Topic:"Debt Service Coverage Ratio" in M13133

- 8 The unrecovered net book value of the thermal generation assets and the associated deferred - 9 financing costs constitute Unretired Generation Costs within the meaning of the Securitization - 10 Regulations and, accordingly, constitut...

AI summary The text discusses the transfer of $713.0 million in unrecovered net book value of thermal generation assets from Property, Plant and Equipment to a Securitization Regulatory Asset, as part of a securitization process under the Securitization Regulations. This is described as Unretired Generation Costs and Securitized Costs that are eligible for securitization.

NS Power Application for Financing Order to Reduce Costs for Customers Redacted - 1 LP such that the LP can service its interest and principal payment requirements to bondholders, as - 2 illustrated in Figure 11 .

AI summary NS Power is seeking a financing order to reduce customer costs, with a focus on ensuring the LP can meet its financial obligations to bondholders, as illustrated in Figure 11.

21 11.8 Indemnity Agreement - 23 An essential part of the securitization transaction is the provision of an Indemnity Agreement by - 24 the Government of Nova Scotia. This is required by credit rating agencies because the security - 25 for...

AI summary The Indemnity Agreement provided by the Government of Nova Scotia is essential for the securitization transaction, as required by credit rating agencies to ensure bondholder protection in case of regulatory changes that could impact bond repayment.

. - So the FAM balance as of September - 30th, 2026 would be consistent with the approved - INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS methodology in the plan of administration for cost - allocation throughout for each customer...

AI summary The discussion centers on the allocation of costs, specifically the FAM balance, and the timing of market entry for financing. It clarifies that the 60-day requirement is a legal requirement, not an expectation, and highlights the need to act quickly due to bond market volatility.

in the LP. - So the LP's got back income no offsetting deduction, if - that makes sense. - MS. McNAMARA: So would the tax - expense in the LP be offset by a deduction in Nova Scotia - Power? - MR. FERGUSON: That's right. Like not - perfect...

AI summary The discussion revolves around the tax implications of transferring assets to a limited partnership (LP) and how this affects Nova Scotia Power's credit metrics. The transfer removes the equity component of financing, reducing taxable income and allowing Nova Scotia Power to reduce debt and equity in line with its capital structure.

riods lower than 30 - years checked or calculated or is that something that - could be done? - MR. FLEMMING: There was certainly not - one included in the application. I'm not sure if we would - be able to issue that tenor of bond for -– t...

AI summary The discussion revolves around bond tenors, discount rates used in net present value calculations, and the impact of shorter-term considerations on revenue requirements. Nova Scotia Power's approved weighted average cost of capital is noted as 6.59 percent, and thermal assets are highlighted as the largest contributor to net present value benefits.

ost benefit from an - NPV and revenue requirements perspective and, as you can - see there, every one of these components, including them, - provides a reduced revenue requirement to customers on a - net present value basis with the inclus...

AI summary The discussion outlines a structure where Nova Scotia Power forms a limited partnership to securitize regulatory assets, issuing bonds and loaning proceeds to Nova Scotia Power. This approach is designed to defer taxes and avoid adverse consequences for customers. Revenue requirements and NPV are considered, with the FAM cost reducing revenue requirements by over $20 million.

NOVA SCOTIA ENERGY BOARD NOTICE OF PUBLIC HEARING Application by Nova Scotia Power Incorporated For Approval of a Financing Order authorizing the securitization of $1 billion in costs, collected through a Securitization Cost Recovery Rider...

AI summary Nova Scotia Power Incorporated has applied for approval to securitize $1 billion in costs, collected through a Securitization Cost Recovery Rider. The costs include deferred financing costs, fuel and purchased power costs, and deferral account balances, among others.

Application by Nova Scotia Power Incorporated For Approval of a Financing Order authorizing the securitization of $1 billion in costs, collected through a Securitization Cost Recovery Rider The Board has received an application from NS Pow...

AI summary Nova Scotia Power Incorporated has applied for approval to securitize $1 billion in costs, including thermal generation asset retirements, fuel and purchased power costs, and deferral accounts, through a Securitization Cost Recovery Rider. The application is under the Public Utilities Act and Financing Orders and Securitized Bonds Regulations.

31 Request IR-11: - 32 a) Are there penalties associated with the early repayment of the ~$600,000,000 of debt that 33 currently funds the assets proposed to be securitized? - 34 b) If so, - 1 i) How much will the penalties be? - 2 ii) Hav...

AI summary The proceeding raises questions about potential penalties for early repayment of a $600 million debt related to securitization, and whether these penalties have been considered in the NPV analysis.

Request IR-8: - Reference: Sections 11.0 and 12.1; Figures 10-11; Appendix A - Please provide NS Power's existing accounting memorandum or other supporting analysis for the - proposed securitization transaction, including the applicable ac...

AI summary Request IR-8 asks NS Power to provide an accounting memorandum and supporting analysis for a proposed securitization transaction, covering recognition, reclassification, financing costs, asset transfers, consolidation, balance-sheet presentation, and illustrative journal entries.

Request IR-8: Refer to N-1, the Application, Section 10.0 Effective Date and Termination, page. 37 of 51, lines 10-24, which states: Once the final terms of the Securitized Bonds have been established, NS Power will file an issuance advice...

AI summary The text outlines provisions related to the Securitized Bonds and Financing Order under the Securitization Regulations, including the conditions for their issuance, irrevocability, and termination. It also raises questions about the use of the term 'defeased,' potential refinancing or transfer of bonds, the impact of the Indemnity Agreement on bond transfers, and the sharing of bond terms with stakeholders.

- 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 Reference: Matter M12661, ELID Application - 3 (a) Please confirm whether any of the matters in dispute in the ELID 4 application affect, or are expected to affect, the amount of the PHP Deferral 5 balance, the $12.2 million forecast bal...

AI summary The document contains questions related to the ELID application, specifically concerning the impact of disputed matters on deferred balances, the calculation of securitization balances, the basis for recovery of deferred costs, and a request for NPV analysis of different recovery timelines.

7 Request IR-30: - 8 Reference: N-1, Application, page 14, lines 21-25 (PHP Deferral); page 15, lines 17-21 - 9 (IESO-NS Deferral); page 20, lines 15-21 (Upfront Financing Costs); page 26, lines 3-6 - 10 (Financing Costs allocation); page...

AI summary The document discusses the allocation methodologies for various deferrals and financing costs, including PHP Deferral, IESO-NS Deferral, and Upfront Financing Costs, and their application to the FAM prepayment. It requests confirmation that the described allocation methods are accurate.

1 FUTURE RECONCILIATION PROPOSAL - 2 Request IR-32: - 3 Reference: N-1, Application, Section 9.0, page 33. Preamble: NSPI proposes a Formula-based True-up Mechanism and notes it will annually calculate the required Securitized Surcharge re...

AI summary NSPI proposes a Formula-based True-up Mechanism to annually calculate the required Securitized Surcharge revenue based on forecast financing costs, reserve account activity, and earnings. The mechanism includes provisions for reviewing adjustments and addressing scenarios where fuel costs are lower than forecast, as well as handling potential reductions in IESO Deferral balance costs.

Request IR-4: - Nova Scotia Power has previously made arrangements to (effectively) securitize FAM balances - with external parties. $500 Million of FAM balances were previously securitized with the - assistance of a Government of Canada l...

AI summary Nova Scotia Power previously securitized $500 million and $117 million of FAM balances over 28 and 10 years, respectively. The request asks for the reasoning behind these terms, the choice of a 30-year term in the current proposal, and the impact of even-annual versus mortgage-style repayment on ratepayers and debt costs.

Request IR-5: - References: Application page 20 - Nova Scotia Power has requested approval for a $5 Million Capital Reserve Account. - Please relate the size of this requested Account to the bond payment schedule that is expected - to resu...

AI summary Nova Scotia Power has requested approval for a $5 million Capital Reserve Account. The request seeks to understand how this account size relates to the bond payment schedule, particularly whether it is sufficient to manage potential cash flow fluctuations if the bond requires semi-annual payments or has a different payment structure.