Topic:"Cost To Customer" in M12768

1 Request IR-1: 2 3 Refer to M12768, Exhibit N-1, NS Power's Extra Large Industrial Active Demand Control 4 (ELIADC) Tariff – 2025 Annual Report – Redacted, dated March 26, 2026, (the "2025 5 Report"), which states, on page 2 at para 2: 6...

AI summary The 2025 Annual Report discusses the ELIADC Tariff, noting a positive ADC differential in 2025 due to the difference between forecast and actual CBL Energy Charge. This resulted in PHP being obligated to pay the full actual CBL cost to serve, including additional costs from variances in dispatch schedules, as outlined in the 'Minimum Payment' section of the ELIADC Tariff.

addition, the Industrial Group viewed the $5/MWh minimum fixed cost contribution under the ELIADC tariff as providing insufficient protection for other ratepayers against continued under-performance. Other issues raised for consideration i...

AI summary The Industrial Group raised concerns about the ELIADC tariff's $5/MWh minimum fixed cost contribution, arguing it does not sufficiently protect other ratepayers from financial impacts caused by Port Hawkesbury Paper's under-performance. They also highlighted issues with load forecast revisions, carrying costs, and reporting transparency, requesting changes to improve accountability and comparability.

4. PHP Load Revisions — Unlimited in Number and Frequency PHP's initial 2025 forecast totalled 811 GWh. There were revisions to PHP's load forecast throughout the year, with a final actual demand requirement of 691 GWh. This represents a r...

AI summary PHP's 2025 load forecast was revised downward by 15% (120 GWh) from 811 GWh to 691 GWh. NSPI states the ELIADC Tariff allows unlimited forecast revisions, while the IG argues this creates a structural advantage for PHP, recommending tariff design improvements to address the gap.

8. Inter-Year Adjustments — Transparency and Comparability The ELIADC Revenue Table for 2025 (Att.1, p.1/3) records a 2024 ADC Adjustment of −$1,221,077 and a 2024 VOM Adjustment of +$52,067 within the 2025 annual figures. 6 Matter M12123,...

AI summary The document discusses inter-year adjustments in the ELIADC Revenue Table for 2025, highlighting a $1.22M prior-year adjustment and the need for transparency in annual reporting. The Investigator General (IG) requests standardized tables to enable like-for-like year-over-year comparisons, while NSPI confirms adjustments will continue under US GAAP.

9. Monthly Cost-to-Serve vs. CBL Energy Charge — Month-by-Month Cross-Subsidy The ELIADC Report Table (Att.1, p. 1) shows that in January 2025, the incremental cost to serve PHP was $7,662,264 against a total billed charge of $5,494,114, a...

AI summary The ELIADC Report highlights monthly shortfalls between PHP's incremental cost-to-serve and billed charges, particularly in winter months, creating cross-subsidies. While annual netting shows a positive differential, monthly data reveals ratepayer shortfalls. The IG requests NSPI to clarify monthly reporting (M-8) with detailed cost-to-serve vs. billed charge comparisons and accrual explanations.

the load of the Company's largest customer is integrated into the utility's system dispatch in a manner which benefits the ELIADC Tariff customer and all other customers, is a significant achievement. That the ELIADC Tariff provides financ...

AI summary The ELIADC Tariff has delivered financial and system benefits to all customers, though financial benefits are less than originally forecast due to international market changes. System benefits are acknowledged but lack concrete evidence, and the tariff has helped insulate other customers from increased fuel and power costs, despite PHP bearing higher costs than forecast.

Cause Codes and Cost Sharing Variability In its submission, BW provided: The increase in Cause Code 5 hours from 2024 is concerning, if only because NSPI is only refunding 75% of the incremental costs of those deviations to its other custo...

AI summary The document discusses concerns around Cause Code 5 hours and cost-sharing under the ELIADC Tariff. It highlights that NSPI refunds only 75% of incremental costs from Cause Code 5 deviations to other customers, while PHP pays the full incremental cost. The Off-Schedule Charge is an incentive mechanism to encourage adherence to dispatch instructions and is fully recovered from PHP.

uch information, PHP defers to NS Power (and ultimately the Board) as to what improvements can and should be made to future reporting to address stakeholder comments and the FAM Audit recommendations. Finally, PHP notes that once again, bo...

AI summary PHP highlights discrepancies in the calculated ELIADC benefit for other customers, noting it is significantly below the $10 million/year benefit expected by NS Power in 2019. PHP also points out that actual costs incurred were much higher than forecasted, impacting the overall cost contributions and tariff calculations.