Topic:"Fuel Cost Adjustment" in M03097

NON-CONFIDENTIAL 1 Request IR-4: 2 3 Reference: Attachment 3, Page 6 of 7 – "Approval to proceed in June will allow this project 4 to be in service for the winter of 2010/11 peak season. The sooner it is undertaken; the 5 sooner NSPI custo...

AI summary The request asks for an estimate of benefits lost to NSPI customers in 2010 due to a project delay. The response refers to UARB IR-7 and UARB IR-12 (b) for information on the projected change in net present value and the lack of quantification of the delay's impact on 2010 fuel costs.

NON-CONFIDENTIAL 1 2 The implications of this are that the analysis, in particular the Base Case analysis, 3 is likely conservative (i.e. benefits are likely understated) for the following 4 reasons: 5 6  The Tufts Cove Units are marginal...

AI summary The text discusses the implications of the Base Case analysis, suggesting it may be conservative due to factors such as the marginal cost nature of Tufts Cove Units, potential benefits from wind development, and continued savings from duct-firing. It emphasizes the value of increased natural gas-fired generation flexibility and favorable emissions profile despite higher capital costs.

nal project funding". What the Board would really like you to do is to assume that there is going to be or there will be a further increase and then tell us what process you would follow in that case. Mr. Janega: Madam Chair, we are close...

AI summary The document discusses the economic analysis of a project, including the net present value (NPV) and the impact of factors such as fuel price, load assumptions, and wind generation on the project's viability. NSPI argues that the base plan understates benefits due to potential additional value from reduced loading on Tufts Cove Units and increased opportunities for wind development.

Counsel: ...the Board had asked questions around a couple of specific points. One of them was related to a comment in our information regarding the description of a net positive value. What we were trying to represent was the benefit in th...

AI summary The counsel explains that the project's net present value (NPV) becomes positive when duct firing is included, despite a negative NPV of $1.85 million in a low-load scenario. They argue that current natural gas prices may lead to higher capacity factors and greater benefits for customers through the fuel adjustment mechanism.

IN THE MATTER OF AN APPLICATION For Authority to Overspend (ATO) - TUC6 Waste Heat Recovery Project CI#28098 - (P-128.07) NewPage Port Hawkesbury Corp. and Bowater Mersey Paper Company Ltd. ("NPB") Information Requests to Nova Scotia Power...

AI summary The document outlines information requests made by NewPage Port Hawkesbury Corp. and Bowater Mersey Paper Company Ltd. to Nova Scotia Power Inc. regarding the TUC6 Waste Heat Recovery Project and an application for Authority to Overspend (ATO).

nal project funding". What the Board would really like you to do is to assume that there is going to be or there will be a further increase and then tell us what process you would follow in that case. Mr. Janega: Madam Chair, we are close...

AI summary The document discusses the economics of a project, with NSPI defending its net present value calculations and highlighting potential benefits from operational changes and increased wind generation. The Board questioned the project's viability, and NSPI argued that the base plan may have understated benefits.

Counsel: ...the Board had asked questions around a couple of specific points. One of them was related to a comment in our information regarding the description of a net positive value. What we were trying to represent was the benefit in th...

AI summary The counsel discusses a project's net present value (NPV) under different operating scenarios, emphasizing that duct firing improves the project's value despite a negative NPV of $1.85 million in a worst-case scenario. They note that current natural gas prices may lead to higher capacity factors and benefits for customers through the fuel adjustment mechanism.