II.B.3.b.ii. Risk Management Documents NSPI's risk management procedures are presented in the Fuel Manual. Provided as "Links" to the Fuel Manual, the key documents that contain NSPI's approach to risk management are (1) the NSPI Fuel Proc...
AI summary The document outlines NSPI's risk management procedures, including key documents such as the NSPI Fuel Procurement Risk Management Policy & Procedures, the Emera Credit Policy, and the NS Power Fuel Hedging Plan. These documents define roles and responsibilities, including those of the CROC and the middle office, in managing various types of risk.
II.B.3.b.iv. Audit Period Results While we discuss in our FAM Accounting chapter more detail about NSPI's controls and their performance during the Audit Period, we generally observed that NSPI takes the role of the FST seriously and that...
AI summary The audit period results highlight that NSPI's Fuel Adjustment Mechanism (FAM) processes were well-managed, with appropriate approvals and risk assessments. NSPI adhered to its risk management policies, though it reached or exceeded solid fuel transaction limits during the audit period. As coal use declines due to environmental and regulatory factors, NSPI may need more detailed reviews of solid fuel procurement.
orary, lasting only to the second or third quarter of 2025. Still, the CROC memo on this subject is instructive and illustrates the risks of the transaction and NSPI's coal purchasing more generally: Cucuta is a principal crossing point fr...
AI summary The CROC memo highlights the risks associated with NSPI's coal purchases from Cucuta, Colombia, due to rising violence, attacks on coal mines, and corruption allegations. Despite these risks, NSPI proceeded based on its Fuel Manual and a reasonable rationale, though the transaction increased its credit risk.