Topic:"Debt Service Coverage Ratio" in M11990

6 Bloomberg and the method used in prior years. As the short-term debt represents a small portion 7 of the Company's capital structure, the impact of a difference in short-term interest rates is not 8 significant to the forecast WACC rate....

AI summary NS Power is proposing to use Bloomberg data for forecasting short-term interest rates, citing its reliability and improved forecasting process. The impact of this change on the WACC is minimal, and the company's current debt ratings are BBB (high) by DBRS and BBB- by S&P Global.

2025 Budget 1 (1) (2) (3) (4) (5) (6) (7) (8) 2 2025 Cost Cost Weighted Weighted Average Pre-tax After-tax Pre-tax After-tax 3 Opening Closing Capital Capital Ratio Factor Factor Cost Cost 4 5 Estimated Cost of Capital 6 7 Short-term debt...

AI summary The 2025 Budget table outlines the estimated cost of capital for short-term and long-term debt, as well as common equity, with weighted average costs provided. It includes figures for opening and closing balances, capital ratios, and pre-tax and after-tax cost factors.

NON-CONFIDENTIAL 1 Request IR-2: 2 3 Please refer to pages 4 and 5 of Appendix A of the Application dated November 28, 2024. 4 5 (a) Please provide the date of the forecasts used to prepare the proposed short-term and 6 long-term debt rate...

AI summary The response to Request IR-2 explains that the interest rates used in the forecast were retrieved on August 20, 2024, and are in compliance with the NSUARB directive from M11563. The company notes that the most recent forecast rates from January 15, 2025, would result in a WACC rate of 6.64 percent, with short-term and long-term debt rates at 4.26 and 5.08 percent, respectively. Changes in forecast rates typically have limited impact on the company's weighted average cost of capital.

1 Request IR-1: 2 3 (a) Please confirm that the methodology for calculating short term debt in this 2025 4 Application includes two variations to the prior methodology approved: (1) 5 NSPI is using the Bloomberg Outlook rate, and (2) the C...

AI summary The request seeks clarification on changes in the methodology for calculating short-term debt in the 2025 application, specifically the use of Bloomberg Outlook rates and CORRA. The response confirms that the methodology remains consistent with prior approvals, with CORRA adopted as the benchmark rate following CDOR's discontinuation.

13 14 (c) NS Power estimates deferred financing costs in 2024 would decrease by approximately $9 15 thousand as a result of applying the updated WACC/AFUDC rate. The rounded WACC 16 rate would decrease from 6.66 percent to 6.65 percent. 17...

AI summary NS Power estimates deferred financing costs in 2024 will decrease due to an updated WACC/AFUDC rate. The use of the Bloomberg Outlook consensus rate improves efficiency and accuracy in forecasting interest rates for Canadian Treasury Bills.

2025 Budget 1 (1) (2) (3) (4) (5) (6) (7) (8) 2 2025 Cost Cost Weighted Weighted Average Capital Pre-tax After-tax Pre-tax After-tax 3 Opening Closing Capital Ratio Factor Factor Cost Cost 4 5 Estimated Cost of Capital 6 7 Short-term debt...

AI summary The document provides an overview of the 2025 budget, focusing on the estimated cost of capital, including details on short-term and long-term debt, common equity, and weighted average costs. It includes figures for opening and closing balances, capital ratios, and cost factors.

All In CP Rates 4.47% 4.18% 3.97% 3.88% Interest Rate Calculation per WACC methodology Interest Rate Calculation per WACC methodology Opening, Short-Term Debt 9,835 Ending, Short-Term Debt 165,932 Average Short-Term Debt Balance, 2025 87,8...

AI summary The document provides interest rate calculations based on the WACC methodology, showing changes in short-term debt balances and associated interest expenses over time. It outlines the average short-term debt balance for 2025 and the cost of short-term debt at 5.19%.

WACC and AFUDC Rates for 2025 Application (NSUARB M11990) NSPI Responses to NSUARB Information Requests 1 Request IR-3: 7 process to calculate NS Power's credit spread as noted in response to (a) above remains 8 the same. However, because...

AI summary NSP explains that its credit spread has decreased compared to the Term CORRA benchmark rate but remains consistent with 2024 levels when compared to treasury bills. A credit downgrade in 2023 led to higher borrowing costs due to a different investor base, and NSP assumes its current credit rating remains stable with no migration expected.

PARTIALLY CONFIDENTIAL (Attachment Only) 1 Request IR-6: 2 3 (a) Please provide a schedule detailing the projected opening and closing balances of 4 construction work in progress for 2025, to which the proposed AFUDC rate is 5 expected to...

AI summary The document outlines a request for information regarding NS Power's projected construction work in progress balances and AFUDC charges for 2025, as well as its equity ratios for 2024 and 2025. NS Power provides some details but notes it cannot disclose actual capital structure data until its 2024 Regulated Financial Statements are completed.

- NSPI has an $800 million credit facility maturing in December 2029. - The credit facility is used to backstop the Company's $800 million commercial paper (CP) program and to partially fund its working capital and capex requirements. Avai...

AI summary NSPI has an $800 million credit facility maturing in December 2029, used to backstop its commercial paper program and support working capital and capital expenditures. The facility is subject to a debt-to-capital ratio covenant, which NSPI is currently complying with.

Long-term Debt (CAD millions as at September 30, 2024) 2024 2025 2026 2027 2028 Thereafter Total Total long-term debt 0 425 40 0 0 3,268 3,733 % 0 11 1 0 0 88 100 - NSPI's long-term debt maturities are well spread out with minimum refinanc...

AI summary NSPI's long-term debt maturities are well spread out, with minimal refinancing risk in the near term. The majority of the debt is expected to be repaid after 2028.

- The Company has a debenture covenant, which states that NSPI would not incur debt if its funded debt would be more than 75% of total capitalization. The debenture covenant is not expected to restrict the Company's operations going forwar...

AI summary The Company has a debenture covenant limiting NSPI's debt to 75% of total capitalization. This covenant is not expected to restrict operations or pose challenges in the near to medium term.

20 NS Power Response: 21 - 22 NS Power agrees maintenance and improvement of the Company's credit rating is imperative and 23 continued access to commercial paper markets is important for both the Company and Customers - 24 due to the sign...

AI summary NS Power emphasizes the importance of maintaining its credit rating and access to commercial paper markets for cost savings. The company provides quarterly MD&A reports that include compliance with financial covenants, and believes annual FFO to debt calculations are sufficient for credit rating agencies. NS Power states that no additional information is needed for the Board beyond what is already available.

2025 Budget 1 (1) (2) (3) (4) (5) (6) (7) (8) 2 2025 Cost Cost Weighted Weighted Average Capital Pre-tax After-tax Pre-tax After-tax 3 Opening Closing Capital Ratio Factor Factor Cost Cost 4 5 Estimated Cost of Capital 6 7 Short-term debt...

AI summary The 2025 Budget outlines the estimated cost of capital for short-term and long-term debt, as well as common equity, with details on pre-tax and after-tax costs, weighted averages, and capital ratios. This information is critical for evaluating financial strategies and capital structure.

2025 Budget 1 (1) (1) Proposed Projected Weighted 2 Rates 2025 Actual Interest Rate Interest Rates Average Interest Rate Total Interest Cost 3 Capitalization: 4 Debt % 60.0% 5 Common % 40.0% 6 Total Regulated Capitalization ($): $6,002 7 8...

AI summary This section outlines the 2025 budget proposal, focusing on regulated capitalization, financial ratios, and debt details. It provides breakdowns of short-term and long-term debt, including maturity dates, interest rates, and projected interest costs, with an emphasis on the capital structure and financial obligations for the year.

1 3 4 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Total 5 6 Forecasted Balances of CIB debt by month 35,703 35,703 35,792 35,792 35,792 77,457 77,457 77,457 83,356 83,356 83,356 89,934 89,934...

AI summary The table provides forecasted balances of CIB debt and corresponding interest expenses by month from December 2024 to December 2025. The CIB interest rate is consistently 2.51%, and the interest expense increases as the debt balance increases over time.

1 2024 M11990 2 3 NOVA SCOTIA UTILITY AND REVIEW BOARD 4 IN THE MATTER OF: The Public Utilities Act, RSNS 1989, c.380, as amended 5 - and - 6 IN THE MATTER OF: An application by Nova Scotia Power Incorporated (NS 7 Power) for approval of W...

AI summary The Nova Scotia Utility and Review Board is handling an application by Nova Scotia Power Incorporated for approval of its 2025 Weighted Average Cost of Capital and Allowance for Funds Used During Constructions Rates. The Industrial Group has submitted information requests regarding changes in methodology for calculating short-term debt.

"NS Power's debt is currently rated BBB (high) by DBRS and BBB- by S&P Global (S&P)." Exhibit N-1, p. 8 at line 22. a) Please provide electronic copies of the most recent credit rating reports issued by DBRS and S&P Global (S&P) consistent...

AI summary The text includes requests for credit rating reports from DBRS and S&P Global, inquiries about the methodology used for short-term interest rate forecasts, and a request for spreadsheet data showing how NS Power's forecast methodology has been updated to reflect the Term CORRA benchmark reference rate.