E-12022 Rate and Bill Impact Analysis
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nvestment is beneficial for customers as a whole; while the RBIA looks more closely at the worst-case scenario (a non-participant in each rate class) to see how much higher their bills are due to DSM. From the time E1 filed the 2019 RBIA i...
AI summary The document outlines revisions to the Regulated Business Investment Application (RBIA) over multiple years, emphasizing stakeholder engagement, removal of cost allocation, and integration of avoided carbon costs and demand response. DSM program participants experience varying bill reductions, with the 2022 RBIA incorporating new factors for accurate rate impact analysis.
ure it served its required purposes. It has been further revised several times since then, based on feedback from past filings and discussions with the DSMAG. DATE FILED: 31 October 2022 Page 6 of 40 National Efficiency Screening Project (...
AI summary The document outlines revisions to a model based on DSMAG feedback, references NESP and the National Standard Practice Manual, details sections on model enhancements, framework, results, and appendices including sensitivity analysis and methodology from NS Power. E1's RBIA model is included as an attachment.
3.3 TIME PERIOD DEFINITIONS - In this analysis, - The DSM delivery period is the timeframe over which DSM programs are delivered. The DSM delivery period is 2011-2025. - The cost recovery period is the timeframe over which DSM program cost...
AI summary The document defines three time periods: DSM delivery (2011-2025), cost recovery (2011-2025 with 2015 costs deferred and amortized over eight years), and study (2011-2039). These periods govern DSM program delivery, cost recovery, and impact modeling, respectively.
025) then it's likely the rate and bill impact results would improve because there are more up-front costs required in the early years related to recruiting customers and bringing new capacity online. Within the NS Power Rate Model, demand...
AI summary The text explains how demand response data is integrated into the NS Power Rate Model, affecting cost scenarios and revenue requirements. It details the inclusion of demand response costs and savings in specific tabs, and how different scenarios (e.g., 'No DSM') alter the 'COSS DSM Simulated' tab's calculations. The RBIA Model uses these scenarios to compare revenue impacts.
Figure 2: Average Rate Impacts (2011-2039) as a Result of DSM Activities in 2011-2025 - [Figure 3](#page-29-0) illustrates the annual rate effects (difference between the no-DSM scenario and the DSM - scenario for each year), assuming that...
AI summary Figure 2 and Figure 3 analyze average rate impacts from 2011-2039 due to DSM activities, highlighting that annual rate changes are influenced by DSM cost recovery and avoided cost fluctuations. The annual impacts in Figure 3 are clarified as not reflecting actual customer rate changes experienced.
Figure 3: Annual Rate Impacts as a Result of DSM Activities in 2011-2025 NS Power's RBIA Pricing Methodology (Appendix E) discusses the generic COSS results, including why there are different rate impacts over time and why rate impacts dif...
AI summary The document discusses the impact of Demand Side Management (DSM) activities on annual rates from 2011 to 2025. It explains how different rate classes experience varying benefits from DSM, with those bearing higher fuel costs seeing greater savings. The analysis also highlights methodological simplifications, such as assuming uniform measure lifespans, which may not reflect real-world variability.
5. CONCLUSION - Highlights from the 2022 RBIA analysis include: - Over the 29 years of the study period, participants in DSM programs see average annual bill reductions ranging from a low of 1.9 percent (typical Municipal participant) to a...
AI summary The 2022 RBIA analysis highlights significant electricity bill savings for Nova Scotian ratepayers due to DSM programs, with non-participants experiencing mixed rate impacts. Collaboration with DSMAG and NS Power enhanced RBIA models, incorporating demand response and carbon avoidance. Over 29 years, DSM programs reduced bills by 1.9–10.2% for participants, while rate pressures ranged from 0.2–3.1%.
2022 Rate and Bill Impact Analysis
AI summary The 2022 Rate and Bill Impact Analysis document outlines regulatory proceedings related to utility rate structures and customer bill impacts. Key focus areas include demand-side management, cost of service studies, and regulated business investment applications, with references to various programs and initiatives aimed at energy efficiency and carbon emission reductions.
Appendix B: Results by Rate Class Line# Rate and Bill Impacts of DSM on the Small Industrial Class 1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 203...
AI summary This table presents the results of Demand Side Management (DSM) programs for the Small Industrial Rate Class from 2011 to 2039, including incremental and cumulative DSM savings, expenditures, number of participants, and the levelized cost of saved energy. The data indicates fluctuating trends in savings and costs over time.
Appendix D: Assumptions
AI summary Appendix D outlines key assumptions for a Nova Scotia regulatory proceeding, referencing acronyms related to energy management, cost studies, and regulatory applications. It provides context for terms like DSM, COSS, and RBIA, which are central to the proceeding's analysis.
1.0. Introduction In an effort to more precisely and accurately align EfficiencyOne's (E1) RBIA Model with the methodological process used by NS Power in setting of its base cost rates, all rate setting functionality from E1's RBIA model h...
AI summary EfficiencyOne's (E1) RBIA model has had its rate-setting functionality removed, with NS Power now using its COSS methodology. NS Power will provide annual inputs to E1's RBIA model under 'With DSM' and 'No DSM' scenarios from 2011 to 2035, including revenue forecasts, demand forecasts, and customer data. NS Power assumes responsibility for cost allocation methods and data inputs.
2.0. Background The regulated base cost rate setting process involves the following three sequential analytical steps: - Determination of total annual revenue requirement; - COSS concerned with apportionment of total costs among rate class...
AI summary The regulated base cost rate setting process involves three steps: determining total annual revenue requirement, conducting a Cost of Service Study (COSS) to apportion costs among rate classes, and setting class rates and revenue responsibilities. The document was filed on 31 October 2022, page 3 of 16.
Revenue Requirement Ordinarily, the base cost rate setting process used in rate case applications requires a great amount of detailed cost inputs to determine revenue requirement. Annual rate base data needs to be collected on a variety of...
AI summary The Revenue Requirement for the RBIA focuses on DSM Program impacts, avoiding detailed cost analysis. Unlike standard rate cases, RBIA only considers DSM-induced avoided costs, keeping other factors constant. This simplifies the process by omitting detailed inputs like plant-in-service or operating expenses.
Rates and Revenues There is little that can be inferred about the cost causation process from the rate structures used by the utility to generate customers' bills. The rates are bundled and therefore do not allow tracking of cost recovery...
AI summary NS Power's bundled rate structures prevent tracking cost recovery by generation, transmission, and distribution. Residential and small general classes recover demand costs via energy charges, while other classes use a mix of demand and energy charges. Misalignment exists between revenues and costs for classes with customer or demand charges, as noted in the COSS.
Conclusions Bypassing the detailed COSS ratemaking step, which is intended to show how DSM-induced, cost causative changes in usage affects rates will produce misleading results and create difficulties in interpretation. Any such rate anal...
AI summary Bypassing the detailed COSS ratemaking process leads to misleading rate analyses by failing to account for reallocation of embedded system costs due to DSM-induced usage changes. A simplified COSS approach would provide clearer insights into how DSM affects class-specific costs and rates.
3.2 Cost of Service Studies Cost of service Studies consist of an application of the following three sequential steps: - functionalization of revenue requirement to the four areas: generation, transmission, distribution and retail; - class...
AI summary The Cost of Service Study (COSS) involves three steps: functionalizing revenue requirements across four areas, classifying costs by energy/demand/customer, and apportioning costs among rate classes. Most costs are shared by all customers, except streetlight fixture costs, which are assigned exclusively to unmetered streetlight customers.
3.2.1 Functionalization of System Costs As indicated in the Revenue Requirement section above, NS Power has used the test year revenue requirements, already functionalized by the four areas, from the historic rate cases. In the "With DSM"...
AI summary NS Power calculates revenue requirements by functionalizing system costs, adjusting for load changes and inflation. In the 'With DSM' scenario, FAM-related costs are modified for load changes and inflation, while non-FAM costs remain flat. The 'No DSM' case adjusts revenue requirements for load differences due to absent DSM. True-up adjustments, like Maritime Link depreciation, slightly affect cost comparisons between scenarios.
3.2.2 Classification of System Costs Costs within each area are classified into appropriate services. Generation and transmission costs are classified into energy and demand. Distribution costs are classified between demand and customer. R...
AI summary System costs are classified into energy, demand, and customer categories. Generation costs split between energy (baseload, non-dispatchable) and demand (peaking units). Transmission costs align with system load factors. Distribution and retail costs remain static except for inflation. NS Power uses a linear equation to estimate generation cost classification for RBIA, based on simulated 2014 COSS data.
3.2.3 Allocation of Costs to Rate Classes Annual cost requirements within each service of each functional area are apportioned to rate classes based on class share in the underlying usage both in the "With DSM" and "No DSM" case.
AI summary Annual costs are allocated to rate classes based on usage in both 'With DSM' and 'No DSM' scenarios, reflecting class share in underlying usage for each service and functional area.
FAM-related Costs The FAM-related costs are allocated to rate classes using the following two-step process: Annual class energy usage is multiplied by the benchmark unit cost $/MWh Date Filed: 31 October 2022 Page 7 of 16 - o In the "With...
AI summary FAM-related costs are allocated using a two-step process involving benchmark unit costs from 'With DSM' and 'No DSM' cases, scaled to match annual FAM revenue. The method does not differentiate between energy- and demand-related costs, a limitation NS Power acknowledges due to outdated models. Demand-related costs now account for 15% of FAM total, necessitating future RBIA updates.
Non-FAM related Costs The non-FAM-related costs are allocated to rate classes using the following two-step process: - Annual class usages of energy and demand services are multiplied by benchmark $/MWh and $/MW unit costs, respectively - o...
AI summary Non-FAM-related costs are allocated to rate classes via a two-step process. Annual class usages are multiplied by benchmark costs from 'With DSM' and 'No DSM' scenarios, then scaled to align with revenue requirements for each service.
DSM Costs The annual DSM-related costs incurred by individual rate classes, as provided by E1, are apportioned to rate classes based on the 25/75 rule. 75 percent of the costs incurred by each class is treated as direct responsibility of e...
AI summary DSM costs are allocated to rate classes using a 25/75 rule, with 75% directly assigned to each class and 25% distributed based on energy and demand usage. Energy costs are apportioned by system generation share, while demand costs use winter peak load factors.
3.2.4 Generic COSS Results The actual results from the above cost allocation process under the "With DSM" and "No DSM" scenarios are presented in the "COSS Outputs" tab within NS Power's rate model, where the long-term trends in annual rel...
AI summary The Generic COSS Results analyze cost allocation trends under 'With DSM' and 'No DSM' scenarios, showing higher unit cost increases in historic periods due to DSM program recovery and declining differentials in later years as DSM measures expire. Large industrial classes benefit more from DSM due to fuel cost reductions, while domestic classes face greater fixed infrastructure cost impacts.
3.3 Unit Revenue Determination For the directional purposes of the RBIA model, it is not considered necessary to develop annual rates with all charges under the "With DSM" and "No DSM" cases. Rather, it is sufficient for NS Power to provid...
AI summary NS Power is using a simplified approach for the RBIA model, providing blended revenues without certain charges for Residential and Small General rate classes. Excluded factors like fuel cost true-ups and smoothing of rates are deemed to have no material effect on the comparison between 'With DSM' and 'No DSM' cases.
Overview of Spreadsheet Calculations
AI summary The document provides an overview of spreadsheet calculations used in a Nova Scotia regulatory proceeding, likely related to energy efficiency programs, cost studies, and demand-side management initiatives. Key entities include regulatory bodies, efficiency programs, and technical acronyms relevant to electricity generation and distribution.
"COSS Data Inputs" tab This tab includes all annual test year class usage and embedded costs from the COSS and BCF COSS filed in GRA and BCF proceedings as well as a forecast of annual usage by class per the most recent ten-year Load Forec...
AI summary The 'COSS Data Inputs' tab compiles annual test year usage and embedded costs from COSS and BCF COSS filings in GRA and BCF proceedings, along with a ten-year Load Forecast Report and DSM expenditures by rate class. These data are used to calculate class unit costs and revenues.
Savings in energy and demand usage by rate class Savings in energy and demand usage arising from DSM programs for each class are tracked in the following class tabs: R-Savings, SG-Savings, G-Savings, LG-savings, SI-Savings, MI-Savings, LI-...
AI summary The document outlines a methodology for tracking energy and demand savings from DSM programs across eight rate classes (R-Savings, SG-Savings, etc.) from 2011 to 2022. Annual savings are calculated using E1's RBIA Reports and adjusted for transmission losses based on COSS data. This approach converts generator-level metrics to customer-metered usage.
Changes in total Revenue Requirement
AI summary Analysis of changes in total revenue requirement, focusing on cost of service studies (COSS) and regulated business investment applications (RBIA). Key considerations include demand-side management (DSM), efficiency programs, and regulatory proceedings impacting Nova Scotia's energy sector.
Cost of Service Studies Apportionment of costs to rate classes is done separately for the "With DSM" and "No DSM" cases" in the tabs bearing the same names.
AI summary The document describes the separate apportionment of costs to rate classes under 'With DSM' and 'No DSM' scenarios, as organized in tabs with corresponding names.
"With DSM" tab The "With DSM" tab provides annual cost allocation to rate classes based on long-term usage as included in NS Power's most recent Annual ten-year Load Forecast Report. This usage already reflects inclusion of DSM Program eff...
AI summary The 'With DSM' tab outlines annual cost allocation to rate classes based on NS Power's load forecast, incorporating DSM Program effects. FAM costs are adjusted from 2023-2035 using a two-step process involving blended unit costs and scaling to match total FAM costs, calculated via a formula considering previous year costs and energy requirement changes.
Comments The applied process is a simplification of a more elaborate cost allocation process from the COSS where some FAM costs, such as fuel costs, are allocated to rate classes based on their shares in monthly energy requirements; some o...
AI summary The document outlines a simplified cost allocation process for Fixed Allocation Method (FAM) costs, referencing the Cost of Service Study (COSS). Costs are allocated based on energy requirements, system load factors, and coincident peaks. Relative class unit costs from 2022 are carried forward, and non-FAM costs are adjusted for inflation in future years.
"No DSM" tab The "No DSM" tab provides annual cost allocation to rate classes absent DSM. The FAM-related costs in years 2011–2035 are calculated using the following process: - Annual FAM costs for each class are calculated by multiplying...
AI summary The 'No DSM' tab calculates annual costs without Demand Side Management (DSM) by using FAM costs, scaling them across rate classes, and applying a formula involving the 'With DSM' case and energy requirement deltas. The process includes pre- and post-external effect adjustments and references the 'Total' column in the 'After External Effect' table.
"COSS Var" tab "COSS Var" provides differentials between cell values in the "No DSM" and "With DSM" tabs. Please note that the data layouts in the "No DSM" and "With DSM" tabs are identical with the exception for the treatment of DSM costs...
AI summary The 'COSS Var' tab compares data between 'No DSM' and 'With DSM' scenarios in a Cost of Service Study. The layouts are identical except for DSM cost exclusions in the 'No DSM' case, highlighting differences in cost calculations under varying demand-side management approaches.
"COSS Outputs" tab The "COSS Outputs" tab provides two sets of bar graphs of percentage change in class rates due to DSM over the period 2011–2035 calculated as either arithmetic or load-weighted rate changes. The graphs within each set ar...
AI summary The 'COSS Outputs' tab presents bar graphs analyzing percentage changes in class rates due to Demand Side Management (DSM) from 2011–2035, using arithmetic or load-weighted methods. It breaks down effects on unit base cost revenues and includes a control panel to test inflation and avoided cost scenarios on unit costs and revenues.