Topic:"Cost Considerations" in M12778

M10905/M12174, Board Review of NS Power's Interconnection Processes/NSPSO Annual Interconnection Process Proceeding Report, Board Decision, November 14, 2025, page 6-7. 1 needs (such as needs previously established through a system plannin...

AI summary The document outlines the cost allocation for distribution network upgrades (NUs) under the DGIP. It states that NUs are considered system investments, not allocated to the interconnection customer (IC), and that the refund mechanism for NUs is amortized over up to 20 years with interest at the Distribution Provider's WACC. The cost-causer approach is emphasized, where the IC is responsible for paying for interconnection and distribution upgrades.

Refund Regulation Regarding the refund regulation, Synapse initially recommended a cost allocation straw proposal which defined two categories of projects. For small projects, 50% of the total network upgrade cost would be treated as a rat...

AI summary The text discusses the refund regulation for network upgrade costs, with Synapse recommending a 50% rate base investment for small projects and 25% for large ones. NSPSO later proposed a 50% refund over 20 years, but NS Power revised this to require full funding by interconnection customers. Synapse disagreed, while NS Power argued against rate-basing without clear benefits. The SBA raised concerns about impacts on small businesses and requested a stakeholder review.