Topic:"Cost Recovery" in M09096

-14 effective energy solutions; - 15 providing accessibility for a wider variety of market sectors and customer 16 segments; and - 17 increasing the level of system-peak demand reduction benefits. 18 19 EfficiencyOne also considered afford...

AI summary EfficiencyOne evaluated the 2020-2022 Preferred Plan, noting minor rate increases (0.8–1.7%) and bill reductions (1–11%) for customers. The plan offsets nearly 6,000 GWh of energy production and reduces annual peak demand by 120 MW, with lifetime benefits exceeding $600 million.

Table 24: Direct Installation Performance Indicators - Comparison of Preferred and Alternate Plans Scenario Year Investment ($ million) First-Year Energy Savings (GWh) Lifetime Energy Savings (GWh) Peak Demand Savings (MW) Total Resource C...

AI summary Table 24 compares the performance indicators of preferred and alternate plans for direct installation, including investment, energy savings, peak demand savings, and cost metrics. The preferred plan shows higher investment and energy savings compared to the alternate plan, with the alternate plan having lower costs but lower overall savings.

e current level of DSM. Figure 1: Average Rate and Bill Impacts (2020-2035) as a Result of DSM Activities in 2020-2022 (Preferred Plan) The results in [Figure 1](#page-185-0) show that over the 16 years of the study period, rates will be a...

AI summary The analysis evaluates DSM impacts (2020-2022) on electricity rates and bills over 16 years, projecting 0.8-1.7% higher rates with DSM compared to without. The Preferred Plan offsets 5.9 GWh, reduces bills by 11% for residential customers, and saves $475M for NS Power. Model improvements include annual avoided fuel costs and line loss factors, informed by DSMAG input and the 2014 IRP's inflation assumptions.

11 Program cost recovery 12 EfficiencyOne tracks costs by rate class within each year. For each year of the 2020- 13 2022 DSM Plan, which was originally modelled by Navigant at the program level 14 (not by rate class), the planned investme...

AI summary EfficiencyOne tracks program costs by rate class annually. The 2020-2022 DSM Plan, originally modeled by Navigant at the program level, allocated investments to rate classes based on 2017 expenditure distributions. Annual DSM costs are converted to a $/kWh recovery component by dividing costs by with-DSM kWh sales per rate class.

9 4.1 OVERALL RATE IMPACTS 10 The general trend in rates, visible in all classes, is that the avoided costs and lost 11 revenues are approximately in balance throughout the life of DSM measures; this 12 means that DSM program cost recovery...

AI summary DSM program cost recovery drives rate impacts, with small (<1.7%) average rate increases across classes from 2020-2022. Avoided costs and lost revenues balance over DSM measures' lifetimes, but annual rate effects peak during 2020-2022 before nearing zero post-2022. Figures 2-4 illustrate average impacts, annual trends, and expenditure comparisons.

29 • Further exploring NS Power's proposed means of allocating lost revenues and 30 avoided costs to rate classes; 1 • Discussing which avoided cost estimates to use when avoided cost estimates 2 change (EfficiencyOne indicated its intende...

AI summary The text discusses NS Power's proposed allocation of lost revenues and avoided costs to rate classes, focusing on the use of avoided cost estimates and historical data in the Rate and Bill Impact Analysis (RBIA) model. EfficiencyOne has provided its approach and expects to collaborate with stakeholders for the next RBIA filing.

1 7. CONCLUSION 2 This analysis captures the impacts of 2020-2022 DSM programs to customer rates 3 and bills throughout the full lifetime of the DSM impacts. Over the lifetime of 4 measures installed in 2020-2022, NS Power customers will s...

AI summary This conclusion discusses the long-term benefits of DSM programs from 2020-2022, including customer savings of over $475 million. It highlights the Total Resource Cost and Program Administrator Cost ratios, rate increases, and bill savings. The analysis also acknowledges the limitations of the evaluation and mentions future improvements to the model.

f positive and negative rate pressures), which accounts for recovery of fixed costs that are not avoided due to DSM. The dotted red line shows the average net rate impact of DSM over the study period. This graph shows bill impacts of DSM a...

AI summary The text discusses the financial and billing impacts of Demand Side Management (DSM) programs, showing how they affect customer bills and participation rates. Graphs illustrate the average net rate impact, monthly bill differences, and cumulative program participation for tracked and untracked programs.

otal customers in the class. Each customer is counted once for each year that they participate in any program. This graph shows estimated rate impacts of DSM, relative to the no-DSM scenario. Blue bars show the impact of program cost recov...

AI summary The text discusses the estimated rate and bill impacts of Demand-Side Management (DSM) programs, comparing scenarios with and without DSM. It highlights the effects of program cost recovery, lost revenues, and avoided utility costs, with visual representations of the net rate and bill impacts for participants, non-participants, and total customers.

NS Power provided estimates for 2019 by class, including block 1, block 2, Fuel Adjustment Mechanism, and demand charges where applicable. base charges are assumed to remain flat after 2019. Transformer credits are not included in rates. C...

AI summary NS Power provided estimates for 2019 by class, including block 1, block 2, Fuel Adjustment Mechanism, and demand charges. Base charges are assumed to remain flat after 2019. Transformer credits are not included in rates. The calculation of rate impacts for the DSM scenario involves program cost recovery, lost revenue recovery, and avoided cost components.

ement for Electricity Efficiency and Conservation Activities between E1 and Nova Scotia Power Inc. (DSM 2020- 2022) M09096 (E-ENS-R-19) E1 Responses to Nova Scotia Power Inc. (NS Power) NON-CONFIDENTIAL 1 Request IR-02: 2 3 For the 2019 DS...

AI summary EfficiencyOne (E1) states that all DSM programs for 2019 and 2020-2022 are funded by NS Power customers and the Province of Nova Scotia for non-electric residential components. Shared costs are allocated using the Nova Scotia Utility and Review Board's approved methodology. Funding breakdowns and cost allocations are detailed, with references to prior responses for specific figures.

C] acquired on or after the Implementation Date must be transferred to Nova Scotia Power Incorporated for the benefit of customer so Nova Scotia Power Incorporated as directed by the [Review] Board." 2015 spending was reduced by $2.3M to c...

AI summary EfficiencyOne (E1) and Nova Scotia Power Inc. (NSP) discuss a supply agreement for energy efficiency activities under the DSM 2020-2022 plan (M09096). E1 states no affiliates will execute the Preferred Plan. A $2.3M credit was applied to NSP in 2017 to offset ITC-related spending reductions from 2015.

component was modelled as one discrete measure having both energy and capacity related 21 avoided costs with a NPV of $140, 663,694. 22 23 d) No such conversion was necessary – the demand focused measures and activities proposed 24 to be i...

AI summary The text discusses the modelling of a component with energy and capacity-related avoided costs, valued at $140,663,694 in NPV. It highlights that demand-focused measures will provide capacity savings starting in 2020 and continuing until the end of their Effective Useful Lives, offering both short-term and mid-to-long term demand savings.

4 PLANNED AND ACTUAL DSM EXPENDITURES 2345 The October 7, 2015 NSUARB Order directed NS Power to file its proposed accounting treatment and cost recovery for the 2015 DSM programs and the 2016-2018 programs. 42 To aid in such cost recovery...

AI summary The NSUARB Order from October 7, 2015 directed NS Power to file its proposed accounting treatment and cost recovery for DSM programs from 2015 and 2016-2018. EfficiencyOne will report on planned and actual DSM expenditures by rate class, with data presented in multiple tables.

savings against the short-term cost impacts to customers. 1 It is important to note that historically E1 has been capable of delivering higher energy 2 savings at lower than its budget forecast. This suggests E1 is able to achieve energy 3...

AI summary Nova Scotia Power Inc. (NS Power) requests the Utility and Review Board (UARB) not to approve E1's Preferred Plan for the 2020-2022 DSM Supply Agreement period and to direct E1 to develop a lower-cost Demand Side Management (DSM) plan. NS Power also requests the apportionment of DSM expenditure variations to the FAM account and the return of surplus funds from previous DSM agreements.

Q. Mr. Levitan, please describe in general terms the state of DSM programs in Nova Scotia. A. Nova Scotia's DSM programs are designed to shift electricity consumption to off-peak periods as well as to reduce consumer energy usage overall....

AI summary Nova Scotia's DSM programs aim to shift electricity consumption to off-peak periods and reduce overall energy usage. These programs are administered by EfficiencyOne, which has developed multiple DSM Resource Plans over the years. NS Power funds these programs and recovers costs from ratepayers. The effectiveness of these programs has varied, with some years showing lower costs and higher savings than projected.

Q. Are the claimed benefits also based on avoided energy cost assumptions? A. Yes. The claimed customer benefits depend on the assumptions that EfficiencyOne has made. As I understand, EfficiencyOne has used high levelized fuel costs from...

AI summary The answer confirms that EfficiencyOne's claimed benefits are based on assumed avoided energy costs, which are significantly higher than actual fuel costs experienced by NS Power's customers. This discrepancy may lead to an overestimation of DSM benefits and affect the cost-effectiveness of measures considered.

Q. What are the short-term costs required to achieve the DSM savings in the Preferred Plan? A. The targeted 7.4% increase in energy savings and 84% increase in capacity savings over the historical averages will necessitate a 23.1% increase...

AI summary The Preferred Plan requires a 23.1% increase in DSM investment in 2020 to achieve 7.4% higher energy savings and 84% higher capacity savings compared to historical averages. This contrasts with most other jurisdictions, which maintain flat or decreasing DSM spending. References include EfficiencyOne Evidence tables and Board decisions M06733 and M08604.

RBIA Observations - The apportionment of DSM costs and benefits to rate classes in the current RBIA methodology uses a static allocator factor based on class shares in one historic year (2014 test year) throughout the RBIA period of 2011-2...

AI summary The current RBIA methodology's static allocation of DSM costs and benefits across rate classes, based on 2014 data, fails to account for dynamic changes in class usage, line losses, and long-term load forecasts. Additionally, the use of levelized fuel costs extending beyond the RBIA's 2011-2033 timeframe overstates early savings and understates later ones.

Proposed Revisions to RBIA Methodology - To the extent practical, the RBIA should reflect the Cost of Service Study methodology in the allocation of forgone recovery of fixed system costs and benefits of DSM programs. - Annual fuel costs r...

AI summary Proposed revisions to the Rate and Bill Impact Analysis (RBIA) methodology aim to align with the Cost of Service Study approach, allocating DSM program costs and benefits based on energy usage and demand shares, using a top-down revenue determination process similar to General Rate Adjustments (GRAs). Enhancements include class line loss considerations and aligning customer participation with energy savings.

E1 Responses to Consumer Advocate (CA)

AI summary This section contains E1's responses to the Consumer Advocate (CA) in the regulatory proceeding. It likely includes E1's position on various issues raised by the CA, such as program effectiveness, cost recovery, and consumer impact.

16 Table 1: Other Resource Impact Values Impact Type Units Value Water $/m3 0.51 Fuel Oil $/liter 0.78 Wood $/cord 300 Pellet $/tonne 300 Year 2019 2020 2021 2022 2023 2024 Avoided Costs of Energy ($/kWh) 0.057 0.060 0.062 0.084 0.085 0.08...

AI summary Table 1 presents resource impact values for water, fuel oil, wood, and pellets, along with avoided costs for energy, capacity, and transmission from 2019 to 2042. EfficiencyOne (E1) responded to the Ecology Action Centre (EAC).

Small Business Advocate Issue ENS Position/Proposal IG Comments NEW_3 Line losses Use "at generator" savings to determine avoided costs; use "at meter" savings for lost revenues and bill impacts Agree. NEW_4 Cumulative customer counts Use...

AI summary The Small Business Advocate discusses proposals related to line losses, cumulative customer counts, and the method of averaging bill impacts. The ENS position is supported by IG comments. Additionally, there are observations about changes in NS Power's cost structure since 2014, including increased COMFIT generation and its impact on avoidable fuel costs and fixed cost recovery.

2 Request IR-04: 3 4 (a) Please provide forecasted and actual spending by customer rate class, by year from 5 2015 through to 2018, forecasted investment for 2019 and a forecasted investment for 6 2020 – 2022 for both E1's Preferred Plan a...

AI summary Request IR-04 seeks forecasted and actual spending data by customer rate class from 2015–2018, and investment forecasts for 2019–2022 under E1's Preferred Plan and Alternate Scenario. It also requests cost allocation tables by rate class for each year in both scenarios.

NON-CONFIDENTIAL c) Provincially funded programs are evaluated separately by EfficiencyOne's third party evaluator. The results are reported to the Province annually. The energy savings resulting from these programs are non-electric, excep...

AI summary Provincially funded programs, including SolarHomes, are evaluated by EfficiencyOne's third-party evaluator. SolarHomes' savings won't count toward NSUARB-approved DSM targets. Costs are allocated via NSUARB's model.

NON-CONFIDENTIAL Request IR-07: Regarding the approximate $7 million surplus remaining from the 2016-2018 DSM Plan, please provide E1's perspective on how that might best be used to benefit electricity ratepayers. Response IR-07: Efficienc...

AI summary EfficiencyOne proposes using a surplus of approximately $7 million from the 2016-2018 DSM Plan to benefit ratepayers by applying it equally across the 2020-2022 DSM Plan, citing alignment with past practice and maximum customer benefit. It also suggests investing a $15 million HST refund into the 2020-2022 DSM Plan for a higher return compared to direct refunds or early repayment of 2015 financing.

Program administration The Instant Savings program is administered by a third-party delivery agent, whereas the BER program is administered internally. Delivery agent costs are a relatively higher portion of administrative costs for Instan...

AI summary The Instant Savings program is managed by a third-party delivery agent, while the BER program is administered internally. The use of a delivery agent increases administrative costs for Instant Savings compared to BER.

Appendix E. EERAM Economic Tests Measure, program, end‐use, building type, and overall portfolio level costs and benefits are calculated in EERAM. Some of these costs and benefits are calculated as net and others as gross. Net values take...

AI summary This section of Appendix E discusses the Economic Evaluation of Resource and Measures (EERAM) framework, which calculates costs and benefits of energy efficiency programs at various levels. It outlines four financial tests (TRC, PAC, RIM, PCT) used to evaluate program impacts, including how benefits and costs are defined and calculated, with a focus on net-to-gross adjustments and discount rates.

E1 Responses to Small Business Advocate (SBA) 1 Request IR-09: 2 3 Please refer to EfficiencyOne 2020-2022 DSM Resource Plan Filing, Evidence, Page 13, 4 lines 23-26, E1 states that DSM should be subsidized by HST savings, it is in the bes...

AI summary The response to the Small Business Advocate (SBA) discusses a 480% return on investment from DSM programs, calculated as the average PAC ratio of lifetime benefits to program administrator costs. The response refers to EfficiencyOne's 2020-2022 DSM Resource Plan for detailed calculations and allocation by rate class.

NON-CONFIDENTIAL Request IR-18: 2 If applicable, please describe the methodology E1 employs in determining cost allocation related with proposed 2020-2022 DSM Plan between rate classes. Please provide any related workpapers with formulae i...

AI summary The document addresses a request (IR-18) for EfficiencyOne's methodology on cost allocation for the 2020-2022 DSM Plan between rate classes. EfficiencyOne refers to their response to Synapse IR-01, dated May 13, 2019, as the basis for their approach. The Small Business Advocate (SBA) is involved in the proceeding.

NON-CONFIDENTIAL 1 Request IR-01: 2 3 Please describe how EfficiencyOne proposes to recover the costs of its proposed programs. 4 5 a. Over what time period would costs be recovered? 6 7 b. How would costs be allocated to different rate cl...

AI summary EfficiencyOne is asked about its cost recovery methodology for its proposed programs, including the time period for recovery, allocation across rate classes, and the current process. It explains that prior to 2015, it used a true-up process with the DCRR, but this changed in 2015 when DSM costs were incorporated into NS Power's non-fuel costs.

Request IR-14: Please refer to Appendix A. For each of the programs included in the 2020-2022 Plan, please provide the annual costs broken out in detail, using the cost tracking categories used by EfficiencyOne or the following cost catego...

AI summary The response to Request IR-14 provides detailed annual costs for programs in the 2020-2022 Plan, broken down into categories such as general administration, customer incentives, marketing, training, and evaluation. The costs are based on historical percentages and may change with implementation.

Both annual rate changes and cumulative changes are useful parameters. NON-CONFIDENTIAL 1 Request IR-34: 2 3 Refer to Section 3.7.1 (No-DSM Scenario Rates) on Page 11 of 37 of Appendix B. 4 5 a. How was the "approximate Program Cost Recove...

AI summary The document discusses the calculation of the 'approximate Program Cost Recovery amount' for 2019 and the basis for the 'demand rate escalation factor of 2.7 percent'. It explains that the cost recovery was calculated by dividing the estimated 2019 DSM investment by class by the estimated 2019 with-DSM class energy consumption, and that the escalation factor was based on historical and forecasted rate escalation data.

NON-CONFIDENTIAL Request IR-40: - Refer to the Appendix B workbooks, "Attribution" tab. Why does the model estimate total - lost revenues and total avoided costs for all customers together, and then reallocate these lost - revenues and avo...

AI summary The document discusses a model's approach to reallocating lost revenues and avoided costs across rate classes using historical revenue shares. EfficiencyOne revised its 2016 model to account for fixed cost reallocation after stakeholder feedback and recommendations from Elenchus Research Associates, aiming to approximate a Cost-of-Service Study without full complexity.

2017_ENS_1f) Modeling of billed demand reductions

AI summary The document addresses the modeling of billed demand reductions within a Nova Scotia regulatory proceeding, focusing on methodologies for forecasting demand-side management impacts. It involves analysis of programs like AMI and DSM, with implications for utility rate structures and cost-of-service studies.

Considerations - The analysis will only include DSM proposed in the DSM Plan application (2020-2022 program years) - The UARB directed NS Power to update avoided costs as required by EfficiencyOne for use in preparation of the 2020-2022 DS...

AI summary The analysis focuses on DSM proposals for 2020-2022, with the UARB directing NS Power to update avoided costs per EfficiencyOne. Synapse recommends using costs from the Generation Optimization matter, while NS Power advocates retaining 2014 IRP avoided costs and updated transmission/distribution costs. EfficiencyOne supports NS Power’s position in the 2018 RBIA matter.

NON-CONFIDENTIAL Request IR-12: The E1 application based on funding levels of $43 million allocates $1 Million for the Affordable Multi-Family Housing and Non-Profit Organizations Program. Does NSPI agree that this the appropriate level of...

AI summary The document addresses a request (IR-12) regarding the allocation of $1 million for the Affordable Multi-Family Housing and Non-Profit Organizations Program under NSPI's funding models. NSPI refers the response to AEC IR-11, indicating the need for further review or documentation.

NON-CONFIDENTIAL 1 Request IR-4: 2 3 Reference: Page 23, lines 1-11. 4 5 "Non-customer funded DSM occurring in the electricity sector is helping reduce the 6 7 need for subsidized DSM. Since 2012, NS Power has been supporting the conversio...

AI summary The document discusses NS Power's support for converting from electric baseboard heat to heat pumps, noting that 45% of participants replaced electric baseboard heat. It also addresses the costs of the program, stating they are borne by participants, and explains benefits for those who converted from other fuels. Responses refer to external documents for detailed financial information.

CONFIDENTIAL (Attachment Only) 1 Request IR-6: 2 3 Reference: Page 30. 4 5 6 7 NS Power proposes that DSM costs be dealt with either as part of the FAM or in a similar manner… 8 (a) Please elaborate on the proposal and how this differs fro...

AI summary NS Power proposes to handle DSM costs either through the FAM or in a similar manner, differing from the previous DSM Rider. The response indicates a proposal to combine the DCRR and DCRR BA for revenue collection and rate presentation. The Board's 2016 decision on DSM variances is referenced, with a request for reconciliation and a variance analysis from 2015 to 2019.

Alternative Compensation Mechanisms Numerous studies by utilities, regulators and other entities have been conducted to identify the value of distributed solar to utilities through quantifying the benefits and costs associated with solar a...

AI summary The text discusses the economic impact of distributed solar on utilities, balancing benefits like avoided generation costs against lost revenue from energy sales. It highlights challenges in cost-allocation between solar and non-solar customers and references Non-Wire Alternatives (NWA) as a grid management strategy. Studies by Hansen et al. and Wood Mackenzie are cited.

2020-2022 Demand Side Management (DSM) Resource Plan (NSUARB M09096) NSPI Responses to NSUARB Information Requests 1 Request IR-14: 6 section also notes that the funds can be directed otherwise by the Board. 7 8 (a) Does NS Power agree tha...

AI summary NSPI responds to NSUARB information requests regarding the 2020-2022 DSM Resource Plan, agreeing that refunding funds or applying them against the 2015 DSM amortization would benefit customers. NSPI proposes returning funds through the FAM or via bill credits to ensure rate stability and direct customer benefits.

3.4 Future DSM as a FAM Expense [39] In its Evidence, NS Power proposed that any variance from $34.05 million in approved annual DSM costs for 2020-2022 should be included in the FAM account prior to the next General Rate Application (GRA)...

AI summary NS Power proposes including future DSM costs in the FAM account prior to the next GRA and 100% during the GRA for transparency. The Consensus Agreement with E1 supports FAM-based DSM funding at the next GRA. The Consumer Advocate opposes automation via FAM, citing transparency risks and cost allocation issues. The Board defers resolution to future applications.

3.7.1 HomeWarming Program [55] Under the Consensus Agreement, and with the apparent agreement of the Clean Foundation, the HomeWarming Program, funded through a charitable contribution by NS Power, will be operated and administered by E1 f...

AI summary The HomeWarming Program, funded by NS Power via a charitable contribution, is administered by E1 for three years starting 2020. Not requiring Board approval due to non-ratepayer funding, but the Board mandates segregation of records to prevent ratepayer fund misuse and proper charging of E1's work to the program.

Document: 268936 Date Filed: April 29, 2019 Synapse (E1) Page 1 of 11 1 2 Request IR-1: programs. costs of Please describe how EfficiencyOne proposes to recover the its proposed 3 a. Over what time period would costs be recovered? 4 b. cos...

AI summary The document contains requests for information regarding EfficiencyOne's proposed cost recovery for its Demand Side Management (DSM) programs, including time periods for recovery, allocation of costs to rate classes, and the process for recovering expenses. It also asks about changes in the energy landscape since 2014, the impact on integrated resource plans, and operational constraints related to DSM.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 a. To what extent-in both percentage and absolute values-does the incorporation of customer-related costs distort the allocation of benefits an...

AI summary The document includes several regulatory requests directed at NS Power, focusing on the incorporation of customer-related costs, avoided marginal costs, levelized fuel costs, and the impact of DSM on thermal generation capacity factors. These requests seek detailed explanations, data sources, and workbooks for analysis.

1 (b) Please produce all studies, calculations, or other documents and 2 evidence relied upon by E1 rely upon to quantify that risk? 3 (c) Is this submission regarding risk any different from the submission 4 regarding risk to industry cap...

AI summary The text outlines several information requests related to EfficiencyOne's (E1) DSM Resource Plan, including requests for studies, weighting of aspects in the plan, and cost allocation tables. It also distinguishes between demand reduction and demand response activities in E1's Preferred Plan. The proceeding involves an application by E1 for approval of a supply agreement and DSM Resource Plan with Nova Scotia Power Inc.

30 1 Request IR-11: 2 Reference: Appendix A, page 94. 3 4 5 Dependent on approved cost allocation methodology, EfficiencyOne will undertake reasonable efforts to avoid program changes that will result in substantial changes to any customer...

AI summary The text outlines several requests for information related to cost allocation methodology, definitions of 'substantial changes' to customer rate classes, and the basis for cost allocation using 2017 data. It also asks for calculations and regulatory decisions supporting budget figures, as well as a redline version of a supply agreement.

(ii) Interaction between DSM assessments and the Fuel Adjustment Mechanism (FAM) In its pre-filed evidence, NSPI suggested that DSM funding should be automated either through the FAM or some other mechanism. At the hearing, NSPI expressed...

AI summary NSPI proposes automating DSM funding via FAM or another mechanism, but the Consumer Advocate opposes due to transparency and cost allocation concerns. The Consumer Advocate also highlights the complexity of automating DSM through FAM compared to one-time HST refund credits. The Consensus Agreement emphasizes returning HST refunds directly to ratepayers.

(iii) Home Warming Program At the hearing, E1 confirmed that all costs associated with the Home Warming Program would be funded from NSPI's shareholder donation. As E1 increases its involvement in the Home Warming Program, it will be impor...

AI summary E1 confirmed that the Home Warming Program's costs are funded via shareholder donations, not ratepayers. As E1 increases involvement, careful cost tracking is necessary to prevent ratepayer funding of non-regulated activities within the program.

3.3 Allocation of Program Costs [37] The Industrial Group noted that, in response to Undertaking U-2, NS Power provided tables showing the allocation of program costs by year to each of the customer classes. While the total annual spending...

AI summary The Industrial Group identified a discrepancy of over $800,000 in program cost allocations between NS Power and E1. NS Power agreed to address the issue with E1 in a compliance filing, as directed.

3.4 Future DSM as a FAM Expense [39] In its Evidence, NS Power proposed that any variance from $34.05 million in approved annual DSM costs for 2020-2022 should be included in the FAM account prior to the next General Rate Application (GRA)...

AI summary NS Power proposes that future DSM costs be treated as FAM expenses, with variances from the approved 2020-2022 budget included in the FAM prior to the next GRA. The Consensus Agreement with E1 aligns with this approach, while the Consumer Advocate raises concerns about transparency and cost allocation risks. The Board defers resolution to future applications.

3.7.1 HomeWarming Program [55] Under the Consensus Agreement, and with the apparent agreement of the Clean Foundation, the HomeWarming Program, funded through a charitable contribution by NS Power, will be operated and administered by E1 f...

AI summary The HomeWarming Program, funded by NS Power through a charitable contribution, is administered by E1 for three years starting January 1, 2020. As it is not ratepayer-funded, it doesn't require Board approval, but the Board mandates segregation of program records to prevent ratepayer funds from being used and to ensure proper charging of E1 employees' work to the program.

Allocation of Program Costs - Nova Scotia Power was directed by the NSUARB in its Order dated October 7, 2015, Matter - M07151, to file its proposed accounting treatment and cost recovery for the 2015 DSM - programs and 2016-18 DSM program...

AI summary Nova Scotia Power followed NSUARB's 2015 order (M07151) to allocate DSM program costs annually, adjusting variances during GRA. EfficiencyOne provided spending data aligned with NS Power's proposals, with cost allocation figures from 2019 reflecting 100% of program costs by rate class. NS Power's 2020-2022 allocation process used four steps outlined in Undertaking U-1, approved under M06733.

HomeWarming Program - EfficiencyOne is directed to ensure that the records and accounts of the HomeWarming - Program be segregated such that ratepayer funds are not used in connection with the program, - and the work of EfficiencyOne emplo...

AI summary EfficiencyOne must segregate HomeWarming Program records to prevent misuse of ratepayer funds and ensure proper charging of employee work. The program is separately reported from the DSM Fund under the NSUARB-approved Cost Allocation Methodology (CAM), with annual audits verifying compliance.

Costs - EfficiencyOne and Ecology Action Centre (EAC) agree that EfficiencyOne will reimburse - EAC for the external consultant costs incurred in the course of this matter.

AI summary EfficiencyOne and Ecology Action Centre (EAC) have agreed that EfficiencyOne will reimburse EAC for external consultant costs incurred during the regulatory proceeding. This agreement pertains to the allocation of expenses related to the matter under review by the NSUARB.

EfficiencyOne developed the 2020-2022 Demand Side Management (DSM) Resource Plan (DSM Resource Plan) to acquire cost-effective energy efficiency and system coincidence peak demand reduction resources that provide maximum benefits to ratepa...

AI summary EfficiencyOne's 2020-2022 DSM Resource Plan proposes a $110 million investment in energy efficiency initiatives, which is expected to save customers money, reduce greenhouse gas emissions, and support the energy efficiency industry in Nova Scotia. The plan builds on the success of previous programs and highlights a 4:1 benefit-to-investment ratio from past DSM efforts.

2. DEVELOPMENT APPROACH AND DETAILS

AI summary The section outlines the development approach and details, referencing key acronyms and programs related to Nova Scotia's regulatory proceedings, including demand-side management, cost tests, and efficiency initiatives.

Table 4: 2021 DSM Resource Plan Investment and Savings 2021 Investment ($ million) Lifetime Benefits ($ million) a First-Year Energy Savings (GWh) Lifetime Energy Savings (GWh) Peak Demand Savings (MW) Total Resource Cost Test (TRC) b Prog...

AI summary Table 4 presents the 2021 investment and savings data for Demand Side Management (DSM) programs in Nova Scotia, detailing residential and business programs, including energy savings, cost tests, and total resource costs.

Existing Residential: Program Description

AI summary The document outlines the Existing Residential Program under Nova Scotia's regulatory framework, involving Demand Side Management (DSM) initiatives. Key entities include the Nova Scotia Utility and Review Board (NSUARB) and Efficiency Nova Scotia (ENS), with discussions on cost allocation methodologies and program evaluation.

4.3.7 Low-Income Performance Indicators 15 Low-income participation in the New Residential program is assumed to be zero. & lt;sup>a TRC is a benefit/cost ratio comparing lifetime benefits to the sum of EfficiencyOne's and participants' co...

AI summary The document outlines Low-Income Performance Indicators, noting zero participation in the New Residential program. It defines TRC and PAC as benefit/cost ratios, and explains metrics like levelized and nominal costs of saved energy, referencing EfficiencyOne and Nova Scotia Power's WACC.

Custom Incentives: Program Description

AI summary The document outlines a program description for Custom Incentives under Nova Scotia's regulatory framework, involving entities like NSUARB and ENS. Key terms include DSM, TRC, and PAC, with references to cost allocation and evaluation methodologies.

5.2.2 Enhancements in 2020-2022

AI summary Section 5.2.2 outlines regulatory enhancements in Nova Scotia from 2020-2022, focusing on demand-side management, cost allocation methodologies, and efficiency programs. Key entities include the NSUARB, ENS, and DSMAG, with acronyms related to utility regulation and energy efficiency initiatives.

Table 15: 2020-2022 Custom Incentives Performance Indicators Year Investment ($ million) First-Year Energy Savings (GWh) Lifetime Energy Savings (GWh) Peak Demand Savings (MW) Total Resource Cost Test (TRC) a Program Administrator Cost Tes...

AI summary Table 15 presents performance indicators for custom incentives from 2020 to 2022, including investment amounts, energy savings, peak demand reductions, and cost metrics. The data show consistent growth in investment and energy savings over the three years, with total investment reaching $21.2 million and cumulative energy savings of 1,233.2 GWh.

Appendix BA 2020-2022 DSM Resource Plan Redline Version

AI summary Appendix BA presents the redline version of the 2020-2022 Demand Side Management (DSM) Resource Plan, part of a regulatory proceeding under the Nova Scotia Utility and Review Board (NSUARB). The document outlines revisions to DSM strategies, cost allocation methodologies, and compliance with efficiency programs.

The evidence used to inform the development of the key considerations relied on 1 several sources including but not limited to: 2 results of Nova Scotia Power Inc.'s (NS Power) 2014 Integrated Resource • 3 Planning (IRP) Process; 4 past No...

AI summary The evidence relied on includes past IRP processes, NSUARB decisions, DSM resource plans, and stakeholder input. The Preferred Plan aims to reduce utility costs and achieve energy savings aligned with the 2014 IRP. It emphasizes affordability, diversity in energy savings, and bill impacts, showing minor rate increases and significant long-term benefits.

Table 2: 2020-2022 Preferred DSM Resource Plan Investment and Savings Year Investment ($ million) Lifetime Benefits ($ million) a First-Year Energy Savings (GWh) Lifetime Energy Savings (GWh) Weighted- Average Measure Life (years) Peak Dem...

AI summary Table 2 presents the investment and savings data for the 2020-2022 Preferred DSM Resource Plan, including metrics such as investment amounts, energy savings, and cost tests. The data highlights the financial and energy efficiency outcomes of the demand-side management initiatives during this period.

Table 4: 2021 DSM Resource Plan Investment and Savings 2021 Investment ($ million) Lifetime Benefits ($ million) a First-Year Energy Savings (GWh) Lifetime Energy Savings (GWh) Peak Demand Savings (MW) Total Resource Cost Test (TRC) b Prog...

AI summary Table 4 outlines the 2021 Demand Side Management (DSM) Resource Plan Investment and Savings, detailing investments, benefits, energy savings, and cost tests for various residential and business programs. It includes data on energy savings, peak demand reduction, and cost evaluations like the Total Resource Cost Test (TRC) and Program Administrator Cost Test (PAC).

4.3.64.2.6 Implementation Strategy

AI summary The section outlines the implementation strategy for demand-side management and related programs under Nova Scotia regulatory oversight, involving entities like NSUARB and ENS, with focus on cost allocation, evaluation, and compliance with regulatory tests.

7 Efficient Product Rebates: Program Description 8

AI summary The document outlines the Efficient Product Rebates program under Demand Side Management (DSM) in Nova Scotia, managed by Efficiency Nova Scotia (ENS). It details cost allocation methodologies (CAM), evaluation processes (EVA), and reporting (RF) frameworks. Key stakeholders include the Nova Scotia Utility and Review Board (NSUARB) and the Efficiency Trade Network (ETN).

5.1.6 Implementation Strategy

AI summary The section outlines the implementation strategy for demand-side management programs, involving the NSUARB and other regulatory bodies, with references to various acronyms related to energy efficiency and cost allocation methodologies.

5.2.2 Enhancements in 2020-2022

AI summary The section outlines enhancements implemented between 2020 and 2022, though specific details are not provided in the text. Key acronyms related to energy management, regulatory bodies, and programs are listed for reference.

5.2.6 Implementation Strategy

AI summary The section outlines the implementation strategy for Demand Side Management (DSM) programs, referencing regulatory bodies like NSUARB and efficiency initiatives such as ENS. Key acronyms related to cost allocation, evaluation, and regulatory processes are listed.

5.3.5 Program Design

AI summary The section discusses Program Design within the Nova Scotia regulatory proceeding, referencing key acronyms and entities involved in energy management and utility regulation. It highlights DSM, TRC, and other related terms, emphasizing cost allocation and evaluation methodologies.

10 11 12

AI summary This section of the Nova Scotia regulatory proceeding outlines key entities, programs, and acronyms related to energy management and utility regulation. It references organizations like NSUARB, programs such as DSM, and methodologies like CAM and WACC, highlighting their roles in efficiency initiatives and cost allocation.

4. PRICE & PAYMENT - 4.1 NSPI agrees to pay EfficiencyOne for EECA as set out in Schedule "B" Compensation (the " Contract Price "). - 4.2 The Contract Price shall constitute full compensation for the EECA, and no additional compensation s...

AI summary NSPI agrees to pay EfficiencyOne for EECA services under Schedule B, with the Contract Price covering all costs. Monthly payments are due on the first business day of each month, inclusive of HST. NSPI may withhold taxes for non-residents, with provisions for statutory waivers. All payments are in Canadian currency, with no additional compensation allowed for indirect costs.

3 HEATING SYSTEM COST COMPARISON This chapter describes the methodology used for the heating system cost comparison and the insights which can be drawn from the results. The objective of this part of the study is mainly to answer the follo...

AI summary This section outlines a study comparing capital and energy costs between VRF heat pump systems and natural gas heating systems, focusing on methodology and key insights from the analysis.

Table 7: 2020-2022 Residential Efficient Product Rebates Performance Indicators Venr Investment (S million) First-Year Energy Savings (GWh) Lifetime Energy Savings (GWh) Peak Demand Savings (MW) Total Resource Cost Test (TRC) 2 Program Adm...

AI summary Table 7 presents performance indicators for the Residential Efficient Product Rebates program from 2020 to 2022, including investments, energy savings, peak demand savings, and cost metrics. The data highlights trends in participation, energy efficiency, and cost-effectiveness over the three-year period.

EfficiencyOne Performance Alignment Study April 21, 2020 In undertaking our review, we appreciated that the extent of detailed information supporting each assumption can vary according to the type and nature of the resource cost. The depth...

AI summary The NSUARB reviewed EfficiencyOne's cost estimates, noting reliance on past performance without sufficient documentation for updates. EfficiencyOne adjusts past data internally, but documentation for key estimates and participation rates is lacking.

hese years are contained within a single Plan (the 2016-2018 Plan) and are thus the outcome of a single planning process. In 2016-2018 the NSUARB directed April 21, 2020 EfficiencyOne to reduce its planned costs by 14%, 15% and 18%, respec...

AI summary The document outlines a variance analysis conducted to identify factors that led to a historic overestimation of costs in 2015 and 2016-2018. The analysis focused on EfficiencyOne's planned costs and actual outcomes, revealing that overestimations were influenced by assumptions about future program components, participation rates, and market conditions.

on - − Provide an understanding and meaningful information to users of the reports regarding areas of estimation, trends to date, re-allocation of costs, and forecasted results within the Plan period. For comparative purposes, we obtained...

AI summary The text highlights the need for transparency in reporting estimation areas, cost reallocation, and forecasting within the Plan period. It contrasts Efficiency Vermont and Efficiency Maine Trust's regulatory approaches to handling overestimation and underspend with EfficiencyOne's method, which addresses underspend at the end of the three-year Plan period.

2.1 Key terms and concepts Key terms and concepts discussed and referenced within the report include the following: - 2013 Potential Study Completed on behalf of EfficiencyOne by a third-party. The purpose of the study was "…to conduct a D...

AI summary The document defines key terms related to Nova Scotia's Demand Side Management (DSM) programs, including the 2013 Potential Study, Admin Cost, Balance Adjustment, Compliance Filing, and Continuation Plan. It outlines DSM's role in managing energy demand and the DSM Cost Recovery Rider (DCRR) mechanism for funding DSM activities. EfficiencyOne and Efficiency Nova Scotia Corporation (ENSC) are highlighted as key entities involved in DSM planning and implementation.

2.3 Our understanding ENSC was established through legislation with the responsibility and accountability for DSM administration. This responsibility was transferred from NSPI to ENSC effective October 1, 2010. Under ENSC, the following ac...

AI summary ENSC transitioned DSM administration to EfficiencyOne in 2015, following legislative changes under the Public Utilities Act and the 2014 Electricity Efficiency and Conservation Restructuring Act. NS Power now contracts with ENS franchise for DSM, with NSUARB overseeing performance requirements and cost recovery limits.

3.1 Approach to responding to NSUARB Question 1 To answer the question of whether there was an upward bias, we sought to understand how assumptions related to resource costs were supported. In our planning work in the course of this study,...

AI summary The response to NSUARB's question on upward bias in DSM Plans involves comparing resource cost assumptions to FOFI principles from the CPA Canada Handbook. Support for assumptions may come from past performance, feasibility studies, and market data, with the depth of support varying by cost type and significance.

4.1 Approach to responding to NSUARB Question 2 To respond to NSUARB Question 2, we conducted a variance analysis of costs and energy savings for 2015 and 2016-2018. We worked with EfficiencyOne to understand and document the reason for th...

AI summary The response to NSUARB Question 2 involved a variance analysis of 2015 and 2016-2018 DSM program costs and savings, identifying overestimation factors. EfficiencyOne relied on third-party modellers and faced jurisdictional comparability challenges, leading to limited Canadian benchmarks. NSUARB mandated cost reductions, and underspending declined over time, influenced by FOFI assumptions and market variations.

Factors of overestimation – Inherent in the operating environment Challenges that are present with the estimation of participation. We appreciate that it is challenging to estimate customer uptake of measures within program components. Pre...

AI summary The text discusses overestimation in Nova Scotia's Demand Side Management (DSM) programs, particularly in Residential Direct Install (RDI) and Home Energy Assessment (HEA). Customer preferences for lighting measures led to lower energy savings and costs in RDI and Rental Properties programs. HEA faced lower participation due to provincial funding cuts and capacity issues. EfficiencyOne's planning assumptions and external factors like funding changes impacted program outcomes.

Custom Incentives With a total underspend of $8.08 million, the Custom Incentives program is the largest contributor to the overall underspending during 2016-2018. The program customer participation rate was lower than planned. Annual Prog...

AI summary The Custom Incentives program had a total underspend of $8.08 million from 2016 to 2018, primarily due to low customer participation rates caused by project delays and fewer project leads than expected. EfficiencyOne noted that the program's activities are client-driven and varied, leading to significant underspending beyond mid-course adjustment estimates.

7.1.1 Development of the Plan The 2013-2015 DSM Resource Plan was filed by ENSC on February 27, 2012. Per the Plan, "To aid in the preparation of the 2013-2015 DSM Plan, ENSC retained the advice and assistance of Navigant, Dunsky Energy Co...

AI summary The 2013-2015 DSM Resource Plan was filed by ENSC in 2012, using limited historical data and external consultants. Audited financial data were not finalized at filing. The DCRR was used for funding until replaced by the Efficiency Nova Scotia franchise in 2015.

Management identified that approximately $2.1 million of the variance was related to programs. Of this $2.1 million, EfficiencyOne identified that approximately $2 million was related to incentive cost. In 2013 there were variances in each...

AI summary The text discusses program variances, particularly in incentive costs and energy savings, with a focus on the Low Income Homeowner and BNI Direct Install programs. EfficiencyOne identified significant underspending in 2013, while energy savings exceeded targets due to successful programs like Instant Savings and Residential Direct Install. The 2014 DSM Resource Plan was adjusted based on NSUARB directives.

Appendix A Scope and approach

AI summary The appendix outlines the scope and approach of the regulatory proceeding, involving entities such as Nova Scotia Power Inc. and the Nova Scotia Utility and Review Board. Key focus areas include demand-side management programs, cost recovery mechanisms, and efficiency initiatives.

2016-2018 Enabling Strategies – approach by EfficiencyOne The level of investment for the 2016-2018 Enabling Strategies was informed by the 2014 actual spending level. The Enabling Strategies costs are not part of the modelling process. Ef...

AI summary EfficiencyOne's 2016-2018 Enabling Strategies investment was based on 2014 spending levels, adjusted for new initiatives and DSM Resource Plan development costs. The NSUARB mandated 14%-18% annual reductions in Enabling Strategies while preserving energy savings targets. The 2016-2018 DSM Resource Plan Compliance Filing incorporated these reductions.

2020-2022 incentive costs and customer participation – model input approach by EfficiencyOne The total incentive costs included in the Plan investment are the result of the incentive cost and the customer participation rates by measure. Pe...

AI summary EfficiencyOne outlines its approach to calculating 2020-2022 incentive costs and customer participation rates for Nova Scotia's DSM Resource Plan, using historical data and the Incentive Setting Process (ISP) mandated by the NSUARB. Adjustments were made via staff reviews and third-party consultations, with iterative model updates to refine participation rates and ensure alignment with cost thresholds.

2020-2022 Enabling Strategies – approach by EfficiencyOne Similar to the 2016-2018 and 2019 DSM Resource Plans, EfficiencyOne identified that the Enabling Strategies investment for the 2020-2022 DSM Resource Plan was informed by historical...

AI summary EfficiencyOne's 2020-2022 Enabling Strategies investment relied on historical spending rather than modeling. Increased investment linked to new initiatives like pilot programs, technology research, and demand response. Higher 2021-2022 costs are projected due to preparations for the 2023-2025 DSM Resource Plan.

Composition Membership in the DSMAG is intended to be representative of key stakeholder interests on matters relevant to DSM. Membership of the DSMAG consists of, but is not limited to, a representative from each of the following: - E1; -...

AI summary The DSMAG comprises stakeholders including E1, NS Power, consumer advocates, and industry representatives. Membership is open to organizations with DSM interests. NS Power has a specific role due to its utility status, contractual obligations, and responsibility for collecting DSM funds. Collaboration between E1 and NS Power is emphasized for transparency and timely input to the DSMAG.

ver, the extent of the future impact on the Company's finances and cash flow are unknown at this time and largely dependent on future developments, including the duration and severity of the pandemic. Given the level of uncertainty NS Powe...

AI summary NS Power and E1 request to defer $2M of 2021 DSM investment to 2022 due to pandemic-related financial uncertainty, maintaining total payments and savings over three years. The Board approves the adjustment, noting E1's reduced 2020 expenditures due to COVID-19.

The figure below identifies the Contract Price to be paid by NSPI allocated for each year of the Term. 2020 2021 2022 Total UARB Approved Investment Amount $34,400,000 $34,600,000 $41,000,000 $110,000,000 2016 – 2018 DSM Plan Underspend ($...

AI summary The text outlines the Contract Price to be paid by NSPI for each year of the Term, including approved investments and a net amount to be paid. It also mentions that any surplus realized by EfficiencyOne must be reported to the UARB and refunded to NSPI unless otherwise directed.

Composition Membership in the DSMAG is intended to be representative of key stakeholder interests on matters relevant to DSM. Membership of the DSMAG consists of, but is not limited to, a representative from each of the following: - E1; -...

AI summary The DSMAG includes diverse stakeholders such as consumer advocates, industry representatives, and NS Power. NS Power has a specific role due to its contractual obligations and responsibility for collecting DSM funds. E1 retains sole discretion in approving new members, ensuring balanced participation in DSM discussions.