N-1Application - Redacted
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17 Figure 1: Summary of Securitized Costs ($ million) Securitized Costs Eligible Costs Thermal Assets¹ $ 713.0 Thermal Assets Financing Cost Deferral² 27.6 PHP Deferral² 12.2 IESO Deferral² 20.2 Fuel and Purchased Power – Q3 2026 FAM Asset...
AI summary The text presents a summary of securitized costs, including thermal assets, financing cost deferrals, and other eligible costs totaling $987.5 million, with additional financing fees bringing the total securitization bond proceeds to $1,000.0 million. NS Power will reclassify the thermal asset balance to the Securitization Regulatory Asset.
Figure 4: Estimate of Ongoing Financing Costs Cost Type Estimated Ongoing Financing Costs – Year 1 Estimated Ongoing Financing Costs – Total Servicing Fees $500,000 $15,000,000 Accounting & Audit Fees 100,000 4,400,000 Rating Agency Survei...
AI summary Figure 4 outlines the estimated ongoing financing costs, including servicing fees, accounting and audit fees, rating agency surveillance fees, and other administrative costs. It also includes income tax, which significantly increases the total estimated costs.
22 11.6 Priority of Payments - 24 Securitized Surcharge collections remitted to the LP or the indenture trustee are expected to be - 25 applied generally in the following order of priority, subject to the terms of the definitive transactio...
AI summary This section outlines the priority of payments for Securitized Surcharge collections, specifying that funds are applied in a defined order: Ongoing Financing Costs, interest on Securitized Bonds, principal on Securitized Bonds, replenishment of reserve accounts, and finally the release of any surplus.
N-3Transcript of Technical Conference held October 15, 2026
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difference between non-fuel - revenue under PHP's current tariff and an above the line - tariff. And so we have included in the application a - breakdown in the calculation of that, and that is the - forecast deferral as of December 31st o...
AI summary The text discusses financial aspects of a tariff application, including revenue differences, deferrals related to the ISO and fuel costs, bond issuance, and thermal assets. It outlines unrecovered costs, financial estimates, and references the DDA annual report.
w you developed that monthly - number and how it compares to their budget that they - submitted. - MR. WILLETT: Yeah. Melissa, it's - Mike Willett here. - So those numbers are coming directly - from the IESO's application. So there was a l...
AI summary The discussion centers on revenue requirement collection mechanisms and fuel and purchase power costs, including the use of a Financial Accountability Mechanism (FAM) to address forecasted under-recoveries and the decision to issue a $1 billion bond to secure the best interest rates for customers.
e of the volatility in those bond - markets and we would be looking to lock in the lowest - yield possible. And we're aware of the fact that, to the - extent that time drags on, yields could go up. - And so we will not be wasting any - INT...
AI summary The discussion revolves around the potential rate increase in 2027, with a focus on fuel costs and the Financial Accountability Mechanism (FAM). The conversation highlights concerns about the impact of delayed decisions on bond yields and customer costs, as well as the need to lock in low rates quickly.
t interest to the benefit of customers on the - FAM. - MR. ROSCOE: That's helpful, Craig. - MR. MacDOUGALL: With respect to the - over or under-recovery and the additional FAM prepayments, - do they then they don't go into the FAM in the f...
AI summary The discussion centers on the Financial Accountability Mechanism (FAM) and its implications for Nova Scotia Power's rate base and customer benefits. It touches on the allocation of over-recovery funds to the FAM and the impact on equity returns and customer savings.
ve - gone and where we are already in '26, it's very clear that - we're going to be under-recovered in '27 with a BCF not - intending to be done until 2028. - So it's not under a guise and I think - it's a very reasonable approach to be to...
AI summary The speaker discusses the challenges of under-recovery in 2027 due to delayed BCF implementation and the need for a more nimble FAM process to handle fuel costs separately. They emphasize the volatility of fuel markets and the need for a more responsive approach to avoid financial imbalances and protect customer interests.
ese types of balances that we need to deal with, - and we're certainly recognizing that it's not in - customers' best interests to have those types of balances, - and not in anyone's best interest. - And so I think ultimately that's the -...
AI summary The discussion revolves around the management of financial balances, particularly the FAM (Financial Accountability Mechanism) and securitization assets. There is a concern about how prepayment amounts are worded in the Application and their impact on reducing the FAM balance, which is a regulatory asset.
in the LP. - So the LP's got back income no offsetting deduction, if - that makes sense. - MS. McNAMARA: So would the tax - expense in the LP be offset by a deduction in Nova Scotia - Power? - MR. FERGUSON: That's right. Like not - perfect...
AI summary The discussion revolves around the tax implications of transferring assets to a limited partnership (LP) and how this affects Nova Scotia Power's credit metrics. The transfer removes the equity component of financing, reducing taxable income and allowing Nova Scotia Power to reduce debt and equity in line with its capital structure.
the transaction. The bond - is a 30-year mortgage style bond, so very similar to how a - mortgage would work. You pay more interest in the early - years and a lower amount of principal and as your - principal decreases, so does your intere...
AI summary The text discusses a 30-year mortgage-style bond and its impact on the net present value of revenue requirements under different interest rates. It also outlines assumptions about the recovery of deferred depreciation and financing costs if securitization does not proceed, including an annual depreciation expense of $26.8 million.
riods lower than 30 - years checked or calculated or is that something that - could be done? - MR. FLEMMING: There was certainly not - one included in the application. I'm not sure if we would - be able to issue that tenor of bond for -– t...
AI summary The discussion revolves around bond tenors, discount rates used in net present value calculations, and the impact of shorter-term considerations on revenue requirements. Nova Scotia Power's approved weighted average cost of capital is noted as 6.59 percent, and thermal assets are highlighted as the largest contributor to net present value benefits.
ost benefit from an - NPV and revenue requirements perspective and, as you can - see there, every one of these components, including them, - provides a reduced revenue requirement to customers on a - net present value basis with the inclus...
AI summary The discussion outlines a structure where Nova Scotia Power forms a limited partnership to securitize regulatory assets, issuing bonds and loaning proceeds to Nova Scotia Power. This approach is designed to defer taxes and avoid adverse consequences for customers. Revenue requirements and NPV are considered, with the FAM cost reducing revenue requirements by over $20 million.
104036Doane Grant Thornton (NSPI) IR 1 to 12
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Request IR-3: - Reference: Sections 2.0 and 3.1; Figure 3; Appendix A, Summary; Appendix B, "Balances to - Securitize". - Please reconcile the references to financing fees. Appendix A and Section 2.0 describe $12.5 - million as 1.25 percen...
AI summary The text requests clarification on discrepancies in financing fees referenced in Appendix A and Section 2.0 of Request IR-3, noting a difference between 1.25% and 1.35% of $1 billion. It asks for confirmation of the correct percentage, explanation of the discrepancy, identification of affected schedules, and whether other financial or accounting conclusions are impacted.
Request IR-8: - Reference: Sections 11.0 and 12.1; Figures 10-11; Appendix A - Please provide NS Power's existing accounting memorandum or other supporting analysis for the - proposed securitization transaction, including the applicable ac...
AI summary Request IR-8 asks NS Power to provide an accounting memorandum and supporting analysis for a proposed securitization transaction, covering recognition, reclassification, financing costs, asset transfers, consolidation, balance-sheet presentation, and illustrative journal entries.