N-52024-2025 Bates White FAM Audit Report - Redacted
13 passages
I.B. The Fuel Adjustment Mechanism The FAM is the cost recovery mechanism by which NSPI recovers the cost of fuel and purchased power from its customers. According to NSPI, the cost of fuel and purchased power is its largest expense in pro...
AI summary The Fuel Adjustment Mechanism (FAM) is used by NSPI to recover fuel and purchased power costs from customers. Over the audit period, NSPI incurred significant costs, and the FAM includes components like the Base Cost of Fuel (BCF), Actual Adjustment (AA), and Balancing Adjustment (BA) to ensure accurate cost recovery from ratepayers.
XV – ELIADC Conclusion XV-2: ELIADC benefits as reported in the ELIADC annual reports are largely composed of the mandatory contribution to fixed costs. ( Recommendation XV-1 ) Recommendation XV-1: In the 2026 ELIADC annual report and all...
AI summary The document discusses issues with the ELIADC tariff, including the mischaracterization of mandatory fixed cost contributions as benefits, penalties for schedule deviations, and flaws in ADC benefit calculations. Recommendations include revising reporting practices, adjusting penalties, and modifying ADC benefit calculations to account for forecast and actual load and fuel price differences.
ng the "first day of the first month following delivery of the last Car" would be April 1, 2025. That would set the 90-day trial period as ending June 30, 2025; however, in the post-trial period lease, the term for these 30 cars began May...
AI summary NSPI faced an incremental cost due to an early access to 30 railcars, which resulted in paying for two months of lease costs. NSPI explained that early testing allowed avoiding adverse impacts on coal deliveries. The decision to scrap 53 railcars was deemed reasonable based on a condition assessment and cost estimate.
FAM Cost of Point Tupper Marine Terminal, International Pier and Capital Projects All fuel handling costs at the International Pier and Point Tupper Marine Terminal are recovered through the FAM. During the Audit Period, FAM-recoverable fu...
AI summary The document discusses the Fuel and Materials (FAM) recovery of fuel handling costs at the International Pier and Point Tupper Marine Terminal, showing significant decreases in costs during the Audit Period. NSPI is responsible for capital expenditures at these terminals, which are recovered through fixed cost recovery in rates. Inspection and next steps reports highlight infrastructure conditions and potential future capital costs.
ith this event should be paid by PHP, rather than NSPI, given PHP's roles and responsibilities under its operations and maintenance services agreement for PHB. PHP is required under this agreement to: Respond in a commercially reasonable m...
AI summary The document discusses the responsibility for handling a biomass fuel fire event at the PHB facility. It outlines PHP's obligations under its operations and maintenance services agreement to manage hot spots and cooperate with NSPI in expeditiously removing hot biomass fuel. NSPI defended passing the associated costs to FAM customers, arguing that the scope of the event exceeded routine response efforts.
The TCPL and PNGTS Open Seasons In July and August of 2025, TCPL and PNGTS issued coordinating Open Seasons for new FT capacity on their respective systems.320 The TCPL open season invited prospective shippers to bid on up to MMBtu/day of...
AI summary In 2025, TCPL and PNGTS launched coordinated open seasons for new FT capacity. NSPI modeled the economic implications of this opportunity, considering factors like generation capacity, gas prices, and pipeline costs. The analysis concluded that the increased costs of additional pipeline capacity make bidding unwise, with future open seasons to be evaluated using updated assumptions.
re caused by testing and commissioning activities on the Labrador Island Link.655 The Acceleration Agreement further stated that the first contract year of the EAA would begin on September 1, 2022.656 In the 2020-2021 audit period, portion...
AI summary The text discusses the background of transactions over the Maritime Link, including the Acceleration Agreement and its impact on the NS Block and Surplus Energy. It references audit reports and the Board's review of cost recovery applications and the prudence of the Acceleration Agreement.
XII.B.3.c. NSPML The Maritime Link is owned by NSPML, a wholly-owned subsidiary of Emera and an affiliate of NSPI. Recovery of Maritime Link costs were subject to Board-approved annual assessments. Revenue of up to $163.5 million and $197....
AI summary NSPML, a subsidiary of Emera, is subject to revenue holdbacks until certain conditions are met. NSPML applied to end the holdback mechanism in M12696. In 2024 and 2025, NSPML received approved revenue amounts, and NSPI reported cost reductions related to the Maritime Link and FAM balance. Financial details and applications are discussed in various matters and decisions.
Our third recommendation read: Recommendation XII-3: NSPI should continue its efforts to accurately value the missing and makeup NS Block energy volumes. NSPI should maintain its existing reporting to the Board but should enhance that repo...
AI summary The third recommendation urges NSPI to continue valuing missing and makeup NS Block energy volumes using the Hourly Replacement Method and enhance reporting. NSPI accepted the recommendation and plans to complete the valuation for Bates White review. The fourth recommendation suggests NSPI consider the long-term capacity value of undelivered NS Block energy from NLH, conservatively estimated at the carrying cost of Lingan 2.
XIV.B.9. FAM Model Calculation – Weighted Average Cost of Capital and Interest Rates related to recoveries of Actual Fuel and Purchase Power Costs BDO's review and testing of the FAM model calculation for 4 months during the audit period i...
AI summary BDO conducted a four-month review and testing of the FAM model calculation, verifying inputs related to weighted average cost of capital and interest rates for fuel and purchased power cost recoveries. No errors or inconsistencies were found, and the model was concluded to be accurate.
CBLA The Customer Baseline Adder is a charge to PHP "to contribute to the reduction of the cost of service to other NS Power customers."821 It is determined relative to a reference rate specified in the tariff, which has been $61.75/MWh in...
AI summary The Customer Baseline Adder (CBLA) is a charge applied to PHP to offset the cost of service for other NS Power customers. It is calculated based on a reference rate of $61.75/MWh. When the CBL Energy Charge is below this rate, the CBLA is calculated as 75% of the difference plus $1/MWh. When it is above, the CBLA is set at $1/MWh. From March 2024 onward, the CBLA was $1/MWh, while it was higher in previous years.
due to the inability of the PortOps model to converge, - iii. Calculation of costs/benefits would be highly dependent on assumptions, if load rebalancing post deviation is required for the analysis, - iv. Costs associated with the initial...
AI summary The document discusses challenges in calculating costs and benefits related to load rebalancing and dispatch decisions due to limitations in the PortOps model and lack of logged deviation data. It also highlights the inability to quantify load shifting benefits for real-time ADC and the potential for net costs from real-time load deviations.
XV.D. Recommendations Recommendation XV-1: In the 2026 ELIADC annual report and all future reports, NSPI should report the amounts collected under the $4/MWh (or any other) mandatory contribution to fixed costs, but should not characterize...
AI summary The recommendations focus on improving reporting and cost allocation practices related to the ELIADC and PHP. They include changes to how fixed costs are reported, modifications to ADC benefits, real-time deviation reporting, and adjustments to the calculation of Cause Code 5 penalties.