Topic:"Fuel Cost Adjustment" in M10830

3.1 Revenue Requirement The annual revenue requirements under the "With DSM" scenario are kept consistent with the test year information from the preceding rate cases. The non-FAM costs in the years following the 2014 test year from the 20...

AI summary The document outlines revenue requirements under 'With DSM' and 'No DSM' scenarios, adjusting costs for inflation and DSM impact. FAM-related costs are based on test year data, with post-2022 adjustments for load changes and inflation. Non-FAM costs remain constant until 2022. The 'No DSM' scenario adds incremental load effects to the 'With DSM' case. Historic FAM cost true-ups are excluded due to minimal impact, lack of rigor, and complexity.

3.2.4 Generic COSS Results The actual results from the above cost allocation process under the "With DSM" and "No DSM" scenarios are presented in the "COSS Outputs" tab within NS Power's rate model, where the long-term trends in annual rel...

AI summary The Generic COSS Results analyze cost allocation trends under 'With DSM' and 'No DSM' scenarios, showing higher unit cost increases in historic periods due to DSM program recovery and declining differentials in later years as DSM measures expire. Large industrial classes benefit more from DSM due to fuel cost reductions, while domestic classes face greater fixed infrastructure cost impacts.

"Total-Savings" tab The "Total-Savings" tab provides a sum of annual class savings in energy and demand usage at the generator's gate and customer's meter. In addition, class demand savings at the high side of the bulk power substation are...

AI summary The 'Total-Savings' tab calculates annual energy and demand savings at the generator's gate, customer's meter, and bulk power substation. These savings determine avoided fuel, generation, transmission, and distribution costs. FAM-related costs use unit avoided fuel costs multiplied by energy savings, while non-FAM costs use avoided infrastructure costs multiplied by demand savings.

Comments The applied process is a simplification of a more elaborate cost allocation process where some FAM costs, such as fuel costs, are allocated to rate classes based on their shares in monthly energy requirements; some other FAM costs...

AI summary The text details a cost allocation process for FAM (Fixed Allocation Method) and non-FAM costs, distinguishing allocation methods based on energy requirements, load factors, and DSM impacts. It references the COSS (Cost of Service Study) for load factor calculations and describes adjustments for inflation from 2023–2035. Annual unit costs are derived by dividing total costs by energy requirements.

December 15, 2022 Crystal Henwood Regulatory Affairs Officer/Clerk of the Board Nova Scotia Utility and Review Board 3rd Floor 1601 Lower Water Street Halifax, Nova Scotia B3J 3S3 RE: M10830 – EfficiencyOne - 2022 Rate and Bill Impact Anal...

AI summary Synapse Energy Economics comments on EfficiencyOne's 2022 Rate and Bill Impact Analysis (R&BIA), noting lower rate increases due to avoided carbon costs and higher bill savings. They highlight discrepancies between rate class impacts and advocate for maximizing participation in high-impact classes. The R&BIA will be filed less frequently, focusing on forward-looking analyses.

Conclusion The Board accepts the 2022 RBIA report as filed and acknowledges improvements in the model that were achieved through collaborative work by stakeholders who participated in the DSMAG. The avoided cost of carbon is a new stream o...

AI summary The Board accepts the 2022 RBIA report, noting improvements from stakeholder collaboration, including EOne's integration of avoided carbon costs leading to lower rate increases. Synapse requested a no-DSM scenario and clean energy integration, which EOne supported. The Board directed NS Power to enhance IRP scenarios and model transparency, with EOne committing to continuous improvements and a change log for models.