Topic:"Fuel Cost Adjustment" in M12249

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 for 'With DSM' and 'No DSM' scenarios, adjusting FAM and non-FAM costs with inflation and DSM impacts. Historic cost true-ups are excluded due to minimal rate effects, lack of COSS rigor, and complexity. E1 provides avoided fuel cost data for post-2022 adjustments.

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 COSS Results compare 'With DSM' and 'No DSM' scenarios, showing long-term unit cost trends by rate class. Historic periods show higher DSM cost impacts, while out-years show reduced differentials. Fuel-cost-heavy classes (e.g., Large Industrial) benefit more from DSM savings, whereas fixed-cost-heavy classes (e.g., Domestic) see less benefit. Differences arise from DSM spend, usage changes, and cost allocation methods.

3.3 Unit Revenue Determination For the directional purposes of the RBIA model, it is not considered necessary to develop annual rates with all charges under the "With DSM" and "No DSM" cases. Rather, it is sufficient for NS Power to provid...

AI summary NS Power determines class unit blended revenues for residential and small general rate classes without customer charges, adjusted for line losses. Factors like fuel cost true-ups and rate smoothing are excluded, as they have no material effect on relative unit revenue changes between 'With DSM' and 'No DSM' cases.

"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. It details methods for determining avoided fuel, generation, transmission, and distribution costs, distinguishing between FAM-related and non-FAM-related calculations.

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

AI summary The text describes a simplified cost allocation process for FAM costs based on the COSS, allocating different FAM costs using factors like energy requirements and load factors, carrying forward 2022 unit costs, and adjusting non-FAM costs for inflation.

"No DSM" tab The "No DSM" tab provides annual cost allocation to rate classes absent DSM. The FAM-related costs in years 2011–2035 are calculated using the following process: - Annual FAM costs for each class are calculated by multiplying...

AI summary The 'No DSM' tab calculates annual Fuel Adjustment Mechanism (FAM) costs for rate classes without Demand-Side Management (DSM) savings. It uses blended unit FAM costs from the 'With DSM' case, scales costs to match total annual estimates, and applies a formula incorporating energy requirement deltas and avoided FAM costs, as detailed in tables 'Before External Effect' and 'After External Effect'.

Discussion: The goal of time-differentiated avoided costs is to better understand and value the marginal impact to the system of removing energy during different time periods (i.e. what is the value of removing a kWh of energy during winte...

AI summary The discussion focuses on time-differentiated avoided costs for DSM resources, emphasizing their value during varying periods (e.g., winter on-peak vs. summer). E1 criticizes NS Power's categorization of non-winter periods without time differentiation, arguing it oversimplifies system costs and misrepresents price signals. E1 recommends at least four avoided cost categories for accurate system planning and DSM effectiveness.

eport. Synapse Energy Economics for the Massachusetts Department of Energy Resources. IEA. 2014. Capturing the Multiple Benefits of Energy Efficiency . Expert advisor on Chapter 6. Energy Delivery. Brockway, N., J. Kallay, E. Malone. 2014....

AI summary The document lists publications by Synapse Energy Economics on energy efficiency programs, cost-effectiveness analyses, and policy studies for multiple jurisdictions. Reports cover topics like rate impacts, low-income assistance, avoided gas costs, and coal facility risks, authored by experts for organizations such as Massachusetts, Ontario, Vermont, and Utah energy agencies.

4.0 POSITION OF THE INTERVENORS

AI summary The section outlines the positions of intervenors in the regulatory proceeding. Key arguments focus on Demand-Side Management (DSM), Total Resource Cost (TRC), and Program Administrator Cost (PAC), with emphasis on rate design and cost methodologies. NS Power's role and program cost structures are central to the discussion.