Topic:"Cost Effectiveness" in M12619

EDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Appendix D Page 30 of 179 General Plant Projects under General Plant primarily involve informa on technology, communica ons and facili es ini a ves. With the excep on of IT which is...

AI summary The 2026 Annual Capital Expenditure (ACE) Plan Appendix D discusses General Plant projects, which focus on information technology, communications, and facilities initiatives. Economic analysis is used to determine project feasibility, with the Economic Analysis Model (EAM) comparing revenue requirements and avoided costs to evaluate alternatives.

wing are typical inputs into the model: • Capital investment profile • Opera ng cash flows, including avoided costs The model calculates the following: • Revenue requirement • Income tax associated with the capital expenditures • Discounte...

AI summary The document outlines a model used to evaluate capital investments, including revenue requirements, income tax, discounted net cash flow, and economic indicators like NPV and IRR. Avoided costs are calculated using probabilities of failure, capacity factors, and replacement energy costs, with inflation used as an escalator for future years.

.......................... 25 6.9 Capital Budge ng................................................................................................. 25 6.10 ACE Plan Projects ....................................................................

AI summary The document outlines capital budgeting processes, ACE Plan projects, financial criteria for capital planning, economic analysis of alternatives, and requirements for NSEB approval, focusing on capital application procedures and authorization to overspend policies.

apital expenditures; • Effec vely responding to changing environmental, opera onal, technical, safety and financial condi ons in compliance with legisla ve and regulatory requirements; and • Providing complete and mely capital filings for B...

AI summary Nova Scotia Power Inc. outlines objectives for its Capital Expenditure Justification Criteria (CEJC), emphasizing consistent economic and technical standards to ensure capital projects benefit customers while minimizing rate impacts. The CEJC aims to enforce accountability, multidisciplinary oversight, and standardized practices in capital planning.

expenditures in excess of deprecia on expense of all A system modelling tool used by NS Power to provide detailed forecasts of fleet dispatch assets in each year.¶ and produc on cos ng which reflect the increasing complexity of the system....

AI summary NS Power employs a levelized cost methodology to justify capital investments, incorporating factors like depreciation, interest, taxes, and rate of return. The approach calculates present value based on annual revenue requirements and evaluates project costs over their economic life, typically expressed in $/MWh.

179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document 17.0 Capital Expenditure JusƟficaƟon Criteria 17.1 IntroducƟon – General ConsideraƟons The following considera ons are used to evaluate...

AI summary Nova Scotia Power Inc. outlines capital expenditure justification criteria, emphasizing evaluation of alternatives, technology suitability, cost analysis, compliance with reliability standards, and selection of the least-cost option meeting requirements. The Integrated Resource Plan (IRP) is referenced as a framework for decision-making.

REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Appendix D Page 133 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document • Wood stave pipelines shall be replaced when an engin...

AI summary Nova Scotia Power Inc. outlines criteria for capital expenditures, including replacing wood stave pipelines based on engineering risk assessments, turbine runners due to degradation or efficiency gains, and dams/hydraulic structures failing to meet safety standards. Decisions hinge on formal engineering evaluations and risk analyses.

ill be 14 cycles. c. Where breaker failure protec on is required to trip remote breakers to isolate the fault described in item a), the fault clearing me will be 16 cycles. d. For a three phase or phase to ground fault on any element direc...

AI summary The document outlines technical requirements for breaker failure protection, fault clearing times, and system stability criteria for the Interconnected Transmission System. It references the 2026 ACE Plan and Nova Scotia Power Inc.'s capital expenditure justification criteria, emphasizing system reliability and dynamic response standards.

1 Extension Period). As such, E1’s prior five-year DSM Plan development was temporarily paused 2 while E1 prepared and filed its 2026 DSM Plan Extension Application, which remains an open 3 Matter before the Board. 43 E1’s 2026 DSM Plan ta...

AI summary E1's 2026 DSM Plan extension targets 528.7 GWh energy savings and 16.3 MW DR capacity with $236.8M investment. NS Power collaborates with DSMAG on cost-effectiveness frameworks and electrification strategies, focusing on affordability and peak load reduction through hybrid electrification scenarios.

2026 ACE NSDoE IR-001 Attachment 1 Status CI Number Title First Approval Year Original Approved Project Cost 2026 ACE Project Total Variance ($) Variance % 10 (b) The remaining useful life of the asset prior to the project and the expected...

AI summary The document outlines information requests related to the 2026 Annual Capital Expenditure (ACE) Plan, focusing on asset life extension, levelized cost of energy (LCOE), alternative generation resources, and the impact on rate base and revenue requirements. Two projects exceeding $5 million are listed for approval.

1 1 Request IR-19: 12 (g) NS Power does not envision that Reliability Cost Efficiency (RCE) would be a measure to 13 determine if a project has achieved its intended benefit, rather it is for evaluating the 14 potential cost-effectiveness...

AI summary NS Power explains that Reliability Cost Efficiency (RCE) is not used as a post-project evaluation metric, unlike other utilities that use it on a macro-level. Instead, NS Power relies on established reliability metrics like SAIFI and SAIDI, and argues that relying solely on these lagging indicators does not fully capture the benefits of mitigating emerging reliability concerns before they cause outages.

I. Identification & Qualifications - Q: Mr. Wilson, please state your name, occupation, and business address. - A: I am John D. Wilson. I am the Vice President of Grid Strategies LLC, Bethesda, MD. - Q: Summarize your professional educatio...

AI summary John D. Wilson, Vice President of Grid Strategies LLC, provides his background, including education and professional experience in energy and environmental policy, regulatory research, and utility regulation. He has worked with the Southern Alliance for Clean Energy and has expertise in cost-effectiveness analysis, prudency reviews, and rate design.

Q: What is your recommendation regarding collection of new customer data? - A: I recommend that the Board direct NS Power to revise its internal work orders for work done in customer-driven routines to identify whether the work was done fo...

AI summary The recommendation is for the Board to direct NS Power to revise internal work orders to better categorize customer-driven work and monitor external cost drivers, such as supply chain issues and labor shifts, ensuring supporting data is provided for significant cost increases.

Q: What is your recommendation on reasonable contingency for projects without a risk matrix? A: I recommend that the Board reduce the contingency amount for projects filed in this plan to 10% if they do not have a risk matrix filed in the...

AI summary The respondent recommends reducing contingency amounts for projects without a risk matrix to 10%, and suggests that NS Power should be required to file a risk matrix for projects with contingency over 10%, except in narrowly defined cases.

Q: Do you have a recommendation for the Board to refine NS Power's proposed definition of scope change? A: Yes. I recommend that NS Power's clarification be accepted and that the CEJC be further revised to include a two-step process that f...

AI summary The responder recommends refining NS Power's definition of scope change by introducing a two-step process. The first step involves NS Power filing a brief letter with the Board when a potential budget increase is identified. The second step allows the Board to request a more formal evaluation of alternatives if needed, avoiding unnecessary regulatory burdens.

SELECTED PRESENTATIONS "Clean Energy Solutions for Western North Carolina," presentation to Progress Energy Carolinas WNC Community Energy Advisory Council, February 7, 2008. "Energy Efficiency: Regulating Cost-Effectiveness," Florida Publ...

AI summary The text lists several presentations on energy efficiency and clean energy topics, including discussions on cost-effectiveness, renewable energy, and energy-saving initiatives. These presentations were made to various regulatory and advisory bodies across different regions.

er's Annually Adjusted Rates on behalf of the Nova Scotia Consumer Advocate. Effect of delays in power contract. Unit modeling assumptions. Variable capital costs. Application of Time-Varying Pricing. Nova Scotia UARB Matter No. M09920, di...

AI summary The text outlines various regulatory proceedings involving Nova Scotia Utility and Review Board (NSUARB) and other jurisdictions, including testimony on capital expenditure plans, time-varying pricing, and integrated resource plans. Topics include rate design, cost minimization, and evaluation of energy programs.

ement in NS Power's reliability performance. This issue is being examined in more detail in the 2025 Annual Performance Standards Report (M12784) and in the Five-Year Reliability Plan Review (M12558). [130] All intervenors agreed that NS P...

AI summary Intervenors agree that NS Power must improve system reliability and resiliency, but question whether current spending is cost-effective and producing measurable results. The CA raised concerns about the effectiveness of vegetation management initiatives, noting that reliability metrics have not improved significantly since 2016. Mr. Wilson recommended a third-party review and changes to reliability metrics to better assess program effectiveness.

1 2025 M12619 2 NOVA SCOTIA ENERGY BOARD 3 IN THE MATTER OF: The Public Utilities Act 4 IN THE MATTER OF: An Application by Nova Scotia Power Incorporated (NS Power) 5 for approval of approximately $284.0 million of its Annual 6 Capital Ex...

AI summary The document outlines an information request from The Industrial Group to Nova Scotia Power Incorporated (NSPI) regarding its 2026 ACE Plan, specifically focusing on how NSPI evaluates the cost-effectiveness of its decarbonization initiatives. The request is part of a regulatory proceeding under the Public Utilities Act.

1 2 M12619 3 4 5 6 NOVA SCOTIA ENERGY BOARD 7 8 9 IN THE MATTER OF: The Public Utilities Act, R.S.N.S. 1989, c. 380 10 -and - 11 12 13 14 15 16 IN THE MATTER OF: an application by NOVA SCOTIA POWER INCORPORATED (NS POWER) for approval of a...

AI summary The Consumer Advocate submits closing remarks regarding NS Power's 2026 Annual Capital Expenditure Plan, noting no objections to specific projects but highlighting cost minimization opportunities in distribution routines and reliability plan projects, as identified by expert John Wilson.

s based on anecdotal information as opposed to verifiable tracking. Continued use of this estimate certainly poses some difficulty in assessing whether the reliability plan investments are worthwhile. With respect to reliability-related pr...

AI summary The Consumer Advocate suggests that NS Power should provide a fuller inventory of spare parts to assess the cost-effectiveness of spare inventory pooling, despite NS Power's claim that it has already evaluated and rejected such arrangements. The Consumer Advocate argues that market conditions may have changed since 2024 and that this information could help assess the cost-effectiveness of pooling programs.

Conclusion In summary, the Consumer Advocate does not oppose approval of NS Power's proposed 2026 capital projects, but supports the various recommendations made by Mr. Wilson as described above. The Consumer Advocate would further reitera...

AI summary The Consumer Advocate supports the approval of NS Power's 2026 capital projects but emphasizes concerns regarding the reliability plan and cost-effectiveness of distribution routines, intending to explore these further in a third-party study.

Delivered by E-mail Crystal Henwood Regulatory Affairs Officer/Clerk Nova Scotia Energy Board 3rd Floor, 1601 Lower Water Street PO Box 1692, Unit "M" Halifax NS B3J 3S3 Dear Ms. Henwood: Re: M12619 – NSPI – 2026 Annual Capital Expenditure...

AI summary The Industrial Group has submitted closing comments on NSPI's 2026 Annual Capital Expenditure (ACE) Plan, expressing concerns about the increasing capital spending and the need for greater transparency and regulatory oversight. They highlight the need for updated reliability plans, improvements to capital expenditure justification criteria, and enhanced reporting on routine capital spending.

44:036/68424489aec148a8a199e0a4ad4fbeff) para 185. changed. A change in intent would occur when the alternative defended under the Why do this Project This Way section of the application changes. The Industrial Group does not agree that ei...

AI summary The Industrial Group disputes the proposed definitions of a 'Scope Change' in the CEJC, arguing that they are inaccurate and inappropriate for the current circumstances.

3.0 REPLY TO CA SUBMISSIONS The Consumer Advocate (CA) does not oppose approval of NS Power's proposed 2026 ACE Plan, but supports the recommendations made by the CA's consultant, John Wilson. The CA further noted concern regarding the cos...

AI summary The Consumer Advocate supports NS Power's 2026 ACE Plan but raises concerns about the cost-effectiveness of the Five-Year Reliability Plan. NS Power maintains its position, citing existing WAM systems for tracking and reporting, and explains that an equivalent Basis of Schedule approach is not suitable for routine work due to its repetitive nature.

Transcript, page 95. 1 3.5 Reliability-Related Projects 2 3 The CA raises concerns regarding vegetation management effectiveness, tree contact metrics, and 4 the use of estimated attribution factors for adverse weather. It also supports fu...

AI summary The CA raises concerns about the effectiveness of vegetation management and the use of estimated attribution factors for adverse weather. NS Power maintains that the ongoing third-party review is the appropriate forum for assessing these issues. The CA also recommends examining NS Power's spare equipment strategy and pooling arrangements, while NS Power asserts its current risk-based strategy is appropriate and cost-effective.

may have changed the scoring spread. The Board also expressed similar spread concerns related to scoring the options' costs, as it was not based on pro-rating an option cost to the lowest option cost. • The use of additional study data to...

AI summary The Nova Scotia Energy Board (NSEB) raised concerns about the cost estimates for the rock revetment option in the TUC Shoreline Sheet Pile Refurbishment project. NS Power completed additional studies that significantly increased the rock revetment option's cost, but the Board noted that the other options were not re-evaluated based on the new data, potentially affecting the cost-effectiveness of the chosen solution.

ontacts, based originally on subject-matter-expert estimates from 2019. Mr. Wilson's concern is that NS Power does not collect specific additional data to substantiate that attribution. Where there is programs. clear evidence that a tree c...

AI summary The text discusses concerns raised by Mr. Wilson regarding the accuracy of NS Power's attribution of outages to tree contact, and the Small Business Advocate's emphasis on ensuring expenditures lead to improved system performance and value for ratepayers. The DOE highlights a historical 'Reliability Gap' and criticizes NS Power's failure to meet reliability targets despite significant investments.

4.1 Findings [150] The Board agrees that vegetation management, system hardening and grid modernization are recognized tools for reliability improvements. It is on this basis, and an assessment of the individual merits of each project subm...

AI summary The Board has substantially approved the Five-Year Reliability Plan projects in the 2026 ACE Plan but expresses concerns about the value for ratepayers from significant vegetation management spending and the lack of measurable improvements in reliability despite increased expenditures. The Board emphasizes the need for a clearer connection between spending and improved reliability outcomes.

I N D E X O F P R O C E E D I N G S April 21, 2026 PAGE NO. 5 questioning is and the easiness of the break, but I do 6 have to break before 1 o'clock. And then we'll take a 7 mid-morning break again at a convenient time, and 8 depending on...

AI summary Nova Scotia Power has applied for Board approval of capital projects and routine spending totaling approximately $284 million. The Consumer Advocate is the only other party to have filed evidence, with their expert, John Wilson of Grid Strategies, raising concerns about cost minimization opportunities and providing 15 recommendations related to various reports and criteria.

NS POWER PANEL 43 In-ch, (Power) 1 integrity programs. Since then, I've held several roles 17 under way. We value the feedback such a review will 18 provide and see it as an important opportunity to 19 strengthen alignment on priorities, c...

AI summary The text discusses the importance of integrity programs and the value of feedback in strengthening alignment on priorities, cost-effectiveness, and other considerations. It also mentions a certified court reporting service.

NS POWER PANEL 481 Questions, (Murphy) 1 Q. So in terms of measuring the 2 effectiveness, then, are you suggesting that the 3 measurement be changing condition rating? 4 A. (Beaton) Yes, that's correct. 5 That's our primary measure. 6 Q. S...

AI summary The discussion centers on the effectiveness of a program measured by changes in condition ratings of power lines, with a focus on whether cost is considered in the evaluation. While the speaker acknowledges that cost is taken into account, there is no specific metric for cost per condition score change.

NS POWER PANEL 491 Questions, (Murphy) 1 that I feel is going to get us there within that, 2 absolutely looking at in terms of the real actual 3 result response of the system to those investments and 4 what are we actually getting, in term...

AI summary The discussion focuses on Nova Scotia Power's SAIDI performance and the effectiveness of investments in grid improvements, including right-of-way widening and vegetation management. Concerns are raised about whether these expenditures are delivering the expected improvements in system reliability.

NS POWER PANEL 521 Questions, (Chair) 1 that are reflected in this routine. It's also there is 13 Could we just hold on for one Q. 14 second? 15 (SHORT PAUSE) 16 Never mind. My apologies. THE CHAIR: 17 BY THE CHAIR: 18 Okay. I'm going to t...

AI summary The Chair of the NS Power Panel 521 is discussing the reasonableness of costs associated with transmission line replacement and upgrade projects approved since the 2021 ACE Plan. The Chair notes that while cost data is available, there is a need for a benchmark to assess whether these costs are reasonable.

Cr-ex, (Kayter) 1 Nova Scotia Power is beginning to do. I think we've seen 2 a lot of improvement in their efforts over the past few 3 years. 4 You know, as we discussed, I've been 5 handling these proceedings for six or seven years now fo...

AI summary The witness discusses improvements in Nova Scotia Power's operations over the past few years, noting that the Board has acknowledged these improvements and removed some reporting requirements related to cost-minimization. However, there are still aspects of Nova Scotia Power's operations that the witness believes have not been fully addressed.

INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS demonstrated to have achieved cost minimization. That's why, in the last couple of years, we've been really focused on these distribution routines and transmission routines and the Rel...

AI summary The speaker acknowledges Nova Scotia Power's efforts in cost minimization, particularly in distribution and transmission routines, and the ongoing third-party Reliability Plan review. They suggest there are still areas for improvement in cost effectiveness and mention the Vegetation Management Program as an example.

hat I imagine may be a first- in/first-out system of handling those assignments, using more geographic or assigning particular crews to particular projects based on their special expertise, et cetera. INTERNATIONAL REPORTING INC. CERTIFIED...

AI summary The discussion involves questions about efficiency improvements, cost per customer in Nova Scotia compared to other Canadian jurisdictions, and the impact of inefficiency on the ACE Plan. The witness expresses uncertainty about providing comparative data and questions the fairness of the questions asked.

INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS think on an earlier question I pointed out that that was a Nova Scotia Power staff during I think the usefulness of that information is in identifying whether Nova Scotia Power's work...

AI summary The discussion focuses on the efficiency of Nova Scotia Power's distribution routines and cost minimization strategies. The speaker acknowledges that the PDM model does not apply well to distribution and transmission routines, necessitating alternative methods to track and verify cost optimization. The speaker also notes a change in opinion based on evidence presented by the Industrial Group.

diction that I'm working in right now. So, yes, I think costs are going up as a result of those issues. I do have a recommendation in my testimony or my evidence regarding WILSON Cr-ex, (Kayter) INTERNATIONAL REPORTING INC. CERTIFIED COURT...

AI summary The speaker discusses rising costs due to supply chain issues and suggests pooling practices among utilities like those in New Brunswick, PEI, and Newfoundland as a potential solution. They note that raw material costs are a major driver of these increases and that a single utility cannot address the problem alone.