Topic:"Debt Service Coverage Ratio" in M12663

NON-CONFIDENTIAL 20 (a) Due to the inherent uncertainty with IESO Nova Scotia's request for temporary financial 21 relief at the time of submission, the Application budgeted finance costs were based on 22 maximum funding obtained from cred...

AI summary The document outlines the financial considerations for IESO Nova Scotia's temporary financial relief application, including assumptions about credit facilities, financing costs, and subscription fees for payroll and accounting software. It also details the budgeting approach for payroll and accounting subscription services and estimates financing costs based on interest rates and loan balances.

NON-CONFIDENTIAL Total compensation $ $1,651k $3,720k # of months 6 12 Avg annualized cost per employee $143k $177k As demonstrated in the table above, the number of technical staff FTEs decreased from 2025/2026 to 2026/2027. However, once...

AI summary The table shows a decrease in technical staff FTEs from 2025/2026 to 2026/2027, but annualized costs increased due to a 3% cost of living adjustment, a 0.25% increase in the burden rate, and a $300k adjustment to maintain consistency with NS Power's compensation plan.

PARTIALLY CONFIDENTIAL 1 Request IR - 24 2 Reference: N-1(i), Exhibit B-2, pdf p.27-29 (Tables 13 and 14), forecast $0.58 million financing 3 costs on a $10 million provincial operating line at prime (4.5% plus 0.5%) with an assumption 4 t...

AI summary The Industrial Group (IG) requested detailed information regarding the use of a provincial line of credit, including the actual amount drawn, interest rates, balance assumptions, and potential cost savings from a temporary IESO-NS rider. Nova Scotia Independent Energy System Operator (IESO Nova Scotia) responded that as of March 5, 2026, $6.02 million was drawn on the line of credit.

PARTIALLY CONFIDENTIAL 21 22 23 24 25 26 27 (b) Please refer to DGT IR-16 part (c). The daily balance assumption supporting the $0.58M 28 was that the full $10M is drawn for all 365 days of the fiscal year at a rate of 5%, equaling 29 $0.5...

AI summary The text discusses a financial calculation involving a daily balance assumption for a loan, with a total of $0.58M. The $0.50M is based on a $10M draw over 365 days at 5%, and the remaining $0.08M is attributed to interest costs from a potential future loan. A reference is made to the IESO's reply submission regarding financing documents and draw schedules.

Nova Scotia Independent Energy System Operator (IESO Nova Scotia) Responses to The Industrial Group (IG) Information Requests 80  approved future revenue, 81  meaningful credit history, 82  existing material assets, 83  or a loan guara...

AI summary IESO Nova Scotia discusses its need for revenue and financing, referencing the NSEB's recent decision approving the 2025/26 revenue requirement and the temporary financial relief request. It also mentions discussions with RBC regarding financing eligibility and the expectation of a permanent fee and cost recovery mechanism.

The following table details the breakdown of finance costs by sub-category for 2025/2026B, 2025/2026A, and 2026/2027B. ($ millions) 2025/2026B 2025/2026A 2025/2026A vs 2025/2026B % 2026/2027B vs 2025/2026B % 2026/2027B vs 2025/2026A % chan...

AI summary The table details finance costs for different fiscal years, including operating line of credit, external audits, and subscription services. The budgeting methodology assumes maximum funding from credit facilities due to uncertainty in IESO Nova Scotia's request for temporary financial relief.

10 Figure 26 – Summary of IESO Nova Scotia's response to Intervenors Topic Intervenor concern IESO Nova Scotia's explanation/supporting evidence provided101 Financial position The interim period (to March 31, 2027) is excessive and total i...

AI summary The IESO Nova Scotia responds to concerns about the interim period ending March 31, 2027, explaining that it is a backstop to address uncontrollable risks. It also addresses tax clarity, stating that HST impacts would be neutral due to input tax credits and proposes stating fees as 'subject to applicable taxes.'

- 2 requirement application on January 20, 2026 (the "Application"). - 3 Like the previous annual application, IESO-NS has requested a variance account to address any - 4 over or under collection and/or spending as compared to its Board ap...

AI summary The IESO-NS has requested a permanent variance account to address spending discrepancies, including capital and procurement costs. The SBA raises concerns about proper spending oversight, debt from ratepayers, potential duplication of effort with NS Power, and risk allocation for IESO-NS, especially with upcoming changes by 2030.

- 15 the $10M Provincial Line of Credit and 12 months of interim fees from NS Power: Source Amount % Allocation Interest IESO Weighted Rate Average Interest Rate Province of Nova Scotia - LOC $ 10,000,000 47% 2.234% (1) 1.044% NSPI Interim...

AI summary The text outlines a financial arrangement involving a $10M Provincial Line of Credit and 12 months of interim fees from NS Power. The allocation percentages and interest rates are provided, with the Province of Nova Scotia and NSPI contributing different portions.

Classification and Measurement IESO Nova Scotia's financial liabilities include accounts payable, accrued liabilities, and a line of credit. - Financial liabilities are initially recognized at fair value, net of directly attributable - tra...

AI summary The document discusses the classification and measurement of financial liabilities for IESO Nova Scotia, including accounts payable, accrued liabilities, and a line of credit. These liabilities are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method.

- 26 (a) Please confirm the actual amount drawn down on the provincial line of 27 credit to date and the actual interest rate being charged. 1 2 (b) Provide daily balance assumptions and rate forecasts underlying the $0.58 million. 3 4 (c)...

AI summary The text includes several requests related to financial and operational planning, including confirming the amount drawn down on a provincial line of credit, interest rates, daily balance assumptions, draw profiles, and the use of restricted cash or grants to offset borrowing. There are also requests for explanations regarding external consulting costs and interconnection study recoveries.

Page 7 of 13 February 19, 2026 Ms. Henwood If the Board were to approve a $950,000 monthly assessment from February 2026 through March 2027, the total interim collections would be approximately $13.3 million. That amount is materially less...

AI summary The document outlines a proposed monthly assessment of $950,000 from February 2026 to March 2027, totaling $13.3 million. This is significantly less than the $20.16 million in combined revenue requirements for 2025/2026 and 2026/2027. The request for an effective date of February 1, 2026, with the first payment due by April 1, 2026, is explained as a measure to avoid liquidity issues before the Board's decision.

that provides some measure of flexibility and assurance that 276 it will have the funds to carry out its mandate irrespective of which "bucket" of spend that the 277 associated costs might fall. 278 279 IESO Nova Scotia acknowledges that t...

AI summary IESO Nova Scotia acknowledges its current early stage and expects improved budget predictability as it achieves full staffing. It has implemented mechanisms like the OM&A Deferral and Variance Account (M12412) and the proposed Net Revenue Requirement Deferral and Variance Mechanism (DVM) to manage costs and ensure regulatory oversight.

1 early stage, vacancies and external support costs must be understood together, as IESO Nova 2 Scotia requires flexibility to carry out its mandate while continuing to recruit and work toward 3 steady-state operations. 4 5 IESO Nova Scoti...

AI summary IESO Nova Scotia emphasizes the need for flexibility in its operations and the proper inclusion of procurement-related costs in the Application. It also supports the approval of the DVM as an extension of the Net OM&A Deferral and Variance Account, aligning with prior Board direction in M12412.

LIST OF UNDERTAKINGS NO. PAGE NO. 14 including capital and procurement. It has also been 15 renamed the Net OM&A Deferral and Variance Account. 16 The SBA understands that the creation 17 of a new IESO NS, where there has never been one be...

AI summary The text discusses concerns regarding the establishment of the IESO-NS, including questions about debt, spending transparency, potential duplication of effort with NS Power, and the proper assessment and assignment of risks related to procurement and contracts. It highlights the need for clarity and accountability in financial and operational matters.

IESO NOVA SCOTIA PANEL 241 Cr-ex, (Rudderham) 1 application to say why we believe we need to continue to 16 number minus another. Like, what policy maybe you 17 could provide more information of what you're looking for? 18 Maybe I'll ask y...

AI summary The text discusses the current Weighted Average Cost of Capital (WACC) and the deferral account, noting that accounting policies are in progress and awaiting finalization. The WACC is tied to the provincial line of credit, which is confidential, and includes a small proportion from Nova Scotia Power's interim fee.