Topic:"Depreciation Amortization" in M12833

7 2.2-2.4Supporting Schedules for Actual and Forecast NBV and Unrecovered 8 Decommissioning Costs (2025-2029) 9 10 Please refer to Appendix A through Appendix C for the actual 2025 transactions and updated 11 forecast for 2026-2029 that im...

AI summary The document references Appendices A-C for actual 2025 transactions and 2026-2029 forecasts impacting NS Power's unrecovered decommissioning costs under the DDA. Figure 1 details unrecovered costs as of December 31, 2025, associated with assets expected to fall under the DDA upon retirement.

3 2.7 Update on Amortization Application 4 5 NS Power's rationale for determination of future amortization periods and annual amounts of the 6 costs within the DDA was provided in Section I(a)(iv) of the DDA Manual as part of the 7 complia...

AI summary NS Power provided its rationale for determining future amortization periods and annual costs within the DDA in Section I(a)(iv) of the DDA Manual as part of a May 1, 2024 compliance filing, focusing on the application of amortization principles to deferred decarbonization costs.

9 Section I(a)(vi) - Rationale for selection of future amortization amounts The DDA was designed to facilitate the accelerated retirement of the Company's thermal assets in a manner that provides flexibility to assist in managing rate impa...

AI summary The DDA facilitates early retirement of thermal assets while managing rate impacts, but NS Power has not yet determined amortization amounts due to uncertain costs and potential government funding. Amortization will be considered later through a regulatory process, with NSUARB approval required.

Unrecovered Cost for DDA Assets at December 31, 2025 ($ Millions) Unrecovered Forecast Total Unrecovered (including Cost of Removal) Jan Depreciation Expense and (including Cost of Removal) Remaining NBV Dec. Unit/Plant GBV Jan 1, 2025 Add...

AI summary The document presents a table detailing the unrecovered costs for DDA assets at December 31, 2025, including net book value, depreciation expenses, and securitization proceeds for various units and plants, such as Point Aconi and Trenton 5.

NON-CONFIDENTIAL 1 Remaining NBV at December 31, 2025. Please refer to Appendix B(1) for the detailed 2 calculations. 3 2. The unrecovered forecast decommissioning costs are calculated as the difference between the Forecast Decommissioning...

AI summary The text discusses the remaining Net Book Value (NBV) at the end of 2025 and the calculation of unrecovered forecast decommissioning costs by 2029, referencing appendices for detailed calculations.

NON-CONFIDENTIAL 1 Request IR-1: 2 3 Please confirm how the "30-year period (2028–2057)" referenced in Section 2.9 relates to the 4 28 year, 20-year, and 10-year DDA amortization scenarios. Specifically: 5 6 (a) Is the 30-year period the f...

AI summary The document discusses the 30-year period (2028–2057) used for modeling NPV revenue requirement calculations in relation to different DDA amortization scenarios (28, 20, and 10 years). It confirms that the 30-year period is the full modeling horizon for all scenarios and explains that cash flows beyond the amortization period are treated as zero for the shorter-term scenarios.

NON-CONFIDENTIAL 1 Request IR-5: 2 3 Please confirm, or clarify otherwise, that the "no securitization" balances are based on a 4 scenario where the DDA assets go back to normal (i.e. the same as 2025) 5 depreciation/accounting treatment i...

AI summary The response clarifies that under the 'no securitization' scenario, depreciation expenses for DDA assets are paused from 2026 to 2027, with financing costs accumulating instead. Depreciation resumes in 2028, and accumulated financing costs remain deferred. Upon asset retirement, unrecovered net book value and deferred financing costs are transferred to the DDA.

Request IR-5: - Please confirm, or clarify otherwise, that the "no securitization" balances are based on a scenario - where the DDA assets go back to normal (i.e. the same as 2025) depreciation/accounting - treatment in 2028 and 2029. Docu...

AI summary The text requests confirmation or clarification on whether the 'no securitization' balances are based on a scenario where DDA assets revert to 2025 depreciation and accounting treatment by 2028 and 2029.

1 Request IR-2: - 2 Please confirm or explain whether, for each amortization scenario (28, 20, and 10 years), both - 3 (a) the recovery of net book value under the DDA (at WACC), and (b) the securitization recovery - 4 are assumed to occur...

AI summary The text requests clarification on whether amortization periods for DDA recovery (at WACC) and securitization are aligned across scenarios (28, 20, 10 years) or if securitization is modeled independently of DDA assumptions.