Topic:"Fuel Cost Adjustment" in M13042

-and -lumber [-industries.html](https://www.canada.ca/en/treasury-board-secretariat/news/2025/12/minister-ali-announces-new-measures-to-protect-and-transform-canadas-steel-and-lumber-industries.html) Given the small size of the Nova Scotia...

AI summary The text discusses the impact of tariffs on renewable energy projects in Nova Scotia, noting that the small market size limits developers' bargaining power. It outlines provisions in the GCPPPA that allow for adjustments to energy rates if tariffs increase capital costs by more than 7.5%, with resolution through an independent expert if needed. Similar measures are noted in Ontario and British Columbia.

of Credit Exhibit ["E"](#page-94-0) - Form of Guarantee Exhibit ["F"](#page-100-0) – Not Used Exhibit ["G"](#page-101-0) – Not Used Exhibit ["H"](#page-102-0) - Calculation of Adjusted Energy Rate Capitalized terms used herein but not othe...

AI summary The document includes exhibits related to credit, a form of guarantee, and a calculation of the adjusted energy rate. It references capitalized terms defined in the General Terms and Conditions and includes a signature page.

3.3 Reporting of Seller and Forecasting Facility Output (a) NSPI shall cause a third-party vendor to provide meteorological forecasting services for the Facility. As of the Effective Date, NSPI will cause the third-party vendor that provid...

AI summary NSPI is required to provide meteorological forecasting services for the Facility through a third-party vendor, with specific terms for service fees and administrative charges. The Seller will receive these forecast details and be credited for the fees incurred by NSPI.

5.4 Metering All Facility revenue class metering equipment shall be routinely tested by NSPI. At any time, either Party may request a test of the accuracy of the metering equipment at its own expense. The results of meter calibrations or t...

AI summary The text outlines procedures for testing and maintaining revenue class metering equipment, ensuring accuracy and compliance with standards. NSPI is responsible for testing, and financial adjustments may be required if meter accuracy exceeds 2% variance. Both parties have rights to be represented during meter sealing/unsealing and to request tests.

where: - 1. "ER" is the indexed and adjusted Energy Rate; - 2. "ERED" is the initial Energy Rate as specified in item [4](#page-3-8) of the Commercial Terms; - 3. ERCOD is the escalated Energy Rate at COD. - 4. "CPIy" is the CPI for the mo...

AI summary The document defines key terms related to energy rates and their adjustment mechanisms, including indexed and adjusted Energy Rate (ER), initial Energy Rate (ERED), and escalated Energy Rate at COD (ERCOD). It also establishes that the Energy Rate cannot fall below the initial Energy Rate after the Effective Date.

APPENDIX D - SUMMARIZED STAKEHOLDER FEEDBACK ON PPA DRAFT #1 PPA Section Question Comment Response impact of changes to federal laws be incorporated. This could come in the way of pricing relief / pricing adjustments for such changes as ne...

AI summary Stakeholders recommend incorporating contractual mechanisms in the PPA to address risks from changes in federal laws, such as adjustments to ITCs and tariffs, which impact construction costs and material pricing. They also highlight the need for open-book price adjustment mechanisms to manage these risks fairly.

Inflation Adjustments The application includes a provision for CPI escalation for 20% of the Energy Rate annually after the commercial operation date and indicates this represents the O&M costs over the term of the PPA. The application not...

AI summary The application proposes a 20% annual CPI escalation for 20% of the Energy Rate to account for O&M costs over the PPA term. While this may be reasonable, there is no explanation provided on how the 20% figure was derived or how it compares to other jurisdictions.

Section 13.1 – Change in Law The Change in Law provision excludes protection in respect to a change in FEDERAL law. The requests to include changes in federal law were made by CANREA, individual proponents and the Consumer Advocate (see CA...

AI summary Section 13.1 discusses the exclusion of federal law changes in the Change in Law provision, highlighting how the previous PA's rejection of including federal law changes led to delays and financial consequences for ratepayers due to project cancellations and increased costs from federal policy changes.

S UMMARY OF RECOMMENDATIONS For the reasons set out above, the IG recommends that the Board direct the PA to provide, or that the PA otherwise provide in its reply, the following before the GCP PPA is approved: - An analysis of the expecte...

AI summary The IG recommends that the Board require the PA to provide analyses on ratepayer costs related to CPI indexation, early completion incentives, curtailment compensation, and jurisdictional security data before approving the GCP PPA. These analyses are intended to ensure cost-effectiveness and protect ratepayers.

1. Interconnection and n etwork u pgrade cost uncertainty (multiple PPA sections) Recommendation: Incorporate either: an Energy Rate adjustment mechanism tied to actual Interconnection and Network Upgrade costs identified in the Facilities...

AI summary The document discusses the financial risks faced by the Seller under the PPA due to discrepancies between Feasibility Study and Facilities Study interconnection and network upgrade costs. It recommends either an Energy Rate adjustment mechanism or a no-fault termination right for the Seller to address this imbalance and ensure commercial reasonableness.

1 The previous Green Choice PPA had a Pre-COD Amount of $125,000/MW and post-COD Amount of $20,000/MW (Board order for M11455, dated June 6, 2024) Summary Stakeholder Comments Procurement Administrator Response 14. Exhibit H Calculation of...

AI summary The document discusses adjustments to the Green Choice PPA, including the Pre-COD and post-COD amounts, and stakeholder comments on CPI escalation rates and CIB/SREP funding availability. The Procurement Administrator responds by stating no material delays are expected and provides references to support the 20% CPI escalation rate.

21. Exhibit H Calculation of the Adjusted Price IG requests an analysis of the expected ratepayer cost for extending post -COD CPI indexation to the full 25 year term. They also require justification for escalating 20% of the Energy Rate,...

AI summary The document discusses the impact of extending post-COD CPI indexation to the full 25-year term of a PPA, arguing that it would lead to greater rate stability and reduce inflation risk for sellers. It also suggests that allowing CPI escalation could lower near-term energy rates and reduce the risk that proponents price into their submitted energy rates.

11 https://www.novascotia.ca/sites/default/files/documents/1-3582/nova-scotia-clean-power-plan-presentation-en.pdf ratepayers to development -stage project abandonment. Ontario LT2(e -1) - $35,000/MW subject to a minimum of $500,000 and ma...

AI summary The text discusses performance security requirements for power projects in various jurisdictions, including Ontario, BC Hydro, and Quebec. It also outlines the removal of certain provisions in the PPA related to congestion management and network upgrade reimbursement, emphasizing the need for infrastructure investments that deliver clear system-wide value and represent the most economical long-term solution.

5.4 Metering All Facility revenue class metering equipment shall be routinely tested by NSPI. At any time, either Party may request a test of the accuracy of the metering equipment at its own expense. The results of meter calibrations or t...

AI summary This section outlines the procedures for testing and maintaining revenue class metering equipment, including requirements for calibration, financial adjustments for inaccuracies, and notification protocols between the Parties. NSPI is responsible for ensuring accuracy, and both Parties have rights to be involved in meter sealing and testing.

3.3 Reporting of Seller and Forecasting Facility Output (a) NSPI shall cause a third-party vendor to provide meteorological forecasting services for the Facility. As of the Effective Date, NSPI will cause the third-party vendor that provid...

AI summary NSPI is required to provide meteorological forecasting services for the Facility through a third-party vendor, with specific terms for service fees and administrative charges. The Seller will be credited with these fees, and the service is subject to non-disclosure restrictions.

5.4 Metering All Facility revenue class metering equipment shall be routinely tested by NSPI. At any time, either Party may request a test of the accuracy of the metering equipment at its own expense. The results of meter calibrations or t...

AI summary The section outlines procedures for testing and maintaining revenue class metering equipment by NSPI. It specifies that either party may request tests, and outlines the process for handling inaccuracies, including financial adjustments if meter accuracy exceeds a 2% variance.