Topic:"Cost Considerations" in M12743

Legend: Note: This checklist is intended to be used for IT/OT projects. In lieu of specific AACE guidelines for these types of projects, this checklist was developed by NSPI following the principles of the guidelines to demonstrate confide...

AI summary This checklist, developed by NSPI for IT/OT projects, was created in the absence of specific AACE guidelines for such projects. It follows AACE principles to demonstrate confidence in the maturity of cost estimates for these initiatives.

T203 - APPENDIX A - TCO PROJECT FINANCIALS - IT - Identity and Access Management Project costs must be detailed by major project phase and would normally align with a potential stage-gate (i.e. preliminiary design, intial scoping, requirem...

AI summary The document outlines the requirement to detail project costs by major phases and align them with stage-gate milestones such as preliminary design and initial scoping. It also mentions the potential for expanding tables to include additional phases and fiscal years as needed.

Table A.1 - Project Costs (CAPEX or OPEX) Project Costs (gross) CAPEX 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Decommission 20 Servers (TBD) OPEX $ - $ - $ 24,000.00 $ 48,000.00 $ 48,000.00 $ 48,000.00 $ 48,000.00 $ 48,000.00...

AI summary Table A.1 outlines project costs (CAPEX or OPEX) over multiple years, including decommissioning servers, managed services, licensing, and software upgrades. The data shows expenditures and savings associated with these projects from 2024 to 2034.

Table A.4- TCO Financial Summary TCO Total 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Total Capital Costs (Line 4) $ 6,756,522 $ 121,418 $ 3,091,122 $ 3,543,983 $ - $ - $ - $ - $ - $ - $ - $ - Total Sustaining Operating Costs (...

AI summary The document presents a financial summary of Total Cost of Ownership (TCO) for various years, including capital costs, sustaining operating costs, operating savings, and net TCO. It also includes a section on Full-Time Equivalent (FTE) requirements, though most data is missing or not provided.

NON-CONFIDENTIAL 1 are not available. NS Power acknowledges that the presentation of overtime would have 2 been more consistent with past practice by doubling the Regular Labour rate, and 3 calculating back to the number of units. However,...

AI summary NS Power acknowledges that overtime costs were calculated differently from past practice but explains that the actual overtime cost was incurred due to work after hours to avoid interrupting regular work hours, with supporting time reports lost in a cyber incident.

18 Cost Element Total Regular Labour $255,474 Overtime Labour $9,475 Office Supplies $463 Travel Expense $30 Airfare $3,032 Consulting $1,655,609 Application Software $490,944 Legal $34,119 Meals $8,222 Administrative Overhead $145,138 AFU...

AI summary The text outlines the detailed cost estimate for a project, including a contingency percentage applied to all project costs. The contingency amount is justified based on risks related to the Identity Governance and Administration framework. NS Power states that these risks have not materialized and the full contingency may not be needed. The project is classified under DG4 with a contingency range of 10-30%, and the included contingency of 15% is within this range.

REDACTED 1 Request IR-8: 2 3 With respect to Appendix A, please provide the following information: 4 5 (a) Working copy of the TCO Project Financials. 6 7 (b) Identify sources of each figure included in the analysis, and provide supporting...

AI summary The document outlines a request for detailed financial information on the TCO Project, including sources for figures, trend explanations, and cost-minimization strategies. NSPI responds by referencing attachments and tables, including Managed Security Services (MSS) licensing details and SaaS cost assumptions.

CI C0068714 – IT – Identity and Access Management (NSEB M12743) NSPI Responses to Nova Scotia Department of Energy Information Requests 1 Request IR-1: 8 9 This six-month period is standard procedure for all capital projects and is aligned...

AI summary The text discusses NSPI's response to information requests regarding a six-month standard procedure for capital projects, aligned with NS Power's Board-approved Capital Expenditure Justification Criteria. It also addresses a request for a formal cost-benefit analysis comparing IBM Managed Security Services with in-house identity and access management capabilities.

CI C0068714 – IT – Identity and Access Management (NSEB M12743) NSPI Responses to Industrial Group Information Requests 1 Request IR-3: 24 predefined application blocks, combining one-time integration costs with ongoing license 25 fees, wh...

AI summary NSPI outlines the transition of onboarding costs from CAPEX-heavy to OPEX-driven, based on predefined application blocks and licensing models. Operational cost escalations may occur due to increased user populations, application onboarding volumes, and variability in service consumption. Confidence in OPEX forecasts is moderate to high, grounded in contractual pricing and established licensing models.

NON-CONFIDENTIAL 1 (e) Forecasted costs include costs associated with NS Power's new IAM vendor. Forecasted 2 cost savings are associated with either internal costs or costs associated with previous 3 vendors and quotes. Date Filed: June 2...

AI summary The document discusses forecasted costs and savings associated with NS Power's new IAM vendor and previous vendors, as part of a regulatory filing dated June 2, 2026.

REDACTED C0068714 NSEB IR-7 Attachment 5 Page 12 of 12 REDACTED (CONFIDENTIAL INFORMATION REMOVED) External cost is subject change based on scope, timeline and contract negotiations. Internal costs will be adjusted accordingly.

AI summary The document notes that external costs are subject to change based on factors such as scope, timeline, and contract negotiations, with internal costs adjusting accordingly. This highlights the interdependence between external and internal cost management in the context of the proceeding.

are not met. [13](#page-8-1) As such, NS Power submits that the project cost variance is not attributable to the cybersecurity incident and that there is no basis to disallow AFUDC. 2.3 Contingency Budget The CA submits that the 15% contin...

AI summary NS Power argues that a cybersecurity incident did not impact project AFUDC costs. The CA suggests that the 15% contingency applied to the project is unreasonable, given the project's progress, and recommends reducing it. NS Power explains that contingency covers risks like additional work and infrastructure changes, which are managed through its service provider, OnX.

Request IR-8: - In reference to the Capital Project Detailed Estimate: - a) Please explain the basis of the unit estimate for Regular Labour. - b) Why is HR/HR IT included in Regular Labour for implementing a capital project? - c) What is...

AI summary Request IR-8 seeks explanations on the Capital Project Detailed Estimate, including labor cost bases, HR/IT inclusion, IAM roles, travel expenses, license useful life, consulting expenses, and internal staff limitations. Questions focus on cost breakdowns, roles, and justification for external consulting.

Request IR-10: Please provide a copy of Appendix A – Total Cost of Ownership Project Financials – IT – Identity and Access Management in excel format with formulas intact and protections removed.

AI summary Request IR-10 seeks an Excel copy of Appendix A – Total Cost of Ownership Project Financials for IT Identity and Access Management (IAM), requiring formulas and protections to be intact and removed, respectively.

change order(s), or a replacement agreement) and whether NSPI incurred 5 any termination, suspension, delay, or other penalty or fee under the initial 6 executed contract (and if so, provide details). - 7 (c) Please confirm whether the 202...

AI summary The text outlines requests for information regarding procurement processes, project scope changes, and cost variances related to a cybersecurity project under the 2026 ACE Plan. It highlights increased consulting costs due to updates in the National Institute of Standards and Technology's Cyber Security Framework.

- 33 (b) Please explain the increase of approximately $5.5 million in the project 34 estimate since the 2025 ACE Plan forecast. Please provide a breakdown 1 of the increase by cost driver and by year. 2 (c) Please specifically address: 3 4...

AI summary The document requests an explanation for a $5.5 million increase in project estimates since the 2025 ACE Plan forecast, including a breakdown by cost driver and year. It also asks about cybersecurity impacts, changes to the NIST CSF, and details on sustaining OPEX and decommissioning savings.

- Information Requests in the matter M12743 – Approval of the Capital Work Order CI C0068714 - IT-Identify & Access Management, $6,756,522 - IR-1. The ACE Plan 2025 budget for C0068714 was $1.27M. Please explain the change in scope of work...

AI summary The document contains information requests related to the approval of a capital work order for IT-Identify & Access Management, including questions about budget changes, contingency justification, project maturity status, and the final cost date. The requests aim to understand the scope changes, risk management, and financial planning.

after the final work concludes in October 2026? Provide a justification for keeping the capital order open for this duration and the anticipated nature of the costs to be incurred during this period. IR-5. Table A.4 shows a Net Total Cost...

AI summary The text includes questions regarding the duration of a capital order, the cost-benefit analysis of outsourced security services versus in-house solutions, and the details of annual savings from prior managed services. These questions pertain to financial planning, cost-effectiveness, and program implementation.

5 Request IR-5: 6 7 With respect to the Detailed Estimate: 8 - 9 a) Please explain why the unit estimate for Regular Labour (where 16 different job positions 10 are listed) and OT Labour is $420, irrespective of position and whether regula...

AI summary Request IR-5 seeks clarifications on labor cost estimates, consulting project definitions, and documentation for the Detailed Estimate. Request IR-6 asks for actual spending data, contingency justification, and in-service dates for items in the estimate. Both requests focus on transparency and accountability in cost structuring.

33 Request IR-7: 34 35 With respect to the Project Cost Estimate Input Checklist and Maturity Matrix, please explain the 36 status of each item classified as "Preliminary," including any major milestones (e.g., outstanding 37 permits) rema...

AI summary The request seeks clarification on the status of 'Preliminary' items in the Project Cost Estimate Input Checklist and Maturity Matrix, including outstanding milestones such as permits required to reach 'Defined' or 'Complete' status.

40 Request IR-8: 41 42 With respect to Appendix A, please provide the following information: 43 44 a) Working copy of the TCO Project Financials. 45 b) Identify sources of each figure included in the analysis, and provide supporting 46 doc...

AI summary Request IR-8 asks NSPI to provide TCO Project Financials, source documentation, trend explanations for Table 2 A.2 items, and details on cost minimization steps taken during project design and implementation.

anization's IAM and PAM environments, reduce cybersecurity risk exposure, improve regulatory compliance, and create a scalable foundation for future identity-centric security programs.[1](#page-1-0) " In providing justification for this pr...

AI summary NS Power is proposing an Identity and Access Management (IAM) and Privileged Access Management (PAM) project to enhance cybersecurity, regulatory compliance, and scalability of future security programs. The project aims to streamline access management, improve efficiency, and strengthen security. A 15% contingency is requested to cover unforeseen costs, particularly during the IGA phase. A $2.4M variance is attributed to higher-than-anticipated consulting costs.

Total Cost of Ownership: The forecast operating costs for software acquired by the IAM project are 78% of the Total Cost of Ownership (TCO), while the capital costs being submitted for approval in this application represent just 33% of the...

AI summary The text discusses the Total Cost of Ownership (TCO) for software acquired by the IAM project, noting that operating costs make up 78% of TCO, while capital costs are 33%. NS Power has confidence in its operating expense forecast but did not outline steps to reduce these costs. The Consumer Advocate submitted these comments for the Board's consideration.