Topic/Matter Intersection

Topic:"Cost Considerations" in M12619

Matter: Nova Scotia Power Inc. - 2026 Annual Capital Expenditure (ACE) Plan - $284 million
314 passages 36 documents

Cost Considerations across all matters →

N-1Application - Redacted 133 passages
Section 258
1 • L-6511 was substituted by L-6002, L-6503 2 3 The following progress was made on distribution widening under D010: 4 5 • 62 percent of planned 2025 work has been completed as of October 31, 2025 6 • 80 percent completion is forecast for...

AI summary Progress on distribution widening under D010 shows 62% completion as of October 31, 2025, with 80% expected by year-end. Increased vegetation management costs are attributed to higher traffic control, labor, and expanded scope of work, including enhanced fire monitoring and targeting specific tree species to mitigate risks from wind events.

Section 349
Project 4 24 20 18 17 % Defined/Complete 100% 100% 80% 72% 68% Percentage towards Class Estimate Comments: This project is being filed as a Class 3 estimate. The defined deliverables for this project indicate that 80% of Class 3 deliverabl...

AI summary This document outlines a Class 3 estimate for a project, indicating that 80% of deliverables are completed. A 15% contingency is included to cover execution risks, market changes, and feedback from governing authorities such as the Department of Fisheries and Transport Canada.

Section 422
TOTAL - DIRECT & INDIRECT CONSTRUCTION COSTS with CONSTRUCTION CONTINGENCY $ 6,260,000 THIS OPINION OF PROBABLE COSTS IS PRESENTED ON THE BASIS OF EXPERIENCE, QUALIFICATIONS, AND BEST JUDGEMENT. IT HAS BEEN PREPARED IN ACCORDANCE WITH ACCE...

AI summary The document outlines total construction costs, including direct and indirect expenses with a construction contingency of $6,260,000. It explains the basis for the Opinion of Probable Costs and defines various budget classes and contingency allowances, such as Design Development Contingency, Construction Contingency, Escalation/Inflation allowance, and Location Factor.

Section 428
S, UNFORESEEN LABOUR AND MATERIAL ADJUSTMENTS AND THE LIKE ARE BEYOND THE CONTROL OF CBCL LIMITED. AS SUCH WE CANNOT WARRANT OR GUARANTEE THAT ACTUAL COSTS WILL NOT VARY FROM THE OPINION PROVIDED. Note 1 A Design Development Contingency is...

AI summary The text discusses budget definitions and contingency allowances in project management. It highlights that unforeseen labor and material adjustments are beyond the control of CBCL Limited, and outlines different types of budget classes and their purposes, including design development and construction contingencies.

Section 444
Not Applicable (NA) NR NR Instrumentation/Control System Discipline Drawings Not Applicable (NA) NR NR Mechanical Discipline Drawings Not Applicable (NA) NR NR Total # Deliverables for 3 15 13 12 12 this Project % Defined/Complete 100% 100...

AI summary The text discusses a Class 3 estimate for a project, noting that 87% of deliverables are complete, with a 10% contingency selected to account for execution risks such as technical field advisor costs, labor, and contract support. The document is part of the 2026 ACE Plan and includes redacted information.

Section 459
install and that no additional work will be needed to insure proper installation and runout. Any additional work on the stub shaft will be quoted as extra work upon discovery. • The standard NDE performed on these blades is a Magnetic Part...

AI summary The text outlines standard non-destructive testing (NDE) procedures for blades, including Magnetic Particle Inspection (MPI) and Liquid Penetrant Inspection (LPI), as well as conditions for additional work and costs. It also mentions the impact of the COVID-19 pandemic, though no details are provided.

Section 467
re not ideal for coating the stack or completing concrete refurbishment work could also lead to increased costs due to rework. Delays due to weather will also increase the cost of equipment rentals. Date: December 12, 2025 Page 219 of 782...

AI summary The text discusses potential cost increases due to delays in coating the stack and concrete refurbishment work, as well as delays caused by weather, leading to higher equipment rental costs. It also references a 2026 ACE Plan with a contract number and document instructions.

Section 541
the pricing in place is a fixed cost awarded via request for proposal (RFP) through a design/build contract. Multiple vendors were engaged during the RFP to ensure best pricing and solution quality Date: December 12, 2025 Page 296 of 782 R...

AI summary The text discusses a fixed-cost pricing model established through a request for proposal (RFP) under a design/build contract, with multiple vendors involved to ensure competitive pricing and quality solutions. The document is part of the 2026 ACE Plan and contains redacted confidential information.

Section 553
CI Number: C0068888 Project No. : After Tax PV of Revenue PV of EVA / Alternative WACC Requirement NPV Rank IRR Disc Pay A Continuous Ash Hauling System 5.77% 3,245,613 -2,528,869 1 #NUM! 0.0 years B Do Nothing 5.77% 4,435,140 -3,419,061 2...

AI summary The text presents financial analysis of two alternatives: Continuous Ash Hauling System and Do Nothing. It includes metrics such as After Tax WACC, PV of Revenue, PV of EVA/NPV, Rank, IRR, and Disc Pay. There is a 30% variance on capital spend for both alternatives, with corresponding changes in PV of Revenue and PV of EVA/NPV.

Section 557
TUC3 Continuous Ash Hauling System Continuous Ash Hauling System Avoided Applicable Year Total Revenue Operating Costs Expenses Capital CCA UCC CFBT Taxes CFAT PV of CF Discount Factor CNPV 2025 - (227,519.0) - - - - (227,519.0) 65,980.5 (...

AI summary The document presents a financial analysis of the TUC3 Continuous Ash Hauling System from 2025 to 2033, including revenue, operating costs, capital expenditures, and net present value (NPV) calculations over time.

Section 621
r be liable for more than the price charged for such material as may prove defective, and no payments shall be withheld by Buyer pending adjustment of liability or amount of cost of alleged errors. For specific questions Date: about line D...

AI summary The text outlines terms and conditions related to liability and payment adjustments for defective materials, specifying that buyers should not withhold payments pending resolution of liability or cost adjustments. It also includes a quotation and contact information for Gavin McInnis from Nova Scotia Power - Tuft's Cove.

Section 641
owned engine. A new engine would be a magnitude of cost higher when compared to this engine refurbishment and still would require the same inspection and maintenance cost going forward. Contingency: Contingency for this project has been de...

AI summary The text discusses the cost implications of refurbishing an engine versus replacing it with a new one, noting that refurbishment is significantly cheaper. It also outlines the contingency plan, which is based on expert judgment, similar projects, and guidelines, with a 15% contingency allocated for risks related to unforeseen costs during disassembly and inspection.

Section 669
contingency of 15 percent. Risks intended to be covered by this contingency include unforeseen material and contract cost increases, schedule setbacks, and possible complications during execution. Date: December 12, 2025 Page 364 of 782 RE...

AI summary The text discusses a contingency plan with a 15% buffer to address potential risks such as material and contract cost increases, schedule delays, and complications during execution. It also includes a project cost estimate input checklist and maturity matrix for a transformer addition project.

Section 676
l Plan & Drawings Not Applicable (NA) NR Foundation / Structure (Tower) Discipline Drawings Preliminary (P) NR S/P P Tower / Structure Location / Spotting Complete (C) NR S/P P C C Instrument Datasheets Complete (C) NR NR/S P P/C C Electri...

AI summary The project is being filed as a Class 3 estimate with 91% of deliverables completed. A 15% contingency was selected to account for unforeseen material and contract cost increases, schedule setbacks, and execution complications.

Section 700
% 15% $ 2,394,816 $ 359,222 Sub-Total $ 359,222 Vehicle Overhead Vehicle Labour AO $ 44,214 Sub-Total $ 44,214 Administrative Overhead Labour AO $ 74,174 Contractor AO $ 190,854 Sub-Total $ 265,028 SUB-TOTAL (no AO, AFUDC) $ 2,754,038 TOTA...

AI summary The document presents a detailed financial breakdown of costs associated with vehicle and administrative overheads, including labour and contractor expenses, and provides a total cost figure including AO and AFUDC. Notes explain the methodology used for calculating labour figures and note small discrepancies due to rounding.

Section 713
e: December 12, 2025 Page 390 of 782 REDACTED REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026 ACE Plan C0053214 Page 3 of 5 Date: December 12, 2025 Page 391 of 782 REDACTED REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 202...

AI summary This document outlines a project cost estimate input checklist and maturity matrix for the 76W-T1 Transformer Replacement project under the 2026 ACE Plan. It includes fields for project maturity levels and estimate classifications.

Section 725
REDACTED 2026 ACE Plan C0070586 Page 3 of 5 Capital Project Detailed Estimate Location: Transmission CI#: C0070586 Title: L6536 Switch Replacement Execution Year: 2026 Completed Similar Description Unit Quantity Unit Estimate Total Estimat...

AI summary The document outlines a capital project detailed estimate for the L6536 Switch Replacement under the 2026 ACE Plan. It provides a breakdown of labor costs for various tasks involved in the project, including engineering, project management, design, and site supervision, with a total estimated cost of $118,277.

Section 739
100% 100% 59% 44% 44% towards Class Estimate Comments: This project is being filed as a Class 3 estimate. The defined deliverables for this project indicate that 59% of Class 3 deliverables are completed. A contingency value of 20% was sel...

AI summary The document discusses the filing of a Class 3 estimate for a project, with 59% of deliverables completed. A 20% contingency was included to manage risks such as contractor availability, delays in long-lead material delivery, and material cost increases due to tariff threats.

Section 745
support is limited as vendor is no longer in business. Replacement is the most reliable and cost-effective solution to ensure long-term performance and environmental protection. Contingency Statement Contingency for this project has been d...

AI summary The document discusses the replacement of a transformer due to the vendor no longer being in business, emphasizing that replacement is the most reliable and cost-effective solution for long-term performance and environmental protection. A contingency of 15 percent has been applied to the project based on internal expert judgment and previous experience.

Section 765
Not Applicable (NA) NR Foundation / Structure (Tower) Discipline Drawings Not Applicable (NA) NR Tower / Structure Location / Spotting Not Applicable (NA) NR Instrument Datasheets Complete (C) NR NR/S P P/C C Electrical Discipline Drawings...

AI summary The project is being submitted as a Class 3 estimate with 97% of deliverables completed. A 10% contingency was selected to account for risks such as overtime work, material costs, and contract cost increases.

Section 807
NR Tower/Structure Location/Spotting Not Applicable (NA) NR Instrument Datasheets Not Applicable (NA) NR NR/S Electrical Discipline Drawings Complete (C) NR NR S/P P/C C Instrumentation/Control System Discipline Drawings Not Applicable (NA...

AI summary This project is being filed as a Class 3 estimate with 85% of deliverables completed. A 10% contingency was selected to cover risks like equipment replacement, transformer load balancing, and additional tree trimming along service lines.

Section 814
Lot 1 $ 11,200 $ 11,200 Sub-Total $ 11,200 Meals & Entertainment Meals Lot 1 $ 1,600 $ 1,600 Sub-Total $ 1,600 Other Goods & Services Contingency % 10% $ 953,227 $ 95,323 Sub-Total $ 95,323 Vehicle Overhead Vehicle Labour AO $ 52,787 Sub-T...

AI summary The document outlines various financial line items including meals and entertainment, contingency expenses, vehicle overhead, and interest capitalized. These items are listed with their respective costs and sub-totals.

Section 815
$ - Sub-Total $ 32,456 Administrative Overhead Labour AO $ 88,397 Contractor AO $ 66,284 Sub-Total $ 154,681 SUB-TOTAL (no AO, AFUDC) $ 1,048,550 TOTAL (AO, AFUDC included) $ 1,288,474 Original Cost $ 227,486 Note 1: The labour figures not...

AI summary The document provides a summary of administrative overhead costs, including labour and contractor expenses, and includes a total budget with and without administrative and construction allowances. The original cost and notes on salary averaging and rounding differences are also included.

Section 823
NR Instrument Datasheets Not Applicable (NA) NR NR/S Electrical Discipline Drawings Not Applicable (NA) NR NR Instrumentation/Control System Discipline Drawings Not Applicable (NA) NR NR Total # Deliverables for this Project 5 22 20 20 20...

AI summary The document outlines a Class 3 project estimate with 87% of deliverables completed. A 10% contingency was selected to cover risks such as equipment replacement, rock breaking, and additional tree trimming.

Section 839
C C C Data Architecture Complete (C) P P C C C Security Assessment Complete (C) NR P C C C Privacy Impact Assessment Not Applicable (NA) NR Information Systems / Telecommunication Drawings Preliminary (P) NR P Total # Deliverables for this...

AI summary The project is submitted as a Class 3 estimate, with 79% of deliverables completed. A 10% contingency is included to address risks such as foreign currency fluctuations, additional tariffs, resource rate increases, and potential overtime work.

Section 840
re foreign currency fluctuations, additional tariffs or duties due to ongoing uncertainties in international supply chains, resource rate increases and potential overtime work that may be required. Date: December 12, 2025 Page 434 of 782 R...

AI summary The text discusses potential cost factors such as foreign currency fluctuations, additional tariffs, resource rate increases, and potential overtime work. It also references the 2026 ACE Plan and includes a checklist for IT/OT projects developed by NSPI.

Section 848
178 Administrative Overhead Labour AO $ 63,306 Sub-Total $ 63,306 SUB-TOTAL (no AO, AFUDC) $ 10,363,978 Federal Funding Offset $ (10,159,521) TOTAL (AO, AFUDC included) $ 267,941 Original Cost N/A Note 1: The labour figures noted above are...

AI summary This document presents an administrative overhead breakdown, including labour costs and federal funding offsets, as part of a 2026 ACE Plan. It outlines budget figures and notes that the data is for budgeting purposes only.

Section 855
prietary Information Includes Description, PowerPlant (PP), Detailed Cost Estimate (DCE), and Economic Analysis Model (EAM) (or Total Cost of Ownership (TCO) for IT projects). (3) = System Security

AI summary The text references proprietary information related to power plant details, cost estimates, and economic analysis models. It also mentions system security as a key consideration.

Section 944
2026 ACE Plan Appendix C Page 9 of 9 NS Power Final Cost Report 3rd Quarter Overview - as of September 30, 2025 This report includes a list of all FIN capital work orders that have fallen outside the timelines under the CEJC. (Within six m...

AI summary The 2026 ACE Plan Appendix C lists capital work orders that have fallen outside the timelines under the CEJC. Projects such as the 2021 Padmount Replacement Program and the 6P Mobile Substation Rewind are either completed or forecast to be outside the allowed FIN tolerances. Final cost applications are planned for submission in 2026.

Section 948
REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Appendix D Page 6 of 179 New Updates - Scope Change • As discussed in the 2025 ACE Plan process, there is opportunity to clarify the definition of a Scope Change application in the...

AI summary The document discusses updates to the definition of a Scope Change application in the Capital Expenditure Justification Criteria (CEJC) as outlined in the 2026 Annual Capital Expenditure (ACE) Plan. It emphasizes the importance of clarifying when a project's intent changes, and outlines examples that would trigger a Scope Change application.

Section 950
REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Appendix D Page 8 of 179 New Updates – FIN • FINs often take more time to process than other capital applications, due to required final costing activities. • In particular, undersp...

AI summary The 2026 ACE Plan Appendix D discusses challenges in processing FINs, particularly underspent ones, due to delays in final costing and unused contingency. It recommends adjusting the underspend threshold and extending the timeline for filing to improve regulatory efficiency.

Section 955
and actual spend is less than $1 million threshold, then no Routine ATO application for the specific sub-routine. Final Cost Application (FIN) 33 of 54 51 of 113 Substantive Amended underspend threshold from -5%/-$250,000 to - Requirements...

AI summary The document outlines adjustments to the Final Cost Application (FIN) process, including changes to the underspend threshold and timeline for filing. It also details minor edits to the Thermal section and Appendix A of the Nova Scotia Power Routine Program. These updates are part of the 2026 Annual Capital Expenditure (ACE) Plan.

Section 959
26 11.1 General Requirements ......................................................................................... 26 11.2 Capital Applica on Requirements ....................................................................... 26 11.3...

AI summary This document outlines requirements related to capital applications, authorization to overspend, final cost applications, and routine expenditures. It includes sections on general requirements, capital cost incurrence, and confidentiality. The content is structured into numbered sections with subtopics detailing specific procedures and classifications.

Section 960
.......................................................................................... 38 16.0 Confiden ality ................................................................................................................. 39 17.0 Cap...

AI summary The document outlines confidentiality considerations and details the Capital Expenditure Justification Criteria, including sections on innovation, health and safety, environment, land use, and system design.

Section 963
). Discounted Payback Period: This is a measure of economic value. It represents the number of years required to pay back the ini al capital cost of a project. It measures the levered payback period. DiscreƟonary Project: Investments that...

AI summary The text discusses the Economic Analysis Model (EAM) used by Nova Scotia Power Inc. to calculate the present value of revenue requirements and economic value of projects. It also defines terms such as 'Discounted Payback Period' and 'Discretionary Project'.

Section 965
an: A long-term planning process and framework within which the costs and benefits of both demand and supply side resources are evaluated to develop the least total cost mix of u lity resource op ons. InformaƟon Request (IR): A request fro...

AI summary This document outlines Nova Scotia Power Inc.'s capital planning and capital expenditure justification criteria, emphasizing the evaluation of demand and supply-side resources, the role of the Investment Review Team, and the use of metrics like IRR in decision-making.

Section 968
2026 ACE Plan Appendix D Page 19 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Summary Document NPCC Emergency Opera on Criteria A-3, is not considered a Special Protec on System. Conven onally sw...

AI summary This document outlines Nova Scotia Power Inc.'s capital planning and capital expenditure justification criteria. It defines the Total Cost of Ownership (TCO) as the sum of upfront capital costs and operating expenses over an asset's useful life. It also explains Unforeseen and Unbudgeted (U&U) capital items, which are not included in prior or current ACE Plans. The Weighted Average Cost of Capital (WACC) is used in the Economic Analysis Model (EAM) to assess the Net Present Value (NPV) of capital projects.

Section 973
s of the capital approval process. This begins during the development and submi al of the ACE Plan and con nues un l the project is complete and receives final cost approval. NS Power is commi ed to: • Delivering effec ve and efficient servic...

AI summary The Capital Expenditure Justification Criteria (CEJC) ensures NS Power uses consistent economic, financial, and technical standards to justify capital spending, aiming to maximize customer benefits and minimize rate impacts. The process begins with the submission of the ACE Plan and continues until final cost approval.

Section 978
REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Appendix D Page 27 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Summary Document for the capital project are further defined. All ranking...

AI summary Nova Scotia Power Inc. outlines its capital planning and expenditure justification criteria, emphasizing the review process by an Investment Review Team. Projects are ranked based on criticality and condition, with colors indicating priority and risk levels. Multiple factors may influence rankings, and red indicates high priority.

Section 988
wing are typical inputs into the model: • Capital investment profile • Opera ng cash flows, including avoided costs The model calculates the following: • Revenue requirement • Income tax associated with the capital expenditures • Discounte...

AI summary The document outlines a model used to evaluate capital investments, including revenue requirements, income tax, discounted net cash flow, and economic indicators like NPV and IRR. Avoided costs are calculated using probabilities of failure, capacity factors, and replacement energy costs, with inflation used as an escalator for future years.

Section 989
infla on as an escalator will be more closely examined and discussed with stakeholders. Month DD, YYYY Page 19 of 54 Date: December 12, 2025 Page 484 of 782 REDACTED REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Appendix D Page...

AI summary The document discusses the use of an economic analysis model (EAM) for capital expenditure justification, highlighting its simplicity, consistency, and ability to provide immediate economic insights. It also mentions limitations, such as the lack of monthly cash flow entry, and the inclusion of sensitivity analyses to test variances in capital spend and project timing.

Section 990
ty on what is included in the costs comprising each alterna ve. Addi onal clarifying notes, if necessary, can be wri en onto the “Notes/Comments” sec on on the first page/tab of the EAM. Administra ve Overhead (AO) - Project capital cost a...

AI summary The document outlines the inclusion of administrative overhead (AO) in the revenue requirement analysis for capital projects and discusses the potential impact of removing the AO credit on economically justified projects. It emphasizes the need for careful evaluation of AO credits to ensure appropriate project recommendations.

Section 998
2026 ACE Plan Appendix D Page 35 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Summary Document 8.0 Financial Parameters The capital program is financed through a combina on of debt and equity. Th...

AI summary This section discusses the financial parameters used by Nova Scotia Power Inc. (NSPI) in its capital planning, including the weighted average cost of capital (WACC) and its use in calculating the Allowance for Funds Used During Construction (AFUDC). It emphasizes the importance of financial factors such as cost of capital, depreciation, inflation, and investment risk in economic analysis.

Section 1000
separate, or revised capital applica on). • Unforeseen and Unbudgeted (U&U) capital projects. These projects are not included in the ACE Plan and are filed separately for Board approval. • Planned and Advanced (P&A) capital projects. These...

AI summary This document outlines the requirements for Nova Scotia Power Inc. (NSPI) to obtain approval from the Nova Scotia Energy Board (NSEB) for various types of capital projects, including Unforeseen and Unbudgeted (U&U), Planned and Advanced (P&A), Authority to Overspend (ATO), Scope Change, and Final Cost (FIN) applications.

Section 1005
OR 6350 - Assets Not Used or Useful), and the percentage of the asset pool it represents. Month DD, YYYY Page 27 of 54 Date: December 12, 2025 Page 492 of 782 REDACTED REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Appendix D Pa...

AI summary Nova Scotia Power outlines criteria for capital expenditures, emphasizing contingency guidelines, cost support (supplier quotes, contracts), and cost-benefit analyses (engineering reports, business cases) to justify projects. The document details requirements for risk registers, prior experience, and technical reasoning.

Section 1006
to: • Engineering/condi on assessment reports • Independent consultant reports • Planning studies • Business cases Cost Benefit Analysis - This may include but is not limited to: • The Economic Analysis Model; including inputs, assump ons,...

AI summary Nova Scotia Power Inc. outlines required documentation for capital expenditure justification, including cost-benefit analyses, technical studies, procurement records, performance data, and stakeholder engagement materials. The process emphasizes comprehensive due diligence and alignment with regulatory criteria.

Section 1011
Deleted: c • Cost support for the Scope Change request (if applicable); and Deleted: ATO • Updated economic analysis and / or produc on cos ng modelling results (if applicable). 12.3 RouƟne Capital ATO Rou ne capital ATOs are based on the...

AI summary The text outlines requirements for Routine Capital ATO submissions by Nova Scotia Power Inc., including variance thresholds for sub-roune budgets, NSEB approval processes, and documentation requirements. It references the 2026 ACE Plan and capital expenditure justification criteria.

Section 1012
2026 ACE Plan Appendix D Page 45 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Summary Document 13.0 Final Cost ApplicaƟon (FIN) Requirements Individual capital item projects that have final costs...

AI summary Nova Scotia Power Inc. outlines criteria for submitting Final Cost Applications (FIN) to the Nova Scotia Energy Board (NSEB) when capital projects exceed +5%/$250,000 or -10%/$500,000 cost variances. Projects below $1 million are exempt from FIN requirements. Submissions must include updated approval sheets, revised project descriptions, and variance explanations.

Section 1013
ec ng the Final Cost of the project; • Line by line project account variances explana ons will be provided for those accounts with material variances; and • Project scope variances. All projects should be final costed within twelve months...

AI summary Nova Scotia Power Inc. outlines criteria for capital asset retirement, including normal wear and tear and inadequacy. The document emphasizes final cost submissions within 12 months of project in-service dates, with exceptions requiring justification. Projects in ATO positions must comply with rate base rules, removing costs from rate base if not filed timely.

Section 1016
2026 ACE Plan Appendix D Page 48 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Summary Document 15.0 RouƟne Expenditures 15.1 Foreword NS Power’s Rou ne Program (the Program) is organized and mana...

AI summary Nova Scotia Power Inc. outlines its Routine Expenditures Program under the ACE Plan, detailing recurring capital spending for equipment replacement, productivity improvements, and system growth. The program requires NSEB approval annually, with justification based on historical data and project budgets. Expenditures below materiality thresholds are classified as operational costs.

Section 1020
179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Summary Document 17.0 Capital Expenditure JusƟficaƟon Criteria 17.1 IntroducƟon - General ConsideraƟons The following considera ons are used to evaluate...

AI summary Nova Scotia Power outlines criteria for justifying capital expenditures, emphasizing evaluation of alternatives, technology suitability, cost-effectiveness, compliance with reliability standards, and minimizing operational costs. The approach prioritizes meeting industry performance norms and selecting the least-cost option that satisfies requirements.

Section 1032
anned inspec on/performance programs and industry standards. An economic analysis is carried out such that the least cost op on mee ng all the requirements and constraints specified shall be selected. Thermal produc on assets shall be purc...

AI summary Nova Scotia Power Inc. outlines criteria for capital expenditures, emphasizing economic analysis to select the least-cost option meeting requirements. Assets are replaced if failure risks are high, and investments are justified by cost reductions, financial criteria, and optimized timing. Heat rate improvements and capacity increases are evaluated using system models, with labour impacts calculated annually.

Section 1044
.......................... 25 6.9 Capital Budge ng................................................................................................. 25 6.10 ACE Plan Projects ....................................................................

AI summary The document outlines capital budgeting processes, ACE Plan projects, financial criteria for capital planning, economic analysis of alternatives, and requirements for NSEB approval, focusing on capital application procedures and authorization to overspend policies.

Section 1045
tal Item ATO.................................................................................. 49 12.2 Individual Capital Item Scope Change .................................................................. 49 12.3 Rou ne Capital ATO ........

AI summary The text outlines a document structure covering capital expenditure management, cost application requirements, asset remittance, routine expenditures, and justification criteria. It emphasizes regulatory processes for financial compliance, capital item scope changes, and confidentiality protocols within a regulatory proceeding context.

Section 1050
ital project that is approved and ini ated in one calendar year, but the investment of capital carries over into the subsequent year(s). Capital Cost: The cost required to complete a capital project. Capital Cost Allowance: A yearly deduc...

AI summary The text defines key terms related to capital expenditures, including Capital Cost, Capital Cost Allowance, and the Capital Expenditure Justification Criteria (CEJC). It distinguishes between essential and discretionary capital projects, emphasizing economic rationale and risk implications for NS Power.

Section 1051
nical scenarios, and therefore “doing nothing” results in li le or no risk to NS Power’s system. Month DD, 2025 Page 4 of 113 Date: December 12, 2025 Page 523 of 782 REDACTED REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Append...

AI summary The document outlines Nova Scotia Power Inc.'s approach to capital planning and expenditure justification, including the Economic Analysis Model (EAM) for evaluating projects based on economic, environmental, and regulatory criteria.

Section 1054
cts including project scope, jus fica on, budget, approvals and actual project informa on. The so ware can be used to research informa on on past projects and forecast project ac vity into the future. ProducƟon CosƟng Model: A system model...

AI summary The text defines key terms related to project management, capital expenditures, and system stability in energy operations. Concepts include routine capital items, safety projects, scope definitions, and the Special Protection System (SPS), which maintains system stability through load adjustments. A Production Costing Model is also described for forecasting energy costs.

Section 1055
ty, acceptable voltages or power flows. Automa c under-frequency load shedding as defined in the Month DD, 2025 Page 6 of 113 Date: December 12, 2025 Page 525 of 782 REDACTED REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Append...

AI summary Nova Scotia Power Inc. outlines capital expenditure justification criteria, defining Total Cost of Ownership (TCO) as upfront and lifecycle costs of capital assets. Unforeseen and Unbudgeted (U&U) projects are those requiring immediate approval outside prior ACE Plans due to unplanned needs, distinct from planned projects (P&A).

Section 1056
t year, are not U&Us despite not being referenced in prior ACE Plans (these are designated as P&A projects). A U&U is submi ed because the capital item cannot wait un l the next ACE Plan for approval. Weighted Average Cost of Capital (WACC...

AI summary Defines U&U (Unforeseen and Unbudgeted) items and explains WACC (Weighted Average Cost of Capital) calculation by NS Power's Finance Team for use in EAM (Economic Analysis Model) to assess capital projects.

Section 1060
2026 ACE Plan Appendix D Page 76 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document 3.0 AdministraƟon This document will be maintained by NS Power. Pursuant to the Board’s 2016 ACE Pl...

AI summary Nova Scotia Power Inc. outlines its commitment to managing capital expenditures via the Capital Expenditure Justification Criteria (CEJC), aligned with the Board’s 2016 ACE Plan Decision. The document emphasizes stakeholder review, Board filings, and adherence to economic, financial, and regulatory standards for capital project approvals.

Section 1067
s represent projects that carry a higher risk than the projects in the green rankings. While the colours provide a visual illustra on of risk, the ranking numbers are the focus of the ranking process. A lower ranking suggests a lower level...

AI summary The document outlines Nova Scotia Power's approach to capital expenditure justification, emphasizing risk-based project rankings and asset management. Lower-ranked projects may still be prioritized if asset conditions deteriorate, with decisions guided by NS Power staff and third-party experts.

Section 1068
Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document ASSET MANAGEMENT CRITICALITY & CONDITION RISK ALIGNMENT MATRIX Criticality (Based on Consequence) CRITICALTY VALUE RISK MATRIX Health & Safety Environment Business Susta...

AI summary The document outlines criteria for justifying capital expenditures, emphasizing asset management risks related to health, safety, environment, and business sustainability. A risk matrix aligns criticality based on consequences like regulatory breaches, safety incidents, and environmental impacts, with criticality values assigned to different risk levels.

Section 1076
ital projects follow disciplined capital planning, budge ng and execu on processes. Figure 1.0: Summary of NS Power Capital Planning, Financing & Budge ng 6.4 AccounƟng Policies and Procedures NS Power’s Accoun ng Policies and Procedures a...

AI summary NS Power's accounting policies and procedures require Board approval, with revisions submitted to the NSEB. The company uses USGAAP for external financial reporting and follows capital expenditure justification criteria. The document outlines guidelines for classifying expenditures as capital or operating expenses.

Section 1078
efit to customers while allowing NS Power to meet its objec ves. The capital planning cycle for any given year typically begins early in the preceding year and concludes at the filing of the ACE Plan. Although the oversight and management...

AI summary Nova Scotia Power Inc. (NS Power) outlines its capital planning process, emphasizing centralized oversight and annual ranking of projects based on health and safety, regulatory compliance, customer reliability (SAIDI, SAIFI), requirement to serve, and economic factors (NPV, ACHI). Projects are reviewed to align with strategic goals and ensure justification.

Section 1079
I, CAIDI • Requirement to Serve • Economics: Based on Revenue Requirement, Net Present Value of the Project, Levelized Cost Analysis, $/ Avoided Customer Hours of Interrup on (ACHI) Each year, the capital program includes those projects wh...

AI summary The document outlines Nova Scotia Power Inc.'s capital expenditure justification categories, emphasizing projects essential for health, safety, regulatory compliance, and service delivery. Economic evaluation methods include revenue requirement analysis, net present value, and levelized cost analysis. Capital decisions are influenced by factors like resource availability, maintenance cycles, and cash flow constraints.

Section 1081
(IRR) and discounted payback period for each alterna ve Each year an updated version of the model is provided to users with current tax rates, deprecia on rates and WACC. With respect to avoided costs, avoided costs are calculated using pr...

AI summary Nova Scotia Power (NS Power) outlines methods for evaluating project economics using avoided costs, including capacity factors, maintenance, and replacement energy forecasts. Projects are deemed economic if avoided costs exceed capital costs, with a payback period defined as when benefits equal avoided costs. Inflation is used as an escalator for year six onward, and NS Power will compare inflation estimates to fuel forecasts for ongoing validation.

Section 1084
pursuant to the 2016 ACE Plan Terms of Consensus, NS Power also provides a version of the overall revenue With respect to various alterna ves considered within an EAM, project developers will requirement table based on stakeholder assump o...

AI summary NS Power's revenue requirement table, based on stakeholder assumptions and EAM, includes administrative overhead. Capital expenditures equaling depreciation do not affect rate base or revenue requirement, as rate base remains stable when capital spending matches depreciation. Developers must clarify alternative cost structures in EAM.

Section 1088
.4 Total Cost of Ownership Deleted: 5 In the Board’s 2022 ACE Plan decision, the Board provided the following direc ve: [T]he Board directs NS Power to use a TCO for IT projects over $1 million when an EAM is not provided, whether or not a...

AI summary The Board's 2022 ACE Plan decision mandates NS Power to use Total Cost of Ownership (TCO) for IT projects over $1 million when an Economic Analysis Model (EAM) is unavailable. TCO encompasses capital and operating costs over an asset's useful life, aiding value-for-money comparisons. The TCO timeframe must align with the IT asset's expected useful life.

Section 1090
ing process because it is at this stage that NS Power assesses future scenarios and commits the financial and physical resources needed to achieve its objec ves. The process consists of the following: 1. Consolida ng the es mated cost for...

AI summary Nova Scotia Power Inc. (NS Power) outlines its Annual Capital Expenditure (ACE) Plan process, which involves consolidating project costs, developing the ACE Plan, and re-evaluating projects post-approval. The ACE Plan must align with the Capital Expenditure Justification Criteria (CEJC) and is approved by NS Power’s Executive Team and the Nova Scotia Energy Board (NSEB). Projects must answer three questions to justify inclusion.

Section 1092
nditures for the replacement of and addi ons to equipment for delivering electrical energy from points on the transmission system to customers served at voltages below 69 kV. General Plant: Includes expenditures for computer so ware, compu...

AI summary The document outlines Nova Scotia Power Inc.'s categorization of capital expenditures into Essential (required by law, safety, or environmental mandates) and Discretionary (non-essential projects). It emphasizes that Essential projects include compliance with regulations, safety initiatives, and environmental efforts, while Discretionary projects are not legally mandated. The text references the 2026 ACE Plan and the Capital Expenditure Justification Criteria.

Section 1093
2026 ACE Plan Appendix D Page 94 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document 2. Emergency Projects that usually arise as a result of an unforeseen event. These projects must be...

AI summary Nova Scotia Power Inc. categorizes capital expenditures into emergency, technical, and discretionary projects. Emergency and technical projects are mandatory for system reliability, while discretionary projects are economically driven with a 'do nothing' alternative. Discretionary projects may reduce revenue requirements but are not essential for safety or reliability.

Section 1101
nalyses Income tax is included in the economic analysis of capital projects. Month DD, 2025 Page 33 of 113 Date: December 12, 2025 Page 552 of 782 REDACTED REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Appendix D Page 100 of 17...

AI summary The document outlines Nova Scotia Power Inc.'s approach to capital expenditure justification, emphasizing the inclusion of income tax in economic analyses. It distinguishes between tax depreciation (capital cost allowance) and rate-making depreciation, noting that the latter is used for revenue requirement calculations while the former affects taxable income.

Section 1102
in the calcula on of taxable income or cash flows. It is recognized in the calcula on of revenue requirement. Capital Cost Allowance CCA is deprecia on for tax purposes. CCA is a deduc on against taxable income. Capital Cost Allowance is b...

AI summary The text explains Capital Cost Allowance (CCA) as a tax depreciation method distinct from plant depreciation. It emphasizes NS Power's need to secure investment capital by maintaining investor confidence and ensuring financial soundness of capital projects through rigorous analysis.

Section 1103
sa sfy NS Power that, in addi on to being economic, it is a financially sound investment. Month DD, 2025 Page 34 of 113 Date: December 12, 2025 Page 553 of 782 REDACTED REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Appendix D P...

AI summary Nova Scotia Power Inc. outlines capital planning priorities, emphasizing essential projects over discretionary ones. It discusses investment risk, noting that uncertainty increases with project duration and inherent risks tied to project-specific unknowns.

Section 1105
ACE Plan Appendix D Page 102 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document 9.0 Economic Analysis of AlternaƟves 9.1 IntroducƟon The guiding principle of economic analysis is to s...

AI summary Nova Scotia Power Inc. outlines its approach to economic analysis of alternatives for capital expenditures, emphasizing cost-effectiveness and value for customers. The analysis includes evaluating traditional and non-traditional options, estimating revenue contributions, and using methods like net present value and sensitivity analysis to identify the least costly alternatives.

Section 1106
d generator capacity factors in the EAMs for a period of five years. NS Power uses an es mate of infla on as an escalator for years six (6) onward to determine future year avoided costs. On an annual basis, NS Power will compare its es mat...

AI summary NS Power uses inflation as an escalator for avoided costs beyond five years, with annual comparisons to fuel forecasts. Financial parameters like AFUDC, book depreciation, and cost of capital are critical for evaluating capital expenditures. Discrepancies between inflation estimates and fuel forecasts may trigger stakeholder discussions.

Section 1107
assessed on the asset. Cost of Capital: The weighted average cost of all capital employed by NS Power. Taxes: The taxes payable by NS Power on its earnings and the capital it employs to finance projects. Capital Cost Allowance: Deprecia on...

AI summary The document outlines Nova Scotia Power Inc.'s Capital Planning & Capital Expenditure Justification Criteria, detailing cost components for economic analysis, including relevant costs, cost estimates, by-product receipts, and unequal lives. It emphasizes evaluating revenue requirements and capital project impacts.

Section 1108
The es mate of the costs and benefits of a capital project should show the difference in revenue requirement as a result of undertaking the project. 9.1.3.2 Cost EsƟmates Reliable es mates and forecasts are vital to the capital investment d...

AI summary The text outlines principles for estimating capital project costs and benefits, emphasizing accurate revenue requirement differences. Guidelines stress focusing on future post-tax revenues, differential costs, and opportunity costs to ensure realistic capital expenditure decisions.

Section 1109
be used more than one way, it has an opportunity cost. In general terms, an opportunity cost is the benefit lost by taking one ac on as opposed to another. It is the revenue requirement generated by an investment project that is of primary...

AI summary The text discusses economic analysis of capital expenditures, emphasizing revenue requirement and accurate payment estimation. It defines opportunity costs, distinguishes between internal and external payments, and outlines criteria for cost allocation in Nova Scotia Power Inc.'s capital planning process.

Section 1110
wn from stores or spares do create payments to an outside en ty when they are replaced and must be included in the es mate. 9.1.3.3 Receipts from the sale of by-products A by-product is any physical result of an alterna ve which is not a p...

AI summary The text discusses financial considerations for capital investments, including payments from replacing assets, credits from by-product sales, and methods for comparing projects with unequal lifespans (e.g., chain replacements or terminal values). By-product revenues reduce operating & maintenance costs in revenue requirement calculations.

Section 1111
When an ac ve market exists for a capital asset, such as an automobile, the poten al net receipts from sale of the asset must be used as the terminal value. 2. When no ac ve market exists for a retained asset, such as a distribu on line, t...

AI summary The document outlines methods for determining terminal values of capital assets, distinguishing between active market scenarios (using potential net sale receipts) and non-active market scenarios (using straight-line proration of replacement costs). It provides an example involving a distribution line with 33% remaining service life and $450,000 replacement cost, assigned a $150,000 terminal value. Terminal values are included in economic cost comparisons as receipts.

Section 1112
isons as receipts. 9.1.4 Analysis Period Depending on the nature of the capital investment, the analysis melines will vary. 9.1.4.1 The Planning Horizon - Economic Life The criterion to es mate the life of a project is the con nued ability...

AI summary The text outlines criteria for determining the economic life of capital investments, emphasizing the interplay between physical, technological, and product market lifespans. It defines economic life as the shortest of these periods or when cost differences between alternatives become negligible, highlighting the need for comprehensive analysis of project viability.

Section 1113
e market, its economic life has ended for the organiza on as soon as the manufacturer ceases to produce the product, market the product, or provide spares and services. Month DD, 2025 Page 40 of 113 Date: December 12, 2025 Page 559 of 782...

AI summary The document outlines Nova Scotia Power Inc.'s approach to calculating Net Present Value (NPV) for capital expenditure decisions, emphasizing the time value of money, discounting future costs to the present, and using the cost of capital as the discount rate to ensure investment recovery and return. It highlights the importance of revenue requirements in investment decisions, independent of financing methods.

Section 1114
ing the cost of capital as the discount rate automa cally provides for not only the recovery of the investment, but also a return on the investment at least equal to the cost of capital. A er the es mates have been converted to their prese...

AI summary The text describes Nova Scotia Power's use of the Economic Analysis Model (EAM) to evaluate projects through net present value (NPV) calculations and sensitivity analysis. It emphasizes NPV as a tool for comparing alternatives and identifying risks from input assumptions, with sensitivity analysis assessing how variations in estimates affect project economics.

Section 1119
When mul ple projects relate to the same asset, or ini a ve Jus fica on Criteria Including: they should be grouped as a package.¶ • Sub Criteria (when applicable) • Descrip on of why the project is being undertaken (i.e. Why do this projec...

AI summary The text outlines criteria for grouping related capital projects and evaluating their justification, including project necessity, timing, methodology, and affiliate involvement. It specifies parameters for identifying related projects based on asset, unit, or location.

Section 1121
tract terms & condi ons • Management’s best es mate based on previous experience or related projects Addi onal Informa on required to jus fy the project - This may include but is not limited to: • Engineering/condi on assessment reports •...

AI summary Nova Scotia Power Inc. outlines criteria for justifying capital expenditures, requiring engineering reports, economic models, performance data, and technical details. The process emphasizes thorough documentation and analysis to ensure project viability and alignment with strategic goals.

Section 1125
ect amount; • Cost support for the ATO request; and • Updated economic analysis and / or produc on cos ng modelling results (if applicable). 12.2 Individual Capital Item Scope Change Scope Change applica ons are intended to request Board a...

AI summary The document outlines procedures for handling scope changes in capital projects, requiring Board approval and combining applications if ATO/FIN thresholds are exceeded. It emphasizes cost support for ATO requests and updated economic analysis for capital expenditure justification.

Section 1128
2026 ACE Plan Appendix D Page 117 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document 13.0 Final Cost ApplicaƟon (FIN) Requirements Individual capital item projects that have final cos...

AI summary Nova Scotia Power Inc. outlines requirements for Final Cost Applications (FIN) when capital projects exceed cost variance thresholds (+5%/$250,000 or -10%/$500,000). Submissions must include updated approvals, revised project descriptions, variance explanations, and scope changes. Projects below $1 million do not require a FIN.

Section 1136
179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document 17.0 Capital Expenditure JusƟficaƟon Criteria 17.1 IntroducƟon – General ConsideraƟons The following considera ons are used to evaluate...

AI summary Nova Scotia Power Inc. outlines capital expenditure justification criteria, emphasizing evaluation of alternatives, technology suitability, cost analysis, compliance with reliability standards, and selection of the least-cost option meeting requirements. The Integrated Resource Plan (IRP) is referenced as a framework for decision-making.

Section 1152
ed na onal standards of stability and flood management capability for exis ng structures, or where accepted criteria of "due diligence" for public and environmental safety cannot be met. • Generator stators will be rewound when there is a...

AI summary NS Power outlines procedures for generator stator maintenance and thermal asset replacement, emphasizing insulation testing, economic justification for capital expenditures, and compliance with Nova Scotia's Renewable Electricity Standards. Decisions prioritize energy value over costs and align with renewable energy mandates.

Section 1153
at the least cost op on mee ng all the requirements and constraints specified shall be selected. Month DD, 2025 Page 67 of 113 Date: December 12, 2025 Page 586 of 782 REDACTED REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Appen...

AI summary Nova Scotia Power Inc. outlines criteria for capital expenditures, emphasizing cost reduction, system optimization, and economic analysis. Key factors include failure probability, heat rate improvements, capacity increases, labor impacts, and forced outage rate modeling using system dispatch and economic analysis models.

Section 1154
genera on, o en at a higher cost than the exis ng genera on. These costs are es mated using the probabilis c produc on model and incorporated into the Economic Analysis Model. 17.8 System Design Nova Sco a Power’s transmission system is di...

AI summary Nova Scotia Power Inc. estimates generation costs using a probabilistic production model integrated into the Economic Analysis Model. The transmission system is classified into primary, secondary, and electrically remote categories with distinct design criteria. NS Power adheres to NPCC Directory #1 for bulk power system design, ensuring alignment with interconnected grid standards.

Section 1160
ther transmission plant so as to eliminate NS Power’s requirement for the plant in ques on. • Replace the transmission plant as to maintain NS Power’s transmission system. • Any repairs, upgrades or modifica ons will be costed as per the m...

AI summary The document outlines Nova Scotia Power's approach to transmission and distribution system upgrades, emphasizing cost justification for capital expenditures and adherence to service provision requirements. It details criteria for replacing transmission infrastructure, cost calculation standards, and the integration of distribution systems with customer service needs.

Section 1165
t feeders has been fully u lized. In addi on, cable ra ngs for normal and emergency condi ons should be determined by reference to the “Underground Standards Manual”. • Conductors Overhead conductors are considered to be overloaded when th...

AI summary The document outlines procedures for identifying and addressing overloaded equipment on Nova Scotia Power Inc.'s distribution system, referencing specific manuals and criteria for conductor loading, equipment ratings, and economic justification of solutions.

Section 1166
2026 ACE Plan Appendix D Page 142 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document For overloading equipment problems the costs are iden fied such that the least cost op on mee ng a...

AI summary Nova Scotia Power Inc. outlines criteria for addressing overloaded equipment and deteriorated conductor issues. Overloaded equipment solutions prioritize least-cost options, including replacement or system reconfiguration. Conductor replacement is justified by safety risks, outage levels, or economic factors, with failure to meet any criterion sufficient for replacement.

Section 1168
2026 ACE Plan Appendix D Page 143 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document • Lineworker Safety – General Linework When tests indicate that the torsional duc lity of individu...

AI summary Nova Scotia Power Inc. outlines criteria for conductor replacement based on safety (torsional ductility testing), economic analysis (energy losses, maintenance costs), and physical deterioration (galvanizing coating loss). Replacements are justified when conductors fail technical standards or economic evaluations show cost-effectiveness over their remaining life.

Section 1170
2026 ACE Plan Appendix D Page 144 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document The protec on of the distribu on plant and public and employee safety is provided in Distribu on E...

AI summary Nova Scotia Power Inc. outlines criteria for capital expenditures to protect distribution systems, ensuring safety, service continuity, and economic justification. The process evaluates costs for solutions like protective devices, reconductoring, and system upgrades, emphasizing cost-effective measures to prevent transformer/capacitor failures.

Section 1172
6 ACE Plan Appendix D Page 145 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document • Grounding – Economic Jus fica on Procedure To reduce the earth poten al the costs are iden fied suc...

AI summary Nova Scotia Power Inc. outlines capital expenditure justification criteria for grounding, joint use agreements, highway relocation, radio interference voltage, and voltage unbalance. Costs include labor, materials, and compliance with regulations like DEP 5.50 and the Radio Communication Act. Joint use agreements with Bell Aliant aim to reduce costs for both parties.

Section 1173
r other similar methods. Voltage Unbalance Expenditures may be required due to viola on of the criteria outlined in DEP 5.50 "Distribu on Feeder Balancing" on NS Power's system. Alterna ve methods of solving this problem would include phas...

AI summary The text outlines capital expenditure requirements for addressing voltage unbalance, flicker from motor starting, and wood pole retreatment under NS Power's criteria. It references DEP guidelines for distribution feeder balancing and voltage flicker, emphasizes customer responsibility for flicker mitigation, and details conditions for wood pole retreatment using approved preservatives.

Section 1175
REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Appendix D Page 147 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document Pole Retreatment - Economic JusƟficaƟon Procedure The...

AI summary Nova Scotia Power Inc. outlines procedures for pole retreatment based on structural integrity studies and sets metering equipment standards requiring Measurement Canada (MC) Type Approval and periodic verification under S-E-02 specifications. The approach emphasizes cost-effective capital expenditures and compliance with regulatory metering requirements.

Section 1176
nd Re-verifica on of Electricity Meters", before being placed in service. Meters are also brought in from ac ve service on a periodic basis for re-verifica on according to this standard. • Meters being purchased at the present me for kWh m...

AI summary The document outlines meter verification standards, replacement conditions, and capital expenditure justification criteria for Nova Scotia Power Inc. It emphasizes economic considerations in selecting standard meters due to re-verification costs and discusses Measurement Canada's testing requirements for accuracy and compliance.

Section 1177
2026 ACE Plan Appendix D Page 148 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document • When meters fail the criteria specified in the Standard, depending upon the economics (i.e. labo...

AI summary Nova Scotia Power Inc. outlines procedures for meter replacement and repair based on economic evaluations, including directives from Measurement Canada and cost comparisons between repair and replacement options. Decisions depend on factors like labor/material costs, spare parts availability, and MC orders.

Section 1178
lity, the costs to repair the meter at a manufacturer's facility. Included in these costs are labour, material, expenses, overhead, shipping and any other relevant costs. • Meters which fail re-verifica on according to the document S-E-02,...

AI summary The text outlines cost considerations for repairing failed electricity meters, including labor, materials, and depreciation practices. It also describes NS Power's capital expenditure justification criteria for building facilities, emphasizing safety, asset protection, and cost-effective modifications.

Section 1179
& Capital Expenditure JusƟficaƟon Criteria Detailed Document • To eliminate condi ons which, in NS Power's opinion, cons tute hazards to NS Power's personnel or to the general public; • To meet NS Power's obliga ons to third par es or to c...

AI summary NS Power outlines criteria for capital expenditures, emphasizing hazard elimination, regulatory compliance, asset protection, and facility maintenance. Economic justification procedures evaluate building projects based on lifecycle costs, productivity impacts, and compliance with codes.

Section 1180
ojects will be cost jus fied over the life of the building and all costs taken into account (labour, material, expenses, administra ve overhead, interest and all other relevant costs). • Furniture and equipment will be replaced on an equiv...

AI summary Nova Scotia Power Inc. outlines criteria for justifying capital expenditures, emphasizing comprehensive cost analysis over a building's lifecycle, including operational, construction, and safety-related expenses. Projects must consider factors like staffing impacts, environmental compliance, and long-term operational costs.

Section 1181
and management, temporary reloca ons, contractor costs, re rement of old facili es) • Cost of preliminary inves ga on, study and engineering • Relevant safety and environmental issues • Long range needs (business requirements of the invest...

AI summary The text outlines cost considerations for infrastructure investments, emphasizing factors like safety, long-term needs, and selecting the least-cost option. It defines telecontrol and telecommunications facilities critical for supervising and protecting the Bulk Power System via SCADA and remote monitoring.

Section 1183
ng NS Power staff; rent or lease facili es and provide services using NS Power staff; rent or lease facili es and contract to others for services; and variants of the above as appropriate. Each alterna ve will be subject to full life cycle e...

AI summary NS Power evaluates alternatives for replacing facilities and services, prioritizing net present value (NPV), compliance with industry reliability standards (NPCC/NERC), and operational cost efficiency. Alternatives are ranked based on lifecycle economic analysis, including capital, lease, and operational costs.

Section 1185
ate the purchase, replacement or upgrade of Informa on Applica on and Hardware Systems at NS Power: Month DD, 2025 Page 86 of 113 Date: December 12, 2025 Page 605 of 782 REDACTED REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Ap...

AI summary Nova Scotia Power Inc. outlines criteria for evaluating the repair, upgrade, or replacement of Information Application and Hardware Systems. Decisions are based on capacity, security, service level requirements, and economic analysis comparing repair, system upgrades, or replacement options to meet business needs.

Section 1186
eliminate NS Power's requirement for the plant in ques on. • Replace the Informa on Applica on and Hardware System as to maintain current business requirements. • Any repairs, upgrades or modifica ons will be costed as per the manufacturer...

AI summary The text outlines requirements for replacing NS Power's information application and hardware system, emphasizing total cost of ownership (TCO) analysis for repairs, upgrades, and new systems. It also classifies vehicles into transport and work categories, noting their roles in service delivery.

Section 1188
b func ons change and new technologies evolve, a different vehicle may be specified. Vehicle expenditures and decisions on vehicle maintenance and replacement are the responsibility of Fleet Services. The Fleet Services group provides predi...

AI summary NS Power uses lifecycle costing to evaluate vehicle replacement decisions, with Fleet Services managing maintenance and replacements. The approach prioritizes economic efficiency based on predictive maintenance, age, and mileage. Capital expenditures for equipment replacements are categorized under routine programs, varying annually in scope.

Section 1198
9 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document Appendix B: Capital Item DocumentaƟon Policy & Review Requirements ObjecƟve To specify the documenta on required to provide reasonable as...

AI summary Nova Scotia Power Inc. outlines a policy requiring detailed documentation for all capital expenditures to ensure customer benefit, regulatory compliance, and accountability. The policy emphasizes evaluating alternatives, analyzing costs, and maintaining records for transparency and historical reference in capital project management.

Section 1199
port capital decisions, including development, jus fica on, cost analysis and spending. Month DD, 2025 Page 95 of 113 Date: December 12, 2025 Page 614 of 782 REDACTED REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Appendix D Pag...

AI summary Nova Scotia Power Inc. outlines its capital planning process, requiring analysis of alternatives and documentation of infeasible options. A two-tier review process is mandated, with Level 1 involving project managers and departmental approvers evaluating projects against Capital Expenditure Justification Criteria.

Section 1201
ng that the item meets the technical and financial criteria contained in the Capital Expenditure Jus fica on Criteria at the me the project is approved. Documenta on Requirements: Sufficient documenta on will be maintained to provide reasona...

AI summary The document outlines requirements for capital expenditure justification, emphasizing documentation to ensure compliance with NS Power's financial and technical criteria. It details review levels for processes like ACE Plan approval and capital spending, with oversight by NS Power and the Nova Scotia Utility and Review Board.

Section 1203
2026 ACE Plan Appendix D Page 165 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document Exhibit A Note: The descrip ons provided are intended to be used as guidelines. The actual file co...

AI summary The document outlines Nova Scotia Power Inc.'s capital planning and expenditure justification criteria, detailing authorization levels, analysis of alternatives, and capital item detail requirements. It emphasizes structured approval processes, including divisional and corporate approvals, and evaluates spending against the ACE Plan and forecasts.

Section 1205
- Why do the project? - Why now? - Why this way? - References - legisla on, regula ons Reason for over or under expenditure, final cos ng - Descrip on D) Economic Analysis Analysis output including: - Suppor ng documenta on for x x revenue...

AI summary The document outlines capital expenditure justification criteria for Nova Scotia Power Inc., emphasizing economic analysis, technical/financial criteria, and supporting documentation for revenue, costs, and project scope changes. It references the NSEB and other entities, focusing on expenditure reasoning and compliance with regulatory standards.

Section 1206
Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document DescripƟon Contents Level 1 2 Budget es mates x Other relevant informa on - (content will vary) x Examples include: - Regula ons, acts, cod...

AI summary The document outlines Nova Scotia Power Inc.'s capital expenditure justification criteria, emphasizing budget estimates, regulatory compliance, engineering studies, permits, and cost control processes. It includes supporting documents like outage reports, engineering assessments, and cost monitoring frameworks for capital planning.

Section 1225
2026 ACE Plan Appendix E Page 2 of 17 Mersey Hydro Update Non-Confidential 1 TABLE OF CONTENTS 2 3 1.0 INTRODUCTION .............................................................................................................. 3 4 2.0 SUST...

AI summary The document outlines the Mersey Hydro Update as part of the 2026 ACE Plan Appendix E, covering investment sustainability, project development, NPV analysis, and upcoming IRP considerations. Sections include redevelopment, decommissioning costs, and stakeholder engagement, though content is partially redacted.

Section 1227
1 1.0 INTRODUCTION 2 3 NS Power owns and operates the Mersey Hydro System (MHS), a series of six hydroelectric 4 stations and a lake storage diversion along a 21km reach of the Mersey River. The 2026 ACE Plan 5 focuses on sustaining capita...

AI summary NS Power is updating the 2026 ACE Plan to address sustaining investments for the Mersey Hydro System (MHS) while evaluating long-term options via the Integrated Resource Plan (IRP). The Board directed NS Power to include NPV analyses comparing decommissioning, partial decommissioning, and redevelopment options, along with assumptions, in the ACE Plan application following the next depreciation study.

Section 1228
conducted since the filing of the 2025 ACE Plan related to evaluating 26 and costing the MHS decommissioning and partial decommissioning options. 27 28 10. The Board directs NS Power to include cost estimates for further preliminary 29 eng...

AI summary The Nova Scotia Energy Board (NSEB) directs Nova Scotia Power Inc. (NS Power) to include detailed cost estimates for Mersey system updates in its 2026 ACE Plan, including preliminary engineering, stakeholder engagement, environmental studies, and procurement costs. These estimates must also be incorporated into NS Power’s NPV analysis comparing the Mersey Redevelopment Project to decommissioning options.

Section 1247
1 future of the Mersey Hydro System (MHS). While the analysis includes simplified assumptions 2 for replacement energy and capacity costs, these do not represent a comprehensive system level 3 evaluation. A complete review combining decomm...

AI summary The text discusses the redevelopment costs of the Mersey Hydro System (MHS), noting that current estimates use simplified assumptions and require a comprehensive system-level evaluation. A detailed analysis combining decommissioning, redevelopment capital estimates, and system modeling will be conducted as part of the upcoming Integrated Resource Plan (IRP) process to ensure accurate cost comparisons.

Section 1251
decommissioning projects. 27 28 Boreas Heritage revisited the 2018 archaeological costings and assumptions for all hydro assets in 29 the MHS. The revised study incorporated updated hourly rates, field methodologies, and regulatory Page 12...

AI summary Boreas Heritage revisited 2018 archaeological costings for hydro assets in the Mersey Hydro Station (MHS), incorporating updated hourly rates and methodologies. The review focuses on decommissioning projects and regulatory considerations.

Section 1256
1 5.0 UPCOMING IRP CONSIDERATIONS 2 3 NS Power’s 2020 Integrated Resource Plan included a detailed evaluation of the MHS using both 4 the NS Power Decision Analysis (DA) Model and E3’s RESOLVE capacity expansion model. The 5 analysis compa...

AI summary NS Power's 2020 and Evergreen IRP analyses concluded that rebuilding Mersey Hydro Station (MHS) is more economical than decommissioning, citing its role in system reliability and decarbonization. However, NPV values alone omit full replacement costs, necessitating a comprehensive review. The 2025/2026 IRP will update MHS evaluation with refreshed load and emissions assumptions.

Section 1263
Scenario TOTAL or NPV 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Partial Decommissioning Total Capital Investment $ 624,440,000 $ - $ - $ 1,500,000 $ 2,500,000 $ 2,500,000 $ 26,080,000 $ 32,590,000 $ 54,850,000 $ 48,1...

AI summary The text presents financial scenarios for partial and full decommissioning, redevelopment, and sustaining CAPEX through redevelopment, showing total capital investments and NPV (Net Present Value) figures from 2026 to 2038. All scenarios report negative NPVs, indicating projected financial losses.

Section 1264
391 $ 994,699 $ 887,769 $ 905,525 NPV (CAPEX) $ (79,222,501) Total Redevelopment and Sustaining $ 1,374,842,402 $ 9,673,500 $ 15,210,000 $ 9,609,750 $ 9,909,750 $ 9,200,000 $ 15,497,877 $ 41,726,783 $ 71,511,131 $ 60,515,523 $ 43,010,391 $...

AI summary The text presents financial data including NPV (Net Present Value) calculations for CAPEX, energy value, avoided capacity costs, and total benefits across multiple years. Assumptions include 2% inflation and 190,000 MWh average Mersey production (2015-2024). Key figures highlight redevelopment costs, energy value, and overall NPV outcomes.

Section 1265
190,000 2015-2024 average Mersey production (MWh) 2% Inflation rate (matches HIP) Marginal cost of elec $ 81.57 $ 84.15 $ 87.07 $ 105.19 $ 107.29 $ 109.44 $ 111.63 $ 113.86 $ 116.14 $ 118.46 $ 120.83 $ 123.25 $ 125.71 Marginal cost of capa...

AI summary The text presents marginal cost data for electricity and capacity from 2015-2024, showing increasing costs over time, and references a 5.08% WACC rate. It also mentions the 2026 ACE Plan Appendix E Attachment 1, indicating financial planning context.

Section 1268
lopment and Sustaining $ 1,374,842,402 $ 74,753,635 $ 70,055,868 $ 51,970,950 $ 57,060,362 $ 76,662,597 $ 71,366,579 $ 55,851,568 $ 79,157,599 $ 69,972,186 $ 56,063,829 $ 79,219,406 $ 61,583,091 $ 5,187,596 NPV (CAPEX) $ (639,115,806) Tota...

AI summary The text presents financial data from a redevelopment project, including NPV for CAPEX, energy value, and avoided capacity costs. Assumptions include a 2% rate and marginal electricity costs. The overall NPV is negative, suggesting potential financial challenges.

Section 1269
Marginal cost of elec $ 128.23 $ 130.79 $ 133.41 $ 136.07 $ 138.80 $ 141.57 $ 144.40 $ 147.29 $ 150.24 $ 153.24 $ 156.31 $ 159.43 $ 162.62 Marginal cost of capacity $ 146.00 $ 149.00 $ 152.00 $ 155.00 $ 158.00 $ 161.00 $ 164.00 $ 167.00 $...

AI summary The document presents marginal cost data for electricity and capacity from 2025 to 2026, showing increasing trends. It references the 2026 ACE Plan Appendix E and includes a WACC rate of 5.08%. Portions of the text are redacted as confidential.

Section 1271
Scenario TOTAL or NPV 2052 2053 2054 2055 2056 2057 2058 2059 2060 2061 2062 2063 2064 Partial Decommissioning Total Capital Investment $ 624,440,000 NPV (CAPEX) $ (346,011,445) Full Decommissioning Total Capital Investment $ 512,276,250 $...

AI summary The document presents financial scenarios for energy infrastructure projects, including partial and full decommissioning, redevelopment, and sustaining CAPEX through redevelopment, with detailed capital investment figures and NPV (Net Present Value) calculations spanning 2052–2064. Full decommissioning shows lower NPV than partial decommissioning, while redevelopment incurs the highest NPV.

Section 1272
Value of Energy $ 1,042,075,305 $ 31,516,066 $ 32,146,388 $ 32,789,315 $ 33,445,102 $ 34,114,004 $ 34,796,284 $ 35,492,210 $ 36,202,054 $ 36,926,095 $ 37,664,617 $ 38,417,909 $ 39,186,267 $ 39,969,993 NPV (Value of Energy) $ 376,550,690 To...

AI summary The text presents financial data on energy value, avoided capacity costs, and total benefits with NPV calculations. It includes assumptions about marginal costs of electricity and capacity, showing increasing costs over time and a negative NPV for redevelopment.

Section 1275
Scenario TOTAL or NPV 2065 Partial Decommissioning Total Capital Investment $ 624,440,000 NPV (CAPEX) $ (346,011,445) Full Decommissioning Total Capital Investment $ 512,276,250 NPV (CAPEX) $ (196,107,720) Redevelopment Total Capital Inves...

AI summary The text presents financial analyses of different scenarios (Partial Decommissioning, Full Decommissioning, Redevelopment, etc.), including total capital investments, NPV (CAPEX), energy value, avoided capacity costs, and total benefits. Assumptions include marginal costs of electricity and capacity, with NPV figures indicating net financial outcomes for each scenario.

Section 1276
2% Marginal cost of elec $ 214.58 Marginal cost of capacity $ 243.60 Date: December 12, 2025 Page 653 of 782 REDACTED REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Appendix F Page 1 of 55 NS Power The Path to 2030 – 2025 Update...

AI summary NS Power's 2026 Annual Capital Expenditure (ACE) Plan, part of its 'Path to 2030' update, includes cost considerations for electricity and capacity, reflecting marginal costs of $214.58 and $243.60 respectively. The document outlines financial planning for infrastructure and resource management.

Section 1366
1 sources (such as oil and natural gas) to operate during the colder/peak system demand periods in 2 the winter when heat pumps are less efficient. This potential program has been considered and 3 discussed in NS Power’s Load Forecast Repo...

AI summary NS Power is evaluating a hybrid peak program to reduce winter demand by using alternative energy sources during peak periods. A study by Net Zero Atlantic, involving DOE and E1, aims to assess the program's cost impacts and operational models, with a completion timeline of Q1 2026.

Section 1522
DM documentation that is intended to inform project planning and execution. The following lists the relevant PDM documentation, and what should be reviewed: Contingency Assessment (if applicable) Review this document to ensure it’s aligned...

AI summary The text outlines documentation to be reviewed for project planning and execution, including Contingency Assessment, Estimate Maturity Matrix, Economic Analysis Model, Risk Register, and Post Project Review. These documents ensure alignment with guidelines, proper risk management, and accurate cost estimation.

N-3NSPI (CA) RIR 1 to 32 - Redacted 5 passages
2026 Annual Capital Expenditure (ACE) Plan (NSEB M12619) NSPI Responses to Consumer Advocate Information Requests p. pp. 26-69
2026 Annual Capital Expenditure (ACE) Plan (NSEB M12619) NSPI Responses to Consumer Advocate Information Requests 2 3 With respect to Appendix I, CIs for transmission replacement and upgrade projects 4 C0080110 and C0080109, and 2024 ACE P...

AI summary The document pertains to the 2026 Annual Capital Expenditure (ACE) Plan (NSEB M12619) and includes NSPI's responses to Consumer Advocate Information Requests. It addresses questions regarding risk registers, cost accountability mechanisms, and project documentation for transmission replacement and upgrade projects.

REDACTED 2026 ACE Plan CA IR-16 Attachment 2 Page 7 of 7 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 26
REDACTED 2026 ACE Plan CA IR-16 Attachment 2 Page 7 of 7 REDACTED (CONFIDENTIAL INFORMATION REMOVED) SE-38.4-2010 Quantities & Prices (Schedule "C") Currency CAD Transformer Duty Freight and Offloading (FOB Destination) TRANFORMER SUB-TOTA...

AI summary The document outlines transformer replacement projects and their associated costs, including approved budgets, contingency amounts, and total spend figures. It references various projects with specific approval mechanisms and statuses, such as 'Partially Complete' or 'Under budget.' The ACE Plan is mentioned, along with the Nova Scotia Energy Board (NSEB) and the 2026 Annual Capital Expenditure (ACE) Plan (NSEB M12619).

REDACTED p. p. 26
REDACTED 1 fluctuations (such as steel which has increased significantly due to the impact of tariffs) 2 and potential delays in the delivery of long lead materials. 3 4 (f) This contingency was not based on previous projects, therefore no...

AI summary The text discusses contingency planning for a project, highlighting factors such as material cost fluctuations due to tariffs, long lead times for critical components like switches, and the use of estimates by subject matter experts to guide projected costs. The contingency was determined based on expert judgment rather than historical data.

CONFIDENTIAL (Attachment Only) p. p. 26
CONFIDENTIAL (Attachment Only) 1 Request IR-20: 2 3 With respect to project C0080252 (Intelligent Asset Data Capture & Integration Platform): 4 5 (a) Please provide a forecast of future costs to maintain and develop this platform. If no 6...

AI summary The document outlines Request IR-20 regarding project C0080252, asking for cost forecasts, a federal funding agreement, risk identification, and clarification on a typographical error. The response refers to NSEB IR-146, a confidential attachment, confirms no risk due to received funding, and explains the typographical error.

NON-CONFIDENTIAL p. p. 69
NON-CONFIDENTIAL 1 Response IR-26: 2 3 (a) Careful management of resources refers to contractor resources and includes activities such 4 as leveraging geographical homebases of contractor resources to reduce per diems and 5 hotel stays and...

AI summary NS Power discusses careful management of contractor resources to reduce costs and improve efficiency in its vegetation management program. The trimming of trees near existing lines is an operating expense, and the 2025 trimming goals were exceeded despite wildfire restrictions. Adjustments were made to focus on areas requiring less equipment and labor.

N-4NSPI (DOE) RIR 1 to 7 2 passages
Section 10 p. p. 7
acceptable lower-cost connection standard, phasing mechanism, or prioritization criteria that would lower the investment required and still meet the technical requirements. (f) As discussed in part (e), the least cost alternative is select...

AI summary The text discusses NS Power's approach to managing customer connection and upgrade costs, emphasizing the use of least-cost alternatives and regulatory oversight through the Authorization to Overspend (ATO) process. Regulations limit the scope of utility-funded investments, and ATO applications have been approved by the NSEB to justify increased spending.

\ \ Increase driven by CI 47124 - Advanced Metering Infrastructure project. p. p. 7
\ \ Increase driven by CI 47124 - Advanced Metering Infrastructure project. 1 Request IR-4: 26 Integration project, and finally, an increase of $2 million is due to the inclusion of the Storm 27 Management Software Implementation project....

AI summary The increase in costs is driven by the Advanced Metering Infrastructure project (CI 47124) and the inclusion of the Storm Management Software Implementation project. The increase is attributed to delayed deliveries of line trucks since the onset of COVID and increased costs of line trucks and passenger vehicles. There is also a concern about passing on cyber security incident costs to ratepayers and the implementation of accounting ring-fencing measures.

N-5NSPI (IG) RIR 1 to 25 1 passage
NON-CONFIDENTIAL p. p. 40
NON-CONFIDENTIAL 2 (c) Yes, NS Power did consider mitigating approaches but found that any potential approaches 3 led to a scope change definition becoming very complex and difficult to apply consistently 4 across all projects. The main ap...

AI summary NS Power considered various approaches to mitigate scope change complexities but found them too complex. They favor simplified definitions and believe current thresholds will capture most significant changes. They are open to additional language for scope changes based on stakeholder input.

N-6NSPI (NSEB) RIR 1 to 202 - Redacted 14 passages
2026 ACE Plan NSEB IR-7 Attachment 1 Page 1 of 1 REDACTED (CONFIDENTIAL INFORMATION REMOVED) p. p. 7
2026 ACE Plan NSEB IR-7 Attachment 1 Page 1 of 1 REDACTED (CONFIDENTIAL INFORMATION REMOVED) CI# Project # Project Long Title Invesment Trigger 9 with an updated 2024 total estimated cost of $5,701,709, while Figure 11 showed an updated 10...

AI summary The 2026 ACE Plan discusses delays and cost fluctuations for a project due to land procurement and site conditions. The response indicates that engineering cannot proceed until the substation location is finalized, leading to delays and cost variations.

NON-CONFIDENTIAL p. pp. 11-154
NON-CONFIDENTIAL 1 (i) Given the amount of subsequent spending on this project, what is the revised 2 Final Date for this project? 3 4 (ii) Please discuss the delay in this project that was started 2024/08. 5 6 Response IR-16: 7 8 Yes. Pro...

AI summary The response discusses the revised final date for a project and the reasons for delays, including budget variances and project progress updates. Specific projects like the Tusket Falls Main Dam and HYD WRC Tailrace Rock Bolting Phase 2 are mentioned with their current status and estimated costs.

WACC Rate 5.08% System TOTAL or NPV Annapolis Decommissioning p. p. 50
WACC Rate 5.08% System TOTAL or NPV Annapolis Decommissioning System TOTAL or NPV 2062 2063 2064 2065 Paradise Sustaining Total Capital Investment $ 16,325,526 $ 104,034 $ 106,115 $ 108,237 $ 2,649,648 NPV $ 6,883,269 Roseway Decommissioni...

AI summary The document presents financial data related to various systems and projects, including total capital investment and NPV figures for Annapolis Decommissioning and other locations such as Paradise, Roseway, Sheet Harbour, and Wreck Cove. The data spans multiple years, with a focus on capital expenditures and net present value calculations.

2026 Annual Capital Expenditure (ACE) Plan (NSEB M12619) NSPI Responses to NSEB Information Requests p. pp. 11-72
2026 Annual Capital Expenditure (ACE) Plan (NSEB M12619) NSPI Responses to NSEB Information Requests 1 Request IR-24: 13 The 2026 ACE Plan carryover list included a forecast total estimate of $8,001,748. The forecast 14 included cost estim...

AI summary The 2026 ACE Plan includes a carryover of approximately $8 million for PCB remediation and switchgear upgrades, with further details to be provided in an ATO submission. The significant increase in General Plant investment for 2028 and 2029 is attributed to increased investment in the CIS Replacement project, Customer Care & Billing Infrastructure, and IT upgrades.

NON-CONFIDENTIAL p. p. 72
NON-CONFIDENTIAL D005 2025 Actuals ($) 2026 Budget ($) Contractor Overhead 610,523 575,473 Vehicle Allocated Costs 1,713,865 1,278,630 Admin Overheads 1,963,834 2,177,285 Salvage (100,990) (81,646) Total 22,101,034 22,846,689 Capital Contr...

AI summary The table presents financial figures for 2025 actuals and 2026 budget projections, including contractor overhead, vehicle allocated costs, admin overheads, salvage, and capital contributions. The overall total for 2025 is $21,501,960, and for 2026, it is projected to be $22,418,590.

10 p. p. 72
10 2022 2023 2024 2025 Cost Category Budget ($) Actuals ($) Budget ($) Actuals ($) Budget ($) Actuals ($) Budget ($) Actuals ($) Regular Labour and Term Labour 1,526,088 1,778,938 1,642,056 1,496,081 1,791,088 1,731,589 1,908,102 3,446,135...

AI summary The table presents budget and actual costs for various expense categories from 2022 to 2025, highlighting discrepancies between planned and actual expenditures, such as increased overtime labour and material costs.

NON-CONFIDENTIAL p. p. 72
NON-CONFIDENTIAL Cost Category 2026 Budget ($) Contracts/Consulting 5,581,449 Meals/Travel and Other 113,350 Royalty, Easement, Appraisal - Contractor Overhead 577,375 Vehicle Allocated Costs 1,041,135 Admin Overheads 1,769,205 Salvage - T...

AI summary The document presents a budget summary for 2026, listing various cost categories and their associated amounts. The total budget is $15,000,016, with capital contributions slightly reducing the overall total.

5 p. p. 72
5 Customer Connections Cost Category 2025 Total Regular Labour and Term Labour 3,427,133 Overtime Labour 922,344 Materials 4,501,098 Contracts/Consulting 4,272,155 Meals/Travel and Other 87,903 Royalty, Easement,Appraisal 41,735 Contractor...

AI summary The document presents a detailed breakdown of customer connection costs for 2025, including categories such as labour, materials, contracts, and overheads, with a total of $15,726,839 after accounting for capital contributions.

7 Please refer to the table below costs associated with load growth: p. p. 72
7 Please refer to the table below costs associated with load growth: Load Growth-Driven Cost Category 2025 Total Regular Labour and Term Labour 250,155 Overtime Labour 73,588 Materials 558,603 Contracts/Consulting 1,094,835 Meals/Travel an...

AI summary The text references a table outlining costs associated with load growth, including categories like labour, materials, and consulting. It also mentions the 2026 Annual Capital Expenditure (ACE) Plan and references a matter (NSEB M12619) related to NSPI's responses to NSEB information requests.

Section 535 p. p. 72
2 (c) There are no costs associated with individual new customer connections in D004. NS 3 Power does not budget or forecast this project with a distinction between customer 4 renovation-related costs and general load growth-driven costs....

AI summary The document states that there are no costs associated with individual new customer connections in D004, and NS Power does not distinguish between renovation-related costs and general load growth-driven costs in its budgeting and forecasting for this project.

Section 646 p. p. 72
2026 Annual Capital Expenditure (ACE) Plan (NSEB M12619) NSPI Responses to NSEB Information Requests

AI summary The document outlines NSPI's responses to information requests from the NSEB regarding the 2026 Annual Capital Expenditure (ACE) Plan. It focuses on the capital expenditure planning process and related financial and operational considerations.

SECTION B: SIC and Industry Group SECTION C: Cost and Payroll p. p. 133
SECTION B: SIC and Industry Group SECTION C: Cost and Payroll To set rates, we classify employers by the industry in which they operate, and group industries with similar activities and risk into industry groups. Your Standard Industrial C...

AI summary The document classifies employers under SIC code 4214 (Excavating and Grading) and outlines industry group classifications for 2025. It details assessable payroll from 2021 to 2023 and associated costs of new injuries during the same period.

3 G08: C0080135 CT-BGT2 Engine Refurbishment p. p. 11
3 G08: C0080135 CT-BGT2 Engine Refurbishment 4 - 5 Please provide the budgeted and actual annual operations and maintenance cost associated - 6 with the CT-BGT2 unit over the past five years. 7 8 Response IR-107: 9 - 10 Please refer to the...

AI summary The response to a request for budgeted and actual annual operations and maintenance costs for the CT-BGT2 unit over the past five years indicates that the data is not separated by unit and can only be provided at the total amount for the Burnside CT site.

4.0 CAPITAL CRITERIA VIOLATIONS AND ALTERNATIVE SOLUTIONS p. p. 94
4.0 CAPITAL CRITERIA VIOLATIONS AND ALTERNATIVE SOLUTIONS Refer to Appendix C for relevant sections of the NSPI Capital Expenditure Justification Criteria.

AI summary This section discusses capital criteria violations and alternative solutions, referring to Appendix C for relevant sections of the NSPI Capital Expenditure Justification Criteria.

N-7NSPI (SBA) RIR 1 to 29 2 passages
- (ii) Have decreased investment planned for 2026. p. p. 8
- (ii) Have decreased investment planned for 2026. 1 (b) Please explain which of the CEJC rating criteria listed on Page 89 of 782, Lines 4-12 27 the intention to align with the IRP forecast. Variances as seen in the comparison above, 28 e...

AI summary The response discusses the variance thresholds for final cost applications, explaining that the intention was to increase the allowable underspend threshold to avoid unnecessary applications. The discussion relates to the criteria for final cost applications and how variances are calculated and interpreted.

(b) "Regular" refers to Regular Administrative Overhead, also known as Labour AO. NS Power has three types of AO Rates, which are calculated in accordance with Board- p. p. 8
(b) "Regular" refers to Regular Administrative Overhead, also known as Labour AO. NS Power has three types of AO Rates, which are calculated in accordance with Board- 1 approved Accounting Policy 6230 – Application of Administrative and Ve...

AI summary The text discusses the calculation of Administrative Overhead (AO) rates by NS Power, highlighting that AO rates are based on budgeted overhead costs relative to capital labour costs. It explains that increased AO rates may not reflect higher costs but could result from lower capital labour budgets or increased administrative support. Outsourcing efforts may reduce AO rates but could increase overall capital program costs.

N-9Evidence of John D. Wilson - CA 14 passages
Q: What is the purpose of your testimony? p. p. 3
Q: What is the purpose of your testimony? A: I have reviewed most of the issues identified by the Board as well as the specific projects that NS Power seeks approval in its Annual Capital Expenditure Plan for 2025. I have not identified an...

AI summary The testimony aims to review NS Power's 2025 Annual Capital Expenditure Plan, focusing on cost minimization, risk matrices, and reliability projects. It also addresses concerns about the 2026 ACE Plan budget and reviews updates to the CEJC, Mersey Hydro, and Path to 2030 reports.

1 2 3 2. Direct NS Power to provide a report on whether the Maximo/Salesforce capabilities could be extended to improve operational efficiency and cost minimizatio p. p. 3
1 2 3 2. Direct NS Power to provide a report on whether the Maximo/Salesforce capabilities could be extended to improve operational efficiency and cost minimization in areas where it is not currently scoped for use. (Section III.A) 4 5 3....

AI summary The document outlines various directives for NS Power, including improving operational efficiency through software capabilities, revising work orders, monitoring external cost factors, managing contingency amounts, and revising the CEJC to align with the Board's requirements. It also addresses reliability metrics and spare equipment inventory.

A. Enhancing cost minimization in capital routines p. p. 5
A. Enhancing cost minimization in capital routines

AI summary The section discusses strategies for enhancing cost minimization in capital routines, focusing on optimizing processes and reducing expenses associated with capital projects.

Q: Is the lack of data on regular and overtime person-hours of concern? p. p. 5
Q: Is the lack of data on regular and overtime person-hours of concern? A: Yes. Several of the distribution routines have substantial overtime labour forecasts, and it is unclear whether NS Power has any internal practices for minimizing t...

AI summary The lack of data on regular and overtime person-hours is a concern, as several distribution routines have high overtime forecasts. NS Power uses an 'overtime-based model' due to the variability of outage calls, but tracking overtime use is essential to identify inefficiencies and opportunities for better scheduling.

Q: Is there any further evidence that NS Power lacks internal controls to ensure effective planning of resources to minimize costs? p. pp. 5-7
Q: Is there any further evidence that NS Power lacks internal controls to ensure effective planning of resources to minimize costs? A: Yes, NS Power does not utilize a Basis of Schedule practice, or its equivalent, for its capital routine...

AI summary NS Power does not use a Basis of Schedule practice for its capital routine projects, which may indicate a lack of internal controls for resource planning. However, for some routines, this is reasonable due to their reactive nature. For other routines, an equivalent practice could help avoid delays and costs. NS Power has reported efficiency improvements from implementing new software, resulting in $2.7 million in savings.

Q: How would these data be useful? p. p. 10
Q: How would these data be useful? - A: In addition to forecasting new customer distribution routine costs, the information described above would be useful as: - An input in NS Power's long-term load forecast, - As an input into distributi...

AI summary The data would be useful for NS Power's long-term load forecasting, distribution circuit planning, cost allocation, and rate design. Most data can be collected through internal work orders, while analyzing external cost factors would require a strong cost minimization management approach.

Q: What is your recommendation regarding collection of new customer data? p. p. 10
Q: What is your recommendation regarding collection of new customer data? - A: I recommend that the Board direct NS Power to revise its internal work orders for work done in customer-driven routines to identify whether the work was done fo...

AI summary The recommendation is for the Board to direct NS Power to revise internal work orders to better categorize customer-driven work and monitor external cost drivers, such as supply chain issues and labor shifts, ensuring supporting data is provided for significant cost increases.

Q: If your deduction is correct, is a policy to not utilize a risk matrix or detailed schedule for projects with a 15% contingency reasonable? p. p. 11
Q: If your deduction is correct, is a policy to not utilize a risk matrix or detailed schedule for projects with a 15% contingency reasonable? A: No. If these projects are so well understood and so consistent, then a much smaller contingen...

AI summary The response argues that not using a risk matrix or detailed schedule for projects with a 15% contingency is unreasonable, especially if projects frequently exceed budgets. It emphasizes the importance of proactive risk management to minimize costs for capital projects.

Q: Could a smaller contingency budget increase the number of ATO proceedings? p. pp. 11-13
Q: Could a smaller contingency budget increase the number of ATO proceedings? A: Yes, a possible consequence of the Board adopting my recommendation is that there could be slightly more ATO proceedings. From a cost minimization perspective...

AI summary A smaller contingency budget may lead to more ATO proceedings, as they can identify risks that lead to overspending in capital projects. Examples include the L6549 transmission line project and the 76V-T1 Transformer Replacement, where unexpected costs led to increased ATO budgets. Improved planning and risk management could help mitigate these issues.

B. Spare Transformers p. pp. 16-18
B. Spare Transformers - Q: Please describe the role of spare transformers in supporting reliability. - A: According to NS Power, it has added a new transformer to strengthen its "fleet of spares" in support of "system reliability and long-...

AI summary NS Power has added a new transformer to support system reliability. The document discusses cost-effective methods like spare inventory pooling, referencing Grid Assurance, a program that allows utilities to share spare equipment. The costs of spare transformers, including deployment and storage, are highlighted as a challenge for individual utilities.

Q: What is your recommendation regarding spare inventory pooling? p. p. 18
Q: What is your recommendation regarding spare inventory pooling? - A: The Board should obtain an inventory of NS Power's spare equipment to identify whether there is sufficient volume to consider whether a more cost-effective option could...

AI summary The respondent recommends that the Board obtain an inventory of NS Power's spare equipment to assess the feasibility of a spare inventory pooling program. Key considerations include equipment type, storage costs, and exclusion of routinely rotated items. If beneficial, the Board should request NS Power to report on the topic in its next ACE Plan application.

Q: What is NS Power's view of the risk of adding detail to the scope, consistent with some other definitions of scope? p. p. 19
Q: What is NS Power's view of the risk of adding detail to the scope, consistent with some other definitions of scope? A: NS Power states that if "scope change" included changes in deliverables, boundaries, and/or detailed tasks, roughly 7...

AI summary NS Power believes that adding detail to the scope of projects would lead to a significant regulatory burden, as approximately 70-80 out of 200 projects over the past five years would have required a scope change, affecting NS Power, the NSEB, and stakeholders, with costs passed on to customers.

Q: Is the NPV analysis reasonably complete? p. pp. 24-25
Q: Is the NPV analysis reasonably complete? A: No. The Mersey Redevelopment Project was first identified as a subsequent submittal project in 2017, and retained in each ACE Plan on the same basis until it was moved to deferred status in th...

AI summary The NPV analysis is deemed incomplete due to high uncertainty in the decommissioning cost estimate for the Mersey Redevelopment Project, with NS Power not providing a direct comparison to redevelopment cost estimates. The project has been in study for nearly a decade, and the current estimate is based on high-level metrics without full scope consideration.

EXPERT TESTIMONY p. p. 28
rid Nova Scotia Project on behalf of the Nova Scotia Consumer Advocate. Cost classification, decommissioning costs, justification for software vendor selection, and suggested changes to project scope. Nova Scotia UARB Matter No. M09499, di...

AI summary Paul Chernick provided expert testimony on various matters related to Nova Scotia Power's capital expenditures, decommissioning costs, and load forecasts, as well as on electric vehicle charging programs in California. The testimony focused on cost justification, project scope, and ensuring alignment with regulatory goals and budget controls.

N-12Rebuttal Evidence - NS Power 2 passages
DATE FILED: April 8, 2026 Page 4 of 19 p. pp. 4-6
DATE FILED: April 8, 2026 Page 4 of 19 1 2.0 RESPONSE TO CA (WILSON) EVIDENCE 27 28 29 30 Direct NS Power to provide a report on whether the Maximo/Salesforce capabilities could be extended to improve operational efficiency and cost minimi...

AI summary The text discusses NS Power's response to recommendations related to operational efficiency and forecasting methodologies. NS Power disagrees with a recommendation to revise work orders for customer-driven routines, arguing that granular customer type information would not significantly impact forecasting methods.

DATE FILED: April 8, 2026 Page 11 of 19 p. p. 11
DATE FILED: April 8, 2026 Page 11 of 19 1 2.10 Recommendation 10 – Accept NS Power's Clarification of "Scope Change" 22 Power identifies potential changes to deliverables, boundaries, or detailed tasks that may result in 23 a budget increa...

AI summary The text discusses NS Power's proposal to clarify the 'Scope Change' in the CEJC framework and other revisions. It argues that submitting an interim filing for potential budget increases would create unnecessary regulatory churn, as the existing CEJC already provides mechanisms for addressing material scope changes.

N-14Opening Statement - SBA 1 passage
1 2 BEFORE THE NOVA SCOTIA ENERGY BOARD
1 2 BEFORE THE NOVA SCOTIA ENERGY BOARD 3 4 IN THE MATTER OF The Public Utilities Act, R.S.N.S. 1989, c.380 as amended 5 and - - 6 7 IN THE MATTER OF an Application by Nova Scotia Power Incorporated for approval of its 2026 ANNUAL CAPITAL...

AI summary The Small Business Advocate (SBA) emphasizes the need for careful evaluation of Nova Scotia Power Inc.'s 2026 Annual Capital Expenditure (ACE) Plan, especially in light of rising energy costs and environmental regulations. The SBA stresses the importance of ensuring that expenditures provide promised benefits and achieve cost savings.

N-15Opening Statement - CA 2 passages
M12619
M12619 NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: The Public Utilities Act, R.S.N.S. 1989, c. 380 -and - IN THE MATTER OF: an application by NOVA SCOTIA POWER INCORPORATED (NS POWER) for approval of approximately $284.0 million of its ANNU...

AI summary The Consumer Advocate filed evidence in the proceeding regarding NS Power's 2026 ACE Plan, highlighting cost minimization opportunities and issues with risk matrices and reliability projects. John Wilson of Grid Strategies provided recommendations on reporting requirements, contingency caps, and spare equipment inventory.

Section 2
1 Finally, Mr. Wilson provides additional recommendations concerning NS Power's proposed 2 updates to the CEJC, including development of a two-step process to better determine whether NS 3 Power may be proceeding with a sub-optimal alterna...

AI summary Mr. Wilson recommends updating NS Power's CEJC with a two-step process to evaluate project alternatives. NS Power has accepted two of 15 recommendations, while the remaining 13 are under consideration. The Consumer Advocate agrees with the Board's response to a letter from the Minister of Energy but notes it is not directly relevant to current proceedings.

N-16Opening Statement - DOE 1 passage
Project Management and Cost Overruns
Project Management and Cost Overruns - The ACE Plan yet again reveals a systemic lack of accountability regarding project - management. NSPI's attempt to limit the definition of a "Scope Change" appears designed - to reduce or avoid oversi...

AI summary The ACE Plan highlights a systemic lack of accountability in project management by NSPI, with efforts to limit the definition of 'Scope Change' to avoid oversight. Cost overruns have occurred, with increased spending on projects like Hydro plants and transportation vehicles raising concerns about ratepayer burden and reliability of original estimates.

N-19WAM Report 1 passage
Benefit Cumulative NPV Year 1 Projected Year 1 Benefits p. p. 0
Benefit Cumulative NPV Year 1 Projected Year 1 Benefits Benefits over 15 Benefits ($M) Realized years ($M) ($M) Auto-Scheduling & Optimization $18.7 $0.6 $2.7 One View of Work $5.0 $0.2 Contractor Management $11.8 $0.5 $0.0 Inventory Manag...

AI summary The table outlines various benefits with their cumulative net present value (NPV) and projected year 1 benefits. The realized year 1 benefits of $2.9 million exceeded forecasts due to better visibility of completed work, increased efficiency in scheduling tasks, and improved workforce productivity.

N-22Responses to Undertakings 1-22 2 passages
- 7 in 2024, and by the applicable 2024 blended IBEW hourly rate, including fringe benefits. p. p. 0
- 7 in 2024, and by the applicable 2024 blended IBEW hourly rate, including fringe benefits. 1 Undertaking U-2: 2 3 Per Exhibit N-9, pdf pg. 11 (Wilson Evidence), to advise whether the data would be useful 4 for improved cost allocation be...

AI summary The document discusses the utility's response to a request for data to improve cost allocation and rate design. NS Power concludes that the proposed granular customer-type data would not significantly improve cost allocation or rate design outcomes and does not recommend implementing the proposed data collection.

2026 ACE Plan U-18 Attachment 1 Page 2 of 2 p. p. 173
2026 ACE Plan U-18 Attachment 1 Page 2 of 2 1 Undertaking U-19: 2 3 Regarding the response to NSEB IR-128(a): To provide more detail explaining why the cost 4 per kilometre for 2024 and 2025 on the "D010 and New ROW Spend" went up by so mu...

AI summary The response to NSEB IR-128(a) explains that the increase in cost per kilometre for the 'D010 and New ROW Spend' in 2024 and 2025 was due to incorrect data inclusion and multiple factors such as hazard tree removal, fire restrictions, increased contractor labour costs, and traffic control expenses.

103410Decision 18 passages
2.2.2 C0021608 – TUC Shoreline Sheet Pile Refurbishment p. p. 7
may have changed the scoring spread. The Board also expressed similar spread concerns related to scoring the options' costs, as it was not based on pro-rating an option cost to the lowest option cost. • The use of additional study data to...

AI summary The document discusses concerns raised by the Nova Scotia Energy Board regarding the cost estimates of the rock revetment option for the TUC Shoreline Sheet Pile Refurbishment project. Additional study data significantly increased the cost of this option, leading the Board to question whether it remains the most cost-effective solution without re-evaluating the other options.

2.3.1.1 Findings p. pp. 18-20
2.3.1.1 Findings [44] The Board accepts that an increase in expenditure does not, in itself, mean that an activity ceases to qualify as routine. Required expenditures may reasonably vary with asset conditions, customer growth, system requi...

AI summary The Board acknowledges that increased expenditure does not automatically disqualify an activity as routine but is concerned that temporary cost increases may become embedded in historical data, influencing future forecasts. NS Power is urged to clearly distinguish between structural and temporary cost drivers in future ACE Plans.

2.3.2 Enhanced Tracking and Cost Minimization p. pp. 20-21
2.3.2 Enhanced Tracking and Cost Minimization [49] The CA raised concerns regarding NS Power's ability to demonstrate cost minimization within the Distribution Routines. In his evidence, Mr. Wilson observed that regular and overtime person...

AI summary The CA raised concerns about NS Power's ability to track and demonstrate cost minimization in Distribution Routines. NS Power clarified that while their accounting software tracks labour hours and costs, this information is not always used for forecasting, except in the case of Distribution Routine D005.

2.3.2.1.1 Findings p. pp. 21-24
2.3.2.1.1 Findings [55] The Board considers that NS Power's existing Work Management systems provide an opportunity to improve the assessment of Routine expenditures without creating an entirely new reporting system. The objective is not a...

AI summary The Board acknowledges NS Power's existing Work Management systems as a basis for improving Routine expenditure assessments without creating a new reporting system. The focus is on evaluating changes in routine capital spending, particularly in relation to labour, contractor rates, and productivity, to ensure transparency and efficiency.

2.3.3.1 Findings p. p. 25
2.3.3.1 Findings [60] The Board considers this an important measure of program effectiveness. The Board accepts that increased D055 expenditure may not immediately result in a cost reduction in D005. However, over time, NS Power should be...

AI summary The Board emphasizes the importance of assessing D005 and D055 expenditures together over time to evaluate program effectiveness, noting that increased proactive investment may eventually reduce asset failure rates and other operational costs.

2.3.4.1 Findings p. pp. 26-27
2.3.4.1 Findings [64] The Board accepts that the formal Basis of Schedule process should not be imposed on all routine activities. However, the Board agrees with the underlying objective of the CA's recommendation. For planned routines inv...

AI summary The Board agrees with the objective of ensuring proper resource planning and minimizing avoidable costs for significant routine activities but does not support imposing the formal Basis of Schedule process on all such activities. It suggests that NS Power's existing systems may be sufficient.

2.3.5 New Customer Routines p. p. 27
2.3.5 New Customer Routines [66] New customer routine capital expenditures represent the largest individual distribution routine subcategory with a budget of approximately $67.8 million in 2026. The 2026 budgets for D004 – New Customer Upg...

AI summary New customer routine capital expenditures are the largest distribution routine subcategory with a 2026 budget of $67.8 million. NS Power uses expenditure-based forecasts and notes that factors like customer demand and economic growth do not directly affect the forecast. Mr. Wilson recommended capturing more detailed data for better budgeting and forecasting, but NS Power argues that current methods are sufficient and performed well in 2025.

2.3.5.1 Findings p. pp. 27-28
2.3.5.1 Findings [69] The Board does not consider that the demonstrated accuracy of the forecasting methodology resolves the information issue raised by the CA. Forecast accuracy and forecast justification are distinct considerations. A fo...

AI summary The Board emphasizes that forecast accuracy alone does not resolve information issues raised by the CA. Forecast justification and underlying drivers must be considered, especially when forecasts rely on current expenditure levels and inflation. Activity information and external cost factors are essential for accurate expenditure forecasting and cost escalation explanations.

2.3.6 Spare Inventory Pooling p. pp. 28-29
2.3.6 Spare Inventory Pooling [74] Mr. Wilson examined whether spare inventory pooling could provide a more cost-effective alternative to NS Power independently maintaining certain high-value, longlead-time spare equipment. He recommended...

AI summary The document discusses spare inventory pooling as a potential cost-effective alternative to NS Power maintaining high-value, long-lead-time spare equipment. Mr. Wilson recommended obtaining detailed information on NS Power's existing inventory and suggested focusing on equipment with a minimum two-year holding period and a materiality threshold. NS Power, however, stated that previous investigations found existing arrangements less cost-effective and operationally reliable than its current strategy, citing concerns like availability, compatibility, and transportation.

2.3.7.1 Findings p. pp. 30-31
2.3.7.1 Findings - [80] The Board accepts that a fixed capital ceiling is not an appropriate substitute for risk-based asset management, as a ceiling may not adequately address identified risks. The Board also accepts that sometimes it may...

AI summary The Board acknowledges that a fixed capital ceiling is not suitable for risk-based asset management and accepts that capital reallocation may be prudent under certain conditions. However, it emphasizes that capital reallocation and 'capital envelope' justification are distinct issues. The Board is also concerned about baseline ratcheting in the Routine Program and calls for more information to distinguish between permanent and temporary cost pressures.

2.4.2 Directives p. p. 33
2.4.2 Directives [88] The Board finds that the sustained growth and evolving composition of the Routine Program require requires enhanced prospective transparency. The additional information is intended to preserve the regulatory efficienc...

AI summary The Board requires NS Power to enhance transparency in the Routine Program by providing detailed cost and performance data, including five-year comparisons, cost breakdowns, and explanations for year-over-year changes. This is intended to ensure regulatory efficiency and proper cost justification.

3.2 CEJC Scope Change Amendments and Recommendations p. p. 37
rall "intent" of the project. The IG believes that such definitions, and related limitations are inappropriate. The IG, therefore, submitted that NS Power's proposed definitions should not be adopted. [107] Instead, the IG submitted that N...

AI summary The Independent Governor (IG) argues that NS Power's proposed definitions for scope changes are too narrow, focusing only on the project's intent rather than including the work required and deliverables. The IG believes this could lead to unintended consequences and does not align with NS Power's cost minimization and project management practices.

5.0 CAPITAL SPENDING GROWTH p. p. 60
material concerns regarding the fiscal capacity of ratepayers to absorb such aggressive asset loading without a corresponding expansion of physical system benefits. [DOE Closing Submissions, pp. 3-4] [165] The Board is also concerned about...

AI summary The document discusses concerns about the impact of increased capital spending on ratepayers, noting that NS Power has faced challenges in transitioning from coal-based generation to renewable energy sources. This transition, driven by decarbonization goals set under the Electricity Act, has been costly and has placed additional stress on existing coal plants.

8.2 Cost Implications in 2026 ACE Plan p. p. 84
8.2 Cost Implications in 2026 ACE Plan [211] While a detailed review was undertaken though the IR process and in questioning at the oral hearing, no additional capital costs were identified in the 2026 ACE Plan that specifically related to...

AI summary The 2026 ACE Plan did not identify additional capital costs related to cybersecurity incident restoration. NS Power used a coding system to exclude such costs from the rate base. Cybersecurity restoration costs were covered by insurance or shareholders. Inflationary pressures may arise from deferred projects, which could be managed internally or through Board approval.

8.3 Considerations for Subsequent Submittal Items p. pp. 84-85
8.3 Considerations for Subsequent Submittal Items [212] There was discussion about IT or cybersecurity-related projects listed as subsequent submittal items in the 2026 ACE Plan. Two projects, in particular, raised several concerns. The Id...

AI summary The document discusses concerns raised about the increasing costs of IT and cybersecurity-related projects, specifically the Identity and Access Management and Customer Information System (CIS) Replacement projects. The Industrial Group recommends that future submittals include detailed cost explanations related to the 2025 cyber incident. NS Power argues that current processes already provide necessary information, but the Board agrees that specific references to the impact of the cyber incident on cost variances should be included in future submissions.

9.0 CONTINGENCY ON PROJECTS WITHOUT RISK REGISTERS p. pp. 85-87
9.0 CONTINGENCY ON PROJECTS WITHOUT RISK REGISTERS [214] Mr. Wilson noted that NS Power appears to routinely include a 15% contingency in transmission line and transformer project budgets where no risk matrix is prepared. He also noted tha...

AI summary Mr. Wilson recommends reducing the contingency for transmission projects without risk matrices to 10%, arguing that such projects are well understood and should not require high contingency. NS Power disagrees, stating that the absence of a risk register does not imply lower risk but rather reflects well-understood risks. The CA supports Mr. Wilson's recommendation.

9.1 Findings p. pp. 87-88
9.1 Findings [219] The Board recognizes the broader concern raised by the CA: whether projects are being properly scoped and whether the associated risks used to estimate contingency are understood before a budget is submitted, in accordan...

AI summary The Board acknowledges concerns about proper project scoping and risk-based contingency estimation. It finds that fixed contingency rates do not ensure proper project definition and urges NS Power to align project scoping with budget-estimation classes and base contingency on identified risks.

11.0 CONCLUSION p. p. 96
ant cost categories. For Routines using internal labour the information should also include a breakdown of labour costs (regular and overtime labour, budgeted costs and hours, actual costs and hours). - 3. NS Power must provide sufficient...

AI summary The document outlines requirements for NS Power to provide detailed cost breakdowns and explanations for changes in routine expenditures, including labour, materials, and contractor costs. It also mandates the use of existing systems for productivity monitoring and the inclusion of Routine Expenditure provisions in the 2028 ACE Plan review.

103411Board Order 1 passage
ORDER
ant cost categories. For Routines using internal labour the information should also include a breakdown of labour costs (regular and overtime labour, budgeted costs and hours, actual costs and hours). - 3. NS Power must provide sufficient...

AI summary The document outlines requirements for NS Power to provide detailed cost breakdowns and explanations for changes in routine expenditures, including labor, materials, and contractor costs. It also mandates monitoring of planned versus reactive replacement activities and the inclusion of Routine Expenditure provisions in the 2028 ACE Plan.

100690NSEB (NSPI) IR 1 to 202 - PDF 7 passages
Request IR-9:
Request IR-9: - In reference to Figure 7 Subsequent Submittal Project Status Update, pages 28-29. The Susie Lake Substation Addition project was included in the 2023 ACE Plan as a subsequent submittal item with a total estimated cost of $6...

AI summary The Susie Lake Substation Addition project's estimated costs have fluctuated significantly across the 2023, 2024, 2025, and 2026 ACE Plans, with the project being deferred in 2026 due to the need for additional engineering. The request asks for an explanation of the delay in completing engineering and the reasons for the cost decrease between the 2025 and 2026 plans.

Request IR-34:
Request IR-34: - D004 New Customers - a) Please provide the calculations used to derive the 2026 ACE Plan budget figures for routine D004 "New Customer Upgrades", routine D061 "New Customers – Residential", and routine D062 "New Customers...

AI summary The document requests detailed calculations and cost breakdowns related to the 2026 ACE Plan budget for new customer upgrades and expenditures in 2025, categorized by project type and including new customer connections, renovations, and load growth-driven projects.

Request IR-39:
Request IR-39: - D061 and D062 New Customers - a) Please update the attachment provided in M12319 Board IR-7 to include 2025 actual expenditures and the forecast for 2026. - b) Please provide the following for each year from 2022 to 2025:...

AI summary Request IR-39 seeks detailed updates on customer additions, infrastructure installations, and capital cost funding for D061, D062, and D004. It also requests an explanation of the 2026 forecast methodology and the reasons for D061 being under budget in 2025.

a) If not confirmed, please explain.
a) If not confirmed, please explain. G07: C0068888 TUC3 Continuous Ash Hauling System Request IR-96: The application considers that this investment will reduce operational costs. - a) What are the annual forecasted costs of NS Power to per...

AI summary The document contains multiple requests for information regarding the Continuous Ash Hauling System and Engine Refurbishment projects. It asks about costs, maintenance schedules, TCO analysis, and the reasons for selecting specific systems and contractors. It also inquires about the operating history of a turbine unit and the OEM's recommendations for refurbishment.

Request IR-111:
Request IR-111: - Please provide cost support references from similar projects recently completed and update the - detailed project estimates for each project.

AI summary The request asks for cost support references from similar recently completed projects and an update to detailed project estimates for each project.

Request IR-138:
Request IR-138: - The application notes that Phase 11 will be influenced by vegetation condition data derived from Satellite Imagery and artificial intelligence. This data will allow NS Power to be better informed on the updated vegetative...

AI summary The application for Phase 11 highlights the use of satellite imagery and artificial intelligence to improve vegetation condition data and prioritize feeder work. A request is made for a cost-benefit analysis to demonstrate that these technologies will be cost-effective.

Request IR-148:
Request IR-148: - Please confirm, or explain, otherwise, that summing the amounts in Appendix B Less than $1M, the total budget for Trenton 5 is $5.4M. - a) Overall, how much is NS Power planning to spend on Trenton 5 in 2026, including ot...

AI summary The text requests clarification on NS Power's capital expenditure plans for Trenton 5, including budget figures, criticality ratings, and justification for low-risk investments in a unit nearing retirement. It also asks for total spending on Trenton 5 and the whole Trenton station in 2026, as well as expenditures in 2025.

100691NSEB (NSPI) IR 1 to 202 - Word 14 passages
Section 12
2. If so, please explain how. Figure 22: Transmission Carry-over Capital Spending Summary. Have there been changes to the Final Date for any of the projects listed since the ACE Plan has been filed? 1. Please identify each of these carry-o...

AI summary The text requests explanations regarding changes to the final dates of transmission and distribution projects, identifies carry-over projects exceeding the Board approved amounts, and seeks justifications for negative subsequent spending and early capital commitments. It also asks for explanations of increased expenditures and projects advanced ahead of confirmed requirements.

Section 13
of these carry-over projects that has a current total estimate amount that exceeds the Board approved amount by the ATO threshold and identify the related dollar amount over the Board approved amount. Please explain why the following proje...

AI summary The text requests explanations for increases in project expenditures and changes in project timelines related to carry-over projects and the 2026 ACE application. It also asks for reasons behind proposed increases in general plant investment for 2028 and 2029 compared to the 2025 ACE Plan.

Section 16
his routine. 1. Please provide a detailed explanation for the drivers of this increase. 2. Please also explain why D006 was under budget in 2025. D055 - Planned Replacement of Distribution Equipment 1. This routine is set to increase by $5...

AI summary The text outlines several requests for detailed explanations and cost breakdowns related to various routines, including planned equipment replacement, new customer upgrades, and provincial widening. Questions focus on budget variances, cost drivers, and the methodology used for budgeting.

Section 31
severe, and the remainder of the cells below the midtide zone where capacity is compromised. Without intervention, the continued deterioration poses serious risks to structural stability and safety.” 1. What are the net present value and t...

AI summary The text discusses concerns about the structural integrity of corroded steel sheet pile structures and requests for cost-benefit analyses, design drawings, RFP status, and permitting progress for a project. It highlights the need for economic assessments and regulatory engagement.

Section 32
rom the regulatory authorities? 1. If not, does NS Power have an expected date by which all required permits will be approved? 2. If so, what is the expected start date for project construction? Page 154 states: “The contingency also cover...

AI summary The text raises questions about NS Power's permitting process, the inclusion of contingency costs, and the status of investigative work for a project. It also discusses the need for geotechnical investigations to reduce uncertainty in design assumptions and potential cost savings.

Section 33
certainty of these soil parameters. As design progresses and the soil conditions are better understood, it is possible that these assumptions may be relaxed, resulting in lower overall project costs.” 1. Please confirm that a geotechnical...

AI summary The text discusses the need for a geotechnical investigation to confirm soil parameters and update cost estimates for the combi-wall option. It also highlights the structural reliance on existing SSP cells for the concrete encapsulation option and the potential need for reinforcement.

Section 36
a level rise will be incorporated into the project design. 2. Please describe how this aligns with NS Power’s Climate Adaptation Plan. Please explain what Attachment 2 is intended to represent. 1. Please explain how the cost estimates in A...

AI summary The text includes questions regarding project design alignment with NS Power’s Climate Adaptation Plan, cost estimates in Attachment 2, blade replacement in a turbine project, and the forecast capacity and utilization factors for TUC1. It also asks about blade inspection results and spare blade procurement.

Section 39
r no additional cost to the project? Please explain. 1. If not, why not? In reference to Attachments 1 and 2, please confirm the noted pricing was obtained through a competitive procurement process. 1. If not confirmed, please explain. G07...

AI summary The text includes a series of questions related to the cost and procurement process of a fly ash hauling system and engine refurbishment project. It requests confirmation of competitive procurement, cost details, and evaluation of alternative systems. The questions also cover maintenance, cost savings, and Total Cost of Ownership (TCO) analysis.

Section 41
ned to be more cost effective to refurbish the existing engine rather than purchasing a previously owned engine.” Please provide the analysis/data to support that refurbishment is more cost effective. Please describe any work NS Power has...

AI summary The text contains a series of questions directed at Nova Scotia Power (NS Power) regarding the cost-effectiveness of refurbishing an existing engine, sourcing materials, capital and operational costs of the CT-BGT2 unit, and the basis for project estimates related to transmission upgrades.

Section 49
e explain any discrepancy with this amount and the amount identified in NS Power’s capital application under Matter M11921. 3. What is the expected final unit cost per km for “contracts” for Phase 10? The estimated unit cost estimate for C...

AI summary The text contains a series of questions directed at NS Power regarding capital applications, cost estimates for distribution rights-of-way, long-term operational cost reductions, and the effectiveness of vegetation management and reliability plans. The questions seek clarification on discrepancies in costs, the use of automation technologies, and the Board's role in assessing future investments.

Section 52
drawing to explain this statement in terms of the existing configuration and the changes that will occur after this project. GP02: C0080252, Intelligent Asset Data Capture & Integration Platform 1. Please provide a report outlining the bus...

AI summary The text outlines a series of questions related to the business case, costs, and risk ratings for various projects under the 2026 ACE Plan, including the Intelligent Asset Data Capture & Integration Platform and IT projects. It also requests confirmation of budget figures for the Trenton 5 project.

Section 53
ase explain the rating of 25 for the ECEI Synchronous Condensers. Please confirm, or explain, otherwise, that summing the amounts in Appendix B Less than $1M, the total budget for Trenton 5 is $5.4M. 1. Overall, how much is NS Power planni...

AI summary The text raises questions about NS Power's capital expenditures for Trenton 5, including the rationale for low-risk-rated projects, budget figures, and stakeholder engagement related to the Capital Expenditure Justification Criteria (CEJC). It also references Appendix D of the CEJC document, which discusses scope changes and stakeholder discussions.

Section 61
decommission the MHS is $512 million CAD.” Board staff notes that Attachment 1 of Appendix E denotes an estimate partial decommissioning cost of $624M. Please explain this discrepancy. Attachment 1: 1. Please provide a copy of Attachment 1...

AI summary The document raises questions about discrepancies in decommissioning cost estimates for MHS, retirement dates for Trenton generating units, and the strategic benefits of holding generating units in cold reserve. It also requests clarification on the value for money of these decisions and the inflation allowance incorporated into capital sustaining cost estimates.

Section 68
during periods of net peak demand.” 1. What is the current estimated cost of the conversion of Lingan units 1, 3 and 4? 2. What is the current estimated cost of the Point Tupper unit 2 to natural gas Section 7.3 Green Hydrogen Projects, pa...

AI summary The text includes questions about the costs of converting Lingan and Point Tupper units to natural gas, the development of green hydrogen projects, and risk management related to supply chain and geopolitical factors. It also raises concerns about off-take agreements, grid access, and potential transmission impacts.

100697SBA (NSPI) IR 1 to 29 - Word 2 passages
Section 4
ol and risk assessment. 5. Were any projects included in NS Power’s request for approval in the past two ACE Plans that would not meet this improved PDM test? If so, please identify and explain why. Refer the Application Section 11.1.1 Sus...

AI summary The text refers to questions and figures from NS Power’s application regarding capital investment planning, cost variances, and regulatory requirements. It asks whether past projects meet an improved PDM test, compares investment levels in the 2026 ACE Plan with the Evergreen IRP, and seeks clarification on cost variance thresholds and their interpretation.

Section 5
rectly reflects the intention of the CEJC? Refer the Application, Page 137 of 782, Line 13-19, Section 11.4 Quick Reference Sheet, sub-section entitled “2026 O/H Rates” reproduced in the table below: 2026 O/H Rates 1. Does the reference to...

AI summary The text raises questions about the interpretation of 'PP Regular' and 'Regular' O/H Rates in NS Power's accounting policies, the disparity between Hydro and PP Regular O/H Rates, and opportunities for reducing these rates. It also inquires about the increase in Steam projects in 2026 and references a presentation by NS Power at the Distributech event.

100699IG (NSPI) IR 1 to 25 - PDF 1 passage
Section 3
- 3 Preamble: NSPI states that the 2027–2030 capital forecast "does not include considerations - 4 for external funding that is not already in place" and that while external funding is "expected, the - 5 amount cannot be forecast at this t...

AI summary NSPI's 2027–2030 capital forecast excludes external funding not already in place. The request asks for details on existing external funding sources, their associated projects, and anticipated funding amounts. Discrepancies in approval requests are highlighted, and the significant increase in capital spending budgets for 2025 and 2026 is noted.

100700IG (NSPI) IR 1 to 25 - Word 1 passage
Section 10
If NSPI does not agree, please explain. 3. Please confirm whether NSPI intends to apply the updated definitions in future CI filings and scope change determinations in 2026. If not, please explain. Reference: N-1, 2026 ACE Plan, page 29, l...

AI summary The document requests clarification from NSPI regarding the application of updated definitions in future filings, the status of capital projects deferred or cancelled in 2025, the impact of a 2025 cybersecurity breach on capital decisions, and the implications for NSPI's cybersecurity risk profile.

100701DOE (NSPI) Ir 1 to 7 - PDF 3 passages
Request IR-1:
Request IR-1: For each of the projects listed below: - C0014218 HYD WRC LEM Balance of Plant - 29807 HYD Tusket Falls Main Dam - C0021140 New 138KV-25KV Substation Stellarton - C0045132 Eastern Clean Energy Initiative (ECEI) Energy Storage...

AI summary Request IR-1 asks for detailed cost and impact information on various energy projects, including initial approval costs, changes in cost, rate impacts, and mitigation actions taken by NS Power. The request focuses on projects with a cost change of 30% or more from their original approval.

Request IR-2:
Request IR-2: For each generation project included in the ACE 2026 having project total $5M and above, please provide: a) The primary purpose of the project (e.g., life-extension, reliability, compliance, capacity, energy, operational flex...

AI summary Request IR-2 asks for detailed information on generation projects in the ACE 2026 with a total cost of $5M or more, including their purpose, impact on asset life, LCOE, comparison with alternatives, planning framework assessment, and effects on rate base and revenue requirements.

Reference: Exhibit N-1: Application - Section 8.0 Distribution
Reference: Exhibit N-1: Application - Section 8.0 Distribution a) Please explain how Distribution capital planning is explicitly linked to historical and forecast customer additions, specifically addressing any deviations from the historic...

AI summary The document contains a series of questions aimed at understanding NS Power's distribution capital planning, spending, cost justification, benchmarking, connection standards, and cost-containment measures. The focus is on linking capital planning to customer growth, cost drivers, and ensuring investments align with forecast benefits.

100702DOE (NSPI) Ir 1 to 7 - Word 2 passages
Section 2
ment C0047278 - IT - Oracle MDM Upgrade Any additional projects reflected in ACE 2026 with a percentage change from the original approved project cost (first approval) greater than or equal to 30% 1. Please provide the initially approved p...

AI summary This document requests detailed information regarding the Oracle MDM Upgrade project and other projects with a cost change of 30% or more in ACE 2026. It asks for baseline costs, current costs, rate impacts, reasons for cost changes, and mitigation actions taken by NS Power.

Section 4
6. The expected impact of the project on rate base and annual revenue requirement over the remaining and extended life of the asset. Reference: Exhibit N-1: Application - Section 8.0 Distribution 1. Please explain how Distribution capital...

AI summary The document requests detailed explanations and justifications related to NS Power's distribution capital planning, spending, and cost-containment measures. It focuses on linking capital planning to customer additions, benchmarking with other utilities, and implementing cost controls to manage rate base and revenue requirements.

100705CA (NSPI) IR 1 to 32 - PDF 3 passages
34 Request IR-15:
34 Request IR-15: 35 36 With respect to Appendix I, CIs for transmission replacement and upgrade projects C0080110 and 37 C0080109, and 2024 ACE Plan Rebuttal Evidence (p. 22): 38 39 (a) Please confirm that NS Power's policy remains, "In t...

AI summary The proceeding requests Nova Scotia Power to confirm its policy on risk registers for transmission projects, explain the absence of risk registers for projects over budget, and justify the use of contingency budgets over ATO filings. It also asks about the impact of increased replacement structures on procurement and the Board's concerns regarding contingency amounts.

12 Request IR-20:
12 Request IR-20: 13 14 With respect to project C0080252 (Intelligent Asset Data Capture & Integration Platform): 15 16 a) Please provide a forecast of future costs to maintain and develop this platform. If no such 17 forecast is available...

AI summary The document requests Nova Scotia Power to provide details on the Intelligent Asset Data Capture & Integration Platform, including future costs, the federal funding agreement, potential risks, and clarification on a reference to 'ECC Renewable Dispatch Data.'

19 Request IR-32:
19 Request IR-32: 21 Reference: 2024 ACE Plan Rebuttal Evidence, p. 17, stating, "NS Power will continue to assess 22 how this data could be obtained," referencing a recommendation to breakdown distribution costs 23 into four new categorie...

AI summary The document requests NS Power to describe actions taken since April 2024 to assess acquiring historical and forecast distribution cost data for four categories, including new customers, load capacity increases, unmetered services, and external factors. NS Power notes that it has data from the Conference Board of Canada but lacks internal tracking for residential additions.

100706CA (NSPI) IR 1 to 32 - Word 6 passages
Section 6
contracts (Attachments 1 and 2). If the contracts were competitively bid, please provide documentation of the selection process. If not, please explain how NS Power minimized cost. Request IR-12: With respect to C0080134 (TUC2 Stack), the...

AI summary The document contains several requests for information regarding procurement processes and cost considerations for various projects, including TUC2 Stack, TUC3 Ash Hauling, and CT-BGT2 Engine Refurbishment. Requests focus on competitive bidding, cost minimization, and evaluation documentation.

Section 8
1. Please confirm that NS Power’s policy remains, “In the case of Transmission Replacement and Upgrade projects, the project risks and their potential impacts are well understood by the project team, therefore having a risk register for ea...

AI summary The text consists of a series of questions directed at NS Power regarding its risk management practices, budgeting mechanisms, and project management for transmission replacement and upgrade projects. Specific focus is on risk registers, contingency budgets, and the impact of changes in project scope on procurement and scheduling.

Section 11
1. Please provide support and context for the assertions that “it is not always possible to take an outage to L-6536” and that “Taking an outage to this line negatively impacts customer reliability in the area.” In your response, please ex...

AI summary The text consists of a series of questions directed at NS Power regarding transmission line outages, switch capabilities, replacement planning, contingency amounts, and cost justifications. It focuses on reliability impacts, switch types, replacement timelines, and cost estimation practices.

Section 16
ease elaborate on how execution of the plan is expected to reduce both outage events and customer hours of interruption. Request IR-26: With respect to Appendix G, Figures 5 and 7, and p. 21-22: 1. Please explain what is meant by the veget...

AI summary The text contains a series of requests for clarification regarding vegetation management practices, budget forecasts, and cost minimization actions related to a reliability program. Specific questions focus on reconciling planned and actual kilometers managed, wildfire risk, and the integration of vegetation management into project delivery models.

Section 21
of risks that were overlooked, overstated, or successfully mitigated; and 3. Staff response to emerging problems, such as whether internal communication was effective and whether mid-course action mitigated those problems. 4. If, for any o...

AI summary The text requests a review of NS Power's post-project reviews, focusing on risk management, internal communication, and quality control. It also asks for actions taken since April 2024 to assess the acquisition of historical and forecast distribution cost data across various categories.

Section 22
ghts; and 4. External factors driving costs, including supply chain issues, shifts in the regular/overtime labour breakdown due to other utility programs. 2. In the referenced RIR, NS Power stated: NS Power has data on single-family and mu...

AI summary The text discusses NS Power's data tracking challenges, specifically regarding residential additions and internal work orders. It requests information on changes to work orders since 2025, updates on a continuous improvement initiative, and plans for future system upgrades.

101193Letter NSPI re: Fourth Quarter 2025 Capital Reports 2 passages
Section 2 p. p. 0
the 2016 ACE Plan stakeholder engagement process.) - Report 5 Q4 Requirement Only Unapproved Spending Report. This report includes all projects that have been removed from rate base per the conditions established and approved in the CEJC a...

AI summary The document discusses the 2016 ACE Plan's stakeholder engagement process and the requirement for an unapproved spending report. It outlines the conditions for removing projects from the rate base and includes the 2025 income statement impact. The report has been updated based on the Board's directives and reflects a new approval threshold of $1,000,000, effective October 30, 2019.

Section 3 p. p. 0
ided in M08013 – IR‐9 has been broken out into separate Report 6, described below. This report has been amended to reflect the new Board approval threshold of $1,000,000, effective October 30, 2019.) - Report 6 Q4 Requirement Only Unapprov...

AI summary The document outlines several reports related to capital expenditures and regulatory compliance, including unapproved spending over $1,000,000, capital write-offs, routine expenditures, carryover expenditures, and retirements. These reports are required under specific Board directives and updated thresholds effective October 30, 2019.

101261IG (Wilson-CA) IR-1 to IR-3 - Word 1 passage
Section 3
Reference: Exhibit N-10, 2025 Q4 Capital Report Please advise whether any information contained in the filed 2025 Q4 Capital Report alters or affects Mr. Wilson’s opinions as previously expressed in this proceeding. If so, please: 1. Ident...

AI summary The document requests clarification on whether the 2025 Q4 Capital Report affects Mr. Wilson’s prior opinions and seeks his views on capping contingency amounts at 10% for NSPI projects lacking risk matrices, including its impact on the 2026 ACE Plan and whether other jurisdictions impose similar caps.

101714Undertaking List 1 passage
Nova Scotia Power Inc. - 2026 Annual Capital Expenditure (ACE) Plan - $284 million p. p. 0
Nova Scotia Power Inc. - 2026 Annual Capital Expenditure (ACE) Plan - $284 million DATE: UND# DESCRIPTION REQUESTED OF BY DATE DUE April 21, 2026 U-1 To advise what the phrase, "Transactions per labour hour" refers to in the report on the...

AI summary The document outlines five requests for information related to Nova Scotia Power Inc.'s 2026 Annual Capital Expenditure (ACE) Plan, including queries about terminology, cost allocation, service availability, project updates, and directives from the Minister.

102198Closing Submissions - CA 3 passages
Preamble p. p. 1
imization in areas where it is not currently scoped for use; and (3) NS Power should adopt the use of an equivalent to the Basis of Schedule for routines in which the work is not "reactive in nature." NS Power, in its Rebuttal Evidence, re...

AI summary The document discusses NS Power's response to recommendations regarding reporting practices for the Work Management and Scheduling & Dispatch project. NS Power argues that current reporting already captures benefits for capital projects and operating expenses and confirmed it can provide detailed tracking of transactions and compatible units tied to work orders and accounts.

New Customer-Driven Work Volumes p. pp. 3-4
New Customer-Driven Work Volumes Mr. Wilson states in his report that NS Power has failed to follow through on earlier commitments to collect better data on new customer-driven work volumes. He states that the company should distinguish ca...

AI summary Mr. Wilson criticizes NS Power for not collecting better data on new customer-driven work volumes, suggesting it would improve budgeting, forecasting, and rate design. NS Power disagrees, stating its current forecasting methodology has been effective and that gathering more detailed data would incur unnecessary costs.

Reliability-Related Projects p. p. 6
s based on anecdotal information as opposed to verifiable tracking. Continued use of this estimate certainly poses some difficulty in assessing whether the reliability plan investments are worthwhile. With respect to reliability-related pr...

AI summary The Consumer Advocate suggests that NS Power should provide a fuller inventory of spare parts to assess the cost-effectiveness of spare inventory pooling, despite NS Power's claim that it has already evaluated and rejected such arrangements. The Consumer Advocate argues that market conditions may have changed since 2024 and that this information could help assess the cost-effectiveness of pooling programs.

102208Closing Submissions - DOE 3 passages
Preamble p. p. 2
- These are the closing submissions of the Department of Energy, Government of Nova Scotia (the - "Department") regarding Nova Scotia Power Incorporated's ("NS Power", "NSP" or the "Utility") - 2026 Annual Capital Expenditure (ACE) Plan Ap...

AI summary The Department of Energy supports NS Power's 2026 ACE Plan but emphasizes the need for ratepayer affordability and cost-containment. Concerns are raised about the growing capital intensity and the need for comprehensive least-cost planning to ensure expenditures align with customer benefits and asset prudency.

Distribution p. p. 8
Distribution The Distribution portfolio demonstrates some of the most significant cumulative escalation levels within the reviewed sample. Of particular concern is the extent to which routine and recurring - programs have expanded into ver...

AI summary The Distribution portfolio shows significant capital expenditure increases without clear justification related to customer growth or reliability outcomes. Items such as Provincial Distribution ROW and New Customers Residential Routine have seen massive escalations, raising concerns about prudence, forecasting assumptions, and the classification of expenses as capital versus operating costs.

Request to the Board p. p. 8
Request to the Board - The review of projects contained in Appendix A representing projects with escalation levels of - 50% or greater indicates significant increases across Generation, Transmission, Distribution, - Hydro, and General Plan...

AI summary The document requests the Board to conduct enhanced scrutiny of projects with significant cost escalations across various categories. It argues that these increases are not solely due to external factors but reflect broader issues like scope expansion and misclassification of expenses. The Department recommends procedural reviews to ensure proper governance and ratepayer protection.

102213Closing Submissions - IG 8 passages
The Actual 2025 Spend confirmed in Undertaking U-5 p. pp. 2-3
project-level variances within the Response to U-5 are significant and undermine the position that the Year 2 update requires "no changes." A sampling of notable individual variances from U-5 include: - C0032382 Susie Lake Substation Addit...

AI summary The document highlights significant project-level variances in the 2025 capital expenditure forecast compared to actual spending, including major underspending and overspending across multiple projects. These variances undermine the claim that the Year 2 update requires no changes and raise concerns about the accuracy of the forecasts.

Meaning of "Scope" and "Scope Change" p. p. 6
inition and design phases of projects. Consistent with the PMI's PMBOK, NS Power's ability to influence cost outcomes for its projects is greatest at these early stages of the project.[22](#page-6-2) The Industrial Group submits that appro...

AI summary The Industrial Group argues that defining project scope should include deliverables and work required, not just intent, to ensure cost minimization and proper project management. They also suggest that scope changes should be narrowly defined to avoid unnecessary administrative burdens, referencing the CEJC and PMBOK guidelines.

The Proposed Definition Renders the Provision Meaningless p. pp. 6-7
The Proposed Definition Renders the Provision Meaningless NSPI itself testified that changes in "intent" that would trigger a scope change application would be "quite rare"[23](#page-7-0) and that NSPI "very, very rarely"[24](#page-7-2) de...

AI summary The proposed definition of scope change in the Capital Expenditure Justification Criteria (CEJC) is criticized for being too broad, potentially eliminating meaningful oversight. NSPI testified that scope changes are rare and that it rarely deviates from project intent once filed, suggesting the new definition may render the provision ineffective.

The Definition Should Be Consistent with NSPI's Established Practice p. p. 10
voir to its natural, pre-inundation levels, which was not a part of the approved project scope of work but in response to the water migration issues discovered after project approval.[36](#page-10-2) Once again, despite this confirmed scop...

AI summary The text discusses inconsistencies in how NSPI has handled scope changes in projects, such as the Tusket Main Dam Refurbishment, where significant changes occurred without proper applications. The Industrial Group argues that the proposed definition of 'scope' should align with established practices to avoid confusion and ensure consistency.

The Trend of Increased Spending p. pp. 11-12
The Trend of Increased Spending Against the CEJC definition of Routine Expenditures, the trend of significant increase in spending is problematic. As outlined in N-20, Routine Spending 2023-2026-IG, NSPI has increased its Program spending...

AI summary The document highlights a significant increase in Program spending by Nova Scotia Power Inc. (NSPI), rising by $90 million, or 70%, over the last four years. NSPI attributes this increase to factors such as right-of-way widening, new customer routines, utility-specific inflation, and the addition of new routines. This spending trend is being evaluated against the Capital Expenditure Justification Criteria (CEJC).

No Robust Routine Program-Level Review p. pp. 12-13
No Robust Routine Program-Level Review There is no distinct "routine review process" separate from NSPI's general capital scrutiny.[47](#page-13-0) NSPI relies on the same review process of any capital expenditure, and relies on the ACE pr...

AI summary The text discusses the lack of a distinct routine program-level review process for capital expenditures by NSPI, highlighting concerns about cost minimization, lack of monitoring for cost creep, and insufficient oversight of routine capital programs. It suggests that the Board should require NSPI to file detailed program-by-program reviews and establish a CEJC materiality trigger for routine capital growth.

The Identity and Access Management Project Illustrates the Problem p. pp. 16-17
The Identity and Access Management Project Illustrates the Problem NSPI confirmed that the Identity and Access Management (" IAM ") project was delayed following the cyber incident.[68](#page-17-0) The 2025 ACE Plan estimated this project...

AI summary The Identity and Access Management (IAM) project, initially estimated at $1.2 million in the 2025 ACE Plan, has seen its cost increase to $6.7 million due to delays caused by a cyber incident. NSPI claims the incident did not impact the cost increase, but the Industrial Group argues this position is not adequately supported.

CONCLUSION p. p. 20
CONCLUSION The Industrial Group respectfully requests that the Board: - 1. Direct NSPI to provide a more complete Year 3 update to the Five-Year Reliability Plan, including a reconciliation of planned versus actual spending, an explanation...

AI summary The Industrial Group requests the Board to direct NSPI to provide more detailed updates to the Five-Year Reliability Plan, revise the Scope Change definition, enhance cost-variance disclosure, and improve stakeholder engagement and coordination with IESO-NS in future filings.

102222Closing Submissions - NSPI 1 passage
Project Justification and Cost p. p. 13
CE Plan Hearing Transcript, April 22, 2026, page 434 (PDF page 82 of 254). Exhibit N-6, NSPI (NSEB) RIR-134. Exhibit N-6, NSPI (NSEB) RIR-134. - NS Power recognizes that the cost per kilometre increased in 2024 and 2025 and continues to wo...

AI summary NS Power acknowledges increased costs per kilometre in 2024 and 2025, attributing some of the rise to wildfire risk mitigation measures. The company is working with contractors to manage costs and improve efficiency. The effectiveness and timing of the New Distribution ROW program are emphasized, as delays could impact outage reduction and reliability targets.

102294Reply to Closing Submissions - NSPI 5 passages
2.2.3 Tusket Main Dam Refurbishment Project p. pp. 9-10
2.2.3 Tusket Main Dam Refurbishment Project The IG effectively suggests that the Tusket Main Dam Refurbishment Project ATO proceeding proves that NS Power can materially change how a project is built without calling it a scope change, whic...

AI summary The Tusket Main Dam Refurbishment Project highlights the regulatory process and oversight by the NSEB regarding cost overruns and the use of contingency funds. NS Power argues that the ATO framework provides sufficient oversight without requiring a scope change application, as the Board reviews cost increases triggered by unforeseen circumstances.

M08162, NS Power CI 29807 – Tusket Main Dam Refurbishment, Board Order, March 12, 2019. p. pp. 10-11
M08162, NS Power CI 29807 – Tusket Main Dam Refurbishment, Board Order, March 12, 2019. that experience significant cost increases without requiring a separate and inherently subjective determination of whether additional execution activit...

AI summary The document discusses NS Power's routine capital spending in the 2026 ACE Plan, noting that the increase in investment is due to the need to connect new customers and perform infrastructure upgrades, rather than a change in the nature of the work. The IG argues that a 70% increase over four years does not reflect a 'like-for-like' program as defined by the CEJC.

2.5 Rate Impacts p. pp. 15-16
enhanced cost-variance disclosure in future subsequent submittals for IT or cybersecurity-related projects affected by the 2025 cybersecurity incident".[11](#page-16-1) First, NS Power wishes to reiterate that there are no costs related to...

AI summary NS Power asserts that there are no restoration costs related to the 2025 cybersecurity incident in the 2026 ACE Plan and argues that existing filing requirements already provide sufficient oversight, making additional standardized variance reporting unnecessary.

5.5 Project Cost Escalation p. pp. 30-31
5.5 Project Cost Escalation DOE submits: The evidence demonstrates that material project escalation is not limited to isolated projects or unique operational circumstances but instead reflects a broader and recurring pattern across the uti...

AI summary DOE argues that project cost escalation across multiple categories indicates a recurring pattern, not just isolated issues. They note that the ACE Plan is a planning process, not a fixed-price commitment, and emphasize that budget changes over time do not necessarily imply imprudence. The regulatory framework, including ATOs, provides accountability for significant variances.

6.0 CONCLUSION In this proceeding, NS Power has demonstrated that the investments proposed in the 2026 ACE Plan are prudent, necessary, and aligned with the Company's statutory obligation to provide safe and adequate service to customers. The evidentiary record shows that these investments have been appropriately developed, assessed pursuant to the CEJC, and are responsive to the evolving operating conditions facing the system, including aging infrastructure, increasing electrification, and legislated policy requirements. The concerns raised by intervenors do not identify any material gaps in the existing regulatory framework or evidentiary record that would justify the imposition of additional reporting requirements or structural constraints. Further, introducing caps, duplicative reporting, or additional approval layers would not enhance oversight, but would instead risk delaying necessary investments and increase costs and operational risks. In terms of affordability and consciousness of the cost impact to customers, this is a serious issue for customers and one that NS Power is focused on addressing through solutions that maintain a safe and reliable energy supply for Nova Scotians while keeping rates low. At the project level, NS Power is required to pursue the least cost means of addressing identified risks. At the system level, overall capital spending and its impact on rates are assessed through the GRA process. Together, these processes ensure that customer impacts are considered alongside the need to maintain safe, reliable, and resilient service. For these reasons, NS Power respectfully submits that the Board should approve the 2026 ACE Plan capital projects and routines as filed, the revised Summary CEJC as amended in NS Power's Rebuttal Evidence, and decline the additional directives proposed by intervenors. p. pp. 34-35
6.0 CONCLUSION In this proceeding, NS Power has demonstrated that the investments proposed in the 2026 ACE Plan are prudent, necessary, and aligned with the Company's statutory obligation to provide safe and adequate service to customers....

AI summary NS Power argues that the 2026 ACE Plan investments are prudent and necessary, aligning with statutory obligations. They claim the investments are appropriately developed and assessed, with no material gaps in the regulatory framework. NS Power emphasizes affordability and the need to maintain safe, reliable service while keeping rates low. They recommend the Board approve the plan and reject additional directives.

103410Decision 17 passages
2.2.2 C0021608 – TUC Shoreline Sheet Pile Refurbishment p. p. 7
may have changed the scoring spread. The Board also expressed similar spread concerns related to scoring the options' costs, as it was not based on pro-rating an option cost to the lowest option cost. • The use of additional study data to...

AI summary The Nova Scotia Energy Board (NSEB) raised concerns about the cost estimates for the rock revetment option in the TUC Shoreline Sheet Pile Refurbishment project. NS Power completed additional studies that significantly increased the rock revetment option's cost, but the Board noted that the other options were not re-evaluated based on the new data, potentially affecting the cost-effectiveness of the chosen solution.

2.3.1.1 Findings p. pp. 18-20
2.3.1.1 Findings [44] The Board accepts that an increase in expenditure does not, in itself, mean that an activity ceases to qualify as routine. Required expenditures may reasonably vary with asset conditions, customer growth, system requi...

AI summary The Board acknowledges that increases in routine expenditures do not automatically disqualify activities as routine but is concerned that temporary cost increases may become embedded in historical data, influencing future forecasts. NS Power is urged to distinguish between structural and temporary cost drivers in future ACE Plans.

2.3.2 Enhanced Tracking and Cost Minimization p. pp. 20-21
2.3.2 Enhanced Tracking and Cost Minimization [49] The CA raised concerns regarding NS Power's ability to demonstrate cost minimization within the Distribution Routines. In his evidence, Mr. Wilson observed that regular and overtime person...

AI summary The CA raised concerns about NS Power's ability to demonstrate cost minimization in Distribution Routines, noting that overtime hours were not routinely tracked. NS Power clarified that while their accounting software tracks labour hours and costs, this information is not always used for forecasting, as highlighted in the exchange between Mr. Murphy and Mr. Beaton.

2.3.2.1.1 Findings p. pp. 21-24
2.3.2.1.1 Findings [55] The Board considers that NS Power's existing Work Management systems provide an opportunity to improve the assessment of Routine expenditures without creating an entirely new reporting system. The objective is not a...

AI summary The Board acknowledges NS Power's existing Work Management systems as a tool to improve the assessment of routine expenditures without creating a new reporting system. The focus is on evaluating whether the cost of recurring work is increasing or decreasing over time, particularly for routine capital spending, due to its materiality and labor and contractor use.

2.3.3.1 Findings p. p. 25
2.3.3.1 Findings [60] The Board considers this an important measure of program effectiveness. The Board accepts that increased D055 expenditure may not immediately result in a cost reduction in D005. However, over time, NS Power should be...

AI summary The Board emphasizes the importance of evaluating program effectiveness, noting that increased D055 expenditure may not immediately reduce D005 costs but should lead to long-term benefits such as reduced asset failure rates. The Board recommends reporting D005 and D055 on a comparable basis for assessment over time.

2.3.4.1 Findings p. pp. 26-27
2.3.4.1 Findings [64] The Board accepts that the formal Basis of Schedule process should not be imposed on all routine activities. However, the Board agrees with the underlying objective of the CA's recommendation. For planned routines inv...

AI summary The Board acknowledges that the formal Basis of Schedule process should not apply to all routine activities but supports the objective of ensuring proper planning and minimizing avoidable costs for significant routines. It suggests that NS Power's existing Work Management and Scheduling systems can achieve this goal effectively.

2.3.5 New Customer Routines p. p. 27
2.3.5 New Customer Routines [66] New customer routine capital expenditures represent the largest individual distribution routine subcategory with a budget of approximately $67.8 million in 2026. The 2026 budgets for D004 – New Customer Upg...

AI summary New customer routine capital expenditures are a significant part of the distribution budget, with a 2026 allocation of $67.8 million. NS Power uses expenditure-based forecasts, and Mr. Wilson suggests capturing more detailed customer data to improve forecasting and planning. NS Power argues that current forecasting methods have been effective, as no ATO was required for new customer routines in several years.

2.3.5.1 Findings p. pp. 27-28
2.3.5.1 Findings [69] The Board does not consider that the demonstrated accuracy of the forecasting methodology resolves the information issue raised by the CA. Forecast accuracy and forecast justification are distinct considerations. A fo...

AI summary The Board emphasizes that forecast accuracy alone does not resolve information issues raised by the Commissioner of the Inquiry. It stresses the importance of activity data, such as changes in customer mix and load increases, to assess expenditure forecasts. The Board also expects NS Power to provide supporting information when attributing cost increases to external factors like supply-chain constraints.

2.3.6 Spare Inventory Pooling p. pp. 28-29
2.3.6 Spare Inventory Pooling [74] Mr. Wilson examined whether spare inventory pooling could provide a more cost-effective alternative to NS Power independently maintaining certain high-value, longlead-time spare equipment. He recommended...

AI summary The document discusses spare inventory pooling as a potential cost-effective alternative for NS Power. Mr. Wilson recommends the Board obtain detailed information on NS Power's existing spare inventory. NS Power, however, has previously investigated spare inventory pooling and found it less effective and reliable than its current risk-based strategy, citing concerns with availability, compatibility, and transportation.

2.3.7 Routine Program Evolution and Capital Envelopes p. p. 30
2.3.7 Routine Program Evolution and Capital Envelopes [77] The IG raised concerns with respect to what it characterized as "capital envelope filling." It relied on evidence that when an initially contemplated project cannot proceed, NS Pow...

AI summary The IG and DOE raised concerns about NS Power's capital spending practices, including underspending on the ACE Plan and the expansion of capital envelopes for routine distribution projects. NS Power defended its approach, stating that its capital plan is risk-based and flexible, with expenditures varying from forecasts.

2.4.2 Directives p. p. 33
2.4.2 Directives [88] The Board finds that the sustained growth and evolving composition of the Routine Program require requires enhanced prospective transparency. The additional information is intended to preserve the regulatory efficienc...

AI summary The Board requires NS Power to enhance transparency and reporting for the Routine Program, including detailed financial and operational data, to ensure regulatory efficiency and proper cost justification. This includes rolling five-year comparisons, cost breakdowns, and explanations for changes in expenditures.

3.2 CEJC Scope Change Amendments and Recommendations p. pp. 36-37
3.2 CEJC Scope Change Amendments and Recommendations [99] Capital project Scope Change applications are currently addressed in Section 12.2 of NS Power's Capital Expenditure Justification Criteria. These are intended to address changes in...

AI summary The document discusses the need to define 'Scope Change' in the CEJC, as raised by the IG during the 2025 ACE Plan proceeding. The Board agreed and directed NS Power to consult on incorporating a definition into the CEJC for the 2026 ACE Plan.

8.2 Cost Implications in 2026 ACE Plan p. p. 84
8.2 Cost Implications in 2026 ACE Plan [211] While a detailed review was undertaken though the IR process and in questioning at the oral hearing, no additional capital costs were identified in the 2026 ACE Plan that specifically related to...

AI summary The 2026 ACE Plan did not identify additional capital costs related to the cybersecurity incident. NS Power used a coding system to exclude restoration costs from the rate base and addressed deferred projects through internal measures or Board approval.

9.0 CONTINGENCY ON PROJECTS WITHOUT RISK REGISTERS p. pp. 85-87
9.0 CONTINGENCY ON PROJECTS WITHOUT RISK REGISTERS [214] Mr. Wilson noted that NS Power appears to routinely include a 15% contingency in transmission line and transformer project budgets where no risk matrix is prepared. He also noted tha...

AI summary Mr. Wilson recommends reducing the contingency on transmission projects without risk matrices to 10%, arguing that consistent projects require lower contingency. NS Power disagrees, stating the absence of a risk register does not imply lower risk. The CA supports Wilson's recommendation.

9.1 Findings p. pp. 87-88
9.1 Findings [219] The Board recognizes the broader concern raised by the CA: whether projects are being properly scoped and whether the associated risks used to estimate contingency are understood before a budget is submitted, in accordan...

AI summary The Board acknowledges concerns about proper project scoping and risk-based contingency estimation. It finds that fixed contingency does not ensure clear project scopes or risk-based estimates. NS Power is urged to align project scoping with budget-estimation classes and base contingency on identified risks.

Preamble p. p. 89
ioning, including infrastructure removal, environment mitigation and sediment management. The estimate also includes $4.5 million in costs associated with preparatory activities ahead of construction. [235] The full decommissioning estimat...

AI summary The decommissioning cost estimates for the Mersey Hydro System do not include internal NS Power costs or socioeconomic impacts. Partial and full decommissioning estimates differ in detail and accuracy, with full decommissioning having a higher accuracy bound due to complexities like reservoir drawdown and archaeological concerns.

11.0 CONCLUSION p. p. 96
ant cost categories. For Routines using internal labour the information should also include a breakdown of labour costs (regular and overtime labour, budgeted costs and hours, actual costs and hours). - 3. NS Power must provide sufficient...

AI summary The document outlines requirements for NS Power to provide detailed cost breakdowns and explanations for changes in routine expenditures, including labor, materials, and contractor costs, and to assess the use of existing systems for monitoring productivity and cost trends. It also mandates the inclusion of Routine Expenditure provisions in the stakeholder review for the 2028 ACE Plan.

103411Board Order 1 passage
ORDER
ant cost categories. For Routines using internal labour the information should also include a breakdown of labour costs (regular and overtime labour, budgeted costs and hours, actual costs and hours). - 3. NS Power must provide sufficient...

AI summary The document outlines requirements for NS Power to provide detailed cost breakdowns and explanations for changes in routine expenditures, including labour, materials, and contractor costs. It also mandates monitoring of planned and reactive replacement activities and the inclusion of Routine Expenditure provisions in the 2028 ACE Plan.

20260421-1Hearing Transcript — 04/21/2026 (Revised Transcript - Refiled May 20, 2026) 15 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 April 21, 2026 PAGE NO. 5 questioning is and the easiness of the break, but I do 6 have to break before 1 o'clock. And then we'll take a 7 mid-morning break again at a convenient time, and 8 depending on...

AI summary Nova Scotia Power has applied for Board approval of capital projects and routine spending totaling approximately $284 million. The Consumer Advocate is the only other party to have filed evidence, with their expert, John Wilson of Grid Strategies, raising concerns about cost minimization opportunities and providing 15 recommendations related to various reports and criteria.

OPENING STATEMENT 27 NS DEPT. OF ENERGY
OPENING STATEMENT 27 NS DEPT. OF ENERGY 1 the burden of those overruns falls onto ratepayers. 2 For example, some of the hydro plants 3 produce minimal energy and yet work on them has often 4 proceeded in the face of significant cost overr...

AI summary The Department of Energy highlights concerns over cost overruns in hydro plant projects and calls for regulatory scrutiny of the 2026 ACE Plan, emphasizing the need for accountability and alignment with the IESO mandate. It also requests the Board to disallow ratepayer funding for certain projects, arguing that financial consequences should be borne by shareholders, not ratepayers.

1 procurement, and no timeline has been established for the
NS POWER PANEL 57 Cr-ex, (Murphy) 1 procurement, and no timeline has been established for the 9 Province sent a letter to the Board commenting upon 10 Synchronous Condenser Projects, and this is also addressed 11 in the Department's openin...

AI summary The discussion centers on Nova Scotia Power's progress with Synchronous Condenser Projects, including their current status with the Eastern Clean Energy Group, active negotiations with four parties, and incurred costs of just under $1 million. The conversation also touches on potential additional costs if responsibility for the project shifts to the IESO.

NS POWER PANEL 79 Cr-ex, (Murphy)
NS POWER PANEL 79 Cr-ex, (Murphy) system versus the new? I'm just trying to figure out where the numbers come from. A. (Beaton) Just so I'm not speaking to a calculation I'm not overly familiar I think we should add that explanation of the...

AI summary The discussion revolves around Nova Scotia Power's method of tracking efficiency improvements, specifically through labour hours and transaction per hour ratios. The witness explains that while overall program-level efficiency is measured, individual project-level tracking is not feasible.

NS POWER PANEL 83 Cr-ex, (Murphy)
NS POWER PANEL 83 Cr-ex, (Murphy) 1 programs and come up with a figure, but how does that 13 would then be tracked back to capital programs and 14 projects and different expense accounts, right? 15 (Beaton) Yes. Yeah, as I said, A. 16 ever...

AI summary The discussion revolves around the tracking of capital programs and expense accounts, with a focus on how work orders are tied to GL accounts and capital budgets. There is also a mention of the WAM Project and an extension of its reporting period.

NS POWER PANEL 89 Cr-ex, (Murphy)
NS POWER PANEL 89 Cr-ex, (Murphy) 1 that would benefit the future load forecasting. 2 Historically, we've seen using information such as housing 3 starts, that this would be somewhat of a proxy for have 4 not shown to be an accurate reflec...

AI summary The discussion focuses on the limitations of using historical data like housing starts for load forecasting and the adequacy of current data sources such as AMI for distribution planning and cost allocation. The speaker emphasizes that existing data is sufficient for planning and that cost allocation methods would remain unchanged.

NS POWER PANEL 93 Cr-ex, (Murphy)
NS POWER PANEL 93 Cr-ex, (Murphy) 1 2 3 4 5 routinely include a 15% contingency in transmission line and 8 transformer project budgets where no risk matrix is prepared. And I understand five out of seven of 6 the projects in this Applicati...

AI summary The discussion centers on Nova Scotia Power's use of a 15% contingency in project budgets for transmission lines and transformers without a risk matrix. The concern raised is that if risks are well understood, the contingency may be unnecessarily high. Nova Scotia Power defends the 15% contingency as necessary to account for risks such as outage schedules, terrain, and material costs.

NS POWER PANEL 95 Cr-ex, (Murphy)
NS POWER PANEL 95 Cr-ex, (Murphy) 1 have the ability to properly mitigate those risks in your 2 planning? 3 A. (Beaton) So we do mitigate the 4 risks in our planning, but the nature of the work, certain 5 risks cannot be schedules being li...

AI summary The discussion revolves around risk mitigation in project planning, particularly highlighting the challenges of scheduling and the use of LIDAR data. The speaker acknowledges past issues with ATOs due to incomplete data but notes improvements in forecasting and the use of a 15% contingency for projects.

NS POWER PANEL 153 Cr-ex, (Powell)
NS POWER PANEL 153 Cr-ex, (Powell) 1 A. (Beaton) So the 26 percent 2 increase in per kilometre rate is A, it's virtually all 3 it's all incurred and completed by contractors, so the 4 only two largely the only two costs in these projects 5...

AI summary The discussion focuses on a 26% increase in per kilometre rates for a project, primarily driven by contractor costs and administrative overhead. The increase is attributed to inflationary pressures and challenges in resource allocation. Detailed breakdowns of the cost drivers are not available, but efforts are being made to ensure efficient and safe work completion by contractors.

NS POWER PANEL 171 Cr-ex, (Rudderham)
NS POWER PANEL 171 Cr-ex, (Rudderham) 1 frequent basis for the foreseeable future, we thought it 2 best to include them in the routine program for approval 3 on a go-forward, starting this year. 4 We've seen significant increases 5 related...

AI summary The discussion addresses rising costs in routine programs, particularly due to inflation and increased vehicle and transformer costs since the onset of the pandemic. The speaker mentions a significant increase in costs from $10 million in 2023 to an estimated $70 million, with ongoing inflationary pressures impacting the utility sector.

NS POWER PANEL 173 Cr-ex, (Rudderham)
NS POWER PANEL 173 Cr-ex, (Rudderham) 1 We added the Dam Safety Routine a 2 number of years ago. 3 So without going through the list line 4 by line, it's not I'm not solely attributing that to 5 the three new ones this year. 6 Okay. So tha...

AI summary The discussion centers on the Dam Safety Routine costs and NSP's review process for routine capital programs. The witness indicates that while there is no specific routine review process, all capital expenditures, including routines, follow the same procurement and scrutiny processes as other capital costs.

NS POWER PANEL 177 Cr-ex, (Rudderham)
NS POWER PANEL 177 Cr-ex, (Rudderham) 1 routine, keep these trucks on the road longer, that's 2 going to have an impact on the operating expenses. The 3 maintenance costs on those trucks near the end of their 4 life increases significantly...

AI summary The discussion focuses on the impact of delaying vehicle replacements on operating expenses and safety, as well as the development of the ACE Plan, which prioritizes affordability and least-cost methods for customers. The conversation also touches on capital expenditure decisions and their internal considerations.

NS POWER PANEL 181 Cr-ex, (Rudderham)
NS POWER PANEL 181 Cr-ex, (Rudderham) 1 cost method to complete this work. 2 There would certainly be overarching 3 strategies such as the strategic procurement initiative 4 that Mr. MacIntosh would have referenced earlier that 5 wouldn't...

AI summary Ms. Rudderham is following up on questions about the synchronous condensers project, noting an increase in projected costs from the 2024 ACE Plan to the 2025 ACE Plan, and confirming the current projected cost of $365 million for the 2026 to 2029 project period.

Section 161
recorded as capital costs? - A. (Beaton) No, they weren't. Part of the work we did last year was to ensure that no costs related to the restoration due to the cyber event were captured in any capital project. So those all would have been b...

AI summary The discussion confirms that cybersecurity-related restoration costs were not included in capital projects and were instead handled separately by the utility or through insurance. A monthly review process ensures that such costs are excluded from the rate base, with quarterly adjustments made accordingly.

NS POWER PANEL 275 Cr-ex, (Rudderham)
NS POWER PANEL 275 Cr-ex, (Rudderham) previously you had stated the way that you've defined scope change in scope in the current Application is because it's the it's the way you could manage it, and I assume that that means there'd be too...

AI summary The discussion addresses the challenge of applying a set percentage variance to projects with varying quantities, particularly in distribution rights-of-way and transformer replacement projects, highlighting the complexity in managing cost variations for such work.

20260422-1Hearing Transcript — 04/22/2026 (Revised Transcript - Refiled May 20, 2026) 19 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. U-14 To provide the data on tree contacts on the 69kV lines after the Vegetation Management Program started 345 U-15 To complete the column called "2025 Forecast" with the most recent Q-4 inform...

AI summary The text outlines various procedural items from a regulatory proceeding, including requests for data on vegetation management programs, cost variances, and table verification. It includes matters related to transmission line replacements, cost per kilometre increases, and customer interruptions.

1 want to scroll down to the next page, Rob. 2 BY MEMBER MURPHY: 3 Q. Nova Scotia Power said neither a 4 cost/benefit analysis nor an EAM was required for the 5 project. Instead, an options analysis was completed by a 6 third party, the th...

AI summary Member Murphy questions the scoring methodology used in the options analysis for a project, specifically the criteria and weightings assigned to cost and design. NS Power explains that the design criteria was the most important factor, with cost being weighted second lowest because it was necessary to ensure the option met the design requirements first.

NS POWER PANEL 383 Questions, (Murphy)
NS POWER PANEL 383 Questions, (Murphy) 1 order to be comparable at this particular scoring your 18 related to these options done on a pro-rated basis rather 19 than the way it was presented by CBCL? If it was done on INTERNATIONAL REPORTIN...

AI summary The discussion revolves around the scoring of two infrastructure options — retaining wall and rock revetment — with the latter being preferred due to meeting design criteria. The scoring discrepancy is attributed to the method of cost allocation, with a pro-rated basis potentially reducing the spread between the two options.

NS POWER PANEL 393 Questions, (Murphy)
NS POWER PANEL 393 Questions, (Murphy) 1 align. And if there were changes to the timeline of the 13 Provided the bathymetry, the geotech work, and the 14 environmental studies, coastal studies, and whatnot, were 15 not completed as part of...

AI summary The text discusses potential cost reductions for the combi-wall option based on the completion of bathymetry, geotech work, and environmental studies. It references a report suggesting that these studies were not completed during the predesign phase, which may have led to higher-than-necessary cost estimates.

NS POWER PANEL 397 Questions, (Murphy)
NS POWER PANEL 397 Questions, (Murphy) 1 for the rock revetment option. However, the information 2 would also lead to increased cost for the combi-wall 3 option as well. And all of that information we received 4 through those studies would...

AI summary The text discusses the evaluation of different construction options for a project, particularly focusing on the encapsulation retaining wall and combi-wall options. It mentions that the encapsulation retaining wall did not meet structural requirements, while the combi-wall option would have increased in cost due to seabed conditions. Preliminary analysis determined that work on the seabed was necessary to meet design criteria.

NS POWER PANEL 407 Questions, (Murphy)
NS POWER PANEL 407 Questions, (Murphy) 1 criteria, it being the lowest cost and it being a simple 2 design that can be executed in the window that it needs to 3 be executed in, having the minimal impact on Tufts 3 4 returning to service. 5...

AI summary A concern is raised about the selected project option's cost now being outside the accuracy range of the initial estimate, which was -50% to +100%. This discrepancy may affect the decision's validity, and the need to reassess options with new information is emphasized.

NS POWER PANEL 419 Questions, (Murphy)
NS POWER PANEL 419 Questions, (Murphy) there's actually less corrosion in that environment than there would be if it's offline and it's colder and it's damp, you get moisture coming into the machine. Q. Okay. So in that context, would it m...

AI summary The discussion focuses on the operational costs and corrosion risks of running energy units, with a mention of Nova Scotia Power's consideration of purchasing a refurbished engine. The cost of fuel is compared to the cost of corrosion, and a question is raised about whether a quote was obtained for a refurbished engine.

NS POWER PANEL 437 Questions, (Murphy)
NS POWER PANEL 437 Questions, (Murphy) 1 So as a part of this capital 8 feeders 9 MEMBER MURPHY: Okay. Thank you. 10 Rob, can you go to Exhibit N-6, PDF 11 page 67? Five sixty-seven (567). 12 BY MEMBER MURPHY: 13 And this table provides th...

AI summary Member Murphy questions the significant increase in cost per kilometre for right-of-way spending from 2019 to 2023, noting a rise from $33,000 to $56,000 per kilometre, and further increases projected for 2024 and 2025. The response attributes the increase to inflation and rising costs of machinery and equipment in the Vegetation Management Program.

NS POWER PANEL 503 Questions, (Murphy)
NS POWER PANEL 503 Questions, (Murphy) 1 engagement and stakeholder process to really understand 2 the socioeconomic impacts and costs associated with that 3 decommissioning. There would be a significant impact on 4 the residents and prope...

AI summary The discussion centers on the decommissioning of hydro systems, emphasizing the need for extensive stakeholder engagement to evaluate socioeconomic impacts and costs. The Chair questions whether cost comparisons between decommissioning options are being developed at the same level, with a response indicating that full decommissioning may be less costly than partial decommissioning in some cases.

Section 112
1 going. Right there, (b). Went by it again. 2 Keep going. Next one. This one, this 3 table. 4 BY THE CHAIR: 5 Q. It just seems like the 6 especially there seems to be a cost that's going up, the 7 actuals. Like, we started around 8,900. T...

AI summary The discussion revolves around increasing costs per unit for events, with actual costs rising from around $17 million to $21.2 million despite a decrease in the number of events. The speaker attributes this to factors such as material costs and inflationary impacts.

NS POWER PANEL 521 Questions, (Chair)
NS POWER PANEL 521 Questions, (Chair) 1 that are reflected in this routine. It's also there is 2 also variability in terms of the costs associated with 3 certain types of work. So not every pole replacement, not 4 every replacement of a of...

AI summary The discussion highlights variability in costs for infrastructure work due to factors like overtime and location, and emphasizes the focus on reliability improvements through targeted programs and dedicated teams.

NS POWER PANEL 529 Questions, (Chair)
NS POWER PANEL 529 Questions, (Chair) 1 Q. And I was just wondering if those 14 Q. Okay. My next question relates 15 to it's basically the project Exhibit N-6, PDF page 16 605, and it's Board IR-146. But it relates to the 17 intelligent as...

AI summary The Chair of NS Power Panel 529 asks about the cost structure of the intelligent asset data capture and integration platform project, including the role of third-party funding and the inclusion of end user licenses in the total project cost estimate of $10.3 million.

NS POWER PANEL 541 Questions, (Chair)
NS POWER PANEL 541 Questions, (Chair) 1 put the page number on this one. So it's IR-182, Board 2 IR-182. Okay. And it's (a). 3 BY THE CHAIR: 4 And the question was: Q. 5 6 7 8 9 Given that the Plan is projected to cost approximately $1.3 [...

AI summary The Chair of the NS Power Panel 541 questions whether NS Power has calculated the impact on rates from the Five-Year Reliability Plan, which is projected to cost approximately $1.3 billion over five years. The answer indicates that the investment is included in the General Rate Application (GRA) before the NSEB in matter M12451 and that the plan follows a least-cost approach to meet performance standards by 2029.

Cr-ex, (Kayter)
Cr-ex, (Kayter) 1 up question on that. 2 So setting the contingency level at 10 3 percent rather than 15 percent creates a couple of 4 benefits. First is that it creates a more appropriate 5 signal to the staff of Nova Scotia Power to cont...

AI summary The discussion focuses on setting a contingency level at 10% rather than 15% to help control costs and prevent unnecessary additions to the rate base. It also highlights the importance of appropriate contingency levels to ensure proper regulatory oversight and cost management in projects.

Section 161
INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS in some cases, I left some points, you know, sort of to the Board's discretion and others that I made more concretely. BY MR. KAYTER: Q. Thank you, Mr. Wilson. Two questions anticipate...

AI summary The discussion centers on acceptable levels of project cost escalations, referencing the Board's non-binding contingency guidelines and a recommendation for a 10 percent contingency cap on transmission projects without risk matrices. Nova Scotia Power is noted as following these guidelines generally.

Section 162
he non- binding contingency guidelines have been worked out effectively and Nova Scotia Power's generally following those. So that's one mechanism for determining what level WILSON Cr-ex, (Kayter) INTERNATIONAL REPORTING INC. CERTIFIED COU...

AI summary The discussion outlines mechanisms for determining reasonable cost escalation for approved capital projects, including adherence to contingency guidelines, potential ATO proceedings for cost overruns, and consideration during general rate cases if cost overruns affect the rate base.

Section 163
sort of say that there's a single percent that one can say is the amount of cost escalation for a specific approved capital project that can be expected to be reasonable and then, Cr-ex, (Kayter) INTERNATIONAL REPORTING INC. CERTIFIED COUR...

AI summary The discussion revolves around cost escalation for approved capital projects and the need for cost containment measures to mitigate overruns. The witness suggests that cost containment strategies and third-party reviews of reliability plans could help address the issue.

Section 165
t use out of generation assets, so that would be the synchronous condensers or, you know, whatever solution is approved in the forthcoming proceeding on that topic. So you've got a Cr-ex, (Kayter) lot of technology up there that Nova Scoti...

AI summary The discussion addresses concerns about increasing costs due to third-party vendors and supply chain issues, with the speaker noting that these are widespread challenges. The speaker also references ongoing projects and technologies being implemented by Nova Scotia Power to mitigate costs and avoid unnecessary expenses.

Section 166
diction that I'm working in right now. So, yes, I think costs are going up as a result of those issues. I do have a recommendation in my testimony or my evidence regarding WILSON Cr-ex, (Kayter) INTERNATIONAL REPORTING INC. CERTIFIED COURT...

AI summary The speaker discusses rising costs due to supply chain issues and suggests pooling practices among utilities like those in New Brunswick, PEI, and Newfoundland as a potential solution. They note that raw material costs are a major driver of these increases and that a single utility cannot address the problem alone.

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 →