Topic:"Financial Instruments" in M12600

NS Power Cyber Incident Report Appendix B Page 1 of 7 Affected Regulatory Matters Report 2 - October 1 Report 3 - November 3 Report 4 - December 1 Latest update Forecast Restoration of Normal Activities Financial Reporting and Statements I...

AI summary The cybersecurity incident has affected automated financial reporting and statements, leading to the use of forecast figures for unregulated adjustments in regulated financial statements. NS Power expects actual figures to be available for Q4 2025 Regulated Financial Statements by Q1 2026, with no expected impact on customers.

Minister of Energy – Accountability for Nova Scotia Power (NSEB M12600) NSPI Responses to NSEB Information Requests 1 (ii) Customers can call into NS Power and receive information on both their 31 (g) Please confirm whether the data set ou...

AI summary The response addresses whether data in Appendix C is actual or estimated, confirming that data in Table 1, Table 2, and Appendix A are actuals, with some exceptions. It also discusses the availability of 2025 data and whether it will be recoverable in the future.

Consolidated Statements of Income For the Three months ended Year ended millions of dollars December 31 December 31 2025 2024 2025 2024 Operating revenues $ 504 $ 479 $ 1,944 1,855 $ Fuel for generation and purchased power 269 (216) 1,065...

AI summary The consolidated statements of income for Nova Scotia Power Inc. show operating revenues of $504 million for the three months ended December 31, 2025, and $1,944 million for the year ended. Fuel costs and other deferrals, operating expenses, and income from operations are detailed, with net income at $22 million for the quarter and $141 million for the year.

Highlights of the changes are summarized in the following table: For the Three months ended Year ended millions of dollars December 31 December 31 Net income - 2024 $ 71 $ 160 Increased operating revenues (refer to "Operating Revenues" sec...

AI summary The document summarizes net income and revenue changes for the periods ending December 31, 2024 and 2025. It highlights increased operating revenues, decreased fuel costs, and increased FAM and other deferrals. Notable factors include increased storm costs, a cybersecurity incident, and changes in income tax recovery.

Average fuel costs per MWh increased in Q4 2025 compared to Q4 2024 primarily due to a refund of previous NSPML assessment payments received in Q4 2024. For further details, refer to Note 5 in the NSPI Consolidated Financial Statements as...

AI summary Average fuel costs per MWh increased in Q4 2025 and year-to-date 2025 compared to the previous year, primarily due to a refund of previous NSPML assessment payments and increased generation from solid fuel and oil. These increases were partially offset by favorable commodity prices and decreased generation from natural gas.

Significant changes in the Consolidated Balance Sheets between December 31, 2025 and December 31, 2024 include: Increase millions of dollars (Decrease) Explanation Assets Receivables, net $ 140 Increased due to timing of billing and receip...

AI summary The Consolidated Balance Sheets show significant changes between December 31, 2025 and December 31, 2024, including increases in receivables, income taxes receivable, and regulatory assets, as well as changes in liabilities and equity due to factors like timing of payments, capital investments, and regulatory deferrals.

The Company generates internally sourced cash primarily through the generation, transmission and distribution of electricity. NSPl's customer base is diversified by both sales volumes and rates among customer classes. Circumstances that co...

AI summary NSPI generates cash through electricity generation, transmission, and distribution. Its future liquidity needs include working capital, rate base investment, and debt servicing. In 2026, NSPI plans to invest $720 million, including AFUDC, in capital projects for power system reliability. It has access to $800 million in credit facilities.

As at December 31, 2025, contractual commitments for each of the next five years and in aggregate thereafter consisted of the following: millions of dollars 2026 2027 2028 2029 2030 Thereafter Total Purchased ~ower(1} $ 344 $ 360 $ 347 $ 3...

AI summary The document outlines contractual commitments as of December 31, 2025, including purchased power, long-term debt, interest payments, asset retirement obligations, transportation costs, and other financial commitments over the next five years and beyond.

Defeasance Upon privatization of the former provincially owned Nova Scotia Power Corporation ("NSPC"} in 1992, NSPI was appointed to manage and administer a portfolio of defeasance securities. The securities provide principal and interest...

AI summary This section discusses the defeasance securities managed by NSPI following the privatization of NSPC in 1992. The securities, held in trust for NSPFC, provide principal and interest to match defeased debt totaling $200 million as of December 31, 2025. NSPI administers these cash flows under a Management and Administration Agreement, with NSPFC bank accounts integrated into NSPI's pool under a mirror netting agreement.

Guarantees and Letters of Credit As at December 31, 2025, the Company had $94 million USD (2024 - $104 million USD} of guarantees outstanding with terms of varying lengths, all of which are issued on behalf of NSPEMI. As at December 31, 20...

AI summary As of December 31, 2025, the Company had $94 million USD in guarantees and $6 million USD and $8 million CAD in letters of credit outstanding, all issued on behalf of NSPEMI. These figures represent a decrease from the previous year.

Weather Risk A Material Adverse Effect may arise from weather seasonal variations impacting energy consumption, as well as severe weather events, changing air temperatures, wildfires and other severe weather conditions that are expected to...

AI summary The document discusses how weather-related risks, including seasonal variations, severe weather events, and climate change impacts, can affect energy consumption, infrastructure, and financial stability. These risks may lead to reduced revenues, increased costs, and potential Material Adverse Effects if not mitigated through insurance or regulatory processes.

Liquidity and Capital Market Risk Liquidity risk relates to NSPl's ability to ensure sufficient funds are available to meet its financial obligations. NSPl's access to capital and cost of borrowing is subject to several risk factors, inclu...

AI summary The text discusses liquidity and capital market risks faced by NSPI, including the impact of financial market conditions, credit ratings, and interest rate changes on its ability to access capital and fund operations. A decrease in credit ratings could lead to higher borrowing costs and the need to post collateral for derivative instruments.

Natural Gas: NSPI periodically enters into physical and/or financial contracts based on forecast natural gas consumption to meet load and system security requirements. Volumes exposed to market prices are managed using financial instrument...

AI summary NSPI manages its natural gas exposure through hedging programs, using financial instruments to mitigate market price risks. As of December 31, 2025, approximately 99% of forecast natural gas requirements for 2026 and 55% for 2027 are hedged.

Heavy Fuel Oil: NSPI periodically enters into physical and/or financial contracts based on forecast heavy fuel oil purchases to meet load and system security requirements. Volumes exposed to market prices are managed using financial instru...

AI summary NSPI manages heavy fuel oil purchases through physical and financial contracts to meet load and system security needs. As of December 31, 2025, forecast heavy fuel oil requirements for 2026 are fully hedged using financial instruments under NSPI's hedging program.

Power Purchases: NSPI has fixed price agreements relating to NLH's NS Block energy delivery obligations and power purchase agreements with IPPs. NSPI also periodically enters into additional physical and/or financial contracts based on for...

AI summary NSPI has fixed price agreements with NLH and IPPs for power purchases and uses financial instruments to hedge market price exposure. As of December 31, 2025, 84% of 2026 and 48% of 2027 forecast power purchase requirements are hedged.

RISK MANAGEMENT INCLUDING FINANCIAL INSTRUMENTS NSPl's risk management policies and procedures provide a framework through which management monitors various risk exposures. The risk management policies and practices are monitored by the Bo...

AI summary NSPI's risk management framework includes policies and procedures monitored by the Board of Directors, with a focus on identifying, monitoring, and mitigating material risks. The company uses financial instruments like forwards and swaps to manage commodity and foreign exchange risks. Derivatives are accounted for under regulatory standards, with gains or losses potentially passed to customers through the FAM.

The Company has the following categories on the Consolidated Balance Sheets related to derivatives receiving regulatory deferral: As at December31 December31 millions of dollars 2025 2024 Derivative instrument assets (current and other ass...

AI summary The Company's Consolidated Balance Sheets show changes in derivative instrument assets, regulatory assets, and related liabilities as of December 31, 2025, and December 31, 2024, with a net asset of $2 as of December 31, 2025.

DISCLOSURE AND INTERNAL CONTROLS In accordance with National Instrument 52-109, Certification of Disclosure in Issuers' Annual and Interim Filings, the Chief Executive Officer and Chief Financial Officer of the Company will file a Venture...

AI summary The document outlines the disclosure requirements for the Company's annual consolidated financial statements and MD&A in accordance with National Instrument 52-109. It specifies that the Venture Issuer Basic Certificate does not require representations about the establishment and maintenance of DC&P and ICFR processes. The document also highlights the potential risks to the quality and reliability of filings due to limitations in these processes.

What is the Equifax iDecision Service? Equifax's iDecision platform is a secure, automated credit-decisioning engine that integrates real-time credit bureau queries with NSP's proprietary business rules. Instead of requiring manual retriev...

AI summary The Equifax iDecision Service is a secure, automated credit-decisioning platform that integrates real-time credit bureau queries with Nova Scotia Power's proprietary business rules to streamline credit decisions and reduce manual processing.

The following projects experienced adjustments to their completion timeline. An overview of the changes and associated rationale is outlined below: Pillar Project Summary of Change Rationale NS – NB Reliability Intertie Project Rates-Relat...

AI summary Several projects have had their completion timelines adjusted. The Reliability Tie project has been approved by the NSEB and transferred to the IESO-NS. The Q4 Annual Regulated Financial Statements are on track to be filed in April 2026. Updates to reports and other matters are scheduled for various quarters in 2026.

The following projects experienced adjustments to their completion timeline. An overview of the changes and associated rationale is outlined below: Pillar Project Summary of Change Rationale Financial Reporting and Staten nents Financial R...

AI summary The text outlines project timeline adjustments, including updates to financial reporting and various regulatory reports, with completion dates moved to Q1 and Q2 2026. Some projects have been updated or introduced, with rationales provided for the changes.

The following projects experienced adjustments to their completion timeline. An overview of the changes and associated rationale is outlined below: Pillar Project Summary of Change Rationale NS – NB Reliability Intertie Project Introduced...

AI summary The document outlines adjustments to the completion timelines of various projects, including the NS – NB Reliability Intertie Project, which has been approved by the NSEB. Additionally, updates to financial reporting and statements are noted, with completion expected in Q2 2026. Affected regulatory matters include several reports with updated deadlines.

Cybersecurity Incident - Monthly Update 8 Attachment 2 Page 1 of 5 Affected Regulatory Matters Report 2 - October 1 Report 3 - November 3 Report 4 - December 1 Report 5 - February 4 Report 6 - March 4 Report 7 - March 31 Report 8 - May 11...

AI summary The document provides a monthly update on a cybersecurity incident, tracking the status of affected regulatory matters and the timeline for the restoration of normal activities. It includes reports from October to May and forecasts the completion of Q4 2025 Regulated Financial Statements in Q2 2026.

The following projects experienced adjustments to their completion timeline. An overview of the changes and associated rationale is outlined below: Pillar Project Summary of Change Rationale NS – NB Reliability Intertie Project Introduced...

AI summary The text outlines changes to project timelines, including the approval of the NS–NB Reliability Intertie Project by the NSEB and updates to financial reporting and statements, with annual filings completed by April 30, 2026. Affected regulatory matters are also listed with updated reporting dates.

The following projects experienced adjustments to their completion timeline. An overview of the changes and associated rationale is outlined below: Pillar Project Summary of Change Rationale Receiving Invoice needs to be received in intern...

AI summary The document outlines adjustments to project timelines, specifically mentioning changes related to invoice receipt and discrepancies between ordered and received amounts.

Financial Enterprise Resource Planning NS Power has seen an increase in invoices on hold from the prior month related to the transition to Oracle Fusion for procure-to-pay processes. The invoices on hold totals are expected to decrease ove...

AI summary NS Power reports an increase in invoices on hold due to the transition to Oracle Fusion for procure-to-pay processes. These totals are expected to decrease as processes are refined. Refer to Attachment 3 for details.

The following projects experienced adjustments to their completion timeline. An overview of the changes and associated rationale is outlined below: Pillar Project Summary of Change Rationale Customer Billing Introduced NA Updated - Pulled...

AI summary The document outlines timeline adjustments for various projects, including billing operations and the Capital and ACE Plan. NS Power announced the resumption of late fees in October 2026 and the restoration of the PowerPlan in Q2 2026. The CIS Replacement Project is expected to be submitted to the NSEB in 2026.