N-1Report
10 passages
(Multeese) in its SRMC memorandum dated August 27, 2010. The changes were to include the revenue adjustment mechanisms of the Demand Side Management (DSM) Cost Recovery Rider (DCRR) and the Fuel Adjustment Mechanism (FAM) Actual Adjustment...
AI summary The document outlines a series of regulatory actions and recommendations related to the Short Run Marginal Cost (SRMC) test, including the inclusion of revenue adjustment mechanisms like the DSM Cost Recovery Rider (DCRR) and Fuel Adjustment Mechanism (FAM). The NSEB has directed NS Power to review and adjust the SRMC test approach, excluding certain rates and incorporating graphical representations of unit revenues.
than the prospective test year costs. For the above reasons, the annual unit revenues paid by customers Changes in actual unit short-run marginal costs are subject to different dynamics than those of actual unit average cost of service. In...
AI summary The text examines discrepancies between average cost-based rates and actual costs, noting that short-run marginal cost dynamics differ from average costs. It highlights billing determinant variations and exceptions like FAM AA/BA riders and annually adjusted rates (GRLF, Shore Power) subject to SRMC testing, emphasizing long-term cost variability and rate framework exceptions.
Note 2: There were six TVP Tariffs, which came into effect in June 22, 2021 (M09777) and one additional TVP Tariff (MURB Tariff) which came into effect on November 1, 2024 (M11822). The SRMC test did not include the six TVP Tariffs in the...
AI summary The text discusses the implementation of six TVP Tariffs in 2021 and an additional MURB Tariff in 2024, and explains why these were not included in the SRMC test until 2025 due to incomplete data. It also references SRMC test results based on unit revenue with FAM adjustments and highlights volatility in the differential between average unit revenues and marginal costs.
Figure 4: Trends in Annual Energy Requirement, Unit Revenues and Marginal Costs 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 % Change in 2025 Total System Requirement (GWh) Net of LRT/ELIADC 9,837 9,970 10,252 10,342 9,884 9,940 10,17...
AI summary Figure 4 shows trends in annual energy requirement, unit revenues, and marginal costs from 2016 to 2025. It highlights fluctuations in average marginal costs, unit revenues, and variances between them, with notable changes in fuel adjustment mechanisms and system fuel costs over time.
6 Broken Down by Fuel and Non-Fuel Components 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 Year Average Average MC adj for Line losses ($/MWh) Year over Year % Changes $45.35 -7% $55.95 23% $66.43 19% $56.11 -16% $45.97 -18% $59.31...
AI summary The table presents average marginal cost adjustments for line losses and unit revenues, including FAM-related costs and fixed costs, from 2016 to 2025. It highlights year-over-year changes and variance from the average marginal cost adjusted for line losses, showing fluctuations in costs and revenue over time.
functional areas of generation, transmission, distribution, and retail. The marginal generation costs used by the Company in the SRMC test reflect; however, only the marginal fuel and generation, operation and maintenance cost. They do not...
AI summary The document discusses the marginal generation costs used by the Company in the SRMC test, highlighting that these costs do not include fixed costs from generation, transmission, distribution, or retail. It notes that marginal costs have fluctuated due to generation mix changes, commodity prices, and load increases, with a significant increase in 2025.
DATE FILED: May 29, 2026 Page 19 of 26 1 3.4 Riders 2 3 Starting in 2010, the fuel cost portion of the embedded cost rates has been subject to fuel cost 4 adjustments (FAM AA and FAM BA).12 5 6 Beginning in 2010, the DSM Cost Recovery Ride...
AI summary The document discusses the history and application of various rate riders, including the Fuel Adjustment Mechanism (FAM), the Demand Side Management Cost Recovery Rider (DCRR), and the Storm Cost Recovery Rider (SCRR). It also references an interim cost assessment for the Maritime Link and the SRMC test results for 2025 and 2026.
13 4.1 Variable Generation Costs 14 - The 2025 actual unit variable generation fuel cost[14](#page-20-3) 15 of the above-the-line rate classes was 24.7 - percent above the capped base cost of fuel[15](#page-20-4) 16 approved for use in 202...
AI summary The 2025 actual unit variable generation fuel cost for above-the-line rate classes was 24.7% above the 2024 capped base cost of fuel and 10.6% above the 2024 test year base cost of fuel. A figure is referenced to compare actual and test year unit variable costs.
20 Figure 7: Actual and Test year Unit Variable Generation Costs 2025 Actual 2024 Test Year FAM Classes Unit Variable Generation fuel cost Smoothed Base cost of fuel Unsmoothed Base cost of fuel Net Fuel and Purchased Power (Millions) $997...
AI summary Figure 7 compares actual and test year unit variable generation costs for 2025 and 2024, showing differences in fuel costs and sales. The data highlights a 24.7% increase in unit variable generation costs from the 2024 test year to 2025 actuals, with corresponding changes in fuel and purchased power costs.
Figure 1.2 2025 Base Cost Rate Revenues with DSM, SCRR and 2025 FAM Amounts (Based on 2025 average annual marginal cost of 9.048 cents/kWh) Short Run Marginal Cost Test Inefficient Usage Estimate Sales Price Elasticity-of- Inefficient Usag...
AI summary Figure 1.2 presents 2025 base cost rate revenues with DSM, SCRR, and FAM amounts. It includes data on residential and small general usage, time-of-day pricing, and critical peak pricing, showing variations in costs and sales across different usage periods.
N-2Report - Refiled
10 passages
(Multeese) in its SRMC memorandum dated August 27, 2010. The changes were to include the revenue adjustment mechanisms of the Demand Side Management (DSM) Cost Recovery Rider (DCRR) and the Fuel Adjustment Mechanism (FAM) Actual Adjustment...
AI summary The document outlines a series of actions taken by the Nova Scotia Energy Board regarding the Short Run Marginal Cost (SRMC) test, including the suspension of SRMC comparisons with certain tariffs, the exclusion of specific rates from the SRMC test, and the review of variance between average unit revenues and marginal costs. NS Power has provided ongoing analysis and support for the recommended approach.
Note 2: There were six TVP Tariffs, which came into effect in June 22, 2021 (M09777) and one additional TVP Tariff (MURB Tariff) which came into effect on November 1, 2024 (M11822). The SRMC test did not include the six TVP Tariffs in the...
AI summary The document discusses the implementation of six TVP Tariffs in 2021 and an additional MURB Tariff in 2024, noting that the SRMC test excluded these tariffs due to incomplete data. It also references the SRMC test results, which are based on unit revenue with FAM adjustments and highlights volatility between average unit revenues and marginal costs.
Figure 4: Trends in Annual Energy Requirement, Unit Revenues and Marginal Costs 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 % Change in 2025 Total System Requirement (GWh) Net of LRT/ELIADC 9,837 9,970 10,252 10,342 9,884 9,940 10,17...
AI summary Figure 4 presents trends in annual energy requirements, unit revenues, and marginal costs from 2016 to 2025. It highlights fluctuations in average marginal costs, unit revenues, and variance between unit revenues and marginal costs. The data shows that unit revenues have generally increased over time, while marginal costs have fluctuated significantly.
6 Broken Down by Fuel and Non-Fuel Components 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 Year Average Average MC adj for Line losses ($/MWh) $45.35 $55.95 $66.43 $56.11 $45.97 $59.31 $128.55 $73.02 $84.05 $94.49 $70.92 Year over...
AI summary The table presents data on average MC adj for line losses, FAM-related costs, and fixed costs from 2016 to 2025, showing fluctuations in values and year-over-year percentage changes. It also includes variance percentages from the average MC adj for line losses, indicating variations in cost components over time.
calendar year. This is because the unit revenues are reflective of total costs of service of the four functional areas of generation, transmission, distribution, and retail. The marginal generation costs used by the Company in the SRMC tes...
AI summary This section explains the relationship between unit revenues and marginal generation costs, noting that marginal costs typically exceed average system fuel costs but not overall unit revenues. It also highlights changes in marginal costs from 2022 to 2025, attributed to shifts in generation mix, commodity pricing, and load increases.
al gas pricing which made it more economical to burn Heavy Fuel Oil (HFO) over natural gas. 3.3 Base Cost Rates The 2025 base cost rates remained the same as in 2024.
AI summary The text discusses the 2025 base cost rates remaining unchanged from 2024 and mentions the impact of gas pricing on the choice between burning Heavy Fuel Oil (HFO) and natural gas.
DATE FILED: June 5, 2026 Page 19 of 26 1 3.4 Riders 2 3 Starting in 2010, the fuel cost portion of the embedded cost rates has been subject to fuel cost 4 adjustments (FAM AA and FAM BA).12 5 6 Beginning in 2010, the DSM Cost Recovery Ride...
AI summary The document discusses the history and application of various rate riders, including the Fuel Adjustment Mechanism (FAM) and the Demand Side Management (DSM) Cost Recovery Rider (DCRR), and their impact on composite rates. It also references a Board Order related to refunds for the Maritime Link project and mentions the Electricity Efficiency and Conservation Restructuring (2014) Act.
13 4.1 Variable Generation Costs 14 - The 2025 actual unit variable generation fuel cost[14](#page-20-3) 15 of the above-the-line rate classes was 24.7 - percent above the capped base cost of fuel[15](#page-20-4) 16 approved for use in 202...
AI summary The 2025 actual unit variable generation fuel cost for above-the-line rate classes was 24.7% above the 2024 capped base cost and 10.6% above the 2024 test year base cost, as shown in Figure 7.
20 Figure 7: Actual and Test year Unit Variable Generation Costs 2025 Actual 2024 Test Year FAM Classes Unit Variable Generation fuel cost Smoothed Base cost of fuel Unsmoothed Base cost of fuel Net Fuel and Purchased Power (Millions) $997...
AI summary Figure 7 compares actual and test year unit variable generation costs for 2025 and 2024. It shows the net fuel and purchased power costs, sales in GWh, and unit variable costs in cents per kWh, highlighting changes in costs between the actual and test years.
Figure 1.2 2025 Base Cost Rate Revenues with DSM, SCRR and 2025 FAM Amounts Short Run Marginal Cost Test Inefficient Usage Estimate Sales Price Elasticity-of- Inefficient Usage Distribution Line Losses as a % of Total Ave. Line Unit Revenu...
AI summary Figure 1.2 presents 2025 base cost rate revenues with considerations for DSM, SCRR, and FAM. It includes data on distribution line losses, sales price elasticity, and inefficient usage estimates for various residential classes and time-of-use pricing structures.