Topic:"Cost Considerations" in M12838

Why do this project this way? An EA retains NS Power's ownership of software licenses and the right to install the software versions during the term of the agreement. The EA is the only option that meets current business requirements and p...

AI summary The Enterprise Agreement (EA) retains NS Power's ownership of software licenses and allows usage across production and disaster recovery sites. The 2023 EA transitioned to SaaS subscriptions, yielding cost savings compared to the 2020 agreement. The 2026 EA duplicates the 2023 model but faces increased pricing due to Microsoft's standard rate hikes.

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 NS Power following the principles of the guidelines to demonstrate con...

AI summary NS Power developed a checklist for IT/OT projects to demonstrate confidence in cost estimate maturity, following AACE guidelines. The checklist was created in lieu of specific AACE guidelines for these project types.

T203 - ATTACHMENT 06 - TCO PROJECT FINANCIALS Project costs must be detailed by major project phase and would normally align with a potential stage-gate (i.e. preliminiary design, intial scoping, requirements, etc.). Within each phase, maj...

AI summary The document outlines requirements for detailing project costs by major phases (e.g., preliminary design, initial scoping) and allows table expansion for additional phases or fiscal years. It emphasizes structured cost breakdowns aligned with stage-gate processes.

NON-CONFIDENTIAL Request IR-3: In NS Power's Final Cost application for CI C0047294 M11829, NS Power overestimated the amount of regular labour required in matter M11166 by $12,758, indicating that a much smaller amount of time was require...

AI summary NS Power's response to IR-3 explains that although fewer person days were allocated to regular labour in the current application, a new role (database business system analyst) was added to support the 2026 renewal. This role was not present in the previous application (M11166), and it was necessary to analyze and streamline the company's on-premises compute environment.

- following items relative to the Renewal in M11166: - (a) SQL Server Enterprise Core; - (b) SQL Server Standard Core; - (c) Win Remote Desktop Services; and - (d) Win Server Standard Core. Response IR-5: (a-d) The changes in SQL Server, W...

AI summary NS Power implemented a targeted optimisation effort, transitioning applications to cloud-native solutions and rationalising toolsets, which resulted in adjustments to licence volumes for SQL Server, Windows Server, and Remote Desktop Services to align with current operational requirements and reduce licensing overhead.

NON-CONFIDENTIAL 1 Request IR-6: 2 3 In NS Power's response to Board IR-2 the Total Cost of Ownership analysis was submitted. 4 This analysis showed that the operating costs associated with this investment are significantly 5 higher in com...

AI summary The document discusses the Total Cost of Ownership (TCO) analysis for the 2026 Microsoft Enterprise Agreement (EA) renewal, noting a significant increase compared to the 2023 agreement. The increase is attributed to price increases from Microsoft, growth in headcount, and the addition of new subscriptions. The TCO was developed before negotiations with Microsoft were completed and used conservative assumptions.

CONFIDENTIAL (Attachment Only) 1 Request IR-7: 2 3 In NS Power's response to Board IR-6, NS Power provided new information about the TCO. 4 Specifically, NS Power stated: 5 6 7 The TCO for the 2026 renewal was developed before negotiations...

AI summary NS Power provided an updated Total Cost of Ownership (TCO) for the 2026 Microsoft Enterprise Agreement renewal, which reflects negotiated discounts and a lower total cost. The agreement was signed on June 30, 2026, shortly after the deadline.

T203 - ATTACHMENT 06 - TCO PROJECT FINANCIALS Project costs must be detailed by major project phase and would normally align with a potential stage-gate (i.e. preliminiary design, intial scoping, requirements, etc.). Within each phase, maj...

AI summary This document outlines the requirement to detail project costs by major project phase, aligning with a stage-gate process such as preliminary design and initial scoping. Tables may be expanded to include additional phases or fiscal years as needed.

Request IR-3: - In NS Power's Final Cost application for CI C0047294 M11829, NS Power overestimated the - amount of regular labour required in matter M11166 by $12,758, indicating that a much smaller - amount of time was required to comple...

AI summary NS Power's Final Cost application for CI C0047294 M11829 allegedly overestimated regular labour costs in M11166 by $12,758. The current application allocates more resources to Regular Labour despite similar work scope, prompting questions about the rationale for increased resource allocation.

Request IR-4: Why has NS Power budgeted AFUDC for this Renewal given that it was not required in M11166?

AI summary NS Power's inclusion of AFUDC in the Renewal budget is questioned, as it was not required in the prior matter M11166. The request challenges the rationale behind budgeting for AFUDC despite its absence in a previous regulatory proceeding.

Request IR-6: - In NS Power's response to Board IR-2 the Total Cost of Ownership analysis was submitted. This - analysis showed that the operating costs associated with this investment are significantly higher - in comparison to the Micros...

AI summary NS Power's response to Board IR-2 included a Total Cost of Ownership analysis that showed higher operating costs for the investment compared to the Microsoft EA Renewal in matter M11166. The request asks for justification of the subscription costs and an explanation for the significant increase relative to the Economic Analysis Model (EAM) in M11166.

M12838 – Nova Scotia Power Inc. – CI C0082133 – IT – Renewall Microsoft Enterprise Agreement - $1,987,397 On May 4, 2026, Nova Scotia Power Inc. (NS Power) filed an application with the Board requesting approval to renew its Microsoft Ente...

AI summary Nova Scotia Power Inc. (NS Power) applied for approval to renew its Microsoft Enterprise Agreement, citing the need to maintain license compliance and support business operations. The Board approved the request for a partially confidential 2026 Annual Capital Expenditure (ACE) Plan work order after reviewing responses to Information Requests, including a revised Total Cost of Ownership (TCO) analysis that showed reduced costs due to more favorable pricing terms.