Topic:"Cost Considerations" in M12914

8 TABLE 1 Description (Amounts in $millions) 2026 (approved) 2027 2028 $O\&M^2$ 22.0 27.2 21.6 Depreciation 3 57.2 57.7 58.1 Debt Financing Costs • Interest (Net) 37.8 36.7 35.4 Amortization of Deferred Financing Costs 1.4 1.5 1.4 Equity F...

AI summary Table 1 presents financial data including operating and maintenance costs, depreciation, debt and equity financing costs, and total costs for the years 2026, 2027, and 2028. The data shows variations in these costs across the years.

Date Filed: June 25, 2026 Page 9 of 28 1 The Company has discussed this approach with customer representatives and believes 2 it warrants Board consideration. 3 4 NSPML's rationale for this treatment includes: 5 6  Marine survey costs are...

AI summary NSPML discusses the challenges of managing marine survey costs, including their significance to maintenance and inspection expenses, forecasting uncertainties, and the impact on earnings. A proposed solution involves filing the Contracted Marine Survey cost confidentially after the contract award, with adjustments incorporated into the 2027 assessment.

4 Which would be the delta between the Placeholder Marine Survey cost and the Contracted Marine Survey cost after the RFP process is complete. 1 depending on timing.5 The public (including the marine market) would see only the 2 difference...

AI summary The text discusses the difference between the Placeholder Marine Survey cost and the Contracted Marine Survey cost after the RFP process is complete, emphasizing the need to protect commercially sensitive information while ensuring regulatory oversight and accountability.

13 2.2.3 Summary of Requested Marine Survey Cost Treatment 14 15 Based on the above information, the Company requests the Board accept the following 16 process to include marine survey costs in the 2027/2028 assessment: 17 - 18 The Board a...

AI summary The Company requests the Board to accept a process for including marine survey costs in the 2027/2028 assessment, involving an interim order based on a placeholder cost, followed by a final order after the actual cost is determined, with potential adjustments to customer payments or refunds.

11 2.2.4 Labour & Administration 12 13 The labour and administration cost category is composed of costs related to regulatory 14 and legal, consulting, and labour and incentive. The increases in 2027 and 2028 are 15 reflective of inflation...

AI summary The labour and administration cost category includes regulatory, legal, consulting, and labour and incentive costs. Increases in 2027 and 2028 are attributed to approximately 3 percent annual inflationary increases.

17 2.2.5 Insurance 18 19 Insurance costs for 2027 are forecast to be $4.3 million, a decrease of $0.2 million from 20 the 2026 budget, followed by a further decrease of $0.1 million in premiums forecasted for 2028. 9 21 As conveyed in prio...

AI summary Insurance costs for NSPML are projected to decrease from $4.3 million in 2027 to $4.2 million in 2028. These estimates are based on industry trends and assume no major operational changes. NSPML also discusses alternative approaches for evaluating the prudence of Contracted Marine Survey costs.

10 2026 2025 2024 2023 2022 2021 2020 2028 2027 Forecast/ Actual / Actual / Actual / Actual / Actual / Actual / 2019 FTE's Assessment Assessment Approved Approved Approved Approved Approved Approved Approved Actual FTE's in Budget 29.5 29....

AI summary The text presents a table showing FTE (Full-Time Equivalent) numbers and associated costs across multiple years, including forecasted and actual figures. It outlines budget allocations and cost details for different years, highlighting variations between planned and actual expenses.

Note: 2019-2022 FTE data is unavailable; the following assumptions have been made. From 2019-2021 there was a progression from project to operations, with an assumption of 75% of total expected FTE, with 2022 and beyond being at 100% FTE o...

AI summary The document discusses assumptions made regarding FTE data from 2019-2022 and notes that lower costs for 2024-2026 were due to vacancies and the use of consultants by NSPML. The filing date is August 20, 2026.

NON-CONFIDENTIAL Understanding near-term costs (with an emphasis on larger capital requirements) as can be included in a long-term asset management plan[1](#page-1-0) (or similar 3, 5 or 10 year plans) is of assistance in preparing a multi...

AI summary The text discusses the challenges in forecasting long-term costs, particularly due to external factors and legal/regulatory uncertainties. It notes that changes in vegetation management and OEM services provided customer benefits but made cost estimation more complex. The company acknowledges the risk of higher legal costs without including a contingency for them.

Request IR-10: - Reference: Section 2.2.5, Insurance (p. 13). - Preamble: Insurance costs are forecast to decrease from $4.5 million (approved 2026) to $4.3 - million in 2027 and $4.2 million in 2028. - (a) P lease provide the insurance co...

AI summary The request (IR-10) seeks details on insurance cost forecasts for NSPML, including breakdowns by coverage type, reasons for decreased premiums, and the impact of the Cable Protection Project on insurance structure and premiums for 2027 and 2028.

NON-CONFIDENTIAL 1 Request IR-02: 2 - 3 Reference: Table 2: O&M Forecast, pg.7 - 4 Please update Table 2 to add two columns showing a comparison to 2025 actual costs - 5 incurred and 2026 forecast costs. 6 7 Response IR-02: 8 9 Please see...

AI summary The document includes a request to update Table 2 with additional columns comparing 2025 actual costs and 2026 forecast costs. A response is provided with the updated table.

9 Variance 2026 to 2027 2026 to 2027 2027 to 2028 2027 to 2028 ($m) (%) ($m) (%) Labour & Incentive 0.1 2.2% 0.1 2.2% Legal, regulatory, & compliance 0.1 4.8% 0.1 4.5% Consultants - 0.0% 0.0 0.0% Office, travel, and other 0.1 3.7% 0.0 0.0%...

AI summary The text presents a table showing variance percentages and amounts for various expense categories from 2026 to 2027 and 2027 to 2028, including Labour & Incentive, Legal, regulatory, & compliance, Consultants, and Office, travel, and other expenses.

11 i) There are no increases greater than 5 percent. 12 ii) NSPML receives input from human resources when considering the expected increase 13 for labour and related categories. A number of factors are considered to derive the

AI summary The text indicates that there are no increases greater than 5 percent, and NSPML considers input from human resources when determining expected increases for labour and related categories.

18 Request IR-4: - 19 Reference: Section 2.2.4 Labour & Administrative - 20 a) Please confirm, or clarify otherwise, that only 50% of forecast incentive payments are 21 included in the assessment amount. - 22 b) Please provide a table show...

AI summary The text requests clarification and detailed information regarding labour and administrative costs, including incentive payments, inflationary adjustments, and FTE projections for NSPML. It also inquires about vacancy allowances and changes in staffing.

1 (c) Please quantify the regulatory cost savings NSPML attributes to a two-year 2 versus a one-year assessment process. 3 Request IR-2: 4 Reference: Section 2.2, Table 2, O&M Forecast 2027 and 2028 vs 2026 ($ millions) (p. 7) 5 (a) Please...

AI summary The text includes requests for information related to regulatory cost savings from a two-year versus one-year assessment process, updates to O&M forecast tables, explanations for variances in approved versus actual amounts, and details on the status of a Long-Term Service Agreement for an HVDC converter station.

Request IR-3: Refer to the Application, Section 2.2.4 Labour & Administration, p. 13 of 28, lines 13-16, which states: The labour and administration cost category is composed of costs related to regulatory and legal, consulting, and labour...

AI summary The document requests clarification on the source of a 3% annual inflationary increase assumed for labour and administration costs, and whether the incentive component should be reduced if NSPML cannot finalize certain contracts on time.