Topic/Matter Intersection

Topic:"Cost Considerations" in M12665

Matter: Nova Scotia Power Inc. - Fuel Adjustment Mechanism (FAM) Audit, conducted by Bates White for 2024 and 2025
14 passages 2 documents

Cost Considerations across all matters →

N-42022-2023 FAM Audit Action Plan Update Attachment 1 - Redacted 2 passages
Row Recommendation
REDACTED 2022-2023 FAM Audit Action Plan Update Attachment 1 Page 7 of 18 Row Recommendation Action Plan Response from NS Power July 2026 Update 9 Recommendation VII-1: FT Pipeline On an annual basis, NSPI should formally quantify what mix...

AI summary The document discusses NS Power's response to a recommendation regarding the formal quantification of short-term and long-term FT pipeline contracts to minimize costs for FAM customers. NS Power plans to analyze supply and pipeline capacity options beyond the typical procurement window and incorporate the findings into the Annual Natural Gas Report starting in 2025.

REDACTED 2022-2023 FAM Audit Action Plan Update Attachment 1 Page 18 of 18
REDACTED 2022-2023 FAM Audit Action Plan Update Attachment 1 Page 18 of 18 The next step was to implement a representation of CBL as a basis of comparison to what was actually achieved through load shifting, including seasonal and hourly l...

AI summary The document discusses the implementation of a Cost-Based Load (CBL) scenario as a comparison to load shifting strategies, including seasonal and hourly shifts using forward replacement pricing. The scenario simulates PHP behavior on an embedded LIIR rate and was discussed with Bates White and the FAM Small Working Group during a Q2 meeting. NS Power seeks stakeholder feedback on the recommendation and potential additional analysis.

N-52024-2025​ Bates White FAM Audit Report - Redacted 12 passages
Section 199
plant's initial cost estimate for the work, but upon further scoping of the work for completion in June, the revised estimate indicated that the actual cost would be lower than originally anticipated. The second was a scope of work change...

AI summary The text discusses changes in cost estimates and scope of work for projects at Trenton and PTMT, including revised cost estimates, purchase orders, and invoices. NSPI provided documentation for these changes, including invoices and purchase orders, and explained cost differences due to timing and refined estimates.

Preamble
In our report for the prior audit period, we offered one solid fuel procurement recommendation. We concluded and recommended: Conclusion IV-18: As NSPI's solid fuel consumption continues to fall, NSPI may face more difficult conditions in...

AI summary The audit report highlights NSPI's challenge in managing fuel procurement as solid fuel consumption decreases, particularly with contracts requiring minimum volume thresholds. NSPI accepted the recommendation to model shortfall payments and has since renegotiated the relevant contract to eliminate minimum volume provisions, addressing the issue.

V.C. Conclusions
to Aligne and Oracle. Conclusion V-7: NSPI's fuel handling costs at International Pier and Point Tupper Marine Terminal decreased by 67 percent and 42 percent, respectively, from the prior year. Conclusion V-8: NSPI undertook several studi...

AI summary NSPI experienced significant reductions in fuel handling costs at two marine terminals. Contract compliance with solid fuel suppliers was positive, and inventory management was reasonable. In 2025, NSPI deferred coal deliveries due to a compliance certificate affecting fuel mix and hedging strategies.

VI.B.1.e. Fourth Quarter 2024
supply, which had the highest forecasted biomass consumption of any forecast observed. Also, in the table below, we are including the November 2024 contract for GMT of 275 " Biomass Amendment." 276 " Biomass Purchase Sale Agreeme...

AI summary NSPI procured more primary biomass fuel than forecasted, leading to surplus purchases and increased costs for FAM customers. However, the PHB unit generated significant OBPS credits, reducing costs for FAM customers. The procurement decisions reflect the dynamics of the biomass fuel market in Nova Scotia.

VI.B.8. Other Biomass Fuel Contracts and Procurement
an estimated cost of $26,000. The NSPI team moved quickly to get this issue addressed, proposing internal approval for this expense and receiving it on the same date as PHP's email (October 30, 2024). Over the next several weeks, PHP would...

AI summary NSPI incurred costs related to an incident involving PHP, with internal approvals and ongoing communication. The work was deemed necessary for safety and operations, and NSPI questioned whether PHP should bear the costs due to its responsibilities under the operations and maintenance agreement.

The TCPL and PNGTS Open Seasons
The TCPL and PNGTS Open Seasons In July and August of 2025, TCPL and PNGTS issued coordinating Open Seasons for new FT capacity on their respective systems.320 The TCPL open season invited prospective shippers to bid on up to MMBtu/day of...

AI summary In 2025, TCPL and PNGTS launched coordinated open seasons for new FT capacity. NSPI modeled the economic implications of this opportunity, considering factors like generation capacity, gas prices, and pipeline costs. The analysis concluded that the increased costs of additional pipeline capacity make bidding unwise, with future open seasons to be evaluated using updated assumptions.

X.B.3.c.iii. Root Cause Analysis Review
cludes ongoing access to specialized parts, service capabilities, spare engines, and technical expertise that are critical to maintaining the reliability of NS Power's legacy combustion turbine fleet. When we requested NSPI's estimate of t...

AI summary The document discusses the maintenance and reliability of NS Power's legacy combustion turbine fleet, including the use of a leased engine to avoid displacement of generation to higher-cost resources. It also highlights the need for NSPI to confirm whether incremental FAM costs were incurred during an outage and to refund them if so. NSPI is conducting third-party audits to evaluate vendor refurbishment practices.

Figure X-27: OM&G Costs During Audit Period ($/MWh) 487
Figure X-27: OM&G Costs During Audit Period ($/MWh) 487 Plant OM&G Costs ($mm) MWh OM&G Costs per MWh Combustion Turbines $4.2 35,367 $117.41 Biomass $12.6 346,589 $36.43 Wind $18.8 502,901 $37.39 Trenton $28.2 1,985,466 $14.21 Hydro $22.3...

AI summary The document presents OM&G costs for various power plants during an audit period, highlighting that labour constitutes the largest portion of these costs. NSPI spent $115.5 million on labour, a 10% increase from the prior audit period. Labour accounted for 59% of OM&G expenses, with NSPI regularly overestimating regular labour and underestimating overtime and contract labour.

Figure XI-27: Start-up and cycling maintenance costs, 2024 and 2025
Figure XI-27: Start-up and cycling maintenance costs, 2024 and 2025 Unit Number of Start-Ups (Cold, Warm, Hot) Average cost per Total start-up start-up costs Total cycling and maintenance costs Total start-up and cycling and 2024 2025 main...

AI summary The text discusses start-up and cycling maintenance costs for various power units in 2024 and 2025. It highlights that frequent cycling of baseload units increases maintenance costs, and NSPI reports a significant reduction in these costs compared to the prior audit period.

Figure XII-3: Output, Cost of COMFIT Resources (by project) 602
Figure XII-3: Output, Cost of COMFIT Resources (by project) 602 Canacity l Total Cost Affinity Renewables Inc. Fitzpatricks 1.40 4,727 4,743 $619,234 $621,313 $131.00 Affinity Wind LP Kemptown 4.99 16,310 16,212 $2,136,662 $2,123,772 $131....

AI summary Figure XII-3 presents the output and cost of COMFIT resources by project, including details such as capacity, output, and total costs for various wind energy projects in Nova Scotia.

XII.B.1.c.i.1. Economic Imports
XII.B.1.c.i.1. Economic Imports We begin here with economic imports. Deciding to import power into Nova Scotia is not always based on a simple comparison of the cost of energy at the external source and . There are several other costs invo...

AI summary The document discusses the economic considerations of importing power into Nova Scotia, including transmission costs, fees, and the use of tools to evaluate the full cost of imports. NSPI's traders acted prudently, with most transactions providing economic benefits to customers, though one exception resulted in a loss due to unexpected price increases.

XV.B.7. Bates White's 2022-2023 Audit Recommendations
due to the inability of the PortOps model to converge, - iii. Calculation of costs/benefits would be highly dependent on assumptions, if load rebalancing post deviation is required for the analysis, - iv. Costs associated with the initial...

AI summary The document discusses challenges in calculating costs and benefits related to load rebalancing and dispatch decisions due to limitations in the PortOps model and lack of logged deviation data. It also highlights the inability to quantify load shifting benefits for real-time ADC and the potential for net costs from real-time load deviations.

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 →