Topic:"Fuel Cost Adjustment" in M03154

01 Fuel includes the total cost, including freight, of all fuels used in the generation of electrical energy. NSPI primarily uses solid fuel, natural gas, and heavy fuel oil; however, fuel also includes light fuel oil Deleted: coal and fue...

AI summary The document defines 'fuel' as the total cost, including freight, of all fuels used in electricity generation by NSPI, which primarily uses solid fuel, natural gas, and heavy fuel oil, along with light fuel oil and fuel additives. It also defines 'power purchased' as the cost of electrical energy bought for resale from other producers.

POLICY 03 The Company should record the cost of fuels consumed and the cost of power purchased as an expense in the statement of earnings in the period of consumption or purchase. 1

AI summary The policy mandates that the Company record fuel consumption and power purchase costs as expenses in the period of consumption or purchase, aligning with accrual accounting principles for accurate financial reporting.

POLICY - 01 The taxes payable method should be used to record income tax expense except as outlined in paragraph 02. - 02 The Company will recognize a deferred regulatory asset (liability) related to the Fuel Adjustment Mechanism (FAM). Fu...

AI summary The text outlines accounting policies for income tax expense, emphasizing the taxes payable method except for the Fuel Adjustment Mechanism (FAM), which involves deferred regulatory assets/liabilities. Future income tax assets/liabilities are recognized based on NSPI's statutory tax rates and FAM reversals.

Fuel - 07 Fuel inventories, consisting of oil, coal, gas and fuel additives, are accounted for using the weighted average cost method. This method assigns costs between fuel inventory on hand and fuel consumed on the assumption that fuel i...

AI summary The document outlines the accounting methods used for fuel inventories, including the weighted average cost method, and describes the preparation of monthly fuel reports. It also explains how fuel purchases received but not yet invoiced are accounted for in inventory and accrued liabilities.

10 Physical counts are performed quarterly with any adjustments charged or credited to fuel expense Deleted: at least annually based on the UARB approved fuel manual practices. Deleted: June 18, 2008

AI summary The document discusses the frequency of physical counts, which are performed quarterly, and adjustments to fuel expense based on the UARB approved fuel manual practices. A previous version of the policy required adjustments at least annually, but this was deleted on June 18, 2008.

DEFINITIONS - 01 Greenhouse gas emission credit expenditures include costs associated with the acquisition of option credits or investments in projects that would produce emission reduction credits. - 02 Appropriate expenses include those...

AI summary The document outlines policies for handling greenhouse gas emission credit expenditures by NSPI, including when they should be expensed or deferred. It also discusses the conditions under which deferred costs should be charged to fuel expense, such as when credits are used to reduce penalties, sold, or when the benefit is no longer valid.

- 1. used to reduce penalties otherwise payable; - 2. sold; or - 3. when the expectation of the benefit is no longer valid. 11 The value of the credits would be assessed quarterly to ensure that their fair value exceeds the carrying value....

AI summary The text discusses the handling of credits, including their use to reduce penalties, sale, and write-down when their fair value is less than carrying value. Credits are assessed quarterly, and any write-downs are charged to fuel expense.

DEFINITIONS - 03 Derivative instruments designed to mitigate the risk of the Company's exposure to changes in market prices of, for example, natural gas, oil, coal & other commodities, interest rates, and foreign currency exchange rates, w...

AI summary The text defines key financial and accounting terms related to derivative instruments, hedging, and fair market value. It outlines what constitutes a derivative instrument, how hedging relationships are established, and the principles of hedge accounting.

POLICY - 11 The Company engages in price risk management activities at TUC to manage the Company's exposure to changes in the market prices of natural gas and heavy fuel oil. - 12 The Company does not use derivative instruments for trading...

AI summary The Company manages price risk through derivative instruments to mitigate exposure to natural gas and heavy fuel oil price fluctuations, without engaging in trading or speculative activities. Gains and losses from derivatives are deferred and accounted for when related hedged items are recognized, following CICA guidelines.

ACCOUNTING FOR FINANCIAL INSTRUMENTS AND HEDGES - 6960 - 18 Realized and unrealized gains and losses on derivative instruments used to hedge the fuel activities of TUC should be amortized over the term hedged, which is typically one month....

AI summary The document outlines the accounting treatment for financial instruments and hedges related to fuel activities. It specifies that gains and losses from derivative instruments should be amortized over the hedged term, deferred when applicable, and expensed as inventory is consumed. The policy also details procedures for handling changes in hedged item timing and the responsibilities of different staff roles in ensuring compliance.

Introduction of the Fuel Adjustment Mechanism The Fuel Adjustment Mechanism ("FAM") which came into effect January 1, 2009, governs the recovery of NSPI's fuel related costs. Subsequently, the Board approved an amendment to NSPI's Accounti...

AI summary The Fuel Adjustment Mechanism (FAM) was introduced in 2009 to recover NSPI's fuel costs. An amendment to NSPI's accounting policy was approved in 2009 to align fuel costs with hedge settlements. NSPI proposes extending this treatment to all hedges and filing an amendment for Board approval ahead of US GAAP adoption in 2011.

Introduction of the Fuel Adjustment Mechanism The Fuel Adjustment Mechanism ("FAM") which came into effect January 1, 2009, governs the recovery of NSPI's fuel related costs. Subsequently, the Board approved an amendment to NSPI's Accounti...

AI summary The Fuel Adjustment Mechanism (FAM) was introduced in 2009 to govern the recovery of NSPI's fuel costs. An amendment to NSPI's accounting policy was approved in 2009 to align fuel costs with hedge settlements. NSPI proposes extending this policy to all hedges and requests the Board's approval by September 1, 2010.

DEFINITIONS - Derivative instruments designed to mitigate the risk of the Company's exposure to changes in market prices of, for example, natural gas, oil, coal & other commodities, interest rates, and foreign currency exchange rates, will...

AI summary The document defines key terms related to financial instruments and hedging activities, including derivative instruments, fair market value, hedging relationships, and hedge accounting. It outlines how financial instruments are accounted for, particularly under mark-to-market accounting, and references accounting standards and handbooks.

POLICY 11 The Company engages in risk management activities to manage the Company's exposure to changes in the market prices of commodities, foreign exchange and interest rates. Deleted: price Deleted: at TUC 12 The Company does not use de...

AI summary The Company engages in risk management activities to manage exposure to commodity prices, foreign exchange, and interest rates. It uses derivative instruments solely for risk management, not for trading or speculation, and adheres to specific policies and procedures for managing these risks.

- a. The front office should ensure the hedging activity is in compliance with the appropriate risk management policy; - b. The front office should document the specific risk exposure being hedged in accordance with its risk management obj...

AI summary The text outlines procedures for hedging activities, including compliance with risk management policies, documentation requirements, and accounting treatment of derivative instruments used for hedging fuel purchases, capital projects, and interest rates. These procedures ensure proper recognition and amortization of gains and losses.

TRANSITIONAL PROVISIONS - This policy is effective January 1, 2011 and should be applied retroactively with restatement of prior periods except as outlined below. - Any item of property, plant and equipment, construction work-in-progress a...

AI summary The transitional provisions outline how the policy will be applied retroactively, including handling of prior period items, foreign exchange adjustments, and treatment of hedged items. Adjustments are deferred and recognized over time, with specific rules for when hedged items move forward or back in time.

DEFINITIONS - Derivative instruments designed to mitigate the risk of the Company's exposure to changes in market prices of, for example, natural gas, oil, coal & other commodities, interest rates, and foreign currency exchange rates, will...

AI summary The document defines derivative instruments, fair market value, and hedging relationships, and explains how mark-to-market accounting is applied to financial instruments not in a valid hedging relationship. These definitions and accounting methods are crucial for understanding how the company manages financial risks and reports its financial position.

POLICY - 11 The Company engages in risk management activities to manage the Company's exposure to changes in the market prices of commodities, foreign exchange and interest rates. - 12 The Company does not use derivative instruments for tr...

AI summary The Company engages in risk management activities to address exposure from commodity prices, foreign exchange, and interest rates. Derivative instruments are used solely for risk management, not trading or speculation, and are managed under various approved policies. The impact of these instruments is deferred to regulatory assets or liabilities, and physical contracts are recognized through net earnings as fuel is consumed or resold.

- a. The front office should ensure the hedging activity is in compliance with the appropriate risk management policy; - b. The front office should document the specific risk exposure being hedged in accordance with its risk management obj...

AI summary The text outlines procedures for hedging activities, including compliance with risk management policies, documentation requirements, and the accounting treatment of derivative instruments used for hedging. It specifies how gains and losses on these instruments should be recognized and amortized depending on the type of hedged item.

POLICY 11 The Company engages in risk management activities to manage the Company's exposure to changes in the market prices of commodities, foreign exchange and interest rates. Deleted: price Deleted: at TUC 12 The Company does not use de...

AI summary The Company engages in risk management for commodity, foreign exchange, and interest rate risks, using derivative instruments solely for risk management purposes. The Company adheres to specific policies and defers the impact of derivative instruments to regulatory assets or liabilities, without testing the effectiveness of these instruments.

- a. The front office should ensure the hedging activity is in compliance with the appropriate risk management policy; - b. The front office should document the specific risk exposure being hedged in accordance with its risk management obj...

AI summary The text outlines procedures for managing and accounting for hedging activities, including documentation requirements, fair value recognition, foreign currency translation, and amortization of gains and losses on derivative instruments used for various hedging purposes.

Deleted: ¶ 20 The Company does not enter into hedging relationships it expects to be materially ineffective.¶ Deleted: 21 Deleted: 22 Deleted: and the derivative no longer qualifies for hedge accounting Deleted: 2009 Deleted: 6950 balance...

AI summary The text discusses the Company's approach to hedging relationships, including the conditions under which they are entered into, adjustments when the timing of hedged items changes, and the handling of gains or losses when initial transactions are settled. The policy emphasizes regulatory asset/liability treatment and compliance with accounting standards.

COMMON DIVIDENDS - 7120

AI summary The document discusses the topic of common dividends related to Nova Scotia Power Inc. (NSPI) and its affiliated entities, including Nova Scotia Power Corporation (NSPC) and Nova Scotia Power Finance Corporation (NSPFC). It includes financial information and accounting standards relevant to dividend calculations and reporting.

l auditor review are completed. NSPI filed the first batch with the Board on July 9, 2010 which included 24 policies. NSPI met with the Board's consultants on August 4, 2010 to review the first batch. Please find attached NSPI's second fil...

AI summary Nova Scotia Power Inc. (NSPI) submitted revised accounting policies to the Board, including new sections on the Fuel Adjustment Mechanism and Regulated Return on Equity, and removed sections on Greenhouse Gas Emission Credits. NSPI requests the Board's review and offers to meet with the Board or its consultants during the process.

Appendix A: 1520 Rate Base 1530 ofEquity Regulated Return 1540 Audit, Nominating and Corporate Governance Committee 1560 Materiality 1570 Cost Allocation Policy 2200 Foreign Currency Translation 4100 Electric Revenue 5100 Fuel and Power Pu...

AI summary This section outlines the Rate Base, which is a key component in determining the financial structure and regulatory framework for utility services. It includes various accounting and financial policies, such as the Fuel Adjustment Mechanism, Cost Allocation Policy, and Materiality, all of which are essential for rate-making and regulatory oversight.

04 Billed Electric Revenue Billed electrical revenue and related kWh statistics are recorded by customer classification from computerized month-end billing reports and from other revenue reports from the Billing Department for certain larg...

AI summary Billed electric revenue is recorded by customer classification using billing reports. Revenue from the Fuel Adjustment Mechanism (FAM) follows NSPI's accounting policies, specifically Section 5110 of its manual.

POLICY The Company should record the cost of fuels consumed and the cost of power purchased as an expense in the statement of earnings in the period of consumption or purchase. Deleted: 1

AI summary The Company must expense fuel and purchased power costs in the period they are consumed or purchased, aligning with accounting standards.

FUEL ADJUSTMENT MECHANISM - 5110

AI summary The document addresses the Fuel Adjustment Mechanism (FAM) under proceeding 5110, focusing on its role in adjusting fuel costs. Key entities involved include Nova Scotia Power Inc. (NSPI) and the Nova Scotia Utility and Review Board (UARB). The topic centers on fuel-cost-adjustment mechanisms and their regulatory implications.

BACKGROUND The Nova Scotia Utility and Review Board ("UARB") approved the implementation of a Fuel Adjustment Mechanism ("FAM") in the 2009 General Rate Decision effective January 1, 2009.

AI summary The Nova Scotia Utility and Review Board (UARB) approved the Fuel Adjustment Mechanism (FAM) in the 2009 General Rate Decision, effective January 1, 2009.

DEFINITION - The FAM includes the difference between actual fuel costs and amounts recovered from customers in the current period and in the two preceding years. The following are the components of the FAM: - a) Base Fuel Costs Customer ra...

AI summary The Fuel Adjustment Mechanism (FAM) comprises four components: Base Fuel Costs, Actual Adjustment (AA), Balance Adjustment (BA), and Incentive/Disincentive. It tracks differences between actual and recovered fuel costs, using regulatory assets/liabilities, and adjusts rates annually based on sales forecasts. A 10% incentive/disincentive applies to accumulated FAM balances, capped at $5M, impacting earnings statements.

POLICIES - Differences between actual fuel costs and amounts recovered from customers accumulate in the FAM Regulatory Asset (Liability) included in "Other Assets" or "Other Liabilities" on the Balance Sheet and subsequently become an adju...

AI summary The document explains how differences between actual fuel costs and recovered amounts are managed through the Fuel Adjustment Mechanism (FAM) Regulatory Asset/Liability, impacting balance sheets and subsequent electricity rates. Interest is earned on accumulated balances using the weighted average cost of capital (WACC), compounded semi-annually by Nova Scotia Power Inc. (NSPI).

PROCEDURES - The FAM Regulatory Asset (Liability) is recorded on the balance sheet with Other Assets (Liabilities). The interest and incentive is accumulated to the FAM Regulatory Asset (Liability). The effect of income tax is recorded on...

AI summary The text outlines the accounting treatment of the Fuel Adjustment Mechanism (FAM), detailing its recording on balance sheets, income statements, and tax impacts. It explains how FAM revenues are classified as electric revenues and how interest related to FAM assets/liabilities is accounted for.

Fuel Handling - Limestone (020)

AI summary The document outlines a section on fuel handling related to limestone, with references to accounting standards, utility companies, and regulatory bodies. Key acronyms include FAM (Fuel Adjustment Mechanism) and UARB (Nova Scotia Utility and Review Board).

Fuel - 07 Fuel inventories, consisting of oil, coal and fuel additives, are accounted for using the weighted average cost method. This method assigns costs between fuel inventory on hand and fuel consumed on the assumption that fuel is con...

AI summary The document outlines the accounting methods used for fuel inventories, including the weighted average cost method, monthly fuel reporting, and the treatment of fuel purchases not yet invoiced. These practices are applied to fuel types such as oil, coal, and fuel additives.

CURRENT ASSETS INVENTORIES - 6700 10 Physical counts and surveys are performed quarterly for coal and monthly for oil with any adjustments charged or credited to fuel expense based on the Nova Scotia Utility and Review Board ("UARB") appro...

AI summary The document outlines the frequency of physical counts and surveys for coal and oil, conducted quarterly and monthly respectively, with adjustments to fuel expense based on the Nova Scotia Utility and Review Board's approved fuel manual practices.

01 Financing charges The financing charges figure on the Statement of Earnings is a net amount comprised of several different income and expense items. The individual items may include: - a. long-term debt interest; - b. amortization of de...

AI summary The financing charges figure on the Statement of Earnings includes various income and expense items such as long-term and short-term debt interest, amortization of debt issue costs, foreign exchange gains/losses, and others. It also includes deferred carrying charges related to DSM and FAM approved by the UARB, as well as interest income from non-electricity-related activities.

POLICY - 01 Income tax expense should be categorized as current or deferred income tax expense as appropriate. - The Company uses the applicable enacted tax rate when measuring current and deferred income tax expense. - The Company follows...

AI summary The document outlines the Company's approach to accounting for income tax expenses, including the use of enacted tax rates, treatment of investment tax credits, and recognition of deferred regulatory assets and liabilities, particularly in relation to the Fuel Adjustment Mechanism (FAM).

Deleted: December 1, 2009 Deleted: December 31, 2009 Deleted: March 24, 2009 Page 1: [1] Deleted Renee Boudreau 9/8/2010 10:45:00 PM 01 The taxes payable method should be used to record income tax expense except as outlined in paragraph 02...

AI summary The text discusses the accounting treatment of income tax expense and the Fuel Adjustment Mechanism (FAM) related to deferred regulatory assets and liabilities. It outlines how future income tax expenses and assets are recognized based on statutory income tax rates when the FAM reverses. The text also references the application of administrative and vehicle overhead for self-constructed assets.

4) Re: Fuel and Power Purchase - 5100 In Policy 05, the policy mentions only charging power purchases to an expense as they are received; should this not be on an accrual basis so there is proper matching? Please explain. NSPI accounts for...

AI summary The discussion revolves around the accounting treatment of power purchases, with a question raised about whether they should be recorded on an accrual basis for proper matching. NSPI explains that power purchases are expensed immediately upon receipt due to their immediate use.

04 Billed Electric Revenue Billed electrical revenue and related kWh statistics are recorded by customer classification from computerized month-end billing reports and from other revenue reports from the Billing Department for certain larg...

AI summary Billed electric revenue and related kWh statistics are recorded by customer classification using month-end billing reports and other revenue reports. Revenue from the Fuel Adjustment Mechanism is recorded according to Nova Scotia Power Inc.'s Accounting Policy and Procedures Manual.

POLICY 03 The Company should record the cost of fuels consumed and the cost of power purchased as an expense in the statement of earnings in the period of consumption or purchase.

AI summary The Company is instructed to record the cost of fuels consumed and the cost of power purchased as an expense in the statement of earnings during the period of consumption or purchase.

04 Fuel Consumption Fuel costs are charged to expense as follows: - a. Fuels are recorded as inventory when received. - b. As fuel is consumed, its cost is relieved from inventory using the weighted average cost method and is charged to fu...

AI summary The document outlines how fuel costs are accounted for, specifying that fuels are recorded as inventory upon receipt and charged to expense using the weighted average cost method as they are consumed. Consumption reports from generating plants are used to support these entries, and derivative transaction settlements are also included in fuel expense.

FUEL ADJUSTMENT MECHANISM - 5110

AI summary The document discusses the Fuel Adjustment Mechanism under the Nova Scotia Utility and Review Board. It includes a visual reference to page 41, Picture 2, which may contain relevant data or analysis related to fuel costs and adjustments.

BACKGROUND 01 The Nova Scotia Utility and Review Board ("UARB") approved the implementation of a Fuel Adjustment Mechanism ("FAM") in the 2009 General Rate Decision effective January 1,2009.

AI summary The UARB approved the implementation of a Fuel Adjustment Mechanism in the 2009 General Rate Decision, effective January 1, 2009.

DEFINITION - 02 The FAM includes the difference between actual fuel costs and amounts recovered from customers in the current period and in the two preceding years. The following are the components of the FAM: - a) Base Fuel Costs Customer...

AI summary The Fuel Adjustment Mechanism (FAM) adjusts electricity rates based on differences between actual fuel costs and amounts recovered from customers. It includes components like the Base Fuel Costs, Actual Adjustment (AA), Balance Adjustment (BA), and Incentive (discentive) mechanisms, which influence regulatory assets and liabilities.

POLICIES - 03 Differences between actual fuel costs and amounts recovered from customers accumulate in the FAM Regulatory Asset (Liability) included in "Other Assets" or "Other Liabilities" on the Balance Sheet and subsequently become an a...

AI summary The text discusses the Fuel Adjustment Mechanism (FAM) Regulatory Asset (Liability) and how differences between actual fuel costs and recovered amounts are accounted for on the Balance Sheet. It also mentions that interest is earned on the accumulated FAM balance at the weighted average cost of capital.

FINANCING CHARGES - 5800

AI summary The document discusses financing charges under the Nova Scotia Power Inc. (NSPI) regulatory proceeding, focusing on accounting standards and financial mechanisms such as the Fuel Adjustment Mechanism (FAM) and Return on Equity (ROE). It also references regulatory bodies like the Nova Scotia Utility and Review Board (UARB) and accounting standards such as US-GAAP and C-GAAP.

01 Financing charges The financing charges figure on the Statement of Earnings is a net amount comprised of several different income and expense items. The individual items may include: - a. long-term debt interest; - b. amortization of de...

AI summary The document explains that financing charges on the Statement of Earnings include various components such as long-term and short-term debt interest, amortization of debt issue costs, foreign exchange gains/losses, and others. It also notes that interest expense should be recorded on an accrual basis.

POLICY - 01 Income tax expense should be categorized as current or deferred income tax expense as appropriate. - 02 The Company uses the applicable enacted tax rate when measuring current and deferred income tax expense. - 03 The Company f...

AI summary The document outlines the Company's accounting policies for income tax expenses, including the categorization of current and deferred taxes, the use of enacted tax rates, and the treatment of investment tax credits. It also addresses the recognition of deferred regulatory assets and liabilities related to the Fuel Adjustment Mechanism (FAM).

Computer Hardware &Operating Software (072)

AI summary The section titled 'Computer Hardware & Operating Software (072)' outlines the regulatory context and technical considerations related to computer systems and software used in utility operations, including references to accounting standards and regulatory bodies.

APPLICATION OF ADMINISTRATIVE OVERHEAD (CONTRACTED ASSETS) - 6235

AI summary The document discusses the application of administrative overhead for contracted assets, focusing on accounting and financial considerations related to Nova Scotia Power Inc. and other relevant entities. It includes references to accounting standards and financial mechanisms.

PURCHASE PRICE DISCREPANCY - 6250

AI summary The document discusses a purchase price discrepancy under matter 6250, likely related to accounting or financial practices involving Nova Scotia Power Inc. (NSPI) and Nova Scotia Power (NSP). The context includes references to accounting standards and regulatory oversight.

GENERAL - 02 The present value of this estimated future expenditure is recognized as a liability with an equivalent amount added to the carrying amount of the associated fixed asset consistent with FASB ASC 410-20. - 03 The Nova Scotia Uti...

AI summary The text discusses the recognition of future expenditures related to the removal of long-lived assets as a liability and the associated adjustment to the carrying value of fixed assets under FASB ASC 410-20. It also notes the UARB's depreciation order from 2004 and how differences between UARB-approved depreciation and GAAP calculations are treated as regulated assets.

Fuel - 07 Fuel inventories, consisting of oil, coal and fuel additives, are accounted for using the weighted average cost method. This method assigns costs between fuel inventory on hand and fuel consumed on the assumption that fuel is con...

AI summary Fuel inventories are accounted for using the weighted average cost method, with monthly reports tracking fuel purchases, consumption, and inventory balances. Fuel purchases received but not yet invoiced are accrued and recorded as liabilities.

CURRENT ASSETS INVENTORIES - 6700 10 Physical counts and surveys are performed quarterly for coal and monthly for oil with any adjustments charged or credited to fuel expense based on the Nova Scotia Utility and Review Board ("UARB") appro...

AI summary The document mentions that physical counts and surveys for coal and oil are conducted quarterly and monthly, respectively, with adjustments to fuel expense based on the Nova Scotia Utility and Review Board's approved fuel manual practices.

POLICY - 01 Rate-regulated enterprises such as Nova Scotia Power Inc. ("NSPI") have to consider the impact of accounting decisions on revenue requirements and rate stability. If a regulatory authority approves the recovery of certain costs...

AI summary The text discusses how Nova Scotia Power Inc. (NSPI) accounts for costs and revenue requirements under regulatory oversight. It outlines the deferral and amortization of large operating expenditures, the use of a Fuel Adjustment Mechanism (FAM), and the application of ASC 980 for rate-regulated accounting policies approved by the Nova Scotia Utility and Review Board (UARB).

ACCOUNTING FOR FINANCIAL INSTRUMENTS AND HEDGES - 6960 POWia

AI summary The document discusses the accounting for financial instruments and hedges under Nova Scotia Power Inc. (NSPI), referencing the Nova Scotia Utility and Review Board (UARB) and accounting standards such as US-GAAP and C-GAAP. It includes terms like Fuel Adjustment Mechanism (FAM), Return on Equity (ROE), and Weighted Average Cost of Capital (WACC).

DEFINITIONS - 03 Derivative instruments designed to mitigate the risk of the Company's exposure to changes in market prices of, for example, natural gas, oil, coal & other commodities, interest rates, and foreign currency exchange rates, w...

AI summary The text defines key financial and accounting terms related to derivative instruments, hedging, and fair market value. These definitions are relevant for understanding how the Company manages financial risks and accounts for hedging activities.

ACCOUNTING FOR FINANCIAL INSTRUMENTS AND HEDGES - 6960 Mark-to-Market Accounting: Under the mark-to-market method of accounting, all financial instruments, other than instruments in a valid hedging relationship, are recorded at fair market...

AI summary The document discusses the mark-to-market accounting method, where financial instruments not in a valid hedging relationship are recorded at fair market value through net earnings.

POLICY - The Company engages in risk management activities to manage the Company's exposure to changes in the market prices of commodities, foreign exchange and interest rates. - The Company does not use derivative instruments for trading...

AI summary The Company engages in risk management activities to mitigate exposure to commodity prices, foreign exchange, and interest rates. Derivative instruments are used solely for risk management and not for trading or speculation. These instruments are accounted for under hedge accounting, with gains and losses deferred to regulatory assets or liabilities.

ACCOUNTING FOR FINANCIAL INSTRUMENTS AND HEDGES - 6960 PO",.. - a. The front office should ensure the hedging activity is in compliance with the appropriate risk management policy; - b. The front office should document the specific risk ex...

AI summary The document outlines accounting procedures for financial instruments and hedges, emphasizing compliance with risk management policies, documentation requirements, and the treatment of gains and losses on derivatives. It details how fair value changes, foreign currency translations, and fees are accounted for in accordance with accounting standards.

ACCOUNTING FOR FINANCIAL INSTRUMENTS AND HEDGES - 6960 balance sheet or income statement item that would have been used had the hedged item still existed in the month the underlying hedging item settles. - If the timing of the hedged item...

AI summary This section outlines the accounting treatment for financial instruments and hedges, emphasizing the deferral of gains or losses when hedging items are settled and the importance of proper documentation and compliance by front and back office staff.

ACCOUNTS PAYABLE AND ACCRUED CHARGES - 8220

AI summary The document section titled 'Accounts Payable and Accrued Charges - 8220' appears to be a financial report section, likely discussing accounts payable and accrued charges related to Nova Scotia Power Inc. However, the content is not fully visible as it is represented by an image placeholder.

September 13, 2010 Nancy McNeil Clerk of the Board Nova Scotia Utility and Review Board 1601 Lower Water Street, 3 rd Floor P.O. Box 1692, Unit "M" Halifax, NS B3J 3S3 Re: NSPI Fuel Adjustment Mechanism 2009 Review – P-887(1) Dear Ms. McNe...

AI summary NSPI submitted a report on the Fuel Adjustment Mechanism (FAM) review in 2009, detailing stakeholder conferences, written input, and the establishment of a FAM Small Working Group to address unresolved issues. The report includes notes from multiple meetings and discussions.

equently submitted to the FAM Small Working Group attendees, for input and to serve as a record. (Please refer to Confidential Attachments 2, 3, and 4 for copies of the FAM Small Working Group notes.) As noted in NSPI's response to Avon IR...

AI summary The FAM Small Working Group has resolved several topics, including the completion of the revised FAM POA and draft Fuel Manual revisions. Remaining items for discussion include the FAM Forecasting Methodology for Import Power and Low Sulphur Coal, and finalizing suggested Fuel Manual revisions. Research on hedging is being conducted by Black & Veatch.

01 Financing charges The financing charges figure on the Statement of Earnings is a net amount comprised of several different income and expense items. The individual items may include: - a. long-term debt interest; - b. amortization of de...

AI summary The financing charges on the Statement of Earnings include various income and expense items such as long-term and short-term debt interest, amortization of debt issue costs, foreign exchange gains/losses, and others. These items are netted together and include components like the debt portion of AFUDC and deferred carrying charges from DSM and FAM programs approved by the UARB.

POLICY - 01 Income tax expense should be categorized as current or deferred income tax expense as appropriate. - The Company uses the applicable enacted tax rate when measuring current and deferred income tax expense. - The Company follows...

AI summary The document outlines the Company's approach to income tax expense categorization, the use of enacted tax rates, and the accounting for investment tax credits. It also addresses the recognition of deferred regulatory assets and liabilities related to the Fuel Adjustment Mechanism (FAM).

Deleted: December 1, 2009 Deleted: December 31, 2009 Deleted: March 24, 2009 Page 1: [1] Deleted Renee Boudreau 9/8/2010 10:45:00 PM 01 The taxes payable method should be used to record income tax expense except as outlined in paragraph 02...

AI summary The text discusses the accounting treatment of income tax expense related to the Fuel Adjustment Mechanism (FAM) and the recognition of deferred regulatory assets or liabilities. It also references the recording of tax costs and recoveries, including the net Part VI.1 tax as an additional cost of preferred share dividends.

r 22, 2010. Please confirm if the Board's summary of the process and proposed approvals are correct. In addition, the Board has the following questions about the May 14 and September 15 submissions: - 1. Re: Cost Allocation Policy 1570 In...

AI summary The Board is seeking clarification on several accounting policy and procedure issues related to Nova Scotia Power Inc., including cost allocation, generic account usage, R&D expensing, fuel and power purchase accounting, capitalization of costs, and construction work in progress tolerances.

Tel: (416) 865-0200 Fax: (416) 865-0887 www.bdo.ca BDO Canada LLP Royal Bank Plaza, South Tower 200 Bay Street. 33rd Floor PO Box 32 Toronto, ON M5J 2J8 Canada December 9th, 2010 Nancy McNeil Regulatory Affairs Officer/Clerk Nova Scotia Ut...

AI summary BDO Canada LLP confirms that the proposed changes to Nova Scotia Power Inc.'s Accounting Policies and Procedures Manual do not appear unreasonable or provide an unfair advantage. The report highlights differences between US GAAP and Canadian GAAP, particularly regarding termination costs, employee benefits, and investment tax credits. BDO recommends monitoring the first US GAAP statements for transitional changes.

04 Billed Electric Revenue Billed electrical revenue and related kWh statistics are recorded by customer classification from computerized month-end billing reports and from other revenue reports from the Billing Department for certain larg...

AI summary Billed electric revenue and related kWh statistics are recorded by customer classification from computerized month-end billing reports and other revenue reports. Revenue related to the Fuel Adjustment Mechanism (FAM) is recorded according to NSPI's Accounting Policy and Procedures Manual.

FUEL AND POWER PURCHASED - 5100

AI summary The document section 'FUEL AND POWER PURCHASED - 5100' appears to be related to the purchase of fuel and power, potentially involving cost adjustments and regulatory considerations, though no specific details are provided in the text.

DEFINITIONS - 01 Fuel includes the total cost, including freight, of all fuels used in the generation of electrical energy. Nova Scotia Power Inc. ("NSPI") primarily uses solid fuel, natural gas, and heavy fuel oil; however, fuel also incl...

AI summary The definitions section outlines fuel as the total cost of all fuels used in electricity generation, including solid fuel, natural gas, and heavy fuel oil, as well as light fuel oil and additives. It also defines power purchased as the cost of electrical energy bought for resale from other producers.

POLICY 03 The Company should record the cost of fuels consumed and the cost of power purchased as an expense in the statement of earnings in the period of consumption or purchase.

AI summary The Company is instructed to record the cost of fuels consumed and the cost of power purchased as an expense in the period of consumption or purchase, reflecting proper accounting practices for these costs.

04 Fuel Consumption Fuel costs are charged to expense as follows: - a. Fuels are recorded as inventory when received. - b. As fuel is consumed, its cost is relieved from inventory using the weighted average cost method and is charged to fu...

AI summary Fuel costs are recorded as inventory upon receipt and charged to expense as they are consumed using the weighted average cost method. Consumption reports from generating plants are used to make these entries, and derivative transaction settlements are also included in fuel expense.

05 Power Purchases The cost of power purchases are charged to expense (account 076) as power is received.

AI summary Power purchases are accounted for as expenses when power is received, charged to account 076.

FUEL ADJUSTMENT MECHANISM - 5110

AI summary The document discusses the Fuel Adjustment Mechanism (FAM) in Nova Scotia, focusing on its role in aligning base rates with actual fuel costs. The text includes a reference to a page containing visual information, likely related to the mechanism's implementation or impact.

BACKGROUND 01 The Nova Scotia Utility and Review Board ("UARB") approved the implementation of a Fuel Adjustment Mechanism ("FAM") in the 2009 General Rate Decision effective January 1, 2009.

AI summary The Nova Scotia Utility and Review Board approved the implementation of a Fuel Adjustment Mechanism in the 2009 General Rate Decision, effective January 1, 2009.

DEFINITION - 02 The FAM includes the difference between actual fuel costs and amounts recovered from customers in the current period and in the two preceding years. The following are the components of the FAM: - a) Base Fuel Costs Customer...

AI summary The Fuel Adjustment Mechanism (FAM) is defined as including differences between actual fuel costs and amounts recovered from customers over the current and two preceding years. It has components such as the Base Fuel Costs, Actual Adjustment (AA), Balance Adjustment (BA), and Incentive (discentive), which impact regulatory assets, liabilities, and earnings statements.

POLICIES - 03 Differences between actual fuel costs and amounts recovered from customers accumulate in the FAM Regulatory Asset (Liability) included in "Other Assets" or "Other Liabilities" on the Balance Sheet and subsequently become an a...

AI summary This section outlines the accounting and regulatory treatment of the Fuel Adjustment Mechanism (FAM) in Nova Scotia. It describes how differences between actual and recovered fuel costs are tracked in a FAM Regulatory Asset or Liability, how interest is applied, and how future income tax impacts are recorded. The FAM balance is adjusted annually and approved by the UARB for rate changes.

01 Financing charges The financing charges figure on the Statement of Earnings is a net amount comprised of several different income and expense items. The individual items may include: - a. long-term debt interest; - b. amortization of de...

AI summary The financing charges figure on the Statement of Earnings includes various income and expense items such as long-term and short-term debt interest, amortization of debt issue costs, foreign exchange gains/losses, and others. Interest expense should be recorded on an accrual basis.

11 Defeasance Earnings These earnings are generated through the management of the portfolio of investments related to the defeased debt.

AI summary Defeasance earnings are derived from the management of investments tied to defeased debt, which involves the use of specific financial instruments and accounting standards to ensure proper handling and reporting of such earnings.

POLICY - 01 Income tax expense should be categorized as current or deferred income tax expense as appropriate. - 02 The Company uses the applicable enacted tax rate when measuring current and deferred income tax expense. - 03 The Company f...

AI summary The document outlines the Company's approach to accounting for income tax expenses, including the use of enacted tax rates, the flow-through method for investment tax credits, and the recognition of deferred regulatory assets and liabilities related to the Fuel Adjustment Mechanism (FAM).

COST COMPONENTS Cost components represent examples of the types of major pieces of equipment included in each capital activity. They are created through detailed consultation with our asset builders and maintainers, and conform to Federal...

AI summary The document outlines cost components as major pieces of equipment included in capital activities, developed through consultation with asset builders and maintainers and aligned with FERC standards.

GENERAL - The present value of this estimated future expenditure is recognized as a liability with an equivalent amount added to the carrying amount of the associated fixed asset consistent with FASB ASC 410-20. - The Nova Scotia Utility a...

AI summary The text discusses the recognition of future expenditures as liabilities and the depreciation order issued by the Nova Scotia Utility and Review Board, aligning with FASB ASC 410-20 and GAAP standards.

UNBILLED REVENUE RECEIVABLE - 6650

AI summary The document discusses the Unbilled Revenue Receivable (6650), which pertains to revenue that has been earned but not yet billed. This is a financial accounting topic involving accrual adjustments and revenue recognition.

Fuel - 07 Fuel inventories, consisting of oil, coal and fuel additives, are accounted for using the weighted average cost method. This method assigns costs between fuel inventory on hand and fuel consumed on the assumption that fuel is con...

AI summary The document outlines the accounting methods used for fuel inventories, including the weighted average cost method, monthly fuel reporting procedures, and the treatment of fuel purchases not yet invoiced.

CURRENT ASSETS INVENTORIES - 6700 10 Physical counts and surveys are performed quarterly for coal and monthly for oil with any adjustments charged or credited to fuel expense based on the Nova Scotia Utility and Review Board ("UARB") appro...

AI summary Quarterly physical counts and surveys for coal and monthly ones for oil are conducted, with adjustments to fuel expense based on the Nova Scotia Utility and Review Board's approved fuel manual practices.

POLICY - 01 Rate-regulated enterprises such as Nova Scotia Power Inc. ("NSPI") have to consider the impact of accounting decisions on revenue requirements and rate stability. If a regulatory authority approves the recovery of certain costs...

AI summary The text discusses how Nova Scotia Power Inc. (NSPI) manages accounting decisions affecting revenue requirements and rate stability, including deferral and amortization of costs and the use of the Fuel Adjustment Mechanism (FAM) approved by the Nova Scotia Utility and Review Board (UARB).

NEW BUSINESS COSTS - 6940

AI summary The document discusses new business costs related to Nova Scotia Power Inc. (NSPI) and includes references to financial and regulatory processes. It involves topics such as return on equity, fuel adjustment mechanisms, and capital expenditures.

DEFINITIONS - 03 Derivative instruments designed to mitigate the risk of the Company's exposure to changes in market prices of, for example, natural gas, oil, coal & other commodities, interest rates, and foreign currency exchange rates, w...

AI summary This section defines key financial and accounting terms related to derivative instruments, hedging, and fair market value. It outlines the purpose and characteristics of derivative instruments, the concept of hedging relationships, and the accounting treatment for hedging and mark-to-market valuation.

POLICY - 11 The Company engages in risk management activities to manage the Company's exposure to changes in the market prices of commodities, foreign exchange and interest rates. - 12 The Company does not use derivative instruments for tr...

AI summary The Company engages in risk management activities for commodities, foreign exchange, and interest rates. It uses derivative instruments solely for risk management, not for trading or speculation, and adheres to specific policies and procedures. The impact of derivative instruments is deferred to regulatory assets or liabilities, and physical contracts are recognized through net earnings as fuel is consumed or resold.

PREFERRED DIVIDENDS - 7320

AI summary This section of the document, titled 'Preferred Dividends - 7320,' appears to be part of a regulatory proceeding related to Nova Scotia's utility sector, specifically addressing financial and accounting matters involving Nova Scotia Power Inc. and the Nova Scotia Utility and Review Board.

LONG-TERM DEBT - 8100

AI summary The document section 'LONG-TERM DEBT - 8100' appears to be a regulatory proceeding chunk related to long-term debt, potentially involving Nova Scotia Power Inc. and other entities, though the specific content is not visible due to the image link.

ACCOUNTS PAYABLE AND ACCRUED CHARGES - 8220

AI summary The document discusses accounts payable and accrued charges related to Nova Scotia Power Inc. and other entities, highlighting financial obligations and accounting standards relevant to the regulatory proceeding.

04 Billed Electric Revenue Billed electrical revenue and related kWh statistics are recorded by customer classification from computerized month-end billing reports and from other revenue reports from the Billing Department for certain larg...

AI summary Billed electric revenue and related kWh statistics are recorded by customer classification from month-end billing reports and other revenue reports. Revenue from the Fuel Adjustment Mechanism is recorded according to NSPI's Accounting Policy and Procedures Manual Section 5110.

DEFINITIONS - 01 Fuel includes the total cost, including freight, of all fuels used in the generation of electrical energy. Nova Scotia Power Inc. ("NSPI") primarily uses solid fuel, natural gas, and heavy fuel oil; however, fuel also incl...

AI summary The document defines key terms used in the regulatory proceeding. 'Fuel' encompasses the total cost of all fuels used in electricity generation, including solid fuel, natural gas, and various oils. 'Power purchased' refers to the cost of electrical energy acquired from other producers for resale.

POLICY 03 The Company should record the cost of fuels consumed and the cost of power purchased as an expense in the statement of earnings in the period of consumption or purchase.

AI summary The Company is advised to record the cost of fuels consumed and the cost of power purchased as an expense in the statement of earnings in the period of consumption or purchase.

04 Fuel Consumption Fuel costs are charged to expense as follows: - a. Fuels are recorded as inventory when received. - b. As fuel is consumed, its cost is relieved from inventory using the weighted average cost method and is charged to fu...

AI summary The document outlines the accounting treatment for fuel costs, including inventory recording, weighted average cost method for consumption, and inclusion of derivative transaction settlements in fuel expense.

FUEL ADJUSTMENT MECHANISM - 5110

AI summary The document discusses the Fuel Adjustment Mechanism (FAM) as part of a regulatory proceeding, likely involving cost recovery and rate design considerations. It includes a reference to a page with an image, which may contain further details on the mechanism.

BACKGROUND 01 The Nova Scotia Utility and Review Board ("UARB") approved the implementation of a Fuel Adjustment Mechanism ("FAM") in the 2009 General Rate Decision effective January 1,2009.

AI summary The UARB approved the implementation of a Fuel Adjustment Mechanism in the 2009 General Rate Decision, effective January 1, 2009.

DEFINITION - 02 The FAM includes the difference between actual fuel costs and amounts recovered from customers in the current period and in the two preceding years. The following are the components of the FAM: - a) Base Fuel Costs Customer...

AI summary The Fuel Adjustment Mechanism (FAM) includes base fuel costs, actual adjustments, balance adjustments, and incentives or disincentives. It regulates how fuel costs are recovered from customers and adjusts rates based on actual costs, sales forecasts, and regulatory processes.

POLICIES - 03 Differences between actual fuel costs and amounts recovered from customers accumulate in the FAM Regulatory Asset (Liability) included in "Other Assets" or "Other Liabilities" on the Balance Sheet and subsequently become an a...

AI summary The text discusses the Fuel Adjustment Mechanism (FAM) and how differences between actual fuel costs and recovered amounts are accounted for in the FAM Regulatory Asset (Liability) on the Balance Sheet. Interest is earned on this balance at the weighted average cost of capital (WACC), compounded semi-annually by NSPI.

01 Financing charges The financing charges figure on the Statement of Earnings is a net amount comprised of several different income and expense items. The individual items may include: - a. long-term debt interest; - b. amortization of de...

AI summary The financing charges figure on the Statement of Earnings includes various items such as long-term and short-term debt interest, amortization of debt issue costs, foreign exchange gains/losses, and others. It also includes deferred carrying charges related to DSM and FAM approved by the UARB.

10 Foreign Exchange Expense It is the Company's intent to assign foreign exchange costs directly to the end-use accounts based on an estimate of the foreign exchange rate set for the month. However, due to fluctuations in exchange rates th...

AI summary The company aims to assign foreign exchange costs directly to end-use accounts using an estimated monthly exchange rate. However, fluctuations and timing differences lead to over or under applied costs that are not reallocated. The U.S. funds bank account balance is translated at month-end, affecting the foreign exchange account.

11 Defeasance Earnings These earnings are generated through the management of the portfolio of investments related to the defeased debt.

AI summary Defeasance earnings are derived from managing a portfolio of investments tied to defeased debt, highlighting the financial strategies involved in handling such assets.

POLICY - 01 Income tax expense should be categorized as current or deferred income tax expense as appropriate. - 02 The Company uses the applicable enacted tax rate when measuring current and deferred income tax expense. - 03 The Company f...

AI summary The document outlines the Company's accounting policies for income tax expenses, including categorization as current or deferred, use of enacted tax rates, and handling of investment tax credits and deferred income tax assets. It also addresses the recognition of deferred regulatory assets related to the Fuel Adjustment Mechanism (FAM).

INCOME TAXES - 5900 - 10 A monthly income tax provision is recorded by multiplying the Company's effective combined federal and provincial income tax rate forecasted for the year (calculated without inclusion of the forecasted FAM adjustme...

AI summary The text outlines the methodology used by the Company to record income tax provisions, including the calculation of monthly income tax provisions, taxable capital estimates, and the treatment of Part VI.1 tax. It also describes the accounting treatment for capital cost allowance and the general ledger accounts used for tax expenses.

ASSETS

AI summary The section titled 'ASSETS' provides an overview of asset-related information, including financial accounting standards, regulatory frameworks, and utility operations. It highlights key entities and regulatory bodies involved in asset management and compliance.

ASSETS

AI summary The section titled 'ASSETS' provides an overview of asset-related information, including financial accounting standards, regulatory frameworks, and utility operations. It highlights key entities and regulatory bodies involved in asset management and compliance.

COST COMPONENTS AND ELEMENTS - 6140

AI summary The document outlines the cost components and elements relevant to the Nova Scotia Power Inc. (NSPI) regulatory proceeding, covering accounting standards, fuel adjustment mechanisms, and other financial considerations.

COST COMPONENTS Cost components represent examples of the types of major pieces of equipment included in each capital activity. They are created through detailed consultation with our asset builders and maintainers, and conform to Federal...

AI summary The document outlines cost components as examples of major equipment included in capital activities, developed through consultation with asset builders and maintainers, and aligned with FERC guidelines.

COST COMPONENTS AND ELEMENTS .. 6140

AI summary The text discusses cost components and elements related to a regulatory proceeding, focusing on financial and operational aspects of utility services. It includes references to accounting standards, regulatory bodies, and cost adjustment mechanisms.

Fuel Handling - Oil (019)

AI summary The document section 'Fuel Handling - Oil (019)' introduces the topic of fuel handling related to oil within the regulatory context of Nova Scotia. It does not provide detailed content yet but sets the stage for discussions on fuel handling procedures and mechanisms.

Ash Handling Equipment (021)

AI summary The document discusses the topic of Ash Handling Equipment, specifically under the context of Nova Scotia Power Inc. and related regulatory proceedings. It does not provide specific details on the arguments or claims made regarding the equipment.

COST COMPONENTS AND ELEMENTS - 6140

AI summary The document outlines the cost components and elements related to the Nova Scotia Power Inc. (NSPI) and includes references to accounting standards, regulatory bodies, and financial mechanisms such as the Fuel Adjustment Mechanism (FAM).

Computer Hardware &Operating Software (072)

AI summary The section titled 'Computer Hardware & Operating Software (072)' outlines the accounting and regulatory considerations related to computer hardware and operating software used in the utility sector, including references to accounting standards and regulatory bodies.

PROPERTY, PLANT AND EQUIPMENT INTANGIBLE ASSETS - 6225

AI summary The document discusses Property, Plant, and Equipment (PP&E) and Intangible Assets under the accounting code 6225, likely focusing on financial reporting standards and asset management practices.

POLICIES - 04 All receivables (trade and non-trade) are classified as loans and receivables and follow an amortized cost model. Receivables that have a relatively short period (less than one year) of time to maturity are not adjusted to re...

AI summary NSPI classifies all receivables as loans and receivables using an amortized cost model, with short-term receivables not adjusted for discounting due to minimal impact. Receivables are recorded at fair value upon transaction occurrence, and an allowance for doubtful accounts is required to adjust balances to expected collectible amounts.

Fuel - 07 Fuel inventories, consisting of oil, coal and fuel additives, are accounted for using the weighted average cost method. This method assigns costs between fuel inventory on hand and fuel consumed on the assumption that fuel is con...

AI summary The document outlines the accounting methods used for fuel inventories, including the weighted average cost method, monthly fuel reports, and the treatment of fuel purchases not yet invoiced. These practices ensure accurate financial reporting of fuel costs and inventory balances.

CURRENT ASSETS INVENTORIES - 6700 10 Physical counts and surveys are performed quarterly for coal and monthly for oil with any adjustments charged or credited to fuel expense based on the Nova Scotia Utility and Review Board ("UARB") appro...

AI summary Physical counts and surveys are conducted quarterly for coal and monthly for oil. Adjustments to fuel expense are made based on the Nova Scotia Utility and Review Board's approved fuel manual practices.

POLICY - 01 Rate-regulated enterprises such as Nova Scotia Power Inc. ("NSPI") have to consider the impact of accounting decisions on revenue requirements and rate stability. If a regulatory authority approves the recovery of certain costs...

AI summary This section discusses the accounting practices of Nova Scotia Power Inc. (NSPI) under regulatory oversight, including the deferral and amortization of large operating expenditures, the use of the Fuel Adjustment Mechanism (FAM), and the application of ASC 980 for rate-regulated accounting policies approved by the Nova Scotia Utility and Review Board (UARB).

POLICY - The Company engages in risk management activities to manage the Company's exposure to changes in the market prices of commodities, foreign exchange and interest rates. - The Company does not use derivative instruments for trading...

AI summary The Company engages in risk management activities to manage exposure to commodity prices, foreign exchange, and interest rates, using derivative instruments for risk management purposes rather than trading or speculation. The Company defers the impact of these instruments to regulatory assets or liabilities and does not test the effectiveness of its hedges, assuming they are 100% effective.

ACCOUNTING FOR FINANCIAL INSTRUMENTS AND HEDGES - 6960 PO",.. - a. The front office should ensure the hedging activity is in compliance with the appropriate risk management policy; - b. The front office should document the specific risk ex...

AI summary The text outlines accounting procedures for financial instruments and hedges, including documentation requirements, fair value recognition, treatment of gains and losses, and amortization of fees. These guidelines ensure compliance with risk management policies and regulatory standards.

ACCOUNTS PAYABLE AND ACCRUED CHARGES - 8220

AI summary The document discusses accounts payable and accrued charges related to Nova Scotia Power Inc. and includes references to the Fuel Adjustment Mechanism and the Nova Scotia Utility and Review Board.