Topic:"Depreciation Amortization" in M12394

Light Detection and Ranging (LiDAR) is a remote sensing method used for a variety of reasons. 1 Insurance 2 3 Actual insurance costs for 2025 are expected to be $4.4 million, slightly lower than the 4 2025 approved Assessment of $4.6 milli...

AI summary The document discusses insurance and depreciation costs for NSPML, noting a slight decrease in 2025 insurance costs and a projected increase in 2026 O&M costs due to operational activities and inflation. The depreciation policy is based on a 35-year asset depreciation timeline tied to the NS Block transfer agreement.

Date Filed: July 18, 2025 Page 13 of 29 10 that a depreciation study should be updated every 5-7 With the exception of the Woodbine AC station, which is to be transferred to NS Power Inc. 2025 Assessment (M11791), Decision paragraph 36. 1...

AI summary The document discusses the need for updating a depreciation study, noting that no significant changes have occurred since the final costing. An update is planned once the Cable Projection Project is completed in 2026, as recommended by Gannett Fleming.

7 3.3.2 Sustaining Capital 8 9 NSPML anticipates that it will incur sustaining capital expenditures in 2026 for Submarine Cable Protection Project of $32,962,333 (pending approval)10F 11 10 , in addition to 11 $0.5 million of routine capit...

AI summary NSPML anticipates incurring sustaining capital expenditures of $32.96 million for the Submarine Cable Protection Project in 2026, in addition to $0.5 million for routine capital, totaling $33.5 million. This includes only the depreciable amount for 2026.

1 3.3.3 Capital Depreciation 2 3 Consistent with the Final Costs Decision and its approved depreciation policy, NSPML 4 seeks to recover $57.2 million in depreciation during 2026 which is calculated in accordance with NSPML's NSEB approved...

AI summary NSPML seeks to recover $57.2 million in depreciation during 2026, primarily due to the Cable Protection Project. This aligns with the Final Costs Decision and NSPML's approved depreciation policy, which includes the opening rate base plus sustaining capital.

Original Maritime Link Project (in millions of $) 2022 2023 2024 2025 (est.) 2026 (est.) Opening Rate Base 1,752.4 1,689.1 1,631.4 1,576.0 1,516.8 Difference between approved and actual ML Project spend as at December 31, 2021 (4.7) Net ca...

AI summary The document presents financial data related to the Original Maritime Link Project and Sustaining Capital, including rate base changes, capital additions, depreciation, and deferrals. The data spans from 2022 to 2026, highlighting fluctuations in the rate base and capital additions over time. FLG2 is excluded from rate base calculations for rate setting purposes.

CONFIDENTIAL (ATTACHMENT ONLY) 1 Request IR-07: 2 3 4 5 6 Reference: Page 14, lines 3-5. Gannett Fleming has recommended that once NSPML's first material capital project (regarding the Cable Projection Project) is completed in 2026, NSPML...

AI summary The document discusses a request for information regarding NSPML's depreciation study update, including the letter of instruction provided to Gannett Fleming and NSPML's commitment to updating the study in 2026 as part of the 2027 assessment.

Thanks - just one follow up from me. Sent: Monday, June 16, 2025 8:12 AM Subject: RE: NSPML Depreciation Study Update To: Cc: We also wouldn't expect any material items to have fallen off from the original depreciation study in the last fe...

AI summary The discussion revolves around the expectation that material items from the original depreciation study have not significantly changed over the past few years, as items with long useful lives are unlikely to have fallen off the list.

Thanks, www.emera.com Emera Newfoundland & Labradon From: Sent: Monday, June 16, 2025 9:08 AM To: Cc- Subject: Re: NSPML Depreciation Study Update Exercise Caution - This is an external email from: Beware of links or attachments from exter...

AI summary The email discusses the NSPML depreciation study update, noting challenges in locating detailed capital spend data since 2022 due to a cyber event. A net credit of approximately $5 million to rate base was noted as of December 2024, with expectations of a $4 million credit by the end of 2025. The parties are considering delaying the update until 2026 after marine protection work is completed.

NON-CONFIDENTIAL 1 Request IR-09: 2 - 3 Reference: Section 3.3.3 Capital Depreciation, Page 15; and Rate Base Continuity - 4 Schedule, Att.1, Page 95. - 5 Please reconcile the stated request to recover $57.2M for depreciation with the $57....

AI summary The document discusses a request (IR-09) to reconcile the amount of $57.2M for depreciation recovery with a figure of $57.9M shown in an attachment. A response is provided, offering a reconciliation between the Rate Base Continuity Schedule and the Application Table.

12 Rate Base Continuity Schedule 2026 Total 70101 Original ML Project - Depreciation & Amortization 57.9 Sustaining Capital - Depreciation & Amortization 0.6 rounding 0.1 Application Total 58.6 Application Table 1 Total Depreciation 57.2 A...

AI summary The document presents a Rate Base Continuity Schedule for 2026, detailing depreciation and amortization figures for various projects and components, including the Original ML Project and Sustaining Capital, with a total depreciation and amortization of 58.6.

NON-CONFIDENTIAL 1 Request IR-10: 2 3 IR-2 to IR-31 Reference Exhibit N-1 Pages 4 -29 4 5 Page 10 6 Please show NSPML's calculations for the 2026 depreciation expense of $57.2 million. 7 8 Response IR-10: 9 10 Please see table below for de...

AI summary The Nova Scotia Energy Board requested NSPML to provide calculations for the 2026 depreciation expense of $57.2 million. NSPML responded by explaining that the calculation assumed 2026 additions were in service mid-year, resulting in half a year of depreciation being included.

a) Please see table below with calculation for estimated sustaining capital rate base: Description Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 Sustaining Capital Expenditures 1.5 2.8 2.9 35.9 36.0 Accumulated Depreciation (0.1) (0.1) (0.1) (0....

AI summary The table provides a calculation for the estimated sustaining capital rate base across multiple quarters, showing expenditures, accumulated depreciation, and ending balance for each quarter from Q4 2025 to Q4 2026, with a 5-quarter average of 15.5.

12.3 Own Property Damage For the avoidance of doubt, it is the Parties' intent that, subject to any right a Party may have to seek compensation from a third party who caused the Loss or from insurance, each Party shall be responsible for a...

AI summary The Parties agree that each is responsible for Losses to its own property, including facilities, equipment, and materials on the site of Defined Assets, regardless of the cause, including O&M Activities or the actions of the other Party or its affiliates. This applies unless compensation from a third party or insurance is available.

NON-CONFIDENTIAL 1 Request IR-01: 2 3 Refer to M12394, Exhibit N-1, NSPML's application for approval of its 2026 revenue 4 requirement and cost assessment, (the "Application"), page 10 of 29 and respond to the 5 following: 6 7 a) Please pr...

AI summary The document outlines a request for detailed calculations and comparisons related to NSPML's 2026 revenue requirement and cost assessment, specifically focusing on how components sum to the total of $198.7 million and the impact of cost recovery on small business classes. A response includes a table comparing 2025 and 2026 costs for various categories.

SPONSOR DATE CASE/APPLICANT DOCKET SUBJECT Colorado PUC Staff 2003 Lake Durango Water Company 03S-052W Allowable expenses – depreciation and taxes Value of purchased water Operating Ratio method Rate design for retail/bulk customers Custom...

AI summary The table lists various regulatory cases and proceedings handled by the Colorado PUC Staff from 2003 to 2004, covering topics such as allowable expenses, depreciation, taxes, rate design, cost of capital, and financial assurance. Each entry includes the sponsor, date, case/applicant, docket number, and subject matter.

Depreciation as a percentage of invested capital - 244. The amount of depreciation collected through rates is included in the calculation of the FFO component of the FFO/debt and FFO coverage ratios. - 245. The weighted average depreciatio...

AI summary The text discusses depreciation rates as a percentage of invested capital for distribution and transmission utilities, noting that these rates are used in credit metric calculations by the Commission. The weighted average depreciation rate for distribution utilities is 5.88%, and for transmission utilities, it is 4.11%, based on the 2023 Rule 005 reports.

These risks are not generally faced by other Canadian investor-owned utilities, many of which own little, if any, generation. Further, as discussed in more detail later in this section, while the companies in the U.S. Electric proxy group...

AI summary NSPI faces higher carbon transition risks compared to other utilities due to its significant coal-fired generation and shorter carbon reduction timelines. NSPI proposed a decarbonization plan involving a deferral account (DDA) to mitigate rate impacts. The Board approved this plan with conditions, including securitization of DDA assets and a report by April 30, 2025. NSPI plans to seek securitization approval for $700 million of DDA assets in 2025, with potential deferral of costs if not completed by 2026.

REDACTED 1 Undertaking U-01: 2 3 What is the budgeted cost for Gannett Fleming depreciation study? 4 5 Response U-01: 6 7 USD is the quote from Gannett Fleming for the depreciation study. Date Filed: December 17, 2025 NSPML U-01 Page 1 of 1

AI summary The document outlines an undertaking and response regarding the budgeted cost for a depreciation study by Gannett Fleming, with the response citing a USD quote from the company.

NON-CONFIDENTIAL 1 Undertaking U-02: 2 3 Did we pay any costs in 2025 for Gannett Fleming with respect to the depreciation study? 4 5 Response U-02: 6 7 $872.50 USD. Date Filed: December 17, 2025 NSPML U-02 Page 1 of 1

AI summary The document addresses an undertaking question regarding costs paid in 2025 for Gannett Fleming's depreciation study, with a response indicating $872.50 USD was paid.

REDACTED 1 Undertaking U-03: 2 3 To confirm what cost has been included in the 2026 Assessment to complete the depreciation 4 study, and to confirm that no amount included in the 2026 budget has already been paid in 5 2025? 6 7 Response U-...

AI summary The response to Undertaking U-03 clarifies that the 2026 Assessment includes CDN (approximately USD) for a depreciation study, and confirms that no amount related to the depreciation study was paid in 2025. The 2026 budget amount is approximately $3,000 USD lower than the Gannett Fleming quote, and the 2025 payment was $872.50 USD.

6.0 2026 SUSTAINING CAPITAL COSTS [208] NSPML expects to incur sustaining capital expenditures of about $33.5 million in 2026. This total amount is comprised of its Submarine Cable Protection Project of $32,962,333, which was approved by t...

AI summary NSPML expects to incur $33.5 million in sustaining capital expenditures in 2026, including the Submarine Cable Protection Project and routine capital projects. These costs will add depreciation expenses, and adjustments to the Maritime Link Project capital costs are expected but not expected to have a material impact on rate base or revenue requirement.

6.1 Findings [212] The Board finds that it is appropriate for NSPML to include the forecast sustaining capital expenses of $0.5 million for the smaller individual projects in its 2026 revenue requirement. As noted above, these capital asse...

AI summary The Board has determined that NSPML should include $0.5 million in forecast sustaining capital expenses for smaller individual projects in its 2026 revenue requirement. These expenses will be depreciated over the assets' depreciable life, with only the 2026 portion included in the current assessment. NSPML is directed to address the rate base treatment of 2026 sustaining capital expenditures in its rate base reconciliation for outstanding claims.

9.0 DEPRECIATION [224] NSPML's depreciation rates were set based on a 2021 depreciation study conducted by Gannett Fleming. The rates were set to recover the original cost of the Maritime Link over 35 years to match the delivery duration o...

AI summary NSPML's depreciation rates are based on a 2021 study by Gannett Fleming and are set to recover the original cost of the Maritime Link over 35 years. Grant Thornton recommended updating the study every five to seven years, but NSPML argued against it due to no major changes since Final Costing and plans to update it after the cable protection project in 2026.

9.1 Findings [226] The Board agrees that the depreciation study should be updated once the cable protection project is complete in 2026 and directs NSPML to do so.

AI summary The Board agrees that the depreciation study should be updated once the cable protection project is completed in 2026 and directs NSPML to carry out the update.

The Board orders that: - 1. The 2026 cost assessment for recovery from NS Power of NSPML's 2026 revenue requirement in the total amount of $197.5 million, recovered through a schedule of monthly charges commencing on January 1, 2026, and c...

AI summary The Board approves the 2026 cost assessment for NSPML, authorizes quarterly reporting requirements, and reserves jurisdiction over adjustments to the rate base. It also mandates updates to the depreciation study and the submission of a rate base continuity schedule in future applications.

Request IR-10: - Page 10 - Please show NSPML's calculations for the 2026 depreciation expense of $57.2 million.

AI summary The document requests Nova Scotia Power Marketing Limited (NSPML) to show its calculations for the 2026 depreciation expense of $57.2 million.

Request IR-2: Refer to the Application, Exhibit N-1, pages 13-15 of 29 and respond to the following: a) Please provide the depreciation schedule and calculations showing how the $57.2M depreciation amount was derived, including both origin...

AI summary The request asks for a depreciation schedule and calculations for a $57.2M depreciation amount, including original and sustaining capital components, as well as depreciation rate assumptions for the Cable Protection Project and any differences from other subsea cable assets.

- 3 Gannett Fleming has recommended that once NSPML's first material capital 4 project (regarding the Cable Projection Project) is completed in 2026, NSPML 5 will update the depreciation study. - 6 (a) Please provide a copy of the letter o...

AI summary The document requests information regarding Gannett Fleming's recommendation for NSPML to update its depreciation study after the completion of a capital project in 2026, including the letter of instruction, Gannett Fleming's response, and NSPML's commitment to filing an updated study as part of the 2027 Assessment.

12 Request IR-8: - 13 Reference: Page 14, Footnote 12. - 14 Please provide a schedule of the IGBTs, itemizing the number in use, replaced, spare inventory, - 15 and orders. - 16 Request IR-9: - 17 Reference: Section 3.3.3 Capital Depreciat...

AI summary The document contains several requests for information related to infrastructure, depreciation, and outstanding matters. These include requests for a schedule of IGBTs, reconciliation of depreciation figures, and details on unresolved close-out matters.

NSP Maritime Link Inc. - 2026 Assessment Application – NSPML REQUESTED DATE DATE: UND# DESCRIPTION OF BY DUE December 15, 2025 U-1 To provide the budgeted cost for Gannett Fleming to undertake the depreciation study Requested of NSP Mariti...

AI summary The document outlines several requests made by The Board to NSP Maritime Link Inc. regarding the 2026 assessment application, including budgeted costs for a depreciation study, incurred costs in 2025, and details on the regulatory process for securing approval. These requests aim to ensure transparency and accuracy in the assessment process.

9.0 DEPRECIATION [224] NSPML's depreciation rates were set based on a 2021 depreciation study conducted by Gannett Fleming. The rates were set to recover the original cost of the Maritime Link over 35 years to match the delivery duration o...

AI summary NSPML's depreciation rates were established in 2021 based on a study by Gannett Fleming, set to recover the original cost of the Maritime Link over 35 years. Grant Thornton recommended updating the study every five to seven years, but NSPML argued against it, stating there have been no material changes since Final Costing and plans to update it after the cable protection project in 2026.

9.1 Findings [226] The Board agrees that the depreciation study should be updated once the cable protection project is complete in 2026 and directs NSPML to do so.

AI summary The Board agrees that the depreciation study should be updated once the cable protection project is complete in 2026 and directs NSPML to do so.

The Board orders that: - 1. The 2026 cost assessment for recovery from NS Power of NSPML's 2026 revenue requirement in the total amount of $197.5 million, recovered through a schedule of monthly charges commencing on January 1, 2026, and c...

AI summary The Board approves the 2026 cost assessment for NSPML, authorizing the recovery of $197.5 million through monthly charges, with a $4 million holdback. NSPML is directed to provide future rate base continuity schedules, continue quarterly reporting, and update the depreciation study after the cable protection project is completed in 2026.