Topic:"Energy Efficiency" in M12665

REDACTED 2022-2023 FAM Audit Action Plan Update Attachment 1 Page 7 of 18 Row Recommendation Action Plan Response from NS Power July 2026 Update Chapter VIII-Natural Gas Procurement 12 Recommendation VIII-1: Pipeline Markets NS Power accep...

AI summary This document outlines NS Power's response to Recommendation VIII-1 regarding pipeline markets, indicating acceptance and detailing efforts to expand market access through participation in the Dawn, Algonquin, and Tennessee Gas pipeline markets.

Expand Annual Reporting on the ELIADC We recommend that NSPI further improve its annual reporting by including more detailed quantification of actual load shifting benefits (and costs), an identification and discussion of the types of devi...

AI summary The document recommends that NSPI improve its annual reporting on the ELIADC by providing more detailed quantification of load shifting benefits and costs, identifying beneficial deviations, and comparing yearly outcomes. NS Power agrees to enhance reporting and has conducted an hourly analysis of load shifting benefits post-cyber incident. Two value streams for load shifting benefits are identified: hourly and seasonal.

Recommendation V-2: NSPI should correct any previously-reported heat rate data for Trenton 5, Trenton 6, and Point Tupper that were impacted by incorrect assumptions about the fuel mix consumed by Trenton 5 from the fourth quarter of 2023...

AI summary NSPI is recommended to correct previously-reported heat rate data for Trenton 5, Trenton 6, and Point Tupper due to incorrect assumptions about the fuel mix consumed by Trenton 5 between the fourth quarter of 2023 and the third quarter of 2024.

Incentive-Based Compensation ERM employee compensation is not a FAM-recoverable expense, but compensation in general for the employees chiefly responsible for FAM-related cost incurrence is relevant. While we did not audit employee compens...

AI summary NSPI offers two incentive-based compensation programs for ERM employees, designed to reward performance based on both individual and organizational achievements, including fuel cost savings and hedging targets. These programs are considered reasonable for aligning employee performance with corporate and departmental goals.

Fuel Manual NSPI's 700+ page Fuel Manual remains a useful tool for NSPI to hold its employees accountable to its policies and for the Board to hold NSPI accountable for its decisions related to fuel and power purchasing. Revision 13 of the...

AI summary The Fuel Manual, now in its 14th revision, serves as a key tool for NSPI to ensure accountability in fuel and power purchasing. It outlines policies, guidelines, and risk management practices, providing a framework for employees and stakeholders to assess NSPI's performance during the Audit Period.

O of Emera has delegated responsibility for the overall risk management program for Emera to the Executive Vice President Enterprise Risk, who is also the President and CEO of Peoples Gas System, Inc. Within the enterprise risk umbrella, N...

AI summary The document outlines the risk management structure at NSPI and Emera, including the delegation of responsibilities to various executives and committees, such as the Executive Vice President Enterprise Risk and the Credit Risk Oversight Committee (CROC). It also mentions updates to the Fuel Manual and the role of the Board of Directors in approving risk management policies.

II.C. Conclusions Conclusion II-1: NSPI's organizational structure remains reasonable and well defined, with the roles across the organization adequately specified, including responsibilities, which can help create an environment of accoun...

AI summary The conclusions highlight that NSPI's organizational structure, staffing, performance management, and training programs are well-managed and meet industry standards, with experienced personnel across various departments and reasonable attrition forecasting.

, which is filed with the NSEB each year. There were no significant changes to the forecasting methodology and no organizational changes impacting the load forecasting process during the Audit Period. The quantities of the various fuels re...

AI summary The document discusses the forecasting methodology used by NSPI, which involves using the PLEXOS model to estimate fuel requirements based on generating unit characteristics, fuel prices, GHG limitations, and transmission system capacity.

SPI's forecasted load in 2025 and 2026 are higher than in the prior forecast. Moreover, NSPI is forecasting higher RTR growth in the remainder of the forecast horizon, reducing NSPI's forecasted load. Second, NSPI reduced the estimated imp...

AI summary NSPI's 2025 and 2026 load forecasts show higher values than prior forecasts, but RTR growth is expected to reduce load. NSPI also reduced its estimate of new EV load and increased its forecast of load reduction from behind-the-meter solar. Continued DSM and energy efficiency efforts are expected to limit load growth despite customer growth and electrification of heating.

III.C. Conclusions Conclusion III-1: NSPI's load forecasting approach remains largely unchanged from the prior audit period. NSPI continues to file an annual 10-year load forecast with the Board and allows for stakeholder involvement in th...

AI summary NSPI's load forecasting approach has remained largely unchanged, with annual 10-year forecasts filed with the Board. The 2025 Load Forecast Report predicts a slight decrease in net system requirement due to factors like RTR load migration and increased energy efficiency. NSPI's actual peak loads have been lower than forecasted in recent years, suggesting a trend of over-forecasting.

IV.B.3. Solid Fuel Sources and Types Several of NSPI's thermal generators burn blends of solid fuel, including various types of coal and petcoke. (We explain below NSPI's approach to blending fuels and the relative benefits of each type of...

AI summary NSPI uses a mix of solid fuels, including coal and petcoke, with most being imported. Fuel consumption varies seasonally, peaking in winter. Coal types differ in heat content, emissions, and ash production, affecting efficiency and compliance with environmental regulations.

nergy balance process into the Shared Services Agreement. The energy balance process has been revised and includes a complex Energy Balance Worksheet that is not part of the Shared Services Agreement. Conclusion VI-13: NSPI has appears to...

AI summary The energy balance process under the Shared Services Agreement has been revised, but concerns remain regarding its rigidity and fairness, particularly for PHP and FAM customers. The process allows PHP to carry negative balances indefinitely and lacks clarity on chip deficit pricing. NSPI's biomass fuel processes are reasonably explained in the Fuel Manual.

Figure VIII-14: Late Day Trades delivered to Baileyville Price Less Emera NG Price $0.05 $0.05 $0.00 $0.00 $0.30 $0.00 $0.25 $0.00 $0.00 $0.00 $0.00 $0.00 $0.05 $0.05 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1.00 $1.50 $0.00 $2.00 $0.00...

AI summary Figure VIII-14 presents data on late day trades delivered to Baileyville, showing price differences between Emera Natural Gas and Emera Energy L.P. The table includes various price points and counterparties involved in these trades.

Figure X-13: NSPI Thermal Unit Heat Rates (Btu/kWh)422 Thermal Plant Heat Rate (2024) Heat Rate (2025) Lingan 1 11,775 11,382 Lingan 2 12,226 11,304 Lingan 3 11,360 11,059 Lingan 4 11,423 10,236 Tufts Cove 1 11,350 11,548 Tufts Cove 2 10,8...

AI summary The document presents heat rate data for NSPI thermal units in 2024 and 2025, showing improvements in efficiency, particularly for solid fuel-fired generators. The average heat rate for coal in 2024 was 10,777 Btu/kWh, with only Trenton 6 performing better. Natural gas units had lower heat rates, though still higher than newer combined-cycle plants.

[The following graph is confidential.] NSPI assessed the OEM-provided heat rate performance curve against performance at Tufts Cove Unit 4 for two separate engine swap periods. The next figure compares the gross load performance of Engine...

AI summary NSPI compared the heat rate performance of two engines at Tufts Cove Unit 4 during two separate periods. The newly refurbished engine outperformed the one in extended operation, with a 3-4% lower gross heat rate. The analysis concluded that FAM customers did not face materially higher fuel costs due to inefficient engine performance.

X.B.3.h.i. Process Efficiency of the PHB Boiler In a prior audit report, we recommended that NSPI incorporate the "process efficiency" of the PHB boiler in its FAM reporting.461 NSPI has done so, and in this section, we review the process...

AI summary The process efficiency of the PHB boiler is calculated by summing the total electricity generation and thermal energy delivered, divided by the total fuel energy content. This metric is important for tracking the overall efficiency of the boiler, especially considering the cogeneration nature of the PHB plant.

Figure X-22: PHB Process Efficiency (2021-2025) 464 Year Fuel to PHB (GJ) Thermal Energy to PHP (GJ) Electricity Production (GJ) Total Energy to "Useful Work" (GJ) Process Efficiency 2021 3,916,405 909,517 575,441 1,484,958 37.9% 2022 3,88...

AI summary The process efficiency of the boiler has declined since 2019, reaching 34.3% in 2025. NSPI attributes this to factors such as fuel quality and boiler operating capacity. However, the data shows that 2025 had high-quality fuel and higher operating capacity, which should have supported greater efficiency, not less.

Figure X-37: PHB Steam Turbine Performance (in MW) Across Different Steam Production, PHP OM Scenarios. 519 PB3 Average Steam Flow (kg/s) PHP OM Mode Range Steam Turbine Output Range (MW Gross) 60 1 - 9 36 - 40 50 1 - 9 28 - 40 40 1 - 9 19...

AI summary The document presents a table showing the performance of PHB steam turbines under different steam flow and PHP OM scenarios. NSPI conducted further testing with 100% biomass fuel between September 2024 and February 2025, examining fuel moisture levels of 50%, 55%, and 60%.

Figure X-38: PHB Boiler Steam Flow Across Different Fuel Moisture Content. 524 Test Date Moisture Target (%) Actual Avg Steam Flow (kg/s) 2024-09-25 50.38 55.6 2025-01-30 55 42 2025-02-04 60 38 These are insightful results that finally ach...

AI summary The PHB boiler steam flow results demonstrate the unit's ability to maintain steam supply under varying fuel moisture conditions. NSPI has addressed prior audit recommendations and presented these findings to the FAM SWG. However, challenges remain in predicting output and economic dispatch due to factors outside NSPI's control, such as fuel moisture content and PHP's OMs.

should include the impact of the forced outage (which lasted from June 23, 2023 to July 12, 2023), plus the period in which Point Tupper was derated (through August 2, 2023). (Recommendation X-5) Conclusion X-24: The PHB boiler's process e...

AI summary The conclusion discusses the PHB boiler's declining process efficiency since 2019, reaching 34.3% in 2025, and highlights the need for continued monitoring. It also notes that PHB is expected to remain an important resource for NSPI, with forecasts of increased output and sustained capital investment through 2050.

Figure XII-19: NSPI's Power Exports, by Listed Counterparty 708 2025 Counterparty Number of Transactions Transaction Volume Weighted Average Price (USD/MWh) As with imports, we sampled several of NSPI's export transactions during the Audit...

AI summary The audit examined NSPI's export transactions to determine if they were beneficial to customers, focusing on the prudence of marketers and the efficacy of NSPI's export process, including estimation and risk management of price movements.

ing in the 54,833 MWh of undelivered Supplemental Block energy as of the beginning of the Audit Period, NSPI enjoyed a surplus of 6,797 MWh of Supplemental Block energy at the end of the Audit Period. Conclusion XII-14: NSPI and NLH agreed...

AI summary NSPI and NLH disagree on the classification of 61.2 GWh of undelivered Base Block energy from August-December 2021. NSPI claims it should be Block B energy, requiring NLH to provide compensation energy, while NLH argues it should be Block A, fulfilling its obligations under the ECA. The parties are at an impasse and must proceed through mediation, arbitration, or litigation.

s load without triggering a "deviation." Figure XV-6 shows a plot of PHP loading levels within OM 4 during the audit period. This high level of load variation is found within all OM levels except OM1. Figure XV-7 below shows the number of...

AI summary The document discusses the operation and scheduling of PHP load within different operating modes (OMs) during 2024 and 2025, highlighting variations between actual and scheduled loads. It also emphasizes the importance of pulp storage levels at the mill in determining PHP load dispatch, as storage capacity affects the ability to operate at high load.

XV.B.5. Co-optimization Benefits of ADC The core of ADC benefits arises from the ability of NSP to schedule and dispatch PHP load across the year, both on a daily and seasonal basis, to reduce demand in high-cost periods and increase deman...

AI summary ADC benefits stem from NSP's ability to schedule and dispatch PHP load across different periods to optimize costs. PHP load can be adjusted based on wind output and FAM load, allowing for reduced demand during high-cost periods and increased demand during low-cost periods.