Topic:"Fuel Cost Adjustment" in M12551

Application for Annually Adjusted Rates for 2026 Redacted 1 2.0 MARGINAL COST ANALYSIS 2 3 The average annual marginal cost forecast for 2026 used in determination of the GRLF, SP, Spill, 4 EBS, and RTT is $67.36/MWh. This represents appro...

AI summary The document discusses the 2026 annually adjusted rates application, highlighting a 24% decrease in the average annual marginal cost forecast from 2025 to 2026, attributed to factors like the sulphur dioxide Certificate of Variance and lower solid fuel pricing.

- 5 In addition, in the 2019 AARs proceeding NS Power committed to providing a comparison of values - 6 associated with each assumption from the current and previous year's application and PLEXOS - output reports. 16 The PLEXOS model used...

AI summary The document discusses NS Power's use of the PLEXOS model in the 2026 AARs proceeding, including modeling assumptions and sensitivity analyses on fuel prices. It references the 2019 AARs proceeding and a 2025 Q3 Fuel and Purchased Power model.

Application for Annually Adjusted Rates for 2026 Redacted 1 (2) Forward commodity market returns volatility of negative 1.5 standard deviations (-1.5 σ) 2 for the following fuel prices: AECO, AGT, HFO, AP12, Mass Hub Off-Peak, and Mass 3 H...

AI summary NS Power is applying for annually adjusted rates for 2026 and requests the removal of the 'no surplus energy flow' scenario from future applications, citing steady-state operations on the Labrador Island Link and Maritime Link. It also argues that the 'no new wind' scenario is not plausible given current project timelines and forecast information.

1 Figure 2: GRLF Tariff Energy Charge in Cents per kWh 2025 2026 Variance Incremental Cost of Generation Fuel Cost 8.919 6.736 (2.183) Additional O&M costs 0.500 0.500 0.000 Energy Charge (cents per kWh) 9.419 7.236 (2.183) Application for...

AI summary The text presents a table showing the incremental cost of generation and energy charge per kWh for 2025 and 2026, highlighting a significant decrease in fuel costs and energy charges. It also mentions an application for Annually Adjusted Rates for 2026.

1 4.0 ONE PART REAL-TIME PRICING TARIFFS 2 3 Consistent with its October 15, 2025 memorandum to AAR Stakeholders (Appendix J) on NS 4 Power's Proposal for Methodological Changes to 1P-RTP Tariff, the Company proposes that 5 starting in 202...

AI summary The document discusses NS Power's proposal to implement two One Part Real-Time Pricing (1P-RTP) Tariffs starting in 2026, eliminating the avoided fuel cost adjustment. The proposal includes a Transmission RTP Tariff and a Distribution Voltage RTP Tariff, with fixed cost adders designed to recover non-fuel-related costs. The change is driven by the new Cost of Service Study (COSS) filed in the 2026-2027 GRA, which no longer separates environmental and non-environmental costs.

1 Figure 3: 1P-RTP Tariff Charges by Voltage and Cost Components in Cents per kWh 2025 2026 Variance On-Peak Off-Peak On-Peak Off-Peak On-Peak Off-Peak EHV Fixed Cost Adder 5.721 0.539 n/a n/a n/a n/a Fuel Cost Adjustment 2.704 0.253 n/a n...

AI summary Figure 3 presents the 1P-RTP Tariff Charges by voltage and cost components in cents per kWh for 2025 and 2026, including fixed cost adders and fuel cost adjustments for EHV, HV, Transmission, and Distribution. Variance between years is also shown.

Application for Annually Adjusted Rates for 2026 Redacted 1 transitioned load remains interruptible. Starting with 2026, this load will continue to be served as 2 interruptible under the Transmission RTP Tariff instead of High Voltage (HV)...

AI summary Nova Scotia Power (NSP) is proposing changes to the calculation of 1P-RTP Adders for the 2026 Annually Adjusted Rates (AAR) application. This includes eliminating the avoided fuel cost adjustment and applying hourly marginal energy costs for energy charges, citing issues with forecasting under current methods due to air emissions limits and non-dispatchable generation.

Application for Annually Adjusted Rates for 2026 Redacted 1 5.0 SHORE POWER TARIFF 2 3 Service under the Shore Power (SP) Tariff is a seasonal priority interruptible service, which 4 starting in 2026 is proposed to be differentiated by two...

AI summary The document outlines the proposed changes to the Shore Power (SP) Tariff for 2026, including voltage level differentiation and a decrease in rates due to changes in marginal fuel cost and non-fuel cost components, as detailed in the 2026-2027 General Rate Application (GRA) under matter M12451.

10 Figure 5: BUTU Energy Charge Components in Cents per kWh 2026 Energy Charge Components Marginal Cost Methodology Embedded Cost Methodology Proposed Rates Energy-related Purchased Power and Fuel Cost 6.736 6.984 6.984 Energy-related Fixe...

AI summary Figure 5 outlines the BUTU Energy Charge Components in cents per kWh for 2026, showing energy-related purchased power and fuel costs, as well as energy-related fixed generation costs under different methodologies and proposed rates.

12 6.1.3 BUTU Demand Charge 8 not be provided in future applications. 14 The proposed Demand Charge of $11.704 per kilowatt (kW) of billing demand reflects a sum of 15 two components: 16 • the 2026[35](#page-25-2) 17 FAM-based component of...

AI summary The proposed BUTU Demand Charge of $11.704 per kW is composed of two components: a FAM-based component of $6.252 per kW from the 2026 Base Cost of Fuel calculations and a non-FAM-based component of $5.452 per kW from Appendix F3.

21 Figure 8: Spill Tariff Charges 2025 2026 Variance Administration Charge ($/supplier/month) 2,409.46 2,487.77 78.31 Energy Credit (cents per kWh) 8.919 6.736 (2.183) 22

AI summary Figure 8 presents spill tariff charges for 2025 and 2026, showing an increase in the administration charge and a decrease in the energy credit per kWh.

1 Figure 9: Energy Balancing Service Tariff Charges 2025 2026 Variance Administration Charge ($/customer/month) 401.58 414.63 13.05 Energy Charge (cents per kWh) Fuel Cost (cents per kWh) 8.919 6.736 (2.183) Fixed Cost Adder (cents per kWh...

AI summary Figure 9 presents Energy Balancing Service Tariff Charges for 2025 and 2026, showing changes in administration charges, energy charges, fuel costs, fixed cost adders, and energy credits. The administration charge increases, while energy charges decrease significantly.

3 8.1.1 CBL Cost and CBL Energy Charge 4 - 5 As defined in Section 8.1, the CBL Energy Charge represents the average annual incremental non- - 6 capital cost (in $/MWh), net of FCR, to serve PHP's forecast load. For the 2026 Tariff year, t...

AI summary The CBL Cost and CBL Energy Charge for the 2026 Tariff year are defined and calculated, with the CBL Cost being $73.60/MWh and the CBL Energy Charge being $69.85/MWh. The FCR of $3.75/MWh is transferred to the CBLA under the ELIADC Tariff provisions. Modeling assumptions are detailed in Confidential Appendix G2.

17 8.1.2 CBL Adder - 19 The CBL Adder is calculated in accordance with the methodology prescribed in the ELIADC - Tariff and is designed to recover the minimum $5/MWh FCR. [48](#page-39-3) 20 The CBLA varies based on the - 21 forecast CBL...

AI summary The CBL Adder is calculated using the methodology from the ELIADC Tariff to recover a minimum $5/MWh FCR. The CBLA varies based on forecast CBL Cost and price thresholds.

14 Figure 13: CBL Adder 2026 ($/MWh) CBL Cost 73.60 Minus FCR 3.75 CBL Energy Charge 69.85 Constant (CBLA) 1.25 Plus FCR transferred from CBL Cost 3.75 Total CBLA 5.00 8.1.3 Variable Capital Charge 2 The ELIADC Energy Charge includes a Var...

AI summary This section discusses the CBL Adder and Variable Capital Charge (VCC) in the context of NS Power's 2021 AAR application. The CBL Adder is calculated by subtracting FCR from CBL Cost and adding back FCR transferred from CBL Cost, resulting in a total CBLA. The VCC is part of the ELIADC Energy Charge and is used to account for the incremental generation and delivery costs of electricity for PHP.

A list of updates for the 2025 Q3 fuel and purchased power model include: Update Update Description number 1. Generation maintenance scheduled (GMS). 2. Fuel and power prices. 3. Coal blends, restrictions, emissions parameters, and volumes...

AI summary The document outlines updates for the 2025 Q3 fuel and purchased power model, including generation maintenance, fuel prices, coal blends, emission limits, and energy schedules. It also notes the removal of a confidential appendix related to 2026 annually adjusted rates.

REDACTED 2026 AAR Application Appendix B2 Page 1 of 19 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 1P-RTP ADDER CALCULATION Transmission-connected O&M Capital ROE Generation Costs $0.01496 $0.02561 $0.01125 $0.05182 $0.01538 $0.02086 $0.00...

AI summary This document presents a table with various cost calculations, including transmission-connected costs, fixed costs, and customer costs. It includes percentages and monetary values related to operations, capital, return on equity, and fuel cost adjustments.

REDACTED 2026 AAR Application Appendix B2 Page 6 of 19 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Approved Year 2025 Proposed Year 2026 HV FUEL COST ADJUSTMENT 3PH FU

AI summary The document contains a redacted table comparing approved and proposed year values for HV Fuel Cost Adjustment and 3PH FU, likely related to regulatory proceedings involving cost recovery mechanisms and fuel adjustments for energy utilities.

NON-CONFIDENTIAL 1 NS Power utilizes the Partially Confidential electronic Excel file, Appendix B2, to calculate the 2 1P-RTP rates by using the following method. 3 4 • The costing determinants such as Monthly Energy requirement, Monthly s...

AI summary NS Power uses a Partially Confidential Excel file to calculate 1P-RTP rates by inputting costing determinants, fixed costs from the 2026 Cost of Service Study, and breaking down fixed costs by expense type and customer service level. The company no longer includes fuel cost adjustments in the Adders, as per its October 2025 memorandum.

27 Fuel Cost Adjustment 28 32 29 There is no longer avoided fuel cost adjustment from the difference between these values result to 30 partially offset the fixed cost. Refer to Section 4.1 of 2026 AAR Application for the rationale 31 behin...

AI summary The text discusses the removal of the Avoided Fuel Cost Adjustment, noting that it no longer results in a difference that partially offsets fixed costs, and refers to Section 4.1 of the 2026 AAR Application for the rationale behind this change.

NON-CONFIDENTIAL 1 Adding the Generation, Transmission, distribution, customer costs and fuel cost adjustment rates 2 by Service level in the tables above produces the 2026 1P-RTP components as shown below that 3 reconcile to those in Figu...

AI summary The text discusses the addition of generation, transmission, distribution, customer costs, and fuel cost adjustment rates by service level to produce the 2026 1P-RTP components, which align with those in Figure 3 from NS Power's evidence.

2026 AAR Application Appendix B3 Page 6 of 11 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 On peak rates in Cents/ kWh Fig 3 rates in Cents/ kWh Variance Fixed Cost Adder Fuel ADJ Grand Total Generation Transmission Distribution Custom...

AI summary The document provides a detailed breakdown of 2026 on-peak and off-peak electricity rates in cents per kWh for Transmission and Distribution, including fixed cost adders, fuel adjustment mechanisms, and grand totals. It highlights the structure of the rate application and associated cost components.

ENERGY CHARGE Energy charges will vary by voltage level of the point of delivery and will be made up of two components. - (1) Annually adjusted fuel cost component which shall be the Company's forecast average annual marginal energy cost a...

AI summary Energy charges are determined based on voltage levels and consist of an annually adjusted fuel cost component, which is the Company's forecast average annual marginal energy cost, approved for use with the GR&LF tariff and adjusted for line losses at the point of delivery voltage level.

2026 AAR Application Appendix C2 Page 1 of 1 REDACTED (CONFIDENTIAL INFORMATION REMOVED) SHORE POWER CALCULATION 2026 MWh Requirement Unit Revenue Unit Production Total non-demand Cost at Total at Generator's related fixed cost Generator's...

AI summary This table outlines the shore power calculation for 2026, including MWh requirements, unit fuel costs, and revenue by voltage class. It details line losses, generation, transmission, and distribution costs, as well as unit fixed costs and rates. A footnote directs readers to the 'Usage Statistics' tab in Appendix D for further information on energy requirements.

DEMAND CHARGE The demand charge for this service is made up of the following two components: - (1) Annually adjusted demand-related purchased power cost, coming into effect as a result of a Base Cost of Fuel, Fuel Adjustment Mechanism, or...

AI summary The demand charge for the service comprises two components, with the first being an annually adjusted demand-related purchased power cost, influenced by factors such as Base Cost of Fuel, Fuel Adjustment Mechanism, or General Rate Application.

ENERGY CHARGE The energy charge is made up of the following two components: - (1) Annually adjusted energy-related purchased power and fuel cost, coming into effect as a result of a Base Cost of Fuel, Fuel Adjustment Mechanism or General R...

AI summary The energy charge consists of two components, one of which is annually adjusted energy-related purchased power and fuel cost, influenced by mechanisms such as the Base Cost of Fuel, Fuel Adjustment Mechanism, or General Rate Application.

- (2) Energy-related fixed generation cost, coming into effect as a result of a General Rate Application. Energy Charge Components cents per kWh Energy-related Purchased Power and Fuel Cost 6.984 Energy-related Fixed Generation Cost 2.166...

AI summary This section introduces an energy-related fixed generation cost that is being implemented due to a General Rate Application. The cost is 2.166 cents per kWh, contributing to a total energy charge of 9.150 cents per kWh. The Fuel Adjustment Mechanism (FAM) is also referenced.

Proposed Annual Inflation Rate 3.25% 2025 2026 Variance COLUMN Q R S Т U V W X Y Z AA АВ AC AD AE Fuel-re elated Cos ts from COS wer other than B Wind iomass and Purchased Power - Wind ERIS NRIS Total Fuel-related costs Fixed Demand- - bef...

AI summary The document presents a table with financial data related to fuel costs and other expenses for different rate classes in 2025 and 2026. It includes figures for residential and small general rate classes, highlighting variations in costs and revenues.

Monthly Fuel Cost Allocation Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 Total Purchased Power Imports $4,757,627 $4,589,694 $3,462,924 $11,463,432 $11,169,883 $11,583,281 $8,099,729 $7,009,590 $10,8...

AI summary The text presents a detailed breakdown of monthly fuel cost allocation, including imported power, biomass, and other energy sources for the period Jan-26 to Dec-26. It highlights the financial distribution across different energy sources and includes specific figures for Maritime Link and its blocks.

Annual Peak of ATL 2,356,954 Annual Energy Requirement of ATL 11,303,785,142 System Coincident Load Factor 54.748044% Steam Plant $ 847,049 $ 847,049 $ - $ - $ (463,743) $ 463,743 $ - $ 383,306 $ 463,743 $ - Hydro Plant $ 699,665 $ 699,665...

AI summary The document provides data on the annual peak and energy requirement of ATL, along with financial figures related to various generation plants such as Steam, Hydro, Wind, and Gas Turbine, as well as Batteries and Transmission. It includes costs, adjustments, and total generation plant values.

ENERGY CHARGE Energy charge for top-up service is made up of the following two components: - (1) Annually adjusted fuel cost component based on NS Power's incremental cost of serving the LRS' forecasted incremental top-up load.

AI summary The energy charge for top-up service includes an annually adjusted fuel cost component based on NS Power's incremental cost of serving the LRS' forecasted incremental top-up load.

APPLICABILITY - (1) The RTT is applicable to the LRS, and is in addition to (and not in substitution of) any charges owing by the LRS to NS Power under the Open Access Transmission Tariff (OATT), the Standby Service Tariff, or the Energy B...

AI summary The Renewable to Retail Market Transition Tariff (RTT) applies to Licensed Retail Suppliers (LRS) and operates alongside other tariffs such as the Open Access Transmission Tariff (OATT), Standby Service Tariff, and Energy Balancing Service Tariff. The RTT includes energy and demand charges with annual adjustments based on forecasted differences between NS Power's avoided costs and system fuel costs.

2026 Energy Balancing Service Annual Avoided Fuel Cost Calculations Source Annual MWh Load at Transmission Level Generation non-fuel related costs Avoided Unit Cost (c/kWh) Before Fixed Cost Deferral Adj. Fixed Cost Deferral Adj. if applic...

AI summary The document outlines the 2026 Energy Balancing Service, focusing on annual avoided fuel cost calculations and the top-up energy rate calculation. It includes detailed cost breakdowns and energy-related fixed cost components, referencing exhibits and data from COSS (Cost of Service Study).

Source Category Demand-related Costs Cost in thousands of $'s 2026 COSS - Exhibit 5, page 1, column 2. $357,621.5 Less FUEL $0 PURCHASES - OTHER THAN BIOMASS AND WIND $8,334 PURCHASES - BIOMASS $5,365 MARITIME LINK $90,413 PURCHASES - WIND...

AI summary The document presents demand-related costs, including fuel purchases, capacity credits, and ancillary service costs, as well as standby demand charge calculations for various service types. It includes data from multiple exhibits and references specific regulatory filings.

Customer Baseline Energy Charge, Customer Baseline Energy Cost, and Contribution to Utility Costs In advance of each tariff year, PHP shall advise NS Power of its forecast annual and monthly energy requirements for the subsequent calendar...

AI summary PHP is required to provide NS Power with its forecasted energy requirements, and NS Power calculates a Customer Baseline Load (CBL) Cost, which includes incremental non-capital costs. The CBL Adder (CBLA) is calculated based on the CBL Cost and is used to determine the ELIADC Energy Charge. The CBLA increases as the CBL Cost decreases, with specific formulas outlined for different CBL Cost ranges.

FUEL ADJUSTMENT MECHANISM (FAM) No FAM charges or credits shall be applicable to PHP, and PHP will have no standing to participate in FAM-related processes or proceedings unless it is proposed that a FAM-related charge be assessed against...

AI summary The Fuel Adjustment Mechanism (FAM) does not apply to PHP, and PHP cannot participate in FAM-related processes unless a charge is proposed against it or the process directly impacts NS Power's incremental electricity costs.

Minimum Payment The ELIADC Tariff requires that a minimum payment shall be made by PHP in respect of each tariff year, which shall not be less than the sum of: - (a) NS Power's actual total incremental cost of serving PHP during the year (...

AI summary The ELIADC Tariff mandates a minimum payment from PHP, calculated as the sum of NS Power's actual incremental serving costs and a fixed cost recovery component based on MWh supplied. Adjustments are applied after year-end to ensure the minimum payment is met.

FUEL ADJUSTMENT MECHANISM (FAM) No FAM charges or credits shall be applicable to PHP, and PHP will have no standing to participate in FAM-related processes or proceedings unless it is proposed that a FAM-related charge be assessed against...

AI summary The Fuel Adjustment Mechanism (FAM) does not apply to Port Hawkesbury Paper LP (PHP), and PHP cannot participate in FAM-related processes unless a FAM charge is proposed against it or the process directly impacts Nova Scotia Power's incremental electricity costs.

ENERGY CHARGE Energy charge for top-up service is made up of the following two components: - (1) Annually adjusted fuel cost component based on NS Power's incremental cost of serving the LRS' forecasted incremental top-up load.

AI summary The energy charge for top-up service consists of an annually adjusted fuel cost component based on NS Power's incremental cost of serving the LRS' forecasted incremental top-up load.

- (2) Fixed cost adder reflective of fixed cost energy-related generation costs. Energy Charge Components cents per kWh Fuel Cost 8.919 6.736 Fixed Cost Adder 3.264 2.166 Total 12.183 8.902 The charge is applicable to top-up energy consume...

AI summary The text outlines a fixed cost adder for energy-related generation costs, showing changes in fuel cost and fixed cost adder components, with the total energy charge per kWh decreasing from 12.183 to 8.902 cents.

ENERGY CREDIT The Energy Credit is equal to the average incremental cost of generation as defined under Optional Generation Load Following.

AI summary The Energy Credit is defined as the average incremental cost of generation under the Optional Generation Load Following framework, which is a key consideration in the regulatory process for energy pricing and cost allocation.

APPLICABILITY - (1) The RTT is applicable to the LRS, and is in addition to (and not in substitution of) any charges owing by the LRS to NS Power under the Open Access Transmission Tariff (OATT), the Standby Service Tariff, or the Energy B...

AI summary The RTT applies to the LRS and is in addition to charges under other tariffs. It includes energy and demand charges with provisions for savings credits and annual adjustments based on forecasted costs. The LRS must also take service under the OATT and other tariffs.

DEMAND CHARGE The demand charge for this service is made up of the following two components: - (1) Annually adjusted demand-related purchased power cost, coming into effect as a result of a Base Cost of Fuel, Fuel Adjustment Mechanism, or...

AI summary The demand charge for the service consists of two components, with the first being an annually adjusted demand-related purchased power cost influenced by factors such as the Base Cost of Fuel, Fuel Adjustment Mechanism, or General Rate Application.

ENERGY CHARGE The energy charge is made up of the following two components: - (1) Annually adjusted energy-related purchased power and fuel cost, coming into effect as a result of a Base Cost of Fuel, Fuel Adjustment Mechanism or General R...

AI summary The energy charge consists of two components, with the first being annually adjusted energy-related purchased power and fuel costs, influenced by factors such as the Base Cost of Fuel, Fuel Adjustment Mechanism, or General Rate Application.

The FAM Actual Adjustment (AA) and Balance Adjustment (BA) charges or credits (in cents per kilowatt-hour) applicable to the Tariff for the current rate year, shown in the FAM Tariff, shall apply, in addition to the energy charge.

AI summary The document specifies that the FAM Actual Adjustment (AA) and Balance Adjustment (BA) charges or credits, shown in the FAM Tariff, apply in addition to the energy charge for the current rate year.

NS Power's Proposal - 1. The adjustment for the projected imbalance in the recovery of the avoided fuel costs should be eliminated. The energy charges under these tariffs should be made of hourly marginal costs. The fixed cost adders shoul...

AI summary NS Power proposes eliminating the adjustment for the projected imbalance in the recovery of avoided fuel costs in the 1P-RTP tariff and instead using hourly marginal costs for energy charges. It also suggests that future adjustments to the 1P-RTP tariffs should be made as part of General Rate Applications, similar to the OATT. These changes aim to address forecasting challenges related to emissions and non-dispatchable generation sources.

2026 AAR Application Appendix J Page 2 of 3 REDACTED (CONFIDENTIAL INFORMATION REMOVED) - 1. The growing complexity of the air emission market makes the continued application of the current avoided fuel cost methodology increasingly diffic...

AI summary The text discusses the challenges with the current avoided fuel cost methodology in the context of the 1P-RTP service, arguing that it leads to volatility and unreliability. It notes the shift from this methodology to a marginal fuel cost approach as directed by the Board in its 2017 decision. This change aligns the 1P-RTP tariffs with the costing approach used for other AARs, using an annual average of forecasted hourly marginal costs.

NON-CONFIDENTIAL 1 Request IR-3: 2 3 In its letter of January 31, 2025, NS Power stated that it would "prepare a proposal outlining 4 the change in methodology for the calculation of the FCA component of 1P-RTP Tariffs for 5 distribution t...

AI summary NS Power did not hold the Q2 2025 stakeholder session to discuss a proposed change in methodology for the FCA component of 1P-RTP Tariffs, citing a Board directive to defer the issue to the 2026 AAR application, resource reallocation for cybersecurity efforts, and the absence of comments on the proposed methodology change.

M11989 – Board Decision, 319292, page 6. March 25, 2025. 3 The third Time-Varying Pricing (TVP) Technical Session was postponed in May 2025. 4 At page 19, lines 23-26 provided "NS Power sought feedback on its plan to propose an alternate m...

AI summary The third Time-Varying Pricing (TVP) Technical Session was postponed in May 2025. NS Power proposed an alternate methodology based on marginal system fuel costs in the 2026 AAR application, and feedback was received on the time-variable aspect of the proposal.

NON-CONFIDENTIAL - 1 In light of the factors above, the Company assessed the options to engage stakeholders on the 2 review of the issue in accordance with the Board's direction. NS Power issued a second 3 memorandum on October 15, 2025 to...

AI summary The Company issued a second memorandum on October 15, 2025, seeking stakeholder feedback on changes to the avoided fuel cost adjustment, energy charges, and fixed cost adders. No stakeholder comments were received on this memorandum.

NON-CONFIDENTIAL 1 Request IR-3: 2 3 Reference: Page 20, lines 16-19. 4 5 6 7 8 9 10 In view of the foregoing, NS Power has, in this Application, eliminated the adjustment for the projected imbalance in the recovery of the avoided fuel. En...

AI summary NSPI has eliminated the adjustment for projected imbalance in the recovery of avoided fuel costs in its rate application. Energy charges are based on hourly marginal costs, and fixed cost adders include only non-fuel costs. The response indicates that no other rates or methodologies are impacted by the volatility in avoided fuel cost calculations.

NON-CONFIDENTIAL 1 fuel costs through application of the forecasted average annual marginal fuel cost-based 2 rate component. 3 4 (b) Yes, NS Power anticipates that either SO2, or other annual air emissions limits, will 5 continue to impai...

AI summary NS Power discusses challenges in calculating avoided costs due to SO2 emissions limits and the impact of renewable energy standards on load decrement analysis. These factors contribute to anomalies in system modeling and compliance costs for customer classes. Adjustments to air emissions allowances and wind generation were considered but found to be arbitrary.

Minimum Payment The ELIADC Tariff requires that a minimum payment shall be made by PHP in respect of each tariff year, which shall not be less than the sum of: - (a) NS Power's actual total incremental cost of serving PHP during the year (...

AI summary The ELIADC Tariff requires PHP to make a minimum payment each year, calculated as the sum of NS Power's incremental serving costs and a fixed cost recovery amount of $5.00 per MWh supplied. Adjustments to meet this minimum are determined and charged after year-end.

Customer Baseline Energy Charge, Customer Baseline Energy Cost, and Contribution to Utility Costs In advance of each tariff year, PHP shall advise NS Power of its forecast annual and monthly energy requirements for the subsequent calendar...

AI summary The document outlines the process for calculating the Customer Baseline Energy Charge (CBL Cost) and its relationship with the CBL Adder (CBLA) and Fixed Cost Recovery (FCR). NS Power uses PHP's forecast energy requirements to determine the CBL Cost, which includes fuel, purchased power, line losses, and variable operating costs. The CBLA is calculated based on the forecast CBL Cost and interacts with the FCR.

EXTRA LARGE INDUSTRIAL ACTIVE DEMAND CONTROL TARIFF Page 3 of 8 $61.75/MWh. The FCR transferred from the CBL Cost is then added to the calculated CBLA to equal $5/MWh FCR. x When the forecast CBL Cost is at or over $61.75/MWh, the FCR to b...

AI summary The ELIADC Energy Charge is calculated by summing the CBL Energy Charge, CBLA, and VCC. When the forecast CBL Cost exceeds $61.75/MWh, the FCR transferred is capped at $3.75/MWh, with the difference assigned a value of zero. These charges are submitted for Board approval annually as part of the Annual Adjusted Rates proceeding.

ELIADC ENERGY CHARGE Information on the CBL Energy Charge and VCC for 2026 will be provided to the Board by November 7, 2025. The ELIADC Energy Charge is $75.87 per Megawatt-hour.

AI summary The ELIADC Energy Charge is set at $75.87 per Megawatt-hour for 2026, with information on the CBL Energy Charge and VCC to be submitted to the Board by November 7, 2025.

FUEL ADJUSTMENT MECHANISM (FAM) No FAM charges or credits shall be applicable to PHP, and PHP will have no standing to participate in FAM-related processes or proceedings unless it is proposed that a FAM-related charge be assessed against...

AI summary The Fuel Adjustment Mechanism (FAM) does not apply to Port Hawkesbury Paper LP (PHP), and PHP cannot participate in FAM-related processes unless a charge is proposed against it or the process directly affects Nova Scotia Power's incremental electricity costs.

FUEL ADJUSTMENT MECHANISM (FAM) No FAM charges or credits shall be applicable to PHP, and PHP will have no standing to participate in FAM-related processes or proceedings unless it is proposed that a FAM-related charge be assessed against...

AI summary The Fuel Adjustment Mechanism (FAM) does not apply to PHP, and PHP cannot participate in FAM-related processes unless it directly impacts NS Power's incremental electricity costs.

Annually Adjusted Rates for 2026 (NSEB M12551) NSPI Responses to NSEB Information Requests Request IR-1: Appendix A2 presents the annual marginal generation costs by month. (a) Please explain why for February and March. (b) Please provide...

AI summary The document discusses NSPI's response to NSEB's information request regarding annual marginal generation costs, explaining variations in February and March, and the exclusion of Output Based Pricing System costs. It also addresses the forecast of marginal costs for Peak in June and July, citing the integration of renewable energy and GHG emission regulations.

NON-CONFIDENTIAL 1 Request IR-5: 2 3 Page 11 cites forecasted solid fuel prices decreasing for 2026. Please discuss the factors 4 leading to this decrease, including those associated with output prices for SO2. 5 6 Response IR-5: 7 8 The f...

AI summary The response to Request IR-5 explains that solid fuel prices are expected to decrease in 2026 due to annual SO2 emission limits allowing the use of cheaper mid-sulphur and petcoke fuels, as well as lower forward prices for low sulphur coal.

10 2025 2026 Variance Var (%) MWh Energy Requirement at Generator 10,100,338 11,303,785 1,203,448 11.9 Transmission Line Losses (%) 3.0 2.4 -6.0 -20.0 MWh Load at Transmission Level 9,806,153 11,038,853 1,232,700 12.6 Total Fuel Cost of FA...

AI summary The table presents energy and cost data for 2025 and 2026, showing an increase in MWh energy requirements, a decrease in transmission line losses, and rising fuel costs. These figures highlight changes in energy demand, efficiency, and expenses over the two-year period.

12 The 1.9 percent increase in the Average Unit Fuel cost at transmission level is due to an uneven 13 increase of 12.6 percent in the MWh energy requirement at the low side of the bulk power 14 transformer of the above-the-line (ATL) rate...

AI summary The text discusses a 1.9% increase in the Average Unit Fuel cost at the transmission level, attributed to a 12.6% increase in MWh energy requirement and a 14.7% increase in fuel costs for the above-the-line rate classes. It highlights a misalignment between transmission costs and fuel cost recoveries, noting that the former are non-fuel related while the latter are based on approved base cost of fuel rates.

5 (d) Confirmed, OBPS is included in the PLEXOS costs used for calculating hourly marginal 6 costs. All variable operating costs for the marginal unit are included in the output marginal 7 cost.

AI summary The OBPS is incorporated into the PLEXOS costs for calculating hourly marginal costs, including all variable operating costs for the marginal unit in the output marginal cost calculation.

Annually Adjusted Rates for 2026 (M12551) NSPI Responses to REI Information Requests 1 Request IR-2: 2 3 Preamble: Based on the principles of economic dispatch, and recognizing the influence of 4 environmental legislation, REI expects that...

AI summary The document outlines NSPI's response to REI's information request regarding the identification of the highest variable cost generators in Nova Scotia's electricity system, including diesel combustion turbines, natural gas generation from Tufts Cove, and imports, as well as the accuracy of marginal cost forecasting using the PLEXOS model.

1 hours were 11 percent below forecast. This variance is driven by higher-than-expected 2 natural gas prices making solid fuel generation more economic. 3 Q1 2025 Forecasted Q1 2025 Actuals Fuel Type Hours % Hours % Solid Fuel Plant 1366 6...

AI summary The actual generation hours for Q1 2025 were 11% below forecast, primarily due to higher-than-expected natural gas prices, which made solid fuel generation more economical. Solid fuel plant hours increased from 63% to 75% of total generation.

(b) Please provide the missing information required to evaluate historical forecast accuracy regarding natural gas, diesel, import purchases, and Maritime Link. Α В С D E F G H 1 (millions of dolla rs) YTD 2 dec dec dec dec dec dec oct 3 N...

AI summary The document requests missing information to evaluate historical forecast accuracy for natural gas, diesel, import purchases, and Maritime Link. A table provides actual, forecast, and budget figures for these categories across multiple years, with a response indicating that NS Power did not prepare the table but the data appears accurate.

NON-CONFIDENTIAL 1 of key system assumptions, some of which, such as quantification of monthly air emissions, 2 cannot be produced and updated in time to continuously execute monthly updates. 3 Additionally, because marginal costs are calc...

AI summary NS Power argues that monthly marginal cost updates are not practical or useful due to limitations in data availability and the design of the annually adjusted rates process. They also state that monthly marginal cost pricing would not significantly improve price signals for AAR customers.

REDACTED 1 Request IR-8: 2 3 Reference: Assumptions, page 11, Appendix A3 PCON; and Board-Directed Sensitivity 4 Analyses, pages 12-13 and Appendix A6 PCON. 5 6 (a) NS Power has stated that higher SO2 emission limits have resulted in lower...

AI summary The document contains a request (IR-8) asking NS Power to confirm SO2 emissions, emission limits, and their impact on marginal costs. It also requests information on assumptions with the highest risk of variance from forecasts and surplus energy deliveries under the Energy Access Agreement. The request is related to the Annually Adjusted Rates for 2026 (M12551).

REDACTED 1 (b) To assess the impact of SO2 Certificate of Variance (CoV), a scenario with the original 2 SO2 limits would have to be modeled, for comparison. Constructing a scenario with 3 original SO2 limits cannot be completed with accur...

AI summary The text discusses the challenges in modeling the impact of SO2 Certificate of Variance (CoV) scenarios, particularly due to uncertainties around low-sulfur coal pricing and availability. It also highlights the optimization of fuel procurement and unit dispatch to manage SO2 limits and the influence of various system assumptions on marginal costs.

6 (f) Muskrat Falls, Labrador Island Link, and Maritime Link have been operating reliably in 7 steady state for some time. NS Power believes that the probability of Maritime Link energy 8 import deviation from forecast is now similar to th...

AI summary NS Power discusses the reliability of energy imports from Muskrat Falls, Labrador Island Link, and Maritime Link, noting that deviations are now comparable to New Brunswick. They use a combination of forecasts and historical data for surplus energy predictions. Increased fleet flexibility from SO2 CoV reduces the cost impact of deviations, allowing reliance on coal-based generation instead of higher-cost imports. PHP load exclusion is noted in marginal cost forecasts.

DEMAND CLASSIFICATION (1) TOTAL (2) (3) SMALL (4) (5) GENERAL (6) SMALL (7) MEDIUM (8) LARGE (9) (9) (10) (11) ALLOCATION COMPANY DOMESTIC GENERAL GENERAL LARGE INDUSTRIAL INDUSTRIAL INDUSTRIAL PHP MUNICIPAL UNMETERED FACTOR (1) Transmissi...

AI summary The document presents a detailed breakdown of demand classification across various categories, including transmission, operating and maintenance expenses, depreciation, interest, corporate taxes, and revenue, with associated allocations and factors. It includes various line items and references to regulatory and financial processes.

FOR THE YEAR ENDING DECEMBER 31, 2026 (IN THOUSANDS OF DOLLARS) (1) TOTAL (2) (3) SMALL (4) (5) GENERAL (6) SMALL (7) MEDIUM (8) LARGE (9) (10) (11) (12) ALLOCATION COMPANY DOMESTIC GENERAL GENERAL LARGE INDUSTRIAL INDUSTRIAL INDUSTRIAL PH...

AI summary The table presents financial data related to energy generation and purchases for the year ending December 31, 2026, including various categories such as fuel, biomass, wind, and imports, with allocations and references to specific studies and forecasts.

NON-CONFIDENTIAL Energy Balancing Service Tariff Charges Variance 2025 2026 Amount Percent (%) Administration Charge ($/customer/month) $401.58 $414.63 $13.05 3.25 Energy Charge (cents per kWh) - - - - Fuel Cost (cents per kWh) 8.919 6.736...

AI summary The table outlines Energy Balancing Service Tariff Charges for 2025 and 2026, showing increases in administration charges and decreases in fuel cost and fixed cost adder, leading to a reduction in total charges and energy credits.

3.7 Billing and Collection Billing and collection arrangements between each LRS and its customers are matters for consideration in the Retailers Regulations and Code of Conduct, and are not part of this design basis document. Billing and c...

AI summary The document outlines that billing and collection arrangements between NS Power and LRS are governed by the Retailers Regulations and Code of Conduct, and should be addressed in three categories: customer-specific billings, aggregate billings, and specific mechanisms such as the Fuel Adjustment Mechanism and DSM cost recovery.

3.7.3 Fuel Adjustment Mechanism (FAM), DSM Cost Recovery, and Miscellaneous Charges The FAM tariff includes a provision that outstanding FAM balances in respect of customers migrating to non-FAM be charged to those customers. NS Power will...

AI summary The FAM tariff includes provisions for charging outstanding balances to customers migrating to non-FAM. DSM cost recovery is expected to apply to both Bundled Service and RtR customers. Interval meter installation and other miscellaneous charges will be recovered at cost, billed to the LRS as they are necessary for load aggregation.

5.1 Context The supply-related cost represents the largest component of the existing cost of Bundled Service, as it includes the asset-related cost (including financing and return on equity) of all generating plant, the fixed and variable...

AI summary The supply-related cost is the largest component of the Bundled Service cost, including asset-related costs, O,M & G costs, and fuel costs. To avoid economic disadvantage, NS Power must recover the same amount from RtR customers as would have been recovered from Bundled Service customers, adjusted for avoided costs. Recovery will occur through Energy Balancing Service, Standby Service, and RtR Market Transition Tariff revenue.

Annually Adjusted Rates for 2026 REI IR-18 Attachment 1 Page 20 of 41 REDACTED (CONFIDENTIAL INFORMATION REMOVED) To the extent that NS Power recovers fixed costs through the EBS tariff (top-up net of spill) and the Standby Service tariff,...

AI summary The document discusses the recovery of fixed costs by NS Power through the EBS and Standby Service tariffs, noting that the RtR Market Transition Tariff would recover lower fixed costs. It also mentions that fuel adjustment mechanism and DSM cost recovery are addressed separately in another section.

Annually Adjusted Rates for 2026 REI IR-18 Attachment 1 Page 32 of 41 REDACTED (CONFIDENTIAL INFORMATION REMOVED) - The foregone amounts under the energy-based charge for fixed generation costs under the Bundled Service tariffs, less that...

AI summary The text discusses the calculation of stranded amounts related to energy-based charges and fuel cost recovery, focusing on the impact of load supplied by LRS and the nature of generation resources. It also explains how differences in fuel costs between bundled service tariffs and RtR supply affect the RTT energy charge.

11 Variance Energy Charge by Components (cents per kWh) 2025 2026 Amount Percent Fixed Cost Adder from Energy Balancing Service Tariff 3.264 2.166 (1.099) (33.7) Annually Adjusted Energy Savings Credit 0.000 0.000 0.000 Annual Energy Cost...

AI summary The document presents a table showing variations in energy and demand charges between 2025 and 2026, highlighting changes in fixed cost adders, energy savings credits, and demand charges. These figures indicate significant fluctuations in costs, particularly in the Annual Energy Cost Adjustment and Demand Charge from Standby Service Tariff.

13 The increase of 444.3 percent in the Energy Charge by Components is primarily a result of a 14 change in the Annual Energy Cost Adjustment. Please, refer to Section 7.3.1.3 Annual Energy cost 15 Adjustment of this Application for discus...

AI summary The text discusses a 444.3% increase in the Energy Charge by Components, attributing it to a change in the Annual Energy Cost Adjustment. References are made to Section 7.3.1.3 and part (c) of REI IR-13 for further details on the proposed increase.

d to be served under this rate to ensure that it is truly a price-sensitive load. In this regard, the Consumer Advocate refers to the following statement from NS Power's 2018 AAR Application (M08383): As the 1P-RTP tariff does not use the...

AI summary The Consumer Advocate discusses the 1P-RTP tariff and its rate calculation method, clarifying that the proposed shift to marginal costs is reasonable as the tariff is only available for a small, price-sensitive portion of a customer's load. They request NS Power to confirm if any assumptions are incorrect and note that non-price-sensitive load should be served on a rate schedule including full fuel costs.

Material Impact on RTT Rates The marginal cost calculation, combined with the COSS methodology changes, significantly impact the 2026 RTT charge. The RTT Total Energy Charge is proposed to increase from 0.802 cents/kWh (2025) to 4.363 cent...

AI summary The 2026 RTT charge is expected to increase significantly due to changes in the COSS methodology and the impact of the SO2 CoV. This increase has led to a 444.3% rise in the Energy Charge and a 60.5% increase in the Demand Charge, creating financial risks for REI and affecting market competition.

(a) No Evidence of Forecast Accuracy or Historical Validation Through the Information Request Process, REI asked a series of questions to test the validity of the marginal cost forecasting for 2026. In response, however, NSPI did not provi...

AI summary REI questioned the accuracy of NSPI's marginal cost forecasting for 2026. NSPI could not provide historical data due to a cybersecurity breach and only offered limited comparisons, such as a single-quarter forecast discrepancy for solid fuel plants and diesel combustion turbines. These discrepancies raise concerns about the reliability of forecasting methods.

(b) Asymmetric Forecasting Risk Impacts While the Board has recognized the reasonableness of setting AAR rates based on forecasts given that both parties bear forecast risk, this risk-sharing disproportionately impacts REI. Theoretically t...

AI summary The document discusses the asymmetric impact of forecasting risks on REI and NSPI, highlighting that while both parties theoretically share forecast risk, the actual financial burden falls disproportionately on REI. A significant increase in the RTT Tariff due to forecast errors results in substantial costs for REI, unlike NSPI, whose earnings remain unaffected due to the FAM mechanism.

(c) Marginal Costs should be Reviewed and Calculated Monthly Going Forward NSPI uses annual average marginal costs for AAR tariffs, which obscures material monthly variation and results in cross-subsidization among months. REI is not propo...

AI summary NSPI uses annual average marginal costs for AAR tariffs, which obscures monthly variation and causes cross-subsidization. REI argues that monthly marginal cost forecasting would improve accuracy, align cost recovery with cost causation, and provide better price signals. NSPI dismisses monthly pricing as immaterial, but REI disagrees, emphasizing the importance of cost causation regardless of customer response.

A True-Up Mechanism Should Be Considered for the RtR Tariffs A true up mechanism is essential for the RtR tariffs, particularly the RTT. A one-year swing of over 444% in 2026 for the RTT Energy Charge delta is significant and demonstrates...

AI summary A true-up mechanism is recommended for the RtR tariffs, especially the RTT, due to extreme volatility in energy charge deltas, such as a 444% swing in 2026. NSPI argues that the fuel imbalance has low materiality, but REI contends that the analysis is incomplete and does not account for the significant cost impact on RtR customers. A true-up is seen as fair and necessary for cost causation and competition.

4. IMPROVED MINIMUM REPORTING FOR AAR APPLICATIONS The ability to review NSPI's forecasting accuracy year over year is essential to promote transparency, accountability and improve forecasting. 4138-8807-8436 [ 31 ](#page-9-1) See : N-1(i)...

AI summary The document discusses the need for improved minimum reporting in Annually Adjusted Rates (AAR) applications, emphasizing the importance of transparency and accuracy in NSPI's forecasting. REI requests that NSPI report on forecasted versus actual monthly and hourly marginal costs and provide explanations for variances. NSPI currently tracks hourly marginal units by generator but lacks detailed fuel-type data due to a cybersecurity incident.

stands that the information in Appendix A4 is incorrect, and the information in Exhibit N-2 is correct, and wished to bring this discrepancy to the Board's attention.[6](#page-4-3) NS Power Response: - NS Power adjusts NB Import volumes us...

AI summary The Consumer Advocate points out discrepancies in Appendix A4 and Exhibit N-2, which NS Power acknowledges and corrects. NS Power explains its use of a three-year average in the Fuel Adjustment Mechanism (FAM) for forecasting NB import volumes, and agrees with the CA regarding the Maritime Link on-peak surplus energy limits. The CA also discusses changes to the 1P-RTP methodology.

NS Power Response: Currently there is one customer taking service under the 1P-RTP Tariffs and that customer takes this service in concert with an above-the-line (ATL) tariff, with the 1P-RTP service being applied to the customer's top ene...

AI summary NS Power explains that only one customer currently uses the 1P-RTP Tariff, which is applied to the top energy block in conjunction with an above-the-line tariff. The company confirms that changes in the LF rate calculation method in 2018 did not affect the 1P-RTP Tariff rates, which are calculated independently. The fuel cost adjustment for 1P-RTP customers is based on varying eligible loads rather than a fixed 25 MW decrement.

ribed in Section 7.0 of the Application, the existing RtR tariffs The Board's Interim Order in the 2026 DCRR proceeding (M12521) approved the continuation of the 2025 DCRR "until further order of the Board in this matter, or as part of NS...

AI summary The document references the Board's Interim Order in the 2026 DCRR proceeding (M12521), which approved the continuation of the 2025 DCRR until further order of the Board or as part of NS Power's ongoing general rate application. REI acknowledges that the AAR process is not the proper venue for revising tariff structures.

reflect a framework that aligns marginal cost-based energy pricing with embedded-cost recovery safeguards, including the EBS, SS, and RTT Tariffs. Further, the development of, and participation in, the RtR market remains transitional, as e...

AI summary NS Power argues that initiating a new tariff redesign proceeding at this time would be premature due to ongoing developments in the RtR market and the transition of the IESO-NS. They suggest that structural tariff enhancements should be considered after greater operational experience and regulatory certainty are achieved.

M12551, Exhibit N-12, pages 7-8. 1 directed by the Board, and monthly marginal cost values underlying the annual average applied in 2 the tariffs. 3 4 NS Power does not support a requirement to provide historical reconstructions or narrati...

AI summary NS Power opposes the requirement to provide detailed historical reconstructions or explanations for monthly or hourly deviations between forecast and actual marginal costs, citing administrative burdens and limited incremental value. It emphasizes that forecasts are based on the best available information and are aligned with the FAM Plan of Administration forecasting methodology.

DEMAND CHARGE The demand charge for this service is made up of the following two components: - (1) Annually adjusted demand-related purchased power cost, coming into effect as a result of a Base Cost of Fuel, Fuel Adjustment Mechanism, or...

AI summary The demand charge for the service comprises two components, including an annually adjusted demand-related purchased power cost influenced by the Base Cost of Fuel, Fuel Adjustment Mechanism, or General Rate Application.

ENERGY CHARGE The energy charge is made up of the following two components: - (1) Annually adjusted energy-related purchased power and fuel cost, coming into effect as a result of a Base Cost of Fuel, Fuel Adjustment Mechanism or General R...

AI summary The energy charge consists of two components, one of which is annually adjusted energy-related purchased power and fuel cost, influenced by factors such as Base Cost of Fuel, Fuel Adjustment Mechanism, or General Rate Application.

- (2) Energy-related fixed generation cost, coming into effect as a result of a General Rate Application. Energy Charge Components cents per kWh Energy-related Purchased Power and Fuel Cost 7.9266.984 Energy-related Fixed Generation Cost 2...

AI summary The document outlines the energy-related fixed generation cost, which is part of a General Rate Application. It includes a table showing the breakdown of energy charge components, with energy-related fixed generation cost listed as 2.6512.166 cents per kWh.

The FAM Actual Adjustment (AA) and Balance Adjustment (BA) charges or credits (in cents per kilowatt-hour) applicable to the Tariff for the current rate year, shown in the FAM Tariff, shall apply, in addition to the energy charge.

AI summary The document specifies that the Fuel Adjustment Mechanism (FAM) Actual Adjustment (AA) and Balance Adjustment (BA) charges or credits, measured in cents per kilowatt-hour, apply to the current rate year's tariff in addition to the energy charge.

DEMAND CHARGE The demand charge for this service is made up of the following two components: - (1) Annually adjusted demand-related purchased power cost, coming into effect as a result of a Base Cost of Fuel, Fuel Adjustment Mechanism, or...

AI summary The demand charge for the service consists of two components, with the first being annually adjusted demand-related purchased power cost, influenced by factors such as Base Cost of Fuel, Fuel Adjustment Mechanism, or General Rate Application.

ENERGY CHARGE The energy charge is made up of the following two components: - (1) Annually adjusted energy-related purchased power and fuel cost, coming into effect as a result of a Base Cost of Fuel, Fuel Adjustment Mechanism or General R...

AI summary The energy charge comprises two components: annually adjusted energy-related purchased power and fuel cost, influenced by factors such as the Base Cost of Fuel, Fuel Adjustment Mechanism, or General Rate Application.

ENERGY CHARGE Energy charges will vary by voltage level of the point of delivery and will be made up of two components. - (1) Annually adjusted fuel cost component which shall be the Company's forecast average annual marginal energy cost a...

AI summary Energy charges in Nova Scotia vary by voltage level and consist of two components, including an annually adjusted fuel cost component based on the company's forecast average annual marginal energy cost, approved for use with the GR&LF tariff and adjusted for line losses.

DEMAND CHARGE The demand charge for this service is made up of the following two components: - (1) Annually adjusted demand-related purchased power cost, coming into effect as a result of a Base Cost of Fuel, Fuel Adjustment Mechanism, or...

AI summary The demand charge for the service is composed of two components, one being an annually adjusted demand-related purchased power cost, which is influenced by factors such as the Base Cost of Fuel, Fuel Adjustment Mechanism, or General Rate Application.

ENERGY CHARGE The energy charge is made up of the following two components: - (1) Annually adjusted energy-related purchased power and fuel cost, coming into effect as a result of a Base Cost of Fuel, Fuel Adjustment Mechanism or General R...

AI summary The energy charge consists of two components, primarily the annually adjusted energy-related purchased power and fuel cost, which is influenced by mechanisms such as the Base Cost of Fuel, Fuel Adjustment Mechanism, or General Rate Application.

- (2) Energy-related fixed generation cost, coming into effect as a result of a General Rate Application. Energy Charge Components cents per kWh Energy-related Purchased Power and Fuel Cost 6.974 Energy-related Fixed Generation Cost 2.155...

AI summary This section discusses the implementation of energy-related fixed generation cost as part of a General Rate Application. A table outlines the breakdown of energy charge components, including energy-related purchased power and fuel cost, and energy-related fixed generation cost, totaling 9.129 cents per kWh. The Fuel Adjustment Mechanism (FAM) is also introduced.

ENERGY CHARGE Effective: April 1, 2026 Energy charge for top-up service is made up of the following two components: - (1) Annually adjusted fuel cost component based on NS Power's incremental cost of serving the LRS' forecasted incremental...

AI summary The energy charge for top-up service is composed of an annually adjusted fuel cost component, determined by NS Power's incremental cost of serving the LRS' forecasted incremental top-up load, effective April 1, 2026.

Scenario A UNIT POWER PRODUCTION COSTS RTP Avoided Costs Feb Mar Apr Jun Jul Aug Sep Nov Dec Jan -4.3% 0.0% 0.0% May -4.5% 0.0% 0.0% 0.0% Oct -4.3% 0.0% 0.0% 4.3% 0.0% 0.0% 0.0% 4.8% -3.9% 0.0% 0.0% 0.0% 4.1% 0.0% 4.8% -4.2% 0.0% 0.0% 0.0%...

AI summary The document presents a table showing unit power production costs and RTP avoided costs across various months, with percentage changes and adjustments. It also references the EHV fuel cost adjustment, indicating a focus on fuel cost management and adjustments in the energy sector.

Case 2023 GRA 2026 GRA 7 ' 8 O&M $0.00178 $0.00279 $0.00279 57.0% 57.0% 9 Capital $0.00457 $0.00518 $0.00518 13.5% 13.5% 80 ROE $0.00232 $0.00260 $0.00260 12.1% 12.1% 81 Transmission Costs $0.00867 $0.00867 $0.010576 $0.01058 22.0% 22.0% 3...

AI summary This table compares the 2023 and 2026 General Rate Applications (GRA), highlighting changes in O&M, capital, ROE, transmission, distribution, and other costs. It shows percentage changes in various categories such as O&M, capital, and distribution costs, and includes entries like 'Avoided Costs' and 'Fuel Cost Adj'.

Base Cost of Fuel Cost of Service Allocation of Fuel Expenses among Rate Classes FOR THE YEAR ENDING DECEMBER 31, 2026

AI summary The document outlines the allocation of fuel expenses among rate classes for the year ending December 31, 2026, focusing on the base cost of fuel and the cost of service.

COLUMN A B C D E F G H I J K L M N O P Q R S T U V X Cost Allocation Fact tors Fuel-re lated Cos ts from COS Unmetered 31,520 83,275,289 0.73% 77,000,000 $3,105,001 $759,730 $63,255 $49,732 $24,950 $137,937 $832,602 $416,711 $1,249,313 $77...

AI summary The text presents a detailed table outlining cost allocations and factors related to fuel-related costs and purchased power. It includes various percentages, dollar amounts, and allocation factors for different categories and rate classes.

Monthly Fuel Cost Allocation Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Oct-26 Nov-26 Dec-26 Total Purchased Power Imports $4,757,627 $4,589,694 $3,462,924 $11,463,432 $11,169,883 $11,583,281 $8,099,729 $7,009,590 $10,8...

AI summary The document presents a detailed breakdown of monthly fuel cost allocation for various energy sources and programs in Nova Scotia from January 2026 to December 2026. It includes costs for purchased power, biomass, and the Maritime Link, along with totals for each month and the year.

Biomass Calculations ($ in millions) 2026 Capital Fuel Operating Total 54.0 100.0% Data from M05473 Exhibit N-3 CA IR-065P Confidential from the COSS Proceeding

AI summary The document presents biomass calculations for 2026, showing capital, fuel, and operating costs totaling $54 million, with fuel costs accounting for 100% of the total. The data is sourced from M05473 Exhibit N-3 CA IR-065P from the COSS Proceeding.

Annual Peak of ATL 2,356,954 Annual Energy Requirement of ATL 11,303,785,142 O- 4 0-! 4 1 1 F4 Category Plant Fuel Costs Jan-26 $67,441,935 Feb-26 $54,358,722 Mar-26 $49,574,650 Apr-26 $30,087,598 May-26 $22,231,785 Jun-26 $23,382,648 Jul-...

AI summary The text presents financial data related to plant fuel costs, Maritime Link surpluses, and non-wind purchases for a given period. It includes monthly figures and annual totals for these categories, indicating the financial operations and energy procurement activities of the entity.

ENERGY CHARGE Energy charges will vary by voltage level of the point of delivery and will be made up of two components. - (1) Annually adjusted fuel cost component which shall be the Company's forecast average annual marginal energy cost a...

AI summary Energy charges are determined by voltage level and consist of an annually adjusted fuel cost component, which is based on the Company's forecast average annual marginal energy cost, approved for use with the GR&LF tariff and adjusted for line losses at the voltage level of the point of delivery.

- (2) A fixed cost adder adjusted concurrent with changes in base cost rates coming into effect as a result of a General Rate Case application. Base Energy Charge Components Transmission Voltage of 69 kV or Higher (cents per kWh) Distribut...

AI summary The text discusses a fixed cost adder that is adjusted in line with changes in base cost rates resulting from a General Rate Case application. It includes a table showing the breakdown of base energy charges, including fuel cost and fixed cost adder components for different voltage levels.

DEMAND CHARGE The demand charge for this service is made up of the following two components: - (1) Annually adjusted demand-related purchased power cost, coming into effect as a result of a Base Cost of Fuel, Fuel Adjustment Mechanism, or...

AI summary The demand charge for the service consists of two components, one being an annually adjusted demand-related purchased power cost, which is influenced by factors such as the Base Cost of Fuel, Fuel Adjustment Mechanism, or General Rate Application.

ENERGY CHARGE The energy charge is made up of the following two components: - (1) Annually adjusted energy-related purchased power and fuel cost, coming into effect as a result of a Base Cost of Fuel, Fuel Adjustment Mechanism or General R...

AI summary The energy charge consists of two components, one of which is annually adjusted energy-related purchased power and fuel cost, influenced by factors such as the Base Cost of Fuel, Fuel Adjustment Mechanism, or General Rate Application.

The FAM Actual Adjustment (AA) and Balance Adjustment (BA) charges or credits (in cents per kilowatt-hour) applicable to the Tariff for the current rate year, shown in the FAM Tariff, shall apply, in addition to the energy charge.

AI summary The document specifies that the FAM Actual Adjustment (AA) and Balance Adjustment (BA) charges or credits, in cents per kilowatt-hour, applicable to the Tariff for the current rate year, as shown in the FAM Tariff, shall apply in addition to the energy charge.

ENERGY CHARGE Effective: April 1, 2026 Energy charge for top-up service is made up of the following two components: - (1) Annually adjusted fuel cost component based on NS Power's incremental cost of serving the LRS' forecasted incremental...

AI summary The energy charge for top-up service, effective April 1, 2026, consists of an annually adjusted fuel cost component based on NS Power's incremental cost of serving the LRS' forecasted incremental top-up load.

rginal costs are calculated in real time, it does not require Board approval. The fixed cost adders recover the non-fuel costs and adjustments for the difference in the recovery of avoided fuel costs. Under the RTP proposed changes, the EH...

AI summary NS Power proposes changes to the RTP and Shore Power Tariff (SP), including the elimination of the avoided fuel cost adjustment and differentiation of SP by voltage levels. The Board approves these changes, finding them reasonable and noting stakeholder engagement was completed.

Other Issues raised by the CA and SBA The CA's submission did not object to NS Power's AAR application, however, comments about the modeling of imports were provided. Specifically, the CA noted that there were inconsistencies between the h...

AI summary The CA raised concerns about inconsistencies in NS Power's modeling of NB imports and ML surplus energy volumes. NS Power acknowledged errors and clarified its methodology for adjusting import volumes using a three-year average as per the Fuel Adjustment Mechanism Plan. The SBA expressed concerns about risk transfer and cross-subsidization, noting that AAR customers bear greater risk compared to Above the Line customers. The Board agreed with NS Power's explanation.

ENERGY CHARGE Energy charges will vary by voltage level of the point of delivery and will be made up of two components. - (1) Annually adjusted fuel cost component which shall be the Company's forecast average annual marginal energy cost a...

AI summary The energy charge consists of two components, with the first being an annually adjusted fuel cost component based on the Company's forecast average annual marginal energy cost, approved for use with the GR&LF tariff and adjusted for line losses at the voltage level of the point of delivery.

SPECIAL CONDITIONS (1) The Port Authority owns and is responsible for the maintenance and operation of all electrical equipment required for the supply of port electricity to docked ships other than the meters and - metering transformers s...

AI summary The Port Authority and NSPI have defined roles and responsibilities regarding electrical equipment, metering, and operational procedures for port electricity supply. Special conditions include metering responsibilities, staff availability, scheduling, metering costs, transformer losses, and power factor requirements.

DEMAND CHARGE The demand charge for this service is made up of the following two components: - (1) Annually adjusted demand-related purchased power cost, coming into effect as a result of a Base Cost of Fuel, Fuel Adjustment Mechanism, or...

AI summary The demand charge for the service comprises two components, with the first being an annually adjusted demand-related purchased power cost influenced by factors such as the Base Cost of Fuel, Fuel Adjustment Mechanism, or General Rate Application.

ENERGY CHARGE The energy charge is made up of the following two components: - (1) Annually adjusted energy-related purchased power and fuel cost, coming into effect as a result of a Base Cost of Fuel, Fuel Adjustment Mechanism or General R...

AI summary The energy charge consists of two components, with the first being annually adjusted energy-related purchased power and fuel costs, which are influenced by mechanisms such as the Base Cost of Fuel, Fuel Adjustment Mechanism, or General Rate Application.

- (2) Energy-related fixed generation cost, coming into effect as a result of a General Rate Application. Energy Charge Components cents per kWh Energy-related Purchased Power and Fuel Cost 6.984 Energy-related Fixed Generation Cost 2.166...

AI summary The document outlines the energy-related fixed generation cost, which is part of a General Rate Application. It includes a table showing the breakdown of energy charge components, such as purchased power and fuel cost, and fixed generation cost, with a total of 9.150 cents per kWh. The Fuel Adjustment Mechanism (FAM) is also mentioned.

ENERGY CREDIT Compensation for spill energy delivered to NSPI will be at the Company's forecast average annual marginal energy costs of 6.736 cents per kilowatt hour as approved for use with the GRLF rate.

AI summary The Energy Credit section outlines that compensation for spill energy delivered to NSPI will be based on the Company's forecast average annual marginal energy costs of 6.736 cents per kilowatt hour, as approved for use with the GRLF rate.

APPLICABILITY - (1) The RTT is applicable to the LRS, and is in addition to (and not in substitution of) any charges owing by the LRS to NS Power under the Open Access Transmission Tariff (OATT), the Standby Service Tariff, or the Energy B...

AI summary The RTT applies to LRS and is in addition to charges under the OATT, Standby Service Tariff, and Energy Balancing Service Tariff. Energy and Demand Charges under the RTT include provisions for mitigation credits and annual adjustments based on forecasted avoided costs and system fuel costs.

The Energy Charge is made up of the following components: Energy Charge Components cents per kWh Fixed Cost Adder from Energy Balancing Service Tariff 2.166 Annually Adjusted Energy Savings Credit 0.000 Annual Energy Cost Adjustment 2.198...

AI summary The Energy Charge comprises fixed cost adders, energy savings credits, and annual adjustments, totaling 4.363 cents per kWh. It applies to the Load Serving Retailer's monthly displaced energy on NS Power's generation system, calculated after accounting for distribution losses and top-up quantities.

Customer Baseline Energy Charge, Customer Baseline Energy Cost, and Contribution to Utility Costs In advance of each tariff year, PHP shall advise NS Power of its forecast annual and monthly energy requirements for the subsequent calendar...

AI summary The document outlines the methodology for calculating the Customer Baseline Energy Charge (CBL Energy Charge) and related components, including the CBL Adder (CBLA) and Variable Capital Charge (VCC), for PHP. These charges are based on forecasted costs and are submitted for Board approval as part of the annual rate-setting process.

FUEL ADJUSTMENT MECHANISM (FAM) No FAM charges or credits shall be applicable to PHP, and PHP will have no standing to participate in FAM-related processes or proceedings unless it is proposed that a FAM-related charge be assessed against...

AI summary The Fuel Adjustment Mechanism (FAM) does not apply to PHP, and PHP cannot participate in FAM-related processes unless a FAM-related charge is proposed against it or the process directly impacts NS Power's incremental electricity costs.

ENERGY CHARGE Energy charges will vary by voltage level of the point of delivery and will be made up of two components. - (1) Annually adjusted fuel cost component which shall be the Company's forecast average annual marginal energy cost a...

AI summary Energy charges are determined based on voltage levels and consist of two components. One is an annually adjusted fuel cost component, calculated as the company's forecast average annual marginal energy cost, approved for use with the GR&LF tariff and adjusted for line losses at the point of delivery voltage level.

- (2) A fixed cost adder adjusted concurrent with changes in base cost rates coming into effect as a result of a General Rate Case application. Energy Base Charge Components Transmission Voltage of Higher 69 kV or (cents per kWh) Distribut...

AI summary The text describes a fixed cost adder that is adjusted in conjunction with changes in base cost rates resulting from a General Rate Case application. The table provides specific values for fuel cost and fixed adder components across different voltage levels.

DEMAND CHARGE The demand charge for this service is made up of the following two components: - (1) Annually adjusted demand-related purchased power cost, coming into effect as a result of a Base Cost of Fuel, Fuel Adjustment Mechanism, or...

AI summary The demand charge for the service consists of two components, with the first being an annually adjusted demand-related purchased power cost, influenced by factors such as the Base Cost of Fuel, Fuel Adjustment Mechanism, or General Rate Application.

- (2) Energy-related fixed generation cost, coming into effect as a result of a General Rate Application. Energy Charge Components cents per kWh Energy-related Purchased Power and Fuel Cost 6.974 Energy-related Fixed Generation Cost 2.155...

AI summary The document introduces an energy-related fixed generation cost that is part of a General Rate Application. It includes a table showing the breakdown of energy charge components, including a 2.155 cents per kWh fixed generation cost and a Fuel Adjustment Mechanism (FAM) section.

ENERGY CHARGE Energy charge for top-up service is made up of the following two components: - (1) Annually adjusted fuel cost component based on NS Power's incremental cost of serving the LRS' forecasted incremental top-up load.

AI summary The energy charge for top-up service includes an annually adjusted fuel cost component based on NS Power's incremental cost of serving the LRS' forecasted incremental top-up load.

- (2) Fixed cost adder reflective of fixed cost energy-related generation costs. Energy Charge Components cents per kWh Fuel Cost 6.736 Fixed Cost Adder 2.155 Total 8.891 The charge is applicable to top-up energy consumed in each hour.

AI summary The document outlines a fixed cost adder of 2.155 cents per kWh, which reflects fixed cost energy-related generation costs. This adder is applied to top-up energy consumed in each hour, alongside a fuel cost of 6.736 cents per kWh, resulting in a total energy charge of 8.891 cents per kWh.

APPLICABILITY - (1) The RTT is applicable to the LRS, and is in addition to (and not in substitution of) any charges owing by the LRS to NS Power under the Open Access Transmission Tariff (OATT), the Standby Service Tariff, or the Energy B...

AI summary The RTT applies to Load Serving Retailers (LRS) in addition to other tariffs. It includes energy and demand charges with adjustments based on forecasted savings and avoided costs. The LRS must also take service under the OATT and other tariffs. The RTT includes annual adjustments and credits based on forecasted performance.

The Energy Charge is made up ofthe following components: Energy Charge Components cents per kWh Adder Tariff Fixed Cost from Energy Balancing Service 2.155 Annually Adjusted Energy Savings Credit 0.000 Annual Energy Cost Adjustment 2.171 T...

AI summary The Energy Charge comprises several components, including an Adder Tariff, Annually Adjusted Energy Savings Credit, and Annual Energy Cost Adjustment, totaling 4.326 cents per kWh. It applies to the LRS' monthly displaced energy on NS Power's generation system, calculated as the total monthly LRS load, including distribution losses, minus the total monthly LRS top-up quantity.

Fuel-related information Consistent with the treatment of the fuel-related information under the Fuel Adjustment Mechanism (FAM), NS Power is requesting confidential treatment of the fuel-related information in this AAR Application: - Part...

AI summary NS Power is requesting confidential treatment for certain fuel-related information and customer-specific data in its AAR Application, in line with the Fuel Adjustment Mechanism and Board Regulatory Rule 12. The application includes partially confidential and fully confidential appendices, and the request is directed to the Board for approval.

Document: 325987 Date Filed: 12/01/25 Page 1 1 Request IR-1: 2 Appendix A2 presents the annual marginal generation costs by month. 3 a) Please explain why for February and March. 4 b) Please provide the values for Marginal Costs excluding...

AI summary The document outlines several requests for information related to marginal generation costs, pricing systems, and updates to annually adjusted rates. It includes inquiries about specific months, cost exclusions, forecast price factors, and omitted updates in the 2026 AARs.

Request IR-5: - Page 11 cites forecasted solid fuel prices decreasing for 2026. Please discuss the factors leading - to this decrease, including those associated with output prices for SO2.

AI summary Page 11 of Request IR-5 cites a forecast of decreasing solid fuel prices for 2026 and requests a discussion of the factors contributing to this decrease, including those related to SO2 output prices.

1 Request IR-3: - 2 Preamble: Based on the principles of economic dispatch, and recognizing the influence 3 of environmental legislation, REI expects that the highest variable cost generators would 4 generally be: diesel combustion turbine...

AI summary The document requests NS Power to confirm or refute REI's assertion that diesel combustion turbines, natural gas generation from Tufts Cove, and imports are the highest variable cost generators. It also asks for a comparison between PLEXOS model forecasts and actual data on marginal generator hours for 2024 and 2025.

1 (b) Please provide the missing information required to evaluate historical 2 forecast accuracy regarding natural gas, diesel, import purchases, and 3 Maritime Link. А В С D Е F G Н 1 (millions of dolla rs) YTD 2 dec dec dec dec dec dec o...

AI summary The text requests the provision of missing information to evaluate historical forecast accuracy for natural gas, diesel, import purchases, and the Maritime Link. It includes tables with actual, forecast, and budget figures for these categories across various years.

1 (b) Over the last three years, for each year, please provide: 2 3 (i) The forecast number of hours in which NB imports and ML imports (disaggregated) were expected to be the marginal 4 cost generator; and 5 (ii) The actual number of hour...

AI summary The document requests information on the accuracy of NS Power's monthly marginal cost forecasts, the operational and administrative impacts of transitioning from annual to monthly updates for AARs, and whether NS Power agrees that monthly marginal cost pricing would improve price signals and reduce cross-subsidization.

2 Reference: Assumptions, page 11, Appendix A3 PCON; and Board-Directed Sensitivity 3 Analyses, pages 12-13 and Appendix A6 PCON. - 4 (a) NS Power has stated that higher SO2 emission limits have resulted in lower 5 marginal costs. Please c...

AI summary The document contains a series of questions directed to NS Power regarding SO2 emissions, marginal cost impacts, surplus energy delivery, and sensitivity analyses related to commodity price volatility, wind generation delays, and tariff assumptions. The questions seek clarification on assumptions, risk factors, and forecasting methodologies used in cost modeling.

18 Request IR-16: - 19 Reference: RtR Transition Tariff (RTT) Annual Energy Cost Adjustment, page 35 and 20 Appendix F4, page 138. - 21 Preamble: This portion of the tariff considers differences between marginal fuel costs 22 and average f...

AI summary The document requests NS Power to clarify how it incorporated REI's forecasted load migration into its calculation of the Annual Energy Cost Adjustment under the RtR Transition Tariff, including the methodology used and the impact of load migration on NS Power.

16 Request IR-17: - 17 (a) Under the current RTT framework, please confirm whether the Annual 18 Energy Cost Adjustment would require NS Power to provide a credit to the 19 RtR customer in circumstances where the Average Marginal Cost (or...

AI summary The request seeks clarification on the Annual Energy Cost Adjustment under the RTT framework, specifically regarding whether credits are required when avoided costs exceed system fuel costs, the amount of such credits, and any limitations or constraints on the credit magnitude.

l and Purchased Power Model.17 17 - 2025 PLEXOS AAR F&PP model is based on the 2024 Q3 forecast F&PP model, with updated system assumptions, including commodity pricing update as of 2024-08-16. 1. In stating the above, is NS Power saying i...

AI summary The text discusses the 2025 PLEXOS AAR F&PP model used by NS Power, with assumptions based on August 2024 data. It raises questions about model accuracy, data timeliness, and the identification of highest variable cost generators. The preamble also references economic dispatch and environmental legislation, as well as forecast accuracy assessments via FAM reporting.

1. Where the forecast marginal generator is an import, has NS Power assessed the accuracy of these forecasts on a monthly and annual basis? If yes, please provide the results of such assessments for the past three years. If no, please expl...

AI summary The document raises questions about NS Power's forecasting practices for marginal cost calculations, specifically regarding the accuracy of monthly and annual forecasts, the comparison of actual versus forecasted hours of import usage, and the potential benefits of switching to monthly marginal cost pricing for AARs. It also inquires about the operational and administrative impacts of such a change.

costs more closely aligned with actual system conditions and fuel costs, thereby reducing cross-subsidization between bundled service customers and RtR market participants? If not, please explain why annual averaging does not create cross-...

AI summary The text questions whether annual averaging of costs aligns with actual system conditions and fuel costs, and whether it creates cross-subsidization risks between bundled service customers and RtR market participants. It requests an explanation and quantitative analysis if annual averaging does not pose such risks.

1. NS Power has stated that higher SO2 emission limits have resulted in lower marginal costs. Please confirm the SO2 emissions associated with NS Power production in 2026, the applicable SO2 emission limits, and the remaining headroom unde...

AI summary The document presents a series of questions to NS Power regarding SO2 emissions, marginal costs, surplus energy delivery, and sensitivity analyses related to commodity price volatility, Muskrat Surplus Energy, and wind project delays. It also requests confirmation on the inclusion of the Goose Harbour Lake wind farm in the 2026 PHP CBL load and a comparison of marginal and average costs under different tariff scenarios.

ysis showing the impact on marginal and average costs if PHP continues to receive service under the ELIADC through 2026 versus taking service under a to-be-filed successor tariff which may be above-the-line. Please quantify the potential r...

AI summary The text consists of a series of questions directed at NS Power regarding the financial and operational implications of various scenarios, including the impact of ELIADC, accuracy of wind generation data, forecasting methods, risk management, and the potential for more frequent marginal cost updates in the RtR market.

re implemented to reconcile forecast versus actual marginal costs, please explain how this would affect: 1. the risks or benefits to NS Power identified in part (a) above; 2. the need for or benefit of more frequent marginal cost updates;...

AI summary The text requests an explanation of how reconciling forecast versus actual marginal costs would affect NS Power's risks and benefits, the need for frequent updates, and risk allocation. It also asks for steps to implement an annual true-up mechanism and compares it to the ELIADC calculation. References to cost estimates and capital work orders are included.

rates. Where the change is greater than 10% for a particular component, please provide a detailed explanation of the driver(s), including the relative contribution of each driver to the total change. Reference: Appendix F3, page 137 Standb...

AI summary The document requests detailed explanations regarding the Interruptible Service Credit and its inclusion in the 2026 Standby Demand Charge calculation. It also highlights the need for closer scrutiny of the Annual Energy Cost Adjustment due to the increasing influence of environmental costs and regulations on marginal costs.

there is an increasing role of environmental costs and regulations in determining marginal costs, so REI believes closer scrutiny of the calculation of the Annual Energy Cost Adjustment is warranted

AI summary REI emphasizes the growing influence of environmental costs and regulations on marginal costs and advocates for a more detailed examination of the Annual Energy Cost Adjustment calculation.

1. Please confirm that NS Power considered REI’s forecasted market uptake in its load forecast and calculation of average and marginal costs for 2026. If not, please explain why REI's forecast was not considered and what load migration ass...

AI summary The text outlines a series of questions directed at NS Power regarding its load forecasting, cost calculations, and tariff provisions related to the RTT Annual Energy Cost Adjustment. It asks whether REI's forecast was considered, how load migration impacts cost calculations, and whether credits are provided under certain conditions.

tations, offsets, or adjustments that would reduce the credit amount? Please explain with reference to specific tariff provisions. 7. Please indicate whether NS Power believes that any cap, limit, floor, or other constraint applies to the...

AI summary The document addresses questions about the Annual Energy Cost Adjustment and related credits, including whether caps or constraints apply. NS Power explains that the Annually Adjusted Energy Savings Credit is designed to account for non-fuel cost savings from freed-up capacity, but no savings are projected in 2026. The current value of zero remains in effect.

30 1 (b) The rationale for the elimination of the avoided cost adjustment appears to 2 be primarily related to the SO2 emissions and adjustment in allowable 3 emissions compliance costs. Does NSPI anticipate these impacts on the 4 avoided...

AI summary The document discusses the elimination of an avoided cost adjustment related to SO2 emissions compliance costs and questions whether the impact is indefinite or temporary. It also addresses the potential discontinuation of the ELIADC Tariff before the end of 2026 and concerns raised by Bates White regarding the fixed costs in the CBL Energy Charge.

1. 1. Assuming this Application is approved as filed, effective January 1, 2026, what is the annual revenue forecast to be collected from each rate class under the AAR? In providing your answer, please identify the load forecast being used...

AI summary The text presents questions regarding the annual revenue forecast under the AAR, load forecasts, and the impact of the Goose Harbour Wind Farm and PHP becoming an ATL customer. It also addresses the impact of a cyber incident on NSPI’s ability to access historical data and formulate AARs for 2026.

rison of the monthly forecast NB imports to actual NB imports dating back to at least 2023? If so, please provide such comparison. If not, please explain why not. Reference: Page 20, lines 16-19. In view of the foregoing, NS Power has, in...

AI summary The text raises questions about NSPI's handling of avoided fuel cost adjustments, the reliability of estimated avoided fuel costs, and the potential discontinuation of the ELIADC Tariff. It also references the impact of these adjustments on rate-setting methodologies and the implications for the ELIADC Tariff's annual calculations.

Request IR-3: In its letter of January 31, 2025, NS Power stated that it would "prepare a proposal outlining the change in methodology for the calculation of the FCA component of 1P-RTP Tariffs for distribution to stakeholders in Q2 2025,...

AI summary NS Power committed to prepare a proposal outlining changes to the FCA component of 1P-RTP Tariffs for stakeholder review in Q2 2025. The request seeks clarification on whether this proposal was completed and, if not, the reason for the delay.

ed under the proposed 1P-RTP and the alternate 1P-RTP (as provided in response to part (c) above) rates, and explain any material differences in the total cost recovery. - (e) NS Power further states, In view of the foregoing [referencing...

AI summary NS Power has eliminated the adjustment for the projected imbalance in the recovery of the avoided fuel in response to the SO2 emissions limit. Energy charges are now based on hourly marginal costs, and fixed cost adders include only non-fuel costs.

And: The fuel cost imbalance arises from employing hourly marginal costs, as opposed to hourly average avoided fuel costs, in energy charges on customer bills. Since the differential between hourly marginal and hourly avoided fuel costs ca...

AI summary The fuel cost imbalance is attributed to the use of hourly marginal costs rather than hourly average avoided fuel costs in customer bills, leading to volatility in annual projections and fluctuations in adders. The Application cites the SO2 emissions limit issue as the sole justification for eliminating the adjustment for the projected imbalance, though other reasons may exist.

Request IR-5: In its 2018 AAR application, NS Power stated that the "the marginal hourly costs of the next MWh are determined by the incremental costs of the source of generation on the margin in each hour."[8](#page-3-0) In that same appl...

AI summary The document requests an explanation of how different 1P-RTP Tariff designs collect unit commitment costs resulting from additional demand, referencing the 2024, 2025, and 2026 AAR decisions and applications.

M12551 NOVA SCOTIA UTILITY AND REVIEW BOARD IN THE MATTER OF: The Public Utilities Act, R.S.N.S. 1989, c. 380 -and - IN THE MATTER OF: NOVA SCOTIA POWER’S APPLICATION FOR 2026 ANNUALLY ADJUSTED RATES (AAR) INFORMATION REQUESTS To: Michael...

AI summary The Nova Scotia Consumer Advocate has submitted a series of information requests to Nova Scotia Power regarding the calculation of fuel cost adjustments, load forecasting, and stakeholder engagement related to tariff methodologies. The requests include inquiries about quoted material, load forecasting practices, and the status of a proposed methodology change for FCA calculations.

FCA component of 1P-RTP Tariffs for distribution to stakeholders in Q2 2025, for review at the first stakeholder session.”[[1]](#footnote-2) Please explain whether this occurred and, if not, why not. In the 2025 AAR proceeding, NS Power st...

AI summary The document discusses NS Power's explanation regarding the FCA component of 1P-RTP Tariffs not being distributed to stakeholders in Q2 2025 and the impact of recent emissions standards on the 1P-RTP tariff methodology, citing concerns over volatility and reliability of the current avoided fuel cost methodology.

e air emission market makes the continued application of the current avoided fuel cost methodology increasingly difficult, it leads to volatile results, and therefore is unreliable.”[[3]](#footnote-4)

AI summary The current avoided fuel cost methodology is becoming increasingly difficult to apply due to the volatility of the air emission market, leading to unreliable results.

es that the system resources mix that would be developed for a lower load case resulting from the load decrement analysis would not differ from the present system configuration. If not confirmed, please explain. 3. Please provide an altern...

AI summary The document requests clarification on system resource mix, an alternate version of Appendix B2 using the SO2 adjustment method, and a summary of total cost recovery under different 1P-RTP rates. NS Power eliminated the fuel cost imbalance adjustment due to the SO2 emissions limit and hourly marginal cost pricing, which can cause volatility in adders.

rginal costs are calculated in real time, it does not require Board approval. The fixed cost adders recover the non-fuel costs and adjustments for the difference in the recovery of avoided fuel costs. Under the RTP proposed changes, the EH...

AI summary NS Power proposed changes to the RTP and Shore Power Tariff (SP), including eliminating the adjustment for avoided fuel cost imbalances and differentiating SP by voltage levels. The Board approved these changes, finding them reasonable and noting stakeholder engagement was completed.

Other Issues raised by the CA and SBA The CA's submission did not object to NS Power's AAR application, however, comments about the modeling of imports were provided. Specifically, the CA noted that there were inconsistencies between the h...

AI summary The CA raised concerns about inconsistencies in NS Power's modeling of NB imports and surplus energy volumes, while the SBA expressed concerns about risk transfer and cross-subsidization related to AAR rates. NS Power explained its methodology for adjusting NB import volumes and clarified that AAR customers bear greater risk than Above the Line customers. The Board found the methodology reasonable and agreed with NS Power's explanation.

ENERGY CHARGE Energy charges will vary by voltage level of the point of delivery and will be made up of two components. - (1) Annually adjusted fuel cost component which shall be the Company's forecast average annual marginal energy cost a...

AI summary The energy charge consists of two components, with the first being an annually adjusted fuel cost component based on the Company's forecast average annual marginal energy cost, approved for use with the GR&LF tariff and adjusted for line losses at the voltage level of the point of delivery.

DEMAND CHARGE The demand charge for this service is made up of the following two components: - (1) Annually adjusted demand-related purchased power cost, coming into effect as a result of a Base Cost of Fuel, Fuel Adjustment Mechanism, or...

AI summary The demand charge for the service includes an annually adjusted demand-related purchased power cost, which is influenced by factors such as the Base Cost of Fuel, Fuel Adjustment Mechanism, or General Rate Application.

ENERGY CHARGE The energy charge is made up of the following two components: - (1) Annually adjusted energy-related purchased power and fuel cost, coming into effect as a result of a Base Cost of Fuel, Fuel Adjustment Mechanism or General R...

AI summary The energy charge consists of two components, one of which is annually adjusted energy-related purchased power and fuel cost, influenced by factors such as the Base Cost of Fuel, Fuel Adjustment Mechanism, or General Rate Application.

- (2) Energy-related fixed generation cost, coming into effect as a result of a General Rate Application. Energy Charge Components cents per kWh Energy-related Purchased Power and Fuel Cost 6.984 Energy-related Fixed Generation Cost 2.166...

AI summary The document introduces an energy-related fixed generation cost, effective due to a General Rate Application. It includes a table with energy charge components and mentions the Fuel Adjustment Mechanism (FAM).

APPLICABILITY - (1) The RTT is applicable to the LRS, and is in addition to (and not in substitution of) any charges owing by the LRS to NS Power under the Open Access Transmission Tariff (OATT), the Standby Service Tariff, or the Energy B...

AI summary The RTT applies to the LRS in addition to other tariffs, with energy and demand charges adjusted annually based on forecasted savings and cost differences. The LRS must also take service under the OATT and other tariffs.

Customer Baseline Energy Charge, Customer Baseline Energy Cost, and Contribution to Utility Costs In advance of each tariff year, PHP shall advise NS Power of its forecast annual and monthly energy requirements for the subsequent calendar...

AI summary The document outlines the calculation method for the Customer Baseline Energy Charge (CBL Energy Charge) and related components, including the CBL Adder (CBLA) and Variable Capital Charge (VCC), which are used to determine the ELIADC Energy Charge. The process involves forecasting energy requirements, calculating incremental costs, and applying specific formulas based on forecasted CBL Cost levels.

FUEL ADJUSTMENT MECHANISM (FAM) No FAM charges or credits shall be applicable to PHP, and PHP will have no standing to participate in FAM-related processes or proceedings unless it is proposed that a FAM-related charge be assessed against...

AI summary The Fuel Adjustment Mechanism (FAM) does not apply to PHP, and PHP cannot participate in FAM-related processes unless a FAM-related charge is proposed against it or the process directly impacts NS Power's incremental electricity costs.

ENERGY CHARGE Energy charges will vary by voltage level of the point of delivery and will be made up of two components. - (1) Annually adjusted fuel cost component which shall be the Company's forecast average annual marginal energy cost a...

AI summary The energy charge is composed of two components, with the first being an annually adjusted fuel cost component based on the Company's forecast average annual marginal energy cost, approved for use with the GR&LF tariff and adjusted for line losses at the voltage level of the point of delivery.

DEMAND CHARGE The demand charge for this service is made up of the following two components: - (1) Annually adjusted demand-related purchased power cost, coming into effect as a result of a Base Cost of Fuel, Fuel Adjustment Mechanism, or...

AI summary The demand charge for the service consists of two components, with one being an annually adjusted demand-related purchased power cost influenced by factors such as the Base Cost of Fuel, Fuel Adjustment Mechanism, or General Rate Application.

- (2) Energy-related fixed generation cost, coming into effect as a result of a General Rate Application. Energy Charge Components cents per kWh Energy-related Purchased Power and Fuel Cost 6.974 Energy-related Fixed Generation Cost 2.155...

AI summary This section outlines the energy-related fixed generation cost, which is part of a General Rate Application. It includes a table with energy charge components, highlighting the energy-related purchased power and fuel cost, as well as the energy-related fixed generation cost, totaling 9.129 cents per kWh. The Fuel Adjustment Mechanism (FAM) is also mentioned.

ENERGY CHARGE Energy charge for top-up service is made up of the following two components: - (1) Annually adjusted fuel cost component based on NS Power's incremental cost of serving the LRS' forecasted incremental top-up load.

AI summary The energy charge for top-up service includes an annually adjusted fuel cost component based on NS Power's incremental cost of serving the LRS' forecasted incremental top-up load.

APPLICABILITY - (1) The RTT is applicable to the LRS, and is in addition to (and not in substitution of) any charges owing by the LRS to NS Power under the Open Access Transmission Tariff (OATT), the Standby Service Tariff, or the Energy B...

AI summary The RTT applies to LRS and includes energy and demand charges with adjustments based on forecasted savings and avoided costs. It operates alongside other tariffs and includes provisions for annual adjustments and credits.

RECEIPT AND REVIEW OF MARGINAL COST INFORMATION REI confirms that it has received and reviewed the actual hourly marginal cost data for 2024 and 2025 provided by NS Power. REI notes that it had requested a broader range of historical years...

AI summary REI has received and reviewed marginal cost data for 2024 and 2025 from NS Power but requests additional historical data to assess variability and determine the need for a true-up mechanism. REI plans to provide more detailed feedback after reviewing the expanded dataset.