Topic:"Depreciation Amortization" in M12914

8 TABLE 1 Description (Amounts in $millions) 2026 (approved) 2027 2028 $O\&M^2$ 22.0 27.2 21.6 Depreciation 3 57.2 57.7 58.1 Debt Financing Costs • Interest (Net) 37.8 36.7 35.4 Amortization of Deferred Financing Costs 1.4 1.5 1.4 Equity F...

AI summary Table 1 presents financial data including operating and maintenance costs, depreciation, debt and equity financing costs, and total costs for the years 2026, 2027, and 2028. The data shows variations in these costs across the years.

10 11 12 13 14 15 As has been the case since 2018, NSPML will continue to invoice NS Power for recovery of its approved 2027 and 2028 assessments in equal monthly instalments ($13.46 million per month for 2027, and $12.79 million per month...

AI summary NSPML will continue to invoice NS Power for the recovery of its approved 2027 and 2028 assessments in equal monthly instalments, with specific adjustments for FLG2 costs and marine survey costs. The depreciation costs are increasing due to the full-year expense of the rock protection campaign in 2027 and the implementation of the station control monitoring system update in 2028.

1 2.3 Depreciation 2

AI summary This section discusses depreciation, a key component in accounting and financial planning. It outlines how assets are depreciated over their useful lives and its impact on financial statements and regulatory proceedings.

3 2.3.1 Original Capital Costs 4 5 In the Final Project Costs Decision (M10206), the NSEB approved NSPML's 6 depreciation policy as developed from the depreciation study conducted by Gannett 7 Fleming. This policy is built on the overridin...

AI summary The NSEB approved NSPML's depreciation policy based on a 2021 study by Gannett Fleming. NSPML plans to update the study within six months of completing the Cable Protection Project in Q3 2026, following a recommendation from Grant Thornton in the 2025 Assessment Decision.

2.3.3 Capital Depreciation 12 13 14 15 16 17 11 Consistent with the Final Costs Decision and its approved depreciation policy, NSPML seeks to recover $57.7 million in depreciation in 2027 and $58.1 million in 2028 which is calculated in ac...

AI summary NSPML seeks to recover $57.7 million in depreciation in 2027 and $58.1 million in 2028, consistent with the Final Costs Decision. The increase in 2027 is due to the Cable Protection Project, and the increase in 2028 is due to the SCM upgrade. Adjustments from close-out matters are not expected to have a material impact.

Date Filed: June 25, 2026 Page 18 of 28 1 associated cost recovery rights. Of note is that, at this time, none of the lenders were 26 costs incurred. In the Final Cost Decision, the NSEB confirmed the prudence of 27 NSPML's hedging arrange...

AI summary The document discusses the Deferred Financing Charges (DFC) related to the Maritime Link project, including the amortization period and recovery schedule. It notes that the NSEB confirmed the prudence of NSPML's hedging arrangements and outlines the remaining DFC to be recovered in 2027 and 2028. An 8.75% return on equity (ROE) is applied for 2027 and 2028, consistent with the 2026 Assessment Decision.

4 Rate Base Continuity Schedule (millions) 2027 2028 Original ML Project - Depreciation & 57.9 57.9 Amortization Sustaining Capital - Depreciation & Amortization 1.3 1.6 Application Total 59.2 59.5 Application Table 1 2027 2028 Depreciatio...

AI summary The document presents a Rate Base Continuity Schedule for the years 2027 and 2028, detailing depreciation and amortization figures for the Original ML Project and Sustaining Capital. The table indicates slight increases in depreciation and amortization values over the two-year period.

1 Request IR-6: 2 3 With respect to Exhibit N-1, p. 14-15, 16 and 24, NSPML requests approval for an estimated 4 depreciation associated with the SCM upgrades scheduled for September 2028. 5 6 (a) Please provide the forecast dates for the...

AI summary NSPML requests approval for depreciation costs related to SCM upgrades scheduled for 2028. The request includes questions about project timelines, filing schedules, justification for rate inclusion, and alternative cost recovery methods if depreciation is not approved.

18 Request IR-7: 19 20 In Exhibit N-2, M11285, NSPML provided an annual estimate of the number of IGBTs Failed and 21 Replaced. 22 23 (a) Please provide the same table as referenced above, extended through 2026 YTD. 24 (b) How many IGBTs a...

AI summary The document requests NSPML to provide updated information on IGBT failure rates, spare inventory levels, and reassessments based on actual performance data rather than manufacturer estimates.

- 26 (d) Please explain what NSPML is requesting when it states "if the Board 27 directs NSPML to implement smoothing…. NSPML would request flexibility 28 to adjust DER impacts…" 1 Request IR-10: 2 Reference: Section 2.2.5, Insurance (p. 1...

AI summary The document includes requests for clarification on insurance cost forecasts and the timeline for completing the Cable Protection Project, as well as the process for reviewing an updated depreciation study. The focus is on financial planning and project timelines.