Topic:"Cost To Customer" in M03632

Existing Boiler Replaced in Year 10 in Steam-Only Scenario As t io su m p n S te -O ly am n Sc io en ar C H P Sc io en ar Ca lc la t io u n Ge l & A dm in is tra t ive ne ra $ 0 $ 0 In t a t ion la te t in f la t ion p u ss um p es ca s a...

AI summary The document presents a comparison between a steam-only scenario and a combined heat and power (CHP) scenario, focusing on the replacement of an existing boiler in year 10. It includes various financial and operational metrics such as administrative expenses, boiler overhaul costs, insurance, and other related costs.

Yearly$Costs$and$Financial$Structure: - ! 60%"debt @"8%"=""$3"million""for"15"year"(approx."yr.)""""""""""""$"""345,000/yr."" - ! Reserve"Fund :"one"year"of"costs"$675,000,"100%""borrowed" as"part"of"finance,"plus"finance"fees"="$700,000"@...

AI summary The document outlines the yearly costs and financial structure for a project, including debt, reserve fund, outside equity, operating costs, and miscellaneous expenses, totaling $775,000 per year before any profit share for the CEDIF.

4 In 2012–2014, the COMFIT resources would mostly back down existing 5 resources, so the rate increase would be something like the "base fuel" values in 6 Table 5. Since NSPI currently projects that it is currently short on renewable 7 ene...

AI summary The document discusses the impact of COMFIT renewable energy projects on rate increases and NSPI's renewable energy obligations. It notes that COMFIT resources may reduce the need for market renewables, affecting costs. Small wind capacity has a modest rate effect, while larger COMFIT portfolios, especially those with tidal power, are costly for ratepayers.

18 Q: Are there any of the COMFIT technology categories that particularly 19 concern you? - 20 A: Yes. It would be difficult to justify imposing on consumers the exorbitant prices 21 that Synapse proposes for small wind and tidal contracts...

AI summary The respondent expresses concern over the high proposed COMFIT rates for small wind and tidal projects, arguing that these rates are not justified given the significantly lower costs of wind energy and the environmental costs of coal. They also mention potential benefits of small wind and tidal projects, such as promoting household and small business participation and attracting tidal-power development in Nova Scotia.

OPERATING AND MAINTENANCE COST ESTIMATE PREDICTED OPERATING AND MAINTENANCE COSTS FOR FACILITY CATEGORIES DESCRIPTION Hours Per Year 5,256 Capacity factor 60% Process Steam Demand lb/hr 21,190 $40/metric tonne (See Note 1) Annual Steam Con...

AI summary The document provides operating and maintenance cost estimates for two facility options, detailing fuel costs, non-fuel operational expenses, and commercial costs such as insurance and property taxes. It includes data on steam consumption, capacity factors, and annual maintenance costs for both options.

Q. Does ANSS agree with this approach? A. No. Since the purpose of the COMFIT is to procure renewable electricity, the ANSS does not believe that it is justifiable to approach the evaluation from the perspective of a boiler only scenario w...

AI summary ANSS disagrees with Synapse's approach to evaluating the COMFIT project, arguing that it unfairly places the cost of shared steam resources solely on the heat user. ANSS believes both the heat user and electricity rate payer should share the cost, as both benefit from the shared steam resource. Synapse acknowledged that some steam generated in a COMFIT CHP plan benefits electricity users.

Data Sources The Vermont model appears to provide reasonable sources to derive data for the model. It is important that capital cost estimates, O&M costs, capital structure estimates, borrowing rates and all other variables are drawn from...

AI summary The text discusses the importance of using current and local data for modeling, particularly for Combined Heat and Power (CHP) generation costs in Nova Scotia. It outlines plans to conduct an engineering study with a local firm and consult the Canadian financial community and the forestry industry to determine key parameters such as fuel costs and capital structure.

- 4. If ESI performed a study to determine the capital cost and O&M costs for an 18,000 pph boiler than one could address all ofthe above issues. Nova Scotia COMFIT Model Biomass CHP (condensing turbi State/Provincial 1 State/Provincial 2...

AI summary The text discusses a study by ESI to determine the capital and O&M costs for an 18,000 pph boiler, which could address the issues mentioned. A table presents the Nova Scotia COMFIT Model and related costs for a biomass CHP system.

16 below. Capacity Cost CostlMW Plant Owner Location (MW) ($M) ($M) Date Source Domtar Rothschild We Energies Rothschild, WI 50 $ 250 $ 5.00 9/1/2009 RISI St Mary's St Mary's Sault Ste Marie, ON 35 $ 175 $ 5.00 8/31/2009 Sault Star article...

AI summary The table provides details on various power plants, including their owners, locations, capacities, costs, and cost per MW. It includes data from different sources and dates, with a note about the Simpson Tacoma project's cost calculation.

Benefits + Costs In the process of transitioning to a system that is cleaner, more diverse, more domestic, and more secure, this plan will support as much as $1.5 billion in green investment—creating good jobs and growing the economy. Spec...

AI summary The plan supports $1.5 billion in green investment, creating 5,000 to 7,500 person-years of jobs in construction, supply, manufacturing, and maintenance. While upfront costs and short-term increases in electricity bills (1-2%) are expected, long-term benefits include stabilized fuel prices, energy security, and protection from fossil fuel volatility and future carbon costs.

5.2 Affordability provisions in the Renewable Electricity Plan [38] The Renewable Electricity Regulations direct the manner in which the COMFIT tariffs are calculated based on estimated cost. It is important to remember, however, that the...

AI summary The Renewable Electricity Plan includes affordability provisions, noting that implementing COMFIT may increase electricity bills by 1-2% annually. The Board is concerned about the impact on ratepayers and emphasizes the need for a balanced approach to ensure affordability while transitioning to renewable energy.

6.2 Capital Structure and Cost ANSS recommends assuming 100% equity financing and a return on equity of 17.5%. We have analyzed the impact of this change in the Excel file "Synapse U-6 Capital Structure." To examine this, we removed debt f...

AI summary ANSS recommends 100% equity financing with a 17.5% return on equity, which impacts the fixed portion of the rate. Changes to assumptions such as debt service reserve account and interest during construction were made in the 'Synapse U-6 Capital Structure' Excel file, resulting in a fixed rate of $128 per MWh.

Biomass CHP (condensing turbine; new boiler in steam-only scenario in year 10) Assumptions Notes: , Less: Principal Less: Interest 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Cash (16,608,105) 2,944,269 2,911,343 2,877,770 2,843,538 2,808,63...

AI summary The text presents a financial analysis of a biomass CHP project, including cash flows, equity investment returns, pre-tax internal rate of return, taxable income, and tax benefits. It outlines assumptions and calculations over multiple years.

Page 5 of 6 NS_COMFIT_Biomass_45% Cost Allocation.xls Component Scenario Scenario Scenario Project development $0 $275,000 $275,000 Boiler installed cost ($) $20,298,000 $36,818,000 $16,520,000 Turbine installed cost ($) $0 $0 $0 Emission...

AI summary The document provides a detailed cost allocation breakdown for a biomass project under the Community Feed-in Tariff (COMFIT) program, including installed costs, reserves, operational and maintenance expenses, fuel costs, and financial calculations such as loan and equity values.

IMPACT ON RATES Other than the filed evidence of Mr. Chernick there was no attempt made to assess the impact of the proposed tariff structure on rates. But in order to achieve the mandate of fair and reasonable rates to the ratepayer, that...

AI summary The document discusses the impact of the proposed tariff structure on rates, highlighting that the COMFIT program could be costly for ratepayers if not constrained. It emphasizes the need to balance fair and reasonable rates by opting for lower tariff levels and capacity caps to protect consumers.

Biomass $0.156 per kWh in year 2012 for biomass CHP projects, composed of a fixed component of $0.094 per kWh and an escalating component of $0.062 per kWh representing the cost of fuel - 1. EAC is strongly opposed to the utilization of bi...

AI summary The Energy Advisory Committee (EAC) opposes the inclusion of biomass CHP in the COMFIT program due to unclear definitions, lack of efficiency standards, and concerns about carbon neutrality. It also highlights potential unfair advantages for biomass proponents and the risk of increased costs for rate-payers due to biomass fuel price escalations and reduced forest biomass availability.

ANSSSTEAM-ONLYARGUMENT In its submission at paragraphs 47 - 52, ANSS disputes Synapse's inclusion in the biomass rate of only the additional costs of a cogeneration system, above the cost of a steam-only system to meet the sawmill's heat r...

AI summary ANSS disputes Synapse's biomass rate model, arguing that it incorrectly allocates steam generation costs. ANSS claims that Synapse only allocates 55% of steam costs to the steam host, not 100% as misrepresented. ANSS also argues that the proposed biomass COMFIT rate is based on an inconsistent hypothetical scenario that violates COMFIT regulations.

5.2 Affordability provisions in the Renewable Electricity Plan [38] The Renewable Electricity Regulations direct the manner in which the COMFIT tariffs are calculated based on estimated cost. It is important to remember, however, that the...

AI summary The Renewable Electricity Plan in Nova Scotia includes affordability provisions that outline potential short-term increases in electricity bills due to the implementation of renewable energy initiatives, such as the COMFIT program. The plan acknowledges a 1-2% annual increase in electricity bills and estimates additional costs for single-family homes, especially those using electricity for heating. The Board emphasizes the importance of considering these cost implications when determining electricity rates.

[154] Synapse further elaborated: The steam host bears the full cost that they would have had under a scenario where they have a plant that only produces steam. So the two scenarios that we netted out are one which is combined heat and pow...

AI summary Synapse explains that the steam host bears the full cost of producing steam in a scenario where only steam is generated, as opposed to combined heat and power with a condensing steam turbine. The analysis compares two facilities to determine cost differentials.

e is going to be not just [a] capital cost, it's also going to be an operating cost, and there will be a difference to some extent in, for example, labour as well. [Transcript, April 5, 2011, p. 465] [194] The rating of the boiler (essenti...

AI summary The text discusses the distinction between capital and operating costs, with a focus on labour implications. It also references the classification of boiler facilities and the regulatory requirements for operator attendance, including the possibility of obtaining dispensation for periodic supervision.

limitations to that and, you know, you'll get a chance to 1 examine such people later in the week, right? 1 I think that the government was pretty clear that in the 2 Renewable Electricity Plan that these projects that a 3 return on invest...

AI summary The discussion revolves around the Renewable Electricity Plan and the COMFIT program, emphasizing the balance between the cost of electricity and the return on investment for renewable projects. There is a focus on ensuring that feed-in tariffs provide a reasonable return to developers while managing the impact on electricity rates.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS the quantities of each type of resource and multiplying 1 and adding it up. 14 that we think will provide some activity. 15 I mean, you know, what we could be 16 what we didn't one might do t...

AI summary The discussion revolves around the evaluation of the COMFIT program's impact on rates, with a focus on resource classes and their associated costs. The speaker mentions that some high-cost resource classes may be excluded from regulations, and rough calculations were made to assess the cost implications of different resource mix scenarios.

now in boilers. So there's infrastructure there. We don't know we know very little about how old it is, you know, and so when you're you're essentially having to determine the sawmill's avoided cost. If they don't do a CHP program, what's...

AI summary The discussion centers around the avoided cost of maintaining a boiler at a sawmill, which influences rate-setting decisions. The range of avoided costs is identified as 147 to 156, with a recommendation to use the higher end of the range. An escalator for fuel costs is included in the high-end scenario.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MS. RUBIN: So your cost per megawatt 1 NSUARB-BRD-E-R.10 Page 137 is lower than plants of the scale 10 times to 20 times 16 Do you want to talk about the 17 discussion you had with them or sh...

AI summary The discussion revolves around cost per megawatt, emissions criteria, and the inclusion of control systems in CHP projects. The witness mentions reliance on data and studies provided by another party, and confirms that certain items were included in the costing of the CHP project.

- could do? 1 Page 410 NSUARB-BRD-E-R.10 MR. RICKERSON: They didn't give me a 13 evidence actually. 14 The lenders would are more 15 interested in financing after the construction is 16 complete. So that forces developers and our project 1...

AI summary The testimony discusses challenges in financing renewable energy projects, particularly the reliance on non-traditional lenders for construction due to banks' reluctance, leading to higher interest rates. The discussion also touches on the assumed cost of equity at 13 percent and the lack of engagement with investment groups or venture capital for funding.

overall efficiency of 28 percent, and I would have 1 Page 434 NSUARB-BRD-E-R.10 difficulty recommending that that project be allowed to 2 sell electricity on a tariff that was for combined heat 3 and power. 4 And another factor is that the...

AI summary The text discusses concerns regarding the efficiency of a biomass-to-electricity project at 28%, which increases fuel costs compared to a combined heat and power (CHP) facility operating at 60% efficiency. This raises questions about the financial viability and the justification for higher electricity costs.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS businesses are here and employ people here and are 1 resident of Nova Scotia. I'm sorry, in that way I was 9 We see this often in our business 10 where people approach us and say, "We've got...

AI summary The text discusses a rate proposal with a FIT tariff of $320, which is significantly higher than the average generation cost. It also references a PPA and challenges related to capital costs and project feasibility.

- MR. TRAVIS : I tried very hard to find - I tried to do that. I called suppliers and I tried - because I wanted to present something that was better. - But at the end of the day, I couldn't find anything that - was sufficient to be able t...

AI summary The speaker discusses the challenges of finding adequate data to cover risk in biomass cost reporting, emphasizing the need for a formula to adjust rates based on market costs and the potential value of establishing a biomass index for future reference.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS million BTU, if I understand it Page 792 NSUARB-BRD-E-R.10 1 MR. COADY: Right. 2 MR. DOEHLER: is only to replace 3 the cost of fuel the plant now runs. It does not include 4 the operating cos...

AI summary The discussion revolves around the cost structure for a fuel plant, specifically the cost per million BTU, and the financial relationship between the university and the developer. There is a mention of return on equity and potential rate reductions if the return on equity is removed from calculations.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS costs, which again are much higher than those assumed by 1 Synapse based on review of other sources. So your 2 operating costs may include the cost of operating the 3 CEDIF. 4 MR. LIVINGSTON:...

AI summary The discussion revolves around the operating costs of CEDIF, including potential tax implications and the impact on shareholder returns. Concerns are raised about the possibility of CEDIF not being able to return dividends to shareholders due to tax obligations.

So you're not going to have the system running amuck. 1 Page 892 NSUARB-BRD-E-R.10 either using the kind of approach I laid out or the one 16 requested by a single party that they would say, well 17 wait, we have to save some because this...

AI summary The discussion addresses concerns about the potential clustering of small wind projects around the 50 kW threshold and its impact on ratepayers. It suggests that while there may be a slight increase in retail rates, the overall burden on customers is not considered significant, and the clustering effect is unlikely to have major implications for costs.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS record, we'll note it and then we'll come back we'll 1 clear the room at the end of your cross-examination and 3 yesterday, that equity is where costs of projects often go 4 up because of the...

AI summary The text discusses the cost of equity in projects, suggesting that government involvement as an equity partner could reduce the financial burden on ratepayers and provide returns to investors. It mentions the Industrial Expansion Fund at NSPI and the potential for high returns on renewable energy projects.