Topic:"Cost Considerations" in M13133

13 Figure 3: Estimate of Upfront Financing Costs Cost Type Estimated Upfront Financing Costs Underwriting Fees $5,000,000 Capital Reserve Account Funding (0.5% of principal) 5,000,000 Legal Fees 1,500,000 Rating Agency Fees 825,000 Account...

AI summary Figure 3 presents an estimate of upfront financing costs, including underwriting fees, legal fees, and other expenses, totaling $12.5 million. These costs are associated with the financing of capital projects and are likely relevant to regulatory considerations regarding capital expenditures and cost recovery.

3.2 Ongoing Financing Costs 2 1 - 3 Ongoing Financing Costs means Financing Costs incurred after the issuance of the Securitized - 4 Bonds. Ongoing Financing Costs include, but are not limited to, servicing fees, trustee fees and - 5 expen...

AI summary This section defines Ongoing Financing Costs as expenses incurred after the issuance of Securitized Bonds, including servicing fees, trustee fees, audit costs, and reserve fund replenishment. NS Power provides an estimate of these costs in Figure 4.

Figure 4: Estimate of Ongoing Financing Costs Cost Type Estimated Ongoing Financing Costs – Year 1 Estimated Ongoing Financing Costs – Total Servicing Fees $500,000 $15,000,000 Accounting & Audit Fees 100,000 4,400,000 Rating Agency Survei...

AI summary Figure 4 outlines the estimated ongoing financing costs, including servicing fees, accounting and audit fees, rating agency surveillance fees, and other administrative costs. It also includes income tax, which significantly increases the total estimated costs.

NS Power Application for Financing Order to Reduce Costs for Customers Redacted 1 c) the issuance of limited partnership units of the LP to NS Power constitutes value 2 received for the purposes of section 16(c) and the retention by NS Pow...

AI summary NS Power is applying for a Financing Order to reduce customer costs through a limited partnership structure. The application involves exemptions under the Affiliate Code of Conduct and the Cost Allocation Manual. Updates to these documents will be filed if the Financing Order is issued.

5 Figure 6 – AA and BA Amounts up to September 30, 2026 by Customer class Customer class AA ($ Million) BA ($ Million) Total ($ Million) Domestic Service 27.7 1.6 29.4 Small General 3.8 0.6 4.4 General 24.2 32.1 56.3 Large General 4.0 5.9...

AI summary Figure 6 provides a breakdown of Affordable Access (AA) and Bill Adjustment (BA) amounts by customer class up to September 30, 2026. The table shows the distribution of these funds across different customer segments, with General and Large Industrial-Interruptible classes receiving the highest amounts.

075,882 34,469,196 29,013,513 27,250,168 19,692,206 13,201,863 5,280,077 5,883,718 5,830,933 5,421,965 211,363,397 Calculation KWh Requirements Muni - Full Service 5,508,268 6,305,115 9,434,703 9,913,856 9,088,618 8,613,261 7,061,545 5,827...

AI summary The text presents a series of numerical calculations related to KWh requirements across various regions and classes, along with weighting factors for different customer segments. These figures are used in regulatory proceedings to determine energy usage patterns and cost allocations.

Currency: CND Revenue Forecast MWh Sales Municipal 5,532 5,085 4,804 3,035 2,843 2,036 2,666 2,581 2,456 2,812 3,831 4,849 42,528 Revenue Forecast MWh Sales Unmetered 6,204 6,768 5,991 6,297 7,376 5,698 6,383 5,585 6,381 5,609 7,123 6,020...

AI summary The document presents revenue forecasts and MWh sales data for municipal and unmetered categories across multiple years, showing fluctuations in energy consumption and revenue projections.

SPECIAL CONDITIONS (1) Metering will normally be at the low voltage side of the transformer. Should the customer's requirements make it necessary for the Company to provide primary metering, then the customer will be required to make a cap...

AI summary The special condition outlines that metering is typically installed on the low voltage side of the transformer. If primary metering is required, the customer must contribute the additional capital cost. When metering is on the high voltage side, an adjustment of 1.9% will be made to the metered kWh usage.

Rates - (1) Incandescent - (a) Operating, Maintenance, and Capital (full charge)

AI summary The text briefly mentions 'Incandescent' and 'Operating, Maintenance, and Capital (full charge)' under the 'Rates' heading, suggesting a discussion on cost allocation or charging mechanisms related to lighting and infrastructure.

(a) Operating, Maintenance, and Capital (full charge) kWh per per month ($) Rate Code Watts month 2026 2027 Other 100 100 43 10.44 11.17 101 125 52 11.31 12.07 2026 Securitization Rider Application Appendix G-1 (Redline) Page 79 of 86 REDA...

AI summary The text provides a table detailing operating, maintenance, and capital costs associated with different rate codes, including kWh per month and associated monthly costs for 2026 and 2027. The section is part of a securitization rider application and contains redacted confidential information.

(a) Operating, Maintenance, and Capital (full charge)

AI summary The text references 'Operating, Maintenance, and Capital (full charge)', which likely pertains to cost categorization in regulatory proceedings, involving full charges for operating, maintenance, and capital expenses.

(1) Incandescent (a) Operating, Maintenance, and Capital (full charge)

AI summary This section outlines the operating, maintenance, and capital full charge costs associated with incandescent lighting.

(a) Operating, Maintenance, and Capital (full charge) Number of kWh per Bulb Length per month ($) Rate Code Bulbs per Unit month 2026 2027 Other 110 24 2 30 13.97 14.91 111 48 2 85 24.77 26.39 112 72 2 116 31.20 33.21 113 72 4 222 52.72 56...

AI summary The document provides a table detailing operating, maintenance, and capital costs for different rate codes, including the number of kWh per bulb length, bulbs per unit, and monthly costs for the years 2026 and 2027.

itized costs would - be are being affirmed as part of this this component in - the application. Who's responsible for those buckets and - how much responsibility they may have would be something - that would be determined as part of the co...

AI summary The discussion focuses on the need for clarity in determining responsibility for cost buckets as part of the cost-of-service analysis, with concerns raised about potential issues if responsibilities are not clearly defined before approval. The parties involved express willingness to collaborate with the Board on the process.

'd be recovered over 13 - years. - INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS So is there a bit more explanation of - that discrepancy or you can tell me where I've made the - mistake? - MR. FLEMMING: Yeah, absolutely, - James....

AI summary The discussion revolves around the recovery of costs over a 13-year period, with a focus on the assumptions behind the NPV analysis and the cost allocation process. Questions are raised about the methodology for cost recovery and the feasibility of a 60-day turnaround time for the Board to approve a yield on long-term bonds.

. - So the FAM balance as of September - 30th, 2026 would be consistent with the approved - INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS methodology in the plan of administration for cost - allocation throughout for each customer...

AI summary The discussion centers on the allocation of costs, specifically the FAM balance, and the timing of market entry for financing. It clarifies that the 60-day requirement is a legal requirement, not an expectation, and highlights the need to act quickly due to bond market volatility.

ext slide, so we - have up front financing costs. We also do have some - ongoing financing costs. - Again, some of these would be similar - to what we've seen in other proceedings. So the allotted - fees, this limited partnership will requ...

AI summary The text outlines financing and tax considerations related to a limited partnership structure, including upfront and ongoing financing costs, servicing fees, and income tax implications. These costs include audit fees, rating agency fees, and administrative expenses, with servicing fees calculated as 0.05% of a billion-dollar bond issuance. Income tax is discussed in relation to the return of capital and customer savings.

uld then use that money to pay bondholders. - The other pieces of the cashflow here - INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS relate to the intercompany loan, and so Nova Scotia Power - would pay interest to the limited part...

AI summary The discussion centers on the securitization process, focusing on the allocation of financing and ongoing costs to different components, and the treatment of revenue requirements for thermal assets using existing methodologies, including the 2027 total system coincident load factor and the 3 CP methodology for cost allocation.

mand component we are - using the 3 CP, three coincident peak, methodology in - order to allocate those costs to various customer classes. - And for the energy component of the thermal assets, that - is based on the 2027 share of energy by...

AI summary The discussion focuses on the methodology for allocating costs to customer classes using the three coincident peak (3 CP) approach and the 2027 energy share forecast. The conversation also addresses the annual updating of load forecasts and the treatment of fuel and purchase power costs, with a reference to the $150 million balance as of September 30, 2026.

ts for 2027 for each class is used to - allocate the various costs to customer classes. - For the transmission related portion - that's 100 percent demand and would utilize the 3 CP - methodology. - And the last component is the IESO - Nov...

AI summary The document discusses the allocation of costs to customer classes using the 3CP methodology and the IESO's approach for revenue requirement distribution. It also outlines rate impacts, including a 3.3% increase in 2027 for FAM classes and separate treatment of OATT Munis.

by the Board for collection); and - v. $12.5 million for Financing Costs for the issuance and administration of the Securitized Bonds, including Upfront Financing Costs and Ongoing Financing Costs. - The imposition of irrevocable Securitiz...

AI summary The document outlines the approval of a securitization transaction by the Board, including the imposition of Securitized Surcharges to recover costs from customers, the allocation of surcharges based on cost-of-service analysis, and the establishment of a True-up Mechanism for periodic adjustments. NS Power estimates a 3.3% average rate increase for FAM customer classes in 2027.

1 Request IR-1: - 2 Please confirm, or clarify otherwise, that at a high level (rounded to exclude the financing costs),

AI summary The document requests clarification on whether the high-level figures exclude financing costs, likely in the context of a regulatory proceeding involving financial calculations or cost assessments.

23 Request IR-10: - 24 a) How were the Upfront Financing Costs in Figure 3 of the application and the Ongoing 25 Financing Costs in Figure 4 of the application estimated? Please provide any available 26 back-up documentation. - 27 b) Pleas...

AI summary The request seeks clarification on the estimation of upfront and ongoing financing costs, as well as the rationale for including road show and marketing expenses in the Securitization rather than Operating expenses.

9 Request IR-16: - 10 Page 22 explains that accounting, audit and other administrative fees are forecasted to grow by 11 2.5% per year. - 12 a) Please explain why NS Power selected a 2.5% growth rate for these fees? - 13 b) Why did NS Powe...

AI summary The document requests an explanation from NS Power regarding the selection of a 2.5% annual growth rate for accounting, audit, and administrative fees, and why the mid-point of the Bank of Canada's inflation target was not considered appropriate.

Request IR-14: - Reference: N-1, Figure 5. - a. Please confirm that the "Cost of Financing" under the "Securitization" scenario is an - estimate that is subject to risk of change once NS Power pursues the Securitized Bond - issuance. If no...

AI summary The request IR-14 asks NS Power to clarify the estimated 'Cost of Financing' under the Securitization scenario, how they would address discrepancies, if there is a maximum cost they would accept, and whether they have proposed risk mitigation measures for the Securitized Bond issuance.

- 8 (b) Please provide a version of Appendix D with this alternative securitization 9 scenario. - 10 (c) Please explain and quantify any financial or capital-market implications of 11 issuing approximately $750 million rather than $1 billi...

AI summary The text requests detailed financial and market analysis regarding the issuance of securitized bonds, including implications of varying issuance sizes, investor demand, credit ratings, interest rates, and cost comparisons between different scenarios.

21 REASONS FOR INCLUSION AS SECURITIZED COSTS - 22 Request IR-21: - 23 Reference: N-1, Application, Section 2.5, pages 15 18; - 24 Preamble: NSPI discusses its rationale for including the proposed costs in the 25 securitization transaction...

AI summary Nova Scotia Power Inc. (NSPI) outlines 21 reasons for including certain costs in a securitization transaction, emphasizing lower financing costs, intergenerational cost sharing, rate stability, and support for the Province's energy transition. The request references sections of an application and asks for an explanation of relevant utility rate-setting principles, including Bonbright's principles and cost causation.

1 under each of: the Energy Allocator methodology as proposed in the 2 Application; and the allocations requested in (g) above. Include columns 3 that quantify the dollar and percentage difference, by rate class, from the 4 amount allocate...

AI summary The document outlines requests for clarification regarding NSPI's financing costs, including upfront and ongoing costs, their allocation to securitization components, and the treatment of specific fees and reserve accounts. It asks for detailed schedules, confirmation of accounting practices, and explanations of recovery mechanisms.

12 Reference: N-1 Application, page 21, Figure 4 and page 22, lines 4-13 "NS Power proposes an annual servicing fee of 0.05 percent of the initial principal amount of the Securitized Bonds to cover costs and expenses in servicing the Secur...

AI summary NS Power proposes a 0.05% annual servicing fee on Securitized Bonds to cover costs of servicing, which includes billing and collecting the Securitized Surcharge. The Board is asked to confirm if these functions overlap with current activities, whether the fee is justified, and how it will be accounted for in future GRAs.

repayment and recovered solely using the Base Cost of Fuel 10 revenue allocator, rather than being trued up using the blended, 11 component-specific allocation otherwise applicable to Financing Costs. - 12 (e) For each of the three varianc...

AI summary The text requests detailed analysis on how different cost variances (PHP, IESO-NS, and Upfront Financing Costs) are allocated to customer classes under the Application's proposal, specifically comparing allocations using the Base Cost of Fuel revenue allocator versus the appropriate cost-specific allocators. It also asks whether this method leads to disproportionate impacts on customer classes and whether NSPI considered alternative allocation methodologies.

(NSUARB M13133) PHP Information Requests to NS Power 1 2 IR-1 Reference: Section 6.0, Cost of Service Treatment, page 26. "Consistent with the allocation methodologies applied to generation rate base, depreciation expense, and production O...

AI summary The document discusses the allocation methodology for the Demand-classified and Energy-classified portions of a component in the 2026/27 GRA, based on forecast 2027 shares of losses-adjusted coincident demand and annual energy requirements for customer classes.