Topic:"Credit Ratings" in M13133

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.

l be less debt in Nova Scotia Power itself. - From an accounting perspective, Nova - Scotia Power will consolidate the limited partnership, but - the credit rating agencies will exclude the billion - dollars of securitization debt when the...

AI summary The discussion focuses on the financial structure and accounting considerations for Nova Scotia Power, including the consolidation of a limited partnership, the exclusion of securitization debt by credit rating agencies, and the establishment of a capital reserve account for credit enhancement purposes.

17 Request IR-4: - 18 With respect to NS Power's statement that a $1 billion bond issuance compares favourably to a 19 lesser amount, please explain in terms of each of the following: - 20 a) The type of investor attracted to this proposed...

AI summary The request asks NS Power to explain the $1 billion bond issuance in terms of investor types, number of investors, credit ratings, and fees associated with the offering.

8 Request IR-9: - 9 On pg. 16 of its application, NS Power stated: "As noted in the 2025 DDA Annual Report - 10 proceeding, while expanding the scope of a securitization transaction has the potential to increase - 11 customer benefits, pra...

AI summary NS Power's application mentions practical considerations in expanding a securitization transaction, including transaction size, financing costs, and certainty required by credit rating agencies and bond investors. The request asks for a detailed explanation of these considerations.

1 Request IR-33: - 2 On pg. 66 of the technical conference transcript, NS Power stated that rating agencies would omit 3 the securitized bonds in their calculations of credit metrics. - 4 a) Has NS Power confirmed this with credit rating a...

AI summary NS Power claims that credit rating agencies will omit securitized bonds from credit metric calculations. The request asks whether NS Power has confirmed this with the agencies and if there is a risk that the agencies may not omit the bonds.

- 8 (b) Please provide a version of Appendix D with this alternative securitization 9 scenario. - 10 (c) Please explain and quantify any financial or capital-market implications of 11 issuing approximately $750 million rather than $1 billi...

AI summary The text requests detailed financial and market analysis regarding the issuance of securitized bonds, including implications of varying issuance sizes, investor demand, credit ratings, interest rates, and cost comparisons between different scenarios.

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.