Topic:"Cost Recovery" in M12600

9.0 INCIDENT COST TREATMENT NSP notes it activated its incident response and business continuity protocols, engaging both internal and external experts to support efforts on containment, eradication and remediation of the threat.[84](#page...

AI summary NSP has incurred costs related to a security breach and is isolating these costs through separate project codes. While some costs, such as credit monitoring, may be covered by insurance, it is unclear whether other costs will be passed on to customers. Recommendations suggest that NSP should not recover these costs from customers and isolate future insurance premium increases related to the incident.

Weather Risk A Material Adverse Effect may arise from weather seasonal variations impacting energy consumption, as well as severe weather events, changing air temperatures, wildfires and other severe weather conditions that are expected to...

AI summary The document discusses how weather-related risks, including seasonal variations, severe weather events, and climate change impacts, can affect energy consumption, infrastructure, and financial stability. These risks may lead to reduced revenues, increased costs, and potential Material Adverse Effects if not mitigated through insurance or regulatory processes.

General Economic Risk The Company has exposure to the macro-economic conditions in Nova Scotia. Like most utilities, economic factors such as consumer income, employment and housing affect demand for electricity, and in turn the Company's...

AI summary The Company faces economic risks influenced by Nova Scotia's macroeconomic conditions, including impacts on customer affordability of rate increases and potential challenges in recovering costs and regulatory assets due to adverse economic changes and inflation.

Commodity Price Risk The Company's fuel supply is subject to commodity price risk. The Company's fuel supply is exposed to broader global market conditions, which may include impacts on delivery reliability and price, despite contracted te...

AI summary The Company's fuel supply is subject to commodity price risk due to global market conditions, including currency fluctuations, geopolitical risks, and supply disruptions. NSPI aims to hedge 50-100% of fuel costs for 2026 and 50-90% for 2027, adjusting as needed to maintain fuel cost stability and minimize transaction costs.

Fuel Adjustment Mechanism As identified in the Second Monthly Update Report, Fuel Adjustment Mechanism (FAM) related matters have been affected by the Incident. The Company has commenced preparations for the 2024/2025 FAM Audit. Significan...

AI summary The Fuel Adjustment Mechanism (FAM) has been impacted by an Incident, leading to preparations for the 2024/2025 FAM Audit. Progress has been made in recovering data and systems, though some areas remain under remediation. The Company is working to provide alternative data sets to validate fuel cost management prudence.

Incident Impact and Response Financial Enterprise Resource Planning NS Power continues to advance the restoration of key financial enterprise resource planning capabilities necessary to support normal business operations. With respect to w...

AI summary NS Power is working to restore financial enterprise resource planning capabilities affected by a cyber event. Progress has been made in reducing the invoice backlog, and preparations are underway for the restoration of additional financial management functions to support stable operations.

M12600 Nova Scotia Energy Board 1 (ii) the number of customers receiving estimated rather than actual bills in each month 2 from May 2025 to April 2026; 3 (iii) the total number of customers who may have been overcharged as a result of 4 e...

AI summary The document requests information on billing practices and the financial impact of a cyber attack on NSP, including the number of customers affected and the basis for cost recovery through regulated rates, given NSP's inadequate preparedness.

IR G-4 — Cost Recovery and Ratepayer Implications - (a) Identify all costs associated with the Attack and its remediation that NSP intends to seek to - recover through regulated rates, including: - (i) the total quantum of costs to be soug...

AI summary The document outlines the need for Nova Scotia Power (NSP) to identify and justify the costs associated with a cyber attack and its remediation for recovery through regulated rates. It also asks NSP to explain whether ratepayers should bear these costs, considering NSP's prior knowledge of risks, gaps in cybersecurity planning, and the availability of threat intelligence. Additionally, it requests information on cybersecurity insurance held by NSP.

Financial Enterprise Resource Planning Foundational financial operations continue to operate in a stable manner, supporting core business functions and reporting requirements. Deployment milestones have been achieved for key financial capa...

AI summary Financial operations are stable, with key milestones achieved in financial capabilities. Integration, control validation, and audit readiness are ongoing. Recovery prioritizes accuracy and compliance. Aged receivables have decreased significantly since the cyber incident, and the backlog has been largely resolved, trending toward pre-cyber levels.

The Requested Disbursements Are Not Reasonably Necessary Cost awards against NS Power are recovered through rates and are therefore ultimately borne by ratepayers. Any award must reflect costs that are reasonably and necessarily incurred t...

AI summary NS Power argues that the requested disbursements by Mr. MacLeod are not reasonably necessary, as they were incurred voluntarily for in-person attendance at a hearing, which could have been conducted virtually as per the Hearing Order. NS Power requests the Board to deny the request for pre-approved intervenor costs.

A. NSP's Position NSP submits that my request for travel and accommodation disbursements is unreasonable because the Hearing Order permits virtual participation. B. The Cost Rules Expressly Contemplate Travel/Accommodation Disbursements Se...

AI summary NSP argues that travel and accommodation disbursements are unreasonable due to the Hearing Order allowing virtual participation. However, the Cost Rules permit such disbursements regardless of virtual participation. NSP emphasizes that in-person attendance enhances the quality of participation, particularly in technical proceedings.

INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS 1 again, if you have a specific cost in mind ––– 2 Q. Right. 3 A. (Williams) ––– or a type of cost, 4 I'm having to have the discussion. But I'm not entirely 5 clear on what you mean....

AI summary The discussion revolves around the incremental costs of delaying a capital project and whether costs from a cybersecurity attack above what is currently embedded in rates would be recoverable from ratepayers. The witness suggests that such costs would be evaluated in a future capital application.

1 costs is only something you would embark on if you're even 2 in a position to be at 925 and 40. Otherwise they're just 3 to the expense of the utility and the shareholder. 4 There's no potential for it to incur costs on behalf of 5 custo...

AI summary The discussion revolves around the financial implications of cost recovery for utilities, considering scenarios where costs are incurred by the utility and shareholders. It touches on potential prudence issues and how overearnings and calculations may impact these costs.

NOVA SCOTIA POWER PANEL 611 Questions, (Chair) 1 levels in terms of invoice payments? 16 9.25 and 40 band, then would money be returned to 17 customers. And in my mind, sir, that's a hypothetical 18 that I don't know that I'm in a position...

AI summary The discussion revolves around the treatment of capital costs in Nova Scotia Power's filings, with the utility clarifying that these costs have been incurred and will not be passed on to customers. The conversation includes references to CA-6 and the handling of costs in the context of regulatory proceedings.

Chair. 1 CROSS-EXAMINATION BY MS. RUDDERHAM 1 revenue requirement based on what they say are their all 2 in costs for this event. 3 Q. So when you say, "All in costs," 4 are you saying that the only costs associated are in 5 relation to ge...

AI summary The proceeding involves cross-examination regarding the definition of 'all in costs' associated with a cybersecurity incident, including the distinction between direct and indirect costs. The witness acknowledges a lack of sufficient information to determine indirect costs and confirms attendance at prior proceedings, including the Industrial Group's cross-examination of the NSPI panel.