Topic:"Fuel Cost Adjustment" in M12768

4.00 multiplied by the total number of MWh supplied in the year. Any adjustments required to achieve this minimum payment amount will be determined and charged to PHP after the year end.[2](#page-1-0) For 2025, the minimum $4/MWh fixed cos...

AI summary The text discusses the minimum fixed cost revenue of $4/MWh charged to PHP monthly in 2025, the ADC differential based on estimated versus actual costs, and the required adjustment of $149,304 to ensure compliance with the Tariff. It also references a recommendation from the 2022-2023 FAM Audit Report and mentions the ELIADC Tariff.

Operation Summary Despite challenges resulting from NS Power's cyber incident, the Nova Scotia Power System Operator (NSPSO), NS Power Energy Marketing team, and PHP adapted and worked collaboratively forthe benefit of all customers. The r...

AI summary NS Power's cyber incident posed challenges, but collaboration between NSPSO, NS Power Energy Marketing, and PHP ensured customer benefits. Stable fuel pricing relative to CBL forecasts and Active Demand Control's flexibility contributed to a positive 2025 ADC Load Shifting Differential.

Off-Schedule Summary In 2025 there were 95 hours in which PHP chose to deviate from the submitted schedule (Code 5, "PDN") spread across 21 unique events (where a single event can span multiple hours). These PDN hours comprised 1.1 percent...

AI summary In 2025, PHP had 95 off-schedule hours (1.1% of total), leading to $706,609 system cost impact, with $529,957 reduced ADC credit. PHP's net balance is $149,304. Reasons included fulfilling orders, managing silo levels, and maintaining load.

Cause Code 2 - NDN - NSP Energy System Operator initiated ramp Down Total Billed $ 100.85 Cause Code 3 - PFL - PHP Failure to Load due to equipment or process constraints ADC $ (2.20) Cause Code 4 - PNA - PHP and NSP Agreement to new dispa...

AI summary This text details various cause codes related to energy system adjustments and billing, including ramp down events, failure to load due to equipment constraints, and adjustments related to the Active Demand Control (ADC) program. It also provides information on the total cost to serve PHP in 2025.

NON-CONFIDENTIAL 1 Request IR-5: 2 3 Please refer to PDF page 3, "Load Variations." Did PHP's lower-than-forecasted demand 4 increase system costs, such as through retention of higher capacity, higher reserves, greater 5 unit commitment, o...

AI summary The response to Request IR-5 explains that PHP's lower-than-forecasted demand did not affect NS Power's long-term procurement decisions, such as gas and power RFPs, as PHP load is not currently included in these decisions. The modeling in PortOps ensures PHP pays for all generation serving its demand.

Extra Large Industrial Active Demand Control (ELIADC) Tariff 2025 Annual Report (NSEB M12768) NSPI Responses to IG Information Requests 1 Request IR-1: 6 1 TWh (1,000 GWh). The 2025 actual benefit ($4.4 million) falls below this forecast r...

AI summary The 2025 ELIADC Tariff Annual Report indicates that the actual benefit ($4.4 million) fell below the 2019 forecast, partly due to fuel price volatility from 2021-2024. However, the benefit was the second-highest in the six-year operating history, showing improved alignment with forecasts as fuel markets have stabilized.

2025 ELIADC IG IR-3 Attachment 1 Page 4 of 7 REDACTED (CONFIDENTIAL INFORMATION REMOVED)

AI summary The document is a confidential attachment from a 2025 ELIADC information request (IR-3) and contains redacted information. It is part of a regulatory proceeding involving Nova Scotia Power Inc. and the Nova Scotia Energy Board.

CONFIDENTIAL (Attachment Only) 1 Request IR-5: 2 3 Reference: 2025 Annual Report, Exhibit N-1, p. 3/9, Load Variations 4 5 PHP's initial 2025 forecast totalled 811 GWh. There were revisions to PHP's 6 7 load forecast through the year, with...

AI summary The document requests clarification on PHP's 2025 load forecast, including discrepancies between initial forecasts and actual demand, the timeline for revisions, and the process for handling forecast changes. It also asks about the impact of forecast divergence on dispatch optimization and the calculation of the CBL energy charge.

REDACTED 1 Request IR-8: 2 3 Reference: 2025 Annual Report, Exhibit N-1, p. 5/9 – Schedule Deviations (Cause Code 5, 4 "PDN") and Off-schedule Details, p. 3/3 5 6 (a) Please describe in detail the methodology used to calculate the $706,609...

AI summary The text outlines a request (IR-8) for detailed information on the methodology used to calculate a $706,609 system cost attributed to PDN deviations in 2025, the nature of the figure, and the allocation of costs between FAM customers and PHP. It also requests an explanation of column headings and a footnote, and a total of shaded columns.

REDACTED 1 incentive for PHP to follow dispatch and retain its 25 percent share of the ADC Load 23 requires a full year of costs to serve PHP's load to compare against the CBL Energy Charge. 24 Historically, NS Power would report quarterly...

AI summary The document discusses the impact of a cyber incident on the reporting of indicative amounts in the Quarterly FAM Reports and the calculation of the ELIADC Tariff. It also notes that Cause Code data is not used in the ELIADC Tariff performance assessment and that comparisons between 2025 and previous years are complicated due to changes in dispatch methods.

NON-CONFIDENTIAL 1 set out in the ELIADC Tariff, to account for benefits and costs by cause code, and report 2 its findings to the FAM SWG." [emphasis added]. 3 4 NS Power reported its findings soon after, at the Q1 2025 FAM Small Working...

AI summary The text discusses the ELIADC Tariff and the findings related to the FAM SWG meeting in Q1 2025, where NS Power confirmed that a proposed action was not feasible and that recommendation XV-1 remains open for further review by Bates White.

10 Recommendation XV-3 11 12 However, in its efforts to provide useful and meaningful quantifications, NS Power 13 continued to pursue and, in the 2025 ELIADC Tariff Annual Report, has provided more 14 data and metrics and has additionally...

AI summary NS Power has been working to provide more detailed quantifications of the benefits of ADC load shifting in the 2025 ELIADC Tariff Annual Report. Due to a cyber incident, modelling for 2025 was paused, but data collection and model testing have resumed following the restoration of PortOps. NS Power plans to present the modelling outputs by Q2 2025.

14 Year 2020 2021 2022 2023 2024 2025 ELIADC Tariff Energy Sales (GWh) 875 966 957 670 766 691 Revenue ($M) 55.5 60.3 170.1 28.31 77.7 70.9 Revenue (ȼ per kWh) 6.3 6.2 17.8 4.2 10.1 10.3 Large Industrial Tariff Energy Sales (GWh) 726 759 7...

AI summary The 2022 ELIADC Tariff Annual Report and change in methodology for calculating the cost to serve PHP load was approved by the Board on July 5, 2023 (M11021), resulting in a $50.9 million adjustment to 2022 fuel recovery for the ELIADC Tariff.

1 Request IR-1: 16 17 18 19 20 21 22 23 Despite challenges resulting from NS Power's cyber incident, the Nova Scotia Power System Operator (NSPSO), NS Power Energy Marketing team, and PHP adapted and worked collaboratively for the benefit...

AI summary The text references challenges caused by a cyber incident affecting NS Power's operations under the ELIADC protocol, asks if these challenges persist in 2026, and requests confirmation on fuel pricing assumptions used in the CBL forecast. It also references a 2025 report and asks for specific matter and exhibit numbers in the response.

Submissions In its submission, Bates White noted that Port Hawkesbury Paper's load in 2025 was 690,763 MWh, which was about 15% below the consumption forecast by Port Hawkesbury Paper. Bates White also noted the positive ADC differential i...

AI summary Bates White reviewed Port Hawkesbury Paper's 2025 load and ADC differential, noting discrepancies between forecast and actual consumption. NS Power charges 75% of incremental system costs from off-schedule events, which are netted against ADC differential accruals. Bates White raised concerns about the tariff's performance and NS Power's refund policy for incremental costs. FAM Audit compliance was also mentioned.

Reply Submissions Port Hawkesbury Paper, in its reply submissions, requested that the 2025 ELIADC tariff report be approved as filed. Port Hawkesbury Paper noted there is no cause for concern regarding the Cause Code 5 hours since the 95 h...

AI summary Port Hawkesbury Paper requests approval of the 2025 ELIADC tariff report, noting that the low Cause Code 5 hours and issues related to load forecast revisions and interest on post-year-end balances should be addressed in the new tariff proceeding (M12661). NS Power defends the ELIADC tariff, stating that market conditions, not design flaws, caused the variance between forecast and actual results and that the tariff is an annual settlement mechanism.

Board Findings In its decision in Matter M09420, the Board directed NS Power to file annual assessment results as required under the terms of the ELIADC tariff. Specifically, the approved tariff states: Annually, NS Power shall report to t...

AI summary The Board accepts the ELIADC results from NS Power's 2025 Annual Report but reiterates concerns about delays in providing enhanced quantification of load shifting benefits and costs. NS Power is directed to provide a firm date for analysis delivery by September 15, 2026, and to improve reporting transparency.

NSPI has now confirmed: After investigation and internal discussions, NS Power has concluded that it is unable to develop an hourly cost and benefit analysis of all individual Cause Codes. Modeling and isolating the costs and benefits of i...

AI summary NSPI has confirmed it cannot develop an hourly cost and benefit analysis for individual Cause Codes due to limitations in the PortOps software, which leads to conflicting dispatch results and low precision tolerance. The Board is being asked to explain prior assessments, why implementation barriers were not raised earlier, and whether NSPI plans to seek relief or propose alternatives.

Request IR-3: - Please refer to PDF page 2, where NSPI states: "PHP will be billed the cost to serve - above the amount that was collected on a monthly basis, in addition to the $4/MWh and - other applicable fixed costs, to ensure complian...

AI summary The document requests clarification on the adjustment to be added/credited to PHP's upcoming bill related to the 2025 ELIADC results, including supporting calculations and the definition of 'other applicable fixed costs.'

otia Power System Operator ("NSPSO")-induced increases in PHP's load. 12 Cause Code 2 hours are NSPSO-induced decreases in PHP's load. 13 Cause Code 4 hours are hours in which PHP and NSPI agree to a new dispatch. 14 2025 Annual Report, Ta...

AI summary The analysis discusses NSPI's ELIADC Tariff performance, noting that the $4.4 million in 2025 remains below the $10 million/year expected benefit. It highlights concerns regarding Cause Code 5 hours and NSPI's refunding of 75% of incremental costs. Additionally, the 2025 ELIADC Annual Report is referenced, along with ongoing FAM Audit efforts by Bates White.

he 2024-2025 FAM Audit, which includes ELIADC results from 2025. We will address 2025 ELIADC results and NSPI's efforts to comply with prior FAM Audit recommendations in our upcoming FAM Audit report. 18 This figure is calculated as the su...

AI summary The text references the 2024-2025 FAM Audit, which includes ELIADC results from 2025 and NSPI's compliance with prior audit recommendations. It also cites financial calculations related to PHP's payments and references an NSPI tariff application and 2025 Annual Report data.

the load of the Company's largest customer is integrated into the utility's system dispatch in a manner which benefits the ELIADC Tariff customer and all other customers, is a significant achievement. That the ELIADC Tariff provides financ...

AI summary The ELIADC Tariff has delivered financial and system benefits to all customers, though financial benefits are less than originally forecast due to international market changes. System benefits are acknowledged but lack concrete evidence, and the tariff has helped insulate other customers from increased fuel and power costs, despite PHP bearing higher costs than forecast.

Submissions In its submission, Bates White noted that Port Hawkesbury Paper's load in 2025 was 690,763 MWh, which was about 15% below the consumption forecast by Port Hawkesbury Paper. Bates White also noted the positive ADC differential i...

AI summary Bates White highlighted discrepancies in Port Hawkesbury Paper's load forecast and the financial implications of off-schedule events under the ELIADC tariff. It noted that NS Power only refunds 75% of incremental costs to other customers, raising concerns about the fairness of the arrangement. Bates White also mentioned ongoing FAM Audit efforts by NS Power.

Reply Submissions Port Hawkesbury Paper, in its reply submissions, requested that the 2025 ELIADC tariff report be approved as filed. Port Hawkesbury Paper noted there is no cause for concern regarding the Cause Code 5 hours since the 95 h...

AI summary Port Hawkesbury Paper requested approval of the 2025 ELIADC tariff report, noting that concerns about Cause Code 5 hours and forecast accuracy should be addressed in a new tariff proceeding. NS Power defended the ELIADC tariff's benefits and attributed forecast variances to market conditions, not design flaws. It also addressed concerns about interest on post-year-end balances and the need for detailed monthly reporting.

Board Findings In its decision in Matter M09420, the Board directed NS Power to file annual assessment results as required under the terms of the ELIADC tariff. Specifically, the approved tariff states: Annually, NS Power shall report to t...

AI summary The Board accepted NS Power's 2025 ELIADC Annual Report despite late submission, noting concerns over delays and lack of enhanced quantification of load shifting benefits. NS Power cited a cyber security breach as a reason for delays and was directed to provide a firm deadline for completing the analysis by September 15, 2026. The Board also requested improved reporting transparency.