HomeCost RecoveryM12588Evidence
Topic/Matter Intersection

Topic:"Cost Recovery" in M12588

Matter: Nova Scotia Power Inc. - CI C0053699 – Renewable to Retail Implementation - $5,644,468
65 passages 17 documents

Cost Recovery across all matters →

N-2NSPI (CA) RIR 1 to 4 1 passage
1 Request IR-1: p. p. 17
1 Request IR-1: 5 ratepayers. 6 7 (a) Has the licensee provided any financial security to guarantee recovery of any portion 8 of project costs? 9 10 (b) Please provide a forecast of cost recovery for project costs assuming Renewall's 11 cu...

AI summary The proceeding addresses cost recovery for project costs related to the RtR implementation, including financial security, forecast recovery, potential shortfalls, and cost distribution among customer classes. It also considers the implications if the RtR market fails to launch.

N-3NSPI (NSEB) RIR 1 to 15 - Redacted 2 passages
NON-CONFIDENTIAL p. p. 10
NON-CONFIDENTIAL 1 interim and manual business processes to achieve a state of readiness which would support 2 REI in its plan to initiate small-scale operations through the purchase of third-party 3 renewable energy outside of their own i...

AI summary NS Power paused technical work on a project to support REI's small-scale renewable energy operations and shifted focus to scalable business processes and technology solutions. A capital application was delayed due to evolving project scope and ongoing efforts to address cost recovery mechanisms for NS Power's expenditures, including a related regulatory proceeding (Matter M11874).

Active Submissions p. p. 23
Active Submissions Total A - Technical Evaluation A-1 - Adherence to RFP requirements A-2 - Ongoing support availability and service levels A-3 - Speed and efficiency of implementation (or project) plan, availability, and delivery the indu...

AI summary The text discusses the Finance Business Analyst's role in designing mechanisms to segregate costs between NS Power and the RtR line of business, enabling post-go-live tracking of potential annual or cost recovery amounts.

N-4NSPI (REI) RIR 1 to 22 4 passages
p. p. 13
1 Request IR-3: 2 3 Reference: N-1, C0053699 Renewable to Retail Implementation Project, page 1 of 6. 4 5 Cost recovery for capital expenditures and operating costs associated with the 6 initial setup and ongoing operation will be recovere...

AI summary The document outlines a request for information regarding the cost recovery framework for the Renewable to Retail (RTR) Implementation Project, specifically focusing on capital expenditures and operating costs associated with the project, and how these costs will be recovered from Licensed Retail Suppliers (LRSs) through the Annually Adjusted Rates (AAR) process starting in 2026.

Interest to be p. p. 16
Interest to be compounded Beginning Balance Additional costs deferred (001.180450.000.0000.000.000.0000.000) 786,053 786,053 786,053 786,053 786,053 786,053 786,053 786,053 786,053 786,053 786,053 786,053 (185.50) 785,867 785,867 785,867 7...

AI summary The document presents a financial table showing the beginning balance, additional costs deferred, ending balance prior to interest recovery, compounded interest, and total including compounded interest. The values remain consistent across multiple columns, indicating a structured approach to financial calculations and interest recovery.

Date Filed: March 3, 2026 NSPI (REI) IR-13 Page 3 of 3 p. p. 36
Date Filed: March 3, 2026 NSPI (REI) IR-13 Page 3 of 3 1 Request IR-14: D.27 Business Process & Procedure Development Team has finalized process and procedure documentation from a Role Based perspective. Business Leads have all signed off...

AI summary The document outlines several tasks related to the final stages of a project, including the completion of business process documentation, technical development, and testing. These tasks are currently at various stages of completion, with some already finalized and others not yet started.

5.4 PDF Attachment p. p. 56
5.4 PDF Attachment # Section Name Description Data Type Format Example Required PDF Attachment PDF Copy of Form Copy of the signed PDF with the customer action request Document Upload PDF only PDF only Yes 1 Request IR-18: 2 3 Please confi...

AI summary The document includes a request and response regarding NSPI's recovery of regulatory hearing costs and a reference to a matter number related to the vintage of the Customer Information System. The response indicates that NSPI has historically sought recovery of these costs incrementally, but this approach may need reconsideration as the RtR framework evolves.

N-5NSPI (SBA) RIR 1 to 3 2 passages
1 Request IR-1: p. p. 6
1 Request IR-1: 2 3 Refer to M12588, Exhibit N-1, the Renewable to Retail (RtR) Implementation Project 4 submitted by NS Power (the "Application"). Regarding the variance between the previously 5 filed cost estimates and those updated, ple...

AI summary The document discusses a request (IR-1) related to a variance in cost estimates for the Renewable to Retail (RtR) Implementation Project submitted by NS Power. The request asks for a breakdown of the variance, reasons for increased costs, and mitigation steps. NS Power responds that due to a cyber incident, they cannot provide the requested comparison and note that the original estimate was developed over a year ago without sufficient detail.

1 was approved by the LRS in May 2025. NS Power has continued to maintain a monthly p. p. 6
1 was approved by the LRS in May 2025. NS Power has continued to maintain a monthly 5 6 (a) Will the recovery period align with the 10-year depreciation life? If not, please explain 7 why. 8 9 (b) Considering the prospect for future growth...

AI summary The text outlines questions and responses related to the recovery period for costs in the Renewable to Retail (RtR) market, alignment with depreciation life, and risk mitigation strategies for customer termination before capital recovery. NS Power responds that the recovery period has not been determined and that cost recovery will consider market development factors and potential collection methods from Licensed Retail Suppliers (LRSs).

102536Decision 13 passages
Preamble p. p. 2
- [1] On December 1, 2025, Nova Scotia Power Incorporated asked the Nova Scotia Energy Board to approve a capital project to develop and implement updates and enhancements to existing software solutions to facilitate the "renewable to reta...

AI summary Nova Scotia Power Incorporated requested approval for a capital project to update software and business processes to support the renewable to retail market. The project, costing $5.6 million, was deemed necessary by the Board despite concerns about cost recovery and transparency. Renewall Energy Inc. raised some concerns, but the Board found them speculative and approved the project.

2.2.1 Project Costs p. p. 8
2.2.1 Project Costs [20] In February 2023, NS Power began work on the project that is the subject of this application. More than three quarters of the forecast costs for the project had already been incurred by NS Power by the time it file...

AI summary NS Power began work on a project in February 2023 and filed an application in December 2025, by which time over three-quarters of the project's costs had been incurred. The project's estimated cost increased from $2.8 million in 2023 to $5.6 million in 2026 due to evolving project scope and delays in seeking Board approval. The project was included in multiple Annual Capital Expenditure (ACE) Plans.

[26] The projected cost is broken down as noted in the following table (which is a summary the Board prepared from a more detailed breakdown that NS Power provided in Exhibit N-1, p. 4 of 6): p. p. 8
[26] The projected cost is broken down as noted in the following table (which is a summary the Board prepared from a more detailed breakdown that NS Power provided in Exhibit N-1, p. 4 of 6): Cost Category Subcategory Dollars Dollars Labou...

AI summary The text provides a detailed breakdown of projected costs for a project, including categories such as labour, software, contracts, consulting, and contingency. The costs are further divided by year, with actuals and estimates to complete for each category.

3.2.1 Cost Transparency p. p. 17
3.2.1 Cost Transparency [46] In closing submissions, the Small Business Advocate noted that the costs identified in this application represented a $581,816 increase from the estimated cost that NS Power included in its 2025 ACE Plan. The S...

AI summary The Small Business Advocate highlights a $581,816 increase in costs from the 2025 ACE Plan, noting NS Power's inability to reconcile the changes. NS Power attributes the increase to project delays and administrative overhead, while the Advocate recommends standardized reporting for cost impacts. NS Power provided year-by-year cost details but not driver-level estimates.

3.2.2 Delay Costs p. pp. 19-22
3.2.2 Delay Costs [60] Renewall noted NS Power's evidence that costs relating to delays due to changing commercial operation dates accounted for nearly $1,000,000 of the proposed project costs. NS Power said approximately $460,000 in delay...

AI summary Renewall criticized NS Power for insufficient detail on delay costs, inability to reconcile costs due to a cyber-attack, and failure to consider pausing the project earlier. It also pointed out that AFUDC and administrative overhead costs were 15% of project costs, with no project-specific reconciliation provided.

[63] NS Power argued: p. p. 22
[63] NS Power argued: The [renewable to retail] implementation is a complex and non-standard undertaking, involving the development of new systems, processes, and integrations to support an emerging market and a retail supplier with a deve...

AI summary NS Power argues that the renewable to retail implementation is complex and non-standard, making it difficult to isolate delay-related costs with precision. It asserts that delays were tied to Renewall's changing commercial operation dates and that there is no evidence to support disallowing these costs.

3.2.6.1 Findings p. pp. 30-31
3.2.6.1 Findings [90] Once again, the Board believes it would be inappropriate to predetermine this issue. If rework is needed, despite NS Power's assurances, whether the costs for that should be borne by the renewable to retail market, NS...

AI summary The Board finds it inappropriate to predetermine the issue of cost allocation for rework, suggesting that the responsibility should be determined based on the specific circumstances when these costs arise.

3.2.7 Stranded Costs from Market Evolution p. p. 31
3.2.7 Stranded Costs from Market Evolution [91] Renewall submitted that if the Nova Scotia Independent Energy System Operator (IESO Nova Scotia) assumes the administration of the renewable to retail market, it is unclear whether assets dev...

AI summary Renewall expressed concern that a potential transfer of assets to IESO Nova Scotia could lead to stranded costs due to market structure changes. NS Power acknowledged the uncertainty but stated that the regulatory framework would prevent duplicate cost recovery.

3.3.2 Annual Certification p. p. 33
3.3.2 Annual Certification [98] As the (currently) sole licensed retail supplier and party responsible for the payment of costs arising from the approval of the proposed capital project, Renewall submitted that NS Power should be required...

AI summary Renewall proposed that NS Power must file annual certifications to ensure renewable to retail project assets are used appropriately and prevent cost misallocation. NS Power countered that such processes are unnecessary as project costs are tracked separately and subject to Board review in the Annually Adjusted Rates process.

3.3.2.1 Findings p. pp. 33-34
3.3.2.1 Findings [100] Given the development of markets and market complexity in Nova Scotia, the Board shares Renewall's concern. If the cost of this capital project is being charged to the renewable to retail market, then any future use...

AI summary The Board agrees with Renewall's concern regarding the allocation of costs for a capital project in Nova Scotia's renewable to retail market. It directs NS Power to start an annual certification process to ensure proper cost allocation and recovery, beginning after Renewall's first customer sale and continuing until costs are fully recovered.

3.4 Cost Recovery p. p. 34
3.4 Cost Recovery [101] The Small Business Advocate also expressed concern about a level of uncertainty around the recovery of these costs from the renewable to retail market. This concern was shared by the Consumer Advocate who noted that...

AI summary The Small Business Advocate and Consumer Advocate raised concerns about the uncertainty of cost recovery from the renewable to retail market, with the latter attributing cost variances to Renewall. Renewall argued that costs should not be tied to a 10-year depreciation life but to actual market use. NS Power plans to propose a cost recovery methodology in its 2027 Annually Adjusted Rates application.

3.4.1 Findings p. pp. 34-35
3.4.1 Findings [104] The issues relating to cost recovery are matters for a future Board proceeding. As NS Power noted in this matter, the Nova Scotia Utility and Review Board initially contemplated these issues would be addressed in Annua...

AI summary The Board notes that cost recovery for the renewable to retail market should be addressed in a future proceeding. While the Annually Adjusted Rates process was initially considered, the Board is concerned about its appropriateness due to the complexity of the issues involved. If new mechanisms or tariff language are needed, a separate process may be required.

4.0 SUMMARY OF BOARD FINDINGS p. pp. 35-37
4.0 SUMMARY OF BOARD FINDINGS [107] The Board finds the proposed project is necessary and approves the proposed cost of $5,644,468. [108] The Board also directs NS Power to begin the annual certification process confirming that assets fund...

AI summary The Board approves a $5,644,468 project and requires NS Power to annually certify that project assets are used solely for renewable to retail purposes. Certification must begin after Renewall's first customer sale and continue until project costs are recovered or further directed by the Board.

100709SBA (NSPI) IR 1 to 3 - PDF 2 passages
Preamble
Refer to M12588, Exhibit N-1, the Renewable to Retail (RtR) Implementation Project submitted by NS Power (the "Application"). Regarding the variance between the previously filed cost estimates and those updated, please answer the following...

AI summary The document requests detailed explanations regarding variances in cost estimates for the Renewable to Retail (RtR) Implementation Project submitted by NS Power. It specifically asks for a breakdown of the $581,816 variance, the impact of Commercial Operation Date (COD) delays, and mitigation steps taken. Additional questions focus on program management and administrative overhead costs.

Request IR-3:
Request IR-3: Refer to M12588, Exhibit N-1, Page 1 of 6, regarding the recovery of RtR costs over time, please answer the following questions: a) Will the recovery period align with the 10-year depreciation life? If not, please explain why...

AI summary The document requests responses regarding the recovery of RtR costs, alignment with depreciation life, cost structure for future LRSs, and risk mitigation for customer termination before capital recovery.

100710SBA (NSPI) IR 1 to 3 - Word 2 passages
Section 1
M12588 NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: The Public Utilities Act, R.S.N.S. 1989, c.380, as amended IN THE MATTER OF: An application by NOVA SCOTIA POWER INCORPORATED for approval of CI C0053699 Renewable to Retail Implementation...

AI summary The Nova Scotia Energy Board has issued information requests to NS Power regarding the Renewable to Retail Implementation Project, focusing on cost variances, delays, and mitigation steps. The request includes detailed questions about cost breakdowns and administrative overhead.

Section 2
l estimate. 5. What steps did NS Power perform to mitigate cost increases? Referring to M12588, Exhibit N-1, Page 4 of 6, the Capital Project Detailed Estimate, please answer the following questions: 1. Program Manager appears across multi...

AI summary The text includes questions about NS Power's mitigation of cost increases, the role of the Program Manager in capital projects, administrative overhead costs, and the recovery of RtR costs over time, including alignment with depreciation life and risk mitigation for customer participation.

100717NSEB (NSPI) IR 1 to 15 - PDF 1 passage
Request IR-9:
Request IR-9: - Please explain how the systems are made scalable and the associated costs of that scalability. - a) Please explain why a scalable system is required. - b) Does NS Power intend to fully recoup the cost of the scalable system...

AI summary The request seeks clarification on the scalability of systems, the rationale for scalability, and whether NS Power intends to recover associated costs from a single LRS or spread them across multiple LRS as the market expands.

100720REI (NSPI) IR 1 to 22 - PDF 4 passages
1 2026 M12588
1 2026 M12588 2 3 NOVA SCOTIA ENERGY BOARD 4 IN THE MATTER OF: The Public Utilities Act 5 6 7 IN THE MATTER OF: An Application by Nova Scotia Power Incorporated for approval of CI C0053699 Renewable to Retail Implementation $5,644,468 8 9...

AI summary The Nova Scotia Energy Board is handling an application by Nova Scotia Power Incorporated for approval of a Renewable to Retail Implementation Project. Renewall Energy Inc. has submitted information requests regarding the project team, detailed requirements, customer transition mechanisms, and cost recovery processes.

30 (a) Please confirm whether NSPI intends to recover all the RtR Implementation 31 Project costs incurred under capital application C0053699 through the AAR
30 (a) Please confirm whether NSPI intends to recover all the RtR Implementation 31 Project costs incurred under capital application C0053699 through the AAR 1 process. 2 3 (b) If any portion of the costs will not be recovered through the...

AI summary The text requests confirmation on whether NSPI intends to recover all costs from the RtR Implementation 31 Project through the AAR, and if not, how these costs will be recovered. It also asks for details on the cost recovery framework, legacy costs, and the timing of the first AAR filing.

1 RtR implementation scope and cost estimate;
23 Please confirm whether NSPI is seeking recovery of its own regulatory hearing costs (internal and 24 external legal, consulting, expert witness costs) associated with this RtR capital application and 25 other RtR applications? 1 RtR imp...

AI summary The text discusses the implementation scope and cost estimate of the Renewable to Retail (RtR) project, including questions about regulatory hearing costs, changes in assumptions due to a cybersecurity incident, and coordination with the CIS Replacement project. It also requests documentation on project planning and cost adjustments due to changes in the project's completion date.

27
27 1 Request IR-19: 20 21 22 23 (c) Please advise whether NSPI has conducted any analysis estimating what portion of the $5.6M project cost might be avoided or reduced if NSPI had a modern, cloud-native CIS platform, and if so, please prov...

AI summary The text outlines several requests and references related to a regulatory proceeding, including an inquiry about potential cost savings from a modern CIS platform, an explanation for an increase in AFUDC, and questions regarding AO rates and their application. It also references prior proceedings and documents.

100721REI (NSPI) IR 1 to 22 - Word 3 passages
Section 4
d validation rules supporting each transition; and 4. Customer communication and notification protocols. Reference: N-1, C0053699 Renewable to Retail Implementation Project, page 1 of 6 . Cost recovery for capital expenditures and operatin...

AI summary The document discusses cost recovery for the Renewable to Retail Implementation Project, including the recovery of capital and operating costs through the Annually Adjusted Rates (AAR) process starting in 2026. Questions are raised regarding the scope of cost recovery, legacy costs, and the framework for allocating costs to LRSs.

Section 5
oes NSPI intend to account for variances between the approved amount and actual amounts incurred? Please explain. Reference : N-1, C0053699 Renewable to Retail Implementation Project, page 1 of 6. LRSs and their customers are responsible f...

AI summary The document asks NSPI about its approach to accounting for variances between approved and actual costs in the Renewable to Retail (RtR) Implementation Project. It also requests details on controls and accounting rules to ensure only incremental costs are included and how broader benefits from software enhancements are allocated.

Section 8
ses, risk registers, and scope/interface management protocols, particularly following the cybersecurity incident. Reference : N-1, C0053699 Renewable to Retail Implementation Project, page 2 of 6. Implementation began in 2023… based on… CO...

AI summary The text discusses the Renewable to Retail Implementation Project, highlighting delays in the COD (Completion of Development) and the associated rework and cost increases. It references the 2025 ACE Plan and the need for NSPI to re-baseline scope and spend to minimize costs recoverable from the LRS.

100722CA (NSPI) IR 1 to 4 - PDF 1 passage
5 Request IR-2:
5 Request IR-2: 6 7 Please confirm under the Board's decision in M11874, if the RtR market fails, NS Power would 8 expect to recover the outstanding balance of costs associated with this project from its ratepayers. 9 10 (a) Has the licens...

AI summary The request seeks clarification on cost recovery for a project under the Board's decision in M11874, including financial security, recovery forecasts, potential shortfalls, and customer class breakdowns. It also asks how project assets would meet the 'used and useful' test if the RtR market fails.

100723CA (NSPI) IR 1 to 4 - Word 1 passage
Section 1
M12588 NOVA SCOTIA UTILITY AND REVIEW BOARD IN THE MATTER OF: The Public Utilities Act – and – IN THE MATTER OF: An application by NOVA SCOTIA POWER INCORPORATED for approval of CI C0053699 Renewable to Retail Implementation $5,644,468 INF...

AI summary The Consumer Advocate has submitted information requests to NS Power regarding the Renewable to Retail (RtR) implementation project. The requests focus on financial security, cost recovery forecasts, customer participation assumptions, and the usefulness of project assets if the RtR market fails to launch.

101268Submission - SBA 3 passages
Comments p. p. 0
Comments The Small Business Advocate's (SBA) review of this Application is focused on cost transparency and the proposed cost recovery approach, both of which are summarized below.

AI summary The Small Business Advocate reviews the Application, focusing on cost transparency and the proposed cost recovery approach.

Cost Transparency p. p. 0
Cost Transparency The SBA submitted Information Requests in order to identify the $581,816 variance from the estimate in the 2025 ACE plan by cost driver. However, in response, NS Power stated that it cannot provide that information due to...

AI summary The SBA requested information on a $581,816 variance in the 2025 ACE plan but was denied by NS Power due to a 2025 cyber incident and lack of detailed cost breakdowns. NS Power cited delayed commercial operations and cost mitigation efforts, but the SBA argues for better cost transparency and standardized reporting.

Submissions p. p. 0
Submissions In conclusion, the SBA respectfully submits that the Board should consider the remaining gaps in cost transparency and undefined elements of the cost recovery approach. Ensuring that project cost variance are measured, time-rel...

AI summary The SBA submits that the Board should address gaps in cost transparency and undefined elements of the cost recovery approach. It emphasizes the need to measure project cost variances, document time-related impacts, and establish resource mechanisms to protect ratepayers in the RtR framework.

101269Submission - CA 1 passage
Submissions p. pp. 0-1
Submissions The Consumer Advocate has reviewed the Application, as well as NS Power's responses to all Information Requests. The Consumer Advocate has also reviewed the Small Business Advocate's submissions, which were filed with the Board...

AI summary The Consumer Advocate reviewed NS Power's Application and the Small Business Advocate's submissions, agreeing with concerns about cost recovery. The variance of $581,816 is attributed to increased administrative overheads and project timeline adjustments due to the LRS' revised COD dates. The Consumer Advocate is concerned about potential cost recovery issues if the LRS is unsuccessful in bearing these costs.

101270Submission - REI 7 passages
ISSUES p. p. 0
ISSUES REI identifies the following issues for the Board's consideration: - 1. Whether NSPI has demonstrated the prudency of the costs claimed in the Application, including costs arising from project delays; - 2. Whether the Application co...

AI summary REI presents four key issues for the Board's consideration, including the prudency of NSPI's costs, compliance with CEJC, adequacy of cost recovery evidence, and sufficiency of the proposed reporting framework and approval conditions.

2) Capital Expenditure Justification Criteria — Specific Cost Challenges p. p. 2
2) Capital Expenditure Justification Criteria — Specific Cost Challenges The CEJC requires NSPI to examine alternatives, to demonstrate least-cost options that meet requirements and to compare acquisition approaches (build vs. buy vs. conf...

AI summary The CEJC requires NSPI to evaluate alternatives for IT projects like Project CI C0053699, ensuring least-cost options are considered. However, NSPI's evidence lacks alternative analysis, cost-minimizing sequencing, and assessment of lower-cost vendor services. REI argues that specific cost components do not meet CEJC standards and should be reduced or disallowed.

b) Scalability Costs p. pp. 3-4
b) Scalability Costs NSPI claims that scalability costs are "low and not considered material", that "the MDMS architecture is such that additional computational capability can be added in the future, if required, when additional customers...

AI summary NSPI claims scalability costs are low and not material, stating additional computational capability can be added if needed. However, REI argues that without evidence or analysis, the Board cannot determine if these costs are embedded in the MDMS project figures, and recommends disallowing recovery unless NSPI provides documentation confirming no scalability costs are included.

c) CIS Replacement p. p. 4
c) CIS Replacement NSPI plans a CIS Replacement filing in Q3 2026 – CI C0021835. NSPI asserts that CIS RtR changes constitute core functionality and configuration that will carry forward to any future CIS replacement without incremental co...

AI summary NSPI plans to file a CIS Replacement in Q3 2026, asserting that changes to RtR functionality will carry forward without incremental cost. REI accepts this in principle but notes the lack of a migration or dependency plan. The Board is recommended to require NSPI to attest that any rebuild or remapping costs are not charged to REI.

3) Cost Recovery Methodology p. pp. 4-5
3) Cost Recovery Methodology Section 22(2) (previously 3G(2)) of the Electricity Act is the statutory foundation for cost recovery in the RtR program. In responding to IRs, NSPI was unable to provide any clarity on any of: - The cost recov...

AI summary The document discusses the cost recovery methodology for the RtR program under the Electricity Act, highlighting NSPI's inability to clarify key aspects such as cost recovery mechanisms and allocation methodologies. REI argues against tying recovery to a fixed depreciation schedule and emphasizes the need for a methodology based on actual market use. NSPI outlines two scenarios for asset ownership and cost recovery, but uncertainty remains regarding future market developments and their impact on REI's customers.

b) Cost Allocation Safeguards and Protection for REI and Non-RtR Ratepayers p. p. 6
b) Cost Allocation Safeguards and Protection for REI and Non-RtR Ratepayers As the sole LRS and direct payer of the costs approved under this proceeding, REI requires regulatory safeguards ensuring that amounts charged to it are prudent, i...

AI summary REI requests regulatory safeguards to ensure costs allocated to it are prudent and exclusive to RtR implementation, protecting non-RtR ratepayers. Proposed conditions include annual certification, a true-up mechanism, a scalability costing protocol, and a ring-fence for CIS Replacement costs.

CONCLUSION AND RELIEF SOUGHT p. p. 6
CONCLUSION AND RELIEF SOUGHT REI respectfully submits that the Board: - 1. Disallow or reduce delay related costs where NSPI has failed to demonstrate that such costs were prudent, unavoidable, or attributable to REI. - 2. Direct NSPI to p...

AI summary REI requests the Board to disallow or reduce various costs incurred by NSPI, including delay-related, cyber-recovery, and software development costs, and to impose conditions on cost recovery and data readiness. REI also seeks a CIS Replacement ring fence and a true-up mechanism to prevent misallocation of costs.

101449NS Power's Reply to Intervenor Submissions 6 passages
Cost Recovery p. p. 0
Cost Recovery The CA notes that the Application identifies a cost variance of $581,816, which NS Power attributes primarily to the need to ramp up project resources a second time as a result of changes to the Licensed Retail Supplier's (LR...

AI summary The CA notes a cost variance of $581,816 attributed to actions by the LRS, including changes to COD and increased costs. The CA is concerned about the risk of incomplete cost recovery if the LRS fails. The Board's decision in M11874 supports recovery through RtR tariffs, with NS Power planning to implement this in the 2027 AAR filing.

Cost Transparency p. pp. 0-1
Cost Transparency The SBA notes that, in response to IRs seeking additional detail on project cost changes, NS Power advised that a detailed variance analysis by cost driver could not be provided due to the impacts of the 2025 cyber incide...

AI summary The SBA highlights concerns regarding NS Power's inability to provide a detailed variance analysis due to the 2025 cyber incident and the lack of detailed original ACE Plan estimates. The SBA suggests greater transparency in indirect costs and standardized reporting for schedule changes. NS Power explains that cost increases were primarily due to delayed COD and implemented mitigation measures, but acknowledges the lack of detailed original estimates. NS Power argues that existing processes already provide sufficient reporting on cost and schedule impacts.

Prudence and Support for Delay Related Costs p. pp. 2-3
Prudence and Support for Delay Related Costs REI submits that NS Power did not provide a detailed breakdown of delay related cost increases by labour type or task, advised that original estimates could not be 4 M11874 Decision, page 5. 5 I...

AI summary REI argues that NS Power did not provide a detailed breakdown of delay-related cost increases, did not attribute responsibility for delays, and did not pause costs as recommended. REI recommends the Board reduce or disallow these costs due to lack of prudence, causation, and incrementality.

MDMS Scalability and Cost Allocation p. p. 3
MDMS Scalability and Cost Allocation REI notes NS Power's evidence that scalability costs under this project are immaterial and not included to support future LRSs and that any future scalability requirements would be addressed and allocat...

AI summary REI argues that NS Power's claims about MDMS scalability costs being immaterial lack supporting evidence and recommends disallowing certain costs unless NS Power provides documentation. NS Power counters that the project's scope was appropriately scaled to support RtR operations without unnecessary cost exposure and that any future scalability needs would be addressed in a regulatory proceeding.

Cost Recovery Methodology for RtR Implementation p. p. 3
Cost Recovery Methodology for RtR Implementation REI submits that NS Power has not yet provided clarity on the RtR cost recovery approach, including the recovery mechanism, allocation to future LRSs, which implementation costs would appear...

AI summary REI argues that NS Power has not provided sufficient clarity on the cost recovery approach for the RtR implementation, including how costs will be allocated to future LRSs and recovered through future AAR filings. REI also highlights the need to avoid redundant or stranded costs due to potential market structure changes. NS Power acknowledges uncertainty but asserts that the final recovery mechanism will be determined in the 2027 AAR proceedings.

Proposed Reporting and Approval Conditions p. p. 3
esses, including system testing, training, business readiness confirmation, and internal approvals prior to proceeding to go-live. NS Power anticipates following these same processes for this project. As outlined in REI IR-16 and REI IR-21...

AI summary NS Power is following established processes for project implementation, including collaboration with REI and LRS. Demonstrations, testing, and training have been conducted to ensure readiness. NS Power asserts that existing mechanisms address prudence, incrementality, and cost segregation, making additional certifications unnecessary.

102536Decision 12 passages
[26] The projected cost is broken down as noted in the following table (which is a summary the Board prepared from a more detailed breakdown that NS Power provided in Exhibit N-1, p. 4 of 6): p. p. 8
[26] The projected cost is broken down as noted in the following table (which is a summary the Board prepared from a more detailed breakdown that NS Power provided in Exhibit N-1, p. 4 of 6): Cost Category Subcategory Dollars Dollars Labou...

AI summary The text presents a detailed breakdown of projected costs for a project, categorized into labour, software, contracts, consulting, contingency, and administrative overhead. The costs are further broken down by year, showing actuals and estimates to complete, with a total projected cost of $5,644,469.

3.2.1 Cost Transparency p. p. 17
3.2.1 Cost Transparency [46] In closing submissions, the Small Business Advocate noted that the costs identified in this application represented a $581,816 increase from the estimated cost that NS Power included in its 2025 ACE Plan. The S...

AI summary The Small Business Advocate pointed out a $581,816 increase in costs from the 2025 ACE Plan, noting NS Power could not reconcile the changes. NS Power attributed the increase to delays and administrative overhead, but the Advocate called for more detailed cost impact analysis. NS Power provided year-by-year cost data but could not reconcile at a driver level.

3.2.2 Delay Costs p. pp. 19-22
3.2.2 Delay Costs [60] Renewall noted NS Power's evidence that costs relating to delays due to changing commercial operation dates accounted for nearly $1,000,000 of the proposed project costs. NS Power said approximately $460,000 in delay...

AI summary Renewall criticizes NS Power for providing insufficient detail on delay costs related to project delays, including labor and task impacts, and for failing to reconcile costs due to a cyber-attack. Renewall also questions the prudence of delay costs and whether NS Power considered pausing the project earlier. Additionally, Renewall notes that AFUDC and administrative overhead costs make up 15% of project costs, but NS Power did not provide detailed reconciliation schedules.

[63] NS Power argued: p. p. 22
[63] NS Power argued: The [renewable to retail] implementation is a complex and non-standard undertaking, involving the development of new systems, processes, and integrations to support an emerging market and a retail supplier with a deve...

AI summary NS Power argues that the renewable to retail implementation is complex and non-standard, leading to delay-related costs that cannot be isolated with the same precision as in conventional projects. NS Power asserts that these costs are justified and that Renewall has not provided evidence to support their disallowance.

3.2.2.1 Findings p. pp. 22-23
3.2.2.1 Findings [65] The Board finds it entirely reasonable that the shifting business plans and commercial operation dates anticipated by Renewall would have posed challenges for NS Power's management of the project and increased costs....

AI summary The Board finds that Renewall's claims about delays and costs in the project are speculative and insufficient to challenge NS Power's incurred costs. NS Power's actions were reasonable in managing the project, and the delay in pausing the project was due to ongoing work. Renewall agreed to pause the project due to a deferred commercial operation date.

3.2.6 Customer Information System Replacement Project p. pp. 29-30
3.2.6 Customer Information System Replacement Project [88] Renewall noted that NS Power plans to replace its Customer Information System and expressed concern about the potential for rework associated with any of the development undertaken...

AI summary Renewall expressed concern about potential rework in NS Power's Customer Information System replacement project, urging the Board to require an attestation that no renewable to retail functionality is rebuilt or remapped. NS Power stated that core functionality, including renewable to retail features, is typically included in future upgrades and does not anticipate incremental rebuilding.

3.2.7 Stranded Costs from Market Evolution p. p. 31
3.2.7 Stranded Costs from Market Evolution [91] Renewall submitted that if the Nova Scotia Independent Energy System Operator (IESO Nova Scotia) assumes the administration of the renewable to retail market, it is unclear whether assets dev...

AI summary Renewall expressed concern that a potential transfer of assets from NS Power to IESO Nova Scotia could lead to stranded or redundant costs, requesting the Board to confirm no duplication of costs would occur. NS Power acknowledged the possibility of evolving cost recovery approaches but emphasized that the regulatory framework prevents duplicate recovery of the same costs.

3.3.2 Annual Certification p. p. 33
3.3.2 Annual Certification [98] As the (currently) sole licensed retail supplier and party responsible for the payment of costs arising from the approval of the proposed capital project, Renewall submitted that NS Power should be required...

AI summary Renewall requests that NS Power file an annual certification to ensure project assets are used solely for renewable to retail purposes and that no costs are misallocated. NS Power argues such processes are unnecessary as costs are tracked separately and subject to Board review.

3.3.2.1 Findings p. pp. 33-34
3.3.2.1 Findings [100] Given the development of markets and market complexity in Nova Scotia, the Board shares Renewall's concern. If the cost of this capital project is being charged to the renewable to retail market, then any future use...

AI summary The Board agrees with Renewall's concerns regarding the allocation of costs for a capital project in Nova Scotia's renewable to retail market. It directs NS Power to start an annual certification process to ensure proper cost allocation and recovery, beginning after Renewall's first customer sale and continuing annually.

3.4 Cost Recovery p. p. 34
3.4 Cost Recovery [101] The Small Business Advocate also expressed concern about a level of uncertainty around the recovery of these costs from the renewable to retail market. This concern was shared by the Consumer Advocate who noted that...

AI summary The Small Business Advocate and Consumer Advocate raised concerns about cost recovery from the renewable to retail market, attributing variances to Renewall. Renewall argued that costs should not be tied to a 10-year depreciation life but to actual market use. NS Power plans to propose its cost recovery methodology in its 2027 Annually Adjusted Rates application.

3.4.1 Findings p. pp. 34-35
3.4.1 Findings [104] The issues relating to cost recovery are matters for a future Board proceeding. As NS Power noted in this matter, the Nova Scotia Utility and Review Board initially contemplated these issues would be addressed in Annua...

AI summary The Board notes that cost recovery issues for renewable to retail market implementation costs should be addressed in future proceedings. While initially planned for Annually Adjusted Rates proceedings, concerns about the appropriateness of this forum have been raised due to the complexity of the issues involved.

4.0 SUMMARY OF BOARD FINDINGS p. pp. 35-37
4.0 SUMMARY OF BOARD FINDINGS [107] The Board finds the proposed project is necessary and approves the proposed cost of $5,644,468. [108] The Board also directs NS Power to begin the annual certification process confirming that assets fund...

AI summary The Board approves a proposed project with a cost of $5,644,468, finding it necessary. It also directs NS Power to begin an annual certification process for assets funded through the project, ensuring they are used solely for renewable to retail purposes until the project costs are fully recovered.

Disclaimer: These summaries were generated by AI from the filings they describe. We take care to make them accurate, but errors are possible - and they aren't advice. Only the filings themselves are the record: if you're relying on something here, confirm it against the source documents or the Nova Scotia Energy Board's own record. Full disclaimer →