Topic:"Fuel Cost Adjustment" in M07151

12 Efficiency Nova Scotia Financial Statement for the year ending December 31, 2014, issued March 27, 2015, page 14. 1 the approved DSM spending of $102, 500 for 2016-2018). The model was subsequently 2 updated by NS Power with its own usa...

AI summary NS Power proposes a true-up mechanism to reconcile DSM expenditures with actual customer load and programming, ensuring accurate cost recovery. The process involves annual adjustments based on forecast and actual data, with details to be filed in November 2015.

1 In Q2 of each year (after E1 has the final financial results for the prior year), the 2 adjustment amount can be determined and will be applied in the following 3 January 1 recovery requirement (plus any newly created balances as reporte...

AI summary In Q2 of each year, following E1's final financial results for the prior year, an adjustment amount is determined and applied in January of the following year, along with any newly created balances reported by E1 by November 30.

Table 1 (PCR) (2016) Unnamed: 0 Unnamed: 1 Unnamed: 2 Unnamed: 3 Unnamed: 4 Unnamed: 5 Unnamed: 6 Unnamed: 7 Unnamed: 8 Unnamed: 9 Unnamed: 10 26 NaN Municipal 114175.697911 0.018927 59476.557373 192255.877189 0.018852 101097.092676 0.0188...

AI summary Table 1 from the 2016 PCR presents data on various categories including municipal, unmetered, and general replacement/load follow-up, with figures related to costs and percentages. The data includes sources such as EfficiencyOne 2016-2018 DSM Resource Plan and '2016 Base Cost of Fuel Calculations' from Appendix E of the 2016 BCF Reply Evidence.

Repayment of RSA Unnamed: 0 Unnamed: 1 Unnamed: 2 Unnamed: 3 Unnamed: 4 Unnamed: 5 Unnamed: 6 NaN NaN NaN NaN NaN NaN NaN 1.0 Column A B C D E 2.0 Rate Classes DSM Smoothing Adjustment from 2014 Outstanding Amount at the end of 2015 Repaym...

AI summary The text presents a table detailing the repayment of the RSA (Rate Smoothing Adjustment) for various rate classes from 2016 to 2018, showing outstanding amounts and repayment through the FAM (Fuel Adjustment Mechanism). It includes data for residential, industrial, and other classes, along with assumptions about interest rates.

NON-CONFIDENTIAL 1 Request IR-3: 2 3 It is apparent that the benefit of increasing DSM costs is a reduced fuel bill for NSP as a 4 result of reduced KWH production requirements. Please indicate why, or why not, in 5 NSP's opinion DSM costs...

AI summary The document addresses whether DSM costs should be included in the FAM. NS Power agrees, citing section 79M(5) of the Public Utilities Act, as DSM costs are fully recoverable and align with FAM processes.

DSM Cost Allocation and Recovery (NSUARB M07151) NSPI Responses to Multeese Information Requests 1 Request IR-2: 1 Options 2 and 3 the Company would propose to establish total revenue requirement on a 2 per class basis and then change the...

AI summary NSPI outlines options for establishing revenue requirements on a per-class basis to reimburse inter-class loans with interest. The company suggests that repayment within specific time windows could avoid the need for a true-up, depending on whether the repayment occurs through a Base Cost of Fuel (BCF) Application or a General Rate Application (GRA).

Original Amount $22,647,491 Annual Payback ‐$3,240,023 Annual Interest 3.00% Total Interest $3,272,694 59 Nov‐19 $12,675,557 $0 $31,689 ($270,002) $0 $12,437,244 $2,448,154 $31,689 $2,479,843 60 Dec‐19 $12,437,244 $0 $31,093 ($270,002) $0...

AI summary This table outlines the interest and payback calculations for an amount of $22,647,491 over several months, showing decreasing principal amounts and consistent interest charges, with a total interest of $3,272,694 and an annual payback of -$3,240,023.

Amortization Schedule: General Demand Original Amount $4,480,926 Annual Payback ‐$641,056 Annual Interest 3.00% Total Interest $647,520 Years 8 Payments Per Year 12 Total Payback $5,128,446 Start Year 2015 Monthly Payment ‐$53,421 $4,554,4...

AI summary The document presents an amortization schedule for General Demand, showing an original amount of $4,480,926 with an annual payback of -$641,056, an interest rate of 3.00%, and a total interest of $647,520 over 8 years. Payments are made monthly, starting in 2015, with a monthly payment of -$53,421.

Original Amount $4,480,926 Annual Payback ‐$641,056 Annual Interest 3.00% Total Interest $647,520 47 Nov‐18 $3,064,656 $0 $7,662 ($53,421) $0 $3,018,896 $400,054 $7,662 $407,716 48 Dec‐18 $3,018,896 $0 $7,547 ($53,421) $0 $2,973,022 $407,7...

AI summary The text presents a financial table showing the original amount of $4,480,926 and an annual payback of -$641,056. The table details monthly interest calculations, including amounts, interest rates, and cumulative totals from November 2018 to December 2019.

Original Amount $2,521,616 Annual Payback ‐$360,751 Annual Interest 3.00% Total Interest $364,388 47 Nov‐18 $1,724,618 $0 $4,312 ($30,063) $0 $1,698,867 $225,128 $4,312 $229,440 48 Dec‐18 $1,698,867 $0 $4,247 ($30,063) $0 $1,673,051 $229,4...

AI summary The document presents a financial table detailing the original amount of $2,521,616 and an annual payback of -$360,751. The table includes monthly interest calculations and cumulative totals over a period from November 2018 to December 2019.

Original Amount $1,459,597 Annual Payback ‐$208,815 Annual Interest 3.00% Total Interest $210,920 62 Feb‐20 $770,729 $0 $1,927 ($17,401) $0 $755,254 $163,792 $1,927 $165,718 63 Mar‐20 $755,254 $0 $1,888 ($17,401) $0 $739,741 $165,718 $1,88...

AI summary The document presents a financial table showing the original amount of $1,459,597 with an annual payback of -$208,815. It includes monthly interest calculations and cumulative interest over time at a rate of 3.00% over a period of 8 years.

Amortization Schedule: Municipal Original Amount $407,863 Annual Payback ‐$58,350 30 Jun‐17 $348,190 $0 $870 ($4,863) $0 $344,198 $22,990 $870 $23,861 31 Jul‐17 $344,198 $0 $860 ($4,863) $0 $340,196 $23,861 $860 $24,721 32 Aug‐17 $340,196...

AI summary The document presents an amortization schedule for a municipal loan, showing the original amount, annual payback, and monthly payments over time. It details the breakdown of principal, interest, and closing balances for each period from June 2017 to February 2018.

M07151 - Nova Scotia Power Inc. - DSM Cost Allocation and Recovery (E-R-15) \ 1 The Board's letter of December 3, 2015 directed NSPI to provide details regarding specific cost recovery and accounting treatment of the following DSM componen...

AI summary The Nova Scotia Utility and Review Board directed NSPI to detail DSM cost recovery and accounting for 2014-2018 programs, RSA, DCRR, and balance adjustments. The EPIA Act extended DSM contracts to 2019, limited expenditures to $34.05M, and imposed rate-stability restrictions. NSPI announced it would not file a General Rate Application for three years, seeking only fuel cost adjustments below inflation through 2019.

lass Benefit Costs and are directly assigned to participating classes. The Elenchus approach would also eliminate the cost of tracking Enabling Strategies invoices on the basis of rate class benefit. In its submission, E1 stated that based...

AI summary The document discusses allocation methods for Enabling Strategies investments, with E1 citing 2012 and 2014 Elenchus recommendations. Parties debate Rate Smoothing Adjustment recovery via GRA or BCF, Fuel Stability Plan adjustments in M07348, and true-up mechanisms for DSM costs. SBA, Industrial Group, and E1 propose differing timelines for true-ups.

NSPI's Reply Submission dated Feb 23, 2016 In response to participant submissions, NSPI noted the following: - a) Program costs should be allocated in alignment with E1 's budgets, then compared against actual DSM expenditures on an annual...

AI summary NSPI outlines responses to regulatory submissions, proposing program cost allocation aligned with E1 budgets, rate smoothing adjustments via rate changes, Enabling Strategies methodology, treating 2016 DSM costs as operating expenses, and deferring 2017-2018 DSM cost decisions until a GRA filing or June 30, 2016.

expenditures, it chose not to do so regarding the 2017, 2018, and 2019 DSM expenditures and requested approval to defer determination until "the earlier of the Company filing a GRA or June 30, 2016". The EPIA requires NSPI to file an appli...

AI summary NSPI decided not to file a GRA for 2017-2019, absorbing DSM costs within existing rates. The EPIA restricts rate changes until 2020. The Board approves using the FSP to recover Rate Smoothing Adjustment loans, pending FSP/BCF proceeding (M07348) outcomes. DSM costs are deferred until GRA filing or June 30, 2016.

-relationship between cost allocation and cost recovery, the Board will defer setting a timetable for stakeholder participation on both of those matters pending receipt of NSPl's November 30th filing. On November 9, 2015, the Province of N...

AI summary The Province of Nova Scotia's 2015 electricity plan emphasizes rate stability through a 2017-2019 Rate Stability Period, including fuel cost forecasting, limited rate increases, and new legislation. The Board defers stakeholder participation on cost allocation and recovery until NSPI's November 30 filing.

Request IR-15: - With respect to page 7 of the December 18 submission where NSPI lists three items that it wishes - the Board to acknowledge, please comment on the absence of any item referencing the 2013 - and 2014 Balancing Adjustment or...

AI summary NSPI submitted three items to the Board for acknowledgment, but the absence of references to the 2013 and 2014 Balancing Adjustment and 2014 RSA is noted. The Board is requested to comment on this omission in the submission.

INFORMATION REQUESTS To: Nova Scotia Power Inc. ("NSPI") From: The Municipal Electric Utilities of Nova Scotia Co-operative Donald Regan, Superintendent, Berwick Electric Commission 236 Commercial Street, Berwick, NS, B0P 1E0 902 538 4007;...

AI summary The Municipal Electric Utilities of Nova Scotia Co-operative is requesting detailed information from Nova Scotia Power Inc. regarding the 2014 DCRR amounts in rates, the allocation of DSM funds in 2015 and 2016, and whether DSM costs should be included in the Fuel Adjustment Mechanism (FAM). The letter references past Board decisions and seeks clarification on how these funds are accounted for in current rates.

Settlement Agreement WHEREAS the Nova Scotia Utility and Review Board (the "Board") provided its Decision on the 2014 Fuel Adjustment Mechanism ("FAM") Deferral Heming (M06475) on November 25, 2014; AND WHEREAS Nova Scotia Power Inc. (NS P...

AI summary This Settlement Agreement outlines how Nova Scotia Power Inc. (NS Power) will apply excess earnings to reduce the FAM Deferral Account, including a specific allocation of $41.3M by 2015, and sets terms for future earnings allocation and the suspension of the FAM incentive in 2015.

2014 RATE SMOOTHING ADJUSTMENT Appendix B to NSPI's October 30, 2015 letter sets out the outstanding amounts owing and to be repaid as of the end of 2015. There were two "borrowing" classes (Small General and Large General) and four "lendi...

AI summary The 2014 Rate Smoothing Adjustment involves outstanding repayment amounts between borrowing and lending classes as of 2015. NSPI proposes three options for reallocation or true-up adjustments, while the Industrial Group opposes converting funds to efficiency services and advocates for three-year recovery with interest. E1's program challenges and NSPI's lack of discussion with E1 are noted.

3.0 NS POWER'S POSITION The current 25/75 per cent split between system cost and participant cost was agreed to by stakeholders to the 2009 Settlement Agreement. It appropriately recognizes that rate class benefits from DSM programs are hi...

AI summary NS Power defends the 25/75 split of DSM costs between system and participant classes, aligning with cost-of-service principles and the 2009 Settlement Agreement. It argues that participating classes should bear 75% of DSM costs due to direct benefits, while non-participating classes cover external benefits. DSM allocation is integrated into the COS framework, with true-ups handled via GRA filings.

CONCLUSION To summarize, the Industrial Group recommends: - 1. the Board acknowledge NSPI may properly expense the first year of 2015 DSM costs and all of 2016 DSM costs as operating expenses in 2016; - 2. the Board direct NSPI and E1 to u...

AI summary The Industrial Group recommends that the Board acknowledge NSPI's 2015-2016 DSM cost expensing, direct cost reduction discussions, adjust deferred cost amortization, align DSM cost inclusion with GRA timelines, use BCF for RSA true-ups, retain the current DSM allocation methodology, and accept NSPI's Enabling Strategies proposal. These recommendations address rate design, deferred costs, and DSM implementation.

The Board further noted: As noted earlier, in 2014 approximately $53 million was in rates in the DSM rider. By Order of the Board, at the request of the various customer classes, those funds which were not needed for DSM in 2015 because of...

AI summary The Board noted that $53 million from the DSM rider in 2014 was used for excess fuel costs in 2015 but remains in rates as a DSM charge. NSPI proposes to recover 2017-2018 DSM costs if not covered by current rates, while the Consumer Advocate argues the funds are sufficient and opposes additional rate revenue requests.

M07151 - Nova Scotia Power Inc. - DSM Cost Allocation and Recovery (E-R-15) \ 1 The Board's letter of December 3, 2015 directed NSPI to provide details regarding specific cost recovery and accounting treatment of the following DSM componen...

AI summary The Nova Scotia Utility Board directed NSP to detail DSM cost recovery and accounting for 2015-2018 programs, RSA, DCRR, and balance adjustments. The EPIA extended DSM to 2019, limited expenditures to $34.05M, and imposed rate stability. NSP announced no General Rate Application for three years, focusing on fuel cost adjustments.

lass Benefit Costs and are directly assigned to participating classes. The Elenchus approach would also eliminate the cost of tracking Enabling Strategies invoices on the basis of rate class benefit. In its submission, E1 stated that based...

AI summary The document discusses allocation methods for Enabling Strategies investments, recovery mechanisms for inter-class RSA loans via GRA/BCF, and true-up approaches for DSM costs. E1 advocates rate-class-based allocation, while the Industrial Group supports BCF recovery. SBA and NSPI propose true-up mechanisms tied to actual costs or contract periods. NSPI adjusted inter-class RSA loans in M07348.

expenditures, it chose not to do so regarding the 2017, 2018, and 2019 DSM expenditures and requested approval to defer determination until "the earlier of the Company filing a GRA or June 30, 2016". The EPIA requires NSPI to file an appli...

AI summary NSPI opted not to file a GRA for 2017–2019, leading the Board to absorb DSM costs into existing rates. The EPIA mandates a GRA filing by 2016 but restricts rate changes until 2020. The Board approved RSA recovery via the FSP/BCF proceeding (M07348), noting NSPI’s proposal to adjust rates among classes without increasing revenue.