P-2NSPI (UARB) IR-1 to IR-33; NSPI (Irving Oil) IR-1 to IR-7; NSPI (CBRM) IR-1 to IR-17 - Responses
6 passages
RESPONSE TO INFORMATION REQUEST TO: NSUARB FROM: NSPI Question IR-2: The proposed load retention rate appears to be discouraging customers from using environmentally friendly natural gas in favour of energy derived predominantly from coal...
AI summary NSPI responds to a concern that the proposed load retention rate may discourage the use of natural gas in favor of coal. NSPI asserts its commitment to environmental regulations and highlights that natural gas is more environmentally friendly than coal, but warns against prematurely replacing existing resources with natural gas due to potential cost increases.
RESPONSE TO INFORMATION REQUEST TO: NSUARB FROM: NSPI Question IR-18 Page 8, line 6 Please provide the development of the fuel and variable expenses of 2.9 cents/KWh. Response IR-18: The 2.9 cents per kWh referred to on line 6, page 8 of M...
AI summary NSPI responds to an information request from NSUARB regarding the 2.9 cents/KWh fuel and variable expenses assumption used in the GRLF rate calculation. The figure is an illustrative assumption based on Proscreen analysis and represents the average incremental cost of generation. The expected average cost of thermal energy in 2000 is estimated at 2.7 cents/KWh.
Energy Charge: The energy charge per kilowatt-hour for all kilowatt-hours applicable under this rate schedule are $0.062 during the billing periods ending in the months of December, January, February, and March and $0.052 during the billin...
AI summary The energy charge per kilowatt-hour is set at $0.062 during certain months and $0.052 during others. Rates are adjusted annually based on diesel fuel prices from The Wall Street Journal, with adjustments limited by a bandwidth to prevent excessive changes, especially in the early years.
General Capabilities - The GAF Module uses probabilistic production costing techniques to simulate the effects of forced outages. - Most module calculations are performed seasonally, where seasons are defined by number of seasons and by nu...
AI summary The GAF Module uses probabilistic production costing techniques to simulate forced outages and manage seasonal and annual dispatch of thermal units, pumped hydro projects, and direct load control programs, with considerations for fuel usage, emissions, and environmental externalities.
Table UARB-IR-33-E Supplier A Supplier B Supplier C Supplier D Supplier E Off System Purchases A verage/Incr A verage/Incr A verage/Incr A verage/Incr A verage/Incr A verage/Incr ($/Mwh) ($/Mwh) ($/Mwh) ($/Mwh) ($/Mwh) ($/MWh) 2000 $72.87...
AI summary The table presents average and incremental costs from various suppliers and off-system purchases from 2000 to 2004. It notes that NSPI is obligated to purchase all energy produced from non-utility-owned generators under existing power purchase contracts, with no future contracts under negotiation.
Generation type/fuel GWh produced Thermal-coal 7015.0 Thermal-oil 2358.3 Hydro 890.9 Purchases 242.0 Wind 0.0 Total 10506.2 Fuel prices must remain confidential. However, our total cost of fuel and purchased power in 1998 was $257 .3 milli...
AI summary The text provides a breakdown of energy generation by type and fuel, with thermal-coal being the largest contributor. It also mentions fuel costs and the use of indigenous coal, which has decreased since 1998 due to supply issues at CBDC. Fuel prices are noted as confidential.
P-10-a[Full Document] Development and Use of Natural Gas: Socio-Economic Impact on the Cape Breton Regional Municipality
18 passages
Impact on the Electrical Energy Market The availability of natural gas in the Nova Scotia market can be expected to lead to competition with other fuels to meet demand for thermal electrical energy. The experience in other jurisdictions sh...
AI summary The availability of natural gas in Nova Scotia is expected to compete with coal for thermal electricity generation, potentially reducing coal usage. Factors such as environmental standards, deregulation, and low gas costs are driving this shift. NSPI plans to convert its Tuft's Cove station to dual-firing and may add new gas capacity. The impact on coal depends on CBDC's ability to supply competitively priced coal and assumptions about gas use, conversion economics, and electricity demand growth.
Impact on the Energy Market Nova Scotia households and bus,i.nesses spend about $1 billion annually on energy in final demand applications including space heating, hot water, cooking and process heat. The CBRM accounts for 12-15% of demand...
AI summary Nova Scotia households and businesses spend $1 billion annually on energy, with petroleum products and electricity as main sources. Natural gas could displace petroleum in the CBRM and mainland Nova Scotia, offering cost savings and reduced emissions, but may lead to job losses in energy distribution. A 10% price differential is expected, with market share projections varying by region.
Inter-fuel Economics Among fuels offering the same long-term supply security and reliability of delivery, cost tends to be the single most important factor in determining choice of fuel. Four factors go into the determination of cost from...
AI summary The document discusses inter-fuel economics, emphasizing that cost is the primary factor in fuel selection when supply security and reliability are equal. It outlines four cost factors from the consumer's perspective and notes that fuel prices in Nova Scotia in late 1998 are based on contracts and assumptions, with actual prices dependent on future regulatory decisions.
Table IV-3 Fuel Prices in Nova Scotia, 1998 Price $/unit Efficiency (Combustion/ Conversion) Delivered Cost ($/MMBtu) # 2 oil Domestic (litre) .32 .75 11.64 Commercial (litre) .20 .80 6.82 Industrial (litre) .20 .80 6.82 # 6 oil Commercial...
AI summary Table IV-3 presents fuel prices in Nova Scotia in 1998, including prices, efficiencies, and delivered costs for various fuels such as oil, propane, coal, and natural gas. The table notes that gas prices exclude lateral and distribution tariffs, which could add an additional $4.00–$6.00/MMBtu to the price depending on facility costs.
tariffs are structured. Source: NS Department of Natural Resources; various petroleum distribution companies; NSPI and CBDC annual reports. In order to penetrate markets in Nova Scotia, gas will have to be priced competitively. In new and...
AI summary The text discusses the pricing dynamics of gas relative to oil in residential, commercial, and industrial sectors in Nova Scotia. It highlights that significant price differentials are necessary to encourage conversion from oil to gas, especially when equipment replacement is not required. Current market conditions make it difficult for gas to compete with #6 oil in industrial applications.
- 5. Natural gas burner tip price is $2.75/mmbtu or $2.61/GJ to displace #2 oil and #6 oil in the ind'l and com'l/inst'l sectors. Table IV-8 Economics of Supplying Natural Gas to the CBRM ($000s) Ye ar 1 2 3 4 5 6 7 Potential Revenue (1) 5...
AI summary The natural gas burner tip price is set at $2.75/mmbtu or $2.61/GJ to displace #2 and #6 oil in industrial and commercial/institutional sectors. Table IV-8 shows the economics of supplying natural gas to the CBRM, indicating potential revenue and costs over seven years with a consistent surplus deficit.
Relative Prices Natural gas could play an important role as a future source of electrical energy in Nova Scotia; how important depends on relative fuel prices and pressures to reduce sulphur and other emissions. The significance of relativ...
AI summary Natural gas may have a future role in Nova Scotia's electricity generation, but its economic viability depends on relative fuel prices and emission reduction pressures. Converting coal-fired plants to natural gas or replacing them with gas-fired plants would be uneconomic without a significant price spread between coal and gas, which is unlikely given falling global coal prices.
Proposals To Use Gas To Generate Electricity NSPI has entered into a long-term contract (10 years) for gas delivery to the termination point of the Halifax lateral in Tuft's Cove. Though NSPI has the option of selling the gas if oil prices...
AI summary NSPI has a long-term gas contract for a 300 MW gas-fired plant at Tuft's Cove to displace coal use. Stora Forest Industries is considering a 250 MW plant at Point Tupper, which may reduce NSPI's load and coal demand. The impact on coal depends on NSPI's export market success and coal price competitiveness.
Whose Coal is Cut Back Depends on Price Under a zero electricity export case, the key question becomes whose coal is displaced by gas: CBDC, other (either domestic or imported), or both. Fig. V-2 shows that between 1993 and 1998, NSPI reli...
AI summary The document discusses how the use of natural gas affects coal demand from CBDC and other sources. It suggests that unless CBDC can supply coal at competitive prices, coal demand from NSPI would decrease, but not necessarily from CBDC. The availability of natural gas is not the limiting factor for CBDC coal demand, but rather CBDC's ability to remain competitive with other coal suppliers.
Table A-3 Fuel Prices in Nova Scotia, 1998 Price $/unit Efficiency (Combustion/ Conversion) Delivered Cost ($/mmbtu) # 2 oil Domestic (litre) .32 .75 11.64 Commercial (litre) .20 .80 6.82 Industrial (litre) .20 .80 6.82 # 6 oil Commercial...
AI summary Table A-3 presents fuel prices in Nova Scotia in 1998, including prices per unit, efficiency, and delivered costs for various fuels such as #2 and #6 oil, propane, and coal. The data is sourced from the NS Department of Natural Resources, petroleum distribution companies, and annual reports from NSPI and CBDC.
ed "co-firing"). What is more likely, and what is occurring elsewhere, is the use of gas to power higher efficiency ("Combined-Cycle") generating units when additional generating capacity is required. - Three effects are evident with the s...
AI summary The text discusses the potential use of natural gas in Nova Scotia, particularly the Sable gas project, and how market deregulation elsewhere in North America has influenced customer choice and competition in the gas sector. It highlights the complexities of pricing and the multiple entities involved in delivering natural gas to consumers.
nity, or so-called "city-gate"; - the toll to cover distribution system costs this toll pays for the small diameter lines needed to take the gas from the laterals to consumers in each community; and, - a margin to cover the costs of gas ma...
AI summary The document discusses the factors influencing the competitiveness of gas, including tolls for distribution systems and marketing costs. It also compares the price stability of oil, coal, and electricity, noting that coal prices are stable and electricity prices in Nova Scotia are linked to long-term contracts between NSPI and CBDC. The shift in NSPI's fuel mix from oil to coal is highlighted due to changing relative prices.
Combustion Efficiency and Operating Characteristics Combustion efficiency determines the actual cost of energy once it is converted to the user's needs. A shift to natural gas would cut the total amount of energy consurn.ed, where the shif...
AI summary The text discusses combustion efficiency across different sectors, noting that residential and industrial sectors may see efficiency gains or losses depending on fuel type and system design. Natural gas can improve efficiency in residential and power generation sectors, while industrial conversions may result in a slight efficiency loss but offset by other benefits.
Complying with Emissions Standards The measures needed to comply with emissions standards may impose direct or indirect costs on fuel users. Costs may take the form of investment in emissions control technology (eg, scrubbers on smoke stac...
AI summary The text discusses the challenges NSPI faces in complying with sulphur dioxide emissions standards under the Nova Scotia Environment Act. Options to reduce emissions include increasing energy imports, using low-sulphur coal, switching to natural gas, and installing scrubbers. However, the latter is not economically viable due to the age of the facility and the availability of more cost-effective alternatives.
What this means for the CBRM World coal prices are expected to continue to decline as utilities are forced away from coal-fired generating capacity in order to reduce greenhouse gas emissions. When the contract is re-negotiated in 2000, th...
AI summary World coal prices are expected to decline due to reduced coal-fired generating capacity and increased natural gas availability. This will put downward pressure on coal prices, requiring CBDC to reduce production costs, currently estimated at $55/tonne.
Issues Coal will continue to be an important source of electrical energy in Nova Scotia for many years to come. NSPI's coal-fired generating plants are relatively new (most built after 1980) with at least 20 years of useful life remaining....
AI summary Coal remains a significant energy source in Nova Scotia, with NSPI's coal plants having long remaining lifespans. At current fuel prices, replacing coal with gas is not economically viable. CBDC's future role in coal production is in question, as production has declined significantly, and imports are increasingly used to meet NSPI's coal needs.
Future Natural Gas Price Outlook Current long term forecasts for the price of natural gas in North American over the next fifteen to twenty years indicate a sustained but gradual increase in wellhead prices (ie, prices paid to producers)....
AI summary Long-term forecasts predict a slow increase in North American natural gas wellhead prices, while short to medium-term prices may remain flat due to lower oil prices and increased pipeline capacity from Western Canada. The U.S. Department of Energy's 1999 Annual Energy Outlook suggests delivered gas prices may decline due to reduced transportation costs.
Differences in the Relative Costs of Fuel Projections of ample natural gas supplies and low generating costs, relative to coal, have made it the preferred fuel for many independent power producers. The relative modularity of gas turbines a...
AI summary Natural gas is becoming a preferred fuel for power generation due to its lower costs and technological advancements compared to coal. Factors such as modularity, lower initial capital outlay, and advancements in natural gas-powered generating technology are contributing to this shift. The retirement of nuclear plants is also influencing the electricity outlook.
P-14Direct Evidence of Jatinder Kumar [Board Consultant]
4 passages
Attachment 2 to my Direct Evidence presents NSPI's purchased power and fuel costs. The average purchased power cost in 1998 was 6.697 cent/KWH as compared to NSPI's average fuel cost of 2.45 cents/KWH. NSPI's responses to UARB IR-33 shows...
AI summary The text discusses NSPI's purchased power and fuel costs in 1998, highlighting that the average purchased power cost was significantly higher than the average revenue from large customers. It also notes that NSPI's marginal energy costs during winter peak hours exceeded the revenue from large industrial customers, potentially leading to losses if rates are not adjusted.
eady begun" . In response to UARB IR-28, NSPI clarified this statement by stating that the availability of gas will result in a growing economy which will normally increase the demand for electricity. On pages 18 and 19, the 1998 Annual Re...
AI summary The document discusses NSPI's concerns regarding fuel supply and costs in 1998, including increased reliance on oil due to interruptions in coal supply from CBDC. It also mentions that potential load losses may alleviate these concerns and reduce emissions from reduced reliance on oil and coal.
JATINDER KUMAR COMPANY CASE NO. JURISDICTION Delmarva Power & Light Company EL93-24-000 FERC (Fuel Cost Waiver) Union Electric Company ER93-517-000 FERC Productivity Improvement Analysis FC 766 D.C. KPL Gas Company GR90-40 Missouri Delmarv...
AI summary The document lists various cases and proceedings involving multiple utility companies across different jurisdictions, including FERC, D.C., and state-specific cases. These cases cover a range of issues such as fuel cost waivers, billing selection, power sales, wheeling rates, and integrated resource planning.
Exchanges closed for the day COB - NYMEX Open High Low Last Change Volume December 99 0.0000 31.5000 30.9000 31.1500 -0.9600 🗫 264 January 2000 0.0000 28.5000 28.0000 28.2500 0.2500 33 6 month strip ave 25.9667 25.7833 25.8667 -0.0433 🖤 12...
AI summary The document provides a summary of energy market exchanges, including NYMEX and CBOT data for various commodities, with details on prices, volume, and changes. It also includes information about news sources and job listings.
77877Book of Authorities of Nova Scotia Power Inc.
5 passages
her fuels. It then will be addressed in the context of other economic circumstances that may (1) cause an existing customer to discontinue service or (2) prevent a new customer from using the service. The propriety of discounts based on th...
AI summary The text discusses the permissibility of utility discounts based on the price of competing fuels and other uses for customer resources. It references a past proceeding involving Northwest Natural Gas Company and the CPEX urea manufacturing plant, where discounted rates were allowed to ensure contribution to fixed costs.
Re Gulf States Utilities Company Docket No. 7309 — Tex PUC Bull — Texas Public Utility Commission May 13, 1987 OPINION and order approving experimental tariff rider offering rate discounts to large-volume electric customers with capacity f...
AI summary The Texas Public Utility Commission approved an experimental 'SUS' tariff rider offering rate discounts to large-volume electric customers with the capacity to install cogeneration facilities. The rider included a below-cost energy component reflecting hypothetical fuel costs and did not violate Rule 23.23(b)(2)(c) as it was not a cost-based mechanism for passing through fuel costs.
I. P.U.C. SUBST. R. 23.23(b)(2)(c) [I, %) Mr. Mentrup has expressed concern that schedule SUS is not subject to a fixed fuel factor and has expressed uncertainty as to whether the SUS charge should be viewed as constituting a fuel factor....
AI summary Mr. Mentrup argues that the SUS energy charge may be inconsistent with P.U.C. SUBST. R. 23.23(b)(2)(c) because it is not a fixed fuel factor. GSU contends that the SUS energy charge does not violate the rule and that it is not a cost-based rate designed to pass through fuel costs to customers.
. 32. The customer's energy charge is calculated by multiplying the customer's total MWH of consumption for the billing pc· riod by the appropriate heat rate value and then again by GSU's WACOG. 33. A customer's initial heat rate will incr...
AI summary The document explains how the SUS energy charge is calculated, noting that it increases annually and resets periodically to reflect gas turbine efficiency and maintenance. It also clarifies that the SUS energy charge is not a fuel factor or automatic fuel adjustment clause, and does not pass through CSU's fuel costs to SUS customers.
l of its witnesses and exhibits, on the same date that such application, petition, or statement of intent to change its rates is filed with the commission. 7. OPC's position is that the COCJ&Y charge for the SUS rate violates PUC Rule 23.2...
AI summary The OPC argues that the COCJ&Y charge for the SUS rate violates PUC Rule 23.23 and PURA by allowing monthly fuel rate changes without a hearing. The Company suggests a 'good cause' exception, but OPC notes this would set a precedent with broad implications. The examiners previously rejected a similar exception in Docket 6765, emphasizing the need for rulemaking over adjudicatory hearings for such policy changes.