N-12025-2026 Annual Report
16 passages
Establishing the Financial Framework to Deliver the Mandate Finally, as a brand-new organization, IESO Nova Scotia undertook considerable work to build the financial and regulatory foundations needed to deliver on our mandate. In August 20...
AI summary IESO Nova Scotia filed its first revenue requirement application in August 2025, seeking $5.3 million to support startup activities and initial operations. A second application for $14.9 million was filed in January 2026, with an interim funding mechanism approved in February 2026. An enduring fee recovery mechanism was also proposed and filed in July 2026, with outcomes to be included in future reports.
MANAGEMENT FINANCIAL OVERVIEW (UNAUDITED) As an independent system operator, IESO Nova Scotia, like our counterparts around the world, has been set up to be funded ultimately by electricity customers. IESO Nova Scotia is expected to submit...
AI summary IESO Nova Scotia submitted its first revenue requirement application in 2025-26, requesting $5.307 million to cover operational costs. Actual expenses were $4.963 million, resulting in a $0.344 million surplus. This surplus will be addressed in the next revenue application. The financial statements, prepared under IFRS, show total expenses of $8.217 million, with adjustments made for government grants and other revenues not included in the initial filing.
Table 1: Total 2025-26 expenses per IFRS financial statements $8.217 Less: Revenues netted against expenses¹ (3.148) Less: IFRS adjustments² (0.106) Net adjusted 2025-26 expenses - revenue application basis (A) $4.963 Approved 2025-26 reve...
AI summary The table outlines the total 2025-26 expenses of $8.217 million, with $3.148 million in revenues netted against expenses and $0.106 million in IFRS adjustments, resulting in net adjusted expenses of $4.963 million. The approved revenue requirement is $5.307 million, showing a $0.344 million under adjustment.
²IFRS adjustments are (1) to convert the accounting treatment of the long-term office lease to a cash basis ($0.021 million) and (2) to remove amortization charges that relate to assets not included on the revenue application ($0.085 milli...
AI summary IESO Nova Scotia faced a $3.169 million deficit in its 2025-26 financial statements due to the lack of an approved fee recovery mechanism, despite having a small surplus. An interim fee mechanism was approved in February 2026, providing $0.95 million per month. The revenue shortfall is being collected in fiscal year 2026-27, and a new revenue requirement application for 2026-27 was submitted to the NSEB.
Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS Accounting Standards as i...
AI summary Management is responsible for preparing and fairly presenting the financial statements in accordance with IFRS standards, assessing the going concern status of IESO Nova Scotia, and implementing internal controls. Those charged with governance oversee the financial reporting process.
March 31, 2026 (in thousands of dollars) 2026 Assets Current Cash $ 695 Accounts receivable (Note 6) 2,262 Unbilled revenue (Note 7) 421 Prepaid expense (Note 8) 333 3,711 Long-term prepaid expenses (Note 8) 144 Property, plant and equipme...
AI summary This document provides a financial snapshot as of March 31, 2026, showing assets, liabilities, and a net deficit. It lists cash, accounts receivable, unbilled revenue, and other financial items, along with notes for further details.
Period from February 18, 2025 to March 31, 2026 (in thousands of dollars) 2026 Comprehensive loss $ (3,169) Operating activities Amortization Expense 152 Interest accrual 31 Change in long-term prepaids (144) Change in non-cash working cap...
AI summary The financial statements show a comprehensive loss of $3,169 thousand for the period from February 18, 2025, to March 31, 2026. Key items include amortization expenses, changes in working capital, and cash flows from operating, investing, and financing activities, ending with an increase in cash of $695 thousand.
b) Financial Instruments IESO Nova Scotia classifies financial assets and financial liabilities according to their characteristics and management's choices and intentions. All financial instruments are initially recorded at fair value plus...
AI summary IESO Nova Scotia classifies financial instruments based on their characteristics and management's intentions. Financial instruments are initially recorded at fair value plus transaction costs and are classified into amortized cost, FVOCI, or FVTPL. However, IESO Nova Scotia does not use FVOCI or FVTPL classifications for its financial assets or liabilities.
IESO Nova Scotia's financial instruments are comprised of the following: Financial instrument Classification Cash Amortized cost Receivables Amortized cost Accounts payable, accrued liabilities and provisions Amortized cost Line of credit...
AI summary The text outlines the financial instruments of IESO Nova Scotia, categorizing them under amortized cost. It lists cash, receivables, accounts payable, accrued liabilities, provisions, and a line of credit.
12. Accounts payable, accrued and other liabilities 2026 Accounts payable Accrued liabilities Compensation liabilities $ 1,546 1,571 243 $ 3,360 The carrying value of accounts payable, accrued liabilities and compensation liabilities appro...
AI summary The section outlines the accounts payable, accrued liabilities, and compensation liabilities for 2026, with a total carrying value of $3,360 million. It notes that the carrying value approximates fair value.
14. Credit facilities - a) In December 2025, IESO Nova Scotia entered into an unsecured revolving credit facility with the Province of Nova Scotia in the form of a line of credit in the amount of $10 million. At March 31, 2026, $6 million...
AI summary IESO Nova Scotia has two credit facilities: a $10 million unsecured revolving credit facility with the Province of Nova Scotia, of which $6 million was drawn by March 31, 2026, and a $37.5 million revolving demand facility with a commercial bank, secured by a guarantee from the Province of Nova Scotia. No amounts have been drawn on the latter facility as of March 31, 2026.
Irrevocable Standby Letter of Credit In January 2026, IESO Nova Scotia issued an irrevocable standby letter of credit in the amount of USD $12,300 to New Brunswick Power Corporation as security for the Tolling Expansion Backstop Agreement...
AI summary In January 2026, IESO Nova Scotia issued an irrevocable standby letter of credit worth USD $12,300 to New Brunswick Power Corporation as security for the Tolling Expansion Backstop Agreement. No funds have been claimed under the letter of credit as of March 31, 2026, and an annual interest charge of 0.3% applies.
2026 Salaries and wages Short-term employee benefits Post-employment pension $ 1,030 53 27 $ 1,110 18. Financial risk management
AI summary The document outlines financial risk management considerations in the context of 2026, including salaries, wages, and post-employment pension expenses. These figures are part of a broader financial planning and reporting framework.
d) Principal financial instruments The principal financial instruments used by the IESO Nova Scotia, from which financial instrument risk arises, are as follows: - Cash - Accounts receivable - Unbilled revenue - Trade and other payables -...
AI summary The principal financial instruments used by the IESO Nova Scotia include cash, accounts receivable, unbilled revenue, trade and other payables, and a line of credit. These instruments represent the main sources of financial risk for the organization.
The fair value of financial assets and liabilities, together with the carrying amounts shown in the Statement of FinancialPosition are as follows: Carrying Value Level 1 Fair Value Level 2 Level 3 Cash $ 695 $ 695 – – Accounts receivable $...
AI summary The text presents a table showing the fair value of financial assets and liabilities, including cash, accounts receivable, unbilled revenue, accounts payable, and line of credit, along with their carrying amounts. The data is part of the Notes to Financial Statements for the period from February 18, 2025, to March 31, 2026.
18. Financial risk management (continued) d) Principal financial instruments (continued) The different levels have been defined as follows: - Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. - Leve...
AI summary This section continues the discussion on financial risk management, focusing on the classification of financial instruments into three levels based on the observability of their inputs. Level 1 instruments have quoted prices in active markets, Level 2 instruments use observable inputs not directly quoted, and Level 3 instruments rely on unobservable inputs.