N-52024-2025 Bates White FAM Audit Report - Redacted
11 passages
scheduled load are at different OM levels for multiple hours as PHP adjusts to a real time change in schedule, NSPI identifies only one deviation and assigns it to one hour. ( Recommendation XV-4 ) Conclusion XV-6: Identifying deviations o...
AI summary The document discusses the need for NSPI to improve the identification and measurement of real-time PHP deviations from scheduled load on an hourly basis, and to correct the calculation of off-schedule costs associated with Cause Code 5: PDN violations. It also recommends that NSPSO or its successor SO be responsible for identifying and recording deviations from schedule.
olid fuel procurement strategy and associated FAM savings; (5) optimization of commercial and operational activities to create FAM savings; and (6) fuel cost savings associated with the ELIADC tariff.
AI summary The text outlines various strategies for achieving fuel adjustment mechanism (FAM) savings, including fuel procurement, operational optimization, and the use of the ELIADC tariff to reduce fuel costs.
ELIADC Energy Charge 824 2022-2023 Bates White Audit Report, page 403. 825 ELIADC 2024 Annual Report, data appendix. 826 ELIADC 2025 Annual Report, data appendix. The charges above combine to give the ELIADC Energy Charge: ELIADC Energy Ch...
AI summary The ELIADC Energy Charge is calculated as the sum of the CBL Energy Charge, CBLA, and VCC. Figure XV-3 provides a visual representation of the ELIADC Energy Charge from 2020 to 2025.
Figure XV-3: ELIADC Energy Charge, $/MWh828 Tariff Period Energy Charge ELIADC 2020 $63.44 2021 $62.36 January 1 2022 - June 6 2023 $63.62 June 7 2023 - February 29 2024 $64.81 March 1 2024 - January 31 2025 $107.29 February 1 2025 - Decem...
AI summary Figure XV-3 presents the ELIADC Energy Charge over different periods, showing fluctuations in the energy charge from 2020 to 2025. The ADC Credit is mentioned but not elaborated on in the text.
The ADC Credit is an adjustment calculated at the conclusion of the tariff year to share the system savings benefit of active demand control between FAM customers and PHP. PHP is entitled to 25% of the calculated benefit. When the CBL Ener...
AI summary The ADC Credit adjusts the system savings benefit of active demand control between FAM customers and PHP, with PHP receiving 25% of the benefit. The ELIADC Tariff requires PHP to make minimum annual payments based on NS Power's incremental costs and a fixed rate per MWh supplied. The calculation involves F&PP, VOM, and fixed cost components.
NSPI reduced the Off Schedule Charge by 31.6% in the 2020 ELIADC annual report and set the Off Schedule Charge to zero in every other year through 2024.834 As we explain in more detail in our evaluation of NSPI's response to 2022-2023 Reco...
AI summary NSPI reduced the Off Schedule Charge in the ELIADC tariff but did not account for variances in PHP's load schedules. The CBL Energy Charge is based on forecasted costs, which may not accurately reflect actual costs, leading to potential inaccuracies in ADC benefit measurements. The ELIADC tariff design is criticized for not correcting forecast errors, and recommendations are made regarding charge calculations and ADC benefits.
XV.B.2. Active Demand Control Provisions Under the ELIADC, NSPI can control PHP's load within limits established under the tariff and associated protocols. Prior to the beginning of each tariff year, PHP provides NSPI a forecast of annual...
AI summary The ELIADC allows NSPI to control PHP's load within established limits, using forecasts and updates from PHP to set energy targets. Load is optimized as 'negative generation' across nine operating modes, with flexibility for PHP to adjust its load within specified ranges without triggering deviations.
XV.B.4.a. Single Week Example of ELIADC Scheduling NSPI provided a specific example of scheduling and loads under the ELIADC for the week beginning Monday, February 3, 2025. The original monthly load target for February 2025 was MWh. The w...
AI summary NSPI provided a single week example of ELIADC scheduling for February 2025, highlighting deviations between scheduled and actual PHP loads. NSPI identified 76 deviations (45% of hours), while additional analysis found 16 more, totaling 54%. Most deviations were due to PHP operational constraints, with Cause Code 3 (PFL) being the most frequent.
XV.B.6. Interruption PHP was not interrupted under the ELIADC tariff during the Audit Period. During capacity scarcity events, the order of interruption for NSPI's non-firm customers is specified in the ELIADC tariff:852 - 1. Generation Re...
AI summary During the audit period, PHP was not interrupted under the ELIADC tariff due to the ADC and cooperative nature of the tariff. The ELIADC tariff specifies the order of interruption for NSPI's non-firm customers during capacity scarcity events, with LLIR – Non-Telemetry & Control customers being interrupted 10 times.
(Recommendation XV-8) Recommendation XV-2: The calculation of the CBL Energy Charge, which includes fixed costs, appears to conflict with the language of the ELIADC tariff. NSPI should either revise the calculation of the CBL Energy charge...
AI summary The document discusses the revision of the ELIADC tariff to address conflicts in the CBL Energy Charge calculation and recommends improvements to NSPI's annual reporting on load shifting benefits and ELIADC performance. NSPI has complied with the first recommendation by revising the tariff, and the second recommendation emphasizes enhanced reporting practices.
XV.C. Conclusions Conclusion XV-1: The ELIADC tariff, as shown by benefits reported in the ELIADC annual reports, has minimally achieved the intent of the Board during the Audit Period. FAM customers did not bear the average costs to serve...
AI summary The conclusions highlight deficiencies in the ELIADC tariff's implementation, including flawed ADC benefit calculations, inadequate deviation tracking by NSPI, and lack of transparency in annual reports. The ELIADC tariff has not fully achieved its intended benefits, and there are inconsistencies in how PHP load is managed and reported.