N-1Application - Redacted
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NS Power Application for Financing Order to Reduce Costs for Customers Redacted - 1 As detailed within this Application, the proposed securitization satisfies the requirements of the - 2 Securitization Regulations and will provide substant...
AI summary NS Power is requesting a Financing Order from the Board to authorize the securitization of Securitized Costs and Financing Costs, which is expected to reduce customer costs, facilitate the retirement of thermal generation assets, and moderate rate impacts over the recovery period.
1 2.0 SECURITIZED COSTS 2 - 3 Pursuant to the Securitization Regulations, NS Power seeks a Financing Order authorizing the - 4 securitization of certain Securitized Costs and the recovery of those costs, together with associated - 5 Financ...
AI summary NS Power is requesting a Financing Order to securitize $987.5 million in Securitized Costs, including Retired Generation Costs, Unretired Generation Costs, and other eligible expenses, through a Securitized Surcharge collected via a Securitization Rider. The rationale and financial benefits of securitization are detailed in Section 5.0 and Appendix A.
22 2.1 Thermal Assets - 24 NS Power seeks to securitize $740.6 million, consisting of the unrecovered net book value of - 25 thermal generation assets within the scope of the DDA as at December 31, 2025, together with - 26 deferred financi...
AI summary NS Power is seeking to securitize $740.6 million, which includes the unrecovered net book value of thermal generation assets as of December 31, 2025, and deferred financing costs from May 1, 2026, to November 30, 2026, calculated at a 6.59% WACC. This approach aligns with the 2026-2027 GRA and excludes costs already recovered through customer rates to avoid duplication.
10 11.7 Flexibility in Bond Terms 11 - 12 Pursuant to section 3(3)(g) of the Securitization Regulations, NS Power requests flexibility be - 13 afforded to it in establishing the terms and conditions of the Securitized Bonds, including but...
AI summary NS Power is requesting flexibility in bond terms under the Securitization Regulations, allowing for adjustments in repayment schedules, interest rates, and financing costs, provided the transaction remains aligned with prevailing interest rates and delivers quantifiable net present value benefits to customers.
1 13.0 IMPACT ON THE DECARBONIZATION DEFERRAL ACCOUNT (DDA) 2 3 As described in Section 2.1, the proposed securitization applies to $740.6 million of unrecovered 4 net book value and deferred financing costs associated with thermal generat...
AI summary The document discusses the impact of securitization on the Decarbonization Deferral Account (DDA), noting that it would reduce the DDA balance significantly but still require recovery of decommissioning and sustaining capital costs. NS Power argues the DDA remains important for transparent and cost-effective recovery of thermal generation asset retirement costs.
NS Power Application for Financing Order to Reduce Costs for Customers Redacted Financing Order Requirements Under Section 5(1) Application Reference (b) A description and estimate of the amount and categories of Financing Costs that may b...
AI summary NS Power has applied for a Financing Order to reduce customer costs, proposing the issuance of Securitized Bonds and the imposition of Securitized Surcharges. The application outlines requirements for cost recovery, justification for the order, and mechanisms for adjusting surcharges to ensure fair and reasonable recovery of financing costs.
2 As illustrated in [Figure 1](#page-55-2) , full recovery of the outstanding FAM AA/BA balance as of September 3 30, 2026 would result in an average rate increase of approximately 7.6 percent in 2027. The BA 4 rider includes recovery of t...
AI summary The text discusses the recovery of the FAM AA/BA balance as of September 30, 2026, which would result in a 7.6% average rate increase in 2027. It also references the renewal of the BA rider approved in M11393, which covers the amortization and financing costs of a $117 million customer receivable purchased by Invest Nova Scotia.
8 2.1 Proposed Solution to Address FAM AA/BA Balance 9 NS Power is proposing to securitize the outstanding FAM AA/BA balance and recover the 10 associated costs over a 30-year period, rather than recovering the full balance in 2027. The 11...
AI summary NS Power proposes to securitize the outstanding FAM AA/BA balance and recover the associated costs over a 30-year period instead of in 2027. This approach includes both the current unrecovered balance and forecasted under-recovery to provide additional protection.
6 Figure 4 – Breakdown of 2027 AA Amount Item Amount ($ Million)\ 1 Total Fuel and Purchased Power 1,021.8 2 Fuel Adjustments (Revenue from Below-the-Line customers) (68.6) 3 Total Fuel and Purchased Power Costs 953.2 4 FAM Revenue (875.5)...
AI summary Figure 4 outlines the breakdown of the 2027 Affordable Access/Bill Adjustment (AA/BA) amount, showing total fuel and purchased power costs, fuel adjustments, and under-recovery of fuel costs, resulting in a total AA amount of $80.5 million.
5 Figure 6 – AA and BA Amounts up to September 30, 2026 by Customer class Customer class AA ($ Million) BA ($ Million) Total ($ Million) Domestic Service 27.7 1.6 29.4 Small General 3.8 0.6 4.4 General 24.2 32.1 56.3 Large General 4.0 5.9...
AI summary Figure 6 provides a breakdown of Affordable Access (AA) and Bill Adjustment (BA) amounts by customer class up to September 30, 2026. The table shows the distribution of these funds across different customer segments, with General and Large Industrial-Interruptible classes receiving the highest amounts.
5 5.0 COST OF SERVICE METHODOLOGY - 6 The 2027 FAM AA and BA amounts are allocated to each customer class in accordance with the - 7 NSEB-approved Cost of Service (COS) methodology approved in the 2026-2027 GRA proceeding - 8 (M12451). Det...
AI summary The 2027 Fuel Adjustment Mechanism (FAM) AA and BA amounts are allocated to customer classes using the NSEB-approved Cost of Service (COS) methodology from the 2026-2027 GRA proceeding. Energy requirements for AA calculations include actual sales from October 2025 to August 2026 and forecast sales for September 2026, adjusted for line losses. Demand-related FAM costs are based on three coincident peaks from December 2025 to February 2026.
19 6.0 OATT MEUS FAM AA/BA BALANCE AND PROPOSED RECOVERY - 20 As shown in [Figure 8](#page-65-1) below, the four OATT MEUs are projected to owe NS Power approximately - 21 $6.9 million as of September 30, 2026. 22
AI summary The document discusses the projected balance owed by the four OATT MEUs to NS Power, estimating approximately $6.9 million as of September 30, 2026.
ADJUSTMENTS Subject to NS Power making application for recovery through the SECRR, recoverable amounts shall be limited to those approved by the Board in a Financing Order. The SECRR shall include: - a class-specific Securitized Surcharge...
AI summary The document outlines the structure and purpose of the Securitization Cost Recovery Rider (SECRR), including the Securitized Surcharge (SS) and Balancing Adjustment (BA), which are designed to recover financing and securitization costs from customer classes based on approved methodologies and effective from January 1, 2027.
DSM COST RECOVERY RIDER The Demand Side Management Cost Recovery Charge (in cents per kilowatt-hour) applicable to the Tariff for the current rate year, shown in the Demand Side Management Cost Recovery Rider, shall apply, in addition to t...
AI summary The Demand Side Management Cost Recovery Charge is applied in addition to the energy charge for the current rate year as outlined in the DSM Cost Recovery Rider.
2026 Securitization Rider Application Appendix G-2 (Clean) Page 42 of 87 REDACTED (CONFIDENTIAL INFORMATION REMOVED) MEDIUM INDUSTRIAL TARIFF Page 2 of 2 (250 kVA or 225 kW to 1,999 kVA or 1,799 kW) Rate Code 22 Securitization Cost Recover...
AI summary This document outlines the application for a 2026 Securitization Rider, detailing how Securitization Cost Recovery charges or credits are applied to the Medium Industrial Tariff Rate Code 22, in addition to the energy charge for the current rate year.
SPECIAL CONDITIONS (1) Metering will normally be at the low voltage side of the transformer. Should the customer's requirements make it necessary for the Company to provide primary metering, then the customer will be required to make a cap...
AI summary The special condition outlines that primary metering requires a capital contribution from the customer equal to the difference in cost between primary and secondary metering. If high voltage metering is used, a 1.9% reduction in metered kWh usage will be applied.
N-3Transcript of Technical Conference held October 15, 2026
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NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: THE PUBLIC UTILITIES ACT - and - IN THE MATTER OF: THE FINANCING ORDERS AND SECURITIZED BONDS REGULATIONS - and - IN THE MATTER OF: AN APPLICATION by NOVA SCOTIA POWER INCORPORATED for approval of...
AI summary This proceeding involves Nova Scotia Power's application for a financing order to securitize $1 billion in costs collected via a Securitization Cost Recovery Rider, under the Public Utilities Act and related regulations.
itized costs would - be are being affirmed as part of this this component in - the application. Who's responsible for those buckets and - how much responsibility they may have would be something - that would be determined as part of the co...
AI summary The discussion focuses on the need for clarity in determining responsibility for cost buckets as part of the cost-of-service analysis, with concerns raised about potential issues if responsibilities are not clearly defined before approval. The parties involved express willingness to collaborate with the Board on the process.
w you developed that monthly - number and how it compares to their budget that they - submitted. - MR. WILLETT: Yeah. Melissa, it's - Mike Willett here. - So those numbers are coming directly - from the IESO's application. So there was a l...
AI summary The discussion centers on revenue requirement collection mechanisms and fuel and purchase power costs, including the use of a Financial Accountability Mechanism (FAM) to address forecasted under-recoveries and the decision to issue a $1 billion bond to secure the best interest rates for customers.
number would provide the best results. - And so we have provided there the - breakdown, again, the forecast under-recovery to September - 30th, the forecast under-recovery of the remainder of this - year or next year, an additional amount...
AI summary The document discusses the under-recovery of fuel costs due to higher-than-expected expenditures, driven by geopolitical events and colder weather. These costs, incurred during the energy transition period, are impacting Nova Scotia Power's credit metrics and may require a rate increase of 7-8% to maintain its credit rating.
oximate rate increase - of about seven to eight percent for an average across all - customer classes. - Securitization of unexpected fuel - balances has been employed in other jurisdictions and in - Nova Scotia previously. So that was with...
AI summary The text discusses the securitization of fuel costs, including a $500 million fuel balance from a previous proceeding, and argues that securitization allows for cost-effective recovery of these costs, benefiting both current and future customers and supporting Nova Scotia Power's credit ratings.
d number and in terms of market - INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS interest, was there any discussion of other round numbers, - say, 900 million? Is there any practical sort of - considerations with going with a diffe...
AI summary The discussion revolves around the securitization of costs and the potential impact on customer rates. The participants consider a $1 billion cap as optimal for customer benefit and explore the feasibility of using a lower round number. There is also a question about the analysis behind the IR process and a discrepancy in the timing of cost recovery, with one participant noting a potential seven to eight percent rate increase if securitization is not used.
'd be recovered over 13 - years. - INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS So is there a bit more explanation of - that discrepancy or you can tell me where I've made the - mistake? - MR. FLEMMING: Yeah, absolutely, - James....
AI summary The discussion revolves around the recovery of costs over a 13-year period, with a focus on the assumptions behind the NPV analysis and the cost allocation process. Questions are raised about the methodology for cost recovery and the feasibility of a 60-day turnaround time for the Board to approve a yield on long-term bonds.
e of the volatility in those bond - markets and we would be looking to lock in the lowest - yield possible. And we're aware of the fact that, to the - extent that time drags on, yields could go up. - And so we will not be wasting any - INT...
AI summary The discussion revolves around the potential rate increase in 2027, with a focus on fuel costs and the Financial Accountability Mechanism (FAM). The conversation highlights concerns about the impact of delayed decisions on bond yields and customer costs, as well as the need to lock in low rates quickly.
t interest to the benefit of customers on the - FAM. - MR. ROSCOE: That's helpful, Craig. - MR. MacDOUGALL: With respect to the - over or under-recovery and the additional FAM prepayments, - do they then they don't go into the FAM in the f...
AI summary The discussion centers on the Financial Accountability Mechanism (FAM) and its implications for Nova Scotia Power's rate base and customer benefits. It touches on the allocation of over-recovery funds to the FAM and the impact on equity returns and customer savings.
u know, costs previous costs - incurred, so having that amortized over a long period at a - good interest rate is of benefit to those customers - switching. - Where we bristle at the suggestion - that now precedent has been set about finan...
AI summary The discussion highlights concerns about amortizing past fuel costs over long periods at favorable interest rates, and the potential negative impact of securitization on ratepayers. There is a disagreement over the inclusion of future fuel costs in the rate adjustment process, with one party arguing it may be inefficient and costly.
the transaction. The bond - is a 30-year mortgage style bond, so very similar to how a - mortgage would work. You pay more interest in the early - years and a lower amount of principal and as your - principal decreases, so does your intere...
AI summary The text discusses a 30-year mortgage-style bond and its impact on the net present value of revenue requirements under different interest rates. It also outlines assumptions about the recovery of deferred depreciation and financing costs if securitization does not proceed, including an annual depreciation expense of $26.8 million.
ved rate. And so that would - be $26.8 million annually. It would be a depreciation - expense that would be included in rates. As well, there - would be financing costs associated with the net book - value or rate base associated with thos...
AI summary The text discusses the financial aspects of asset depreciation, financing costs, and under-recovery of fuel and purchase power, including recovery timelines from 2027 to 2039. It outlines how these costs would be included in rates and recovered through various mechanisms, such as AA/BA applications and IESO riders.
that that - will be in 2028 through adjusted general rates and then - the IESO deferral assumed recovery in 2027, beginning in - 2027 through an IESO rider. - And so looking at all of that and so - comparing the 30-year securitization mort...
AI summary The discussion focuses on the financial implications of securitization, comparing a 30-year securitization mortgage-style bond with a scenario where assets are recovered over a 13-year period. The analysis shows a $265.6 million net present value decrease in customer payments, or an increase in customer benefits, representing a 21% savings.
uld then use that money to pay bondholders. - The other pieces of the cashflow here - INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS relate to the intercompany loan, and so Nova Scotia Power - would pay interest to the limited part...
AI summary The discussion centers on the securitization process, focusing on the allocation of financing and ongoing costs to different components, and the treatment of revenue requirements for thermal assets using existing methodologies, including the 2027 total system coincident load factor and the 3 CP methodology for cost allocation.
mand component we are - using the 3 CP, three coincident peak, methodology in - order to allocate those costs to various customer classes. - And for the energy component of the thermal assets, that - is based on the 2027 share of energy by...
AI summary The discussion focuses on the methodology for allocating costs to customer classes using the three coincident peak (3 CP) approach and the 2027 energy share forecast. The conversation also addresses the annual updating of load forecasts and the treatment of fuel and purchase power costs, with a reference to the $150 million balance as of September 30, 2026.
N-4Proof of Advertisement
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NOVA SCOTIA ENERGY BOARD NOTICE OF PUBLIC HEARING Application by Nova Scotia Power Incorporated For Approval of a Financing Order authorizing the securitization of $1 billion in costs, collected through a Securitization Cost Recovery Rider...
AI summary Nova Scotia Power Incorporated has applied for approval to securitize $1 billion in costs through a Securitization Cost Recovery Rider. The costs include asset retirement, fuel and purchased power under-recoveries, and deferral account balances. The application is filed under the Public Utilities Act and Financing Orders and Securitized Bonds Regulations.
NOVA SCOTIA ENERGY BOARD NOTICE OF PUBLIC HEARING Application by Nova Scotia Power Incorporated For Approval of a Financing Order authorizing the securitization of $1 billion in costs, collected through a Securitization Cost Recovery Rider...
AI summary Nova Scotia Power Incorporated has applied for approval to securitize $1 billion in costs through a Securitization Cost Recovery Rider, including costs related to thermal generation asset retirement, fuel and purchased power under-recoveries, and deferral accounts. The request is made under the Public Utilities Act and Financing Orders and Securitized Bonds Regulations.
NOVA SCOTIA ENERGY BOARD NOTICE OF PUBLIC HEARING Application by Nova Scotia Power Incorporated For Approval of a Financing Order authorizing the securitization of $1 billion in costs, collected through a Securitization Cost Recovery Rider...
AI summary Nova Scotia Power Incorporated has applied for approval to securitize $1 billion in costs, collected through a Securitization Cost Recovery Rider. The costs include deferred financing costs, fuel and purchased power costs, and deferral account balances, among others.
NOVA SCOTIA ENERGY BOARD NOTICE OF PUBLIC HEARING Application by Nova Scotia Power Incorporated For Approval of a Financing Order authorizing the securitization of $1 billion in costs, collected through a Securitization Cost Recovery Rider...
AI summary Nova Scotia Power Incorporated has applied for approval of a financing order authorizing the securitization of $1 billion in costs, collected through a Securitization Cost Recovery Rider. The costs include thermal generation asset retirements, fuel and purchased power costs, and deferral account balances.
104038CA (NSPI) IR 1 to 6
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1 M13133 2 3 NOVA SCOTIA ENERGY BOARD 4 5 6 7 IN THE MATTER OF: the PUBLIC UTILITIES ACT 8 9 - and - 10 11 12 IN THE MATTER OF: the FINANCING ORDERS AND SECURITIZED BONDS REGULATIONS 13 14 - and - 15 16 17 18 19 20 IN THE MATTER OF: an app...
AI summary The Nova Scotia Energy Board is handling a matter related to the Public Utilities Act and the Financing Orders and Securitization Bonds Regulations. Nova Scotia Power Inc. has applied for approval to securitize $1 billion in costs collected through a Securitization Cost Recovery Rider. The Consumer Advocate has sent information requests to Blake Williams of Nova Scotia Power Inc., with responses due by October 29, 2026.
As noted in NSPI's Application: At the time of the 2026-2027 GRA, NS Power proposed to securitize a forecast amount of $704 million of the unrecovered net book value of thermal assets within the scope of the DDA ($500 million in 2025 and $...
AI summary NS Power proposes to securitize $1 billion of thermal asset liabilities, expecting $265.6 million in customer savings over 30 years. This change from the original $704 million proposal is due to ongoing analysis and discussions with financial advisors, suggesting a single bond issuance is feasible. Questions are raised about the NPV calculation and the pros and cons of single versus multiple bond issuances.
Request IR-2: NSPI states: NS Power's Q3 Forecast includes a forecast Fuel Adjustment Mechanism (FAM) under- recovery of $41.7 million, before interest, in Q4 2026 and 2027. The $64.9 million FAM prepayment consists of this forecast under-...
AI summary NSPI proposes a $23.2 million additional FAM prepayment to be securitized over 30 years, aiming to moderate fuel rate impacts in 2028 and manage transitional energy costs. This approach seeks to distribute costs across current and future customers and align with long-term energy transition goals.
NPSI provides the following summary of securitization analysis (N-1, page 25 of 51): Traditional Recovery Securitization Eligible Costs 1,040,567,763 1,000,000,000 Recovery Period 13 Years (2027 - 2039) 30 years (2027-2056) Cost of Financi...
AI summary NPSI provides a comparison between traditional recovery and securitization, highlighting differences in eligible costs, recovery periods, financing costs, and customer savings. The eligible costs for traditional recovery are higher than those for securitization, and the analysis shows potential savings of 21% with securitization.
104048IG (NSPI) IR 1 to 34
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22 FUEL AND PURCHASED POWER ($214.5 MILLION) - 23 Request IR-6: - 24 Reference: N-1, Application, page 13, lines 4-6; and Appendix C Attachment 3, tab "BA - 25 Calculations." - 26 "The forecast September 30, 2026 under-recovery of $149.6 m...
AI summary The document discusses discrepancies in fuel and purchased power costs, including a forecast under-recovery of $149.6 million and a $69.1 million balance from Appendix C. It requests a reconciliation, actual September 2026 data, and details on the $41.7 million forecast under-recovery.
1 Request IR-11: 2 Reference: N-1, Appendix C, Figure 6 (pg. 11), and pages 12 – 13. Preamble: Figure 6 shows that the Large Industrial (both Firm and Interruptible) portion of the Balancing Adjustment (BA) for under-recovered FAM costs is...
AI summary The document requests detailed reconciliation and breakdown of fuel adjustment mechanism (FAM) balances, focusing on the Large Industrial class. It asks for class-level calculations, explanations of discrepancies between Balancing Adjustment (BA) and Actual Adjustment (AA) balances, and clarification on allocation methods and historical decisions affecting FAM balances.
21 REASONS FOR INCLUSION AS SECURITIZED COSTS - 22 Request IR-21: - 23 Reference: N-1, Application, Section 2.5, pages 15 18; - 24 Preamble: NSPI discusses its rationale for including the proposed costs in the 25 securitization transaction...
AI summary Nova Scotia Power Inc. (NSPI) outlines 21 reasons for including certain costs in a securitization transaction, emphasizing lower financing costs, intergenerational cost sharing, rate stability, and support for the Province's energy transition. The request references sections of an application and asks for an explanation of relevant utility rate-setting principles, including Bonbright's principles and cost causation.
1 intergenerational equity, the matching of costs and benefits, and the used 2 and useful principle. 3 (b) For each component of the proposed securitization (thermal assets and 4 associated financing costs, under-recovered fuel and purchas...
AI summary The text requests an explanation of how the proposed securitization and 30-year recovery period align with principles of intergenerational equity, cost-benefit matching, and the nature of costs, benefits, and responsible customers for various components of the securitization.
1 under each of: the Energy Allocator methodology as proposed in the 2 Application; and the allocations requested in (g) above. Include columns 3 that quantify the dollar and percentage difference, by rate class, from the 4 amount allocate...
AI summary The document outlines requests for clarification regarding NSPI's financing costs, including upfront and ongoing costs, their allocation to securitization components, and the treatment of specific fees and reserve accounts. It asks for detailed schedules, confirmation of accounting practices, and explanations of recovery mechanisms.
12 Reference: N-1 Application, page 21, Figure 4 and page 22, lines 4-13 "NS Power proposes an annual servicing fee of 0.05 percent of the initial principal amount of the Securitized Bonds to cover costs and expenses in servicing the Secur...
AI summary NS Power proposes a 0.05% annual servicing fee on Securitized Bonds to cover costs of servicing, which includes billing and collecting the Securitized Surcharge. The Board is asked to confirm if these functions overlap with current activities, whether the fee is justified, and how it will be accounted for in future GRAs.
1 NET PRESENT VALUE - 2 Request IR-26: - 3 Reference: N-1, Application, Section 5.0, page 25, Figure 5. - 4 Preamble: Figure 5 shows Eligible Costs of $1,040,567,763 under "Traditional - 5 Recovery" and $1,000,000,000 under "Securitization...
AI summary The text requests clarification on the Net Present Value (NPV) of customer benefits in a rate proceeding, specifically regarding the inclusion of financing costs for a FAM prepayment, recovery periods for different cost components, and the breakdown of NPV attributable to each component.
2 Request IR-28: - 3 (a) Absent securitization, please identify the recovery period NSPI would 4 expect to seek for each of: (i) the thermal asset balance; (ii) existing 5 unrecovered fuel and purchased power costs; (iii) forecast fuel and...
AI summary The request asks NSPI to identify recovery periods for various cost components, explain how these periods were determined, and provide financial impacts. It also asks for quantification of credit metric effects and supporting materials for credit-rating benefits from proposed securitization.
revenue. - 22 (a) Please confirm that this description of the respective allocation 23 methodologies for the PHP Deferral, IESO-NS Deferral, Financing Costs, 24 and the FAM prepayment is accurate. - 25 (b) Please explain why it is appropri...
AI summary The text requests clarification on the allocation methodologies for various deferral accounts and financing costs, specifically why variances are being absorbed into and recovered from the FAM prepayment balance using the Base Cost of Fuel revenue allocator instead of other methodologies.
1 adopted. 2 (h) Please confirm whether this same inconsistency applies to the Balancing 3 Adjustment (BA) mechanism described in Section 9.0, given that the BA 4 mechanism also reconciles "any difference between estimated Ongoing 5 Financ...
AI summary The text asks whether the inconsistency in the Balancing Adjustment (BA) mechanism, which reconciles differences between estimated and actual financing costs, also leads to cross-subsidization concerns, similar to those raised in the Fuel Adjustment Mechanism (FAM).