Topic:"Cost Recovery" in M12743

costs are recovered over a fixed period that aligns with the expected service life. NS Power said the existing PAM systems will not be retired from NS Power's accounts until they are fully amortized. The CA and SBA questioned if some of th...

AI summary Intervenors raised concerns about the allocation of project costs related to a cybersecurity incident, questioning if delays caused increased AFUDC costs. NS Power defended the costs, stating work continued and delays were due to task reorganization. The CA recommended adjusting contingency reserves, but NS Power disagreed, citing the complexity of remaining work.

pected service life in addition to the depreciation defined useful life. Further, depreciation issues are ordinarily and best addressed in depreciation studies accompanying a general rate application. The Board has considered the factors o...

AI summary The Board approved a $6,756,522 cybersecurity project to mitigate risks following the 2025 cybersecurity incident, which impacted NS Power's business and customer service operations. The cost was deemed reasonable and economically justified.

after the final work concludes in October 2026? Provide a justification for keeping the capital order open for this duration and the anticipated nature of the costs to be incurred during this period. IR-5. Table A.4 shows a Net Total Cost...

AI summary The text includes questions regarding the duration of a capital order, the cost-benefit analysis of outsourced security services versus in-house solutions, and the details of annual savings from prior managed services. These questions pertain to financial planning, cost-effectiveness, and program implementation.

22 Request IR-2: 23 24 Please explain why this project is needed in addition to CI 409094. If any investments made under 25 CI 409094 are being made redundant or being decommissioned as a result of this project, please 26 provide a full fi...

AI summary The request seeks clarification on the necessity of the project alongside CI 409094 and requires financial details about investments made under CI 409094, including their expected life, amortization, and unamortized balances at decommissioning.

arly in the project alternative review process. Just four years later – and only two to three years after the PAM projects' assets were placed in service – NS Power issued the RFP for the IAM project. Given the circumstances identified abo...

AI summary The Consumer Advocate raises concerns about NS Power's decision to pursue the PAM project, suggesting that SaaS could have been a more reasonable option at the time. Additionally, concerns are raised regarding the proposed amortization accounting for PAM assets and whether it aligns with NS Power's accounting policies.

Impact of Cybersecurity Incident on Project AFUDC Costs: NS Power states, "The cyber incident caused changes to the project schedule but did not cause a project cost increase."[17](#page-4-0) The Consumer Advocate questions the accuracy of...

AI summary NS Power claims a cybersecurity incident did not increase project costs, but the Consumer Advocate argues that delays caused by the incident likely increased AFUDC interest costs. The Advocate suggests disallowing AFUDC costs from April 2025 through March 2026 for the IAM project due to delays attributed to the cybersecurity incident.

1. Complexity and Value: It is apparent from the list of tools to be installed that this Application should help to prevent unauthorized access to NS Power's critical customer and data information systems. This application was first identi...

AI summary The document discusses the complexity and value of a cybersecurity application proposed by NS Power, questioning whether the investment is justified given the potential impact of the 2025 cyber breach and whether the proposed measures are sufficient to prevent future breaches.

costs are recovered over a fixed period that aligns with the expected service life. NS Power said the existing PAM systems will not be retired from NS Power's accounts until they are fully amortized. The CA and SBA questioned if some of th...

AI summary Intervenors raised concerns about the alignment of cost recovery periods with asset service life and questioned whether cybersecurity incidents contributed to project delays and increased AFUDC costs. NS Power defended the timing of delays and explained that incremental costs were due to design changes and task reorganization, not extended inactivity.

pected service life in addition to the depreciation defined useful life. Further, depreciation issues are ordinarily and best addressed in depreciation studies accompanying a general rate application. The Board has considered the factors o...

AI summary The Board approved a $6,756,522 cybersecurity project to mitigate risks following the 2025 incident, which impacted NS Power's business and customer service operations. The project was deemed reasonable and economically justified to prevent potential secondary impacts on competition, innovation, and sustainable development.