Topic:"Cost Recovery" in M12898

NON-CONFIDENTIAL 1 (d) NS Power ensures that D055 costs are minimized through its asset management approach 2 which evaluates both condition and criticality to determine the risk of different asset groups 3 and provides priorities for the...

AI summary NS Power outlines its approach to minimizing D055 costs through asset management, competitive procurement, and efficient scheduling practices. The company uses engineered standards, historical data, and field supervision to ensure cost-effective solutions and efficient execution of work orders.

ver the same period. In addition, the CA noted that a particular concern is the $8 million year-over-year increase in Bin Work costs, resulting in a total increase of more than 300% in just two years. The CA suggested that the Board could...

AI summary The Consumer Advocate (CA) raised concerns about the $8 million increase in Bin Work costs and suggested reducing ATO cost recovery and improving reporting transparency. NS Power acknowledged some information gaps due to a 2025 cyber incident but is working to enhance its reporting capabilities.

ower cannot currently commit to a timeline for fully enhanced workorder-level reporting, it intends to provide progress updates in future ACE Plan applications regarding the status of this initiative. Furthermore, NS Power stated that the...

AI summary NS Power cannot commit to a timeline for enhanced workorder-level reporting but will provide updates in future ACE Plan applications. It asserts that cost management for D055 is handled through established processes and that controls remain in place despite a cyber incident affecting detailed reporting. Increased workforce capacity and reduced new customer work are cited as factors influencing overtime utilization.

asset replacements by type. NS Power is actively developing enhanced tracking for 2026 to capture spending associated with specific feeder-level projects identified in the Five-Year Reliability Plan. The Board acknowledges NS Power's comme...

AI summary The Board acknowledges NS Power's efforts in managing costs through procurement and oversight but notes a gap in evidence provided. It approves an ATO for D055 routine spending to improve reliability but requires a detailed breakdown in the 2027 ACE Plan, including cost categories, work descriptions, and cost-benefit analysis.

e operating region; and a cost- benefit analysis comparing the total cost of having the work performed by external contractors with the estimated cost of completing the work using internal resources. Furthermore, the Board recognizes that...

AI summary The Board acknowledges NS Power's efforts to enhance tracking and reporting of distribution-routine spending and requires the submission of a timeline for this initiative in the 2027 ACE Plan, including specific data categories identified by the Consumer Advocate.

Commercial Information Items 1-2: Partial confidentiality was applied to costs associated with materials, contracts and freight details provided in the capital work order(s). To protect value for customers and mitigate the risk of prospect...

AI summary NS Power argues that maintaining confidentiality for specific supplier costs and contract details is essential to protect customer interests, prevent competitive disadvantages, and ensure the best pricing and terms for acquiring services and equipment.

6 Request IR-2: 7 (a) Please provide a workbook in native format with a breakdown of project actual costs by 8 account compared to budget for all distribution routines for 2025. 9 10 (b) Please provide a table with the following actual cos...

AI summary The request asks for detailed cost breakdowns and explanations regarding overtime labour usage in various distribution routines. It seeks data on actual costs compared to budgets and reasons for overtime use, as well as any indirect cost effects from reassignments.

Submissions The Consumer Advocate has reviewed the materials filed in this matter, including NS Power's Application and responses to Information Requests, and makes the following submissions. (a) Sufficiency of Information Provided On revi...

AI summary The Consumer Advocate raises concerns about the insufficient data provided by NS Power in support of its Application, particularly regarding cost and contract details for distribution routines. NS Power has not collected or provided detailed information on contractors, expenditures, or external factors affecting costs, making it difficult to assess the reasonableness of its $8.6 million request for D055. NS Power claims it is improving data collection and reporting in 2026.

(b) Cost Minimization In M12319, the CA expressed concerns "as to whether NS Power has maintained effective cost minimization practices" for capital distribution routines.[6](#page-3-2) The Consumer Advocate's submission provided several e...

AI summary The Consumer Advocate raised concerns about NS Power's cost minimization practices in capital distribution routines, citing a lack of data on cost-effectiveness comparisons between NS Power and contractors. NS Power responded by highlighting its efforts to increase field resources and reduce overtime costs through recruitment, but the CA argues that insufficient data makes it unclear whether the reduction in overtime costs represents actual cost savings.

(d) Conclusion For all of the foregoing reasons, the CA submits that NS Power has not provided substantial evidence to justify its spending on distribution routines, and specifically: - NS Power is unable to provide evidence as to which co...

AI summary The Consumer Advocate (CA) argues that NS Power has not provided sufficient evidence to justify its spending on distribution routines, citing missing contractor details, inadequate cost-effectiveness explanations, and significant cost increases. The CA recommends a reduction in cost recovery and suggests revising NS Power's reporting practices.

tem-generated reporting could not be readily reconciled or extracted for regulatory reporting purposes in 2025. NS Power expects that it will be able to provide this information for 2026 if requested. As explained in response to CA IR-3(b)...

AI summary NS Power acknowledges challenges in providing detailed labour and cost information for D055 work and field-driven work due to system limitations and the complexity of the work involved. It expects to improve reporting capabilities in the future, though a timeline cannot be committed to at this time.

3.4 Recommendations The CA submits that, in light of the overspend and its concerns regarding the information available to assess the expenditures incurred under D055 and NS Power's cost minimization practices, the Board may wish to consid...

AI summary The Commissioner of the Environment and Sustainable Resource Development (CA) recommends a reduction in cost recovery due to overspending and concerns about NS Power's cost minimization practices. NS Power opposes this, citing increased expenditures due to condition-driven replacement work and asserts that its spending was prudent and in line with asset management practices. NS Power also notes that routine-level spending is already reported through existing processes.

ver the same period. In addition, the CA noted that a particular concern is the $8 million year-over-year increase in Bin Work costs, resulting in a total increase of more than 300% in just two years. The CA suggested that the Board could...

AI summary The Consumer Advocate (CA) raised concerns about a significant increase in Bin Work costs and suggested reducing ATO cost recovery and improving reporting transparency. NS Power acknowledged the issues but explained that a 2025 cyber incident limited data availability and noted challenges in implementing more detailed reporting.

ower cannot currently commit to a timeline for fully enhanced workorder-level reporting, it intends to provide progress updates in future ACE Plan applications regarding the status of this initiative. Furthermore, NS Power stated that the...

AI summary NS Power cannot commit to a timeline for enhanced workorder-level reporting but will provide updates in future ACE Plan applications. It claims that the absence of requested information by the CA did not impact cost management, citing established procurement processes and oversight. NS Power also notes that increased workforce capacity and reduced new customer work contributed to reduced overtime use.