Demand Side Management Purchase Agreement in M12887

The SRMC test involves the following steps: 1. Determine the average annual system marginal cost (over 8760 hours in 2025) at the transmission delivery level. In calculating this marginal cost, the effects of exports and load served under the Extra Large Industrial Active Demand Control (ELIADC) Tariff, the successor to the LRT, are removed from the net system load. The 2025 marginal cost of 9.478 cents per kilowatt hour is calculated based on the fuel, incremental heat rate, and variable operating and maintenance (O&M) costs of the unit serving the next megawatt (MW) for each hour.[4](#page-8-1) 2. Determine the average annual marginal cost at the point of consumption of each tested rate class by increasing the average system marginal cost at the transmission level by the p. pp. 7-8

The SRMC test involves the following steps: 1. Determine the average annual system marginal cost (over 8760 hours in 2025) at the transmission delivery level. In calculating this marginal cost, the effects of exports and load served under...

AI summary The SRMC test calculates the system marginal cost at the transmission level and compares it to the unit revenue of each rate class. The test involves adjusting for the effects of exports and the ELIADC Tariff, and determining whether rate classes fail based on their revenue relative to marginal costs.

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Preamble p. p. 10

- higher-priced peak periods to lower-priced off-peak periods, are not expected to materially affect - total customer energy consumption and therefore are not considered in the annual SRMC tests. NS - Power is of the view, however, that th...

AI summary Nova Scotia Power suggests that daily price elasticities should be monitored for time-differentiated rates under the TOU and CPP Domestic rate classes during winter months for SRMC purposes, even though they are not expected to significantly impact total customer energy consumption.

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