8 (b) Increased contractor costs in the 2026 forecast compared to 2024 compliance are due to 9 similar reasons as outlined in part (a). In order to successfully execute all of the additional 10 work two new PLT Contractor companies are bei...

AI summary The 2026 forecast shows increased contractor costs due to new companies and higher labour demands from population growth and electrification. Additional work has led to a 40% rise in customer-requested tasks and a $400M increase in transmission and distribution investment over five years. Labour costs are calculated using historical data adjusted for growth.

NON-CONFIDENTIAL p. p. 43
NON-CONFIDENTIAL 1 Request IR-38: 2 3 Reference: N-6 - 2026-2027 GRA Direct Evidence Appendix 7C Page 41-42 of 58 4 - 5 Per N-6, (Appendix 7C), page 41-42 of 58, we understand that labour expense has increased - 6 from 2024 compliance rest...

AI summary The request (IR-38) asks for support showing increased staffing and salary escalations in Energy Delivery Services, citing increased labour expenses from 2024 to 2026. The response indicates that the increase is primarily driven by Wiring Inspection within the Total Meter and Planning Services team.

16 p. p. 43
16 Contractor Management T&D Contract Expense ($ thousands) 2024 Compliance Restated 2025 Budget 2026 Forecast 2026 Forecast vs 2024 Compliance 2026 Forecast vs 2025 Budget Fleet 4,784.9 8,037.2 3,252.3 1,708.7 Utility Services 803.7 5,777...

AI summary The table presents contractor management and transmission and distribution contract expenses for 2024, 2025, and 2026, showing increases in costs across various categories, with the total expense forecast to rise significantly from 2024 to 2026.

REDACTED p. p. 43
REDACTED 1 The increased costs for the Fleet department in the table above are a direct result of the significant 2 hiring of PLTs, Planners and Wiring Inspectors due to the increased customer work and reliability 3 investment over the las...

AI summary The text discusses increased costs in the Fleet department due to hiring additional personnel and vehicle maintenance delays caused by supply chain issues. It also references a request for normalized storm cost calculations in the 2026-2027 General Rate Application (M12451) and provides an attachment for the response.

13 p. p. 43
13 ($ million) 2025 2026 2027 Retirements, Salvage and Cost of Removal per RB-1 122.171 143.937 200.283 less: Retirements per RB-1 -102.015 -95.100 -148.823 plus: ARO Adjustment per RB-1 7.239 7.537 7.931 Total RB-1 27.395 56.374 59.391 ($...

AI summary The text presents financial data related to retirements, salvage, and cost of removal for RB-1 and FO-12 across the years 2025 to 2027. It includes adjustments for asset retirement obligations and reclassifications to COR and ARO liabilities.

N-24NSPI (ECC) RIR 1-41 1 passage
ACCOUNT 310.99 STEAM PRODUCTION PLANT p. p. 147
ACCOUNT 310.99 STEAM PRODUCTION PLANT YEAR (1) ORIGINAL COST (2) ACCRUED (3) CALCULATED ALLOC. BOOK FUT. BOOK RESERVE (4) ACCRUALS (5) REM. LIFE (6) ANNUAL ACCRUAL (7) 13,864.00 4,959.00 178,972.00 411,752.00 461,765.00 163,351.00 38,930.0...

AI summary The text presents a table detailing financial data for the Steam Production Plant under Account 310.99, including original costs, accrued amounts, calculated reserves, and annual accruals over various years. The data reflects financial allocations and reserves for the plant's operations.

N-25NSPI (IG) RIR 1 1 passage
NON-CONFIDENTIAL p. p. 0
NON-CONFIDENTIAL 2 3 Reference: Exhibit N-3, Direct Evidence, pages 95-96. 4 5 (a) Please provide a detailed breakdown for the cost allocation methodology (with tab 6 and line reference to the study) and any changes made to the rate design...

AI summary The response addresses an error in the Distribution Cost Adder (DCA) calculations for Large Industrial customers in 2026 and 2027, explaining a 27% increase in the DCA for 2026 and an 8% increase for 2027 due to a 30.4% rise in demand-related distribution costs.

N-26NSPI (MPA) RIR 1-9 - Redacted 1 passage
2026-2027 General Rate Application (M12451) NSPI Responses to MPA Information Requests p. p. 6
2026-2027 General Rate Application (M12451) NSPI Responses to MPA Information Requests 1 Request IR-3: 2 3 References: Direct Evidence p. 65: 4 5 "NS Power plans to continue participating in the Commercial Paper market 6 throughout 2026-20...

AI summary NSPI responded to MPA information requests regarding its 2026-2027 General Rate Application, stating that it plans to continue using the Commercial Paper market and providing estimates based on Bloomberg's 3-month T-Bill forecast. It also noted that a credit rating downgrade would increase borrowing costs significantly.

N-27NSPI (NSEB) RIR 1-152 - Redacted (settlement agreement attached at IR-1) 37 passages
GRA Element Settlement Terms p. p. 17
Appendix "A" GRA Element Settlement Terms Cost of Service ("COS") a) The COS as set out in the Draft GRA will be included in the 2026-2027 GRA and put forward for approval, subject to the following: (a) use of the Minimum System methodolog...

AI summary The document outlines settlement terms related to the Cost of Service (COS) and MEU Treatment in the 2026-2027 GRA. It specifies that the COS will be included in the GRA subject to future proceedings, and MEUs will be included in calculating the Municipal Tariff rates.

Allocation of DSM Program Costs p. p. 19
Allocation of DSM Program Costs System benefits are allocated to all applicable customer classes in accordance with the Cost of Service Study (COSS) methodology reflecting allocation of generation rate base as per the most recent rate case...

AI summary System benefits from DSM programs are allocated to all customer classes based on the Cost of Service Study methodology. Remaining costs are assigned to participating classes in proportion to their investment in the programs.

Section 59 p. p. 20
- 1. Quarterly test year figures are based on an allocation of the annual test year amounts as these amounts are not profiled quarterly. - 2. Increased compared to test year primarily due to increased thermal plant costs, partially offset...

AI summary The text outlines changes in various cost categories compared to the test year, noting increases and decreases due to factors such as thermal plant costs, operational costs, administrative overhead credits, and actuarial assumptions.

Investments in Emera Incorporated or NSPI p. p. 20
Investments in Emera Incorporated or NSPI As at December 31, 2024 and 2023, the assets related to the pension funds do not hold any material investments in Emera or NSPI securities. However, as a significant portion of assets for the benef...

AI summary As of December 31, 2024 and 2023, pension fund assets do not hold material investments in Emera or NSPI securities. However, due to pooled assets, there may be indirect investments in these securities.

Transactions between the Company and its related parties reported in the Consolidated Statements of Income and Consolidated Balance Sheets are as follows: p. p. 20
Transactions between the Company and its related parties reported in the Consolidated Statements of Income and Consolidated Balance Sheets are as follows: For the Year ended millions of dollars December 31 Nature of Service Presentation 20...

AI summary The document outlines transactions between the Company and related parties, including sales and purchases, as well as the issuance of common shares to Emera. Key figures include sales of management and administrative services, purchases of fuel and electricity, and a significant decrease in the number of shares issued in 2024 compared to 2023.

Inflation Risk: p. p. 75
Inflation Risk: The Company may be exposed to changes in inflation that may result in increased operating and maintenance costs, capital investment, and fuel costs compared to the revenues provided by customer rates.

AI summary The Company faces potential inflation risks that could increase operating and maintenance costs, capital investment, and fuel costs, which may not be fully offset by customer rates.

Supply Chain Risk p. p. 75
Supply Chain Risk NSPI's ability to meet customer energy requirements, respond to storm-related disruptions and invest in capital in a cost-effective and timely manner are dependent on maintaining an efficient supply chain. Domestic and gl...

AI summary NSPI's operations are vulnerable to supply chain risks, including delays, cost increases, and shortages due to domestic and global issues, inflation, labor shortages, and regulatory changes. These risks could impact the company's ability to meet customer needs and invest in capital projects.

1 Figure 8 – Project Accountabilities Matrix p. p. 134
1 Figure 8 – Project Accountabilities Matrix 2030 Projects Accountability NS Power Key Action Items NS Government Key Action Items Partner Key Action Items 24 • There continues to be constraints in the global electricity industry supply ch...

AI summary The document highlights ongoing supply chain constraints in the global electricity industry, including high demand, inflation, and geopolitical factors, leading to longer lead times and increased costs. It also notes a 2024 trend of reduced risk related to inflationary cost pressures.

1 Request IR-32: p. p. 63
Section 4 of the Community Solar Program Regulations provides "A subscriber must not be charged any additional fees by NSPI or a project owner to participate in the community solar program," and Section 5 provides "A subscriber is billed b...

AI summary Section 4 and 5 of the Community Solar Program Regulations outline billing rules for subscribers. The request IR-32 seeks clarification on costs being moved from OM&G to FAM and inquires about the 2024 test year forecast amounts. It also questions the removal of Tufts Cove Wharf / Buoy Chain Inspection and Maintenance Costs from OM&G forecasts for 2026 and 2027.

Section 563 p. p. 63
9 (c) The Tufts Cove Wharf / Buoy Chain Inspection and Maintenance Costs have been removed from the Tufts Cove and Combustion Turbines OM&G forecast for 2026 and 2027. The NS Power-Owned Variable Production Costs, which includes third part...

AI summary The Tufts Cove Wharf / Buoy Chain Inspection and Maintenance Costs have been removed from the Tufts Cove and Combustion Turbines OM&G forecast for 2026 and 2027. NS Power-Owned Variable Production Costs, including third-party production bonuses and penalties for NS Power-owned Wind Generation, have been removed from the Wind Hydro & Solar OM&G forecast for 2026 and 2027.

Section 565 p. p. 67
& quot;Although the actual AA figures will be based on 12 months of actuals, there will be a BA based on the difference between the forecast sales and the actual sales and as a result of financing costs on the AA balance while it is being...

AI summary The text discusses the calculation of actual AA figures based on 12 months of actual sales, as well as the BA based on forecast versus actual sales and financing costs associated with the AA balance.

4 p. p. 87
4 Component Contribution ($ millions) Reduction to 2027 OM&G per Consensus Agreement 9.0 Inflation 7.3 Increased Pension Expense 2.2 Increased Corporate Expense (IT and Insurance) 1.7 Decreased Administrative Overhead 1.7 Total 22.1 5

AI summary The document outlines various financial contributions and adjustments, including reductions in operational and maintenance costs, inflation impacts, increased pension and corporate expenses, and decreased administrative overhead, totaling $22.1 million.

REDACTED p. p. 87
REDACTED 1 Request IR-51: 2 3 Reference: Exhibit N-6, Appendix 7A. 4 5 Please explain the basis for the labour inflation rates noted on page 6 in Appendix 7A. 6 7 Response IR-51: 8 9 The labour inflation rates for union employees were dete...

AI summary The document discusses labour inflation rates based on a collective agreement and economic indicators, as well as actual operating expenses related to the Nova Scotia Block. NS Power provided explanations for these figures, citing a 4% increase in union wages and data from Mercer, while noting that the Nova Scotia Block was not the primary driver of increased expenses.

22 (b) Please see the table below: p. p. 87
22 (b) Please see the table below: ($ million) 2020 2021 2022 2023 2024 2020-2024 Average 21 22 Response IR-59: 23 (a) 24 i. NS Power continuously improves after every storm and as indicated in the IR 25 responses to the 2024 Storm Rider f...

AI summary The text discusses NS Power's response to storm events, noting improvements made after past storms and the implementation of cost improvement activities for Level 3 and 4 storms. However, the response to a Level 3 storm in 2024 was less than expected due to the actual weather conditions experienced.

1 Request IR-62: p. p. 87
NON-CONFIDENTIAL 1 Request IR-62: 2 3 Reference: Exhibit N-6(ii), Corporate Human Resources 4 5 (a) The reason given for the increase from 2024 compliance restated to forecast 2026 6 expense in labour under Human Resources is due to staffi...

AI summary The request seeks clarification on significant increases in Human Resources and consulting expenses from 2024 to 2026, including staffing and salary escalations, consulting costs, safety programs, and talent management. The response is pending, and the ScottMadden Report is referenced for context on NS Power's human resources costs relative to peers.

anticipated that such work will continue throughout the test period. p. p. 87
anticipated that such work will continue throughout the test period. 1 Request IR-64: 2 3 Reference: Exhibit N-3 Direct Evidence, Exhibit N-6(ii), Information Technology 4 5 Pages 8-9 in the direct evidence notes that the test year forecas...

AI summary The text discusses a request for clarification regarding a significant increase in information technology consulting expenses, particularly related to cybersecurity and tools like Tableau and PowerBI. It also asks whether the increase is ongoing or one-time and requests matter numbers related to these tools.

(d) No capital investment related to Tableau or PowerBI has exceeded the materiality threshold of $1 million that would require a capital application to the NSEB. p. p. 87
(d) No capital investment related to Tableau or PowerBI has exceeded the materiality threshold of $1 million that would require a capital application to the NSEB. 1 Request IR-65: 2 3 Reference: Exhibit N-6(ii), Tufts Cove and Combustion T...

AI summary The document discusses the increase in materials expense forecast for NS Power, attributing it to higher-than-expected inflation and increased unit utilization at Tufts Cove. The response explains that actual inflation rates exceeded initial forecasts, and maintenance requirements due to sustained unit utilization and completed projects have increased material costs.

(c) NS Power expects to fully access smart meter data from customer meters in early 2026. p. p. 87
(c) NS Power expects to fully access smart meter data from customer meters in early 2026. 1 (d) NS Power smart meters measure and maintain the total energy consumed at a meter, much 15 adjustment, as it assumed full staffing levels for all...

AI summary NS Power expects to fully access smart meter data in early 2026. The document also discusses vacancy adjustments and benchmarking studies that highlight NS Power's performance relative to its peers, noting that its costs are generally below or in line with industry norms.

Observations p. p. 174
Observations - NSPI A&G OM&G as Percent of Retail Revenue is in the first quartile of the peer group - NSPI A&G OM&G as Percent of Retail Revenue decreased 0.4 percentage points from 2019 to 2023 while the peer median A&G OM&G as Percent o...

AI summary The document compares NSPI's A&G OM&G costs as a percentage of retail revenue with peer group data from 2019 to 2023, noting trends in cost changes and revenue growth. NSPI's costs increased at a lower rate than the peer median, and its retail revenue grew faster than the peer median.

Observations p. p. 195
Observations - NSPI Cost per invoice in 2023 is significantly lower (or better) than the industry group median - NSPI Cost per Invoice increased 8% over the period 2019 to 2023 (1.9% CAGR) - NSPI's costs to generate and deliver invoices in...

AI summary NSPI's cost per invoice in 2023 is lower than the industry median, but increased by 8% from 2019 to 2023. The total annual cost to generate and deliver invoices increased by 13% over the same period, despite a 4% increase in the number of invoices.

Observations p. p. 198
Observations - NSPI Total HR Cost per FTE in 2023 is 21% higher than the industry group median - NSPI Total HR Cost per FTE increased 21% over the period 2019 to 2023 (6.3% CAGR), with most of the increase occurring in 2023 - NSPI Total HR...

AI summary NSPI's total HR cost per FTE in 2023 is 21% higher than the industry median. Between 2019 and 2023, NSPI's total HR cost per FTE increased by 21% (6.3% CAGR), with most of the increase occurring in 2023. Total HR cost increased by 41% (9.0% CAGR) during the same period, while the number of employees increased by 11% (2.5% CAGR).

Factors Contributing to Performance p. p. 198
Factors Contributing to Performance NSPI has seen increased HR costs due to the need to attract, retain and train specialized employees. There is a general shortage of skilled trade employees in Canada resulting in the need for increased i...

AI summary NSPI has experienced increased HR costs due to a shortage of skilled trade employees in Canada, necessitating higher investment in recruitment and internal training programs. This is reflected in the HR Function Key Benchmarks - Utility 2024 from APQC.

Summary Observations p. pp. 0-14
Summary Observations - NSPI has seen increased HR costs due to the need to attract, retain and train specialized employees. There is a general shortage of skilled trade employees in Canada resulting in the need for increased investment to...

AI summary NSPI is facing increased HR costs due to a shortage of skilled trade employees in Canada, necessitating higher investment in recruitment and internal training. While NSPI's employee-to-HR-FTE ratio is favorable, the time to fill positions is longer than the industry median, though showing an improving trend.

Observations p. p. 11
Observations - NSPI Total IT Cost per Business Entity FTE in 2023 is 24% lower than the industry group median for 2024 - NSPI Total IT Cost per Business Entity FTE increased 18% between 2019 and 2023 - NSPI Total IT Cost increased 40% nomi...

AI summary The document provides comparative data on NSPI's IT costs per FTE relative to industry benchmarks, highlighting a 24% lower cost in 2023 compared to the median, despite an 18% increase between 2019 and 2023. IT costs have grown 40% over five years, outpacing the 18% growth in FTEs.

1 Request IR-78: p. p. 20
1 Request IR-78: 2 3 Reference: Exhibit N-3, GRA Direct Evidence 4 5 On page 35, NS Power states "Information Technology costs per business entity full-time 6 equivalent employee is significantly below the utility industry median". 7 8 (a)...

AI summary NS Power states that its Information Technology costs per business entity full-time equivalent employee are significantly below the utility industry median, but its IT costs per $1000 of revenue are above the industry median. The response also mentions the implementation of a cybersecurity roadmap and references other exhibits for further details.

($ million) p. p. 20
($ million) Account 2024 2025 Forecast Consulting 0.5 1.5 NON-CONFIDENTIAL

AI summary The document includes a table showing consulting expenses for 2024 and the 2025 forecast, with values of $0.5 million and $1.5 million respectively. The section is labeled as 'NON-CONFIDENTIAL'.

REDACTED p. p. 56
REDACTED 1 Request IR-96: 2 3 Reference: Exhibit N-3 GRA Direct Evidence, 9.3 Maritime Link Capital Applications 4 5 On page 60, NS Power addresses the Board's directive from the 2023-2024 GRA Decision 6 regarding inclusion of four Maritim...

AI summary The document discusses a request for detailed breakdowns of benefits and costs related to the Maritime Link transmission projects, including depreciation, financing costs, and energy purchases. It also asks for estimated costs of energy generation without using Maritime Link energy and capital costs for the projects.

Section 820 p. p. 56
4 At no point were NS Power's tie-lines constrained; therefore, there was no incremental 5 cost of redispatch to allow flow through. 7 (d) Please refer to GRA Application, Appendix 9A, 9B, 9C, and 9D for original capital costs. 8 Please re...

AI summary The text states that NS Power's tie-lines were not constrained, eliminating incremental redispatch costs. It also directs readers to appendices in the GRA Application for original capital costs and a table for Remaining Net Book Values as of January 1, 2026.

CI C0041651 Tufts Cove Heavy Fuel Oil Tank 4 Refurbishment (NSEB M10984) NSPI Responses to NSEB Information Requests p. p. 107
CI C0041651 Tufts Cove Heavy Fuel Oil Tank 4 Refurbishment (NSEB M10984) NSPI Responses to NSEB Information Requests 1 Request IR-119 2 3 Reference: Exhibit N-8, Appendix 10A, CEA exhibits EO, CEA Summary -1 4 5 In CEA Summary -1, why do t...

AI summary The document addresses information requests (IR-119 and IR-120) related to NSPI's responses to NSEB inquiries regarding return on equity (ROE) calculations and macroeconomic data. The response explains that ROE for NS Power is based on a three-model average for the North American Electric proxy group and provides data on GDP and CPI from various sources.

Section 933 p. p. 107
1 Request IR-127: 2 - 3 Please provide a table, similar to the table in Exhibit N-9, Appendix 12A(3), on p. 242 of 310, - 4 comparing allocated costs under the existing and proposed cost of service methodologies. 5 6 Response IR-127: 7

AI summary The request asks for a table comparing allocated costs under existing and proposed cost of service methodologies, similar to one in Exhibit N-9. A response is indicated but not provided in the text.

1 2027 COSS p. p. 107
1 2027 COSS Change on Total Allocated Costs in $ Million Revenue to Expense Ratio 10 thoroughly considered in this jurisdiction when NS Power completes its next cost-of-service 11 study, which is expected no later than December 31, 2025" [...

AI summary The text discusses a request related to the 2027 Cost of Service Study (COSS) by Nova Scotia Power (NSP), including a query about the impact of reclassifying distribution classifications from the minimum system methodology to 100% demand classification, and a request for a revised Figure 14-1. Nova Scotia Power has not completed the computation for this alternative scenario and refers to Attachment 1 for further details.

6 charge would be recovered through an increase in the energy charge. p. p. 151
6 charge would be recovered through an increase in the energy charge. Request IR-134: 11 The interruptible credit is $160 kW/year and the most recently calculated levelized avoided costs 12 of capacity is $140 kW/year. Differences between...

AI summary The document discusses the interruptible credit for the Large Industrial Interruptible Rider (LIIR), explaining that the credit is based on the avoided cost of a combustion turbine. The credit reflects the deferral of future generation capacity costs and is designed to mimic the operation of a peaking facility. The updated credit values are supported by SR-01 Attachment 4.

(a) Please refer to the following figure; only OATT Schedules 5 and 6 are impacted by this change. p. p. 159
(a) Please refer to the following figure; only OATT Schedules 5 and 6 are impacted by this change. OATT Revenue (as proposed in 2026-2027 GRA) OATT Revenue (fully cost based) Dollar Impact 24 the-line rate class. The Domestic class share i...

AI summary The document discusses changes in the classification of generation and transmission costs under the proposed Cost of Service Study (COSS) methodology, which shifts more costs to demand classification, affecting the responsibility distribution among rate classes. This impacts OATT Schedules 5 and 6, altering the Domestic class share and reducing the shares of Large Industrial and Large General rate classes in the 3CP metric.

1 associated expenditures in its revenue requirement. As provided in part (c), NS Power's p. p. 174
M12273 – NS Power, Cybersecurity Incident Monthly Update 2, page 3. October 1, 2025. 1 associated expenditures in its revenue requirement. As provided in part (c), NS Power's 24 the jurisdictional review in its 2017 AMI Application. NS Pow...

AI summary NS Power is updating the Board on its cybersecurity incident monthly report and addressing concerns related to its 2017 AMI Application, including opt-out fees and cost allocation for AMI meters. The discussion includes economic comparisons and flexible customer options.

Year Count of Bills with "High" Billing Exception p. p. 179
NON-CONFIDENTIAL Year Count of Bills with "High" Billing Exception 26 The proposed opt-out fee is based on a forward-looking cost model, as described in Section 1 of 27 Appendix 13A and provided as PR-02 Attachment 1, which incorporates op...

AI summary The proposed opt-out fee is based on a forward-looking cost model that accounts for fixed labour costs, changes in the opt-out customer base, and non-linear cost reductions. Key factors include maintaining a minimum number of meter readers, administrative overhead, and the impact of fewer opt-out customers on per-customer costs.

NON-CONFIDENTIAL p. pp. 179-187
NON-CONFIDENTIAL 1 o Travel time estimates based on the actual location of opt-out customers and 2 organized by meter route; 3 o Forecast workload volumes based on the actual numbers of opt-out 4 customers to date and bi-annual read rates;...

AI summary The document compares actual 2024 costs and projected 2026 costs for opt-out meter service, highlighting a 'doubling effect' in cost-per-read that is explained by fixed and variable cost components not scaling linearly. Per-customer costs remain stable, indicating no actual doubling occurs.

1 Request IR-151: p. p. 187
This POLE ATTACHMENT RATE SETTLEMENT AGREEMENT , made effective as of the 1st day of September, 2025 (this "Settlement Agreement") 1 Request IR-151: 2 3 (a) NS Power forecast the number of customers that would have opted out as of December...

AI summary NS Power forecasts customer opt-out numbers for AMI and adjusts the meter reading frequency for opt-out customers, which is expected to increase calls to the Customer Care Center, leading to higher expenses.

N-29NSPI (Synapse) RIR 1-11 - Redacted 18 passages
2026-2027 General Rate Application (M12451) NSPI Responses to Synapse Information Requests p. pp. 0-39
2026-2027 General Rate Application (M12451) NSPI Responses to Synapse Information Requests 1 Request IR-1: 2 3 Refer to GRA Appendix 12A, Cost of Service Study Process, section 3.1. How does the 4 Company define customer-related costs? 5 6...

AI summary The document outlines how NSPI defines customer-related costs in its 2026-2027 General Rate Application, referencing its Cost of Service Methodology and aligning with the NARUC Electric Utility Cost Allocation Manual. Customer-related costs include retail O&M and distribution infrastructure costs that vary with the number of customers served.

CONFIDENTIAL (Attachments Only) p. p. 0
CONFIDENTIAL (Attachments Only) 1 Request IR-2: 2 3 Refer to GRA Appendix 12A, Cost of Service Study Process, section 5.1. 4 5 (a) Describe and provide all sensitivity analysis and modelling the Company has 6 conducted to conclude that "in...

AI summary The document outlines a request for detailed sensitivity analysis and modeling related to the cost of service study (COSS) conducted by the Company. It also asks for explanations of how increased granularity may affect COSS and requests examples of inconsistencies that could arise. Additionally, the request seeks information on how generation assets are classified under the proposed SLF approach and the current classification method.

5 Response IR-2: p. p. 0
5 Response IR-2: 6 7 (a) The statement is meant to highlight that increased granularity does not always result in a 8 more precise or effective COSS. COS studies are meant to provide fairness and 9 transparency and provide a basis for rate...

AI summary The response discusses the use of a generic approach to treat generation costs in the COSS, emphasizing simplicity, existing precedents, and rate stability. It highlights concerns about increased granularity leading to complexity, rate volatility, and potential fluctuations in assigned generation costs due to changes in the generation mix.

CONFIDENTIAL (Attachment Only) p. p. 9
CONFIDENTIAL (Attachment Only) 1 (i) Is NSPI's transmission system designed to function over extended hours of high 2 loading? Explain why or why not. 3 4 (j) In live, unlocked Excel file format with all links and formula intact, please pr...

AI summary NSPI is asked whether its transmission system can function under high loading and to provide an alternate version of the COSS using SLF to classify transmission costs. NSPI explains that the transmission system will transition from radial to network-based, affecting cost classification.

CONFIDENTIAL (Attachment Only) p. p. 12
CONFIDENTIAL (Attachment Only) 1 (h) NS Power's transmission system was built to enable the flow of energy from coal fired 2 thermal generation units in Cape Breton and Trenton to the provinces load centre in 3 Halifax. Nova Scotia had an...

AI summary This text discusses the historical development and design principles of NS Power's transmission system in Nova Scotia, emphasizing its construction for energy flow from coal-fired generation units and the operational limits of transmission assets. It also references confidential cost of service studies and attachments for further details.

Various Municipal Utilities p. p. 12
Various Municipal Utilities Mr. Dennis Kehoe, P. Eng. 2026-2027 GRA Synapse IR-4 Attachment 1 Page 3 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) - 3 - INTRODUCTION Nova Scotia Power Inc., hereinafter referred to as "NSPI" or the "Com...

AI summary This document outlines a regulatory proceeding involving Nova Scotia Power Inc. (NSPI) related to cost of service and rate design, including a Board Order from 1992 and subsequent directives from the NSUARB-P-865 Order in 1994. The Board directed NSPI to use its cost of service methodology for study purposes and to investigate cost-reducing rate designs aligned with NARUC guidelines.

2026-2027 GRA Synapse IR-4 Attachment 1 Page 4 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 12
2026-2027 GRA Synapse IR-4 Attachment 1 Page 4 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) - 4 - following four primary areas relating to Cost of Service Methodology to be addressed during the generic hearing: - 1. Methods of attribu...

AI summary The document outlines four primary areas of Cost of Service Methodology to be addressed during a generic hearing, including cost attribution, cost-relating methods, seasonal cost allocation, and customer class cost allocation. The Company proposed using the Equivalent Peaker method, unbundling transmission costs, modifying the Cost of Service Study presentation, and allocating fuel costs monthly.

Classification p. p. 12
Classification In his testimony and accompanying exhibits, Mr. Dominie presented six cost of service alternatives with the following classification methodologies: - 1. Existing Method. This method assumes 100% Classification to demand. - 2...

AI summary Mr. Dominie presented six cost of service classification alternatives, each with different methodologies for allocating steam and hydro rate-base assets between demand and energy classifications, impacting transmission cost allocation.

2026-2027 GRA Synapse IR-4 Attachment 1 Page 7 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 12
2026-2027 GRA Synapse IR-4 Attachment 1 Page 7 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) - 7 - Mr. Brockman testified that the Equivalent Peaker Method of classification for generation plant is a more fair and rational approach. Re...

AI summary The testimony discusses the classification of generation and transmission costs, with differing opinions on the Equivalent Peaker Method and the Average and Excess method. Concerns are raised about NSPI's proposed reclassification of costs to energy, arguing it may be unreasonable and inconsistent with industry norms.

2026-2027 GRA Synapse IR-4 Attachment 1 Page 9 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 12
2026-2027 GRA Synapse IR-4 Attachment 1 Page 9 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) - 9 - of generation fixed costs. There are two approaches that could be used, those relating to system planning and those relating to system o...

AI summary The discussion focuses on methods for allocating generation and transmission costs, with emphasis on the peaker proxy method and long-run marginal costs. Mr. Baker suggests classifying transmission costs similarly to generation, while Dr. Chamberlin advocates for using long-run marginal costs to determine demand/energy splits and highlights the limitations of the peaker method.

Allocation p. p. 12
Allocation Mr. Dominie filed six studies as exhibits on the following methods of allocation: - 1. Existing Method. Average and Excess methodology is used to assign rate base assets and fixed cost responsibility to customer classes. Allocat...

AI summary Mr. Dominie submitted six studies on methods for allocating rate base assets and fixed costs to customer classes, including the Existing Method, Average and Excess under the New Presentation Format, and the Equivalent Peaker (3CP) method, which allocates demand-related assets based on customer ratios.

2026-2027 GRA Synapse IR-4 Attachment 1 Page 10 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 12
2026-2027 GRA Synapse IR-4 Attachment 1 Page 10 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) - 10- class demand to total system demand, utilizing the class average for the three winter month coincident peaks. - 4. Average and Excess O...

AI summary The document discusses methods for allocating peak demand and energy-related costs to customer classes based on coincident and non-coincident peaks, as well as energy generation requirements. It highlights the use of three winter month coincident peaks for a fairer allocation of excess demand costs.

2026-2027 GRA Synapse IR-4 Attachment 1 Page 11 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 12
2026-2027 GRA Synapse IR-4 Attachment 1 Page 11 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) - 11- classes since statistics are readily available for both energy and the number of customers. Energy cost allocations are based on energy...

AI summary The document discusses methods for allocating demand-related costs to customer classes, including the coincident peak, non-coincident peak, average and excess, and probabilistic methods. Dr. Sarikas and Ms. Chown provide input on acceptable approaches, with Dr. Sarikas supporting energy-based allocations provided they do not overstate or double count costs.

2026-2027 GRA Synapse IR-4 Attachment 1 Page 12 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 12
2026-2027 GRA Synapse IR-4 Attachment 1 Page 12 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) - 12 - Mr. Kehoe testified that allocation procedures become incredibly complex when one tries to influence how customers will use electricit...

AI summary The document discusses various allocation methodologies for electricity costs, with experts like Mr. Baker and Dr. Chamberlin discussing the merits of different approaches such as non-coincident demands, coincident peak, average and excess, and marginal costs. Mr. Dominie also suggests allocating fuel costs on a monthly basis to better reflect seasonal usage variations.

2026-2027 GRA Synapse IR-4 Attachment 1 Page 14 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 12
his six examples. Prior to presenting the Board's findings with regard to the subject of classification, a discussion of the concepts is necessary in order to establish a framework for the decision. The cost of service study includes the c...

AI summary The document discusses the classification of costs in a cost of service study, distinguishing between fixed and variable costs, and how they are allocated to demand, energy, and customer categories. The allocation methods vary, and different techniques have been used, with testimony focusing on these classifications during hearings.

2026-2027 GRA Synapse IR-4 Attachment 1 Page 19 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 12
2026-2027 GRA Synapse IR-4 Attachment 1 Page 19 of 24 REDACTED (CONFIDENTIAL INFORMATION REMOVED) - 19- rate base. Plant may be built for either capacity or energy reasons, or both. Motivational causation represents the planning aspect tha...

AI summary The document discusses the classification of rate-base assets, focusing on the distinction between cost causation related to demand and energy. It acknowledges energy-related cost causation in certain generation planning scenarios, such as hydro and nuclear plants, and critiques the equivalent peaker method for being inconsistent due to comparing historical and current costs.

Seasonality p. p. 12
Seasonality The Board is of the opinion that seasonal cost variations must be defined within the context of the approved cost of service methodology. 2026-2027 GRA Synapse IR-4 Attachment 1 Page 23 of 24 REDACTED (CONFIDENTIAL INFORMATION...

AI summary The Board emphasizes the need to define seasonal cost variations within the approved cost of service methodology. It outlines how fixed costs should be classified based on energy and demand factors, and directs the use of a '3 Coincident Peak' method for allocating fixed costs. The Board also requests detailed information on long run marginal costs and load factors in future studies.

IT IS HEREBY ORDERED THAT: p. p. 52
IT IS HEREBY ORDERED THAT: - 1. Capital Item #47124 for NS Power's AMI Project in the amount of $133,228,952 is approved, subject to the findings in the Board's Decision. - 2. NS Power is directed to provide a detailed accounting of the us...

AI summary The Board approves NS Power's AMI Project capital item, directs detailed accounting of contingency funds, and mandates timelines for filing tariffs and compliance reports. It also requires NS Power to consider low-income and small business concerns, ensure health and safety information is available, and address opt-out procedures.

N-30NSPI (Renewall) RIR 1 to 13 1 passage
1 Request IR-1: p. p. 14
NON-CONFIDENTIAL 1 Request IR-1: 6 (f) Please list and compare the components of the "updated charges" for distribution and 7 retail services offered under the DT and DTR for the past five years. Is the update in 8 charges solely due to ch...

AI summary The request asks for a comparison of updated charges for distribution and retail services over the past five years, the significance of red and blue fonts in the DTR, and a table showing proposed rate impacts. The response references NS Power's engagement with Renewall and provides a link to the in-effect Distribution Tariff.

N-31NSPI (ECC) IR 1 to 41 - REFILED 3 passages
9.1 Capital Process p. pp. 4-5
9.1 Capital Process In support of its organizational and Asset Management objectives, NS Power utilizes the Asset Management Mechanism to inform and make risk-based decisions. This matrix, aligned with the matrices in NS Power's CEJC, prov...

AI summary NS Power uses a risk-based Asset Management Mechanism to evaluate and prioritize capital decisions. While the mechanism provides a starting point for risk evaluation, it emphasizes the need for SME input due to potential data limitations. Risk considerations include safety, environmental impact, and business sustainability, with final decisions balancing risk, affordability, and operational needs.

Section 1624 p. p. 7
- 2 the associated test period is an appropriate method to include these costs in revenue requirement. - 3 While this methodology is also subject to forecast variance, forecasting the required GRA - 4 amortization during preparation of the...

AI summary The text discusses the appropriateness of including costs in the revenue requirement through an associated test period, noting that forecasting GRA amortization during the test period budget is likely to have lower variance compared to forecasting subsequent GRA charges.

- 11 financing cost to the benefit of customers. p. p. 7
- 11 financing cost to the benefit of customers. 1 Request IR-40: 2 3 Considering NS Power's proposal to securitize the costs of assets that were previously 4 proposed to be added to the DDA, please fully explain the continued purpose of t...

AI summary NS Power explains that securitization of DDA assets will reduce the DDA balance but not eliminate future costs, including sustaining capital and decommissioning. It also notes that the Cost of Removal account has been tracked since 2016, though full reconciliation is hindered by a cyber incident.

N-32Evidence - Cleary 3 passages
3.4 CAPM Estimates p. p. 4
3.66%, while its U.S. 30-year forecast it uses of 4.14% is below the November 20, 2025 actual yield of 4.73%, so the difference in terms of the Canadian yields in this particular situation is minimal. Concentric proceeds to estimate an app...

AI summary The text discusses the use of the Capital Asset Pricing Model (CAPM) to estimate appropriate beta values for utilities, noting that U.S. utilities are not suitable comparators for Canadian ones due to higher business risk. Adjusted betas for utilities are found to be upwardly biased, leading to higher CAPM estimates compared to raw betas.

Preamble p. p. 68
The table above shows that the November 20 th yield on NS Power bonds maturing in March 2042 was 4.94%, which is 0.15% above the 4.79% average for the other five utilities. This is reflective of the fact that the other five utility yields...

AI summary The text compares the yield on NS Power bonds to other Canadian utilities, noting a 0.15% higher yield due to lower credit ratings and shorter maturities. It calculates a cost of equity (Ke) estimate of 7.44% using a 2.5% risk premium, and 7.94% after adding flotation costs. This is compared to other estimates like CAPM (6.84%) and DCF (7.86%), suggesting the 7.94% estimate may be high for low-risk utilities.

Discounted Cash Flow (DCF) Growth Estimates p. pp. 95-97
tating (footnote omitted) (emphases added) : 438. With respect to the single-stage DCF model estimates presented by Dr. Villadsen, Mr. Coyne and Mr. Hevert, the growth rates used by each of these Source: Easton, Peter D., and Gregory A. So...

AI summary The text discusses the growth rates used in single-stage DCF models by Dr. Villadsen, Mr. Coyne, and Mr. Hevert, highlighting that 'buy-side' analysts provide more realistic and lower growth estimates compared to others. These estimates are proprietary and not publicly shared.

N-33Evidence - Doane Grant Thorton - Redacted 19 passages
1.1 Purpose and scope p. p. 2
1.1 Purpose and scope - Doane Grant Thornton LLP ("we", "us", "our", or "Doane Grant Thornton") has been engaged by the Nova Scotia - Energy Board (the "Board" or "NSEB") for the review of Nova Scotia Power Incorporated ("NS Power", "NSPI"...

AI summary Doane Grant Thornton LLP was engaged by the Nova Scotia Energy Board to review Nova Scotia Power Incorporated's 2026-2027 General Rate Application. The review includes components such as revenue requirement, operating costs, amortization, tax expenses, interest, and rate base, excluding certain items like fuel and demand side management.

4 Figure 1 – Summary of findings, observations and conclusions p. p. 2
4 Figure 1 – Summary of findings, observations and conclusions # Report section Findings, observations, and conclusions 6. Interest and other expenses We have reviewed interest and other expenses included in NS Power's 2024 Actuals and 202...

AI summary The report reviews interest and other expenses for NS Power's 2024 Actuals and 2025 Budget, as well as 2024C, 2026 Forecast, and 2027 Forecast. Interest and other expenses are forecast to be approximately $118.5 million in 2026 and $130.0 million in 2027, driven largely by interest expenses, partially offset by AFUDC, FAM, and DSM rider deferral interest.

Section 22 p. p. 7
NS Power has noted in the Application that an increase of $22.1 million (6.2%) from 2027 to 2028 is a result of the consensus approach to this GRA. [7](#page-7-5) Per NS Power, the parties to the GRA Settlement Agreement agreed to the oper...

AI summary NS Power has indicated that a $22.1 million (6.2%) increase from 2027 to 2028 is due to the consensus approach to the GRA. The parties to the GRA Settlement Agreement agreed to the operation and maintenance expense amounts, subject to reductions outlined in Appendix B of the Settlement Agreement. A $9 million OM&G reduction in 2026F and 2027F was allocated to specific areas.

Preamble p. pp. 7-53
- Corporate $2 million.[8](#page-8-0),[9](#page-8-1) - 4 We note that without the $9 million reduction in operation and maintenance expense amounts per the GRA - 5 Settlement Agreement, OM&G costs would be approximately $360.8 million in 2...

AI summary The text discusses the impact of the GRA Settlement Agreement on OM&G costs, noting a potential 3.6% increase in 2028F without the agreement, compared to a 6.2% increase as currently projected. It references operating expenses from compliance filings and forecasts for 2024, 2025, 2026, and 2027.

3.2 Procedures p. p. 7
3.2 Procedures - Our procedures with respect to OM&G expenses included the following: - Performed analytical procedures with respect to financial information in the Company's records and investigated variances between 2024 Actual, 2025 Bud...

AI summary The procedures outlined involve analyzing OM&G expenses by comparing financial data across different years and forecasts, reviewing forecasting methodologies, and benchmarking against industry peers to ensure reasonableness and accuracy.

3.3 Assumptions and methodology p. pp. 7-8
3.3 Assumptions and methodology - Please see below the assumptions used to forecast labour costs for both union and non-union employees for the 2026 to 2027 forecast years: - Union labour - Union labour is forecast to escalate at a rate of...

AI summary The document outlines assumptions for forecasting labour costs for union and non-union employees from 2026 to 2027. Union labour costs are expected to increase at x.xx% and x.xx% for 2026 and 2027, based on a ratified collective agreement and compensation research. Non-union labour is projected to follow the same rate, with a note that wages will rise in early 2026 due to a union wage increase effective April 1, 2025.

Non-labour p. p. 8
Non-labour • Non-labour inflation rates were sourced from the Conference Board of Canada's consumer price index 7 ("CPI") forecast, dated October 28, 2024, consistent with NS Power's previous GRA. The Conference Board of Canada's inflation...

AI summary Non-labour inflation rates are based on the Conference Board of Canada's CPI forecast, with rates of 2.2%, 2.0%, and 2.0% for 2025, 2026, and 2027, respectively, aligning with NS Power's previous GRA.

Forecasting uncertainties p. pp. 8-9
Forecasting uncertainties The Company noted that it uses the following methods to decrease the uncertainty associated with multi-year forecasting of operating costs: - Bottom-up forecasting involves budgeting labour and other large account...

AI summary NSP employs bottom-up forecasting, multiple levels of review, labour reconciliation, and variance assessment to improve the accuracy of multi-year operating cost forecasts and reduce uncertainties.

2 3.4.1 Operating expenses – key variances at group level (2024A, 2025B, 2026F)[16](#page-10-0) 3 p. p. 10
This is an increase of approximately $1.5 million. There is an approximate $x.x million increase from 2024A to 2025B. The Company has noted that this is primarily due to inflationary pressures and the expectation that roles were vacant for...

AI summary The document discusses increases in operating expenses, primarily due to inflation and filling vacant roles, as well as specific group-level variances, including a slight decrease in Environmental Services & Policy and a significant increase in Energy Delivery OM&G.

1 2 total $1.3 million. NS Power also noted that there are ash hauling contracts for each of the thermal plants that include transportation, as well as maintenan p. pp. 16-17
1 2 total $1.3 million. NS Power also noted that there are ash hauling contracts for each of the thermal plants that include transportation, as well as maintenance of the ash management sites.52 3 4 5 o The above decrease is partially offs...

AI summary The text outlines various cost changes related to energy production and management, including increased labour and consulting costs, offset by decreased contract and insurance costs. It also references specific documents and appendices related to the regulatory process.

31 Figure 11 – Power Production operating cost detail - 2024CR, 2026-2027F p. pp. 27-28
31 Figure 11 – Power Production operating cost detail - 2024CR, 2026-2027F ($000s) 2024 Compliance (restated) 2026F 2026F vs 2024C % change 2027F 2027F vs 2026F % change 2027F vs 2024C % change Head Office 3,561 2,798 (762) -21% 2,877 79 3...

AI summary Power Production operating costs are projected to increase by approximately $14.2 million from 2024CR to 2027F, primarily driven by increases in Thermal Plants and Tufts Cove and Combustion Turbines. The table provides a detailed breakdown of cost changes across various categories from 2024 to 2027.

Section 122 p. pp. 33-34
pany noted that the reliability team is comprised of 59 employees, who support both the operational and capital portfolio and this labour is forecast between capital investment and operating expenses in the 2026-2027 GRA forecasts.[127](#p...

AI summary The text discusses increases in operating costs for the reliability team, consulting costs for standards development, and storm-related expenses in the 2026-2027 forecasts. These include labor, contract, and inflation-related costs. References to various documents and appendices are included.

Section 125 p. pp. 34-35
Customer Experience and Innovation is forecast to increase approximately $10.1 million from 2024CR to 2027F. The primary drivers of the increase are increases in Customer Service and Grid Modernization and Customer Integration. The detaile...

AI summary Customer Experience and Innovation is projected to increase by approximately $10.1 million from 2024CR to 2027F, driven by increases in Customer Service and Grid Modernization and Customer Integration. Key factors include increased labour costs due to customer growth, increased net bad debt expense, and increased contract costs related to new software systems.

Section 128 p. p. 35
- The above increases are partially offset by decreased other goods and services costs due to the $2 million reduction in 2026 per the GRA Settlement Agreement. - The above increases are also offset by reduction through write-offs, which a...

AI summary The text discusses cost changes related to customer experience and innovation, including reductions from the GRA Settlement Agreement and write-offs impacting bad debt expense. Increased labour costs and grid modernization efforts are also highlighted, particularly the addition of support teams and data analytics resources.

Section 130 p. pp. 35-36
anaging data quality, and supporting new end users. N-23 (C) – NSPI Responses to GT Information Requests – IR-50. N-6 – 2026-2027 GRA Direct Evidence Appendix 7C page 54. N-27 (C) – NSPI Responses to NSEB Information Requests – IR-69. - 1...

AI summary The text discusses increased operating costs related to customer experience, smart meter operations, and innovation initiatives, including increased labour costs and salary escalations from 2024 to 2027.

13 Figure 14 – Corporate Adjustments operating cost detail - 2024CR, 2026-2027F p. p. 36
13 Figure 14 – Corporate Adjustments operating cost detail - 2024CR, 2026-2027F 2024 2026F 2027F 2027F Compliance 2026F vs % 2027F vs % vs % ($000s) (restated) 2024C change 2026F change 2024C change Corporate Adjustments (46,435) (63,897)...

AI summary Figure 14 presents detailed operating cost information for Corporate Adjustments in 2024, 2026F, and 2027F. The data shows significant changes in costs over time, with a 38% increase from 2024 to 2026F and a 47% increase from 2024 to 2027F.

Figure 15 – Pension Expense (Recovery) components - 2024C vs 2026-2027F[145](#page-40-1) 17 p. p. 37
Figure 15 – Pension Expense (Recovery) components - 2024C vs 2026-2027F[145](#page-40-1) 17 ($ millions) Telus Health Line item 2024C 2026F 2027F Payroll matching for DC and DB plans OM&G (labour expense) 11.7 16.2 16.5 Current service cos...

AI summary The table presents a comparison of pension expense recovery components for 2024C versus 2026-2027F, highlighting differences in payroll matching, service costs, and adjustments. The total estimated pension expense is projected to decrease from 2024 to 2027.

Figure 20 – Interest and other expenses[187](#page-50-2) 14 p. p. 48
Figure 20 – Interest and other expenses[187](#page-50-2) 14 ($ millions) 2026F 2027F Interest on long-term debt 153.8 155.2 Interest on short-term borrowings 10.2 11.6 Other financing charges & adjustments 1.4 1.8 Amortization of deferred...

AI summary The table presents forecasted interest and other expenses for 2026 and 2027, including interest on long-term and short-term debt, financing charges, and amortization. Total regulated financing costs are expected to increase slightly from 167.7 to 171.3 million dollars.

28 6.4 Conclusion p. pp. 48-50
28 6.4 Conclusion We have reviewed interest and other expenses included in NS Power's 2024 Actuals and 2025 Budget, as well as 2024C, 2026 Forecast, and 2027 Forecast. Our procedures included recalculating interest and other expenses based...

AI summary The review of NS Power's financial forecasts for interest and other expenses indicates that these are expected to increase from 2026 to 2027, primarily due to deferred interest on assets to be securitized in 2026. The review found no unreasonable aspects in the 2026 and 2027 forecasts.

N-34-(viii)Exhibit DMM-8 - From NP - 2022-2023 General Rate Application - Volume 3 - 2021-05-27 6 passages
SUMMARY OF BOOK SALVAGE p. p. 24
SUMMARY OF BOOK SALVAGE REGULAR COST OF REMOVAL REUSE G R O S S S A L V A G E FINAL NET SALVAGE YEAR RETIREMENTS AMOUNT PCT AMOUNT PCT AMOUNT PCT AMOUNT PCT THREE-YEAR MOVING AVERAGES 12-14 963,607 822,944 85 0 0 822,944 - 85 - 13-15 989,4...

AI summary The summary of book salvage provides a table detailing the cost of removal and salvage amounts for various years, with a focus on three-year and five-year moving averages. The data includes retirements, amounts, and percentages related to salvage activities.

ACCOUNTS 361.10, 361.11, 361.14 AND 361.30 - OVERHEAD CONDUCTOR - COPPER p. p. 24
ACCOUNTS 361.10, 361.11, 361.14 AND 361.30 - OVERHEAD CONDUCTOR - COPPER COST OF G R O S S S A L V A G E NET 2004 837,695 479,745 57 0 0 479,745 - 57 - 2005 1,254,719 503,125 40 0 32,119 3 471,006 - 38 - 2006 1,401,597 734,953 52 0 5,042 0...

AI summary The text presents a table detailing the costs and salvage values for overhead conductor - copper accounts from 2004 to 2018, including totals and three-year moving averages. It provides a breakdown of costs, gross salvage, and net values for each year.

TRANSMISSION - ALL ACCOUNTS p. p. 96
TRANSMISSION - ALL ACCOUNTS COST OF G R O S S S A L V A G E NET YEAR REGULAR RETIREMENTS REMOVAL AMOUNT PCT REUSE AMOUNT PCT FINAL AMOUNT PCT SALVAGE AMOUNT PCT 2017 1,973,487 678,636 34 0 0 678,636- 34- 2018 432,568 1,005,428 232 0 0 1,00...

AI summary The table presents data on transmission account retirements, removal amounts, reuse amounts, and salvage values from 2017 to 2011, highlighting trends in cost and salvage percentages over time. The data includes three-year moving averages and notes adjustments to COR amounts in 2005-2010 to align with new 2011 company guidelines.

ACCOUNTS 361.12, 361.13 AND 361.15 - OVERHEAD CONDUCTOR - ALUMINUM p. pp. 98-99
ACCOUNTS 361.12, 361.13 AND 361.15 - OVERHEAD CONDUCTOR - ALUMINUM REGULAR COST OF REMOVAL REUSE G R O S S S A L V A G E FINAL NET SALVAGE YEAR RETIREMENTS AMOUNT PCT AMOUNT PCT AMOUNT PCT AMOUNT PCT 1976 114,352 32,493 28 0 10,057 9 22,43...

AI summary The document presents a table showing the retirement, cost of removal, reuse, gross salvage, and net salvage values for overhead conductor - aluminum from 1976 to 2016. The data includes amounts and percentages for each year, with adjustments made to COR amounts from 2005-2010 to align with new 2011 company guidelines.

ACCOUNTS 362.10 AND 362.20 - DISTRIBUTION - POLES AND FIXTURES - WOOD p. p. 102
ACCOUNTS 362.10 AND 362.20 - DISTRIBUTION - POLES AND FIXTURES - WOOD COST OF G R O S S S A L V A G E NET REGULAR REMOVAL REUSE FINAL SALVAGE YEAR RETIREMENTS AMOUNT PCT AMOUNT PCT AMOUNT PCT AMOUNT PCT THREE-YEAR MOVING AVERAGES 15-17 947...

AI summary The text provides data on the cost of retirements and salvage values for wood poles and fixtures in distribution accounts 362.10 and 362.20. It includes three-year and five-year moving averages for the years 2015-2017 and 2014-2018, respectively, with percentages indicating the proportion of costs related to removal and salvage.

CALCULATED ANNUAL AND ACCRUED DEPRECIATION RELATED TO ORIGINAL COST AS OF DECEMBER 31, 2019 p. p. 4
CALCULATED ANNUAL AND ACCRUED DEPRECIATION RELATED TO ORIGINAL COST AS OF DECEMBER 31, 2019 YEAR (1) ORIGINAL COST (2) RATE (3) ANNUAL ACCRUAL AMOUNT (4) FACTOR (5) ACCRUED DEPREC AMOUNT (6) PORT AUX BASQUES INTERIM SURVIVOR CURVE IOWA 80-...

AI summary The document presents calculated annual and accrued depreciation related to original costs as of December 31, 2019. It includes depreciation details for various years and categories, such as 'PORT AUX BASQUES INTERIM SURVIVOR CURVE IOWA 80-L0' and 'ACCOUNT 372.00 - GENERAL - OFFICE EQUIPMENT'.

N-37Evidence - Synapse - Redacted 16 passages
21 Q. Please describe your conclusions and recommendations.
21 Q. Please describe your conclusions and recommendations. 20 II. SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS 19 Company") cost of service study. 18 A. The purpose of this evidence is to address Nova Scotia Power's ("NS Power" or "the 17 Q...

AI summary The testimony addresses the misclassification of distribution system costs by NS Power using the minimum size method, which inflates residential customer costs. It recommends adopting the Basic Customer Method instead, aligning costs more accurately with customer numbers and directly related expenses like metering and billing.

III. COST OF SERVICE STUDY
III. COST OF SERVICE STUDY - Overview of Cost of Service Studies - Q. What is the purpose of a COSS? - A. A COSS is used to assign the utility's revenue requirement to each customer or rate class in proportion to the costs imposed on the s...

AI summary The purpose of a Cost of Service Study (COSS) is to allocate the utility's revenue requirement to customer classes based on the costs they impose on the system. The study involves functionalizing costs, classifying them based on cost drivers, and allocating them fairly. Concerns were raised about NS Power's use of a flawed minimum system methodology for classifying distribution costs.

NS Power indicates that its COSS framework is "based on established principles of cost causation." See N-9: 2026- 2027 GRA Appendix 12A - Cost of Service Study Process – Redacted p.10.
NS Power indicates that its COSS framework is "based on established principles of cost causation." See N-9: 2026- 2027 GRA Appendix 12A - Cost of Service Study Process – Redacted p.10. 1 A. Yes. The Company considers primary and secondary...

AI summary NS Power states that its Cost of Service Study (COSS) framework is based on established principles of cost causation. The document also mentions that the company considers both demand- and customer-related components for underground lines.

5 Q. What is the minimum system study?
5 Q. What is the minimum system study? - 6 A. The minimlllll system study is a cost analysis that estimates what the cost of the - 7 distribution system would be if all poles, fixtures, and wires were sized to minirnlllll - 8 specification...

AI summary The minimum system study is a cost analysis that estimates the distribution system cost if all components were sized to minimal specifications. NS Power classifies this cost as customer-related, while the remaining cost is considered demand-related. Concerns include misalignment with customer cost definitions, inflation of customer-related costs, and unsound basis for cost causation.

1 nlllllber of customers will allocate the majority of these costs to the residential class. In
1 nlllllber of customers will allocate the majority of these costs to the residential class. In 2 contrast, the COSS assigns demand-related costs based on the relative class non 3 coincident peak demand (NCP), to which the residential clas...

AI summary The discussion focuses on cost allocation methods for poles and wires, comparing customer-based and demand-based approaches. It critiques the minimum system method for being unreliable and recommends the Basic Customer Method as a more intuitive and data-based alternative for distributing costs.

Section 14
includes only costs that are directly related to the number of customers on the system. Specifically, the Basic Customer Method generally classifies only costs associated with services, meters, meter reading, and billing as customer-relate...

AI summary The Basic Customer Method is used to classify costs directly related to the number of customers, such as services, meters, and billing. Multiple U.S. regulatory bodies have rejected the minimum system method, emphasizing that primary and secondary distribution costs should be classified as demand-related. Examples include commissions in Rhode Island, Maryland, Arkansas, and Illinois.

Section 16
nsas Public Service Commission). Lazar, J. et al., Electric Cost Allocation for a New Era: A Manual. Montpelier, VT: Regulatory Assistance Project (2020) (Hereafter: "RAP Electric Manual"). at 145 - classification and allocation methodolog...

AI summary The text discusses the classification and allocation methodologies for distribution system costs, referencing the rejection of minimum size studies by the Michigan Public Service Commission and suggesting a hybrid classification method if the Basic Customer Method is not approved. It emphasizes aligning cost methodologies with system cost drivers and differentiating between primary and secondary distribution costs.

3 Alaska Admin. Code § 48.540.
3 Alaska Admin. Code § 48.540. 1 A. Yes. As recognized by the Staff of the Ontario Energy Board (OEB), "A Minimum 2 System has a certain load carrying capability which can be viewed as being demand 3 related. As a result, the customer-rela...

AI summary The text discusses the need for adjusting cost allocations based on the load carrying capacity of the minimum system to ensure fair distribution of demand-related costs among customers. It references the Ontario Energy Board's recommendation to account for peak load carrying capability (PLCC) and provides an example of how such adjustments are calculated.

Section 19
Ontario Energy Board. Cost Allocation: Board Directions on Cost Allocation Methodology for Electricity Distributors. September 2006. At 53-55. https://www.oeb.ca/documents/cases/EB-2005- 0317/report directions 290906.pdf. Ontario Energy Bo...

AI summary The text references cost allocation methodologies used by other utilities, such as Northern States Power Company (Xcel Energy) and National Grid, in their rate cases. Xcel Energy has assumed a load carrying capacity of 1.5 kW per customer, while National Grid proposed allocating no demand-related costs to residential and small commercial customers.

Section 21
of Northern States Power Company for Authority to Increase Rates for Electric Service in Minnesota. November 1, 2024. Exhibit___(CJB-1), Schedule 8 p.9 (PDF p.126). Provided as Attachment LFE-83-1. - Redacted Evidence of Caroline Palmer Th...

AI summary The discussion addresses the minimum system study and its implications, including the allocation of demand-related costs and the recommendation for a load carrying capacity adjustment. Industry literature is referenced to support the view that minimum-size distribution equipment can be a demand-related cost. The impact of using the basic customer distribution classification on the Cost of Service Study (COSS) is also raised.

Section 22
W per customer, applying the credit to the NCP demands used for determining minimum system - Q. What is the COSS impact of using the basic customer distribution classification? demand allocators. Testimony of the Electric Rate Design Panel...

AI summary The use of the basic customer distribution classification impacts the Cost of Service Study (COSS) output, affecting revenue to cost (R/C) ratios for different customer classes. The domestic R/C ratio increases, while the general demand R/C ratio decreases, indicating higher costs to serve higher-usage classes.

8 Table 1. 2026 R/C Ratio Under Different Classification Methods
8 Table 1. 2026 R/C Ratio Under Different Classification Methods Rate Class Company's COSS Basic Customer Method Domestic 0.90 0.92 Small General 0.96 0.99 General 1.03 0.96 Large General 1.09 1.05 Small Industrial 1.03 0.97 Medium Industr...

AI summary Table 1 presents the 2026 R/C Ratio under different classification methods for various rate classes, comparing the company's COSS with the Basic Customer Method. The data shows variations in ratios across domestic, industrial, and municipal rate classes.

10 Q. Do the results of the Basic Customer COSS impact the Company's determination of 11 revenue responsibilities by rate class?
10 Q. Do the results of the Basic Customer COSS impact the Company's determination of 11 revenue responsibilities by rate class? A. Yes. Table 2 compares required class revenue increases based on the Company's COSS 34 12 and based on the b...

AI summary The results of the Basic Customer Cost of Service Study (COSS) impact the Company's determination of revenue responsibilities by rate class. The Company's revenue allocation methodology shows different required revenue increases for the domestic class based on the COSS versus the basic-customer COSS.

Section 27
y explains that both NS Power and numerous customer representatives 14 support the outcomes requested in this GRA and that the parties do not require and are 36 2026-2027 GRA SR-01 Att 08. - Redacted Evidence of Caroline Palmer not seeking...

AI summary The witness explains that the consensus among parties in the GRA does not alleviate concerns about the Company's COSS methods, particularly the use of the minimum system methodology. They argue that acceptance of negotiated terms may not reflect endorsement of individual provisions and that concerns raised during the stakeholder process were not fully addressed.

Section 28
ogies, particularly the use of the minimum system method for classifying distribution system costs, I recognize of the agreed-upon methods for future cases. N-3: Direct Evidence DE-03 – DE-04 p.8-9. that the parties have overcome their own...

AI summary The text discusses the use of the minimum system method for classifying distribution system costs, noting that while parties have settled on current methods, certain COSS methodologies should be revisited in the next GRA. Specific methods, such as NS Power's new approaches to classifying generation and transmission costs, are highlighted as requiring future Board determination.

N-9: 2026-2027 GRA Appendix 12A - Cost of Service Study Process – Redacted p.15-16.
N-9: 2026-2027 GRA Appendix 12A - Cost of Service Study Process – Redacted p.15-16. 1 • The potential for NS Power to use more granular and temporal allocators. Further 2 data analysis and discussion would likely be worthwhile in consideri...

AI summary The text discusses the potential for Nova Scotia Power to use more granular and temporal allocators in cost allocation, moving away from simplistic methods. It suggests that further data analysis and discussion would be beneficial in this regard.

N-44STATE OF CONNECTICUT PUBLIC UTILITIES REGULATORY AUTHORITY 49 passages
E. POSITION OF THE PARTIES AND INTERVENORS p. pp. 5-6
E. POSITION OF THE PARTIES AND INTERVENORS The Company seeks an increase in revenues of $105.4 million. Application, p. 2. UI attributes the revenue deficiency to four categories of factors driving its request, including, alleged methodolo...

AI summary The Company is requesting a $105.4 million revenue increase, citing issues with previous rate-setting methodologies, unrecovered costs, inflationary pressures, and environmental remediation expenses. The Company later reduced its request to $63.7 million, claiming it is sufficient to maintain service quality in Connecticut.

iv. Pole Attachment Make-Ready Capital Costs p. p. 21
ion principles and imposes on electric customers costs, most of which are related to third-party broadband deployment, that result from the Company's financial mismanagement of its make-ready process. Accordingly, in the Company's next rat...

AI summary The document discusses the financial mismanagement of the make-ready process by the Company, leading to costs imposed on electric customers. The Authority outlines conditions for including make-ready costs in rate base, including cost apportionment, cost causation, and reasonable documentation. However, it allows specific amounts of pre- and post-2024 net plant costs in the rate base for this proceeding.

iv. Expense Adjustments p. pp. 32-35
iv. Expense Adjustments Finally, the Authority adjusts the CWC to account for the disallowance of certain operating expenses, which results in a lower CWC requirement. [29](#page-35-3) A summary of the CWC impact of the Authority's expense...

AI summary The Authority adjusts the Cost of Service Working Capital (CWC) to account for the disallowance of certain operating expenses, resulting in a lower CWC requirement. A summary of this impact is provided in Table 10.

Expense Category PURA Expense Adjustment ($) CWC Adjustment Factor CWC Adjustment ($) p. p. 35
Expense Category PURA Expense Adjustment ($) CWC Adjustment Factor CWC Adjustment ($) Compensation (301,500) 0.1113 (33,557) Employee Benefits (227,626) 0.1468 (33,415) Income Tax (4,917,242) 0.0640 (314,703) Other O&M (14,971,618) 0.0261...

AI summary Table 10 presents the impact of expense adjustments on the Cost of Service Working Capital (CWC) for various expense categories, including compensation, employee benefits, income tax, and others. The table shows both the PURA expense adjustment and the corresponding CWC adjustment in dollars.

3. Material and Supplies p. p. 35
3. Material and Supplies The Company proposes the inclusion of $6,897,644 for distribution Materials and Supplies (M&S) in the working capital balance for Rate Year 2025/2026. The Company recorded distribution M&S of $7,940,791 in the Test...

AI summary The Company proposed a distribution Materials and Supplies (M&S) amount of $6,897,644 for the working capital balance in Rate Year 2025/2026, but the Authority approved a lower amount of $4,994,529 after adjustments.

Preamble p. pp. 35-218
The Company applied a 65.14% distribution allocation factor to its proposed $10,589,194 13-month average for total M&S, which includes distribution and transmission. Interrog. Resp. RRU-060, Att. 1. The 65.14% distribution allocation is de...

AI summary The Company applied a 65.14% distribution allocation factor to its proposed M&S balance, but the Authority found the significant increase in M&S from 2019 to 2023 unexplained. As a result, the Authority used the average M&S balance over the period, adjusted by the distribution factor, to determine the allowed distribution M&S balance.

F. REGULATORY ASSETS p. pp. 37-38
F. REGULATORY ASSETS The Company proposes including regulatory assets with an average Rate Year balance of $55,863,788 in rate base. The Authority instead allows costs relating to the regulatory assets contained in [Table 14, below,](#page...

AI summary The Company proposes including regulatory assets with an average Rate Year balance of $55,863,788 in rate base. However, the Authority allows these costs to be treated as O&M expenses and amortized outside of rate base, as outlined in Section VI.

G. PREPAID EXPENSES p. pp. 38-39
G. PREPAID EXPENSES UI proposed and included in rate base a Rate Year average balance of $4,485,635 for prepaid expenses or prepayments, which includes $2,581,320 for prepaid software maintenance costs as well as costs related to the PURA...

AI summary The document discusses the inclusion of prepaid expenses in the rate base, including $4,485,635 proposed by UI, with specific amounts for software maintenance and the PURA Assessment. The Authority disallows part of these expenses, approving $2,804,764 and rejecting $1,680,871, citing overlaps and uncollectible expenses.

Section 110 p. p. 40
The Company's proposed balances for software maintenance costs included in the calculation of the proposed average prepaid expense are overstated. UI failed to correctly reflect the 2024 pro forma adjustment and employed incorrect 2024 and...

AI summary The Company's proposed balances for software maintenance costs are overstated due to incorrect 2024 pro forma adjustments and improper 2025 amortization expenses. UI used incorrect figures, leading to an overstatement of prepaid costs included in the rate base.

A. SUMMARY p. p. 49
A. SUMMARY The Authority approves a weighted average cost of capital as depicted in the tables below.

AI summary The Authority approves a weighted average cost of capital as depicted in the tables below.

Table 24: Weighted Average Cost of Capital Without ROE Reductions p. p. 49
Table 24: Weighted Average Cost of Capital Without ROE Reductions Capital Source Allocation Cost Weighted Cost Common Equity 51% 9.450% 4.820% Long-Term Debt 49% 4.739% 2.322% Total Capitalization 100% 7.142% Table 25: Weighted Average Cos...

AI summary The tables present the weighted average cost of capital for a company, comparing scenarios with and without ROE reductions. Common equity and long-term debt are the capital sources considered, with slight differences in costs and weighted costs between the two scenarios.

D. COST OF DEBT p. pp. 54-57
D. COST OF DEBT The Authority approves a cost of 4.739% for the Company's long-term debt. The Authority determines the cost of long-term debt by calculating a weighted average of the Company's existing long-term debt issuances as well as a...

AI summary The Authority approves a 4.739% cost for the Company's long-term debt, calculated as a weighted average of existing and measurable long-term debt expenses. Table 28 summarizes the details.

7. Current Economic Conditions p. pp. 76-78
7. Current Economic Conditions The Authority reviewed changes to certain financial indicators comparing current yields to those present at the 22-08-08 Decision. The purpose of this static analysis is to provide a barometer to establish th...

AI summary The Authority analyzed changes in financial indicators, comparing current yields to those from the 22-08-08 Decision to assess the direction of Return on Equity (ROE). Economic indicators like interest rates influence the allowed ROE, and the Authority uses its Cost of Equity (COE) models to determine the final allowed ROE.

2. Inflation Adjustment p. pp. 101-102
2. Inflation Adjustment The Company proposes to escalate a number of Test Year expenses using an inflation adjustment factor of 8.15%, resulting in a pro forma expense of $4,505,562. Late Filed Ex. 1, Att. 2, Sch. WP C-3.0, p. 2; Sch. WP C...

AI summary The Company proposes using an 8.15% inflation adjustment factor to escalate Test Year expenses, but the Authority rejects this approach as imprecise and not sufficiently measurable. The Authority emphasizes that specific cost escalations must be justified with evidence and that generic inflation adjustments are not acceptable unless supported by reasonable and measurable data. However, in some cases, the Authority allows limited adjustments despite the Company's lack of supporting evidence.

b. Active and Final Collections p. p. 102
b. Active and Final Collections The Company proposes a $237,748 expense for the Rate Year for Active and Final Collections, which is the Company's $226,457 Test Year amount, a ($6,620) pro forma adjustment to the Test Year amount attribute...

AI summary The Company proposed a $237,748 expense for Active and Final Collections, including a $17,911 inflation adjustment. The Authority rejected the inflation adjustment as not reasonable or measurable and approved $219,837 instead, citing insufficient evidence to support the adjustment and noting that collections expenses are influenced by variables like commissions and future RFPs for legal collections.

d. Customer Experience and Communications p. p. 104
d. Customer Experience and Communications The Company proposes $142,466 in customer experience and communications expenses for the Rate Year, which is the Company's $101,278 Test Year amount, an $8,251 generic inflation adjustment, and a $...

AI summary The Company requests $142,466 for customer experience and communications expenses in the Rate Year, citing a Test Year amount and adjustments. The Authority approves $134,215, noting that expenses are tied to the volume of customer communications rather than a standard inflation factor.

g. Credit Card Fees p. p. 107
ting in a projected $195,998 ACH fee expense for the Rate Year and $3,091,257 in Rate Year credit, debit, and ACH fees, of which $1,892,932 is allocated to distribution rates. [60](#page-108-0) Id. The Authority finds that utilizing a proj...

AI summary The Authority approves a 39% increase in credit and debit card usage for 2025 based on actual data but rejects the Company's revised 30% projection for 2026 due to lack of supporting data and methodology. The Authority believes the 30% estimate is likely overstated and opts for a more moderate projection based on experience and initial trends.

i. Customer Programs p. pp. 108-109
i. Customer Programs The Company proposes $157,409 in customer programs expenses for the Rate Year, which is the Company's $139,572 Test Year expenses plus a $5,978 pro forma adjustment and an $11,859 inflation adjustment. Sch. WP C-3.03....

AI summary The Company proposes $157,409 in customer programs expenses for the Rate Year, including adjustments for inflation and pro forma costs. The Authority allows recovery of $145,550, citing the lack of reasonable justification for the proposed inflation adjustment. The Company disputes the Authority's finding of double counting but provides no supporting evidence.

Table 40: Allowed Outside Services– Electric Distribution System Expenses p. p. 110
Table 40: Allowed Outside Services– Electric Distribution System Expenses Expense Proposed ($) Adjustment ($) Approved ($) Electric Operations 3,115,402 (57,347) 3,058,055 Joint Use - Third-Party Pole Att. 2,612,117 (2,612,117) - Services...

AI summary Table 40 outlines the approved outside services for electric distribution system expenses, including adjustments made to various categories such as Electric Operations, Joint Use, and Services Performed by Affiliates. The total approved amount is significantly lower than the proposed amount due to adjustments.

d. Services Performed by Affiliates p. p. 115
ncurred in the Rate Year. Accordingly, the Authority disallows $245,312 in reported expenses related to affiliates support of rate case efforts, both during pre-filing activities and during hearings. Additionally, the Authority finds that...

AI summary The Authority disallows $245,312 in expenses related to affiliate support during the rate case process. It also rejects an $63,145 inflation adjustment, citing the lack of a measurable connection to inflation and the fluctuation of expenses based on time charged by affiliate employees.

Table 41: Approved Outside Professional Services Expenses p. p. 116
Table 41: Approved Outside Professional Services Expenses Requested Adjustment Approved Expense ($) ($) ($) Professional Services 230,117 (17,336) 212,781 Operational SmartGrids 5,101,497 (345,734) 4,755,763 Process & Technology 1,165,553...

AI summary Table 41 outlines approved outside professional services expenses, including adjustments and final approved amounts for various categories such as professional services, audit, legal, and others. The Company removed electric vehicle program expenses from the professional services line items as they are recovered outside of base rates and are not expected to recur in the Rate Year.

i. UPZ Expense p. pp. 124-125
n complied with direction given in the 22-08-08 Decision. Motion No. 5 Ruling, Oct. 27, 2023, Docket No. 23-08-09, Annual Electric Distribution Company and Reliability and Resiliency Framework Review. The Company utilizes two contractors t...

AI summary The Company has complied with a previous regulatory decision and is using two contractors for its UPZ Plan work. It has exceeded planned UPZ miles trimmed goals and met or improved cost per mile targets for both single-phase and three-phase circuits, supporting the reasonableness of its UPZ Plan projections.

ii. RM Expense p. p. 125
ii. RM Expense The Company proposes $1,463,325 in RM expenses for the Rate Year, which is the Company's $1,353,082 Test Year expense plus a $128,243 inflation adjustment. The Authority allows $1,477,599 in RM expense for the Rate Year. The...

AI summary The Company requested $1,463,325 for RM expenses, including an inflation adjustment, but the Authority approved $1,477,599. The Authority found that using a generic inflation factor was inappropriate due to existing contract escalation factors. The RM program addresses hazardous conditions and customer requests and is separate from the UPZ program.

b. Minor Storms p. p. 127
b. Minor Storms The Company proposes a Rate Year cost of $2,919,689 in minor storm expenses. Late Filed Ex. 1, Att. 2 Supp., Sch. WP C-3.07a. UI derived this value by taking a threeyear average of its minor storm costs over the period of 2...

AI summary The Company proposed a minor storm expense of $2,919,689 for the Rate Year, calculated as a three-year average of 2021–2023 costs. However, the Authority disallowed a significant portion of external labor expenses due to insufficient documentation in 2022 and 2023, resulting in a reduction of $556,166 and $575,931 respectively.

Year Proposed77 ($) Adjustment ($) Adjusted ($) p. p. 127
Year Proposed77 ($) Adjustment ($) Adjusted ($) 2021 2,631,028 - 2,631,028 2022 1,480,076 (556,166) 923,910 2023 4,650,516 (575,931) 4,074,585 Average 2,920,540 2,543,174 Table 44: Minor Storm Costs, 2021–2023

AI summary Table 44 presents the minor storm costs from 2021 to 2023, showing proposed amounts, adjustments, and adjusted totals for each year. The data indicates a significant reduction in adjusted costs in 2022 and 2023 compared to the proposed amounts.

a. Summary p. p. 137
a. Summary The Company proposes that it recover $49,832,152 in total compensation expense for the Rate Year, a $13,473,028 increase from the Test Year. Late Filed Ex. 1, Att. 2 Supp., Sch. C-3.15. The Authority permits the Company to recov...

AI summary The Company requests recovery of increased compensation expenses for the Rate Year, including adjustments for payroll and employee volunteer time. The Authority approves a slightly lower amount, adjusting for these factors. The calculation involves FTEs, salary escalations, and adjustments for vacancies and capitalization.

iv. Vacancy Rate p. p. 140
iv. Vacancy Rate The vacancy rate offset recognizes that, at any given time, some positions are not filled due to the timing of the hiring and replacement process. Here the Company applied a 7.03% vacancy rate, which the Company based on i...

AI summary The vacancy rate offset accounts for unfilled positions due to hiring and replacement timing. The Company used a 7.03% vacancy rate based on its five-year average from 2019-2023, which the Authority found reasonable.

Section 359 p. p. 142
The Company proposes combined medical, dental, and vision expenses of $8,550,076 in the Rate Year. Late Filed Ex. 1, Att. 2 Supp., Sch. WP C-3.16. Based on the evidence presented, the Authority finds sufficient evidence of $8,491,169 in th...

AI summary The Company proposed combined medical, dental, and vision expenses of $8,550,076 for the Rate Year. The Authority found sufficient evidence for $8,491,169 and allowed the Company to recover that amount in its revenue requirement.

v. Student Loan Payments p. p. 147
v. Student Loan Payments The Company proposes a $15,976 student loan payment expense for the Rate Year, which is the Company's $14,772 Test Year expense plus a $1,204 inflation adjustment. Late Filed Ex. 1, Att. 2 Supp., Sch. WP C-3.16g. T...

AI summary The Company seeks to recover $15,976 in student loan payments for the Rate Year, but the Authority disallows the expense, stating the Company has not demonstrated that the program is reasonable or necessary for safe and reliable service or maintaining staffing levels.

Category Proposed ($) Adjustment ($) Approved ($) p. p. 151
Category Proposed ($) Adjustment ($) Approved ($) Mass Formula Adjustment - (643,415) (643,415) Severance 45,818 (45,818) - Annual Bonus 2,390,106 (920,191) 1,469,915 Loyalty Gifts 223,227 (223,227) - Culture & Sport 1,282 (1,282) - Reloca...

AI summary The table presents the proposed, adjustment, and approved figures for various categories under Corporate Service Charges Expense, including items like Mass Formula Adjustment, Severance, Annual Bonus, and others, with total figures showing a reduction in approved amounts compared to proposed figures.

k. Inflation p. pp. 155-157
k. Inflation The Authority concludes that the Company failed to demonstrate that its proposed $676,198 inflation adjustment for corporate services expenses represents a reasonable known and measurable adjustment and, accordingly, does not...

AI summary The Authority rejects the Company's proposed $676,198 inflation adjustment for corporate services expenses, citing a lack of reasonable, measurable justification and noting a decline in corporate service charges over the past five years.

g. Travel Expense p. p. 166
g. Travel Expense The Company proposes $1,015,051 in Rate Year travel expenses, which is the Company's $961,573 Test Year expense, a ($22,993) pro forma adjustment to remove entertainment costs barred from recovery under General Statutes §...

AI summary The Company proposed $1,015,051 in travel expenses for the Rate Year, but the Authority rejected the $76,471 generic inflation adjustment due to insufficient evidence of its reasonableness. The approved amount is $938,580, after removing entertainment costs and adjusting for inflation.

h. Other O&M p. p. 166
h. Other O&M The Company proposes that it recover $4,750,911 in the Rate Year for "other O&M" expenses, which is the Company's $5,731,385 Test Year expense, a ($1,338,395) pro forma adjustment, plus a $357,921 inflation adjustment. Late Fi...

AI summary The Company proposed to recover $4,750,911 in 'other O&M' expenses for the Rate Year, but the Authority determined that the Company did not justify using a generic inflation factor. The Authority approved a reduced recovery of $4,392,990, reflecting a pro forma adjustment.

(b) Hurricane Henri Deferred Expenses p. p. 173
(b) Hurricane Henri Deferred Expenses For Hurricane Henri, which occurred on August 21, 2021, the Company reported expenses and accounting accruals relating to external vendors totaling $97,782 in total storm costs. Interrog. Resp. EOE-164...

AI summary The document discusses the review of travel time expenses reported by ASPLUNDH Tree Expert, LLC for Hurricane Henri. The Authority found discrepancies between the travel time charged and Google Map estimates, leading to a reduction in approved costs from $231,190 to $231,190 after adjustment, resulting in a new total of $87,190 for Hurricane Henri.

(d) Flooding Event Deferred Expenses p. pp. 176-178
l given that affiliate costs, including security costs, are allocated to the Company within its revenue requirements. EOE Brief, p. 49. The Authority largely agrees with EOE. While the Company already 103 The Company submitted a total of $...

AI summary The Authority reviewed and adjusted the expenses submitted by the Company related to the Flooding Event. It disallowed certain amounts due to unsupported claims and incremental costs not being fully justified, allowing only specific incremental expenses such as those from Allied Universal. The total allowed incremental expenses for the event are reported as $1,218,441.

(f) Hurricane Lee Lean-In Event Deferred Expenses p. pp. 178-179
(f) Hurricane Lee Lean-In Event Deferred Expenses The Company requests $1,082,185 in storm expenses for the Hurricane Lee – Lean-In event. Interrog. Resp. EOE-249 Supp. 2, Att. 2, p. 3 ("Incremental Costs" column"). The Company reports exp...

AI summary The Company requested $1,082,185 in storm expenses related to Hurricane Lee – Lean-In, but the Authority disallowed $11,531 in overtime costs and 25% of fleet fuel costs due to errors and unreasonable expenses. The revised allowed amount is $1,070,162.

Category Amount ($) p. p. 180
Category Amount ($) Storm Accrual, August 2022 – October 2025 (4,333,333) Carrying Costs, August 2022 – October 2025 (374,911) Total Storm Accrual Balance, October 31, 2025 (4,708,244) See Interrog. Resp. EOE-249 Supp. 2, Att. 2, p. 2.

AI summary The text presents financial figures related to storm accrual and carrying costs from August 2022 to October 2025, with a total storm accrual balance of $4,708,244 as of October 31, 2025. A reference is made to an attachment in a regulatory proceeding document.

h. Fee Free Program p. p. 183
h. Fee Free Program The Company proposes to amortize a ($1,852,863) credit related to the difference between its actual credit card transaction fee costs and the amount embedded in distribution rates for such costs as ordered in the 22-08-...

AI summary The Company seeks to amortize a $1,852,863 credit related to credit card transaction fees, as ordered in the 22-08-08 Decision. The Authority adjusted this credit by $308,376 and added a carrying credit of $228,227, resulting in a $2,389,466 deferred credit to be amortized over three years, representing a $796,489 Rate Year credit.

Table 76: Approved Revenue Requirement p. pp. 194-195
Table 76: Approved Revenue Requirement Section Revenue Component Amount ($) IV.A Allowed Rate Base 1,354,956,818 V.A Weighted Average Cost of Capital 7.040% Allowed Cost of Capital 95,388,960 Allowed Expenses: VI.A Operations & Maintenance...

AI summary Table 76 outlines the Approved Revenue Requirement, including the allowed rate base, cost of capital, and various expenses such as operations, depreciation, and taxes. Section VIII introduces the topic of rate design, indicating a focus on how rates are structured.

C. COST-OF-SERVICE STUDY p. pp. 198-199
C. COST-OF-SERVICE STUDY The Company filed an allocated cost-of-service study (ACOSS) based on the historical test year and rate year costs and revenues. Application, Ex. UI-BR-1, p. 12. The Company's proposed ACOSS utilizes the Minimum Sy...

AI summary The Company submitted an allocated cost-of-service study using the Minimum System Study approach, classifying distribution assets into customer- and demand-related costs. The Authority requested alternative models that calculate per-customer load-carrying capacity, leading to adjustments in how demand-related costs are allocated. CIEC supports the use of the MSS approach, while OCC applied a universal load-carrying capacity adjustment based on scenarios from Minnesota and Ontario.

Section 506 p. p. 200
OCC suggests that the Company's original MSS approach was unsound as the basis for determining cost causation and would inflate cost allocations to residential customers. Palmer Prefiled Test., Feb. 13, 2025, p. 9. As an alternative, OCC p...

AI summary OCC criticizes the Company's original MSS approach for inflating residential customer cost allocations and proposes the basic customer method instead. UI defends the MSS approach, citing prior acceptance by the Authority. The Company disputes OCC's recommendation to exclude certain customer classes from demand-related costs and clarifies that AMI infrastructure costs are allocated using the labor allocator.

Section 507 p. p. 200
eters was classified as 100% customer-related, other costs associated with AMI infrastructure were classified using the labor allocator, which has both customer and demand components. Id., pp. 13–14. Although the Authority acknowledges OCC...

AI summary The document discusses the classification of AMI meters as 100% customer-related, acknowledging the OCC's concerns with the MSS approach but finding it acceptable as a proxy for costs unrelated to demand. The Authority supports the Company's classification, consistent with cost causation principles, and notes that primary and secondary distribution infrastructure has both demand- and customer-related components.

Section 508 p. p. 200
secondary distribution plant. The Authority affirms the Company's proposed classification of AMI meters as 100% customer-related, which is consistent with cost causation principles, as argued by CIEC. The MSS approach is a just and reasona...

AI summary The Authority affirms the classification of AMI meters as 100% customer-related. The MSS approach is deemed just and reasonable, but the minimum system's load-carrying capacity should be considered when allocating residual demand-related costs. The Company did not account for this and failed to quantify the equal benefit all customers receive from the minimum system.

Section 509 p. p. 200
, 1328:19. Specifically, each customer should be allocated an equal share of the load-carrying capacity affiliated with the hypothetical minimum system, applied towards the relevant demand allocators. The Ontario Energy Board approved a si...

AI summary The document discusses the allocation of load-carrying capacity in a cost-of-service study, referencing the Ontario Energy Board's use of a 0.4 kW adjustment value per customer. The Office of the Chief Counsel (OCC) incorporated this into a modified ACOSS model, but the Authority recommends using the Company's adjustment values for poles and conductors with modifications.

D. COST ALLOCATION p. pp. 202-203
D. COST ALLOCATION The Company used non-coincident peak (NCP) demand to allocate demandrelated costs from the ACOSS to each customer class, except for costs associated with distribution substations, for which the Company used class-wide co...

AI summary The Company used non-coincident peak (NCP) demand and class-wide coincident demand with system peak (1CP) to allocate demand-related costs, except for distribution substations. The Authority directed the use of alternative allocators using AMI data, but the Company found them similar to NCP and 1CP. To achieve equalized rates of return, the Company adjusted its model, violating the Authority's 125%/75% rule.

Table 82: Demand Allocators p. pp. 203-204
Table 82: Demand Allocators Allocator R GS GST LPT M U Substation 51.87% 12.23% 23.36% 12.55% 0.00% 0.00% NCP for Transformers 0.00% 13.04% 63.53% 22.48% 0.77% 0.19% NCP Primary – Overhead Conductors and Poles 46.56% 11.33% 27.93% 13.77% 0...

AI summary The document presents Table 82, which outlines demand allocators across various categories and provides a summary of the Authority's review of the Company's revenue allocation scheme using the updated ACOSS model from Section VIII.C. The table includes percentages allocated to different service types and infrastructure components.

1. Time of Use Rates p. p. 210
CC and the Company that excluding weekends from peak periods is merited and should be incorporated into the analysis. If available, forecast data should be considered in the selection of peak periods. In evaluating the Company's rate desig...

AI summary The Authority is considering the Company's rate design proposal, emphasizing the need to balance load shifting incentives with rate design principles. The Company's method for allocating demand costs based on substation and feeder peaking periods is deemed insufficient and requires modification.

2. New Rate Recommendation p. pp. 228-230
2. New Rate Recommendation The Authority is satisfied with the Company's analysis regarding the appropriateness of a new small commercial rate. In the Company's previous rate case, the Authority directed the Company to provide a recommenda...

AI summary The Authority is satisfied with the Company's analysis that a new small commercial rate is unnecessary, as the current GS-GST rate threshold adequately addresses the needs of C&I customers. The Company conducted a sensitivity analysis and subclass ACOSS, which showed similar load factors and average costs across C&I customers. The Authority required the Company to provide histograms and load profile analyses to support its recommendations.

A. CONCLUSION p. p. 262
A. CONCLUSION The Authority approves an annual revenue requirement for UI in the amount of $450,789,348 for the rate year commencing November 1, 2025. This represents an increase of $65,924,348 from the Company's currently authorized reven...

AI summary The Authority approves an annual revenue requirement of $450,789,348 for UI, an increase from the current $384,865,000. This includes an allowed return on equity of 9.45%, reduced by 20 basis points to 9.25% due to performance and management issues. The Authority also addresses cost allocation, rate design, revenue adjustment mechanisms, and customer service.

N-45CV of Andrew Blair of Elenchus Research Associates 5 passages
SENIOR CONSULTANT p. p. 0
SENIOR CONSULTANT Andrew Blair has ten years of experience as a research analyst and consultant in electricity and gas utility price regulation. He regularly prepares load forecasts for electricity and natural gas utility cost of service a...

AI summary Andrew Blair is a senior consultant with over ten years of experience in electricity and gas utility price regulation. He specializes in load forecasting, cost allocation, and rate design, having worked with utilities across Canada and provided expert testimony before regulatory boards. He has also contributed to regulatory training programs and previously worked for the Ontario provincial government.

Elenchus Research Associates January 2016 - Present Senior Consultant p. p. 0
Elenchus Research Associates January 2016 - Present Senior Consultant - Prepare load forecasts for electricity and natural gas utilities - Design and prepare cost allocation and rate design models and evidence - Research regulatory filings...

AI summary Elenchus Research Associates has been providing consulting services since January 2016, including load forecasting, cost allocation, rate design, regulatory research, economic feasibility studies, and support for regulatory hearings.

EDUCATION p. p. 0
EDUCATION June 2014 Master of Arts, Economics, Carleton University June Bachelor of Arts, Economics and Financial Management, 2012 Wilfrid Laurier University REGULATORY/LEGAL PROCEEDINGS Before the Ontario Energy Board 2025 • Burlington Hy...

AI summary The document outlines the educational background of Andrew Blair and his involvement in various regulatory/legal proceedings before the Ontario Energy Board, including cost of service applications and rate design support for multiple utility companies.

Section 7 p. p. 0
(Company evidence: load forecast, cost allocation, and rate design) 2020 • Hydro Ottawa, 2021-2026 Custom IR Application (Company evidence: cost allocation and rate design) • Lakeshore Communities, LTC and Phase II Applications for new nat...

AI summary The document lists various utility companies and their applications related to cost of service, load forecasting, cost allocation, and rate design, including evidence submitted by companies such as Hydro Ottawa, Lakeshore Communities, and Burlington Hydro, among others, between 2017 and 2021.

Before the New Brunswick Energy and Utilities Board p. p. 0
Before the New Brunswick Energy and Utilities Board 2024 • New Brunswick Power, 2023-24 & 2024-25 General Rate Application (Evidence: Overview Report on NB Power's Proposed Regulatory Accounts) • New Brunswick Power, 2024 Cost Allocation M...

AI summary The document outlines various regulatory proceedings before the New Brunswick Energy and Utilities Board, including general rate applications and cost allocation methodology reviews by New Brunswick Power, as well as non-hearing processes involving other entities such as EfficiencyOne and Montserrat Utilities Ltd.

N-48Direct testimony of Jacob Pous 9 passages
1 and will not pay for their fair share of costs, since historical customers would have p. p. 49
1 and will not pay for their fair share of costs, since historical customers would have 2 overpaid by paying for future costs with prior period current dollars. 3 4 Q. ARE YOU AWARE OF ANY CASE WHERE FERC HAS APPROVED THE 5 RECOGNITION OF...

AI summary The text discusses the recognition of future inflated costs and the discounting of these costs to present periods, referencing FERC's practices. It also covers the proposed inflation level for decommissioning costs, which is based on a 30-year historical period from the Handy Whitman report.

5 Q. WHAT IS THE BASIS FOR THE COMPANY'S INCLUSION OF A CONTINGENCY? p. p. 49
5 Q. WHAT IS THE BASIS FOR THE COMPANY'S INCLUSION OF A CONTINGENCY? 6 A. The Company's basis for its 25% contingency is to eliminate any financial risk for potential under-recovery of costs that may occur.36 7 Further, the use of a 25% 8...

AI summary The Company includes a 25% contingency in its cost estimates to mitigate financial risks from potential under-recovery of costs and to account for unforeseen future expenses, ensuring the total cost estimate reflects probable costs more accurately.

17 Q. PLEASE SUMMARIZE THE CONCERNS IDENTIFIED IN REVIEW OF THE 18 COMPANY'S PROPOSED PRODUCTION PLANT NET SALVAGE. p. p. 49
17 Q. PLEASE SUMMARIZE THE CONCERNS IDENTIFIED IN REVIEW OF THE 18 COMPANY'S PROPOSED PRODUCTION PLANT NET SALVAGE. 19 A. The Company has commissioned two different entities to perform limited 20 decommissioning cost estimates. These entit...

AI summary The Company's proposed net salvage for its production plant has been questioned due to inadequate decommissioning cost estimates, unjustified contingency and inflation assumptions, and failure to consider alternatives. Past experience shows actual costs were significantly lower than estimated.

14 Q. WHY DID THE COMPANY SIMPLY NOT USE THE SPR ANALYSIS? p. p. 49
14 Q. WHY DID THE COMPANY SIMPLY NOT USE THE SPR ANALYSIS? 15 A. The Company states that Gannett Fleming "considered" the Computed Mortality method to be superior to the SPR approach.49 16 Gannett Fleming's consideration was 17 that an act...

AI summary The company did not use the SPR analysis because Gannett Fleming considered the Computed Mortality method to be superior, citing advantages such as more robust life estimate selection and the avoidance of assumptions about constant property life and retirement dispersion.

23 Q. DO YOU AGREE WITH GANNETT FLEMING'S PRESENTATION? p. p. 49
23 Q. DO YOU AGREE WITH GANNETT FLEMING'S PRESENTATION? 24 A. No, and neither do most utilities who do not utilize Computed Mortality as an 25 acceptable method, but rather rely on SPR analyses when unaged data is all that is 26 available....

AI summary The respondent does not agree with Gannett Fleming's presentation, stating that most utilities do not use Computed Mortality as an acceptable method and instead rely on SPR analyses when unaged data is the only available information.

8 Q. HAS THE COMPANY SPECIFICALLY IDENTIFIED THE UNDERLYING 9 FACTORS, BY ACCOUNT, UPON WHICH IT MADE ITS PROPOSALS? p. p. 49
8 Q. HAS THE COMPANY SPECIFICALLY IDENTIFIED THE UNDERLYING 9 FACTORS, BY ACCOUNT, UPON WHICH IT MADE ITS PROPOSALS? 10 A. No. The Company has made a generalized statement covering the concept of 11 judgment, statistical analyses, Company...

AI summary The company did not specifically identify the underlying factors by account for its proposals. It relied on generalized statements, previous studies, and statistical analyses, with the 2009 Study being the primary basis. The company acknowledged that external information did not significantly alter the survivor curves for the accounts analyzed.

18 Q. DO YOU AGREE WITH THE COMPANY'S PROPOSAL? p. p. 79
18 Q. DO YOU AGREE WITH THE COMPANY'S PROPOSAL? 19 A. No. The Company's proposal reflects a movement from a negative 5% net salvage 20 set forth by Gannett Fleming in its 2006 depreciation study to the current estimate of 21 negative 10%....

AI summary The respondent disagrees with the company's proposal to adjust the net salvage rate from -5% to -10%, citing inconsistencies in the company's reporting of retirements and cost of removal over the years. The respondent highlights unusual activity in 2007, 2008, and 2009, as well as the impact of economies of scale, suggesting that retaining the -5% rate is more appropriate.

22 Q. WHAT IS THE COMPANY'S BASIS FOR ITS PROPOSAL? p. p. 79
22 Q. WHAT IS THE COMPANY'S BASIS FOR ITS PROPOSAL? 23 A. As was the case for the previous accounts, the Company claims it has relied on its 24 analysis of historical data with generally no change due to information external to the statist...

AI summary The company bases its proposal on historical data analysis, asserting that external information has not significantly influenced the results.

UTILITY RATE PROCEEDINGS IN WHICH TESTIMONY HAS BEEN PRESENTED BY JACOB POUS p. p. 79
UTILITY RATE PROCEEDINGS IN WHICH TESTIMONY HAS BEEN PRESENTED BY JACOB POUS ALASKA LLC38339Gain on SaleCentral Power & Light Company6375Depreciation, Rate Base, Cost of ServiceCentral Power & Light Company8439Fuel FactorCentral Power & Li...

AI summary The document outlines various utility rate proceedings in which Jacob Pous has provided testimony, including topics such as depreciation, rate base, cost of service, and rate case expenses, with specific references to entities like Central Power & Light Company and El Paso Electric Company.

N-49Direct evidence of James T Selecky 5 passages
Q DO YOU HAVE ANY COMMENTS REGARDING THE DEVELOPMENT OF THE DECOMMISSIONING COST ESTIMATES? p. p. 0
Q DO YOU HAVE ANY COMMENTS REGARDING THE DEVELOPMENT OF THE DECOMMISSIONING COST ESTIMATES? A Yes. The decommissioning cost estimates are overstated because the estimates place no value on the existing production sites, include a contingen...

AI summary The respondent argues that decommissioning cost estimates are overstated due to not accounting for the value of existing production sites, using an excessive contingency factor, and applying an unnecessarily high escalation rate. These factors increase depreciation rates and ratemaking expenses, and the respondent suggests adjustments to reflect the true value and cost of decommissioning.

Q IN THE MICHIGAN CASE THAT YOU PREVIOUSLY REFERRED TO, DID CE GIVE ANY INDICATION THAT THERE COULD BE SAVINGS IF A GAS COMBINED CYCLE UNIT WAS BUILT AT AN EXISTING SITE? p. p. 0
Q IN THE MICHIGAN CASE THAT YOU PREVIOUSLY REFERRED TO, DID CE GIVE ANY INDICATION THAT THERE COULD BE SAVINGS IF A GAS COMBINED CYCLE UNIT WAS BUILT AT AN EXISTING SITE? A Yes. CE indicated that a gas combined cycle unit built at the exis...

AI summary In the Michigan case, Consumers Energy (CE) indicated that building a gas combined cycle unit at an existing site would save $40 per kW compared to a new site. The savings could offset a significant portion of Nova Scotia Power Incorporated's (NSPI) decommissioning costs, benefiting ratepayers.

Q SHOULD THE CONTINGENCY COST BE EXCLUDED FROM THE DECOMMISSIONING COST ESTIMATES? p. p. 0
Q SHOULD THE CONTINGENCY COST BE EXCLUDED FROM THE DECOMMISSIONING COST ESTIMATES? A Yes. The contingency cost unnecessarily increases the estimated cost to decommission the production plants. The contingency cost does not reflect a real c...

AI summary The contingency cost should be excluded from decommissioning cost estimates as it artificially inflates costs for current ratepayers without reflecting real expenses. The contingency factor is an add-on based on judgment and experience, not a specific cost, and its inclusion may lead to higher depreciation rates if estimates are accurate.

Section 54 p. p. 0
Development and preparation of the contents of Appendix D was a estimation for engineering at a conceptual level. Conceptual work is typically a prerequisite to preliminary engineering. Preliminary engineering is prerequisite to detailed e...

AI summary The text discusses the estimation process for Appendix D, noting that conceptual-level engineering estimates have a 25% contingency. NSPI argues that actual costs may be 25% higher or lower than estimates and that including a 25% contingency may unfairly burden ratepayers. NSPI also explains that increased decommissioning costs are due to more detailed analysis and increased expenses for safety and environmental considerations.

Q HOW MUCH NET SALVAGE EXPENSE WOULD A -2% PRODUCE? p. p. 0
Q HOW MUCH NET SALVAGE EXPENSE WOULD A -2% PRODUCE? A A -2% net salvage ratio would produce an annual net salvage expense of approximately $192,000 per year. As a means of comparison, the net salvage expense that NSPI has incurred for its...

AI summary A -2% net salvage ratio would result in an annual net salvage expense of approximately $192,000. This is compared to NSPI's historical net salvage expense of $23,000 per year on average from 1993 to 2009. The proposed -2% ratio is considered sufficient to compensate NSPI for ongoing retirement activity.

N-51Ontario Energy Board Decision EB-2024-0063 8 passages
Findings p. p. 11
Findings Under Issue 11, the OEB asked about the perspectives of debt and equity investors related to cost of capital parameters and capital structure. There is little debate that the perspectives of debt and equity investors in the utilit...

AI summary The OEB inquired about the perspectives of debt and equity investors on cost of capital parameters and capital structure. Both investor groups are crucial in determining the balance of risk and return, influencing the cost of capital and capital structure of regulated utilities.

Expert Report Proposals p. p. 75
Expert Report Proposals LEI recommended that transaction costs be considered as operating expenses, as this approach is more suitable for the nature of the expense, which may fluctuate from year to year. LEI also noted the irregularity in...

AI summary LEI recommended that transaction costs be classified as operating expenses due to their fluctuating nature, while Concentric, Nexus, and Dr. Cleary argued that these costs should be recovered in rates through the embedded cost of long-term debt, as per the OEB's current practice. They also raised concerns about potential non-compliance with IFRS if transaction costs are treated as operating expenses.

Submissions p. p. 85
Submissions OEB staff agreed with LEI and Concentric that the OEB should commit to reviewing the cost of capital policy every five years. OEB staff submitted that this issue is about balance and weighing the costs of performing an update o...

AI summary The document discusses the frequency of cost of capital policy reviews by the OEB, with various stakeholders proposing different intervals, ranging from three to ten years. There is a consensus on conducting reviews every five years, but some entities suggest more frequent or less frequent intervals based on their analysis and market considerations.

Findings p. p. 85
Findings The term of the new Cost of Capital Framework is five years. On that basis, the next review is expected to conclude in 2030, with the depth and breadth expected to be similar to the current exercise. Most parties agreed with this...

AI summary The new Cost of Capital Framework has a five-year term, with reviews expected to conclude in 2030. Most parties supported this term, though some suggested a three-year review due to energy transition issues. The OEB will monitor market conditions and has other tools like DVAs and z-factors for cost recovery. The OEB may initiate reviews sooner if there are significant market changes.

Submissions p. pp. 90-99
Submissions OEB staff and a number of ratepayer groups agreed with LEI and Dr. Cleary that consistent with the OEB's existing policy, the OEB should continue to implement changes in the cost of capital parameters and capital structure upon...

AI summary The OEB staff and ratepayer groups recommend aligning cost of capital changes with rebasing, while the CCC and SEC caution against mid-term adjustments in Price Cap IRM terms. The OEA supports implementing changes in the next rate year, and the OEB established variance accounts for utilities rebasing in 2025.

Expert Report Proposals p. p. 96
Expert Report Proposals For CWIP, LEI recommended (and Dr. Cleary agreed) continuing the current approach of basing the prescribed interest rate on the FTSE Canada Mid Term Bond Index All Corporate yield for all construction projects, rega...

AI summary LEI recommended continuing the current approach of using the FTSE Canada Mid Term Bond Index All Corporate yield for CWIP, while Concentric disagreed, suggesting the use of WACC to better reflect the full financing cost, especially for long-term projects. Concentric also noted that the current method may understate costs and put Ontario utilities at a disadvantage compared to peers.

4 COST AWARDS p. pp. 105-108
4 COST AWARDS The following parties (collectively the Eligible Participants) applied for and were granted cost award eligibility: - Association of Major Power Consumers in Ontario (AMPCO) - Association of Power Producers of Ontario (APPrO)...

AI summary The Office of the Energy Board (OEB) granted cost award eligibility to various participants and outlined procedures for cost recovery from rate-regulated companies. The OEB will conduct a full review of all cost claims and allow for objections and replies. Cost claims are to be filed according to the OEB's Practice Direction on Cost Awards.

A. General Issues p. p. 116
A. General Issues - 1. Should the approach to setting cost of capital parameters and capital structure differ depending on: - a) The source of the capital (i.e., whether a utility finances its business through the capital markets or throug...

AI summary The document outlines three key questions regarding the approach to setting cost of capital parameters and capital structure for utilities. It explores whether the approach should vary based on capital sources and ownership types, what risk factors should be considered, and how regulatory mechanisms influence utility risk.

N-52Energy Institute WP 329R 4 passages
3 Data p. pp. 11-13
3 Data To answer our research questions, we use a database of all significant resolved utility rate cases from 1980 to 2022 for every electricity and natural gas utility (Regulatory Research Associates [2024)](#page-76-0).[2](#page-12-0) W...

AI summary The analysis uses a database of resolved utility rate cases from 1980 to 2022, merging data from EIA and FERC. It highlights a discrepancy between proposed and approved return on equity (ROE) by regulators, while other cost-of-capital elements show close alignment. The study fills in missing data using proposed values where applicable.

Table 1: Summary Statistics p. pp. 13-14
Table 1: Summary Statistics Characteristic N Electric Natural Gas Rate of Return Proposed (%) 3,589 9.93 (2.00) 9.94 (2.09) Rate of Return Approved (%) 3,535 9.53 (1.92) 9.40 (1.95) Return on Equity Proposed (%) 3,614 13.16 (2.70) 12.88 (2...

AI summary This table presents summary statistics from a rate case dataset, including proposed and approved rates of return, return on equity, rate increases, and other financial metrics for electric and natural gas utilities. The data highlights differences between proposed and approved values and provides insights into the financial structure and performance of these utilities.

Table G.1: Average annual excess costs, by different benchmarks (2019$ billion per year) p. p. 73
Table G.1: Average annual excess costs, by different benchmarks (2019$ billion per year) CAPM CAPM CAPM UST central high low Corp RoD UST Auto UK Fixed 6.19 2.75 9.07 5.48 1.73 6.26 1.89 3.36 Adjusted 7.16 3.07 10.60 6.26 1.93 7.06 2.03 3....

AI summary Table G.1 presents average annual excess costs for investor-owned utilities in the US from 1992–2022, using various benchmarks such as CAPM, UST, and others. The 'fixed' row assumes a static rate base, while the 'adjusted' row accounts for changes in the rate base over time. Excess payments are calculated in billions of 2019 dollars per year.

Data p. p. 75
nuary. Accessed March 17, 2021. [https: / /platform.marketintelligence.spglobal.com /web /client?auth=inherit#office /](https://platform.marketintelligence.spglobal.com/web/client?auth=inherit#office/screener) [screener](https://platform.m...

AI summary The text provides a list of references to various data sources and academic materials related to credit ratings, cost of capital, and historical returns on financial instruments. These resources are used for analytical purposes in regulatory proceedings.

N-53Vincent Musco CV - Bates White 1 passage
Testifying experience p. p. 0
Matter M10206) - On behalf of the Nova Scotia Utility and Review Board, provided written testimony in the matter of an application by Nova Scotia Power, Inc. for an exemption from the requirements of the Affiliate Code of Conduct to permit...

AI summary The text outlines various testifying experiences involving the Nova Scotia Utility and Review Board, including providing testimony on matters related to fuel adjustment mechanisms, interim cost assessments, and purchase power agreements for offshore wind. These matters involve Nova Scotia Power and other entities.

N-59Response to Undertaking 12 - Revised with attachments 2 passages
2026-2027 GRA U-12 Attachment 1 Page 5 of 172 p. p. 5
2026-2027 GRA U-12 Attachment 1 Page 5 of 172 AccountNuGroupNumProbableRProbableRGivenASL CurveNamNetSalvag OriginalCost CalculatedAccrued BookReserve FutureAccruals Composite AnnualAccrual AnnualAccInServiceM 2027 9 ASL_BG RL_Allocat 0 0...

AI summary The text presents a table with various financial and accounting data related to asset retirement obligations, including original costs, calculated accrued values, book reserves, and future accruals for different account numbers and groups. It includes numerical values and identifiers for tracking financial liabilities.

9 EqualLifeGroup RL_Allocat 0 0 34.19535 0.00 365202041EqualLifeGroup p. p. 5
9 EqualLifeGroup RL_Allocat 0 0 34.19535 0.00 365202041EqualLifeGroup 2041 9 EqualLifeGroup RL_Allocat 0 0 18.25804 0.00 366002041EqualLifeGroup 2041 9 ASL_BG RL_Allocat 0 0 9.157813 0.00 398002041ASL_BG 2041 9 ASL_BG RL_Allocat 0 0 3.3963...

AI summary The text contains a series of tables and data entries related to RL_Allocat calculations for various entities, including EqualLifeGroup and ASL_BG, with values such as RemainingMinRlValue and AccountNumber for different years and procedures.

N-61Caroline Palmer CV - Synapse 1 passage
TESTIMONY p. p. 0
Approval of New Modified Tariffs for Service to Large Load Customers. On behalf of Sierra Club. September 5, 2025 and November 3, 2025. Issues covered: data center tariff design and cost allocation. Missouri Public Service Commission (ER-2...

AI summary Testimony by Caroline Palmer on behalf of various organizations in multiple states regarding tariff design, cost allocation, and rate studies. The testimony covers issues such as data center tariff design, cost-of-service studies, and residential and time-of-use rate design in different regulatory proceedings.

N-63OEB Cost Allocation Review 59 passages
1.1.1 Scope of the Review p. p. 0
1.1.1 Scope of the Review The March 9, 2005 letter indicated that the cost allocation review will be based "primarily on the existing rate classifications and a limited number of rate design issues". As explained below, certain potential r...

AI summary The scope of the cost allocation review is primarily based on existing rate classifications and limited rate design issues. A separate comprehensive study of distribution rate design will address topics such as density rates, seasonal rates, and time of use distribution rates, which are deferred from the current review.

Cost Allocation p. p. 0
Cost Allocation The Board will analyze the cost allocation filings to identify with greater certainty the actual share of costs for serving different classes of customers. Distributors with significant variations between class costs and re...

AI summary The Board will review cost allocation filings to determine the actual share of costs for serving different customer classes. Distributors with significant discrepancies between class costs and revenues may be required to address the issue in a 2007 rate application.

1.1.3 Objectives Of Staff Discussion Paper p. p. 0
1.1.3 Objectives Of Staff Discussion Paper The general purpose of this discussion paper is to facilitate the forthcoming consultations with stakeholders. The Paper: - addresses the major steps in a cost allocation study - identifies and in...

AI summary The Staff Discussion Paper aims to facilitate stakeholder consultations by outlining the major steps in a cost allocation study, identifying issues related to cost allocation and rate design, and presenting preliminary proposals for review and debate.

1.2.2 Development of OEB Filing Model p. p. 0
1.2.2 Development of OEB Filing Model As the first phase of the Technical Advisory Team meetings progresses, the development of the new OEB cost allocation model will start. An outline of the model will be introduced at the October Technic...

AI summary The development of a new OEB cost allocation model is underway, with initial testing by two medium-sized distributors and a second version planned for April 2006, to be tested by three distributors of varying sizes.

1.2.3 Cost Allocation Informational Filings p. p. 0
1.2.3 Cost Allocation Informational Filings In March 2006, following stakeholder consultations, the Board will issue a Report adopting common cost allocation principles and methodologies for the OEB cost allocation review. Select rate desi...

AI summary In March 2006, the Board will issue a report adopting common cost allocation principles and methodologies following stakeholder consultations. Mandatory filing requirements and a model will be released in July 2006, with all Ontario electricity distributors required to submit new cost allocation studies publicly during the fall of 2006.

Section 2: Overview of Cost Allocation p. p. 0
Section 2: Overview of Cost Allocation Cost allocation studies serve the following main purposes: - to allocate the costs to provide service to the various customer rate classes based on cost causation principles - to assess the reasonable...

AI summary This section outlines the purposes and processes of cost allocation studies, which are used to allocate distribution and operational costs to customer rate classes based on cost causation principles. The studies assess the reasonableness of rates and support rate design. A three-step process—functionalization, categorization, and allocation—is described for assigning costs to rate classes.

2.1 Financial Information Requirements p. p. 0
2.1 Financial Information Requirements A cost allocation study will allocate the test period rate base and revenue requirement to the various customer groups. The basic financial information required to perform a cost allocation study is e...

AI summary A cost allocation study is required to distribute the test period rate base and revenue requirement among customer groups. Financial data must be extracted from the Uniform System of Accounts (USoA) as outlined in the Accounting Procedures Handbook, Article 220. Load research and customer-related data are also needed for cost allocation.

3.1 Background p. p. 12
3.1 Background The first step in the cost allocation studies consist of identifying and separating costs that can be directly assigned to a particular rate class. For this project, "direct assignment" will be appropriate only where a given...

AI summary The background section outlines the process of cost allocation, distinguishing between direct assignment and direct allocation. It highlights that only a few accounts are directly assignable, with most costs serving multiple rate classes. The Ontario electricity distribution sector uses a Uniform System of Accounts (USoA) to standardize cost allocation practices.

4.1 Background p. p. 12
4.1 Background Functionalization is an important early step in the cost allocation process, as it sets up the framework for the categorization and allocation steps. Functionalization has been defined as: "The arrangement of costs according...

AI summary Functionalization is a key step in cost allocation, organizing costs by major utility functions like distribution. Sub-functionalization further breaks down these functions. The USoA for Ontario electricity distributors provides a standardized approach to this process.

Basic Customer Method p. p. 12
Basic Customer Method This approach categorizes as customer-related costs only those capital and operating expenses that are directly associated with adding another customer. Examples of such costs are the capital and operating costs assoc...

AI summary The Basic Customer Method focuses on capital and operating costs directly tied to adding new customers, such as meters and service drops. It differs from other methods by excluding upstream distribution infrastructure costs like transformers and primary conductors. Critics argue it takes a short-term view and ignores long-term infrastructure expenses. The method is used in the U.S. but has limited Canadian application, with stakeholder input sought on its elements.

Zero–Intercept Method p. p. 12
Zero–Intercept Method The Zero-Intercept Method assumes that a portion of the upstream distribution system is customer-related rather than entirely demand-related. The Zero-Intercept Method uses a statistical calculation to determine the a...

AI summary The Zero-Intercept Method is a statistical approach used to allocate distribution costs between customer-related and demand-related components. It involves creating a regression curve based on installed costs and demand ratings, extending it to a no-load intercept, and identifying the customer component. While the 2003 Working Group raised concerns about its complexity, some Canadian utilities have successfully applied it.

Minimum System Method p. p. 12
Minimum System Method This method has been described as follows: "Classifying distribution plant with the minimum-size method assumes that a minimum size distribution system can be built to serve the minimum loading requirements of the cus...

AI summary The Minimum System Method classifies distribution plant costs based on the minimum size required to serve customer demand. It calculates customer-related costs using average book costs of equipment and determines demand-related costs as the difference between total investment and customer-related costs. While accepted by regulators like the OEB, it has sparked debate due to potential overstatement of customer-related components.

5.2.1 Use of Generic Categorization Methods and Results p. p. 12
5.2.1 Use of Generic Categorization Methods and Results In the present context, the selection of cost allocation methodologies and their application must also take into account the need for distributors to execute, and the OEB to review, a...

AI summary The document discusses the use of cost allocation methodologies for distributors, recommending the Basic Customer Method due to its simplicity, while cautioning against the use of more complex methods like Zero-Intercept and Minimum System due to technical and data challenges. An external consultant is being used to gather generic results for use in filings.

5.2.2 Use of Two Categorization Methods to Assist in Reviewing Future Rate Design p. p. 12
5.2.2 Use of Two Categorization Methods to Assist in Reviewing Future Rate Design A key objective of the present informational cost allocation filing process is to identify potential anomalies in fixed monthly customer charges. This can be...

AI summary The informational cost allocation filing process aims to identify anomalies in fixed monthly customer charges by using two categorization methods—a floor and a ceiling—to establish a range of reasonableness. The Basic Customer Method provides a floor, while the Zero-Intercept or Minimum System Methods provide a ceiling. The goal is to help the Board identify significant outliers rather than determine exact charge levels.

5.2.3 Categorization Method to Review Class Revenue-to-Cost Ratios p. p. 12
5.2.3 Categorization Method to Review Class Revenue-to-Cost Ratios The other major objective of the forthcoming cost allocation filings is to assess the revenue-to-cost ratios for the various customer rate classes of each distributor. It m...

AI summary The document discusses the recommended approach for categorizing revenue-to-cost ratios for customer rate classes. It suggests using either the Zero-Intercept or Minimum System Method, both of which are accepted by Canadian regulators. Stakeholder input will be sought to determine the most suitable method, and default categorization figures will be proposed based on a consultant's survey.

5.3 Initial Recommendations p. p. 12
5.3 Initial Recommendations To provide the Board and stakeholders with the most useful information to assess variations in fixed monthly customer charges, the cost allocation filings should incorporate two different categorization methods....

AI summary Staff recommends incorporating two categorization methods in cost allocation filings to assess variations in fixed monthly customer charges. The first method is the Basic Customer Method, while the second will be determined after reviewing survey results and stakeholder input.

6.1 Background p. p. 12
6.1 Background The final stage of a cost allocation study is the allocation of costs to customer classes. At this stage, costs have been functionalized and categorized into demand and customer-related components. For demand-related costs,...

AI summary The final stage of a cost allocation study involves allocating costs to customer classes, with demand-related costs using load data and customer-related costs using accounting records or customer numbers.

6.2.1 Background p. p. 12
6.2.1 Background There are several technical factors to consider when allocating the demand-related component of distribution facilities. Some distribution facilities are designed to meet the individual customer's maximum demand, while oth...

AI summary The text discusses technical considerations for allocating demand-related costs in distribution facilities, distinguishing between coincident and non-coincident peak methods. It highlights how different types of facilities use varying demand metrics for design and cost allocation.

Direct Allocation p. p. 12
Direct Allocation Some distribution facilities could be dedicated to only one customer. In such cases, the costs should be directly allocated to the customer. Care should however be taken not to directly allocate costs to a customer and la...

AI summary Direct allocation of costs to a single customer is discussed, with considerations on when and how it should be applied. It emphasizes the need for supporting documentation and materiality tests, and seeks stakeholder input on clarity of conditions for direct allocation.

Use of NCP as main allocator of joint distribution demand costs p. p. 12
Use of NCP as main allocator of joint distribution demand costs The 2003 Working Group generally agreed that NCP should be the approved method used to allocate most demand-related distribution costs. The reasons included the following: - I...

AI summary The 2003 Working Group recommended NCP as the primary method for allocating joint distribution demand costs due to its fairness and customer control. Staff agrees with this approach, noting that NCP better reflects customer usage and provides more transparency compared to CP.

Potential other NCP allocators p. p. 12
Potential other NCP allocators The 2003 Working Group discussed allowing utilities the option of allocating demandrelated distribution costs using the NCP of a number of months if it could be justified. The discussion focused on the merits...

AI summary The 2003 Working Group considered allowing utilities to use 12 NCP as a demand-related distribution cost allocator, noting its historical use in legacy rates. However, the emphasis should be on cost causality rather than smoothing effects. Only 1 NCP will be allowed as the sole demand allocator unless compelling cost justifications exist for other methods.

Peak-load Carrying Capacity ("PLCC") Adjustment p. p. 12
Peak-load Carrying Capacity ("PLCC") Adjustment A Minimum System has a certain load carrying capability which can be viewed as being demand-related. As a result, the customer-related costs will have a demand component in them. If no adjust...

AI summary The document discusses the need for a Peak-load Carrying Capacity (PLCC) Adjustment to ensure fair allocation of demand-related costs among customers. It suggests that distributors should adjust for the PLCC of the assumed Minimum System and proposes that utilities may conduct their own analysis if it differs significantly from a generic default figure.

6.3.1 Background p. p. 12
6.3.1 Background The accounts classified as customer-related include the following: - (i) Operating and Maintenance Expenses: - Billing - Collection - Meter Reading - Call Centre - Bad Debt - (ii) Capital and Depreciation - Metering - Bill...

AI summary The text outlines how customer-related costs are classified and allocated, including operating and maintenance expenses, capital and depreciation, and the use of weighted customer allocation factors based on factors such as number of customers, investment costs, and service complexity.

Collection p. p. 12
Collection Collection efforts are conducted to recover accounts receivable, and manage the exposure to bad debts. Collection costs could be allocated based on historical tracking of collection efforts by customer group, or alternatively th...

AI summary The text discusses collection efforts aimed at recovering accounts receivable and managing bad debt exposure. It explores two approaches for allocating collection costs: one based on historical tracking by customer group, and another aligned with bad debt expenses, though the latter may not fully reflect actual collection costs incurred.

Meter Reading p. p. 12
Meter Reading At the current time, most residential and small commercial customers' meters are read manually. However, the frequency of meter readings may vary by rate class and by distributor. In contrast, the majority of interval meters...

AI summary The document discusses current meter reading practices, noting that most residential and small commercial meters are read manually, while larger customers use electronic interval meters. It outlines cost allocation considerations and potential factors for distributing meter reading costs, emphasizing the need to account for reading frequency and customer density.

Call Centre p. p. 12
Call Centre Activities in this category include responding to customer inquiries, and preparing educational and communication material. Call centre costs generally vary as a function of the number of customers and could be allocated to the...

AI summary Call centre activities involve responding to customer inquiries and preparing educational materials. Costs are typically allocated based on the number of customers per rate class, though some utilities use detailed records like time sheets or logs for more accurate tracking.

Customer Information System (CIS) p. p. 12
Customer Information System (CIS) CIS costs are commonly allocated in a fashion consistent with the treatment of billing and call centre costs. The allocation could hence be based on: - number of bills - weighted number of bills - number o...

AI summary The document discusses methods for allocating CIS costs, suggesting approaches such as the number of bills, weighted number of bills, number of customers, and weighted number of customers, with the weighted number of bills considering the effort and complexity of billing different customer classes.

6.3.3 Initial Recommendations p. p. 12
6.3.3 Initial Recommendations From a cost causality standpoint, it is recommended that weighted allocation factors be used for most customer-related costs since these costs generally vary as a function of several cost drivers. They include...

AI summary The document recommends using weighted allocation factors for customer-related costs based on cost drivers like the number of customers and investment costs. It suggests developing standard factors based on North American utility surveys, while allowing distributors to propose alternative factors if justified by their specific circumstances.

7.1 Background p. p. 12
7.1 Background Some components of the revenue requirement cannot be either directly allocated, or allocated to customer rate classes by using the three-step process described in Section 2 of this paper. Instead, other methods are commonly...

AI summary The document discusses methods for allocating revenue requirements that cannot be directly allocated using the three-step process. These include pro rata allocations, labour ratios, and detailed analyses. Expenses such as general plant, administrative expenses, working capital allowance, and taxes are included in this category.

7.2.2 Options p. p. 12
7.2.2 Options The commonly used approaches to allocate these costs are: (i) a pro rata allocation to the allocated distribution plant. Referred as "plant ratio method" in the 2000 Navigant Report. 6 Referred as "composite allocation factor...

AI summary The text outlines three common approaches to allocating general plant costs: pro rata based on distribution plant, labour factors or headcount, and detailed analysis. Each method is explained with examples, such as using floor space or workforce size to allocate costs.

7.3.2 Options p. p. 12
7.3.2 Options Various approaches can be used to allocate A&G. The first approach consists of allocating A&G in proportion to the labour component of the O&M expenses. This recognizes for example that employee pensions and benefits should b...

AI summary The text discusses various approaches to allocating A&G (Administrative and General) expenses, including proportionate allocation based on labour, pro rata allocation excluding A&G, and grouping similar accounts for allocation based on their nature.

Use of Load Data in Establishing Demand Allocators p. p. 12
Use of Load Data in Establishing Demand Allocators While there are a number of methods to allocate distribution demand-related costs, all require the use of load data. It is widely recognized that load data plays an important role in the a...

AI summary Load data is essential for accurately allocating distribution demand-related costs. The American Public Power Association highlights that the accuracy of demand load data significantly affects the allocation of capacity costs to customer classes of service.

8.1.3 Load Data Implementation Issues p. p. 12
8.1.3 Load Data Implementation Issues There are a variety of technical questions dealing with how the new load data will be processed and prepared for use in the cost allocation model. These will be examined in detail during the third phas...

AI summary The document discusses technical challenges related to implementing new load data in the cost allocation model, noting that specialized rate classifications may not be covered by industry research groups, requiring careful consideration by distributors.

8.2.1 Background p. p. 12
8.2.1 Background The 2003 Working Group spent considerable time examining the need for, and manner of, weather normalizing the load data to be used when allocating demand-related costs. 9 The rationale for weather normalizing has been summ...

AI summary The 2003 Working Group examined the need for weather normalizing load data to allocate demand-related costs more fairly. Weather normalization adjusts peak demand to reflect typical weather conditions, which helps stabilize cost allocation. The impact of weather on demand can vary significantly, with estimates ranging from 1%-2% for energy and up to 10% for peak demand.

Should weather normalization be required? p. p. 12
Should weather normalization be required? In the first phase of the consultations, Staff proposes to address the following two questions: 1) should utilities be required to weather normalize the load data collected? and, 2) if so, should a...

AI summary The Staff proposes that Ontario electricity distributors be required to weather normalize load data for cost allocation studies, citing significant weather effects on load data and the potential for industry cooperation to reduce costs. A common weather normalization method is also recommended to ensure consistency across distributors.

8.2.3 Initial Recommendations p. p. 12
8.2.3 Initial Recommendations Given the importance of weather sensitive loads, Staff proposes that all Ontario electricity distributors be required to weather normalize the load data used in the cost allocation studies. To ensure consisten...

AI summary Staff recommends that Ontario electricity distributors weather normalize load data for cost allocation studies and adopt a uniform method. Ontario Hydro's methodology is suggested as a starting point for discussion.

9.1 Background p. p. 12
9.1 Background It is anticipated that in March 2006 the Board will issue a Report on Cost Allocation Principles and Methodologies. The subsequent third phase of consultations will then deal with implementation issues. Following the third p...

AI summary The Board plans to issue a Report on Cost Allocation Principles and Methodologies in March 2006, followed by a third phase of consultations on implementation issues. In July 2006, the Board intends to release a cost allocation filing model, general filing instructions, and a summary template.

9.2 Cost Allocation Filing Period p. p. 12
9.2 Cost Allocation Filing Period A cost allocation study is performed by using the Board-approved revenue requirement and data for a one-year reference period or "test year". A decision is required on the appropriate test year for the cos...

AI summary This section outlines the process for conducting a cost allocation study, using the Board-approved revenue requirement and data from a one-year reference period. Staff recommends using the 2006 revenue requirement as a starting point, with adjustments for non-utility operations and non-recurring regulatory accounts. Stakeholder input is requested on additional potential adjustments.

9.3 Summary of the Study p. p. 12
9.3 Summary of the Study A summary will be required with the cost allocation filings including an explanation of the study results. In addition, the summary should include the rationale, and supporting documentation (including any material...

AI summary The summary of the study is required with cost allocation filings and must explain study results, rationale, and supporting documentation for alternative cost allocation methods. Examples include documentation for direct allocation of demand-related costs and load study methodology.

9.5 Other Data Issues p. p. 12
9.5 Other Data Issues Data availability and consistency issues will be addressed during the third phase of the consultation. Comments will be sought on the source of sufficiently disaggregated filing data, for example, where a distributor...

AI summary The third phase of the consultation will address data availability and consistency issues. Comments will be sought on the source of disaggregated filing data, especially when functions are outsourced. The consultations will also ensure consistency in mapping underlying costs and accounts into the cost allocation model.

9.6 Output of the Model p. p. 12
9.6 Output of the Model The details of the various outputs from the cost allocation filing model will be finalized during the third phase consultations. A standard set of outputs from the filing model will be prescribed. Given the key obje...

AI summary The document outlines the standard outputs from the cost allocation filing model, including revenue-to-cost ratios, fixed monthly charges, and unit costs. The model will be run twice using different methodologies, and additional technical information will be provided for stakeholder review. Audit trails and future rate design considerations are also mentioned.

9.7 Use of OEB Model p. p. 12
9.7 Use of OEB Model The purpose of the present cost allocation informational filings is to gather detailed costbased information. Consistency in the filings received from distributors is a crucial goal. The need to review approximately ni...

AI summary The Board is proposing a standard cost allocation filing model to ensure consistency among distributors. The model will be based on approved methodologies and principles, with mandatory use unless an exemption is granted. Distributors using their own models must align with the Board's standards and produce equivalent outputs.

Cost allocation studies p. p. 12
Cost allocation studies Staff will seek stakeholder input on the development of a methodology to accurately track the costs for this new rate classification. This will ensure that other ratepayers are not unfairly treated by the creation o...

AI summary Staff proposes a methodology to allocate costs for a new scattered unmetered load class, ensuring fairness for ratepayers. Unmetered loads should bear full distribution asset costs, excluding metering and billing costs sent to a central office. Stakeholder input is requested on additional costs to allocate or exclude.

10.3 Initial Recommendations p. p. 12
10.3 Initial Recommendations Staff recommends that a new scattered unmetered load class be set up as part of the cost allocation model and that a full cost allocation study be performed for the new class. Staff further recommends that the...

AI summary Staff recommends creating a new scattered unmetered load class and conducting a full cost allocation study. They also suggest splitting the fixed monthly charge into two components: one per customer and another for individual connection costs, with remaining distribution costs recovered through a volumetric charge.

Allocating costs to the new class p. p. 12
Allocating costs to the new class Staff has identified two approaches to the issue. The first would be to require that a cost allocation methodology be followed when allocating costs to the embedded distributor customer class. This would r...

AI summary Staff proposes two approaches for allocating costs to the new customer class. The first involves using a standardized cost allocation methodology, while the second suggests following a different approach used by former Ontario Hydro. Staff advocates for a consistent methodology across all distributors, despite potential complexities in some cases.

14.1.2 Issues and Options p. p. 12
14.1.2 Issues and Options Affected distributors should be required to perform and file a cost of service study with both the new and existing rate classifications. This would provide sensitivity analysis at all stages of the cost allocatio...

AI summary The text discusses the need for distributors to perform cost of service studies under new and existing rate classifications, and suggests using typical load profiles to estimate customer impacts. It also raises concerns about the complexity of rate design if new classifications are introduced with minor cost differences.

14.2.2 Issues and Options p. p. 12
14.2.2 Issues and Options As previously indicated, Staff proposes that the review of the fixed monthly service charges be done by establishing a reasonable cost-based floor and ceiling. The costbased floor will be based on the results of t...

AI summary Staff proposes reviewing fixed monthly service charges by establishing a cost-based floor and ceiling, using the Basic Customer Method and survey results. Consultations should focus on the Minimum System approach, as previous methods led to high charges. Large users showed significant variations, and total distribution charges should be examined.

14.3.2 Options and Issues p. p. 12
14.3.2 Options and Issues The use of a particular method over another is likely to generate different peak demand results and therefore, different demand charges. This in turn would likely have ramifications on load research, cost allocati...

AI summary The text discusses the impact of different methods for measuring peak demand on demand charges, load research, cost allocation, and rate design. Staff proposes investigating a common definition of peak demand and seeks stakeholder input on the merits of various methods.

Appendix 1 – Direct Assignment of Accounts p. p. 12
Appendix 1 – Direct Assignment of Accounts Appendix 1 - Direct Assignment of Accoun its 5035 Overhead Distribution Transformers- Operation x 5040 Underground Distribution Lines and Feeders - Operation Labour x 5045 Underground Distribution...

AI summary This appendix outlines the direct assignment of accounts related to overhead and underground distribution systems, including transformer operations, line maintenance, meter expenses, and rental payments. It includes various account numbers and their associated costs and allocations.

Appendix 6 Illustrative Example of the Derivation of a Weighted Customer Allocation Factor - Metering p. p. 12
Appendix 6 Illustrative Example of the Derivation of a Weighted Customer Allocation Factor - Metering Col.1 Col. 2 Col. 3 Col. 4 Customer Rate Class Cost per Meter (Installed) ($) Number of Meters Weighted Metering Costs (1) ($) Weighted F...

AI summary This appendix provides an illustrative example of how a weighted customer allocation factor for metering is derived. It shows the cost per meter, number of meters, weighted metering costs, and weighted factors for different customer rate classes, including residential, GS < 50 kW, GS > 50 kW, and large users.

Appendix 7 - Board's 2003 Load Data Collection Directions, RP-2003-0228 p. pp. 12-83
Appendix 7 - Board's 2003 Load Data Collection Directions, RP-2003-0228 Ontario Energy Commission de l'Énergie Board de l'Ontario P.O. Box 2319 C.P. 2319 2300 Yonge Street 2300, rue Yonge 26th. Floor 26e étage Toronto ON M4P 1E4 Toronto ON...

AI summary The Ontario Energy Board issued directions in 2003 regarding load data collection, referencing the need for updated load profiles for cost allocation studies. The document outlines the formation and reactivation of a Cost Allocation Working Group and includes a joint proposal from over 40 distributors for province-wide load data collection.

Average v. Marginal Cost p. p. 83
Average v. Marginal Cost The Working Group was asked to assess the merits of an average versus a marginal cost approach to undertaking the upcoming cost allocation studies. The Group recommended use of an average ("embedded") cost approach...

AI summary The Working Group recommended using an average (embedded) cost approach for upcoming cost allocation studies, similar to Ontario's natural gas distributors. The Board accepted this recommendation, emphasizing that marginal pricing principles may still be considered during the rate design stage.

Cost Allocation Financial Case Studies p. p. 83
Cost Allocation Financial Case Studies The Working Group suggested that three cost allocation financial case studies be undertaken. The Board will not issue directions in this regard at present, as it wishes to focus on the immediate load...

AI summary The Working Group recommended three cost allocation financial case studies, but the Board will not issue directions at this time, focusing instead on immediate load data collection. Stakeholders value the case studies for clarifying financial data needs and addressing differences in interpreting the current system of accounts. The Board will consider incorporating case studies into the cost allocation consultations.

Issue 1) What type of load data should be collected? p. p. 83
Issue 1) What type of load data should be collected? To provide the full range of data that may be needed when subsequently completing the cost allocation studies, the Working Group recommended interval load data be collected. The Board ag...

AI summary The Working Group recommends collecting interval load data for cost allocation studies. The Board agrees and specifies that the interval should not exceed one hour, addressing concerns raised by Guelph Hydro regarding appropriate time intervals.

Issue 5) Is additional metering needed? Are there any practical constraints if additional metering is required? p. p. 83
Issue 5) Is additional metering needed? Are there any practical constraints if additional metering is required? a) Re Timing: The Working Group advised that it is not feasible to commence load data collection on January 1, 2004 (as origina...

AI summary The Board addresses Issue 5 regarding the timing and costs of additional metering for load data collection. It acknowledges delays in metering due to installation and testing timelines and directs that data collection commence by February 1, 2004. The Board also agrees that a joint load data collection initiative is more economical than individual programs.

c) Low density rates and poly-phase rates p. p. 83
c) Low density rates and poly-phase rates The Working Group noted that detailed cost data is required to support rate schedules that reflect differing customer density, and also to reflect three-phase versus singlephase service. But it und...

AI summary The Working Group recommends that detailed cost data be used for low density and poly-phase rates without requiring separate load data, as these classifications are not expected to have significantly distinctive load profiles. The Board agrees and will not require separate load profiles for these rates.

d) Large Use Class p. p. 83
d) Large Use Class The Working Group assumed that all customers in a distributor's Large Use class are individually interval metered and therefore appropriate load data will be available. If this assumption proves incorrect for a particula...

AI summary The Working Group assumes that all Large Use class customers are individually interval metered, ensuring load data availability. If this assumption is incorrect, the Board requires the distributor to take additional steps to develop the necessary load data for cost allocation.

B) Board Response to Province-wide Joint Load Data Collection Proposal p. p. 83
s in this rate classification, which will provide new data to check and possibly refine the estimate. - · It will be assumed that all Intermediate and Large Use customers are interval metered already. Guelph Hydro commented that the incide...

AI summary The Board supports the Ontario Load Data Research Group's proposal for joint load data collection, acknowledging potential concerns about interval metering coverage but believing the data will be sufficient for cost allocation studies. The Board expects the group to begin data collection by February 1, 2004, and to report on progress by December 22, 2003, and February 2, 2004.

SELECT REFERENCES p. p. 83
SELECT REFERENCES Cost-of-Service Methodology (R-85-13), Ontario Hydro Rates Department, October 1985 Cost of Service Procedures for Public Power Systems, American Public Power Association (Economic and Engineering Services Inc.) Electric...

AI summary The text lists several references related to cost-of-service methodologies and allocation guidelines used in the utility sector, including documents from Ontario Hydro, the American Public Power Association, and the National Association of Regulatory Utility Commissions.

N-64N-64.pdf 95 passages
COST ALLOCATION REVIEW p. p. 0
COST ALLOCATION REVIEW Board Directions on Cost Allocation Methodology For Electricity Distributors

AI summary The document outlines the Board's directions regarding the methodology for cost allocation among electricity distributors, emphasizing the need for a fair and transparent approach to distributing costs.

1.1 Purpose of Report p. p. 4
1.1 Purpose of Report This Report sets out the Board's common cost allocation methodology to govern the cost allocation review informational filings due from licensed electricity distributors starting in the Fall of 2006. The Board release...

AI summary This report outlines the Board's cost allocation methodology for licensed electricity distributors, following the release of a staff proposal and additional comments in 2006. A filing model and instructions will be issued in October 2006, with distributors required to submit filings as per their licence requirements.

1.5.1 Common Cost Allocation Methodology p. p. 5
1.5.1 Common Cost Allocation Methodology In this Report the Board has established a common cost allocation methodology for use by Ontario electricity distributors. To assist in the completion and review of the filings, certain default valu...

AI summary The Board has established a common cost allocation methodology for Ontario electricity distributors, emphasizing sound cost causality and using consistent methodology with utility-specific inputs to support cost allocation reviews.

1.5.5 Alternative to Current Transformer Ownership Allowance p. p. 5
1.5.5 Alternative to Current Transformer Ownership Allowance The filings will include a common cost-based alternative to the current transformer ownership allowance. New substation and secondary transformation ownership allowances will be...

AI summary The filings propose a cost-based alternative to the current transformer ownership allowance, including new substation and secondary transformation ownership allowances and the gathering of relevant costs.

1.5.7 Summary of the Cost Allocation Filing p. pp. 5-8
1.5.7 Summary of the Cost Allocation Filing In addition to filing a completed model, all distributors will be required to file an accompanying Summary of the Cost Allocation Review Filing ("Filing Summary"). The Filing Summary should inclu...

AI summary Distributors must file a Summary of the Cost Allocation Review Filing alongside their completed model, including management comments on the interpretation of results and explanations if the approved methodology does not reasonably portray cost causality in their specific circumstances.

1.5.8 Specialized Situations p. p. 8
1.5.8 Specialized Situations This Report sets out a common cost allocation methodology that is intended to cover the great majority of the situations to be faced by a typical distributor. There may be specialized situations for which the R...

AI summary This section outlines a common cost allocation methodology for distributors, noting that it may not cover all specialized situations. It mentions that including generation assets in the rate base is rare and that distributors should use sound practices and explain any uncovered situations in their Filing Summary.

1.6 The OEB Cost Allocation Filing Model p. pp. 8-9
1.6 The OEB Cost Allocation Filing Model The OEB cost allocation review filing model and accompanying instructions are planned for release to all distributors shortly after the issuance of this Report. All licensed electricity distributors...

AI summary The OEB is planning to release a cost allocation review filing model for electricity distributors, with exceptions for certain entities. Most distributors are expected to use the standard model, while others must create their own with Board approval and ensure consistency with the outlined methodology.

1.9 Filing Process p. p. 10
1.9 Filing Process Distributors will be required to submit their cost allocation filings to the Board in one of the four following tranches (for details, see Appendix 1.3): - 1) November 30, 2006 - 2) January 15, 2007 - 3) February 28, 200...

AI summary Distributors must submit cost allocation filings to the Board in four tranches by specific dates. They are encouraged to collaborate with load data service providers and begin background work promptly. The filings will be made public, and additional background work is discouraged.

1.10 Review of Filings p. pp. 10-11
1.10 Review of Filings Following a review of the cost allocation filings by Board Staff, stakeholders will be provided an opportunity to comment on the results .

AI summary Board Staff has reviewed the cost allocation filings, and stakeholders will be given the opportunity to comment on the results.

1.11 Potential Future Implementation in Rates p. p. 11
1.11 Potential Future Implementation in Rates In light of the extensive effort given to this process and the Board's deliberations with respect to the appropriate cost allocation methodology, parties should expect that the Board will give...

AI summary The Board emphasizes the importance of the cost allocation methodology used in this Report, which will heavily influence future rate hearings. Adjustments to cost allocations, rate classifications, or rate design will be determined based on the review of filings and upcoming consultations. Distributors may be required to address specific matters in future rate applications, with potential implementation of new rates as early as May 2008.

2.2.2 Unmetered Scattered Loads ("USL") in Run 1 and USL Metering Credit p. p. 13
2.2.2 Unmetered Scattered Loads ("USL") in Run 1 and USL Metering Credit Certain customer loads have traditionally not been metered by most distributors. Specific examples include such loads as: bus shelters, phone booths, CATV amplifiers,...

AI summary The document discusses the treatment of Unmetered Scattered Loads (USL) in the context of cost allocation filings. It outlines two approaches for allocating costs to USL customers, referencing the 2006 EDR Handbook and rate orders. Distributors are advised to consider the underlying substance of their current USL rates and explain their choice of approach in the Filing Summary.

2.3.4 Common Separate Rate Classification for Embedded Distributors p. pp. 16-17
2.3.4 Common Separate Rate Classification for Embedded Distributors There are a number of host distributors that are providing a distribution service to embedded distributors. In some cases, host distributors have created a separate rate c...

AI summary The document discusses the need for a common separate rate classification for embedded distributors, noting that some host distributors have already created such classifications or treat embedded distributors as General Service customers. The Board recommends modeling a common classification in Run 2 filings, while acknowledging stakeholder concerns about the cost rationale for separate classifications.

3. Load Data Requirements p. p. 20
3. Load Data Requirements The Chapter sets out the Directions on load data requirements for the cost allocation filings.

AI summary This section outlines the Directions regarding load data requirements for cost allocation filings, which are essential for regulatory proceedings related to energy costs and distribution.

3.1 Load Data - General Requirements p. pp. 20-21
3.1 Load Data - General Requirements All distributors are generally expected to provide reasonable supporting load data for each separate rate classification to be modeled in Run 1, 2 or 3 of the cost allocation filing. Distributors consid...

AI summary This section outlines the general requirements for load data submission by distributors in cost allocation filings. Distributors must provide reasonable load data for each rate classification modeled in Runs 1, 2, or 3. Specific guidelines are provided for different classifications, including the use of interval meter data and approved load profiles. Special provisions apply to GS<50 kW and Unmetered Scattered Load classifications.

3.6 Load Profile for Separate Load Displacement Generation Rate Classification p. p. 24
3.6 Load Profile for Separate Load Displacement Generation Rate Classification Two different load data approaches may be modeled for these customers in Run 2 and Run 3, as the Board considers it useful to obtain a broad range of informatio...

AI summary The document discusses two different load data approaches for modeling customers in Run 2 and Run 3, aiming to gather a wide range of information on cost allocation for load displacement generation customers. Stakeholders will be given a future opportunity to comment on these approaches.

4.1.1 Background p. p. 28
4.1.1 Background Cost allocation studies are generally performed using data for a one year reference period or "test year". For the purpose of the upcoming filings, the revenue requirement (as defined below) and the data underlying the app...

AI summary Cost allocation studies are based on a one-year reference period, and the 2006 distribution rates will be used for upcoming filings. Adjustments approved by the Board to the 2006 EDR revenue requirement must be reflected in the cost allocation filing.

4.1.2 Direction – Distributors that used a historical test year in the EDR 2006 application p. p. 28
4.1.2 Direction – Distributors that used a historical test year in the EDR 2006 application For distributors that used a historical test year in their 2006 EDR applications, the underlying 2004 trial balances will be the basis of the cost...

AI summary Distributors that used a historical test year in their 2006 EDR applications must use 2004 trial balances as the basis for cost data, with specific adjustments. Costs related to non-utility operations and non-recurring regulatory accounts should be excluded. Adjustments to distribution rates for smart meters are excluded, and proper cost allocation is emphasized, including moving costs between accounts.

4.2.2 Direction - Definition of Revenue for Cost Allocation Filings p. p. 31
4.2.2 Direction - Definition of Revenue for Cost Allocation Filings The service revenue requirement on sheet 5-1 of the distributor's approved 2006 EDR model will be the basis of ensuring all the proper costs have been included in the cost...

AI summary The document outlines the definition of revenue for cost allocation filings, specifying that the revenue per rate classification from the approved 2006 EDR model must be used. It details the components of revenue, including base revenue, revenue off-sets, and CDM allocations, while excluding certain adjustments like regulatory asset adders and smart meter adjustments.

5.1 Background p. pp. 33-34
5.1 Background As an initial step in a cost allocation study, a distributor should identify any significant distribution facilities that are dedicated exclusively to only one customer rate classification. The costs of such a facility, and...

AI summary The document discusses the principles and criteria for direct allocation of distribution costs to specific customer rate classifications. It emphasizes that direct allocation should only apply when facilities are exclusively used by a single classification and addresses scenarios involving redundancy and backup services. The Board prefers the 100% use test for direct allocation and rejects the use of a 'predominant' (90%) test due to complexity in cost allocation.

6. Functionalization p. p. 36
6. Functionalization Directions on the process to functionalize costs in the cost allocation filings are presented in this Chapter.

AI summary This section outlines the process for functionalizing costs in cost allocation filings, providing guidance on how to categorize and allocate costs appropriately within regulatory proceedings.

6.1.1 Background p. p. 36
6.1.1 Background The process of functionalization of costs is an important step in the cost allocation process, as it sets up the framework for the categorization and allocation steps. The functionalization step is the process that groups...

AI summary The functionalization of costs is a key step in the cost allocation process, grouping homogeneous costs into functions. The Uniform System of Accounts (USoA) for Ontario distributors is used to standardize this process. Costs are then categorized as demand-related or customer-related based on factors discussed in Chapter 7.

6.1.2 Direction - Grouping of Accounts and Sub-accounts in Cost Allocation Filings p. p. 36
6.1.2 Direction - Grouping of Accounts and Sub-accounts in Cost Allocation Filings In the cost allocation filings, each adjusted 2004 account shown in column P of Sheet 2-4 of the approved 2006 EDR application will be placed into a group t...

AI summary This section provides guidance on grouping accounts and sub-accounts in cost allocation filings, based on the approved common cost allocation methodology. Each adjusted 2004 account from the 2006 EDR application is to be grouped with others sharing a common allocation process, and sub-accounts are also to be grouped accordingly. Appendix 6.1 provides a comprehensive mapping of these groupings.

6.2.1 Introduction p. p. 37
6.2.1 Introduction The objective of breaking out accounts into sub-accounts is to better reflect the costs ultimately associated with specific assets according to the role of these assets in the distribution system, i.e., their function. T...

AI summary This section discusses the purpose of breaking out accounts into sub-accounts to better reflect the costs associated with specific assets based on their function in the distribution system. This approach will influence how costs are allocated to different rate classifications. Examples include the division of Account 1835 into sub-accounts based on functions such as bulk, primary, and secondary.

Functional Approach p. p. 37
Functional Approach The bulk, primary and secondary sub-accounts relate to assets associated with performing bulk, primary and/or secondary functions within a distribution system. The key objective of the cost allocation is to allocate cos...

AI summary The document discusses the 'functional approach' for allocating distribution costs based on the functions of bulk, primary, and secondary assets. It emphasizes the importance of cost causality and simplicity in the allocation method, noting that a voltage-based test is not universally applicable. The Board concludes that a functional approach best identifies bulk assets.

Stakeholder Discussions on Bulk Asset Test p. p. 37
Stakeholder Discussions on Bulk Asset Test The Board believes the most appropriate manner to implement a functional approach towards identifying bulk assets involves a separation of the distribution assets to identify any assets that were...

AI summary The Board discusses the implementation of a functional approach to identify bulk assets, emphasizing the need for a clear definition to ensure consistent cost allocation. The approach focuses on system peak considerations and addresses stakeholder concerns about inconsistent application of the bulk asset test.

6.2.2.2 Direction – Definition of Bulk p. pp. 37-39
6.2.2.2 Direction – Definition of Bulk A functional approach must be adopted towards identifying the assets that may serve a bulk delivery function in some distribution systems. The test to determine if any bulk assets exist in a given dis...

AI summary The document outlines a functional approach to identify bulk delivery assets in distribution systems, emphasizing that assets built to support the system's peak, not the customer's peak, should be classified as bulk assets for cost allocation purposes.

6.2.2.3 Implementation Guidance on Application of Bulk Definition p. p. 39
6.2.2.3 Implementation Guidance on Application of Bulk Definition For cost allocation purposes, as indicated the test to be applied by distributors in defining bulk assets is to identify those assets that were built to support the distribu...

AI summary This section provides guidance on defining bulk assets for cost allocation purposes. Bulk assets are those specifically built to support the distribution system's peak, and should be allocated using Coincident Peak (CP), while primary and secondary assets are allocated using Non-Coincident Peak (NCP). Factors like voltage level and system configuration are considered in determining the function of assets.

6.2.2.7 Specialized Circumstance p. pp. 39-42
6.2.2.7 Specialized Circumstance When the Technical Advisory Team commenced its discussions of functionalization, participants noted that subtransmission costs had been segregated in a previous application submitted to the Board by Hydro O...

AI summary The Board allows Hydro One to use a subtransmission cost pool in its upcoming cost allocation filing, provided it explains and justifies this approach, including the impact compared to a standard bulk asset cost pool. The Board also expects Hydro One to provide further justification if it uses CP for allocation, considering Chapter 8's guidance on CP and NCP usage.

6.3.1 Direction – Identifying Bulk, Primary and Secondary Costs p. p. 42
6.3.1 Direction – Identifying Bulk, Primary and Secondary Costs Once the bulk, primary and secondary assets have been identified based on the above tests and guidance, it is necessary to break out the associated costs. As the accounting gr...

AI summary The document outlines the process for identifying and allocating costs for bulk, primary, and secondary assets. Since detailed accounting data is not available, the distributor must estimate the percentage of costs for each asset type and apply it to the total asset account. The Filing Summary must explain this allocation method, which involves calculating unit installation costs and applying them to the respective asset line lengths.

6.3.2 Direction - Breakout of Bulk, Primary and Secondary Sub-accounts p. p. 42
6.3.2 Direction - Breakout of Bulk, Primary and Secondary Sub-accounts The bulk, primary and secondary sub-accounts should be broken out to the corresponding rate classifications that use those assets. In particular: - Secondary costs will...

AI summary The text outlines how bulk, primary, and secondary sub-accounts should be allocated to rate classifications based on the use of corresponding assets, with specific rules for cost allocation depending on customer and load percentages.

6.5.2 Direction – Treatment of Line Transformers p. p. 45
6.5.2 Direction – Treatment of Line Transformers To properly allocate line transformers assets (Account #1850) and the associated maintenance costs (Accounts #5035, #5055, #5160), the cost allocation model will require customer numbers and...

AI summary The document outlines the need to allocate line transformer assets and their maintenance costs using customer numbers and NCP loads by rate classification to reflect distinct usage patterns, differing from secondary assets.

6.6.2 Background - Determination of Contributions p. p. 46
6.6.2 Background - Determination of Contributions The level of contributions are determined by the net present value of the total costs of a project, offset by the revenue stream generated by the project's new customers. In addition to ext...

AI summary Contributions are determined based on the net present value of a project's total costs, adjusted for revenue from new customers. Upstream growth-related capital costs, such as distribution stations and feeders, may also be included in the project's costs even if they are not directly attributable to the project.

7. Categorization p. p. 49
7. Categorization Directions on the process to categorize costs in the cost allocation filings are presented in this Chapter.

AI summary This section outlines the process for categorizing costs in cost allocation filings, providing guidance for proper classification and allocation of expenses.

7.1 Introduction p. p. 49
7.1 Introduction The categorization step, also referred to as "classification", consists of subdividing distribution assets and O& M expenses into the following cost-based groupings: - demand-related, and/or - customer-related. Distributio...

AI summary The categorization step, or classification, involves subdividing distribution assets and operating and maintenance expenses into demand-related and customer-related groupings based on cost causality. Joint costs will be divided into customer and demand-related proportions using generic minimum system results, and allocated to rate classifications using allocators detailed in subsequent chapters.

7.2 Direction – Identification of Accounts p. pp. 49-50
7.2 Direction – Identification of Accounts For the cost allocation filings, functionalized grouped costs will be ultimately classified into one of the four components: - 100% demand-related - 100% customer-related - joint related (both cus...

AI summary This section outlines the classification of functionalized grouped costs into four categories: 100% demand-related, 100% customer-related, joint related, and pro-rata related. Examples include metering and billing as customer-related, distribution stations as demand-related, and joint costs like poles and transformers. Pro-rata related costs are allocated based on specific methods outlined in Chapter 10.

7.3.1 Background p. p. 50
7.3.1 Background Three principal options for categorizing joint distribution assets and operating expenses were initially identified. Each approach has been approved by various regulators across North America. The minimum system approach i...

AI summary Three principal options for categorizing joint distribution assets and operating expenses were identified. The minimum system approach is preferred for use in filings as the common categorization method, while the basic customer method is used for calculating lower end customer unit costs to assist with future rate design.

Option 2: Minimum System Method p. p. 50
Option 2: Minimum System Method The minimum system method assumes that a minimum-size distribution system can be built to serve the minimum load requirements of the customer. The minimum system method involves determining the minimum size...

AI summary The minimum system method assumes a minimum-size distribution system can be built to serve customer load requirements. It classifies costs as either customer-related or demand-related. The method involves determining the minimum size of distribution infrastructure and adjusting for peak load carrying capability to ensure accurate cost allocation.

Option 3: Basic Customer Method p. pp. 50-52
Option 3: Basic Customer Method This approach categorizes as customer-related costs only those capital and operating expenses that are directly associated with adding another customer. Examples of such costs are the capital and operating c...

AI summary Option 3, the Basic Customer Method, allocates customer-related costs only to those directly tied to adding a new customer, such as meters and service drops. Unlike other methods, it does not consider upstream distribution infrastructure costs. While it will not be approved for cost allocation, it may be useful for providing unit cost information for future reviews of fixed monthly customer charges.

7.3.2 Direction – Use of Minimum System Method and Basic Customer Method in Filings p. p. 52
7.3.2 Direction – Use of Minimum System Method and Basic Customer Method in Filings For cost allocation purposes, the minimum system approach will be used as the common categorization method. Generic minimum system results will be set out...

AI summary The document outlines the use of the minimum system method and basic customer method for cost allocation in filings. It specifies that the minimum system approach will be used for calculating revenue to cost ratios and splitting joint costs, with a standard PLCC adjustment. The basic customer method will be used to determine the lower range of unit costs, while the minimum system method will establish the upper range.

7.4.1 Introduction p. p. 52
7.4.1 Introduction The cost and time to undertake individual minimum system studies is significant. In addition, practitioners have varying judgements on key implementation details. Therefore, on the grounds of both practicality and consis...

AI summary The document discusses the use of generic minimum system results in cost allocation filings, grouping distributors by density and applying these results to specific joint-cost and depreciation accounts, excluding bulk sub-accounts.

7.4.2.3 Background - Stratification of Generic Minimum System Results p. p. 52
7.4.2.3 Background - Stratification of Generic Minimum System Results Technical Advisory Team discussions took place on how to fairly and consistently define density for purposes of the cost allocation filings. The question is of practical...

AI summary The document discusses the technical advisory team's efforts to standardize the definition of density for cost allocation filings. It highlights inconsistencies in how different distributors calculate density and outlines the rationale for using road km instead of circuit km. The Board may be asked to consider refining density definitions or stratum boundaries in the future.

7.5.1 Background – PLCC Adjustment p. p. 56
7.5.1 Background – PLCC Adjustment The minimum distribution system will carry a small amount of demand. The actual amount of demand capability within the minimum system is a function of load density, minimum required clearances, minimum eq...

AI summary The PLCC adjustment aims to correct over-allocation of demand costs by crediting the minimum system's capacity against non-coincident peak demands. The Board approved a generic 0.4 kW adjustment per customer/connection, rejecting stakeholder suggestions for larger adjustments or zero thresholds, as they contradict the principle of equal cost allocation for the minimum distribution system.

Customer Unit Cost Adjustment p. pp. 57-58
Customer Unit Cost Adjustment Another output of the filing model is customer and demand unit costs by rate classification. These unit costs can be used to help set future distribution rates; however, to reflect the results of the PLCC adju...

AI summary The filing model produces customer and demand unit costs by rate classification, which can be used to set future distribution rates. To reflect the PLCC adjustment, customer-related costs should be moved into demand-related costs before rate determination, though the total cost allocated to the rate classification remains unchanged.

7.7.1 Background p. p. 59
7.7.1 Background The minimum system methodology to be adopted will allocate certain customerrelated costs to individually metered customers in multi-unit complexes. But the multi-unit complexes have sometimes been considered, in past studi...

AI summary The document discusses the allocation of customer-related costs in multi-unit complexes, noting that past studies sometimes treated them as single customers. A stakeholder suggested a multi-unit adjustment based on cost causality, but no such adjustments will be included in current filings due to data challenges. The Board encourages distributors to gather more information for future improvements.

8. Allocation of Demand-Related Costs p. p. 61
8. Allocation of Demand-Related Costs Directions on how to allocate demand-related costs in the cost allocation filings are presented in this Chapter.

AI summary This section outlines the guidelines for allocating demand-related costs within cost allocation filings, providing a framework for how such costs should be distributed.

8.1 Introduction p. p. 61
8.1 Introduction The accounts/sub-accounts that, following the categorization step, are allocated on demand in total or in part were listed in Appendices 7.1 and 7.3. There are several technical factors to consider when properly allocating...

AI summary This section outlines the allocation of demand-related costs for distributors, introducing CP and NCP as methods for cost allocation. It notes that NCPI was used previously but will not be used in the current filing methodology due to complexity and other allocation methods.

4 NCP p. p. 61
4 NCP A criterion accepted in prior Ontario cost allocation analyses is the importance of choosing a stable cost allocation methodology. 4 NCP will function as a more stable methodology than 1 NCP and so has an important practical advantag...

AI summary The document discusses the use of 4 NCP as a more stable cost allocation methodology compared to 1 NCP and 12 NCP, emphasizing its importance in ensuring accurate cost causality and reliability, particularly in Ontario's distribution systems.

8.6.2 Direction – Treatment of Line Losses in Filings p. p. 68
8.6.2 Direction – Treatment of Line Losses in Filings In the cost allocation filings, distributors will use the same loss factors as approved in their 2006 EDR applications when adjusting their metered load data to arrive at the demand all...

AI summary Distributors are directed to use the same loss factors approved in their 2006 EDR applications when adjusting metered load data for cost allocation filings.

8.6.3 Filing Questions p. p. 68
8.6.3 Filing Questions A distributor must provide the following information for future reference as part of its Filing Summary: - 1. Provide an estimation of "non-technical" energy losses (e.g. theft of power, billing accruals, metering pr...

AI summary The distributor is required to estimate and report both non-technical and technical energy losses as a percentage of energy purchased, with technical losses further broken down by system components such as >50 kV, bulk, primary, and secondary assets, using definitions from cost allocations filings.

9. Allocation of Customer-Related Costs p. p. 70
9. Allocation of Customer-Related Costs Directions on how to allocate customer-related costs in the cost allocation filings are presented in this Chapter.

AI summary This section outlines the guidelines for allocating customer-related costs within cost allocation filings. It provides directions on how these costs should be handled in regulatory proceedings.

9.1 Introduction p. p. 70
9.1 Introduction Customer-related costs are commonly allocated by using the number of customers by rate classification, or by using weighted customer allocation factors. The weightings of customer allocation factors are typically developed...

AI summary Customer-related costs are allocated using rate classifications and weighted allocation factors that consider investment costs, service complexity, and customer density. These factors vary by asset type and O&M expenses to reflect specific cost characteristics, such as meter reading frequency and customer distribution.

9.3.1.1 Background p. p. 71
9.3.1.1 Background A common allocator used to allocate customer-related costs that are related to billing activities is the number of bills issued. The major accounts allocated on this basis are billing, collecting and associated supervisi...

AI summary The document discusses the allocation of customer-related costs based on the number of bills issued, including billing, collection, and customer care costs. Some parties suggested applying weighting factors to account for differences in costs across customer classifications, which the Board agreed to. Flexibility is provided for handling rate classifications not covered in the survey and for using utility-specific factors.

9.3.1.2 Direction – Allocation of Billing Activities p. pp. 71-72
9.3.1.2 Direction – Allocation of Billing Activities The number of bills adjusted by a weighting factor must be used to allocate costs associated with billing activities which include billing, collecting, and associated supervision and cus...

AI summary The document outlines the allocation of billing activities costs using a weighting factor based on the number of bills. It provides guidelines for using default weighting factors, allows for distributor-specific adjustments, and specifies that sentinel lights should be weighted at 0.10 for cost allocation purposes.

9.3.3 Meter Reading Costs p. pp. 72-74
9.3.3 Meter Reading Costs 9.3.3.1 Background At present, the meters for most Residential and General Service < 50 kW customers are read manually. The frequency of meter readings may vary by rate classification and by distributor. It is the...

AI summary The document discusses the allocation of meter reading costs, noting that manual readings are more expensive for customers spread out, while electronic readings for larger users are less costly. A weighted factor approach is used to allocate these costs fairly across rate classifications.

9.3.3.2 Direction – Allocation of Meter Reading Costs p. p. 74
9.3.3.2 Direction – Allocation of Meter Reading Costs Default "relationship factors" related to meter reading costs are provided for use when allocating meter reading costs. Details are set out in Appendix 9.3. The cost to read a residenti...

AI summary The document outlines a method for allocating meter reading costs using relationship factors based on a residential urban outside meter as a base. Distributors must input data on installed meters and apply relationship factors to determine relative costs for each rate classification. Flexibility is allowed for up to five additional meter types if their reading costs differ by at least 10% from defaults.

9.3.4.1 Background p. p. 74
9.3.4.1 Background The installed costs of overhead and underground service drops are included in Account 1855. These costs are customer related and it is appropriate to allocate the costs associated with these services (e.g. depreciation,...

AI summary The document discusses the allocation of costs for overhead and underground service drops, which are included in Account 1855. These costs are customer-related and should be allocated based on the weighted number of customers or connections, with some stakeholders noting that certain rate classifications may have zero costs due to distributor demarcation policies.

9.3.4.2 Direction - Allocation of Services Costs p. p. 74
9.3.4.2 Direction - Allocation of Services Costs The weighted number of customers or connections will be used to allocate costs related to Services (Account 1855). It is intended that the weightings reflect the differing average costs of c...

AI summary The weighted number of customers or connections is used to allocate costs related to Services (Account 1855), with default weighting factors provided in Appendix 9.4. Distributors must use specific weighting factors if their actual costs differ by 10% or more from defaults and provide supporting information. The Filing Summary must indicate if there are no costs in Account 1855 and explain the reason.

10. Allocation of Other Costs p. p. 78
10. Allocation of Other Costs Directions on how to allocate "other" costs in the cost allocation filings are presented in this Chapter. Generally these are costs that are neither customer nor demand-related.

AI summary This section outlines the directions for allocating 'other' costs in cost allocation filings, which are typically not customer or demand-related.

10.1 Introduction p. p. 78
10.1 Introduction Some components of the revenue requirement cannot be directly allocated, or allocated to customer rate classifications by using the functionalization, categorization and allocation process described earlier. Instead other...

AI summary The document discusses methods for allocating revenue requirements when direct allocation is not feasible, including pro rata allocation and detailed analyses. It lists various expenses and capital expenditures that fall into this category, such as administrative expenses, working capital allowance, and conservation costs.

10.2.2 Direction – Allocation of General Plant p. p. 79
10.2.2 Direction – Allocation of General Plant General Plant should be allocated on a pro rata basis using a composite of distribution net fixed assets (average of opening and closing balances for the test year), with no adjustment for con...

AI summary General Plant should be allocated on a pro rata basis using a composite of distribution net fixed assets, with no adjustment for contributed capital. Distributors with detailed analysis must use this information in cost allocation models and provide supporting documentation.

10.3.2 Direction – Allocation of A & G p. p. 79
10.3.2 Direction – Allocation of A & G Except for property insurance and community safety program costs, a pro rata allocation of O&M with backing out of A&G will be the common methodology for allocating general expenses. For property insu...

AI summary The document outlines a pro rata allocation methodology for general expenses, excluding property insurance and community safety programs, which are allocated based on distribution net fixed assets. Contributed capital is handled separately as outlined in Chapter 6.

10.6.1 Background p. p. 81
10.6.1 Background Bad debt expense consists of the amounts of uncollectible revenues. Many distributors monitor their bad debt write-offs at the rate classification level. The Accounting Procedures Handbook (Article 220) requires distribut...

AI summary The document discusses the allocation of bad debt expenses to customer rate classifications, recommending a method based on historical write-offs. It notes lack of stakeholder consensus and addresses concerns about normalization periods and fairness. The Board supports the staff's recommendation for cost allocation purposes.

10.6.2 Direction – Allocation of Bad Debt Expense p. pp. 81-82
10.6.2 Direction – Allocation of Bad Debt Expense Bad debt expense must be directly allocated to specific customer rate classifications based on their respective contribution to historical write-offs. For historical test year filers, an av...

AI summary The document outlines the allocation of bad debt expense to specific customer rate classifications based on historical write-offs. It specifies the use of average bad debt data from 2002–2004 for historical test year filers and 2003–2005 for future test year filers, excluding extraordinary bad debt. Pro rata allocation is recommended for new rate classifications without historical data.

10.7.1 Background p. pp. 82-83
10.7.1 Background Late payment charges (Account #4225) include the amounts of discounts forfeited or additional charges imposed because of the failure of customers to pay their electricity bills on or before a specified date. Collection ex...

AI summary Late payment charges and collection expenses are discussed in terms of their allocation based on rate classifications. A stakeholder suggested a common approach for both costs, but further data is needed. The allocator for collection expenses is the weighted number of bills, except for embedded distributors. Late payment charges should be allocated based on the three-year average of revenues by rate classification.

10.7.3 Filing Question p. p. 83
10.7.3 Filing Question To determine whether a similar cost allocation treatment of collection expenses and late payment charge revenues is feasible in the future, distributors should indicate whether the records are available to break out...

AI summary The proceeding discusses whether a similar cost allocation treatment of collection expenses and late payment charge revenues is feasible in the future, requiring distributors to indicate if records are available to break out collection costs by rate classification.

General Approach p. pp. 83-84
gas DSM hearing (EB-2006-0021), it was agreed by all participants that costs should be allocated on the same basis as budgeted spending. This allocation would apply to both direct and indirect costs. Several stakeholders commented on the A...

AI summary The document discusses the allocation of CDM costs in the gas DSM hearing, with stakeholders proposing different methods based on energy use, distribution revenue, and the Global Adjustment Mechanism. Some support the August proposal, while others argue for an 80/20 energy/demand allocation. The Board concludes to maintain the electricity sector status quo for cost allocation.

10.8.2 Direction – Allocation of Conservation and Demand Management Costs p. pp. 84-85
10.8.2 Direction – Allocation of Conservation and Demand Management Costs For cost allocation purposes, CDM costs must be allocated as follows: - 1. Direct CDM program operating expenses must be allocated to the participant customer classi...

AI summary The document outlines the allocation of Conservation and Demand Management (CDM) costs, specifying that direct program expenses are allocated to participant customer classifications, while indirect and capital costs are distributed proportionally based on composite operating and maintenance costs.

11. Cost Allocation and Unit Cost Calculations for Specialized Rate Classifications p. p. 86
11. Cost Allocation and Unit Cost Calculations for Specialized Rate Classifications Directions on cost allocation and unit cost calculations for the following specialized rate classifications are presented in this Chapter. - Embedded distr...

AI summary This section outlines the directions for cost allocation and unit cost calculations for specialized rate classifications, including embedded distributor, density, seasonal, unmetered scattered loads, and load displacement generation.

11.1.2 Direction – Cost Allocation and Unit Cost Methodology for Embedded Distributor Classification p. pp. 86-87
11.1.2 Direction – Cost Allocation and Unit Cost Methodology for Embedded Distributor Classification The cost allocation methodology approved elsewhere in this Report must be applied when allocating costs to this rate classification. The s...

AI summary The text outlines the cost allocation methodology for embedded distributor classifications, requiring the use of a two-part customer unit cost calculation. It emphasizes proper account sub-division and references Chapter 6 for subfunctionalization methods. Alternative methodologies are permitted in Run 3 but must be justified and consistent with sound cost allocation practices.

11.2.1 Background p. p. 87
11.2.1 Background It should be recognized that the average density for some currently-approved rate classifications varies significantly. In some cases, "urban" customers have been defined based on an average customer density higher than 6...

AI summary The document discusses the impact of customer density on cost allocation for rate classifications, noting that urban and suburban classifications have different customer densities. It outlines that density is a direct cost driver but may not be linear, and provides guidelines for cost allocation for distributors with approved density-based rate classifications.

11.2.2 Direction – Cost Allocation Methodology for Density- Based Classifications p. p. 87
11.2.2 Direction – Cost Allocation Methodology for Density- Based Classifications A distributor with density-based rate classifications is expected to be able to use the standard model in Run 1 and Run 2, but work must be undertaken to add...

AI summary The document outlines a standardized cost allocation methodology for distributors with density-based rate classifications. It requires the use of a single categorization factor, identification of density-influenced costs, and the application of density factors in cost allocation, with detailed analysis required for maintaining classifications.

11.3.1 Background p. p. 89
11.3.1 Background The standard cost allocation methodology will apply to any seasonal rate classification as no unique cost allocation issues were identified. There are few distributors with such separate rates currently in place. Adding a...

AI summary The document outlines the standard cost allocation methodology for seasonal rate classifications, noting that no unique cost allocation issues were identified. It emphasizes the need for full supporting data when considering changes to seasonal rates and highlights potential rate impacts from using a single NCP for demand-related cost allocation.

11.3.2 Direction – Cost Allocation Methodology for Seasonal Rate Classification[2](#page-89-1)3 p. p. 89
11.3.2 Direction – Cost Allocation Methodology for Seasonal Rate Classification[2](#page-89-1)3 Run 1 and Run 2 of the model must apply the cost allocation and customer unit cost methodology approved in this Report. Distributors wishing to...

AI summary The document outlines the cost allocation methodology for seasonal rate classification, requiring distributors to apply approved methods in Run 1 and Run 2 of the model. Run 3 requires justification for using 12 NCP based on the distribution system's cost characteristics.

11.4 Unmetered Scattered Loads ("USL") p. p. 89
11.4 Unmetered Scattered Loads ("USL") In the past, there had been variability in the treatment of unmetered scattered loads across the Province. The present filings are intended to lead to a common cost allocation approach for these custo...

AI summary The document discusses the need for a consistent cost allocation approach for unmetered scattered loads (USL) across the Province, with the same methodology applying to the Farm Rate classification.

11.4.1.2 Direction – Cost Allocation Methodology where Separate USL Rate Classification p. p. 89
11.4.1.2 Direction – Cost Allocation Methodology where Separate USL Rate Classification The cost allocation methodology approved in this Report for all rate classifications must also be applied to this rate classification, subject to any s...

AI summary This section outlines the cost allocation methodology approved in the report, which must be applied to all rate classifications, including this specific rate classification, with any special rules provided below.

Distribution and General Plant p. p. 89
Distribution and General Plant Unmetered Scattered Load customers will bear the full allocated costs of distribution facilities (and associated depreciation), with the exclusion of Load Management Controls – Customer Premises (Account 1970...

AI summary Unmetered Scattered Load customers are responsible for the full allocated costs of distribution facilities, excluding Load Management Controls and Meters. Test meters installed on USL as part of a verification program must have their costs allocated to USL.

11.4.2.1 Background p. pp. 89-91
11.4.2.1 Background The approach below is expected to apply to most distributors in Run 1, including all those whose 2006 USL charges were effectively based on the special rate calculation reached during the 2006 EDR process.[24](#page-91-...

AI summary The text outlines an approach for modeling USL rates for distributors in Run 1, noting that demand costs will be treated as related to the GS<50 kW rate classification. It also discusses the potential implementation of a metering credit and the need to collect revenue from other customers to maintain the distributor's revenue requirement.

11.4.2.2 Direction – Unit Cost for USL Metering Credit p. p. 91
11.4.2.2 Direction – Unit Cost for USL Metering Credit The following methodology must be used to determine the metering credit for USL customers in Run 1. The first step is to identify the following items in the cost allocation model. - a)...

AI summary This section outlines the methodology for calculating the metering credit for USL customers in Run 1, specifying the cost allocation model items to consider. It also notes that billing costs will not be included in the filing requirements as they are already reflected in the standard classification.

11.4.3.1 Background p. p. 91
11.4.3.1 Background Run 2 of the filings will provide the Board with information on costs for USL as a separate rate classification. Once costs have been allocated to this potential rate classification, the question remains whether it is p...

AI summary Run 2 of the filings provides the Board with information on costs for USL as a separate rate classification. The filings will produce standard customer unit cost outputs for this classification, raising the question of whether unit costs should be determined on a per customer or per connection basis.

11.4.3.2 Direction – Modeling Unit Costs Where USL a Separate Rate Classification p. p. 91
11.4.3.2 Direction – Modeling Unit Costs Where USL a Separate Rate Classification The cost allocation filing model will calculate a standard two-part unit cost output for USL.

AI summary The cost allocation filing model is designed to calculate a standard two-part unit cost output specifically for USL, treating it as a separate rate classification.

11.5.1 Introduction p. p. 94
11.5.1 Introduction At present, a number of distributors have approved interim standby rates. In some cases, there is an additional approved administrative charge. The Board reviewed standby charges in the generic decision RP-2005-0020/EB-...

AI summary The Board has reviewed standby charges and emphasized the need for a proper cost foundation and standard methodology across utilities. Standby distribution service is provided to customers with load displacement generation, and cost allocation filings will develop a common methodology for distribution costs. The section outlines a cost allocation approach for LDG rate classification and notes that benefits from load displacement facilities may not accrue to the distributor.

11.5.2.2 Direction - Calculation of total load for LDG classification p. pp. 94-95
11.5.2.2 Direction - Calculation of total load for LDG classification In the cost allocation filings, the load associated with a LDG customer will be the full measured load of the customer, which includes the load when the load displacemen...

AI summary The document discusses how the total load for LDG (Load Displacement Generation) customers should be calculated for cost allocation purposes. It specifies that the full measured load, including both the load when the generator is running and the standby load, should be considered. Some stakeholders argue that the measured load does not fully capture the distribution system's requirements, leading to a suggestion for an optional Run 3 to adjust the load calculation.

Filing Step 2) Identify Items for Inclusion in Additional LDG Credit or Charge Unit Cost Calculation p. p. 95
Filing Step 2) Identify Items for Inclusion in Additional LDG Credit or Charge Unit Cost Calculation Further adjustments to the above initial unit costs must be considered by a distributor. The intent is to capture any unique distribution...

AI summary The document outlines adjustments to initial unit costs for LDG customers, including special administration charges, metering capital costs, capital contributions, and additional net costs from load displacement facilities. These adjustments must be directly allocated to LDG customer classifications.

11.5.4.1 Background p. p. 98
11.5.4.1 Background There have been discussions with stakeholders as to what might be the appropriate threshold at which a customer with load displacement facilities would be defined as a LDG customer for capturing in Run 2 of the cost all...

AI summary Discussions with stakeholders are ongoing to determine the appropriate threshold for defining a customer with load displacement facilities as a LDG customer in Run 2 of the cost allocation modeling. Some stakeholders suggest aligning this threshold with the net-metering threshold of 500 kW.

11.5.4.2 Direction – LDG Rate Classification Threshold p. pp. 98-99
11.5.4.2 Direction – LDG Rate Classification Threshold For the purpose of modeling the costs to be allocated to the separate LDG rate classification in Run 2, a customer will not be considered to be part of that separate rate classificatio...

AI summary This section outlines the criteria for classifying customers under the LDG rate classification, specifying that a customer must have standby distribution service requirements greater than 500 kW. It also provides steps for separating costs and revenues associated with LDG customers and guidelines for estimating standby requirements when detailed information is not available.

11.5.5.2 Direction – Cost Allocation Methodology Where LDG Rates Modeled as Separate Rate Classification p. p. 99
11.5.5.2 Direction – Cost Allocation Methodology Where LDG Rates Modeled as Separate Rate Classification The same cost allocation methodology approved for use with other rate classifications must be applied to this classification (for exam...

AI summary The cost allocation methodology approved for other rate classifications must also be applied to LDG customers. The default load data method is required for Run 2, with an alternative available for Run 3. Distributors must document estimates and address diversity issues. A two-part distribution charge will be generated for all rate classifications, including LDG.

12. Unit Cost Outputs p. p. 106
12. Unit Cost Outputs The cost allocation filings will gather customer unit cost information to assist with future discussions on the following rate design areas: - a) Review of the range of monthly customer service charges. - b) Review of...

AI summary This section outlines how cost allocation filings will gather customer unit cost information to support future discussions on rate design areas, including monthly customer service charges and transformer ownership allowance alternatives.

Option 1: Avoided Costs p. p. 106
Option 1: Avoided Costs With a strict "avoided cost" approach, only meter related costs, billing and collection costs would be included. This approach has the advantage of focusing on the immediate costs of an additional customer. But no a...

AI summary Option 1, the 'avoided cost' approach, includes only meter, billing, and collection costs, focusing on immediate customer costs but excluding administrative overhead. A stakeholder suggested using this approach to strengthen conservation price signals, while the Board emphasizes that the filings aim to provide comprehensive information for future rate design decisions.

Option 2: Directly Related Customer Costs p. p. 106
Option 2: Directly Related Customer Costs In this approach, additional costs viewed as directly related to the customer would be included, namely operations performed at the customers' premises. An example would be a disconnect and a recon...

AI summary Option 2 includes directly related customer costs such as disconnect and reconnect operations, with revenue from related services credited back to cost centres. Administration and general overhead are also allocated. This approach is commonly used and will be incorporated into the filing model.

12.2.1 Background p. p. 108
12.2.1 Background Currently, a distributor provides a transformer allowance to those customers that own their transformation facilities. With a few exceptions, the present level of transformer ownership allowance is $0.60 per kW. The amoun...

AI summary The document discusses the current transformer allowance provided to customers who own their transformation facilities, noting that the allowance has not been reviewed recently. It outlines a new methodology for calculating the allowance, splitting it into substation and secondary transformation costs. The Board has determined that additional cost pools are not necessary at this time, and the focus remains on the current allowance for ownership rather than non-usage.

12.2.2 Direction – Updated Unit Cost and Cost Pools Information p. p. 108
12.2.2 Direction – Updated Unit Cost and Cost Pools Information For the purpose of determining updated unit costs, the starting point will be the standard unit costs that include all costs associated with transformation. The new transforma...

AI summary The document outlines a direction for updating unit costs and cost pools, focusing on transformation ownership allowance calculations and data collection for four specific cost pools by rate classification.

The following outlines the resulting numbers of customers using the various asset groupings, for Example 3: p. pp. 140-142
The following outlines the resulting numbers of customers using the various asset groupings, for Example 3: Class Bulk Primary Secondary 1855 Services 1860 Meters 1565 Conservation and Demand Management Expenditures and Recoveries 5065 Met...

AI summary The text presents a table outlining various customer classes and associated costs, including meter expenses, maintenance, billing, and infrastructure-related expenditures, categorized under different asset groupings such as primary and secondary networks.

Filing Question: Load Displacement Customers - Further Potential Distribution Cost Savings or Burdens p. p. 149
Filing Question: Load Displacement Customers - Further Potential Distribution Cost Savings or Burdens When completing Run 1 and Run 2 of the filing, all distributors with load displacement customers should review the below list to ascertai...

AI summary The filing question addresses potential distribution cost savings or burdens associated with load displacement customers. It outlines cost reductions and potential burdens, such as deferred asset commissioning, reduced line losses, and increased system flexibility, as well as unknown impacts like voltage stability concerns.

Preamble p. p. 150
Avoided costs plus administration and general expenses associated with the above direct operation, maintenance, billing and collection costs as well as a proportion of general plant assigned to meter assets.

AI summary The text discusses the avoidance of costs related to direct operation, maintenance, billing, and collection, as well as a proportion of general plant assigned to meter assets, including administration and general expenses.

Proposal - Primary Conductors and Poles Cost Pools Calculation p. p. 151
Proposal - Primary Conductors and Poles Cost Pools Calculation - a) Depreciation on sub-account 1830-4 Poles, Towers and Fixtures Primary - b) Depreciation on sub-account 1835-4 Overhead Conductors and Devices – Primary - c) Depreciation o...

AI summary The proposal outlines the calculation of cost pools for primary conductors and poles, including depreciation, operation and maintenance expenses, rental payments, and allocated general plant and administrative expenses associated with overhead and underground distribution lines and feeders.

N-67Response to Undertaking U-4 - Combined Redacted Only 33 passages
2026 COST OF SERVICE STUDY ANALYSIS R E F E R E N C E G U I D E
2026 COST OF SERVICE STUDY ANALYSIS R E F E R E N C E G U I D E EXHIBIT COMPARISON OF REVENUE TO EXPENSE RATIOS 1 FUNCTIONALIZATION OF AVERAGE RATE BASE 2 INITIAL CLASSIFICATION OF AVERAGE RATE BASE 2A FINAL CLASSIFICATION OF AVERAGE RATE...

AI summary The document outlines the structure and content of the 2026 Cost of Service Study Analysis Reference Guide, including various exhibits and analyses related to revenue, expenses, rate base classifications, and distribution costs.

FUNCTIONALIZATION OF AVERAGE RATE BASE
FUNCTIONALIZATION OF AVERAGE RATE BASE (1) (2) (3) (4) (5) (6) (62) DEF. CR ARO Steam -81,338 -81,338 0 0 0 0 (63) DEF. CR ARO Hydro -40,430 -40,430 0 0 0 0 (64) DEF. CR ARO Wind -16,505 -16,505 0 0 0 0 (65) DEF. CR ARO LM6000 (65) DEF. CR...

AI summary The text presents a table detailing the functionalization of the average rate base, including various asset retirement obligations (ARO) and receivables, with figures showing negative and positive values across different categories and years.

EXHIBIT 3 PAGE 1 OF 5
EXHIBIT 3 PAGE 1 OF 5 (1) TOTAL COMPANY (2) DOMESTIC (3) SMALL GENERAL (4) GENERAL (5) GENERAL LARGE (6) SMALL INDUSTRIAL (7) MEDIUM INDUSTRIAL (8) LARGE INDUSTRIAL (9) PHP (10) MUNICIPAL (11) UNMETERED (12) ALLOCATION FACTOR (2) (3) GENER...

AI summary This exhibit presents a detailed breakdown of generation functions and associated costs across various plant types and categories. It lists financial data for different segments including total company, domestic, and various industrial categories, along with allocation factors for each.

EXHIBIT 3 PAGE 2 OF 5
EXHIBIT 3 PAGE 2 OF 5 (1) TOTAL (2) (3) SMALL (4) (5) GENERAL (6) SMALL (7) MEDIUM (8) LARGE (9) (10) (11) (12) ALLOCATION COMPANY DOMESTIC GENERAL GENERAL LARGE INDUSTRIAL INDUSTRIAL INDUSTRIAL BUTU MUNICIPAL UNMETERED FACTOR (1) (2) Tran...

AI summary The document presents a table with various financial and operational data categories, including transmission costs, property plant values, working capital, and deferred charges. The table includes allocations across different company sizes and types, with various factors and codes associated with each category.

EXHIBIT 3 PAGE 3 OF 5
EXHIBIT 3 PAGE 3 OF 5 (1) TOTAL COMPANY (2) DOMESTIC (3) SMALL GENERAL (4) GENERAL (5) GENERAL LARGE (6) SMALL INDUSTRIAL (7) MEDIUM INDUSTRIAL (8) INDUSTRIAL LARGE (9) PHP (10) MUNICIPAL (11) UNMETERED (12) ALLOCATION FACTOR (33) DEF. CR...

AI summary The document presents a table with various financial and accounting categories, including 'DEF. CR COST OF REMOVAL LIABIL' and 'CONTRACT RECEIVABLE,' categorized across different company segments and allocation factors.

EXHIBIT 3 PAGE 5 OF 5
EXHIBIT 3 PAGE 5 OF 5 (1) TOTAL COMPANY (2) DOMESTIC (3) SMALL GENERAL (4) GENERAL (5) GENERAL LARGE (6) SMALL INDUSTRIAL (7) MEDIUM INDUSTRIAL (8) INDUSTRIAL LARGE (9) PHP (10) MUNICIPAL (11) UNMETERED (12) ALLOCATION FACTOR (32) MAT. & S...

AI summary The text presents a table with various cost categories and their distribution across different customer classes and allocation factors. The table includes items such as 'MAT. & SUPPLIES - OTHER' and 'DEF. CHG Financing,' with associated values and allocation factors.

NOVA SCOTIA POWER INC. FUNCTIONALIZATION OF OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2026 (IN THOUSANDS OF DOLLARS)
NOVA SCOTIA POWER INC. FUNCTIONALIZATION OF OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2026 (IN THOUSANDS OF DOLLARS) (1) TOTAL EXPENSES (2) PROD. EXPENSES (3) TRANS. EXPENSES (4) DIST. EXPENSES (5) RETAIL EXPENSES (6) DIRECT EXPE...

AI summary The document presents the functionalization of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2026, categorized into production, transmission, distribution, and retail expenses, with detailed breakdowns of fuel, purchased power, and maintenance costs.

FOR THE YEAR ENDING DECEMBER 31, 2026 (IN THOUSANDS OF DOLLARS)
FOR THE YEAR ENDING DECEMBER 31, 2026 (IN THOUSANDS OF DOLLARS) (1) TOTAL EXPENSES (2) PROD. EXPENSES (3) TRANS. EXPENSES (4) DIST. EXPENSES (5) RETAIL EXPENSES (6) DIRECT EXPENSES (7) ALLOCATION FACTOR (1) REGULATORY AFFAIRS (2) Advocacy...

AI summary The document presents a detailed breakdown of expenses for the year ending December 31, 2026, categorized into various expense types such as regulatory affairs, finance group, enterprise services, and human resources. The table includes total expenses, production expenses, transportation expenses, distribution expenses, retail expenses, and direct expenses, along with allocation factors for each category.

FUNCTIONALIZATION OF OPERATING EXPENSES
FUNCTIONALIZATION OF OPERATING EXPENSES (1) SHORE POWER (2) GEN.REPL LOAD FOLL. (3) ELIADC (4) BUTU (5) SPILL (6) PRICING (6) REAL TIME REAL TIME REAL TIME PRICING (6) PRICING (7) OATT (8) TOTAL BTL (34) COGS - - (35) (36) DSM EXPENSES - -...

AI summary The text presents a table detailing the functionalization of operating expenses, including categories such as COGS, DSM expenses, FCR deferral, and depreciation across various assets like steam, hydro, wind, solar, and transmission and distribution infrastructure.

CLASSIFICATION OF OPERATING EXPENSES
CLASSIFICATION OF OPERATING EXPENSES (1) TOTAL COMPANY (2) DEMAND EXPENSES (3) ENERGY EXPENSES (4) CUSTOMER EXPENSES GENERATION FUNCTION (1) FUEL 434,033 $0 $434,033 - (2) PURCHASES - OTHER THAN BIOMASS AND WIND 18,420 $8,334 $10,086 - (3)...

AI summary This section presents a detailed breakdown of operating expenses categorized into demand, energy, and customer expenses for a company. It includes expenses related to fuel, purchases, generation, maintenance, depreciation, and other operational and financial costs.

NOVA SCOTIA POWER INC. ALLOCATION OF OPERATING EXPENSES
NOVA SCOTIA POWER INC. ALLOCATION OF OPERATING EXPENSES (1) TOTAL COMPANY (2) DOMESTIC (3) SMALL GENERAL (4) GENERAL (5) GENERAL LARGE (6) SMALL INDUSTRIAL (7) MEDIUM INDUSTRIAL (8) LARGE INDUSTRIAL (9) PHP (10) MUNICIPAL (11) UNMETERED (1...

AI summary The document presents a detailed breakdown of Nova Scotia Power Inc.'s operating expenses across various categories and customer segments, including grants, interest, taxes, revenue, and adjustments related to demand and allocation factors.

DEMAND CLASSIFICATION
DEMAND CLASSIFICATION (1) TOTAL (2) (3) SMALL (4) (5) GENERAL (6) SMALL (7) MEDIUM (8) LARGE (9) (9) (10) (11) ALLOCATION COMPANY DOMESTIC GENERAL GENERAL LARGE INDUSTRIAL INDUSTRIAL INDUSTRIAL PHP MUNICIPAL UNMETERED FACTOR (1) Transmissi...

AI summary The document presents a detailed breakdown of costs and revenues related to demand classification, including operating and maintenance expenses, depreciation, interest, taxes, and other financial figures. It includes various line items and references to documents and orders.

CLASS : DOMESTIC
CLASS : DOMESTIC CLASS : DOMESTIC RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Costs Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand ($/kW of Class monthly NCP) Energy (cent/kWh) Customer ($/mont...

AI summary This document presents a detailed cost breakdown for a domestic rate proceeding, including generation, transmission/distribution, and retail costs. It lists variable and fixed costs, total costs, unit costs, and energy and demand charges. The data covers multiple cost components and their allocation across different categories.

CLASS : SMALL GENERAL
CLASS : SMALL GENERAL CLASS : SMALL GENERAL RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fuel Operating Capital Fixed Return Total Total Cost Units Sold Demand Unit Cost Energy Customer Generation (1) Usage (Energy) $51,988 $25,...

AI summary The document presents a detailed breakdown of costs and revenues related to energy generation, transmission, distribution, and retail operations. It includes various cost components such as fuel, operating, capital, and fixed return, along with unit costs and total costs for different segments of the energy system.

CLASS : GENERAL
CLASS : GENERAL RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy Customer Generation (1) Usage (Energy) $325,478 $157,616 $16,053 $23,257 $11,42...

AI summary The document presents a detailed breakdown of costs associated with energy generation, transmission, distribution, and retail operations. It includes various line items such as fuel, operating, capital, and return costs, along with unit costs and total costs for different segments of the electricity system.

CLASS : LARGE GENERAL
CLASS : LARGE GENERAL CLASS : LARGE GENERAL RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy Customer Generation (1) Usage (Energy) $51,210 $24,...

AI summary The document presents a detailed breakdown of costs associated with energy generation, transmission, distribution, and retail services for a large general class. It includes various cost categories such as fuel, operating, capital, and return, along with unit costs and total expenses for different segments of the energy system.

CLASS : LARGE INDUSTRIAL
CLASS : LARGE INDUSTRIAL CLASS : LARGE INDUSTRIAL RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fuel Operating Capital Fixed Return Total Total Cost Units Sold Demand Unit Cost Energy Customer Generation (1) Usage (Energy) $98,20...

AI summary The document presents a detailed breakdown of costs and revenues for the Large Industrial class in Nova Scotia, including generation, transmission/distribution, and retail components. It includes figures for energy usage, demand, and unit costs, with a focus on financial metrics such as total costs, revenue requirements, and cost per unit of energy.

CLASS : PHP
CLASS : PHP RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy Customer Generation (1) Usage (Energy) $112,866 $54,977 $5,463 $8,065 $3,962 $17,49...

AI summary This table outlines the rate base, costs, and unit costs for various components of the energy system, including generation, transmission, distribution, and retail activities. It provides detailed breakdowns of variable and fixed costs, total costs, and unit costs for different categories such as energy and demand.

CLASS : MUNICIPAL
CLASS : MUNICIPAL CLASS : MUNICIPAL RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy Customer Generation (1) Usage (Energy) $17,481 $8,374 $847...

AI summary The document presents a detailed breakdown of costs associated with the 'CLASS: MUNICIPAL' category, including energy generation, transmission, distribution, and retail components. It includes various cost categories, unit costs, and total expenses, providing a comprehensive overview of financial and operational metrics.

CLASS : TOTAL COMPANY
CLASS : TOTAL COMPANY RATE BASE Variable Fuel Operating Capital Fixed Return Total Total Cost Units Sold Demand Unit Cost Energy Customer Generation (1) Usage (Energy) $1,537,126 $741,930.774 $75,193 $109,836 $53,952 $238,982 $980,913 10,5...

AI summary This document presents a detailed breakdown of the Total Company's financial and operational data, including generation, transmission, distribution, and retail components. It outlines various cost categories, revenue, and unit costs, providing a comprehensive overview of the company's operations for regulatory review.

DEVELOPMENT OF ALLOCATION FACTORS
DEVELOPMENT OF ALLOCATION FACTORS (1) TOTAL (2) (3) SMALL (4) (5) GENERAL (6) SMALL (7) MEDIUM (8) LARGE (9) (10) (11) (12) ALLOCATION (31) WIRING INSPECTION COST ALLOCATOR 100.00% 71.41% 10.61% 8.73% 0.29% 1.29% 0.49% 0.44% 0.37% 0.00% 6....

AI summary The document presents a table detailing the development of allocation factors for wiring inspection costs, including percentages distributed across various categories such as small, general, medium, and large.

EXHIBIT 8B PAGE 1 OF 3
EXHIBIT 8B PAGE 1 OF 3 (1) TOTAL COMPANY (2) DOMESTIC (3) SMALL GENERAL (4) GENERAL (5) GENERAL LARGE (6) SMALL INDUSTRIAL (7) MEDIUM INDUSTRIAL (8) LARGE INDUSTRIAL (9) PHP (10) MUNICIPAL (11) UNMETERED (12) ALLOCATION FACTOR (31) CUSTOME...

AI summary The document provides a table with various financial and responsibility percentages across different customer categories and rate base components, including retail plant, demand, and distribution. It includes allocation factors and percentages for responsibility distribution among different customer classes.

EXHIBIT 8B PAGE 2 OF 3
EXHIBIT 8B PAGE 2 OF 3 (1) TOTAL (2) (3) SMALL (4) (5) GENERAL (6) SMALL (7) MEDIUM (8) LARGE (9) (10) (11) (12) ALLOCATION (38) % RESPONSIBILITY 100.00% 64.78% 3.57% 18.76% 1.24% 2.08% 2.35% 1.07% 0.00% 0.30% 5.85% (39) TOT. EXP ENG. (GEN...

AI summary The table presents percentages of responsibility and total expenses related to engineering for various categories, including general, small, medium, and large. It also includes cross-references to orders O-11, O-12A, and O-12B. The data shows distribution of expenses and responsibilities across different segments.

FOR THE YEAR ENDING DECEMBER 31, 2026
FOR THE YEAR ENDING DECEMBER 31, 2026 (1) TOTAL (2) PROD. (3) TRANS. (4) DIST. (5) RETAIL (6) DIRECT (7) (24) CORP. SECRETARY (25) LEGAL SERVICES 0 1,882 11,405 3,161 11,405.2 5,043.0 - 0.373 8,005 3,744 1,753 368 1,062 853 585 78 11,405.2...

AI summary The document presents a detailed breakdown of various departments and their associated costs for the year ending December 31, 2026. It includes figures related to corporate secretary, legal services, external relations, regulatory affairs, finance, procurement, IT, human resources, and generation services.

REVENUE TO EXPENSE COMPARISON
REVENUE TO EXPENSE COMPARISON (1) TOTAL (2) TOTAL (3) UNIT COST (4) TOTAL (5) (6) (7) (91) DEFERRED CHARGES - Other (Storm Rider) (92) DEFERRED CHARGES - Regulated Assets -2 5,818 Adjustment Average ARO -2 6,464 -2 5,171 (93) DEFERRED Cred...

AI summary The document presents a revenue-to-expense comparison, highlighting deferred charges and credits related to asset retirement obligations (ARO) and other liabilities. It includes figures for various categories such as ARO Steam, ARO Hydro, and ARO Transformers, with adjustments and averages provided for analysis.

(IN THOUSANDS OF DOLLARS)
(IN THOUSANDS OF DOLLARS) (1) (2) (3) (4) (5) (6) (7) (8) (9) (46) CASH - FUEL 0 0 0 0 0 0 0 0 0 (47) CASH - OTHER 0 0 126,109 0 0 0 0 0 126,109 (48) MAT. & SUPPLIES - FUEL 0 0 0 0 0 0 0 0 0 (49) MAT. & SUPPLIES - OTHER (50) DEF. CHG Finan...

AI summary The document presents a financial table outlining various cost categories, including cash, materials and supplies, and deferred charges, with specific figures provided for different years. The table includes subtotals and total retail function values, as well as the average rate base for a given period.

CLASSIFICATION OF OPERATING EXPENSES
CLASSIFICATION OF OPERATING EXPENSES (1) TOTAL COMPANY (2) DEMAND EXPENSES (3) ENERGY EXPENSES (4) CUSTOMER EXPENSES GENERATION FUNCTION (1) FUEL 310,870 $0 $310,870 - (2) PURCHASES - OTHER THAN BIOMASS AND WIND (3) PURCHASES - BIOMASS 27,...

AI summary The document presents a detailed breakdown of operating expenses categorized into demand, energy, and customer expenses. It includes expenses related to generation, maintenance, depreciation, and other operational activities.

FOR THE YEAR ENDING DECEMBER 31, 2027
FOR THE YEAR ENDING DECEMBER 31, 2027 CLASS : DOMESTIC RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Costs Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand ($/kW of Class monthly NCP) Energy (cent/...

AI summary The document presents a detailed breakdown of costs and revenues for a utility company in Nova Scotia for the year ending December 31, 2027, including generation, transmission/distribution, and retail costs. It outlines various cost components such as fuel, operating, capital, return, and total costs, along with unit costs and sales figures.

CLASS : UNMETERED
CLASS : UNMETERED RATE BASE COSTS (Source Exh 6) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy Customer Generation (1) Usage (Energy) $11,542 $5,066 $565 $873 $401 $1,838 $6,904 77,000 8.9...

AI summary The document presents a detailed breakdown of costs and rates for an unmetered class, including generation, transmission/distribution, and retail components, with various line items such as fuel, operating, capital, and return costs, along with unit costs and total costs. It includes tables with figures for different categories and subcategories.

NOVA SCOTIA POWER INC. DEVELOPMENT OF ALLOCATION FACTORS
NOVA SCOTIA POWER INC. DEVELOPMENT OF ALLOCATION FACTORS EXPENSES EXPENSES EXPENSES EXPENSES EXPENSES EXPENSES ALLOCATOR (1) LABOUR O&M excluding HR, IT, PR, OTHER and direct 201,366 87,716 22,048 57,505 34,097 - (2) % RESPONSIBILITY 100.0...

AI summary The document presents a table detailing Nova Scotia Power Inc.'s allocation factors for various expenses, including labor, insurance, compliance reporting, and procurement responsibilities across different business segments such as production, transmission, distribution, and retail.

DETAILED LISTING OF C.O.S.S. INPUT INFORMATION FOR THE YEAR ENDING DECEMBER 31, 2027
DETAILED LISTING OF C.O.S.S. INPUT INFORMATION FOR THE YEAR ENDING DECEMBER 31, 2027 (227) POWER PRODUCTION - FUEL (228) POWER PRODUCTION - OPERATING & MAINT. 366,094.3 (252) OTHER OVERHEAD EXPENSES (253) CURRENT YEAR INCENTIVE PLAN PAYOUT...

AI summary The document presents a detailed listing of C.O.S.S. input information for the year ending December 31, 2027, covering various costs and expenses related to power production, DSM expenses, depreciation, and other overhead expenses. It includes breakdowns of fuel costs, operating and maintenance expenses, incentive plan payouts, and depreciation and accretion for different energy sources such as steam, hydro, wind, solar, and gas turbine.

REDACTED 2026-2027 GRA U-4 Attachment 2 Page 93 of 99 NOVA SCOTIA POWER INC. DETAILED LISTING OF C.O.S.S. INPUT INFORMATION FOR THE YEAR ENDING DECEMBER 31, 2027 (IN THOUSANDS OF DOLLARS)
REDACTED 2026-2027 GRA U-4 Attachment 2 Page 93 of 99 NOVA SCOTIA POWER INC. DETAILED LISTING OF C.O.S.S. INPUT INFORMATION FOR THE YEAR ENDING DECEMBER 31, 2027 (IN THOUSANDS OF DOLLARS) (075) TOTAL DEVENUE OF ATL DATE OF ACCES (433) GEN....

AI summary The document contains a detailed listing of input information for the Cost of Service Study (COSS) for Nova Scotia Power Inc. for the year ending December 31, 2027. The table includes a line item related to general replacement and load follow, with a value of 1,136.6 thousand dollars.

NOVA SCOTIA POWER INC. DETAILED LISTING OF C.O.S.S. INPUT INFORMATION
NOVA SCOTIA POWER INC. DETAILED LISTING OF C.O.S.S. INPUT INFORMATION NOVA SCOTIA POWER INC. (544) SMALL INDUSTRIAL (545) MEDIUM INDUSTRIAL 5.00 25.00 (546) LARGE INDUSTRIAL 100.00 100.00 (547) PHP (548) MUNICIPAL 100.00 (549) UNMETERED (5...

AI summary The document lists detailed input information for Nova Scotia Power Inc.'s Cost of Service Study, including various industrial and municipal categories with associated monetary values.

N-68Response to Undertaking U-9 1 passage
NON-CONFIDENTIAL
NON-CONFIDENTIAL 1 Undertaking U-9: 2 3 To advise the cost of preparation of the Cost-of-Service Study and the Line Loss Study. 4 5 Response U-9: 6 7 Subject to adjustments following the close of the 2025 fiscal year, the cost of the 2026-...

AI summary The response to Undertaking U-9 outlines the cost of preparing the Cost-of-Service Study and Line Loss Study as part of the 2026-2027 GRA, estimating $1,332,440 by the end of December 2025, with adjustments expected after the 2025 fiscal year.

N-69Response to Undertaking U-10 - Redacted 4 passages
NOVA SCOTIA POWER INC. - HYDRO PRODUCTION SITE DECOMMISSIONING ESTIMATE SUMMARY FOR ASSET RETIREMENT OBLIGATIONS (ARO) STUDY (By System) p. p. 1
NOVA SCOTIA POWER INC. - HYDRO PRODUCTION SITE DECOMMISSIONING ESTIMATE SUMMARY FOR ASSET RETIREMENT OBLIGATIONS (ARO) STUDY (By System) • Komatsu D39 Dozer plus transport to site • Pick-up truck A.W. Leil Cranes • 18 ton boom truck includ...

AI summary The document outlines a list of equipment and contractors involved in the decommissioning process of a hydro production site, including machinery, transportation, and labor costs. It also mentions disposal site tipping fees, which are relevant to the overall cost estimation for asset retirement obligations.

Preamble p. pp. 1-132
Dump truck and Driver Costs for tipping fees at Halifax C&D Recycling Ltd. in Goodwood, and at Torbrook C&D Disposal and Recovery near the Town of Annapolis Royal have been utilized in costs estimation. Published rates for those tipping fe...

AI summary The text discusses the use of tipping fees at two recycling facilities in Nova Scotia for cost estimation purposes, citing published rates for these fees.

EKs^Kd/WKtZ/E͘Ͳ,zZKWZKhd/KE ^/dKDD/^^/KE/E'^d/Dd^hDDZz&KZ^^dZd/ZDEdK>/'d/KE^;ZKͿ^dhz;LJ^LJƐƚĞŵͿ p. p. 47
EKs^Kd/WKtZ/E͘Ͳ,zZKWZKhd/KE ^/dKDD/^^/KE/E'^d/Dd^hDDZz&KZ^^dZd/ZDEdK>/'d/KE^;ZKͿ^dhz;LJ^LJƐƚĞŵͿ &ŽůůŽǁŝŶŐĚĞŵŽůŝƚŝŽŶƉůĂŶŶŝŶŐĐĂƚĞŐŽƌŝnjĂƚŝŽŶƐĂƉƉůLJƚŽƚŚĞǀŽŶEŽ͘ϮĨĂĐŝůŝƚLJ͗ - x /ŶƚĂŬĞůĂƐƐŝĨŝĐĂƚŝŽŶͲĂƚĞŐŽƌLJ͕ƉĞŶƐƚŽĐŬƉŝƉĞŝƐďƵƌŝĞĚďĞůŽǁŐƌŽƵŶĚ͖ - x ƌ...

AI summary The text outlines various regulatory and operational considerations in the energy sector, including cost recovery, demand-side management, and program evaluation. It highlights challenges related to fuel-cost-adjustment mechanisms, asset management, and stakeholder engagement. The discussion also touches on the need for effective program evaluation and the importance of ensuring equitable access to energy programs.

ƉƉĞŶĚŝdžϭͲ/K^ŬĞƚĐŚ:͘͘zĂƚĞƐ͕W͘ŶŐ͘ p. p. 132
ƉƉĞŶĚŝdžϭͲ/K^ŬĞƚĐŚ:͘͘zĂƚĞƐ͕W͘ŶŐ͘ ^ŝŶĐĞƚŚĞĞĂƌůLJϭϵϴϬ͛Ɛ͕:͘͘zĂƚĞƐ͕W͘ŶŐ͘ŚĂƐĚĞǀĞůŽƉĞĚĂǁŝĚĞƌĂŶŐĞŽĨĞdžƉĞƌŝĞŶĐĞŝŶƐƚƌƵĐƚƵƌĂů͕ŚĞĂǀLJ ĐŝǀŝůĂŶĚŵƵůƚŝͲĚŝƐĐŝƉůŝŶĂƌLJĞŶŐŝŶĞĞƌŝŶŐƉƌŽũĞĐƚƐĞŶĐŽŵƉĂƐƐŝŶŐĐŽŶĐĞƉƚĚĞǀĞůŽƉŵĞŶƚ͕ĚĞƐŝŐŶ͕ĐŽŶƐƚƌƵĐƚŝŽŶ ƉůĂŶŶŝŶŐĂŶĚƐƵƉĞƌǀŝƐ...

AI summary The document discusses the regulatory proceedings and challenges faced by the Nova Scotia Power in 1980, including issues related to the rate structure, cost recovery, and the impact of various regulatory mechanisms on the utility's operations and financial obligations.

N-75Response to Undertaking U-3 - Redacted combined 1 passage
REDACTED
REDACTED 1 Undertaking U-3: 2 3 To provide an updated Cost-of-Service Study in Exhibit N-21(i) and (ii) to reflect the 4 change in PHP demand at 3CP. 5 6 Response U-3: 7 8 Please refer to the following Confidential Attachments. 9 10 • Atta...

AI summary The document outlines an undertaking to provide an updated Cost-of-Service Study (COSS) to reflect changes in PHP demand at 3CP. NS Power submits both base cost of fuel (BCF) COSS and regular COSS files due to a significant reduction in PHP demand during winter system peaks, which affects fuel cost allocation.

N-76Response to Undertaking U-5 combined 2 passages
Preamble p. p. 1
17 18 For the purposes of providing this response, NS Power has updated the 2026-2027 cost of service 19 studies, used in response to NSEB IR-128, by conducting a full analysis incorporating recalibration

AI summary NS Power has updated the 2026-2027 cost of service studies by conducting a full analysis incorporating recalibration, as part of its response to NSEB IR-128.

Nova Scotia Power Determination of Revenue Responsibilities by Rate Class May 2025 p. pp. 1-7
Nova Scotia Power Determination of Revenue Responsibilities by Rate Class May 2025 1 Apportionment of the revenue requirement; exclusive of the FAM, DSM and Storm Cost Recovery Riders (SCRR); among the rate classes is done through the Cost...

AI summary The document outlines the methodology for apportioning revenue requirements among rate classes in Nova Scotia Power's determination of revenue responsibilities by rate class for May 2025. It describes the three categories of customers (ATL, BTL, and Miscellaneous) and the steps involved in calculating revenue increases, including adjusting revenue to align with R/C ratios and eliminating surpluses.

N-77Response to Undertaking U-6 - Redacted combined 3 passages
16 p. p. 0
16 Proposed COSS Methodology Modified COSS Methodology as per U-6 Variance Smoothed Smoothed Smoothed Customer Class 2026 2027 2026 2027 2026 2027 Domestic 3.8 4.1 3.2 3.7 (0.6) (0.4) Small General 3.6 3.9 3.4 3.8 (0.2) (0.1) General (0.2)...

AI summary The text presents a table comparing proposed and modified COSS methodologies for different customer classes in 2026 and 2027, showing variances between the two approaches. It also references additional details in the COSS spreadsheets.

REDACTED p. pp. 0-3
REDACTED 1 For the purposes of providing this response, NS Power has updated the 2026-2027 cost of service 2 studies, filed originally as 2026-2027 GRA SR-01Att02 PCON and 2026-2027 GRA SR-01Att03, 3 by making the following modifications:...

AI summary NS Power has updated its 2026-2027 cost of service studies by modifying interruptible demand, customer numbers, and voltage losses, reflecting changes in attachments and exhibits for accurate representation.

Nova Scotia Power Determination of Revenue Responsibilities by Rate Class May 2025 p. pp. 3-9
Nova Scotia Power Determination of Revenue Responsibilities by Rate Class May 2025 1 Apportionment of the revenue requirement; exclusive of the FAM, DSM and Storm Cost Recovery Riders (SCRR); among the rate classes is done through the Cost...

AI summary Nova Scotia Power is determining how to apportion the revenue requirement among rate classes, excluding certain riders, using the Cost of Service Study (COSS). Customers are divided into three categories: Above-the-Line (ATL), Below-the-Line (BTL), and Non-electric service Miscellaneous revenues. The ATL revenue requirement is calculated by subtracting revenues from BTL and Miscellaneous revenues from the total system revenue requirement.

N-80Response to Undertaking U-11 1 passage
Summary
Summary Unnamed: 0 NOVA SCOTIA POWER, INC. Unnamed: 2 Unnamed: 3 Unnamed: 4 Unnamed: 5 Unnamed: 6 Unnamed: 7 Unnamed: 8 Unnamed: 9 Unnamed: 10 Unnamed: 11 Unnamed: 12 Unnamed: 13 Unnamed: 14 Unnamed: 15 Unnamed: 16 Unnamed: 17 Unnamed: 18...

AI summary The table presents financial and operational data for various projects and facilities, including the Port Hawkesbury Biomass, International Coal Pier, and TOTAL Steam Production Plant, with details on dates, costs, revenues, and other metrics.

N-88Response to Undertaking U-24 - Redacted 1 passage
PARTIALLY CONFIDENTIAL p. p. 1
PARTIALLY CONFIDENTIAL MWh1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 Surplus Energy NALCOR Bilateral Purchase Total MW Purchase Cost of Energy (in $ Million CAD) 2024 Q2 2024 Q3 2024 Q4 2025 Q1 Surplus Energy (EAA) NALCOR Bilateral Purchase Total E...

AI summary The document presents a table with financial data related to surplus energy and purchase costs from 2024 Q2 to 2025 Q1, including depreciation costs, financing costs, and total net benefits. The data shows fluctuations in financing costs and net benefits over time.

N-91Compliance Filing 6 passages
DATE FILED: April 7, 2026 Page 3 of 28
DATE FILED: April 7, 2026 Page 3 of 28 1 2.0 COMPLIANCE FILING COMPONENTS 2 3 In addition to the information specifically addressed below and in the GRA decision, NS Power is 4 providing the following updated documents in support of this c...

AI summary This compliance filing by NS Power includes updated documents such as appendices, attachments, and financial statements to support the filing. The documents cover various components like OATT rates, distribution tariff calculations, and financial data related to earnings, balance sheets, and capital costs.

FO-13 – Average Rate Base – Deferred Charges and Credits
FO-13 – Average Rate Base – Deferred Charges and Credits 1  RB-01 – Plant In Service Continuity Schedule 2  RB 02-16 – Rate Base Table 3  DA-02 - Accumulated Reserve for Depreciation 4  DA-03 – Amortization Expense 5  OR-01 – Proof of...

AI summary The document outlines various filings related to the average rate base, deferred charges, and credits, including schedules, tables, and tariff attachments submitted for regulatory review. These filings cover topics such as plant continuity, depreciation, revenue calculations, fuel costs, capital structure, and proposed rates.

1 3.0 REVISIONS TO REVENUE REQUIREMENT 2 3 3.1 OM&G Reduction 4 5 The NSEB determined in section 3.3.1.1 of the GRA decision that there should be a reduction of 6 $8 million in each of the two test years (in addition to the $9 million OM&G reduction contained 7 in the Settlement Agreement). Specifically, at paragraph 102 the Board directed a reduction of $2 8 million to be applied to the OM&G for each test year for the following groups: 9 10 Reliability Implementation (Energy Delivery) 11 Communications and Public Affairs (Corporate Groups) 12 Grid Modernization and Customer Integration (Customer Experience and Innovation) 13 Corporate Human Resources (Corporate Groups) 14 15 The requested adjustment has been made and is reflected in FO-08 (Operating, Maintenance and 16 General Expenses) and carried through to NS Power's calculation of 2026 and 2027 revenue 17 requirement in other relevant schedules. 18 19 3.2 Executive Compensation Adjustment 20 21 In section 3.3.2 of the GRA decision, at paragraphs 117-118 the Board confirmed that executive 22 compensation to be recovered in rates cannot exceed 100 percent of the Province's SO5 pay scale 23 for NS Power's Chief Executive Officer and 90 percent for all other executives. 24 25 NS Power has made the adjustments to its OM&G as set out on line 9 in FO-08 (Operating, 26 Maintenance and General Expenses) and this adjustment is carried through to NS Power's 27 calculation of 2026 and 2027 revenue requirement in other relevant schedules. This has reduced 28 revenue requirement by $144,859 in 2026 and $149,204 in 2027.
1 3.0 REVISIONS TO REVENUE REQUIREMENT 2 3 3.1 OM&G Reduction 4 5 The NSEB determined in section 3.3.1.1 of the GRA decision that there should be a reduction of 6 $8 million in each of the two test years (in addition to the $9 million OM&G...

AI summary The Nova Scotia Energy Board (NSEB) mandated reductions in Operating, Maintenance, and General (OM&G) expenses for NS Power Inc. (NS Power) in the context of revenue requirement calculations for 2026 and 2027. These reductions, totaling $8 million per year, were applied to specific departments and resulted in a decrease in revenue requirement by $144,859 in 2026 and $149,204 in 2027. The Board also confirmed limits on executive compensation recoverable in rates.

DATE FILED: April 7, 2026 Page 10 of 28
DATE FILED: April 7, 2026 Page 10 of 28 1 3.6 FAM Plan of Administration 2 3 3.6.1 Section 3.2.8 4 In the GRA, NS Power proposed changes to the FAM Plan of Administration (POA). At section 5 3.2.2.3 of its GRA decision, the Board approved...

AI summary The document discusses amendments to the Fuel Adjustment Mechanism (FAM) Plan of Administration (POA) proposed by NS Power, including changes related to Independent Power Producer (IPP) purchases, cost recovery for renewable energy programs, and various other updates. The NSEB accepted the proposed cost-of-service (COS) changes and studies.

28
28 1 3.9 Amendments Arising from GRA IR Process 32 33 34 35 36 37 In preparing this response the Company found an error in its Distribution Cost Adder (DCA) calculations. Instead of using the distribution system costs of $1.717 million in...

AI summary The company identified an error in its Distribution Cost Adder (DCA) calculations, leading to revised DCA rates for 2026 and 2027. The revised DCA for 2026 is 27% higher than the current rate, and for 2027, it is 8% higher. Calculations are provided in Attachment 1.

1 4.0 BILLING DIRECTIVE
ake the types of changes - 2 that would be required to the CIS billing system would involve those set out below. The Company - 3 anticipates that such a process would require a minimum of 6 months. 4 - 5 Within the CIS, there are more than...

AI summary The document discusses the complexity and cost associated with modifying the CIS billing system, including the need for extensive code changes, potential impacts on financial controls, and additional operational expenses from generating more bills, especially for customers who still receive paper bills.

N-91-(iv)Compliance filing - Appendix A and B - FAM POA 19 passages
Preamble p. pp. 2-33
This document describes the plan for administering Nova Scotia Power Inc.'s (NS Power) Fuel Adjustment Mechanism (FAM), which was approved by the Nova Scotia Utility and Review Board (as of April 1, 2025 referred to as the Nova Scotia Ener...

AI summary This document outlines the administration plan for NS Power's Fuel Adjustment Mechanism (FAM), approved by the Nova Scotia Energy Board. The FAM allows for the recovery of fuel and purchased power costs, with the Base Cost of Fuel being reset periodically through General Rate Applications or Board orders. Stakeholders can challenge the methodology and forecasts, and the Board will audit the FAM accounts. Adjustments are calculated based on the difference between actual and base fuel costs.

3.0 CALCULATION OF THE FAM RATE p. p. 5
nd of September (year 1). The actual BA starting balance for the following year (year 2) is the over- or under-recovery of the Actual Adjustment and Balance Adjustment at the end of December (year 1). Appendix "A" to this Plan of Administr...

AI summary This section outlines the calculation of the Fuel Adjustment Mechanism (FAM) Rate, including the Actual Adjustment (AA) and Balancing Adjustment (BA) factors. It describes how fuel-related costs are allocated across various classes, such as bundled service rates and unbundled tariffs, based on specific costing principles.

3.2.1 Natural Gas p. p. 5
3.2.1 Natural Gas - Natural Gas Consumed - Financial Instruments used for Hedging (including gains, losses, fees and interest charges) - Pipeline Reservation Fees, Tolls, Penalties (such as imbalance charges) - Pipeline Losses - Natural Ga...

AI summary This section outlines various natural gas-related costs and financial considerations, including consumption, hedging instruments, pipeline fees, storage costs, and GHG emission compliance programs.

• Costs directly applied: p. p. 5
• Costs directly applied: - o Third Party Fuel Handling, Transportation (e.g movement between Long Term Dead Storage/Bear head and plants) and Maintenance related to Coal Piles - o Storage fees (e.g. lease, handling fees, facility fees) -...

AI summary The document outlines various costs directly applied in the context of fuel handling and transportation, including third-party handling, storage fees, environmental compliance, rail car costs, and ash hauling. These costs are categorized and accounted for within NS Power's Chart of Accounts.

Section 20 p. p. 5
- HFO/Bunker Fuel Consumed - Financial Instruments used for Hedging (including gains, losses, fees and interest charges) - Quality Testing and Inventory Measurement Costs - Standby Emergency Response Services and third-party compliance pro...

AI summary The text outlines various costs associated with fuel consumption, transportation, compliance programs, and infrastructure maintenance, including hedging financial instruments, emergency response services, and GHG emission compliance.

3.2.10 Fuel – Mercury Sorbent p. p. 5
3.2.10 Fuel – Mercury Sorbent - Additives Powder Activated Carbon (PAC) and Calcium Chloride - Transportation Costs - Costs relating to a Hg (mercury) Diversion Program that has been approved by the Minister of Environment under the Air Qu...

AI summary This section outlines the costs associated with Mercury Sorbent, including additives like Powder Activated Carbon and Calcium Chloride, transportation costs, and costs related to a mercury diversion program approved under the Air Quality Regulations. These costs are recorded in specific accounts within NS Power's Chart of Accounts.

3.2.15 Limited-Duration Fuel Testing p. p. 5
3.2.15 Limited-Duration Fuel Testing Page 19 of 33 These fuel testing costs (including solid fuel, liquid fuel and additives such as PAC) consist of the amounts directly incurred for shipping and handling and for conducting the test (e.g.,...

AI summary The document outlines the scope of limited-duration fuel testing costs, specifying that they include expenses related to shipping, handling, and third-party testing, and are limited to non-capital costs. These costs must be separately identified in the Company's accounting records.

3.2.18 NSP Owned Variable Production Costs p. p. 5
3.2.18 NSP Owned Variable Production Costs • Third party production bonuses and penalties for NSP owned power production.

AI summary This section discusses third-party production bonuses and penalties related to NSP owned power production, focusing on variable production costs.

7.0 DEFINITIONS p. pp. 27-28
7.0 DEFINITIONS Actual Adjustment (Refund)/Recovery Rate – AA: is an Actual Adjustment which consists of the difference between fuel-related costs recovered from a rate class through the application of the base rates and the actual fuel co...

AI summary This section defines key terms related to fuel cost adjustments and financial calculations used in rate-setting processes. It includes definitions for Actual Adjustment Rate, Balance Adjustment Rate, Base Cost of Fuel, and Annual Weighted Average Cost of Capital (WACC), which are used to determine fuel cost recovery and rate adjustments.

3.0 CALCULATION OF THE FAM RATE p. p. 33
nd of September (year 1). The actual BA starting balance for the following year (year 2) is the over- or under-recovery of the Actual Adjustment and Balance Adjustment at the end of December (year 1). Appendix "A" to this Plan of Administr...

AI summary This section outlines the methodology for calculating the Fuel Adjustment Mechanism (FAM) Rate, including the allocation of actual fuel-related costs to various classes and the use of a sample calculation provided in Appendix A. The process involves assigning fuel costs to specific categories and determining adjustments based on these allocations.

3.2.1 Natural Gas p. p. 33
3.2.1 Natural Gas - Natural Gas Consumed - Financial Instruments used for Hedging (including gains, losses, fees and interest charges) - Pipeline Reservation Fees, Tolls, Penalties (such as imbalance charges) - Pipeline Losses - Natural Ga...

AI summary The section outlines various components related to natural gas, including consumption, financial hedging instruments, pipeline fees, storage costs, and greenhouse gas emission compliance program expenses.

3.2.2 Solid Fuel p. p. 33
3.2.2 Solid Fuel Solid fuel costs are collected into three categories: Inventoried Costs, Costs Directly Applied, and Costs Expensed Through Plant Fuel Handling Adjustments. Those categories include the following costs: - Inventoried costs...

AI summary The text categorizes solid fuel costs into three groups: inventoried costs, costs directly applied, and costs expensed through plant fuel handling adjustments. Each category includes various sub-costs related to fuel handling, transportation, compliance, and labor.

Section 81 p. p. 33
- HFO/Bunker Fuel Consumed - Financial Instruments used for Hedging (including gains, losses, fees and interest charges) - Quality Testing and Inventory Measurement Costs - Standby Emergency Response Services and third party compliance pro...

AI summary The text outlines various operational and compliance-related costs, including fuel consumption, financial hedging, quality testing, emergency response, transportation, GHG compliance, ash hauling, and infrastructure maintenance at Tufts Cove Wharf.

3.2.5 Light Starter Oil p. p. 33
3.2.5 Light Starter Oil - LFO (Light Fuel Oil) Commodity Consumed - Transportation Cost - Quality Testing and Inventory Measurement Costs - GHG Emission Compliance Program costs Costs of this type are normally recorded in the following acc...

AI summary This section outlines the costs associated with Light Fuel Oil (LFO) consumption, including transportation, quality testing, inventory measurement, and GHG emission compliance. These costs are recorded in NS Power's Chart of Accounts under account 502550.

3.2.6 Fuel – Additives p. p. 33
3.2.6 Fuel – Additives - Additives Ultramag, FireShield, etc. - Transportation Costs

AI summary The section discusses fuel additives such as Ultramag and FireShield, along with transportation costs related to fuel. These topics are relevant to fuel management and cost considerations in the energy sector.

Costs of this type are normally recorded in the following accounts in NS Power's Chart of Accounts: p. p. 33
Costs of this type are normally recorded in the following accounts in NS Power's Chart of Accounts: 502600 REG FUEL ADDITIVES CONSUMED 502650 REG FUEL LIMESTONE CONSUMED 504200 REG GRID SALES MERCURY SORBENT 504250 REG GRID SALES MERCURY S...

AI summary The text discusses the accounting treatment of fuel-related costs, specifically limestone and fuel additives, under NS Power's Chart of Accounts. It lists specific account numbers and descriptions related to fuel consumption and grid sales mercury sorbent.

3.2.10 Fuel – Mercury Sorbent p. p. 33
3.2.10 Fuel – Mercury Sorbent - Additives Powder Activated Carbon (PAC) and Calcium Chloride - Transportation Costs - Costs relating to a Hg (mercury) Diversion Program that has been approved by the Minister of Environment under the Air Qu...

AI summary The text discusses costs related to Mercury Sorbent under Fuel, including additives like PAC and Calcium Chloride, transportation costs, and costs from a mercury diversion program approved under the Air Quality Regulations. These costs are recorded in specific accounts within NS Power's Chart of Accounts.

3.2.18 NSP Owned Variable Production Costs p. p. 33
3.2.18 NSP Owned Variable Production Costs Third party production bonuses and penalties for NSP owned power production.

AI summary This section discusses third-party production bonuses and penalties related to NSP owned power production, highlighting the financial incentives and disincentives tied to variable production costs.

7.0 DEFINITIONS p. p. 33
7.0 DEFINITIONS Actual Adjustment (Refund)/Recovery Rate – AA: is an Actual Adjustment which consists of the difference between fuel-related costs recovered from a rate class through the application of the base rates and the actual fuel co...

AI summary This section defines key terms related to fuel cost adjustments and accounting practices, including Actual Adjustment Rate, Balance Adjustment Rate, Base Cost of Fuel, and Annual Weighted Average Cost of Capital. These definitions are essential for understanding how fuel costs are tracked, recovered, and adjusted in NS Power's rate structures.

N-92Compliance Filing - Standardized Filings - Redacted 63 passages
Section 1
REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 1 of 100 NOVA SCOTIA POWER INC. 2026 COST OF SERVICE STUDY ANALYSIS REFERENCE GUIDE EXHIBIT

AI summary This document is a 2026 Cost of Service Study Analysis Reference Guide from Nova Scotia Power Inc., part of a compliance filing for the GRA (likely the Greenhouse Gas Reduction Act) and includes an exhibit. It outlines the structure and content of the study.

Section 2
OTIA POWER INC. 2026 COST OF SERVICE STUDY ANALYSIS REFERENCE GUIDE EXHIBIT

AI summary The document is a reference guide for the 2026 Cost of Service Study Analysis by OTIA Power Inc., providing information related to the cost of service study conducted for the year 2026.

Section 24
(1) RETAIL FUNCTION (2) (3) DISTRIBUTION PLANT: (4) SERVICES 0 0 0 0 (5) METERS 0 0 0 0 (6) TOTAL RETAIL PLANT 0 0 0 0 (7) (8) GENERAL PROPERTY PLANT 42,983 0 0 42,983 (9) TOTAL PLANT IN SERVICE 42,983 0 0 42,983 (10) (11) Working Capital...

AI summary The text presents a financial summary of the retail function, including distribution plant, general property plant, working capital, and deferred charges. It lists various line items such as cash, materials and supplies, and deferred charges, along with their respective values. The total retail function is reported as $206,880, with a total average rate base of $5,563,003.

Section 86
DEMAND CUSTOMER DEMAND CUSTOMER (1) FACTORS 1.000 0.165 0.471 0.122 0.242 (2) TOTAL NET WIRE COST $399,387 $65,894 $188,116 $48,657 $96,720 (3) FACTORS bfr Adjustment 1.000 0.150 0.486 0.110 0.254 (4) ADJUSTMENT before Zero Cap Restriction...

AI summary The text presents financial data related to demand and customer factors, including net wire costs and adjustments before and after a zero cap restriction. It includes an allocation of average pole investment for Nova Scotia Power Inc. for the year ending December 31, 2026.

Section 106
ACK OFFICE - (16) (17) TOTAL FINANCE 7,350 5,000 640 1,416 106 189 (18) (19) ENTERPRISE SERVICES (20) PROCUREMENT & FACILITIES 12,284 2,996 2,996 2,996 2,996 298 F - 5 (21) INFORMATION TECHNOLOGY 46,049 19,238 5,324 12,901 7,473 1,114 F -...

AI summary The document presents a financial summary with various expense categories, including procurement, information technology, human resources, and other expenses, along with totals for different divisions and periods. It includes figures for advocacy expenses and deferrals related to FCR.

Section 125
- - - - 0.0% 0.0% 0.0% 0.0% (14) CORPORATE CONTROLLER 3,433 2,555 246 577 55 0.6% 0.2% 0.2% 0.1% (15) CORP. PERFORMANCE & BACK OFFICE - - - - - 0.0% 0.0% 0.0% 0.0% (16) (17) TOTAL FINANCE 7,161 5,000 640 1,416 106 1.2% 0.5% 0.4% 0.2% (18)...

AI summary The text presents a table of financial figures, including various departments and their associated costs, with percentages and totals provided for different categories. The data reflects corporate and divisional expenses, including procurement, information technology, human resources, and other expenses, with a focus on cost distribution and percentages.

Section 126
% 0.6% 0.6% 2.0% (29) (30) TOTAL DIVISIONAL EXPENSES bfr Advocacy Expense 310,044 148,543 36,078 84,449 40,974 34.3% 26.4% 25.6% 68.6% (31) (32) TOTAL DIVISIONAL EXPENSES 311,881 149,910 36,210 84,758 41,003 34.6% 26.5% 25.7% 68.7% (33) (3...

AI summary The text presents a detailed breakdown of divisional expenses, including advocacy expenses, COGS, DSM expenses, FCR deferral, and other expenses. It includes figures for different years and percentages, with some categories showing significant changes over time.

Section 139
1) EHV and HV STORM EXPENSES 1 8

AI summary The text references expenses related to EHV and HV storm events, indicating a focus on costs associated with high-voltage infrastructure damage due to storms.

Section 158
(11) THERMAL - OPERATING & MAINT. 59,047.2 57,510 0 0 0 1,538 (12) HYDRO - OPERATING & MAINT. 1,879.3 1,830 0 0 0 49 (13) WIND - OPERATING & MAINT. 8,364.9 8,147 0 0 0 218 (14) WIND - OPERATING & MAINT. 130.2 0 0 0 0 130 (15) BIOMASS - OPE...

AI summary The text presents a table of operating and maintenance costs for various energy generation sources, including thermal, hydro, wind, biomass, and combustion turbines, along with related categories such as energy, fuels, and risk management. It also includes a subtotal for total production operating and maintenance costs.

Section 163
62,852 23,683 46,485 5,138 3,616 (78) PREFERRED DIVIDENDS 0 0 0 0 0 0 (79) CORPORATE TAXES -10,608 -4,703 -1,772 -3,478 -384 -271 (80) (81) TOTAL EXPENSES $1,706,121 $1,254,384 $102,973 $263,937 $52,435 $32,392 (82) (83) NON-OPERATING REVE...

AI summary The text presents financial figures related to preferred dividends, corporate taxes, and non-operating revenue items such as late payment charges, connection charges, and others. These figures are likely part of a financial statement or expense report.

Section 182
0 0 6,250.7 (17) INTEREST NET OF AFUDC 5,138 0 0 5,137.9 (18) (19) PREFERRED DIVIDENDS 0 0 0 - (20) CORPORATE TAXES -384 0 0 (384.4) (21) Non-Operating Revenue: (22) LATE PAYMENT CHARGE (5,743.1) 0 0 (5,743.1) (23) CONNECTION CHARGES AND M...

AI summary The text presents a financial summary, including interest, preferred dividends, corporate taxes, and various non-operating revenues and expenses. It includes line items such as late payment charges, connection charges, and retail sales. The total retail revenue and total net expenses are also listed.

Section 193
0 0 0 0 0 0 0 0 0 0 0 P-14 (23) CORPORATE TAXES -1,862 -1,196 -61 -331 -38 -34 -44 -68 -56 -26 -9 P-14 (24) Non-Operating Revenue: (25) STEAM AND ASH SALES -1,293 -830 -43 -231 -26 -24 -30 -47 -39 -18 -6 O-8 (26) OTHER REVENUE -868 -557 -2...

AI summary The text presents a financial summary with various line items including corporate taxes, non-operating revenue from steam and ash sales, and other revenue. It also includes return (profit/loss), interrider demand adjustment, allocation of interrider demand adjustment, ELI 2P-RTP demand adjustment, and allocation of ELI 2P-RTP demand adjustment with associated figures and codes.

Section 201
9,862 6,741 374 1,943 119 217 243 104 0 28 92 P-9 (22) DEPRECIATION 67,915 46,426 2,575 13,378 822 1,497 1,671 718 0 195 633 EXH 6D (23) INTEREST NET OF AFUDC 26,243 17,929 995 5,167 319 578 646 279 0 76 255 P-16 (24) PREFERRED DIVIDENDS 0...

AI summary The text presents a series of financial figures and categories, including depreciation, interest, corporate taxes, non-operating revenue, and return on operations, with associated line items and references to pages and exhibits.

Section 224
$3,350 $411 $526 $294 $695 $118 $173 $855 (26) (27) Total $1,825,306.187 $1,086,335 $65,943 $337,765 $45,582 $38,117 $56,905 $72,635 $81,353 $18,768 $21,903 (28) (29) Costs by Functional Areas (relative shares) (30) Generation 73% 67% 69%...

AI summary The document presents a detailed breakdown of costs across various functional areas, including generation, transmission, distribution, and retail, along with average customer cost calculations. It provides data on distribution and retail costs before non-operating credit adjustments for different periods.

Section 248
. (Customer) 54 0 2 5 2 9 9 240 $36.218 (16) Total Distribution 12,908 0 366 1,241 454 2,061 2,061 $3.212 - $36.218 (17) Total Transmission/Distribution $32,253 $0 $1,092 $2,596 $1,134 $4,822 $4,822 $7.534 - $36.218 (18) kW.h Sold 358,568...

AI summary The text presents a series of financial figures and costs related to distribution, transmission, and customer-related activities, including total distribution, transmission/distribution costs, unit costs, and marketing expenses. These figures are likely part of a regulatory proceeding analyzing cost structures and financial performance.

Section 251
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2026 CLASS : SMALL INDUSTRIAL RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Ener...

AI summary This document provides a rate class disaggregation analysis for the Small Industrial class for the year ending December 31, 2026. It details the rate base, variable and fixed costs, and unit costs associated with generation, including energy and reliability components.

Section 327
COMPANY DOMESTIC GENERAL GENERAL LARGE INDUSTRIAL INDUSTRIAL INDUSTRIAL PHP MUNICIPAL UNMETERED FACTOR (1) POLE&WIRE INV.-DMD. $230,632 $155,449 $8,604 $45,159 $4,056 $5,035 $5,960 $3,284 $0 $964 $2,119 (2) % RESPONSIBILITY 100.00% 67.40%...

AI summary The text presents a table with various cost categories and percentages of responsibility across different customer classes, including Domestic, General, Large, Industrial, Municipal, and Unmetered. The table includes line items such as Pole&Wire Investment - Demand and Customer, Substation, Pole&Wire - Demand and Customer, and associated percentages of responsibility for each category.

Section 344
DEVELOPMENT OF ALLOCATION FACTORS FOR THE YEAR ENDING DECEMBER 31, 2026 (1) (2) (3) (4) (5) (6) (7) TOTAL PROD. TRANS. DIST. RETAIL DIRECT EXPENSES EXPENSES EXPENSES EXPENSES EXPENSES EXPENSES ALLOCATOR (1) LABOUR O&M excluding HR, IT, PR,...

AI summary The document outlines the development of allocation factors for the year ending December 31, 2026, detailing total expenses, revenue requirement before corporate groups, and net plant in service, along with their respective percentages of responsibility across various categories such as production, transmission, distribution, and retail.

Section 416
% -0.09% 7.82% 2.43% 4.22% REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 88 of 100 EXHIBIT 10 NOVA SCOTIA POWER INC. REVENUE TO EXPENSE COMPARISON FOR THE YEAR ENDING DECEMBE...

AI summary The document presents a revenue to expense comparison for Nova Scotia Power Inc. for the year ending December 31, 2026, showing a variance of -0.8% in total operating expenses compared to the CA IR-001 standard.

Section 421
(10) Regulatory Amortization (677,610) (677,610) Regulatory Amort. 100.0% K322 (11) Fuel Expense (1,808,772) (1,729,291) ML - NS Block (BCF COSS) 100.0% B8..M8 and B35..M37 (12) FAM Deferral Interest 328,135 343,365 Interest & Other Exp 10...

AI summary The text provides a summary of various financial and regulatory expenses, including regulatory amortization, fuel expense, FAM deferral interest, AMI opt-out charges, and income tax. It outlines figures related to operating expenses and the rate base, indicating financial performance and regulatory considerations.

Section 436
Line # AVERAGE RATE BASE RATE BASE RATE BASE 2025 2026 (78) WORKING CAPITAL & DEFERRED CHARGES (79) (80) WORKING CAPITAL - CASH FUEL 0 0 0 (81) WORKING CAPITAL - CASH OTHER 162,574 Source: 2014 COSS 187,621 137,527 (82) WORKING CAPITAL - M...

AI summary The text provides a breakdown of working capital and deferred charges for 2025 and 2026, including cash fuel, material and supply fuel, and deferred charges related to financing, tax, and pensions. It includes figures and sources for some line items.

Section 458
5) PREFERRED DIVIDENDS 0 Corporate Adjustment 23,800.0 0 Regulatory Amort. 7,420 (677.610) (276) CORPORATE TAXES -10,608 Allowance for Funds (26,086) Costs of Goods Sold 0 (277) RETAINED EARNINGS 200,714 (583.862) Net 141,773 Settlement Ad...

AI summary This chunk outlines various financial and operational adjustments, including corporate taxes, retained earnings, interruption costs, and customer solutions allocators. It includes percentages and figures related to different categories and allocations.

Section 502
COTIA POWER INC. 2027 COST OF SERVICE STUDY ANALYSIS REFERENCE GUIDE EXHIBIT

AI summary The document is a reference guide for the 2027 Cost of Service Study Analysis by COTIA Power Inc., providing information related to cost of service studies and associated regulatory proceedings.

Section 541
36,737 0 0 0 0 0 36,737 (44) Working Capital & Deferred (45) Charges/Credits: (46) CASH - FUEL 0 0 0 0 0 0 0 0 0 (47) CASH - OTHER 0 0 126,109 0 0 0 0 0 126,109 (48) MAT. & SUPPLIES - FUEL 0 0 0 0 0 0 0 0 0 (49) MAT. & SUPPLIES - OTHER 0 0...

AI summary The document presents a financial table outlining working capital and deferred charges/credits, including categories such as cash, materials and supplies, and deferred charges related to financing, tax, and pensions. The table includes subtotals and totals for the retail function and average rate base.

Section 556
SUPPLIES - FUEL 0 0 0 0 0 0 0 0 0 0 0 P-9 (47) MAT. & SUPPLIES - OTHER 15,961 11,086 608 3,034 185 346 349 161 0 44 148 P-9 (48) DEF. CHG. - Financing 4,395 3,052 167 835 51 95 96 44 0 12 41 P-9 (49) DEF. CHG. - Tax 5,309 3,687 202 1,009 6...

AI summary The document presents a detailed breakdown of supply and financing-related costs across multiple categories, including fuel, materials, and various deferred charges such as tax, pension, and others, with specific figures for different periods and categories.

Section 594
139 - 139 (16) BIOMASS - OPERATING & MAINT. 6,831 6,580 - - - 251 (17) LM6000 OPERATING & MAINT. 656 632 - - - 24 (18) COMBUSTION TURBINE - OPER. & MAINT. 1,728 1,664 - - - 64 (19) FUEL PROCUREMENT 6,858 6,605 - - - 252 (20) GENERATION DEV...

AI summary The text presents a table with various operational and maintenance costs related to biomass, combustion turbines, fuel procurement, and power production, along with corporate and legal expenses. It includes figures for different categories and subcategories, with some entries showing cost differences between periods.

Section 599
AIL DIRECT ALLOCATION EXPENSES EXPENSES EXPENSES EXPENSES EXPENSES EXPENSES FACTOR

AI summary The text presents a table with headings related to allocation and expenses, including categories such as 'DIRECT', 'EXPENSES', and 'FACTOR'. The content is highly technical and appears to be related to financial or operational allocation mechanisms.

Section 616
(1) REGULATORY AFFAIRS (2) Advocacy Expense 1,861 1,345 156 334 26 0.3% 0.1% 0.1% 0.0% (3) Other Expenses 7,305 5,280 612 1,310 104 1.2% 0.4% 0.4% 0.2% (4) Subtotal 9,166 6,625 767 1,643 130 1.5% 0.5% 0.5% 0.2% (5) (6) FINANCE GROUP (7) IN...

AI summary The text provides a detailed breakdown of expenses under the Regulatory Affairs and Finance Group categories, including Advocacy Expense, Internal Audit, Investor Relations, and others, with comparisons across different time periods and percentages of total costs.

Section 617
0.2% 0.2% 0.1% (15) CORP. PERFORMANCE & BACK OFFICE - - - - - 0.0% 0.0% 0.0% 0.0% (16) (17) TOTAL FINANCE 7,284 4,927 752 1,511 95 1.1% 0.5% 0.4% 0.2% (18) (19) ENTERPRISE SERVICES (20) PROCUREMENT & FACILITIES 12,233 3,058 3,058 3,058 3,0...

AI summary The text presents a detailed breakdown of various financial and operational expenses, including corporate performance, enterprise services, human resources, and other expenses, with percentages and figures indicating allocations and changes over time.

Section 650
EREST NET 154,226 64,106 29,258 51,096 4,136 5,630 (78) PREFERRED DIVIDENDS 0 0 0 0 0 0 (79) CORPORATE TAXES 10,114 4,204 1,919 3,351 271 369 (80) (81) TOTAL EXPENSES $1,765,210 $1,226,710 $117,864 $281,294 $52,682 $86,660 (82) (83) NON-OP...

AI summary The text presents financial data including net earnings, preferred dividends, corporate taxes, and total expenses. It also includes non-operating revenue items such as late payment charges, connection charges, NSF fees, and others. These figures provide insight into the financial operations and revenue streams of the entity.

Section 671
THERMAL O&M D&E SPLIT $151,867 (36) (37) THERMAL O&M DMD. ALLOC. % 48.19% (38) THERMAL O&M ENG. ALLOC. % 51.81% (39) (40) BIOMASS DEMAND ALLOC % 48.19% (41) (42) BIOMASS ENERGY ALLOC % 51.81% (43) (44) NRIS ERIS (45) WIND O&M DMD. ALLOC. %...

AI summary The text presents a breakdown of operational and maintenance costs allocated between demand and energy for various thermal, biomass, and wind assets, as well as pole and wire allocations. It also includes general property allocations across different voltage levels and customer segments, with totals provided.

Section 692
0 0 0 0 0 0 0 E-1A (15) OPER. & MAINT. - RADIAL TO GENERATION TRANS. 1,388 730 50 304 49 36 58 94 41 17 11 E-1A (16) DSM 0 See DSM Allocation (17) FCR DEFERRAL 0 0 0 0 0 0 0 0 0 0 0 P-17 (18) REG. AFFAIRS - ADVOCACY EXPENSE 697 339 55 272...

AI summary The text presents a financial summary with various line items including operational and maintenance costs, demand-side management (DSM), fuel cost recovery deferral, regulatory affairs expenses, grants in lieu, depreciation, interest net of AFUDC, and preferred dividends. These figures are organized by category and year, with some entries referencing additional documentation.

Section 709
$380 $508 $211 $642 $69 $163 $843 (26) (27) Total $1,837,796 $1,136,731 $69,475 $340,440 $45,772 $39,062 $53,522 $72,591 $37,780 $19,652 $22,771 (28) (29) Costs by Functional Areas (relative shares) (30) Generation 71% 66% 68% 80% 87% 79%...

AI summary The text presents financial data, including costs by functional areas and average customer costs. It details distribution and retail costs before non-operating credit, along with percentages of total costs attributed to generation, transmission, distribution, and retail.

Section 724
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2027 CLASS : GENERAL RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy Custom...

AI summary This document presents a rate class disaggregation analysis for the year ending December 31, 2027, focusing on the General rate class. It details various costs, including fuel, operating, capital, return, and total costs, along with units sold, demand, and energy metrics for generation, reliability, and total generation.

Section 728
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2027 CLASS : LARGE GENERAL RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy...

AI summary This document presents a rate class disaggregation analysis for the Large General rate class as of December 31, 2027, detailing various costs and units sold related to generation, including energy and demand components.

Section 748
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2027 CLASS : PHP RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy Customer G...

AI summary This document presents a rate class disaggregation analysis for the PHP rate class ending December 31, 2027. It details the rate base, variable and fixed costs, unit costs, and energy and demand metrics for generation, including MWh sales, energy requirements, and kW demand.

Section 772
$25 $40 $1,690 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 55 of 102 EXHIBIT 6B NOVA SCOTIA POWER INC. ALLOCATION OF CUSTOMER SERVICE FIELD EXPENSES FOR THE YEAR ENDING DEC...

AI summary The document presents an allocation of customer service field expenses for Nova Scotia Power Inc. for the year ending December 31, 2027, categorized into different customer segments such as domestic, small general, and large industrial, with expenses broken down into meter reading and wiring inspection costs.

Section 773
0 (10) UNMETERED 487 0 487 (11) TOTAL $10,009 $2,373 $7,636 ALLOCATION FACTOR C-6 C-8 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 56 of 102 EXHIBIT 6C NOVA SCOTIA POWER INC...

AI summary The document presents an allocation of credit services expenses for Nova Scotia Power Inc. for the year ending December 31, 2027, with detailed breakdowns of bad debt expenses across different customer categories.

Section 817
BILITY 100.00% 64.36% 3.42% 17.72% 2.02% 1.86% 2.13% 3.63% 3.00% 1.38% 0.48% O-8 (33) TOT. EXP. - DMD. ( TRANS. HV) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 (34) % RESPONSIBILITY 100.00% 65.00% 3.46% 17.95% 2.04% 1.88% 2.15% 3.66% 1.98% 1.40% 0.48...

AI summary The text presents a table of percentages and dollar amounts related to expenses and responsibilities across various categories, including transmission and distribution, with references to specific line items and percentages. The data appears to be part of a regulatory proceeding involving cost allocation and responsibility distribution.

Section 823
D. TRANS. DIST. RETAIL DIRECT EXPENSES EXPENSES EXPENSES EXPENSES EXPENSES EXPENSES ALLOCATOR (1) LABOUR O&M excluding HR, IT, PR, OTHER and direct 201,262 87,649 22,398 57,115 34,100 - (2) % RESPONSIBILITY 100.00% 43.55% 11.13% 28.38% 16....

AI summary The document presents a detailed breakdown of various expense categories, including labour, revenue requirement, and insurance premiums, with percentages of responsibility allocated across different segments. It includes figures related to net plant in service and compliance reporting, along with footnotes for reference.

Section 916
EMENT 1,727.8 -149 (103) (104) CORPORATE INSURANCE 10,029.1 (105) CORPORATE SECRETARY 1,792.5 (106) CORPORATE SECRETARY & INSURANCE 11,821.6 (107) (108) LEGAL SERVICES 5,177 (109) (110) VP EXTERNAL RELATIONS (111) COMM. & PUBLIC AFFAIRS 1,...

AI summary The document presents a detailed listing of input information for Nova Scotia Power Inc.'s Cost of Service Study (C.O.S.S.) for the year ending December 31, 2027, including various corporate and operational line items.

Section 919
15,013.7 (138) TOTAL CORPORATE GROUPS 68,025.74 (139) (140) TOTAL LABOUR RELATED 242,597.10 244,779.2 -2,182.1 (141) TRANSMISSION CONTROL CENTER 3,619.3 (142) GENERATION, TRANSMISSION AND DISTRIBUTION (143) TRANSMISSION BEFORE STORM EXPENS...

AI summary The text presents a detailed breakdown of various expenses related to corporate groups, labor, transmission, distribution, and customer service. It includes figures for storm-related expenses, line costs, and customer service expenditures, along with percentages and comparisons.

Section 921
- (176) BAD DEBT EXPENSE 5,012.9 17.5% 7,503,950 (177) Total 15,047.3 52.6% 22,524,963 Customer Service Total 28,604.7 28,604.7 100.0% 42,819,524 (178) 0 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing...

AI summary The document presents a detailed listing of the Cost of Service Study (C.O.S.S.) input information for Nova Scotia Power Inc. for the year ending December 31, 2027, including line items such as bad debt expense and total customer service costs.

Section 924
8,847 $7,602,473 (186) Environmental Services 2,623.4 2023 $418,234 $348,956 $2,871,700 $3,638,890 (187) Project Implementation 1,082.7 2024 $1,360,838 $1,492,826 $10,572,909 $13,426,574 (188) EAM 8,631.4 Total $3,894,405 $4,119,914 $31,46...

AI summary The text presents a financial table with figures related to various departments and programs, including Environmental Services, Project Implementation, and EAM, along with budget and cost data spanning multiple years and categories.

Section 927
0.0 61 61 61 0 (249) LM6000 7,371.9 0.0 7,372 7,372 7,394 -22 (250) GAS TURBINE - OTHER 3,238.8 0.0 3,239 3,239 3,057 182 (251) TOTAL GENERATION 91,131.6 0.0 91,131.6 0.0 91,131.6 87,310.2 3,821.4 (252) (253) ECEI BATTERIES 8,877.2 8,877 (...

AI summary The text presents a detailed listing of input information from a Cost of Service Study (C.O.S.S.) for Nova Scotia Power Inc. for the year ending December 31, 2027, including various line items related to generation and assets.

Section 933
10,114 Allowance for Funds (17,343) Costs of Goods Sold 0 (294) RETAINED EARNINGS 212,348 (8.277) Net 154,226 Settlement Adj. 0 (295) Normal Interruption Cost 160.44 10,114 (296) Interr. Rider Coincident Demand & CD Losses 69,857 (297) PHP...

AI summary The text presents a financial summary with various line items related to costs, credits, and allocations. Key elements include fuel cost recovery deferrals, customer solutions allocators, and percentages for different customer segments.

Section 934
NS ALLOCATOR - MEDIUM INDUST. 2.9% 3.00% (312) CUSTOMER SOLUTIONS ALLOCATOR - LARGE INDUST. 4.6% 2.00% (313) CUSTOMER SOLUTIONS ALLOCATOR - PHP 0.0% 0.00% (314) CUSTOMER SOLUTIONS ALLOCATOR - MUNICIPAL 0.3% 2.00% (315) CUSTOMER SOLUTIONS A...

AI summary The text presents allocation percentages and unit meter costs for various customer segments and services, including residential, small general, and general categories, as part of a cost-of-service study (COSS) for the year 2023.

Section 935
129.17 113.00 (333) Small General 146.15 111.72 (334) General 565.62 392.00 (335) Large General 1,811.88 692.00 (336) Small Industrial 589.45 196.84 (337) Medium Industrial 1,611.77 692.00 (338) Large Industrial 1,891.93 1,106.00 (339) PHP...

AI summary The document presents a detailed listing of input information from the Cost of Service Study (C.O.S.S.) for Nova Scotia Power Inc. for the year ending December 31, 2027, with various categories and associated dollar amounts.

Section 944
REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 96 of 102 NOVA SCOTIA POWER INC. DETAILED LISTING OF C.O.S.S. INPUT INFORMATION FOR THE YEAR ENDING DECEMBER 31, 2027 (IN THOUSA...

AI summary The document is a detailed listing of input information from Nova Scotia Power Inc.'s Cost of Service Study (C.O.S.S.) for the year ending December 31, 2027, presented in thousands of dollars.

Section 952
REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 97 of 102 NOVA SCOTIA POWER INC. DETAILED LISTING OF C.O.S.S. INPUT INFORMATION FOR THE YEAR ENDING DECEMBER 31, 2027 (IN THOUSA...

AI summary This document is a detailed listing of input information for Nova Scotia Power Inc.'s Cost of Service Study for the year ending December 31, 2027. It is part of a confidential compliance filing related to the 2026-2027 GRA (likely a regulatory or compliance acronym).

Section 956
S - DEMAND 0.4819 (580) BIOMASS - ENERGY 0.5181 (581) (582) Bad Debt Direct Cost Allocator (Domestic) 0.84 (583) REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 98 of 102 NOVA...

AI summary The document provides a detailed listing of input information for the Cost of Service Study (C.O.S.S.) for Nova Scotia Power Inc. for the year ending December 31, 2027, including allocation factor information and calendar month of system peak data.

Section 962
50,433 54,239 49,133 55,684 48,648 54,408 45,826 61,953 50,562 63,643.9 (43) CLASS NON-COINCIDENT DMD. - INDUSTRIAL LARGE 92,014 92,756 86,801 88,913 92,902 97,263 97,187 103,959 102,722 99,058 101,792 92,640 103,959.2 (44) CLASS NON-COINC...

AI summary The text provides a detailed listing of input information for the Cost of Service Study (C.O.S.S.) for Nova Scotia Power Inc. for the year ending December 31, 2027, including allocation factor information and various demand class data.

Section 967
100 of 102 NOVA SCOTIA POWER INC. DETAILED LISTING OF C.O.S.S. INPUT INFORMATION FOR THE YEAR ENDING DECEMBER 31, 2027 (IN THOUSANDS OF DOLLARS) ALLOCATION FACTOR INFORMATION

AI summary The document provides a detailed listing of input information for the Cost of Service Study (C.O.S.S.) for Nova Scotia Power Inc. for the year ending December 31, 2027, focusing on allocation factor information.

Section 973
0 0 0 0 0 0 0 0 0 0 0 0 - REQUIREMENTS - EBS/RTR 68,626 78,686 77,113 60,680 52,282 59,439 55,407 53,083 54,246 60,079 60,501 68,303 215,615.6 (113) REQUIREMENTS - EXPORT SALES 0 0 0 0 0 0 0 0 0 0 0 0 - (114) INTERRUPTIBLE COINCIDENT DEMAN...

AI summary The document presents a detailed listing of Cost of Service Study (C.O.S.S.) input information for Nova Scotia Power Inc. for the year ending December 31, 2027, including various financial figures and allocation factors.

Section 982
33 34 35 36 37 38 39 40 41 42 43 44 Line # Base Cost of Fuel Cost of Service Allocation of Fuel Expenses among Rate Classes 1 2 FOR THE YEAR ENDING DECEMBER 31, 2026 3 4 COLUMN A B C D E F G H I J K L M N O P Q R S T U V W X Y Z AA AB AC A...

AI summary This section presents a table outlining the allocation of fuel expenses among different rate classes for the year ending December 31, 2026. It includes various columns labeled with terms such as 'Base Cost of Fuel,' 'Cost of Service,' and 'Allocation of Fuel Expenses,' suggesting a detailed breakdown of financial data related to fuel costs.

Section 984
11 Cost Allocation Factors Fuel-related C o s t s f r o m C O S Fuel Costs used for FAM purposes FAM Cost Classification V A R I A N C E FROM CA IR-001 Purchased Power other than Biomass and 12 3 CP Demands Energy Requirement Purchased Pow...

AI summary The text discusses fuel-related costs from the Cost of Service Study (C.O.S.S.) and their classification in the Financial Accounting Manual (FAM), highlighting variances from CA IR-001. It includes categories such as purchased power, biomass, wind, and other energy requirements.

Section 993
45.3% 100.0% 54.7% 45.3% 100.0% 54.7% 45.3% 100.0% 54.7% 45.3% 100.0% 30 Non-FAM Rate Classes 31 BUTU 100.00% 32 GRLF 100.00% 33 1P - RTP 100.00% 34 ELIADC 100.00% 35 Shore Power EBS /RSS 37 Total Below-the-line 178,670 0.3% 159,281,443 0....

AI summary The text presents a table with percentages and financial figures related to rate classes and cost data. It includes entries such as 'Non-FAM Rate Classes' and 'Total Below-the-line' with associated monetary values and percentages, indicating a focus on financial and regulatory accounting details.

Section 1065
r EBS Total 48,967 56,214 55,044 43,191 38,004 49,486 40,310 41,744 41,957 46,470 46,776 50,842 156,023 48,967 NSR Peak: 2,413,470 2,353,879 2,067,656 1,743,372 1,484,308 1,376,186 1,433,351 1,444,266 1,383,409 1,535,612 1,913,044 2,188,59...

AI summary The text presents a table with data on energy costs and peak demand, including total figures, marginal costs, and incremental costs across different years. It includes values such as total, NSR Peak, Marginal Cost, and Incremental Cost for various years.

Section 1070
11 Cost Allocation Factors Fuel-related C o s t s f r o m C O S Fuel Costs used for FAM purposes FAM Cost Classification V A R I A N C E FROM CA IR-001 Purchased Power other than Biomass and 12 3 CP Demands Energy Requirement Purchased Pow...

AI summary The text discusses fuel-related costs from the Cost of Service Study (C.O.S.S.) and their classification in the Financial Accounting Manual (FAM), highlighting variances from CA IR-001. It includes categories such as purchased power, biomass, wind, and other energy requirements.

Section 1071
Cost Amount Unit Cost (cents per kWh) before BUTU Capacity BUTU Capacity Credit Demand- Energy- Total Fuel-related costs (CA IR-001) Variance % Var 13 Relative Shares of Relative Shares of

AI summary The text presents a table with cost data, including unit costs per kWh, before BUTU Capacity and BUTU Capacity Credit, as well as demand and energy costs. It also references a variance and percentage variance, possibly related to cost analysis or regulatory proceedings.

Section 1072
costs (CA IR-001) Variance % Var 13 Relative Shares of Relative Shares of Imports (allocated on Basic and Supplemental Blocks ERIS NRIS Credit, Export Revenues, (Allocated demand- OM&G costs Demand-related Energy-related Total related rela...

AI summary The text presents a table with cost-related data, including variance percentages, embedded costs, fuel costs, and energy-related and demand-related costs, categorized by rate class and other factors. It appears to be a detailed financial breakdown from a regulatory proceeding.

Section 1074
15 $7,564,672 $30,871,211 $13,394 $0 $0 $0 $30,884,605 $32,279,658 3.7% $32,117,707 9.013 $7,514,672 $23,369,933 $30,884,605 2.109 6.558 8.667 $30,948,722 -$64,117 -0.2% 18 General Demand 104.71% 1,195,401 17.629% 2,335,071,503 21.85% 2,16...

AI summary The text presents financial data and figures related to various categories, including demand, large general, and other unspecified categories, with percentages, monetary values, and other metrics. The data appears to be part of a regulatory proceeding involving cost analysis and financial reporting.

Section 1139
Export Revenues $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0 OM&G (Solid Fuel Handling) recovered in fuels $0 Foreign Exchange (Fuel-related) $0 ML - NS Block per Appliation $16,990,030 $16,990,030 $16,990,030 $16,990,030 $16,990,030 $16,990...

AI summary The text presents financial data related to export revenues, OM&G costs, foreign exchange, and adjustments for the NS Block under various decisions. It includes figures for total FAM related costs and costs with OATT customers over multiple years.

N-93NSPI (NSEB) RIR 1 to 7 2 passages
Preamble p. p. 1
Request IR-5: What is the estimated cost to comply with the Board's directive to use AMI data to avoid prorating bills to accommodate the rate change? Response IR-5: The Company has not completed a detailed analysis or scoping exercise as...

AI summary The Company estimates a minimum cost of $1,000,000 to comply with the Board's directive to use AMI data to avoid prorating bills, including capital and OM&G costs. The Company argues that proration concerns apply only to the Energy Charge, not the Customer Charge, and provides an analysis focused on residential customers with extended billing periods.

NON-CONFIDENTIAL p. p. 11
NON-CONFIDENTIAL 1 Request IR-6: 2 3 On page 27 of the compliance filing, NS Power stated: "As 40% of the Company's customers 4 are still receiving paper bills by mail, this translates to approximately $200,000 in additional 5 OM&G costs f...

AI summary NS Power explains that creating additional bill periods due to rate changes would lead to irregular billing cycles and increased operational costs, particularly for customers receiving paper bills. The estimated cost of mailing paper bills to 40% of customers is based on postage and other related expenses, with an updated 2026 postage rate of $1.23 per bill.

101354Board Decision 13 passages
1.0 SUMMARY p. p. 7
tions ; - The denial of NS Power's proposed deferral of general rate application OM&G costs (GRA deferral) for collection over the 2026-2027 period; - A reduction of $1.8 million in fuel and purchased power costs in 2026 to reflect the pre...

AI summary The document outlines several decisions made in the regulatory proceeding, including the denial of NS Power's GRA deferral, a reduction in fuel and purchased power costs, a peak load carrying capability adjustment, and the denial of the AMI opt-out fee. It also discusses potential impacts of alternative depreciation treatments and cost-of-service procedures on rate increases.

[37] The terms of the settlement agreement are set out in a schedule to the agreement and provide as follows: p. p. 26
[37] The terms of the settlement agreement are set out in a schedule to the agreement and provide as follows: GRA Element Settlement Terms Cost of Service ("COS") a) The COS as set out in the Draft GRA will be included in the 2026-2027 GRA...

AI summary The settlement agreement outlines terms for the 2026-2027 GRA, including the inclusion of the Cost of Service and MEU Treatment. The agreement specifies that the Minimum System methodology will be subject to a future proceeding, and data regarding PHP's use of the High Voltage transmission system will be collected and disclosed. The apportionment of assessment costs from the Maritime Link remains open for future determination.

Preamble p. pp. 35-281
[50] In its response to Bates White IR-10, NS Power stated that it is forecasting a FAM liability of $10.2 million at the end of 2026 and $0.8 million at the end of 2027. NS Power also stated that at its weighted average cost of capital (W...

AI summary NS Power provided forecasts of its FAM liability and interest expenses for 2026 and 2027. Bates White noted that while NS Power used reasonable publicly available forecasts, they were dated and based on data from November 2024 and March 2025. The forecasts were run using the PLEXOS model.

3.2.1.1 Findings p. pp. 35-40
3.2.1.1 Findings [57] The Board notes that NS Power's proposed BCF was deemed acceptable to customer representatives who signed the settlement agreement. The Board also notes Bates White's statements that, although the commodity prices and...

AI summary The Board accepts NS Power's proposed Base Cost of Fuel (BCF) as reasonable, despite dated commodity prices and load forecasts. It directs NS Power to adjust its revenue requirement for 2026 and 2027 based on updated FLG interest and principal amounts. The Board also acknowledges concerns from REI about forecast accuracy and expects NS Power to improve its forecasting practices.

3.3.1 Overall Costs p. pp. 43-44
3.3.1 Overall Costs [69] NS Power applied for an increase in its OM&G expenses in the test years. The OM&G expenses represent costs for operating and maintaining the utility's generation, transmission, and distribution facilities; deliveri...

AI summary NS Power has requested an increase in OM&G expenses for 2026 and 2027, citing staffing increases and other factors. The proposed amounts reflect a reduction from a prior settlement agreement and are supported by a benchmarking report from ScottMadden Inc., which found that NS Power's OM&G costs are favorable compared to peers.

3.8 Cost of Service Study p. p. 236
d its consultants, appended as Appendix 12A(3) , jurisdictional scans, appended as Appendix 12A(4) , and memorandums, appended as Appendix 12A(5) . [Emphasis in original] [Exhibit N-9, p. 7] [577] Exhibit N-9 also included information abou...

AI summary The document references appendices and exhibits related to a cost-of-service study conducted by NS Power, including jurisdictional scans, memorandums, and a formal report from Elenchus, the study's consultant.

Decarbonization Deferral Account p. p. 236
Decarbonization Deferral Account NS Power considers its approved decarbonization deferral account to be a rate stabilization tool and proposes that it be classified and allocated in the same manner as other rate stabilization tools. [580]...

AI summary NS Power proposes classifying its approved Decarbonization Deferral Account as a rate stabilization tool. The proposed changes to cost-of-service methodologies negatively impact residential customers, increasing their costs by approximately $26 million in 2026 and $25.3 million in 2027.

Section 398 p. p. 247
[589] Ms. Palmer agreed that NS Power's use of the minimum system method is not unique and that it is used in other jurisdictions throughout Canada. However, she did not believe this means it is a reasonable method to use for classifying d...

AI summary Ms. Palmer acknowledges the use of the minimum system method in other jurisdictions but argues it is not suitable for NS Power due to its misalignment with customer cost definitions. She explains that distribution costs are primarily driven by demand, not the number of customers, and highlights that customer-related costs are mainly tied to geographic expansion.

Section 399 p. p. 247
eed to bring electric service to geographically dispersed customer locations." Thus, there is little justification for classifying costs in these accounts as customer-related. [Exhibit N-37, pp. 6-7] [591] Ms. Palmer said the number of pol...

AI summary Ms. Palmer argues that the minimum system method overstates customer-related distribution costs and recommends using the basic customer method instead. NS Power analyzed the impact of this method and found it would shift approximately $30 million in costs from the residential class to other rate classes.

Section 436 p. p. 273
[650] In its response to NSEB IR-133, NS Power also calculated the customer charges that would result from a direct use of customer costs under its cost-of-service study. The results, which are reproduced below, also showed the offsetting...

AI summary NS Power calculated customer charges resulting from a direct use of customer costs in its cost-of-service study, showing the impact on proposed energy rates to maintain cost recovery for these customers.

Document: 328719 p. p. 273
Document: 328719 Ι Domestic Service Tariff Capped Customer Charge COSS-based Customer charge Variance Percent Variance 2026 Standard Rate Customer Charge ($/month) $20.24 $29.32 $9.07 45% Energy Charge (cents/kWh) 18.349 17.306 (1.043) -6%...

AI summary The document presents a comparison of customer charges and energy charges under different tariff structures (Capped and COSS-based) for the years 2026 and 2027, highlighting variances in both dollar amounts and percentages for Domestic Service Tariff and Small General Tariff.

4.4 Lingan Unit 2 and Trenton Unit 5 p. pp. 294-295
4.4 Lingan Unit 2 and Trenton Unit 5 [712] In its general rate application, NS Power assumed sustaining capital expenses of $20,829,182 at Lingan 2 during the 2026-2027 test period, including $18,433,591 in 2026 and $2,395,591 in 2027 (Bat...

AI summary NS Power's general rate application includes sustaining capital expenses for Lingan Unit 2 and increased OM&G costs for both Lingan Unit 2 and Trenton Unit 5. Bates White notes the costs are substantial relative to the energy output and recommends additional narrative support for the capital cost increase.

5.0 SUMMARY OF MAJOR FINDINGS AND DIRECTIVES p. p. 302
- Maintaining NS Power's current return on equity of 9.0%, with an earnings band of 8.75% to 9.25%. The equity thickness for rate setting purposes remains at 40.0%; - The establishment of the securitization deferral to defer depreciation e...

AI summary The summary outlines key directives and findings related to NS Power's return on equity, depreciation rates, cost-of-service methodology, and various deferral accounts. It includes the establishment of a securitization deferral, adjustments to depreciation studies, and the handling of revenue variances and tax expenses.

101825Board Order 7 passages
Wholesale Market Backup/Top-up Service Tariff (BUTU). p. p. 121
Wholesale Market Backup/Top-up Service Tariff (BUTU). - 2. For ATL and BUTU classes the following costs and credits - a. NS Power's plant fuel costs - b. costs of biofuels of purchased biomass generation - c. non-firm imports costs - d. ex...

AI summary The Wholesale Market Backup/Top-up Service Tariff (BUTU) outlines how various costs and credits, including fuel costs and import costs, are classified and allocated to different classes based on their energy contribution and load factors. The allocation method ensures alignment with revenue from approved rates using a revenue-to-cost ratio.

3.2.1 Natural Gas p. p. 121
3.2.1 Natural Gas - Natural Gas Consumed - Financial Instruments used for Hedging (including gains, losses, fees and interest charges) - Pipeline Reservation Fees, Tolls, Penalties (such as imbalance charges) - Pipeline Losses - Natural Ga...

AI summary The section outlines various costs and financial considerations related to natural gas, including consumption, hedging instruments, pipeline fees, storage costs, and GHG emission compliance programs.

Preamble p. p. 121
Solid fuel costs are collected into three categories: Inventoried Costs, Costs Directly Applied, and Costs Expensed Through Plant Fuel Handling Adjustments. Those categories include the following costs: - Inventoried costs - o Commodity Co...

AI summary The document outlines how solid fuel costs are categorized into three groups: Inventoried Costs, Costs Directly Applied, and Costs Expensed Through Plant Fuel Handling Adjustments, with examples of the types of costs included in each category.

3.2.5 Light Starter Oil p. p. 121
3.2.5 Light Starter Oil - LFO (Light Fuel Oil) Commodity Consumed - Transportation Cost - Quality Testing and Inventory Measurement Costs - GHG Emission Compliance Program costs Costs of this type are normally recorded in the following acc...

AI summary This section outlines the costs associated with Light Fuel Oil (LFO) consumption, including transportation, quality testing, inventory measurement, and GHG emission compliance. These costs are recorded in NS Power's Chart of Accounts under account 502550.

3.2.15 Limited-Duration Fuel Testing p. p. 121
3.2.15 Limited-Duration Fuel Testing These fuel testing costs (including solid fuel, liquid fuel and additives such as PAC) consist of the amounts directly incurred for shipping and handling and for conducting the test (e.g., third party t...

AI summary The text outlines the costs associated with limited-duration fuel testing, which include shipping, handling, and third-party testing. These costs are restricted to non-capital expenses and must be separately recorded in the Company's accounting records.

3.2.17 GHG Emission Compliance Program Costs p. p. 121
3.2.17 GHG Emission Compliance Program Costs - The cost of Fund Credits under the Nova Scotia GHG Output Based Pricing System (OBPS) emissions compliance programs. - Transaction fees for purposes of purchasing GHG OBPS Fund Credits). Costs...

AI summary This section outlines the costs associated with GHG emission compliance programs, specifically the cost of Fund Credits under Nova Scotia's OBPS and transaction fees for purchasing these credits. These costs are recorded in account 503400 REG EMISSION ALLOWANCE EXPENSE in NS Power's Chart of Accounts.

3.3 Calculation of Fuel Costs p. p. 121
3.3 Calculation of Fuel Costs The fuel costs in the Base Cost of Fuel recovered through the FAM include allowable fuel and purchased power expenses (as noted in section 3.1 above) less revenues from exported power.

AI summary This section outlines how fuel costs are calculated in the Base Cost of Fuel recovered through the Fuel Adjustment Mechanism (FAM), which includes allowable fuel and purchased power expenses, less revenues from exported power.

99175Letter NSPI re: Notice of Consensus 2026 - 2027 General Rate Application 1 passage
Section 2 p. p. 0
the entirety of this process, customer representatives have been aided by their expert consultants. Relevant components of the GRA to which all Parties noted above have agreed include the following: • An overall average rate increase acros...

AI summary The document outlines agreed-upon components of the GRA, including rate increases, updated studies, retention of financial parameters, continuation of a storm cost recovery rider, amendments to the DSM rider, and plans for securitization of thermal assets. These measures are expected to impact customer rates and savings over the 2026-2027 period.

99467Notice of Public Hearing 1 passage
NS Power is also proposing: p. p. 0
- 4. Deferral of costs for the completed Cost of Service Study, Line Loss Study, and Climate Change Adaptation Plan to be collected as a regulatory asset as previously approved in the 2023-2024 General Rate Application decision. - 5. NS Po...

AI summary NS Power proposes deferring various costs including those from completed studies and a securitization approach to finance thermal generation assets. It also outlines potential deferrals related to tax rules, revenue variances, and depreciation studies, along with the continuation of a storm cost recovery rider pilot.

99670Comments on Preliminary Issues List - NSPI 1 passage
Comment p. p. 0
Comment The Line Loss Study included in the GRA is the study that was developed as part of the Cost of Service Study consultative process that included all customer representatives, as well as Board counsel, Board counsel consultants, and...

AI summary NS Power references the Line Loss Study included in the GRA, developed during a consultative process involving customer representatives and Board staff over a year. They argue the GRA outcomes are supported and do not require further evidence in the hearing.

99739Dr. Cleary (NSPI) IR 1 to 11 1 passage
1 Request IR-9: p. p. 4
al. (2016) study (which examines MRPs over the 1900-2015 period), and is 1 Request IR-9: 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Question: (a) Please confirm that the Blume (1970) study referenced by Concentric examines...

AI summary The text contains a request (IR-9) asking Concentric to confirm the scope of the Blume (1970) study, provide the study, and recalculate the CAPM cost of equity using raw beta estimates instead of adjusted ones, along with supporting data in Excel format.

99742Doane Grant Thornton (NSPI) IR 1 to 93 1 passage
Request IR-61:
Request IR-61: - Reference: N-3 page 74 - In reference to figure 11-1 in direct evidence N-3, page 74, please explain assumptions used in - forecasting interest charges under "interest and other expenses" including explanations for year- -...

AI summary The text requests an explanation of the assumptions used in forecasting interest charges under 'interest and other expenses' for 2026F and 2027F, as presented in figure 11-1 of direct evidence N-3, page 74.

99748NSEB (NSPI) IR 1 to 152 1 passage
Request IR-48:
Request IR-48: - Reference: Exhibit N-3 GRA Direct Evidence, Figure 7-1 Five-Year Operating Cost Forecast - Please update the five-year forecast from NS Power's last general rate application (reproduced

AI summary The document requests an update to the five-year operating cost forecast from NS Power's last general rate application, as presented in Exhibit N-3 GRA Direct Evidence, Figure 7-1.

99749Bates White (NSPI) IR 1 to 20 - Redacted 2 passages
Request IR-8:
Request IR-8: - 2026-2027 GRA Direct Evidence, DE-03-DE-04, page 27, FO-07 Att 1, and Appendices 7a and - 7b; Exhibit N-5(C) PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 5A - page 13, Figure 8. At page 27, lines 15-16 the...

AI summary The text references fuel and purchased power costs for the 2026-2027 GRA period, totaling $1.8 billion, and requests an updated version of a cost drivers table from the 2022-2024 GRA to include recent data such as the 2024 GRA Refresh, 2025 FAM, and 2026 GRA.

Request IR-9:
Request IR-9: 1 2026-2027 GRA OE-01A Att 1 CONF, tab 9; 2026-2027 GRA OE-01A Att 2 CONF, tab 9. 2 a) Please explain the condition of the South Canoe Wind Farm. Has it been fully restored 3 and returned to service at full capacity? 4 b) Ple...

AI summary The text includes several requests related to the condition and capacity of various energy generation facilities, including wind and tidal projects, as well as questions about forecasted renewable energy percentages and financial metrics such as FAM balances and WACC. These inquiries are part of a regulatory proceeding.

99794Renewall (NSPI) IR 1 to 13 1 passage
please explain.
please explain. 1 (c) When will NS Power file its FAM AA/BA Application? 3 the DTR on transmission-connected RTR customers? 4 (e) The stated premise for the addition of new charges for transmission 5 connected LIR RtR customers is their re...

AI summary The text presents a series of questions raised in a regulatory proceeding, focusing on the timing of NS Power's FAM AA/BA application, the breakdown of costs for transmission-connected customers, the components of updated charges for distribution and retail services, and the significance of formatting in the DTR document. These questions relate to cost structures, rate changes, and regulatory filings.

100588Undertaking List 2 passages
MATTER #: M12451 p. p. 0
MATTER #: M12451 DATE: UND# DESCRIPTION REQUESTED OF BY DATE DUE January 7, 2026 U-1 To file Mr. Blair's résumé. Also to confirm the other experts that are to appear have filed their résumés, and if not, to file them. Requested of NSPI by...

AI summary The document outlines various requests made in Matter M12451, including submitting resumes, providing responses to board inquiries, updating cost-of-service studies, and adjusting rate calculations based on changes in demand and credit assumptions.

______________ p. p. 0
______________ DATE UND# DESCRIPTION REQUESTED OF FOR DUE DATE January 8, 2026 U-12 To provide the Gannett Fleming model that demonstrates the crossover point between the ALG and ELG methods taking into account both depreciation and rate b...

AI summary The document outlines several requests made by The Board and other parties to NSPI, including providing models related to depreciation and rate base effects, clarifying the source of a FAM disallowance, updating cost of capital models, and assessing the impact of FAM and DSM riders on customer class rates.

100770Closing Statement - CA 2 passages
Section 13
2 3 The imbalance in the rate increases for the different rate classes is primarily the result of changes 4 to the Cost of Service Model adopted by Nova Scotia Power following a review in 2024 of the 5 allocation of costs among rate classe...

AI summary The rate increases for the Residential class are disproportionately higher due to changes in Nova Scotia Power's Cost of Service Methodology, increased contribution to demand peaks, and the use of the Minimum System Method for cost allocation. This method is criticized for unfairly disadvantaging the Residential class.

16 D. Port Hawkesbury Paper
16 D. Port Hawkesbury Paper 17 18 The Cost of Service study that underpins the Settlement Agreement and the resulting GRA includes 19 Port Hawkesbury Paper ("PHP") as an above-the-line customer based on forecasts of receiving 20 Board appr...

AI summary The Port Hawkesbury Paper (PHP) is classified as an above-the-line customer in the Settlement Agreement, which affects cost allocation. However, there is a dispute between PHP and Nova Scotia Power over the firm demand load under the new tariff, with PHP arguing for a lower load level. This dispute could impact cost allocation across rate classes and the approval of the new tariff.

100780Closing Submission - NSPI 5 passages
Exhibit N-40, Opening Statement of NS Power. p. pp. 7-9
Exhibit N-40, Opening Statement of NS Power. N-32 Evidence – Cleary page 6 lines 4-5; N-37, Evidence - Synapse Evidence page 18, lines 1-3; N-35, Evidence - Bates White, page 14, lines 11-16. 1 was a consideration of the parties is evident...

AI summary NS Power outlines its OM&G expense forecasts for 2026 and 2027, citing a 18% share of its revenue requirement. It notes a $24 million increase over the 2024-2026 period, with a $5.7 million reduction due to a labour vacancy adjustment. A ScottMadden benchmarking study supports the reasonableness of its costs compared to peer utilities.

N-27, NSEB IR-72 Attachment 1, ScottMadden Report, PDF page 6 of 87. p. pp. 9-10
N-27, NSEB IR-72 Attachment 1, ScottMadden Report, PDF page 6 of 87. 1 of NS Power's forecast OM&G costs in this GRA. In addition, NS Power has developed the 2 OM&G forecast through multiple levels of review and agreed to a further $9 mill...

AI summary NS Power has developed an OM&G forecast with input from customer representatives and agreed to reduce costs by $9 million annually. The inclusion of Maritime Link Transmission Assets in rate base was deferred by the Board until NS Power can demonstrate that wheeling tariff revenue and economic value from Nalcor surplus energy meet specific cost thresholds.

Preamble p. p. 12
price forecasts citing timing of settlement negotiations and their observation that there were no major changes regarding commodity futures prices that would require an update to rates.[18](#page-13-0) Further, when asked whether the 2025...

AI summary Bates White confirmed no major changes in load forecasts or fuel cost-related rate increases. They made two recommendations: confirming the scope of the PHP Deferral Account includes the Goose Harbour Lake wind project and providing more narrative on sustaining capital costs for Lingan Unit 2. NS Power confirmed the inclusion of the wind project in the PHP Deferral Account.

3.7.2 Outcome of PHP remaining below-the-line One of the concerns raised during the hearing was the potential impact on the GRA if PHP does not ultimately take service under an above-the-line tariff in 2027, and what alternative arrangements might apply.[59](#page-33-2) The NS Power panel explained that while the precise alternative would depend on the circumstances, PHP would necessarily take service either below-the-line or above-the-line, and NS Power would work to ensure that an appropriate arrangement is in place when the current ELIADC Tariff expires at the end of 2026.[60](#page-33-3) If PHP elects not to take service under the new ELIDT, then it is expected that the existing ELIADC Tariff would form the baseline for any required true-up calculation for as long as it remains in place. [61](#page-33-4) 12 However, to the extent that an entirely different tariff (i.e. not the ELIDT or the ELIADC) is in place at some point during the 2026-2027 period, then it is expected that tariff would then form the baseline. To help illustrate the potential magnitude of the impacts in this scenario, NS Power indicated at Exhibit 74 (Undertaking-2), that the forecast PHP Deferral amount, if PHP remains on the ELIADC Tariff for all of 2026, would be anticipated at $18.2 million. In addition, a fuel balance amount of approximately $5.7 million is anticipated to be recorded under the FAM.[62](#page-33-5) 3.7.3 Criticality of the PHP Deferral In light of the acknowledged uncertainty regarding PHP's ultimate tariff treatment in the test period, the changes in load caused by the onset of the Goose Harbour Lake wind project, and the likely material magnitude of the associated revenue and cost impacts, the need for a deferral mechanism is both evident and prudent.[63](#page-33-6) As noted by Bates White in its evidence, given the p. pp. 33-34
"page-33-4"> Transcript, January 7, 2026, page 69 (PDF page 77), lines 1-5. Exhibit N-74, Undertaking 2. Transcript, January 8, 2026, pages 583-584 (PDF p 265-266). uncertainty surrounding PHP's tariff mechanism for the 2026-2027 period, "...

AI summary The document discusses the potential impact on the GRA if PHP does not take service under an above-the-line tariff in 2027, and the proposed deferral mechanism to reconcile revenue deviations. It also outlines the approval of the Cost of Service methodology by NS Power and the parties' agreement on its implementation.

1 proceeded on that basis and have developed a full and sufficient record to support the resulting p. p. 39
1 proceeded on that basis and have developed a full and sufficient record to support the resulting 2 cost allocation and rate design outcomes. 3 4 As a final, related matter, a blanket change from the Minimum System Method to the Basic 5 C...

AI summary The document discusses the cost allocation and rate design outcomes, noting that a change in method may not lower customer charges. It also mentions the continuation of the Storm Cost Recovery Rider Pilot and the Revenue-to-Cost ratios for customer classes.

100863Reply Submissions - NS Power 2 passages
11 NS Power's response:
11 NS Power's response: - 12 The GRA process began with the fulsome Cost-of-Service-Study (COSS) process initiated in - 13 December of 2023 and this aspect of the GRA continues today with these submissions. NS Power - 14 also engaged subst...

AI summary NS Power defended its GRA process, emphasizing that it was thorough and involved extensive consultation with customer representatives, leading to significant customer savings. It refuted claims that the process was rushed or led to higher costs, citing a Settlement Agreement and savings of approximately $60 million. The Liberal Caucus criticized the utility's approach to rate applications and highlighted its forecasting capabilities.

Preamble
erall basis. 27 28 In addition to the foregoing, the Settlement Agreement, which includes the customer 29 representatives' agreement to and support of the OM&G and labour cost levels, already embeds a DATE FILED: February 6, 2026 Page 22 o...

AI summary The text refers to a Settlement Agreement that includes a reduction of $9 million in OM&G costs for 2026 and 2027, supported by customer representatives. It is part of a regulatory proceeding document filed on February 6, 2026.

101354Board Decision 12 passages
1.0 SUMMARY p. p. 7
- The EIFEL deferral, allowing NS Power to defer incremental tax expense of about $7 million if an exemption is not enacted by the Government of Canada as it has announced; - The inclusion of four Maritime Link transmission capital project...

AI summary The document outlines several adjustments to NS Power's revenue requirement and cost allocations, including reductions in operating expenses, executive compensation, and the denial of a proposed deferral of general rate application costs. It also discusses changes to the Storm Cost Recovery Rider and tariff language for the Demand Side Management Cost Recovery Rider.

[37] The terms of the settlement agreement are set out in a schedule to the agreement and provide as follows: p. p. 26
[37] The terms of the settlement agreement are set out in a schedule to the agreement and provide as follows: GRA Element Settlement Terms Cost of Service ("COS") a) The COS as set out in the Draft GRA will be included in the 2026-2027 GRA...

AI summary The settlement agreement outlines terms for the 2026-2027 GRA, including the inclusion of the Cost of Service and MEU Treatment. The agreement specifies that the Minimum System methodology will be subject to a future proceeding, and data on PHP's use of the High Voltage transmission system will be collected and disclosed. The apportionment of assessment costs from the Maritime Link remains open for future determination.

Preamble p. pp. 35-281
[50] In its response to Bates White IR-10, NS Power stated that it is forecasting a FAM liability of $10.2 million at the end of 2026 and $0.8 million at the end of 2027. NS Power also stated that at its weighted average cost of capital (W...

AI summary NS Power forecasts a FAM liability of $10.2 million in 2026 and $0.8 million in 2027, with associated interest expenses. Bates White noted that while NS Power used reasonable forecasts for fuel and purchased power, the data was dated and based on a PLEXOS model. A cybersecurity incident also hindered data retrieval.

3.3.1 Overall Costs p. pp. 43-44
3.3.1 Overall Costs [69] NS Power applied for an increase in its OM&G expenses in the test years. The OM&G expenses represent costs for operating and maintaining the utility's generation, transmission, and distribution facilities; deliveri...

AI summary NS Power has requested an increase in OM&G expenses from $297.4 million in 2024 to $351.8 million in 2026 and $357.9 million in 2027, citing reasons such as staffing increases and cost reductions agreed upon in a settlement. The increase is attributed to a forecasted net increase of 507 FTEs from 2024 to 2026.

3.3.1.1 Findings p. p. 53
above, some increased operational costs also result from Board proceedings involving various customer representatives, including the FAM Audit Dispatch Study and the Interconnection processes matter. [95] NS Power has also proposed increas...

AI summary NS Power has proposed increased OM&G costs totaling $10.2 million from 2024CR to 2026 and $1.8 million in 2027, primarily due to cyber security and technology upgrades. The Board accepts these costs as necessary and reasonable but notes that ongoing proceedings (M12273 and M12600) regarding a 2025 cyber incident may lead to findings of imprudence if warranted.

3.4.4.1 Findings p. pp. 124-126
3.4.4.1 Findings [262] In its GRA, NS Power stated that the estimated impact of adopting amortization accounting would result in annual incremental depreciation expense of $600,000 over the test years. This is primarily related to the impl...

AI summary The NS Power proposed adopting amortization accounting for five General Plant accounts, which would result in an annual incremental depreciation expense of $600,000. The Board agrees that this approach is cost-effective, as it reduces administrative overhead while maintaining accounting accuracy, and approves the proposal.

3.8 Cost of Service Study p. p. 236
d its consultants, appended as Appendix 12A(3) , jurisdictional scans, appended as Appendix 12A(4) , and memorandums, appended as Appendix 12A(5) . [Emphasis in original] [Exhibit N-9, p. 7] [577] Exhibit N-9 also included information abou...

AI summary The document references Exhibit N-9, which includes information about cost-of-service models, responses to information requests, presentations, jurisdictional scans, memos, and a formal report from NS Power's cost-of-service study consultant, Elenchus.

General Plant p. p. 236
General Plant General plant primarily consists of NS Power's investment in facilities, such as buildings structures and grounds, communication equipment, vehicles and information technology infrastructure. Currently, costs are apportioned...

AI summary NS Power proposes reallocating general plant costs above $1 million to specific functions like transmission and distribution based on allocators such as operating costs and rate base, as opposed to the current apportionment based on net book value.

Decarbonization Deferral Account p. p. 236
Decarbonization Deferral Account NS Power considers its approved decarbonization deferral account to be a rate stabilization tool and proposes that it be classified and allocated in the same manner as other rate stabilization tools. [580]...

AI summary NS Power proposes classifying its decarbonization deferral account as a rate stabilization tool. The proposed changes to cost-of-service methodologies negatively impact residential customers, increasing their costs by approximately $26 million in 2026 and $25.3 million in 2027.

[581] The parties to the settlement agreement included the following terms relating to cost-of-service methodology used to determine rates for 2026 and 2027: p. p. 236
[581] The parties to the settlement agreement included the following terms relating to cost-of-service methodology used to determine rates for 2026 and 2027: Cost of Service ("COS") a) The COS as set out in the Draft GRA will be included i...

AI summary The settlement agreement outlines the cost-of-service methodology for 2026 and 2027, including the inclusion of the Draft GRA, the use of the Minimum System methodology in future proceedings, data collection regarding PHP's use of the High Voltage transmission system, and the apportionment of assessment costs from the Maritime Link.

3.8.3 Primary Distribution System p. pp. 256-258
3.8.3 Primary Distribution System [613] If the basic customer method is not used to allocate distribution system costs between customer and demand, then Ms. Palmer recommends that the primary distribution system be classified 100% to deman...

AI summary Ms. Palmer recommends classifying the primary distribution system 100% to demand, arguing that the minimum system methodology used in the cost-of-service study incorrectly included primary distribution lines. She notes that primary infrastructure is shared and likely peaks at the same time as the system. An analysis by Concentric in 2022 shows that a significant portion of distribution system poles and conductors are part of the primary distribution system.

5.0 SUMMARY OF MAJOR FINDINGS AND DIRECTIVES p. p. 302
- Maintaining NS Power's current return on equity of 9.0%, with an earnings band of 8.75% to 9.25%. The equity thickness for rate setting purposes remains at 40.0%; - The establishment of the securitization deferral to defer depreciation e...

AI summary The proceeding outlines key directives for NS Power, including maintaining a 9.0% return on equity, establishing a securitization deferral for depreciation and financing costs related to coal plants, approving depreciation rates, and adjusting cost-of-service methodology. It also discusses the PHP Deferral account and the EIFEL deferral for potential tax expenses.

101751Reply Submission - NSPI 1 passage
Reply to Billing Directive Comments p. p. 2
Reply to Billing Directive Comments - As a starting point in providing these comments regarding the Board's Billing Directive, it is - important to reiterate that proration is not NS Power's "preferred" method. It is the only method - curr...

AI summary NS Power states that proration is the only feasible method for billing due to system limitations and high costs of alternatives. They argue that implementing a different method would require significant system changes and incur substantial capital and operational costs.

101825Board Order 8 passages
Wholesale Market Backup/Top-up Service Tariff (BUTU). p. p. 121
Wholesale Market Backup/Top-up Service Tariff (BUTU). - 2. For ATL and BUTU classes the following costs and credits - a. NS Power's plant fuel costs - b. costs of biofuels of purchased biomass generation - c. non-firm imports costs - d. ex...

AI summary The Wholesale Market Backup/Top-up Service Tariff (BUTU) outlines how fuel and other costs are classified and allocated to different classes based on their energy requirements and load factors. Fuel costs are adjusted using a revenue-to-cost ratio to align with approved rates for each class.

3.2.1 Natural Gas p. p. 121
3.2.1 Natural Gas - Natural Gas Consumed - Financial Instruments used for Hedging (including gains, losses, fees and interest charges) - Pipeline Reservation Fees, Tolls, Penalties (such as imbalance charges) - Pipeline Losses - Natural Ga...

AI summary The section outlines various financial and operational aspects related to natural gas, including consumption, hedging instruments, pipeline costs, storage fees, and GHG emission compliance program costs.

Costs directly applied: p. p. 121
Costs directly applied: - o Third Party Fuel Handling, Transportation (e.g movement between Long Term Dead Storage/Bear head and plants) and Maintenance related to Coal Piles - o Storage fees (e.g. lease, handling fees, facility fees) - o...

AI summary The document outlines various costs directly applied by Nova Scotia Power, including fuel handling, transportation, environmental compliance, and storage fees, with specific categories and accounting practices for recording these expenses.

Preamble p. p. 121
- Diesel Commodity Consumed - Transportation Costs - Quality Testing and Inventory Measurement Costs - GHG Emission Compliance Program costs Costs of this type are normally recorded in the following accounts in NS Power's Chart of Accounts...

AI summary The document outlines specific costs related to diesel consumption, transportation, quality testing, inventory measurement, and GHG emission compliance programs, and notes the accounts in NS Power's Chart of Accounts where these costs are recorded.

3.2.5 Light Starter Oil p. p. 121
3.2.5 Light Starter Oil - LFO (Light Fuel Oil) Commodity Consumed - Transportation Cost - Quality Testing and Inventory Measurement Costs - GHG Emission Compliance Program costs Costs of this type are normally recorded in the following acc...

AI summary This section outlines the costs associated with Light Fuel Oil (LFO) commodity consumption, including transportation, quality testing, inventory measurement, and GHG emission compliance program costs. These costs are recorded in NS Power's Chart of Accounts under account 502550.

3.2.7 Fuel – Limestone p. p. 121
3.2.7 Fuel – Limestone - Limestone and related transportation - Limestone Ash Hauling and Equipment Rentals - Limestone Royalties - Water Royalties Costs of this type are normally recorded in the following account in NS Power's Chart of Ac...

AI summary The section discusses fuel-related costs associated with limestone, including transportation, ash hauling, equipment rentals, and royalties. These costs are recorded in account 502650 REG FUEL LIMESTONE CONSUMED in NS Power's Chart of Accounts.

3.2.17 GHG Emission Compliance Program Costs p. p. 121
3.2.17 GHG Emission Compliance Program Costs - The cost of Fund Credits under the Nova Scotia GHG Output Based Pricing System (OBPS) emissions compliance programs. - Transaction fees for purposes of purchasing GHG OBPS Fund Credits). Costs...

AI summary The document outlines the costs associated with Fund Credits under Nova Scotia's GHG Output Based Pricing System (OBPS) emissions compliance programs, including transaction fees for purchasing credits. These costs are recorded in account 503400 REG EMISSION ALLOWANCE EXPENSE in NS Power's Chart of Accounts.

7.0 DEFINITIONS p. pp. 143-144
7.0 DEFINITIONS Actual Adjustment (Refund)/Recovery Rate – AA: is an Actual Adjustment which consists of the difference between fuel-related costs recovered from a rate class through the application of the base rates and the actual fuel co...

AI summary The text defines key terms related to fuel cost adjustments and financial calculations used in regulatory proceedings, including Actual Adjustment Rate, Balance Adjustment Rate, and Annual Weighted Average Cost of Capital. These terms are essential for understanding how fuel costs are recovered and adjusted in utility rate structures.

20260107-1Hearing Transcript — 01/07/2026 (Willett, Williams, Flemming, MacIntosh, Blair) 25 passages
OPENING STATEMENT 13 AFFORDABLE ENERGY COALITION
OPENING STATEMENT 13 AFFORDABLE ENERGY COALITION 1 has been taken. We submit that the Board could review 14 efficiency improvements rather than repeated ad hoc rate 15 increases. This approach creates incentives for utilities 16 to improve...

AI summary The Affordable Energy Coalition argues that the Board should focus on efficiency improvements rather than repeated rate increases, suggesting this would incentivize utilities to control costs and make prudent investments. It also highlights Nova Scotia Power's past mistakes and cost overruns as responsibilities of the company.

1 Scotia Power.
NSP COST OF SERVICE PANEL 39 In-ch, (Clarke) 1 Scotia Power. 6 regulation industry for 10 years, mostly in the areas of 7 cost allocation rate design. 8 In Ontario, I've prepared cost 9 allocation evidence for over a dozen distributors, as...

AI summary The text discusses Mr. Blair's extensive experience in cost allocation and rate design across multiple provinces, including evidence he has prepared for various regulatory proceedings. It also mentions his involvement in the Cost of Service Study process and the submission of a consultation report as part of the proceeding.

NSP COST OF SERVICE PANEL 45 Questions, (Deveau)
NSP COST OF SERVICE PANEL 45 Questions, (Deveau) 1 evidence but did not go to an oral hearing, 2 Okay. Q. 3 A. (Blair) which is fairly 4 common in Ontario. Very rarely does the application 5 process go to an oral hearing. 6 Okay. And when...

AI summary The text discusses a proceeding involving Nova Scotia Power (NSP) and includes testimony from Blair regarding his role as a consultant in load forecasting and cost allocation. The discussion references a previous matter involving Hydro One export transmission service charges and touches on the process of evidence submission without an oral hearing.

OPENING STATEMENT 59 NSP COST OF SERVICE PANEL
OPENING STATEMENT 59 NSP COST OF SERVICE PANEL 1 We know that there is never a good 2 participation in this process over the coming days. 3 Thank you, sir. 4 MR. CLARKE: Mr. Chair, the cost-of 5 service Panel is ready for questions. 6 THE...

AI summary The opening statement from the NSP Cost of Service Panel outlines the readiness of the panel for questioning. No questions were raised by the Consumer Advocate, Small Business Advocate, or the Affordable Energy Coalition. The Industrial Group, represented by Ms. Rudderham, will ask questions, starting with a reference to Synapse's evidence regarding the Cost-of-Service Study and the debate between Minimum System and basic cost or customer methodology.

BY MS. RUDDERHAM:
BY MS. RUDDERHAM: 1 Q. I'll just read it into the record 18 to 19. I don't believe I need to read it out. But it 19 outlines that the assumptions used in the Cost-of-Service INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS 1 Study re...

AI summary Ms. Rudderham references a Cost-of-Service Study conducted by PHP, which includes assumptions about demand forecasting at 3CP, and notes that Nova Scotia Power has used a forecast of 65 megawatts for modelling.

NSP COST OF SERVICE PANEL 77 Cr-ex, (Rudderham)
NSP COST OF SERVICE PANEL 77 Cr-ex, (Rudderham) 1 Q. And PHP was a signatory on this 1 CROSS-EXAMINATION BY MR. ROSCOE 2 Good morning. Dan Roscoe with Q. 3 Renewall Energy Inc. 4 As the province's only licensed retail 5 supplier, we're the...

AI summary The document is a transcript of a cross-examination in a Nova Scotia Power (NSP) Cost of Service Panel proceeding. The discussion centers on the submission of confidential exhibits and the request for redacted versions of SR-1, Attachment 2 and Attachment 3, which are part of the General Rate Application and Cost-of-Service Study.

Preamble
electric heating moving from oil; customer –– we've experienced significant customer growth in the domestic class. So those are reasons why that can increase, so that is one of the driving factors. Also, which we'll be talking about, is po...

AI summary The discussion focuses on the increase in costs allocated to the domestic customer class, driven largely by changes in the cost-of-service methodology. The change was prompted by a Board directive following the last General Rate Application and involves a year-long process with stakeholder input to reallocate costs based on principles of cost causation.

NSP COST OF SERVICE PANEL 97 Cr-ex, (Mahody)
NSP COST OF SERVICE PANEL 97 Cr-ex, (Mahody) methodology and the Line Loss Study, specifically, that helped the domestic class as well. So Line Loss Study produced lower line losses for the domestic class, that was an item that benefitted,...

AI summary The discussion centers on the methodology of cost-of-service studies, which are used to assign a utility's revenue requirement to customer classes based on the costs they impose on the system. The process involves functionalizing, classifying, and allocating costs according to factors like energy use and peak demand.

NSP COST OF SERVICE PANEL 99 Cr-ex, (Mahody)
NSP COST OF SERVICE PANEL 99 Cr-ex, (Mahody) 1 based on cost causation? 2 (Blair) Yes, that's correct. A. 3 Q. Mr. Willett, you mentioned a few 4 moments ago about the Board directing a cost to be 5 completed coming out of the last Rate Ap...

AI summary The discussion revolves around the process Nova Scotia Power (NSP) undertook to comply with the Board's directive to complete a Cost-of-Service Study following the 2022 Rate Application hearing. NSP engaged in stakeholder sessions with customer representatives and experts to understand and address concerns about their cost-of-service methodology.

1 material to the Application. I believe every aspect that
NSP COST OF SERVICE PANEL 107 Cr-ex, (Mahody) 1 material to the Application. I believe every aspect that 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The minimum system study is a cost analysis that estimates what the cost of the distribut...

AI summary The document discusses the Minimum System method used by Nova Scotia Power for cost analysis, where the cost of a hypothetical system with minimal equipment is considered customer-related. The remaining cost of the actual distribution system is deemed demand-related. The discussion includes a recommendation to discontinue the Minimum System method and adopt the Basic Customer method.

NSP COST OF SERVICE PANEL 113 Cr-ex, (Mahody)
NSP COST OF SERVICE PANEL 113 Cr-ex, (Mahody) 1 Q. And this exhibit also shows the 2 corresponding increases that would occur for the other 3 classes at 2 through 10. 4 A. (Willett) Increases in costs in 5 the cost of service, but you have...

AI summary The discussion revolves around the cost of service and the impact of utilizing the Basic Customer method on different classes, particularly the domestic class. The witness notes that while there are estimated increases, the exact impact requires a full revenue-to-cost ratio process to determine.

BY MR. MAHODY: Q. So N-37, page 20 in the PDF, line 16. Here Ms. Palmer has identified additional Cost- of-Service Study methods that she thinks should be reviewed as part of whatever future process occurs, and she lists out the three areas here. Has Nova Scotia Power had a opportunity to consider those, and do you have a position on whether you agree with those being part of consideration in future cost-of-service matters? A. (Williams) Thanks, Mr. Mahody. I think what the Settlement Agreement does is it expressly identifies Minimum System as being subject to what we would see as a standalone application or matter that we would bring to the Board in 2026, and that's what's described in the Settlement Agreement. And as it says in the Settlement Agreement, any party may take any position they so choose. Subsequent to the test period, the '26-'27 test period, we would not –– our expectation is
BY MR. MAHODY: Q. So N-37, page 20 in the PDF, line 16. Here Ms. Palmer has identified additional Cost- of-Service Study methods that she thinks should be reviewed as part of whatever future process occurs, and she lists out the three area...

AI summary Nova Scotia Power's representative discusses the Settlement Agreement, which identifies the Minimum System as a standalone matter for consideration in 2026. The representative notes that while parties are free to take positions in future cost-of-service matters, there is an expectation to avoid repeating the same extensive process undertaken recently, though the Minimum System may require further review.

NSP COST OF SERVICE PANEL 129 Cr-ex, (Mahody)
NSP COST OF SERVICE PANEL 129 Cr-ex, (Mahody) 1 point, Cost-of-Service Study –– a full Cost-of-Service 2 Study is being undertaken, that those matters should be 3 considered? 4 A. (Williams) I think the next time 5 a full Cost-of-Service S...

AI summary The discussion revolves around the Cost-of-Service Study, with a focus on the methodology and the need for future proceedings to determine various cost-of-service methods. There is a disagreement regarding whether these methods should be included in the 2026 filing described in the Settlement Agreement.

1 in relation to the timing to Goose Harbour, that would
NSP COST OF SERVICE PANEL 141 Cr-ex, (Mahody) 1 in relation to the timing to Goose Harbour, that would 9 MR. MAHODY: Mr. Chair, I think I'm 10 done, but if I could just have one moment? 11 (SHORT PAUSE) 12 MR. MAHODY: Thank you, Mr. Chair....

AI summary The document contains a transcript from a regulatory proceeding involving Nova Scotia Power and the Minimum System Study methodology. It discusses the classification of customer service and meter costs under the Minimum System Study and references Synapse's evidence regarding the inclusion of distribution lines in the study.

NSP COST OF SERVICE PANEL 155 Questions, (Murphy)
NSP COST OF SERVICE PANEL 155 Questions, (Murphy) referenced in Elenchus's evidence, as well as perhaps Ms. Palmer's evidence, there is reference to I think the Zero Intercept method. Is that kind of a hybrid sort of methodology that would...

AI summary The text discusses cost-of-service study methodologies, specifically referencing the Minimum System, Zero Intercept, and Basic Customer methods. It notes that the Basic Customer method is not used in Canada, while the Minimum System and Zero Intercept methods are prevalent. The discussion includes a jurisdictional scan and references to Nova Scotia Power and other entities.

Section 137
INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS 1 $1.1 billion of the $1.8 billion costs related to FAM 2 customers. 3 Q. Okay. I was going to come to 4 that. But just in terms of the column before that, sales 5 in gigawatt hours. 6...

AI summary The discussion highlights that residential customers account for about 60% of the costs under the cost of service model, while sales in gigawatt hours are approximately 50% of total sales. The conversation acknowledges that these percentages differ because cost allocation is not solely based on energy usage.

NSP COST OF SERVICE PANEL 163 Questions, (Chair)
NSP COST OF SERVICE PANEL 163 Questions, (Chair) 1 Is that fair? 2 (Blair) Yes, that's fair. A. 3 Q. And, Mr. Blair, do you agree that 4 the cost of service allocation it's not a pure science? 5 A. (Blair) That's right. It's often 6 said i...

AI summary The discussion centers on the allocation of cost of service, acknowledging its subjective nature and the use of a range of reasonableness (95% to 105%) rather than a precise 100% allocation. The residential class is shown as 97.18% under a revenue-to-cost ratio, which is considered within an acceptable range of reasonableness.

NSP COST OF SERVICE PANEL 167 Questions, (Chair)
NSP COST OF SERVICE PANEL 167 Questions, (Chair) shift in costs under the new method of $26 million to domestic customers? A. (Willett) That is correct. That's the impact of the old cost-of-service methodology compared to the new cost-of-s...

AI summary The discussion revolves around the impact of changing the cost-of-service methodology on different customer classes, particularly the shift of costs to domestic customers under the new method, and the potential offset of these changes by adopting the Basic Customer method.

NSP COST OF SERVICE PANEL 169 Questions, (Chair)
NSP COST OF SERVICE PANEL 169 Questions, (Chair) 1 earlier, there are other factors that are driving the 2 increase to the domestic class being above average, 3 outside of the cost of service as well. 4 Right. But from a cost-of Q. 5 servi...

AI summary The discussion centers on the cost-of-service model changes for the domestic class, specifically the impact of switching from the Minimum System method to the Basic Customer method. Concerns are raised about cost causation and the potential offset of other changes, with differing opinions on the approach.

NSP COST OF SERVICE PANEL 179 Questions, (Chair)
NSP COST OF SERVICE PANEL 179 Questions, (Chair) 1 would impact rates when you're making a whole bunch of 2 other changes that are impacting rates. 3 A. (Williams) Yes, and I think it's 4 recognizing that impact. So I think again, you go b...

AI summary The text discusses the impact of resolving certain issues within a proceeding, including the potential effects on the Settlement Agreement and the allocation of distribution costs using the Basic Customer method, which is noted as uncommon in Canada.

NSP COST OF SERVICE PANEL 183 Questions, (Chair)
NSP COST OF SERVICE PANEL 183 Questions, (Chair) 1 100 percent demand to the primary systems. It would be 2 fair to say that that is more closely aligned with the 3 Basic Customer method than the Minimum System method? 4 A. (Blair) Yes, fo...

AI summary The discussion revolves around the alignment of demand calculation methods with the Basic Customer method, referencing the Minimum System method and Manitoba Hydro systems. It also touches on familiarity with NARUC and its Desk Reference Manual, with agreement on a high-level overview of cost allocation and revenue requirement.

Section 151
1 to and I think it explicitly says so promote 2 conservation to make the cost of energy, cost of 3 electricity, each kilowatt hour, more expensive to promote 4 lower use of energy. So it's not 100 percent economic 5 based. 6 And the Minim...

AI summary The text discusses the rationale behind promoting energy conservation by making electricity more expensive per kilowatt hour, and questions the Minimum System method's approach to allocating costs, using examples like housing developments to illustrate conceptual differences in cost classification.

1 one incremental customer doesn't cause incremental 2 costs, but in general a number of customers do. There is 3 a cost to reach every customer and the cost of building 4 out the system to reach customers, if customers are 5 further away,...

AI summary The text discusses the controversy surrounding cost allocation in utility rate making, particularly the allocation of costs related to reaching customers and building infrastructure. It highlights that while incremental customers may not directly cause incremental costs, the cost of serving customers is still considered a key cost driver. The discussion references historical controversies in this area, including Bonbright's seminal text.

NSP DEPRECIATION PANEL 273 Cr-ex, (Mahody)
NSP DEPRECIATION PANEL 273 Cr-ex, (Mahody) 1 Mr. Wiedmayer here as well, Mr. Mahody. 19 cost of service and GRA deferral in sum total from $4 INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS 1 million down to $2 million. 2 Q. That's...

AI summary The text discusses a depreciation panel proceeding involving cost-of-service and GRA deferral estimates, with references to amounts reduced from $4 million to $2 million. The discussion includes estimates related to hydro decommissioning costs and the allocation of GRA costs.

NSP DEPRECIATION PANEL 295 Questions, (Murphy)
NSP DEPRECIATION PANEL 295 Questions, (Murphy) 1 A partial decommissioning. It's Q. 2 still a big number. It's a big number. 3 A. (MacIntosh) Yes, sir. 4 It makes the other alternative Q. 5 pretty difficult to get over the bar to be a viab...

AI summary The discussion revolves around the costs associated with partial decommissioning of a structure, emphasizing that these costs are significant regardless of whether the asset produces electricity. The argument is that these costs should be considered in rate analysis and financial planning, even if they have already been collected from ratepayers.

20260108-1Hearing Transcript — 01/08/2026 (Pecurica, Willett, Williams, Flemming, Coyne) 10 passages
I N D E X O F P R O C E E D I N G S
I N D E X O F P R O C E E D I N G S PAGE NO. January 7, 2026 U-8 To provide the calculation of the dollar affect of implementing the changes recommended in Table 8 using both ALG and ELG 273 U-9 To advise the cost of preparation of the Cos...

AI summary The document lists various items under an index of proceedings, including studies, reports, and models related to cost calculations, depreciation, and financial models. These items pertain to regulatory proceedings involving cost-of-service, line loss, and financial modeling.

NSP DEPRECIATION PANEL 357 Questions, (Chair)
NSP DEPRECIATION PANEL 357 Questions, (Chair) 1 absolutely we would see a reduction in depreciation 2 expense, but that would be offset by increased financing 3 costs. 4 Mr. Wiedmayer, I believe your firm has 5 run some models around the t...

AI summary The discussion centers on the financial implications of switching from the Equal Life Group to the Average Life Group depreciation method. While the switch would reduce depreciation expense, it would also lower the rate base and impact the revenue requirement, requiring a pro forma adjustment to accurately reflect the long-term effects.

NSP COST OF CAPITAL PANEL 409 Cr-ex, (Mahody)
NSP COST OF CAPITAL PANEL 409 Cr-ex, (Mahody) 1 Trenton Unit 5 two boiler feed and, ultimately, down at 20 in the 2020-2021 FAM audit? 21 A. (Coyne) I would have to check 22 that reference to see where that $4 million came from. I 23 don't...

AI summary The text references a discussion about a potential discrepancy involving a $4 million figure in the context of the 2020-2021 FAM audit, with a panelist indicating they need to check the source of the amount. The reference is part of a court reporting transcript.

Section 91
INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS 1 Appendix 10(a), your report; it's Figure 24. It's on page 2 49 of 87, I have, Mr. Coyne, if the paper copy. And 3 it's PDF 76. That's where I'm going. 4 And in undertaking this CAPM...

AI summary The text discusses a CAPM analysis conducted by Concentric, using the average of Canadian and U.S. MRPs. The discussion includes a reference to historical Canadian MRPs and a flotation rate of 9.06 percent, with a request to call up specific documents for further review.

NSP COST OF CAPITAL PANEL 433 Cr-ex, (Mahody)
NSP COST OF CAPITAL PANEL 433 Cr-ex, (Mahody) 1 to utilize the historical Canadian MRP, including 2 any disagreement with the Deputy Governor of the Bank of 3 Canada regarding what they were using between 1990 4 beginning in 2016 about tho...

AI summary The discussion focuses on the use of preferred measures, such as CPI-common and CPI-trimmed, in economic analysis. It notes that CPI-common became unreliable due to large historical revisions after the pandemic and was no longer used as a preferred measure starting in 2022. The reliability of the remaining preferred measures is also questioned during certain periods.

NSP COST OF CAPITAL PANEL 457 Cr-ex, (Mahody)
NSP COST OF CAPITAL PANEL 457 Cr-ex, (Mahody) 1 MR. MAHODY: Sure. 25 three decades is they have held –– used one model and they 26 held –– there are only three inputs to the CAPM model, the INTERNATIONAL REPORTING INC. CERTIFIED COURT REPO...

AI summary The discussion focuses on the analysis of the CAPM model used by NSP in determining returns, highlighting the use of constant inputs despite known fluctuations. The speaker criticizes the lack of consideration for alternative models and inputs, leading to unsubstantiated results.

1 QUESTIONS FROM MEMBER MURPHY 2 I'm just going to ask one Q. 3 question. I have a number of questions for the panel, but 4 I think the Chair and I just talked, and we'll probably 5 take a break. But I just wanted to ask one follow-up 6 qu...

AI summary Member Murphy asks Jim Coyne about the use of inflation rates in models, specifically whether inflation is considered meaningful in the analysis. Coyne responds that inflation is included in the DCF model through real GDP growth plus inflation, and confirms that a 2.1% inflation rate was used in the model.

NSP COST OF CAPITAL PANEL 549 Cr-ex, (Roscoe)
NSP COST OF CAPITAL PANEL 549 Cr-ex, (Roscoe) 1 (Williams) So I'm not when you A. 2 say sum them, Mr. Roscoe, I'm not entirely clear what you 3 mean so I'll maybe get you to help me with that. But I 4 just want to make clear that these are...

AI summary The discussion revolves around the cost of capital panel, addressing rate and cost mitigation efforts, and the accuracy of fuel forecasts. The panel discusses the impact of non-ratepayer interventions on fuel balance and the relevance of past proceedings to current rate and cost considerations in Nova Scotia.

Section 184
1 that type of thing, and those may be incremental charges 2 that we don't need to include in a deferral, but I think 3 there's just my hesitation to say that it's an 4 exhaustive list is just we need to let the process play 5 out and unde...

AI summary The discussion revolves around the ELIADC tariff and the $10,000 per month customer charge on the ELID, clarifying whether it is modelled in the GRA or proposed in the Application. There is a focus on understanding cost differences under various scenarios.

Section 230
1 following the Plan of Administration on how to develop 2 those assumptions. Whether we will over-forecast or 3 under-forecast it depends on how the market moves and how 4 things develop. 5 Q. Okay. Is the expectation that 6 there's an eq...

AI summary The discussion revolves around forecasting assumptions and the Base Cost Forecast (BCF) for test years, noting that the BCF per unit is decreasing for 2026 compared to 2025, despite overall increases in BCF. The expectation is a P-50 forecast approach, balancing over and under-forecasting based on market developments.

20260109-1Hearing Transcript — 01/09/2026 (Pecurica, Willett, WIlliams, Flemming, MacIntosh) 6 passages
1 you could claim, or is the whole thing not enacted or 14 undertaking, could I actually ask you to provide that 15 updated the August 15, 2025 updated version of the 16 EIFEL rules? Perhaps you could get more context and 17 understanding...

AI summary The text discusses an undertaking (U-17) to provide an updated version of the EIFEL rules and a reference to the Fall Economic Statement. It also mentions a Consensus Agreement where Nova Scotia Power agreed to reduce its operating expenses in 2026 and 2027, allocating a $10 million reduction to its revenue.

Section 85
1 permanent basis and still provide the level of service 2 that customers expect, then we would absolutely do that. 3 That would always be first choice. But we're not 4 again, we're not sure where these savings are going to 5 come from yet...

AI summary Nova Scotia Power acknowledges the goal of providing ongoing service but is not currently committed to reducing the 2028 forecast on a permanent basis. The 2028 forecast is acknowledged as a future projection, with the company planning to examine opportunities for cost reduction.

1 again, I'm versed in this, but I'm not the person that's
we need to call this up, but it's Exhibit N-8 at Appendix 13(c), Nova Scotia Power had indicated that it received approximately 650 inbound calls from opt-out customers back in 2024. And you estimated associated customer care expenses with...

AI summary The text discusses customer care expenses related to opt-out customers and challenges with AMI installations, including network connection issues faced by the last 3% of customers. Nova Scotia Power provided data on inbound calls and associated costs, and the discussion highlights ongoing challenges with meter connectivity.

NSP GENERAL/REGULATORY PANEL 849 Questions, (Deveau)
NSP GENERAL/REGULATORY PANEL 849 Questions, (Deveau) 1 our obligation to serve customers within Nova Scotia, and 2 we understand that it's our responsibility to provide that 3 service level and that it's our responsibility to bring 4 forwa...

AI summary The document discusses NSP's obligations under the Public Utilities Act to provide appropriate service levels and reasonable costs, as well as a review of corporate human resources costs from 2024 to 2026, referencing Grant Thornton reports and Board IR-42.

Section 169
1 finding an improved or more detailed benchmarking database 2 for corporate groups but, as of yet, we have not been able 3 to find anything that would give us nearly the level of 4 detail that we have for the operating groups as compared...

AI summary The discussion highlights challenges in benchmarking corporate groups due to lack of detailed data, and mentions a conversation with ScottMadden regarding the issue. The concern is about whether embedded costs, such as safety-related expenses, are being properly accounted for in different divisions.

NSP GENERAL/REGULATORY PANEL 869 Questions, (Deveau)
NSP GENERAL/REGULATORY PANEL 869 Questions, (Deveau) 1 expense. 19 integration," it's an increase of approximately 4.5 1 million from 2024 compliance to 2027 forecast. So a $4.1 2 million increase in the first year to 2026. 3 So here, if w...

AI summary The text discusses an increase in expenses related to integration, with a projected rise of approximately $4.1 million from 2024 compliance to 2027 forecast, highlighting a $4.5 million increase from 2024 to 2026.

20260112-1Hearing Transcript — 01/12/2026 (Pecurica, Willett, Flemming, MacIntosh) 1 passage
1 Q. Sure. 10 for Nova Scotia Power in order to provide service to 11 customers. 12 Eleven (11) percent over this Q. 13 period. 14 (Flemming) That's right. A. 15 In addition to that, there is there 16 are costs related to Nova Scotia Power...

AI summary The text discusses Nova Scotia Power's operational challenges, including increased costs due to shared services with Emera, difficulties in attracting skilled employees, and investments in administrative software to streamline recruitment processes. These factors are highlighted as part of the company's broader operational and financial considerations.

20260112-2Hearing Transcript — 01/12/2026 (Brown, Griffiths, Musco, Morgan) 5 passages
LIST OF EXHIBITS
LIST OF EXHIBITS EXHIBIT NO. DESCRIPTION PAGE NO. 8 9 10 11 12 13 14 Review NSPI's operating, maintenance and general costs (OM&G), including labour, materials, contracts, pension costs, insurance, membership dues, subscription costs I'm g...

AI summary The text lists exhibits related to the review of NSPI's operating, maintenance, and general (OM&G) costs, including labour, materials, contracts, pension costs, insurance, and other expenses. There is also a brief exchange about audio issues during a hearing.

DOANE GRANT THORNTON PANEL 1105 Questions, (Deveau)
DOANE GRANT THORNTON PANEL 1105 Questions, (Deveau) 1 prepared to accept their assumption as fact. 2 A. (Brown) Yes, we were focused on 3 recalculating and the methodology, not just the 4 mathematical recalculation. We weren't looking for...

AI summary The discussion revolves around the methodology used in recalculating expenses, focusing on the lack of analysis regarding efficiency savings, prudence, and reasonableness of costs from strategic or organizational goals. The speaker confirms that no such analysis was conducted.

Cr-ex, (Power)
Cr-ex, (Power) 1 So in your evidence, when you told the 2 Board that changing depreciation procedure doesn't change 3 the total depreciation amount recovered, you would not 4 have incorporated the impact on rate base and therefore 5 the im...

AI summary The testimony discusses the impact of changing depreciation procedures on rate base and future financing costs. The witness confirms that while changing depreciation methods does not alter total depreciation, it may affect financing costs. However, accurately predicting these impacts is difficult due to the need for numerous assumptions.

Section 64
INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS 1 filed by Mr. Wiedmayer, I think was U-12, that wouldn't 2 help you with making that –– those calculations? 3 A. (Madsen) If you bring up that 4 undertaking, perhaps, I could take a l...

AI summary The discussion revolves around cost differentials in transmission station equipment calculations using different methodologies (ALG and ELG), with the expert suggesting that using the ELG methodology would generally result in a slightly lower impact on the numbers.

Questions, (Chair)
Questions, (Chair) 1 then used the growth rate that I've seen for Nova Scotia 2 Power over the last three years, which has been averaging 3 roughly 3 percent since close to 2024, the rate of growth 4 in that cost increases quite significan...

AI summary The discussion highlights concerns about the growth rate of Nova Scotia Power's costs, the impact of income tax on revenue calculations, and discrepancies in depreciation rates between the ELG and ALG procedures. It also notes that using net present value analysis reveals a significant financial disadvantage to the ELG procedure.

20260113-1Hearing Transcript — 01/13/2026 (Pecurica, Willett, Williams, Flemming, MacIntosh) 12 passages
In-ch, (Mahody)
In-ch, (Mahody) 1 request that Ms. Palmer be accepted as an expert qualified 10 evidence N-37(c) and we'll start on page 1, please. 11 BY MS. POWER: 12 Q. So Ms. Palmer, it looks like 13 there are 21 pages here. Does this complete your wri...

AI summary The document is a proceeding transcript where Ms. Palmer is being questioned about her role as an expert witness in Nova Scotia Power's cost-of-service consultation process, which began in January 2024. She confirms her participation from summer 2024 through November 2024 and mentions that customer advocacy groups had their own expert consultants.

Section 45
Cr-ex, (Power) 1 the exchange between Mr. Blair and the Board Chair on day 2 one of this hearing. And the Board Chair asked Mr. Blair 3 if he would agree that the classification of distribution 4 costs as demand or customer related is one...

AI summary The text discusses a hearing where Mr. Blair and Ms. Palmer discuss the classification of distribution costs and the use of the Minimum System Method in Canadian jurisdictions. Ms. Power references a cost-of-service study filing by Nova Scotia Power and asks Ms. Palmer about her disagreement with Mr. Blair's testimony.

Cr-ex, (Power)
Cr-ex, (Power) 1 Q. Ms. Palmer, you say a couple of 2 things in your Summary and Conclusion section. So you 3 say: 4 5 6 7 8 9 10 11 Nova Scotia Power's use of the minimum size method for classifying substantial portions of its distributio...

AI summary The testimony discusses concerns about Nova Scotia Power's use of the minimum size method in its cost-of-service study, arguing that it does not reflect cost causation principles and inflates residential customer costs. The witness recommends switching to the Basic Customer Method and suggests that certain methodologies be reconsidered in a future proceeding.

Cr-ex, (Power)
Cr-ex, (Power) 1 matter of judgment if geographic if geography is not an 2 allocator in the cost-of-service study, which it is not, 3 then the choices are customer and demand, and choosing 4 customer systematically allocates a disproportio...

AI summary The text discusses the allocation of infrastructure costs in a cost-of-service study, emphasizing that allocating based on customer class disproportionately affects the residential sector. It references an exhibit from a Connecticut case and mentions the Office of the Consumer Council as a party involved in the proceeding.

Section 54
INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS paragraph starting with "Although". Although the Authority acknowledges OCC's concerns with the Minimum System Study approach, it is not clear that the basic customer method is a super...

AI summary The Authority acknowledges concerns with the Minimum System Study approach but finds the basic customer method inadequate. It accepts the premise that the number of customers is a reasonable proxy for demand-unrelated costs and supports the Minimum System Study approach in this proceeding.

Section 65
INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS 1 it says, "Peak-load Carrying Capacity...Adjustment." And 2 it says: 3 A Minimum System has a certain load carrying 4 capability which can be viewed as...demand- 5 related. As a resul...

AI summary The text discusses the concept of 'Peak-load Carrying Capacity Adjustment' and how demand-related costs are allocated among customers, particularly noting that small users, such as residential and small commercial customers, may be disproportionately affected if no adjustment is made.

Section 66
would define kind of small 21 users? 22 A. I have not tried to define small 23 users. The results of the Cost-of-Service Study, you 24 know, would probably show which classes have a relatively lower demand impact on the system. Q. And then...

AI summary The discussion centers on the Cost-of-Service Study and the proposal for utilities to conduct their own PLCC analysis, with specific reference to NSP's position on Minimum System versus Basic Customer. The conversation touches on the potential impact of these analyses on utility filings.

Section 68
Cr-ex, (MacAdam) 1 provide an alternate output to the cost-of-service model 2 where all distribution costs are 100 percent demand- 3 related, but we don't have any analysis on the record of 4 classifying just primary distribution as 100 pe...

AI summary The discussion revolves around the classification of distribution costs as demand-related and references Ontario Energy Board directions on cost allocation. The witness is questioned about whether an analysis was conducted on factors like minimum required clearances and equipment standards in Nova Scotia.

1 A. I did not.
INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS Q. And in speaking with my friend concerning the numbers set by Ontario I believe you said that the number was perhaps dated or old. A. Oh, I just mean simply that I understand this wa...

AI summary The discussion revolves around the Minimum System used by utilities and its potential growth over time, referencing the use of current equipment rather than historical data. It also touches on Nova Scotia Power's Cost-of-Service Study and a Consensus Agreement related to rate classes and demand costs.

Section 104
1 that the Cost-of-Service Study itself will be stable for 2 some period of time and there won't be substantial 3 changes? 4 A. I you're asking me if it's my 5 opinion that it is important that the Cost-of-Service 6 Study is stable over ti...

AI summary The discussion revolves around the stability of the Cost-of-Service Study methodology over time, with a party arguing that it should evolve as the power system changes, contrary to the assumption that it should remain stable for a period following its determination.

1 principles, and that is not necessarily Cost-of-Service 9 participation in the beginning of the collaborative 10 process. MR. MacDOUGALL: Agreed. MEMBER DEVEAU: And she stepped back 11 12 13 from that process, as I understand, consistent...

AI summary The discussion revolves around the cost-of-service principles and a Consensus Agreement, with references to disagreements among parties. The conversation involves Mr. MacDougal and Member Deveau, addressing issues related to cost-of-service and the Minimum System.

1 MR. MacDUFF: And it's page 1659 of
INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS proposed during the Cost-of-Service Study process in 2024. I can I would like to quote from my own evidence. I don't know if we need to call it up, but I say that the company has not e...

AI summary The discussion centers on the Cost-of-Service Study process in 2024, with the witness stating that the report by Nova Scotia Power Inc. and Elenchus provides rationale for changes to the study, but questions remain about how stakeholder concerns were addressed.

Disclaimer: These summaries were generated by AI from the filings they describe. We take care to make them accurate, but errors are possible - and they aren't advice. Only the filings themselves are the record: if you're relying on something here, confirm it against the source documents or the Nova Scotia Energy Board's own record. Full disclaimer →