Topic:"Depreciation Amortization" in M12619

next depreciation study with the Board prior to filing the 2026 ACE plan, the Board expects 22 the Company to provide an update on the activities it conducted since the filing of the 2025 23 ACE Plan related to evaluating and costing the M...

AI summary The NSEB requires NS Power to provide an update on activities related to the Mersey Hydro System decommissioning and partial decommissioning options since the 2025 ACE Plan was filed, and to include cost estimates for preliminary engineering, stakeholder engagement, and environmental studies in the 2026 ACE Plan.

UDC Application, Board Order, March 31, 2025. Date: December 12, 2025 Page 137 of 782 REDACTED REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan CONFIDENTIAL (Attachments Only) 1 11.5 2026 Depreciation Rates 2 3 Figure 89: 2026 Dep...

AI summary The document outlines the 2026 depreciation rates for various power generation facilities in Nova Scotia, including Lingan, Point Aconi, Point Tupper, and Trenton. These rates are presented in Figure 89 and are part of the 2026 Annual Capital Expenditure (ACE) Plan.

fications, and the Nova Scotia Labour and Advanced Education Regulations. The Board provided the following Directive in its Decision pertaining to the Decarbonization Deferral Account (DDA) (M11220): NS Power must provide specific notice t...

AI summary The Nova Scotia Energy Board (NSEB) directed NS Power to provide notice to all participants in the Decarbonization Deferral Account (DDA) proceeding upon filing any future capital work order applications involving assets forecasted to be included in the DDA. NS Power complied with this directive by notifying participants on December 3, 2025. The summary also includes related capital investment (CI) projects for steam production plant assets over several years, with depreciation class and estimated asset life provided.

onfirm this was done in its applications to the Board. In accordance with the Board’s directive, NS Power provided notice of this investment to participants in the DDA proceeding on December 3, 2025. Summary of Related CIs +/- 2 years: Pur...

AI summary NS Power is replacing refractory components in the Steam Production Plant at Point Aconi to ensure boiler reliability and prevent unplanned outages. The project is justified under the Thermal Equipment Replacement/Refurbishment criteria and aligns with the Board’s directive to notify participants in the DDA proceeding.

e external stack column, and the application of a two-layer epoxy coating system to Unit 2 of the Tufts Cove Generating Station (TUC) concrete chimney stack to restore integrity and extend asset life. The stacks at Tufts Cove Generating St...

AI summary This document discusses the refurbishment of the TUC 2 stack column at Tufts Cove Generating Station, including the application of a two-layer epoxy coating system. The project is justified based on findings from a 2024 inspection that revealed extensive cracking in the stack, necessitating repairs to restore integrity and extend asset life. The asset is classified under the Steam Production Plant – Tufts Cove 2 depreciation class with an estimated life of 25 years.

the Intermediate Pressure (IP) turbine (such as rotor, casings, steam path, seals, bearings fasteners) on Tufts Cove Unit 3 to allow for the continued safe and reliable operation of the steam turbine. The Tufts Cove Unit 3 turbine includes...

AI summary This document discusses the need to refurbish or replace the Intermediate Pressure (IP) turbine components on Tufts Cove Unit 3 to ensure continued safe and reliable operation. The IP turbine is subject to degradation from solid particle erosion and creep damage. The project is being filed now to allow for ordering long-lead materials in 2026, with delivery expected in 2027. The asset is categorized under the Steam Production Plant depreciation class with an estimated life of 30 years.

black start capability, 10-minute reserve, Volt-Ampere Reactive support and additional firm energy capacity to the NS Power electrical system. The unit was originally commissioned by NS Power in 1976 Summary of Related CIs +/- 2 years: Pur...

AI summary The document discusses the refurbishment of a gas turbine at Burnside to maintain essential ancillary services, citing wear and damage identified in a 2025 borescope inspection. The project is justified based on thermal criteria and equipment replacement needs to prevent unplanned outages and ensure system reliability.

The project also includes redesigning and installing new transformer foundation, adding a new transmission structure, improving oil containment, and updating the ground grid to meet modern standards. Summary of Related CIs +/- 2 years: Pur...

AI summary The project involves replacing the 76W-T1 transformer in Mahone Bay due to its end-of-life status, internal overheating signs, and anticipated load growth. The transformer is the sole supply to the town, and replacement is necessary for reliable and safe power delivery.

uch larger portion of the transmission system and in some cases affects a higher number of customers. This project will complete replacement of four Pennsylvania circuit breakers on NS Power’s system. Summary of Related CIs +/- 2 years: Pu...

AI summary The document discusses the replacement of Pennsylvania circuit breakers on NS Power’s transmission system due to poor performance and reliability concerns. The project is justified based on safety, system reliability, and the unavailability of replacement parts from the original equipment manufacturer. Related capital items and depreciation class information are also provided.

n transformers, and 9 poles with 5,280 meters of single-phase 2/0 AASC primary and neutral conductors, 5 distribution transformers, and 11 poles. Associated hardware and framing will also be replaced. Summary of Related CIs +/- 2 years: Pu...

AI summary The document outlines a reconductor project involving transformers, poles, and conductors, with associated costs and depreciation details. It includes related capital items from previous years and discusses the justification for the project based on deteriorated conductor conditions.

vailable to be utilized to enhance a wide variety of current business tasks that may otherwise have required mobilization of different team resources to the field to plan customer or maintenance work. To fully populate and establish this p...

AI summary The document outlines a project to enhance operational efficiency by utilizing AI and machine learning through data collection and integration into NS Power's GIS system, funded by Natural Resources Canada. It also discusses the depreciation class and estimated life of an asset related to the 2026 ACE Plan.

ses over its expected useful life. It accounts for all the capital pursuant to the 2016 ACE Plan Terms of Consensus, NS Power also provides a version of the overall revenue and opera ng costs, including the upfront capital costs. In addi o...

AI summary The document discusses the Total Cost of Ownership (TCO) as a tool for evaluating capital investments, emphasizing the alignment of the TCO timeframe with the useful life of IT software or hardware. It highlights that when capital expenditures match depreciation expenses, there is minimal impact on the rate base or customer revenue requirement.

stment rather than a prescribed in a given year, there is minimal effect on rate base or meline. associated revenue requirement and therefore it is excluded from the calcula on.¶ impact considers the following inputs:¶ ¶ • Capital expenditu...

AI summary The text discusses the minimal impact of capital expenditures on rate base and revenue requirement, considering factors such as capital expenditures compared to depreciation expense and administrative overhead credit. It outlines the inputs used in the analysis.

ased on the propor on of capital expenditures in excess of deprecia on expense of all assets in each year.¶ • Incremental interest based on the cost of debt mul plied by the por on of debt to total capital of the incremental rate base¶ • A...

AI summary The text outlines several financial components related to capital expenditures, including incremental interest, AFUDC, income taxes, and net earnings, all calculated based on the proportion of capital expenditures relative to depreciation expenses and the capital structure.

2026 ACE Plan Appendix D Page 47 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Summary Document Procedures When capital assets reach the end of their useful life and are no longer able to contribu...

AI summary Nova Scotia Power Inc. outlines procedures for removing capital assets from rate base upon end-of-life, deferring gains/losses (except land) over remaining asset life, and recognizing land sale gains/losses immediately. Environmental expenditures on land disposals are evaluated on a case-by-case basis.

ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document The following Accoun ng Policies and Procedures guide and direct NS Power’s capital expenditure program: • Rate Base (1520) • Materiality (1560)...

AI summary Nova Scotia Power Inc. outlines detailed accounting policies and procedures for capital expenditures, emphasizing centralized planning to maximize customer benefits. Key policies include rate base, materiality, depreciation, and capitalization guidelines, with the Corporate Accounting Department overseeing interpretations.

calcula on as part of the AFUDC rate approval request. Economic Analysis Models for projects included in the ACE Plan will also incorporate NS Power’s proposed WACC. 8.1.2 DepreciaƟon When NS Power acquires financing for its capital progra...

AI summary The document outlines Nova Scotia Power Inc.'s approach to depreciation calculations for capital expenditures, including life span and mass property methods. It references the 2026 ACE Plan and AFUDC rate approval, emphasizing the use of Iowa Curves for mass property depreciation.

et are important to calcula ng the deprecia on rate. NS Power uses the Iowa Curves to establish annual deprecia on rates that account for the dispersion characteris cs of plant failures. The specifics of the deprecia on rates employed for...

AI summary The text discusses Nova Scotia Power's (NS Power) methods for calculating depreciation rates using the Iowa Curves, inflation adjustments in economic analyses, and tax considerations including income tax and Harmonized Sales Tax (HST). NS Power's accounting policies and treatment of municipal grants and taxes are detailed.

nalyses Income tax is included in the economic analysis of capital projects. Month DD, 2025 Page 33 of 113 Date: December 12, 2025 Page 552 of 782 REDACTED REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Appendix D Page 100 of 17...

AI summary The document outlines Nova Scotia Power Inc.'s approach to capital expenditure justification, emphasizing the inclusion of income tax in economic analyses. It distinguishes between tax depreciation (capital cost allowance) and rate-making depreciation, noting that the latter is used for revenue requirement calculations while the former affects taxable income.

in the calcula on of taxable income or cash flows. It is recognized in the calcula on of revenue requirement. Capital Cost Allowance CCA is deprecia on for tax purposes. CCA is a deduc on against taxable income. Capital Cost Allowance is b...

AI summary The text explains Capital Cost Allowance (CCA) as a tax depreciation method distinct from plant depreciation. It emphasizes NS Power's need to secure investment capital by maintaining investor confidence and ensuring financial soundness of capital projects through rigorous analysis.

d generator capacity factors in the EAMs for a period of five years. NS Power uses an es mate of infla on as an escalator for years six (6) onward to determine future year avoided costs. On an annual basis, NS Power will compare its es mat...

AI summary NS Power uses inflation as an escalator for avoided costs beyond five years, with annual comparisons to fuel forecasts. Financial parameters like AFUDC, book depreciation, and cost of capital are critical for evaluating capital expenditures. Discrepancies between inflation estimates and fuel forecasts may trigger stakeholder discussions.

2026 ACE Plan Appendix D Page 119 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document Procedures When capital assets reach the end of their useful life and are no longer able to contri...

AI summary The document outlines Nova Scotia Power Inc.'s procedures for removing capital assets from the rate base upon reaching the end of their useful life, including depreciation handling and exceptions for land sales. It references the 2026 ACE Plan and discusses routine expenditures, though later sections are redacted.

CONFIDENTIAL (Attachment Only) 1 necessary to account for the potential additional costs associated with potential, necessary 1.9 X Winding Voltage 13.2 kV 13.2 1.10 X Winding Connection Wye-gnd Wye-gnd 1.11 X Winding BIL Line End 95 kV 95...

AI summary The text provides technical specifications and compliance details for a transformer, including voltage, winding connections, losses, and adherence to industry standards. It includes cost estimates for load and no-load losses, as well as details about the load tap changer and noise ratings.

2026 ACE Plan NSEB IR-1 Attachment 1 Page 1 of 3 1987.25 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17.1 17...

AI summary The text discusses the continuation of existing depreciation rates and the recovery of all capital under the 2026 ACE Plan. It includes a table with project details and financial data but lacks detailed analysis or discussion of themes.

NON-CONFIDENTIAL 1 these typically provide at least 10 years of additional service life for the individual 2 component. Nonpressure-retaining components, including tube shields and alignment 3 fixtures, experience ash related erosion and t...

AI summary NS Power has updated its Boiler Tube Repair & Tube Failure Reduction Quality Process to reduce the minimum allowable wall thickness threshold for replacement or weld buildup of superheater tubes from 70% to 50% of original thickness for boilers nearing end of life. This change allows for safe deferral of certain tube replacements, including work at the Point Aconi Generating Station.

a) Deteriorated Plant Criteria Violation: Line L-5547 (2012) In addition to providing an alternate supply to Sub-station 89W via line L-5546, Westhavers Elbow also supplies Sub-stations 76W, 78W, 81W, and 82W via 17km of radial Line L-5547...

AI summary Line L-5547, built in 1955, has exceeded its service life and requires replacement. The line supplies multiple sub-stations and replacement must occur under live line conditions unless a new right of way is secured. Considerations include upgrading to 138kV and replacing aging 69kV transformers.

Divi: Dep get Year : sion : artment : inator : 2004 Date : CI Number: Project No. : F 30-No ov-06 2008 • • • • • • 0.763 • • 2009 • (264,979.4) 5,299.6 259,679.8 (264,979.4) 1,618.5 (263,360.9) 0.713 (187,685.0) (187,685.0) 2010 • • 10,387...

AI summary The table presents financial data from 2004 to 2024, including figures related to depreciation, operating expenses, and net income. The data shows trends in various financial metrics over time, indicating changes in financial performance.

2026 Annual Capital Expenditure (ACE) Plan (NSEB M12619) NSPI Responses to NSEB Information Requests 1 Request IR-161: 14 known variances. 15 16 (ii) In NS Power's 2026-2027 General Rate Application (GRA) partial 17 decommissioning had bee...

AI summary NSPI's response to NSEB's information request discusses the 2026-2027 General Rate Application (GRA) and the definition of partial decommissioning. It clarifies that decommissioning does not include water retaining structures, but ongoing investment is required for their management. NS Power acknowledged that costs could be higher if such structures require investment and did not include cost recovery for partial decommissioning in the proposed depreciation rates.

(2) Capital Spend above $1,000,000 ($250,000 prior to October 30, 2019) associated with a preliminary engineering project that has been inactive (i.e. no internal or external engineering or scoping work, exceeding $10,000, being carried ou...

AI summary The document outlines capital expenditures above specified thresholds that have not been submitted for approval to the Nova Scotia Energy Board (NSEB). It includes details on projects such as the 67N Onslow 345 KV Node Swap and the HYD Mersey Redevelopment Phase 1, with information on depreciation, interest, and AFUDC expenses associated with unapproved capital spend.

This report includes retirements in excess of $1,000,000, where NS Power has not sought or received explicit Board approval for the retirement of original cost. This report is included pursuant to the Board's directive relating to M09229 d...

AI summary This report details retirements exceeding $1,000,000 by NS Power without explicit Board approval, as required by Board directive M09229 dated May 5, 2020.

Project Retirement Percentage of GBV of Asset Pool Retired Nature of Retirement and Life Cycle Policy Accounting Treatment of Retirement Amount Amount Distribution Plant - D D004 NEW CUSTOMER REPLACEMENTS ROUTINE -1,515,746 0.07% of Total...

AI summary The document outlines the retirement of various capital assets, including distribution plant and transportation vehicles, under different projects. Each project specifies the amount retired, the percentage of the asset pool retired, the nature of retirement, and the associated accounting treatment, which involves debiting the retirement amount to accumulated depreciation without recognizing gains or losses.

Mr. Chair and Board Members: I'm writing this because, frankly, the math coming out of ns power financials just doesn't sit right with the people actually paying the bills. We've watched this utility's "Property, Plant, and Machinery" more...

AI summary The writer criticizes Nova Scotia Power's financial practices, highlighting the increase in property, plant, and machinery values and the growth of Emera's equity without new green power investments. They argue that the utility is using public money through debt and depreciation to generate returns that are ultimately paid by ratepayers.

ant cost categories. For Routines using internal labour the information should also include a breakdown of labour costs (regular and overtime labour, budgeted costs and hours, actual costs and hours). - 3. NS Power must provide sufficient...

AI summary The document outlines requirements for NS Power to provide detailed cost breakdowns and explanations for changes in routine expenditures, including labor, materials, and contractor costs. It also mandates monitoring of planned versus reactive replacement activities and the inclusion of Routine Expenditure provisions in the 2028 ACE Plan.

ghts; and 4. External factors driving costs, including supply chain issues, shifts in the regular/overtime labour breakdown due to other utility programs. 2. In the referenced RIR, NS Power stated: NS Power has data on single-family and mu...

AI summary The text discusses NS Power's data tracking challenges, specifically regarding residential additions and internal work orders. It requests information on changes to work orders since 2025, updates on a continuous improvement initiative, and plans for future system upgrades.

ant cost categories. For Routines using internal labour the information should also include a breakdown of labour costs (regular and overtime labour, budgeted costs and hours, actual costs and hours). - 3. NS Power must provide sufficient...

AI summary The document outlines requirements for NS Power to provide detailed cost breakdowns and explanations for changes in routine expenditures, including labor, materials, and contractor costs, and to assess the use of existing systems for monitoring productivity and cost trends. It also mandates the inclusion of Routine Expenditure provisions in the stakeholder review for the 2028 ACE Plan.

1 no. It would have included the approved depreciation 2 rates at the time of the ACE filing, but upon the 3 invocation of the GRA in April it switched to the new 4 rates. So it would have no impact on the actual ACE Plan 5 for any of the...

AI summary The discussion revolves around the impact of the GRA depreciation rates on the ACE Plan. It notes that the ACE Plan would have used approved depreciation rates, but with the GRA invocation in April, it switched to new rates. The Chair mentions that the final depreciation rates will be updated once the final Order is issued.

1 and forth with respect to certain issues, so the question 2 is timing. 3 MEMBER MURPHY: Okay. I don't think 4 the depreciation rates are going to change. 5 THE CHAIR: No, no, no. It's not that 6 the depreciation rates are going to change...

AI summary The discussion revolves around depreciation rates and a question regarding the redaction of a number in a project filing. The panel members are discussing procedural matters related to a regulatory proceeding involving NS Power.

NS POWER PANEL 415 Questions, (Murphy) 1 life. So we don't complete any write-offs related to 2 depreciation expense unless directed to through a 3 different proceeding, but 4 What is the expected typical life Q. 5 of those blades? 6 (Beat...

AI summary The discussion focuses on depreciation practices related to turbine blades at Tufts Cove 1, where blades are depreciated at the overall plant level rather than individually. The expected useful life of the blades is estimated to be around 4 percent annually, and only three years of depreciation have been applied so far. The context includes a reference to a Board order (IR-83) and a mention of cracked blades found during an inspection in March 2025.