Topic:"Cost Deferral" in M13133

17 Figure 1: Summary of Securitized Costs ($ million) Securitized Costs Eligible Costs Thermal Assets¹ $ 713.0 Thermal Assets Financing Cost Deferral² 27.6 PHP Deferral² 12.2 IESO Deferral² 20.2 Fuel and Purchased Power – Q3 2026 FAM Asset...

AI summary The text presents a summary of securitized costs, including thermal assets, financing cost deferrals, and other eligible costs totaling $987.5 million, with additional financing fees bringing the total securitization bond proceeds to $1,000.0 million. NS Power will reclassify the thermal asset balance to the Securitization Regulatory Asset.

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.

15 Estimates of the Upfront Financing Costs are subject to change, as the costs depend on the timing 16 of the issuance, market conditions at the time of issuance, and other events outside NS Power's 17 control. Consistent with the treatme...

AI summary NS Power acknowledges that upfront financing costs may change due to external factors and proposes adjusting the FAM prepayment based on actual versus forecasted costs, with the offset recorded to the Securitization Regulatory Asset. This adjustment will be handled through the BA true-up mechanism.

ery - tight timelines that the Board's working under here. - INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS MS. RUBIN: We can send it - immediately. - MR. WILLIAMS: Okay. Any other - questions on what was intended to be the intro?...

AI summary The discussion focuses on the securitization of costs, including thermal assets and PHP deferral, as part of a bond transaction. The timeline for the financing transaction is highlighted, with deferred financing costs considered from May to November 2025. This is related to the General Rate Application and the GRA decision.

15 Request IR-7: 14 26 - 16 On pp. 14 and 15 of its application, NS Power proposes that any difference between the forecast 17 balances and actual balances of the PHP Deferral and IESO Deferral be applied as adjustments 18 to the $64.9 mil...

AI summary NS Power proposes adjusting the $64.9 million FAM prepayment based on differences between forecast and actual balances of the PHP and IESO Deferrals, with offsets recorded to the Securitization Regulatory Asset and addressed through the Formula-based True-up Mechanism and Balancing Adjustment mechanism.

13 Request IR-13: - 14 On pp. 16-17 of its application and pp. 35-36 of the technical conference transcript, NS Power 15 advances the benefits of the securitization of Fuel and Purchased Power costs, the PHP Deferral 16 and IESO Deferral f...

AI summary The document raises concerns about the securitization of Fuel and Purchased Power costs and the PHP and IESO Deferral, questioning whether transferring current costs to future customers aligns with intergenerational equity and policy objectives around electrification. It also inquires about rate increases and their impact on electrification goals.

Request IR-4: - Reference: Section 9.0, including Figure 9; Section 12.1; Appendix F; Appendices A, B CONF, - C and C Attachment 1 CONF, E and H - Please provide, by securitized-cost component: - a) the forecast-to-actual differences expec...

AI summary Request IR-4 asks for detailed information on securitization cost components, including forecast-to-actual differences, recovery mechanisms, treatment of pre-bond-issuance collections, and reconciliation of calculations to confidential schedules.

Request IR-6: - Reference: Section 5.0; Figure 5; Appendix B. - Please provide the NPV of customer benefits by securitized-cost component, including Thermal - Assets, Thermal Asset Financing Cost Deferral, PHP Deferral, IESO-NS Deferral an...

AI summary Request IR-6 asks for the NPV of customer benefits by securitized-cost component, including Thermal Assets, Thermal Asset Financing Cost Deferral, PHP Deferral, IESO-NS Deferral, and Fuel and Purchased Power, reconciling to the $265.6 million total NPV benefit in Appendix B.

- (b) NPV analysis assumes NSPI equity ratio applies to the full amount of securitization (i.e. $1 billion) under the traditional recovery approach. - i. Please explain whether NSPI earns return on equity on all other items proposed for in...

AI summary The text discusses the NPV analysis of securitization, specifically whether NSPI earns return on equity on various deferrals in addition to unrecovered Thermal Assets. It also asks for the regulatory basis for this approach instead of charging interest expenses.

Request IR-4: Please refer to Exhibit N-1 the Application, Page 20 of 51, Figure 3, Estimate of Upfront Financing Costs which includes a Capital Reserve Account Funding of 0.5% of the principal amount of $12,500,000, or $5,000,000. This fi...

AI summary The text discusses the Capital Reserve Account Funding of $5,000,000, held in cash and classified as Restricted Cash, and seeks clarification on title ownership, access processes, and potential changes to the reserve amount over time.

Request: - a) Please confirm that the value of the "COS Adjustment" found on "2026 Securitization Rider Application Appendix A EO.xlsx," "Schedule 7 – AA by Class" worksheet, Cell HL74 (hard-coded value) reflects the sum of eligible costs...

AI summary The request seeks confirmation and explanation regarding the 'COS Adjustment' values in specific worksheets of the 2026 Securitization Rider Application, focusing on whether these values accurately reflect the sum of eligible costs for securitization related to Fuel and Purchased Power, and the differences between them.

Request IR-18: - Reference: N-1, Section 6.3. - Please explain if NS Power's proposed cost allocation for the PHP Deferral costs relates to the - GRA and the Board's Decision in the GRA.

AI summary The document requests an explanation regarding Nova Scotia Power's proposed cost allocation for PHP Deferral costs in relation to the GRA and the Board's decision in the GRA.

17 Request IR-10: - 18 Reference: N-1, Appendix C, Figure 3 (pg. 6) and Figure 5 (pg. 8) - 19 Preamble: Figures 3 and 5 show that no collections through AA riders have occurred 20 to FAM balances for 2026 (January to September). - 21 (a) P...

AI summary The request asks for an explanation of the basis for deferring recovery and the applicable Board approval, as well as a breakdown by customer class of the effect on securitization balances for 2026, including deferred collections and additional interest.

29 Request IR-16: 30 Reference: N-1, Application, page 14, lines 12-13; and Appendix A, tab "2 - PHP Deferral." - 1 Preamble: The Application states the PHP Deferral interest is "calculated at the Bank of - 2 Canada policy rate plus 1.75 p...

AI summary The document requests clarification on the interest rate calculation for the PHP Deferral account, specifically the use of the Bank of Canada policy rate plus 1.75 percent, and whether changes in the policy rate between July 15, 2026, and December 31, 2026, have been considered in the calculation.

2 Reference: Matter M12661, ELID Application - 3 (a) Please confirm whether any of the matters in dispute in the ELID 4 application affect, or are expected to affect, the amount of the PHP Deferral 5 balance, the $12.2 million forecast bal...

AI summary The document contains questions related to the ELID application, specifically concerning the impact of disputed matters on deferred balances, the calculation of securitization balances, the basis for recovery of deferred costs, and a request for NPV analysis of different recovery timelines.

7 Reference: N-1, Confidential Appendix B (Net Present Value Calculations). - 8 (a) Please provide, in Excel format, a version of Appendix B, for with and 9 without securitization benefits, that splits the NPV customer savings 10 benefits...

AI summary The text requests detailed explanations and modifications to Appendix B of a regulatory proceeding, focusing on securitization benefits, recovery periods, income tax assumptions, and cost deferrals. It asks for Excel versions of the appendix with and without securitization benefits, different recovery periods, and explanations of tax-related assumptions.

revenue. - 22 (a) Please confirm that this description of the respective allocation 23 methodologies for the PHP Deferral, IESO-NS Deferral, Financing Costs, 24 and the FAM prepayment is accurate. - 25 (b) Please explain why it is appropri...

AI summary The text requests clarification on the allocation methodologies for various deferral accounts and financing costs, specifically why variances are being absorbed into and recovered from the FAM prepayment balance using the Base Cost of Fuel revenue allocator instead of other methodologies.