N-52024-2025 Bates White FAM Audit Report - Redacted
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ation about the goals and guidelines applicable to NSPI and ERM employees that should serve as the guiding document on a day-to-day basis. Fuel Manual Revision 14 became effective on October 17, 2024. Conclusion II-9: NSPI's risk managemen...
AI summary The document discusses NSPI's risk management processes, noting that they are reasonable but partially outdated. It highlights the impact of the March 2025 cyber event on NSPI's internal controls, including the loss of access to key systems like Aligne Fuels and Allegro, which required manual workarounds.
NSPI explained that in the aftermath of the cyber event, the loss of the Process Information ("PI") system impacted its short-term load forecasting process. Specifically, the short-term load forecasting model lost its automation (from PI)...
AI summary NSPI's short-term load forecasting was significantly impacted by a cyber event, leading to manual updates instead of automated ones. Although NSPI denies biasing the model, the higher MAPE and upward bias suggest an attempt to ensure adequate online resources during the event. This approach, while understandable, may lead to overcommitment of resources, with significant start-up costs for thermal units.
Process NSPI's processes remain the same as in recent audit periods. NSPI continues to use Aligne Fuels, an off-the-shelf database software owned by Fidelity National Information Services, as its transactional backbone in tracking its soli...
AI summary NSPI continues to use Aligne Fuels as its transactional backbone for managing solid fuel supply chains. A cyber event caused Aligne to be unavailable from April 25 to October 30, 2025, and it was only partially restored by the end of the audit period, with full reliance expected by Q2 2026. NSPI imports solid fuel via marine vessels at two ports in Nova Scotia.
V.C. Conclusions Conclusion V-1: NSPI's use of Aligne to track solid fuel remains appropriate. Aligne allows NSPI to reconcile the entire solid fuel supply chain and interacts directly with other NSPI programs, including NSPI's billing sys...
AI summary The conclusions affirm NSPI's appropriate use of Aligne for solid fuel tracking, note Aligne's unavailability due to a cyber event from April 25 to October 30, 2025, and confirm that NSPI's solid fuel receipt processes remain reasonable and effectively managed.
VI.B.10. NSPI's Process for Biomass Fuel Receipt Information NSPI uses the Aligne database in tracking biomass deliveries. NSPI receives all biomass deliveries by truck. Upon arrival, deliveries are weighed using WeighWiz, which is a comme...
AI summary NSPI uses the Aligne database and WeighWiz system to track biomass deliveries, which are then entered into the LIMS system for inventory management. A Senior Contract Administrator for Biomass oversees contract management and invoice verification. A cyber event caused Aligne to be unavailable from April 2025 to October 2025, with limited access for testing and data backfilling continuing through the end of the audit period.
XI.A. Background A process has been in place since 2021 to study and implement new tools and processes to improve economic dispatch. As of Q1 2026, the Economic Dispatch Optimization Solution ("EDOS") was not yet implemented. Training for...
AI summary The document outlines the ongoing process to implement new tools and processes for economic dispatch, noting that the Economic Dispatch Optimization Solution (EDOS) was not yet implemented as of Q1 2026. It also mentions the transition of the system operator from NSPI to an Independent Energy System Operator (IESO-NS) starting in 2025. A cyber event resulted in data loss and reduced efficiency, increasing costs.
XI.B.1. Commitment and Dispatch Process NSPI's commitment and dispatch process has remained unchanged since the 2021-2022 audit. It is primarily a daily process supported by weekly discussions and analysis. The process was modified from st...
AI summary NSPI's commitment and dispatch process has not changed since the 2021-2022 audit, except for modifications due to a cyber event. The process involves weekly studies by system security engineers, meetings on Thursdays, and daily procedures from Monday to Friday.
the current audit period as a result of the April 2025 cyber event. 562 2024 and 2025 NSPI Q4 FAM Reports, tabs "11(3)" and "5 (3)". 563 2024 and 2025 NSPI Q4 FAM Reports, tabs "11(3)" and "5 (3)". We evaluated the economics of PT Biomass...
AI summary The economics of PT Biomass were evaluated by comparing its marginal cost to NSPI's system marginal cost. The unit was found to be economic throughout the period, largely due to the OBPS adjustment and a fixed fuel price. The modeling of PT Biomass uses estimated average parameters and historical data, with fuel costs and heat rates being imprecise in some calculations.
erve on mainland Nova Scotia, or imported energy may become the largest possible contingency, requiring additional ten-minute reserve. In these cases, NSPI will hold reserves above the 168 MW minimum. Energy and operating reserves (10-minu...
AI summary The document discusses the management of energy and operating reserves in Nova Scotia, including the impact of a cyber event on data availability for 2024 and early 2025. It highlights that reserve deficiencies occurred in 42 hours for 10-minute reserves and 23 hours for 30-minute reserves during the available data period.
XI.C. Conclusions Conclusion XI-1: NSPI, to its credit, was able to keep its system running reliably through the period following the cyber event. However, the loss of automation and information required for scheduling and dispatch would h...
AI summary The document highlights NSPI's ability to maintain system reliability post-cyber event but notes inefficiencies and increased costs due to lost automation. It identifies issues with scheduling processes, RTED functionality, and dispatch of PH Biomass. There are concerns about understated system marginal costs and increased GHG emissions. A new Economic Dispatch Optimization Solution is expected to address some inefficiencies.
-Year System Outlook," section 7.1. that the figure does not include data from April 1, 2024 (hour ending 01:00) to April 25, 2025 (hour ending 02:00) due to the loss of that data in the cyber event. Because many transactions must rely on...
AI summary The document discusses the impact of a cyber event on data collection during the Audit Period, specifically affecting data from April 1, 2024, to April 25, 2025. It also notes limitations in power imports due to the New Brunswick-Nova Scotia intertie's limited capability and the transmission requirements in New Brunswick.
dging products are effective. NSPI already presents its hedging effectiveness in quarterly updates to SWG, including calculated slope coefficients, so we do not include a recommendation on this point. Conclusion XIII-16: NSPI conducted app...
AI summary The conclusions highlight NSPI's effective hedging processes, including interim rebalancing and approval procedures. However, unexecuted hedges and the impact of a cyber event on data analysis are noted, with a recommendation to improve the efficiency of the hedging lifecycle.
XIV.A. Background A 2009 NSEB order approved the implementation of NSPI's Fuel Adjustment Mechanism ("FAM"). The FAM provides for an annual adjustment to recover fuel and purchased power costs on a more current basis, in order to address t...
AI summary The document discusses the Fuel Adjustment Mechanism (FAM) implemented by Nova Scotia Power Inc. (NSPI) in 2009, its accounting review by BDO for 2024 and 2025, and the impact of a 2025 cybersecurity incident on NSPI's financial reporting systems. The incident led to the loss of access to Oracle EBS and the use of alternative processes for financial reporting, including manual records and a new ERP system.
XIV.B.6. Fuel Master Agreements and Purchase Order Controls Verification BDO's review and testing of fuel procurement, invoicing, and verification processes did not disclose any instances where costs paid for fuels procured exceed contract...
AI summary BDO reviewed NSPI's fuel procurement and invoicing processes and found no discrepancies in costs paid exceeding agreed prices. The review encountered challenges due to a cybersecurity incident and system upgrades, but alternative audit evidence was used without finding exceptions. Purchase orders and approvals were properly documented.
XV.B.1. Implementation of the ELIADC There are several important features of the ELIADC that relate to active demand control and pricing: - PHP's load is incorporated within PortOps during the Day Ahead and Intra Day schedule creation and...
AI summary The ELIADC (Extra Large Industrial Active Demand Control Tariff) incorporates PHP's load into PortOps for scheduling and optimization, with fixed rate payments based on forecasted costs. Due to the 2025 cyber incident, PortOps was unavailable for a period, leading to manual scheduling using PLEXOS and impacting real-time schedules until August 2025.
d via PI data and automatically imported into PortOps. When the model dispatches PHP it considers the build/draw of pulp from the unique operating modes and its impact on the pulp storage position.836 Under normal operations, the Day Ahead...
AI summary The document discusses the dispatch and scheduling of PHP (Pulp Hydro Power) under normal operations and during the cyber event in 2025. It outlines the use of PortOps for scheduling, the impact of the cyber event on system functionality, and the manual adjustments made by PHP and NSPSO during the disruption.