Topic:"Dcrr" in M12551

Application for Annually Adjusted Rates for 2026 Redacted 1 • ADC Load Shifting Credit (calculated post-Tariff year by NS Power based on actual 2 system benefits). 3 4 8.1 ELIADC Energy Charge 5 6 The annual ELIADC Energy Charge is calcula...

AI summary The document outlines the calculation of the ELIADC Energy Charge, which includes components such as the Customer Baseline Cost, Fixed Cost Recovery, Customer Baseline Adder, and Variable Capital Charge, all aimed at covering NS Power's incremental costs to serve PHP.

DEMAND CHARGE $5.452 per month, per kilowatt (kW) of monthly standby contract demand.

AI summary The document specifies a demand charge of $5.452 per month, per kilowatt (kW) of monthly standby contract demand.

DSM COST RECOVERY RIDER The Demand Side Management Cost Recovery Charge is not applicable to PHP, and PHP will have no standing to participate in DSM-related proceedings.

AI summary The Demand Side Management Cost Recovery Charge does not apply to PHP, and PHP is excluded from participating in DSM-related proceedings.

EXTRA LARGE INDUSTRIAL ACTIVE DEMAND CONTROL TARIFF Page 4 of 8 (a) It becomes apparent that the CBL Energy Charge plus the CBLA plus the Variable Capital Charge will not result in the recovery of the actual incremental cost to serve plus...

AI summary The text outlines conditions under which the CBL Energy Charge, CBLA, and Variable Capital Charge may not recover the actual incremental cost to serve plus $5/MWh FCR. It also describes scenarios that could lead to a submission to the Board for expedited adjudication if PHP and NS Power cannot agree on necessary changes.

DSM COST RECOVERY RIDER The Demand Side Management Cost Recovery Charge is not applicable to PHP, and PHP will have no standing to participate in DSM-related proceedings.

AI summary The Demand Side Management Cost Recovery Charge does not apply to Port Hawkesbury Paper LP, and the company will not be able to participate in DSM-related proceedings.

GENERATION REPLACEMENT AND LOAD FOLLOWING TARIFF Page 2 of 5 This tariff is available to: - (a) Customers who have their own qualifying generating facility of not less than 2,000 kW of aggregate capacity, as defined under Special Condition...

AI summary This tariff outlines the Generation Replacement and Load Following Service available to customers with qualifying generating facilities or those supplying energy to Non-Utility Owned Generation sites. It details how energy will be supplied, pricing mechanisms, and customer responsibilities in cases of supply interruptions, including the requirement for customers to reduce load promptly when notified.

DEMAND CHARGE $3.3975.452 per month, per kilowatt (kW) of monthly standby contract demand.

AI summary The document specifies a demand charge of $3.3975.452 per month, per kilowatt (kW) of monthly standby contract demand.

COST OF ELECTRICITY UNDER THE ELIADC TARIFF The price paid by PHP for electricity under this Tariff will be based on the forecast incremental cost to serve PHP at an assumed levelized baseline load level, plus an adder to contribute to the...

AI summary The ELIADC Tariff sets the price PHP pays for electricity based on forecast incremental costs, plus an adder to reduce service costs for other NS Power customers, with a credit for system savings from PHP's Active Demand Control. The pricing elements include CBL Cost, CBL Energy Charge, CBLA, Variable Capital Charge, and Active Demand Control Credit.

ACTIVE DEMAND CONTROL AND SCHEDULE VARIANCE NS Power shall be entitled to actively manage PHP's load in accordance with the terms and conditions set out in the Active Demand Control – Energy Supply Protocol attached as Schedule 1 to this T...

AI summary NS Power is allowed to manage PHP's load under the Active Demand Control Protocol. NS Power must annually report system savings and load shifting benefits to the Board, including impacts of schedule variances. PHP receives a 25% credit based on the cost differential between CBL Cost and actual annual cost to serve. The report must be submitted within 60 days of the tariff year end.

DSM COST RECOVERY RIDER The Demand Side Management Cost Recovery Charge is not applicable to PHP, and PHP will have no standing to participate in DSM-related proceedings.

AI summary The Demand Side Management Cost Recovery Charge does not apply to Port Hawkesbury Paper LP (PHP), and PHP is excluded from participating in DSM-related proceedings.

NON-CONFIDENTIAL 1 Request IR-14: 2 3 In Appendix I EO there are Demand Side Management Cost Recovery Rider Charges. Why 4 are these included as part of the AARs? 5 6 Response IR-14: 7 8 The Demand Side Management Cost Recovery Rider (DCRR...

AI summary The document addresses a request regarding the inclusion of Demand Side Management Cost Recovery Rider (DCRR) Charges in the Alternative Adjustment Rate (AARs). The response clarifies that these charges are informational and were filed for approval in the 2026 DCRR proceeding (M12521).

NON-CONFIDENTIAL 1 Decrease in ancillary generation related costs of 19 percent between the submitted OATT 2 applications in the 2023-2024 GRA and the 2026-2027 GRA. 3 4 Exclusion of the interruptible credit amount of $11.2 million from th...

AI summary The submitted OATT applications show a 19% decrease in ancillary generation costs between the 2023-2024 and 2026-2027 GRA periods. However, the exclusion of $11.2 million in interruptible credit from standby demand charges caused a 76% increase in demand charge costs, partially offset by a 6% rise in demand usage. A 60.5% residual imbalance is attributed to the cross-over effect.

3.7 Billing and Collection Billing and collection arrangements between each LRS and its customers are matters for consideration in the Retailers Regulations and Code of Conduct, and are not part of this design basis document. Billing and c...

AI summary The document outlines that billing and collection arrangements between NS Power and LRS are governed by the Retailers Regulations and Code of Conduct, and should be addressed in three categories: customer-specific billings, aggregate billings, and specific mechanisms such as the Fuel Adjustment Mechanism and DSM cost recovery.

3.7.3 Fuel Adjustment Mechanism (FAM), DSM Cost Recovery, and Miscellaneous Charges The FAM tariff includes a provision that outstanding FAM balances in respect of customers migrating to non-FAM be charged to those customers. NS Power will...

AI summary The FAM tariff includes provisions for charging outstanding balances to customers migrating to non-FAM. DSM cost recovery is expected to apply to both Bundled Service and RtR customers. Interval meter installation and other miscellaneous charges will be recovered at cost, billed to the LRS as they are necessary for load aggregation.

Annually Adjusted Rates for 2026 REI IR-18 Attachment 1 Page 20 of 41 REDACTED (CONFIDENTIAL INFORMATION REMOVED) To the extent that NS Power recovers fixed costs through the EBS tariff (top-up net of spill) and the Standby Service tariff,...

AI summary The document discusses the recovery of fixed costs by NS Power through the EBS and Standby Service tariffs, noting that the RtR Market Transition Tariff would recover lower fixed costs. It also mentions that fuel adjustment mechanism and DSM cost recovery are addressed separately in another section.

2026 COSS Methodology Disproportionately impacts RtR Customers The RtR tariffs were developed and approved under a different cost allocation model and therefore do not reflect the substantial shifts in demand-related allocations now propos...

AI summary The 2026 COSS methodology disproportionately impacts RtR customers by shifting costs from energy to demand, increasing demand charges and misaligning cost allocation with the current framework. This could undermine competition in the RtR market and contradict legislative objectives, requiring a tariff review before Q4 2026.

6.0 EVIDENCE OF PORT HAWKESBURY PAPER LP PHP's evidence and submissions indicated "support of the proposed 2026 ELIADC Energy Charge - of $75.87/MWh as filed, with a requested effective date of January 1, 2026."[29](#page-19-1) PHP also pr...

AI summary Port Hawkesbury Paper LP (PHP) supports the proposed 2026 ELIADC Energy Charge of $75.87/MWh with an effective date of January 1, 2026, and provided general responses to comments on the interim approval of this charge.

DEMAND CHARGE $5.6165.601 per month, per kilowatt (kW) of monthly standby contract demand.

AI summary The document specifies a demand charge rate of $5.6165.601 per month, per kilowatt (kW) of monthly standby contract demand.

COST OF ELECTRICITY UNDER THE ELIADC TARIFF The price paid by PHP for electricity under this Tariff will be based on the forecast incremental cost to serve PHP at an assumed levelized baseline load level, plus an adder to contribute to the...

AI summary The ELIADC Tariff determines the cost of electricity for PHP based on forecast incremental costs, adders, and credits for system savings from Active Demand Control. This includes components like Customer Baseline Energy Cost, Variable Capital Charge, and an Active Demand Control Credit.

DSM COST RECOVERY RIDER The Demand Side Management Cost Recovery Charge is not applicable to PHP, and PHP will have no standing to participate in DSM-related proceedings.

AI summary The Demand Side Management Cost Recovery Charge does not apply to PHP, and PHP is excluded from participating in DSM-related proceedings.

7.3.1.2 Annually Adjusted Energy Savings Credit The Annually Adjusted Energy Savings Credit is designed to credit the LRS with any non-fuel energy-related cost savings arising from freed-up capacity on NS Power's system as a result of a de...

AI summary The Annually Adjusted Energy Savings Credit is a mechanism to credit LRS with non-fuel energy-related cost savings from freed-up capacity on NS Power's system when bundled service load departs to the RtR market. NS Power does not project savings in this category for 2026 and maintains a zero value. Questions are raised regarding the rationale and supporting information from LRS companies.

1. NS Power has stated that higher SO2 emission limits have resulted in lower marginal costs. Please confirm the SO2 emissions associated with NS Power production in 2026, the applicable SO2 emission limits, and the remaining headroom unde...

AI summary The document presents a series of questions to NS Power regarding SO2 emissions, marginal costs, surplus energy delivery, and sensitivity analyses related to commodity price volatility, Muskrat Surplus Energy, and wind project delays. It also requests confirmation on the inclusion of the Goose Harbour Lake wind farm in the 2026 PHP CBL load and a comparison of marginal and average costs under different tariff scenarios.

ysis showing the impact on marginal and average costs if PHP continues to receive service under the ELIADC through 2026 versus taking service under a to-be-filed successor tariff which may be above-the-line. Please quantify the potential r...

AI summary The text consists of a series of questions directed at NS Power regarding the financial and operational implications of various scenarios, including the impact of ELIADC, accuracy of wind generation data, forecasting methods, risk management, and the potential for more frequent marginal cost updates in the RtR market.

ce. The Company does not project savings in this cost category and proposes that the current value of zero remains in effect in 2026. Reference: RTT Demand Savings Credit, page 36, lines 17-23. The Annually Adjusted Demand Savings Credit i...

AI summary The Company does not project savings in the Annually Adjusted Demand Savings Credit cost category and proposes maintaining the current value of zero for 2026. This credit is intended to pass non-fuel demand-related cost savings to the LRS due to freed up capacity from RtR market participation, but the Company's ability to mitigate costs is limited by its need to maintain generation capacity.

COST OF ELECTRICITY UNDER THE ELIADC TARIFF The price paid by PHP for electricity under this Tariff will be based on the forecast incremental cost to serve PHP at an assumed levelized baseline load level, plus an adder to contribute to the...

AI summary The ELIADC Tariff sets the price PHP pays for electricity based on forecast incremental costs, an adder for reducing service costs for other customers, and a credit for system savings from Active Demand Control. The tariff includes components like CBL Cost, CBL Energy Charge, and a credit to incentivize PHP's participation in demand control.

Customer Baseline Energy Charge, Customer Baseline Energy Cost, and Contribution to Utility Costs In advance of each tariff year, PHP shall advise NS Power of its forecast annual and monthly energy requirements for the subsequent calendar...

AI summary The document outlines the calculation method for the Customer Baseline Energy Charge (CBL Energy Charge) and related components, including the CBL Adder (CBLA) and Variable Capital Charge (VCC), which are used to determine the ELIADC Energy Charge. The process involves forecasting energy requirements, calculating incremental costs, and applying specific formulas based on forecasted CBL Cost levels.

DSM COST RECOVERY RIDER The Demand Side Management Cost Recovery Charge is not applicable to PHP, and PHP will have no standing to participate in DSM-related proceedings.

AI summary The Demand Side Management Cost Recovery Charge does not apply to Point Tupper Hydro (PHP), and PHP is excluded from participating in DSM-related proceedings.