Topic:"Fuel Cost Adjustment" in M13133

16 2.2 Fuel and Purchased Power - 18 The Company is proposing to securitize $214.5 million of fuel and purchased power costs. This - 19 amount consists of $149.6 million in forecast under-recovered fuel and purchased power costs as

AI summary The Company is proposing to securitize $214.5 million in fuel and purchased power costs, which includes $149.6 million in forecast under-recovered costs. This initiative aims to address financial shortfalls related to fuel and power expenses.

NS Power Application for Financing Order to Reduce Costs for Customers Redacted 1 at September 30, 2026, along with a $64.9 million prepayment towards future fuel and purchased 2 power costs. 3 - 4 The forecast September 30, 2026 under-rec...

AI summary NS Power is applying for a financing order to address a forecast under-recovery of $149.6 million in fuel and purchased power costs by September 30, 2026. A $64.9 million prepayment is proposed to help manage fuel cost volatility and support a more efficient securitization issuance of $1 billion.

16 Figure 9: Annual Reconciliation Timeline Year 1 Year 2 Year 3 and Beyond Forecast Collection of Securitized Surcharge in Year 1 - [SS] Forecast collection of Securitized Surcharge in Year 2 – [SS] Forecast collection of Securitized Surc...

AI summary The document outlines a timeline for the annual reconciliation of securitized surcharges, detailing forecast collection and over/under-collection across multiple years. It references the Balancing Adjustment (BA) mechanism for reconciliation purposes, as outlined in section 3(3)(f) of the relevant legislation.

1 1.0 INTRODUCTION - 2 Nova Scotia Power Incorporated (NS Power, Company) is subject to a Fuel Adjustment - 3 Mechanism (FAM), which is intended to recover the actual costs of fuel and purchased power. The - 4 Base Cost of Fuel (BCF) each...

AI summary NS Power is subject to a Fuel Adjustment Mechanism (FAM) to recover actual fuel and purchased power costs. The Base Cost of Fuel (BCF) is forecasted annually, and NS Power requests a rider from the NSEB to true-up costs, including balancing adjustments, from previous years.

10 2.0 AA/BA BALANCE AND RATE IMPACTS - 11 NS Power will have an outstanding FAM AA/BA balance of $149.6 million as of September 30, - 12 2026. This balance comprises actual data from October 1, 2025 to August 31, 2026, and forecast - 13 d...

AI summary NS Power has an outstanding FAM AA/BA balance of $149.6 million as of September 30, 2026, which includes actual and forecast data. The balance is expected to impact class revenues if fully recovered in 2027, as illustrated in Figure 1.

8 2.1 Proposed Solution to Address FAM AA/BA Balance 9 NS Power is proposing to securitize the outstanding FAM AA/BA balance and recover the 10 associated costs over a 30-year period, rather than recovering the full balance in 2027. The 11...

AI summary NS Power proposes to securitize the outstanding FAM AA/BA balance and recover the associated costs over a 30-year period instead of in 2027. This approach includes both the current unrecovered balance and forecasted under-recovery to provide additional protection.

2026 Securitization Rider Application Appendix C Page 6 of 14 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Appendix C: 2027 FAM AA/BA - 1 As shown in [Figure 3](#page-58-1) , the 2027 AA amount is an under-recovery of $80.5 million and the...

AI summary The 2026 Securitization Rider Application Appendix C discusses an under-recovery of $80.5 million for the 2027 Affordable Access (AA) amount and $69.1 million for the 2027 Bill Adjustment (BA) amount, totaling $149.6 million in under-recovery.

5 Figure 3 – 2027 AA and BA Amounts Item Amount ($ Million)\ 1 2027 AA amount 2 October 2025 - December 2025 BCF (Over)/Under Recovery of Fuel Costs 35.2 3 October 2025 - December 2025 BCF Interest 2.0 4 January 2026 – September 2026 BCF (...

AI summary The document presents Figure 3, which outlines the 2027 Affordable Access (AA) and Bill Adjustment (BA) amounts, including fuel cost over/under recoveries and interest for specific periods, as well as balances carried forward from 2026. The total 2027 AA and BA amounts are calculated to be $149.6 million.

8 4.1.1 2027 AA - 9 The 2027 AA calculation uses actual fuel cost and revenue data from October 1, 2025 to August - 10 31, 2026, and forecast data for the month of September 2026. The 2027 AA amount reflects an - 11 under-recovery of $80.5...

AI summary The 2027 AA calculation reflects an under-recovery of $80.5 million, including interest, based on actual fuel costs from October 2025 to September 2026. This includes $77.7 million in fuel cost under-recovery and $2.8 million in interest.

2026 Securitization Rider Application Appendix C Page 7 of 14 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Appendix C: 2027 FAM AA/BA - 1 The details of the October 1, 2025 to September 30, 2026 AA amount are shown in [Figure 4](#page-59-0)...

AI summary This section of the 2026 Securitization Rider Application provides details about the Affordable Access/Bill Adjustment (AA/BA) for the period October 1, 2025, to September 30, 2026. It references figures and reports that outline fluctuations in AA by fuel type, though specific details are redacted as confidential.

6 Figure 4 – Breakdown of 2027 AA Amount Item Amount ($ Million)\ 1 Total Fuel and Purchased Power 1,021.8 2 Fuel Adjustments (Revenue from Below-the-Line customers) (68.6) 3 Total Fuel and Purchased Power Costs 953.2 4 FAM Revenue (875.5)...

AI summary Figure 4 outlines the breakdown of the 2027 Affordable Access/Bill Adjustment (AA/BA) amount, showing total fuel and purchased power costs, fuel adjustments, and under-recovery of fuel costs, resulting in a total AA amount of $80.5 million.

8 - 9 Item 1 in [Figure 4](#page-59-0) is the aggregate fuel costs comprises actual results from October 1, 2025 - 10 through August 31, 2026, and forecast balances for the month of September 2026 which can be - 11 found in Attachment 1 ,...

AI summary The text outlines the components of Figure 4, which includes aggregate fuel costs, fuel adjustments, and total fuel costs recovered through the BCF and rider described in NSEB M11902, with references to specific schedules and dates.

2026 Securitization Rider Application Appendix C Page 8 of 14 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Appendix C: 2027 FAM AA/BA - 1 Item 5 in [Figure 4](#page-59-0) is the actual (over)/under-recovery of the BCF for October 1, 2025 to...

AI summary This section of the 2026 Securitization Rider Application Appendix C discusses the actual over/under-recovery of the Billing Cost Factor (BCF) and accumulated interest on the balance for the period from October 1, 2025, to September 30, 2026. These details are referenced in Attachment 1, Schedule 1.

7 4.1.2 2027 BA - 8 The 2027 BA under-recovery amount of $69.10 million represents the remaining FAM balances - 9 as of the end of September 30, 2026, along with associated interest. - 10 The breakdown of the 2026 BA amount and the adjustm...

AI summary The 2027 BA under-recovery amount of $69.10 million includes remaining FAM balances as of September 30, 2026, along with associated interest. The 2026 BA amount and adjustment to the AA balance are detailed in Figure 5.

13 Figure 5 – Breakdown of 2027 BA Amount Item Amount ($ Million) 1 2026 AA Beginning Amount (September 2025 balance) 128.7 2 October-December 2025 BCF under-collection including interest 37.2 3 2026 AA Balance as of December 31, 2025 165....

AI summary Figure 5 presents a breakdown of the 2027 BA (Bill Adjustment) amount, detailing various components such as the 2026 AA (Affordable Access) beginning amount, BCF (Billing Cost Factor) under-collection, and interest calculations, leading to the final 2027 BA amount of $69.1 million.

2026 Securitization Rider Application Appendix C Page 9 of 14 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Appendix C: 2027 FAM AA/BA 1 Item 1 in [Figure 5](#page-60-1) is September 30, 2025 BCF Balance amount with interest and can be found...

AI summary This appendix provides detailed breakdowns of the 2027 Fuel Adjustment Mechanism (FAM) Affordable Access/Bill Adjustment (AA/BA) rider, including balances, under-recoveries, interest calculations, and collections for specific time periods, referencing Attachment 1 for data.

2026 Securitization Rider Application Appendix C Page 10 of 14 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Appendix C: 2027 FAM AA/BA - 1 Item 11 in [Figure 5](#page-60-1) is the 2026 actual beginning of year BA amount, and can be found in...

AI summary This section of the 2026 Securitization Rider Application Appendix C outlines the calculation of the 2027 Fuel Adjustment Mechanism (FAM) Affordable Access/Bill Adjustment (AA/BA) amounts. It references specific line items in Attachment 1 and explains how various components, including interest and balances, are aggregated to determine the final 2027 BA amount.

1 4.1.3 2027 FAM AA and BA by Customer class - 2 [Figure 6](#page-63-2) below provides the AA and BA amounts broken down by customer class up to September - 3 30, 2026. 4

AI summary This section discusses the breakdown of Affordable Access (AA) and Bill Adjustment (BA) amounts under the 2027 Fuel Adjustment Mechanism (FAM) by customer class, as illustrated in Figure 6 up to September 30, 2026.

9 Customer class 10 [Figure 7](#page-64-1) below presents the proposed collection of the 2027 revenue requirement associated with 11 the securitization of Fuel and Purchased Power balance. The total 2027 revenue requirement of 12 approxima...

AI summary The text discusses the proposed 2027 revenue requirement of approximately $14.1 million related to the securitization of Fuel and Purchased Power balance, including both the existing balance as of September 30, 2026, and the forecasted balance expected from October 1, 2026, to December 31, 2027.

5 5.0 COST OF SERVICE METHODOLOGY - 6 The 2027 FAM AA and BA amounts are allocated to each customer class in accordance with the - 7 NSEB-approved Cost of Service (COS) methodology approved in the 2026-2027 GRA proceeding - 8 (M12451). Det...

AI summary The 2027 Fuel Adjustment Mechanism (FAM) AA and BA amounts are allocated to customer classes using the NSEB-approved Cost of Service (COS) methodology from the 2026-2027 GRA proceeding. Energy requirements for AA calculations include actual sales from October 2025 to August 2026 and forecast sales for September 2026, adjusted for line losses. Demand-related FAM costs are based on three coincident peaks from December 2025 to February 2026.

2026 Securitization Rider Application Appendix C Page 13 of 14 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Appendix C: 2027 FAM AA/BA - 1 For the 2027 AA and BA calculations, the 2026 revenue-to-cost (R/C) ratio is applied to customer - 2...

AI summary This section outlines the methodology for calculating the 2027 Fuel Adjustment Mechanism (FAM) Affordable Access/Bill Adjustment (AA/BA), including the application of the 2026 revenue-to-cost ratio, allocation of fuel costs by customer class, deduction of base rate recoveries, and apportionment of interest adjustments and non-fuel-related costs based on rate base shares.

19 6.0 OATT MEUS FAM AA/BA BALANCE AND PROPOSED RECOVERY - 20 As shown in [Figure 8](#page-65-1) below, the four OATT MEUs are projected to owe NS Power approximately - 21 $6.9 million as of September 30, 2026. 22

AI summary The document discusses the projected balance owed by the four OATT MEUs to NS Power, estimating approximately $6.9 million as of September 30, 2026.

23 Figure 8 – OATT MEUs FAM AA/BA Balance as of September 30, 2026 OATT MEUs FAM AA FAM BA Total ($ Million) Antigonish 1.1 2.7 3.8 Berwick 0.5 1.2 1.7 Mahone Bay 0.2 0.6 0.8 Riverport 0.2 0.4 0.6 OATT MEUs Total 2.0 4.8 6.9 24 \ Figures p...

AI summary Figure 8 presents the balance of the OATT MEUs FAM AA/BA as of September 30, 2026, showing the distribution across various locations in Nova Scotia. The table lists the FAM AA, FAM BA, and total balances for each location, along with the overall total.

2026 Securitization Rider Application Appendix C Page 14 of 14 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Appendix C: 2027 FAM AA/BA - 1 NS Power is proposing to securitize the outstanding OATT MEUs FAM AA/BA balance and - 2 recover the a...

AI summary NS Power is proposing to securitize the outstanding OATT MEUs FAM AA/BA balance and recover the associated costs over a 30-year period instead of in 2027. The 2027 revenue requirement includes both the balance as of September 30, 2026, and the forecast balance expected through December 31, 2027.

REDACTED 2026 Securitization Rider Application Appendix C Attachment 2 Page 1 of 8 REDACTED (CONFIDENTIAL INFORMATION REMOVED) FAM Rate Classes (ATL) Oct 2025-Sept 2026 GWh Energy Requirement Actual Fuel Costs Recovered Fuel Costs Recovere...

AI summary The table presents detailed financial data for the Fuel Adjustment Mechanism (FAM) across various rate classes in Nova Scotia for the period October 2025 to September 2026. It includes figures for energy requirements, actual and recovered fuel costs, variance, and the FAM AA rider in cents per kWh for 2027.

Currency: CND Account Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 Total Fuel & PP (Domestic Load Only) Solid Fuel $24,401,261 $26,288,953 $42,933,626 $42,153,676 $35,061,376 $29,631,228 $25,975,941 $...

AI summary The document presents a table showing fuel and power costs for various fuel types across different months, with figures in Canadian dollars. It includes data for solid fuel, natural gas, biomass, bunker C, furnace, diesel, additives, and GHG compliance costs.

CUSTOMER CHARGE per month Effective upon the date of the Board's Order $20.08 Effective January 1, 2027 $21.04 ENERGY CHARGE cents per kilowatt-hour Effective upon the date of the Board's Order 18.324 Effective January 1, 2027 19.067 FUEL...

AI summary The document outlines the customer charge and energy charge rates, effective upon the Board's Order and for January 1, 2027. It also introduces the Fuel Adjustment Mechanism (FAM), indicating adjustments to energy costs.

FUEL ADJUSTMENT MECHANISM (FAM) 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 additio...

AI summary The Fuel Adjustment Mechanism (FAM) includes Actual Adjustment (AA) and Balance Adjustment (BA) charges or credits, which are applied in cents per kilowatt-hour in addition to the energy charge for the current rate year as outlined in the FAM Tariff.

FUEL ADJUSTMENT MECHANISM (FAM) 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 additio...

AI summary The Fuel Adjustment Mechanism (FAM) includes Actual Adjustment (AA) and Balance Adjustment (BA) charges or credits, measured in cents per kilowatt-hour, which are applied in addition to the energy charge under the current rate year's Tariff.

FUEL ADJUSTMENT MECHANISM (FAM) 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 additio...

AI summary The Fuel Adjustment Mechanism (FAM) establishes Actual Adjustment (AA) and Balance Adjustment (BA) charges or credits in cents per kilowatt-hour, which are applied in addition to the energy charge as part of the Tariff for the current rate year.

FUEL ADJUSTMENT MECHANISM (FAM) 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 additio...

AI summary The Fuel Adjustment Mechanism (FAM) includes Actual Adjustment (AA) and Balance Adjustment (BA) charges or credits, which are applied in addition to the energy charge under the current rate year's Tariff.

ENERGY CHARGE cents per kilowatt-hour for the first 200 kilowatt hours per month per kilowatt of maximum demand for all additional kilowatt-hours Effective upon the date of the Board's Order 14.782 11.718 Effective January 1, 2027 14.832 1...

AI summary The document outlines the energy charge rates effective upon the Board's Order and on January 1, 2027, with different rates for the first 200 kilowatt hours and additional usage. It also references the Fuel Adjustment Mechanism (FAM).

FUEL ADJUSTMENT MECHANISM (FAM) 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 additio...

AI summary The Fuel Adjustment Mechanism (FAM) includes Actual Adjustment (AA) and Balance Adjustment (BA) charges or credits, which are applied in addition to the energy charge in the current rate year, as outlined in the FAM Tariff.

FUEL ADJUSTMENT MECHANISM (FAM) 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 additio...

AI summary The Fuel Adjustment Mechanism (FAM) includes Actual Adjustment (AA) and Balance Adjustment (BA) charges or credits, measured in cents per kilowatt-hour, which apply in addition to the energy charge as part of the Tariff for the current rate year.

FUEL ADJUSTMENT MECHANISM (FAM) 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 additio...

AI summary The Fuel Adjustment Mechanism (FAM) includes Actual Adjustment (AA) and Balance Adjustment (BA) charges or credits, which are applied in addition to the energy charge as part of the Tariff for the current rate year.

As follows, per kilovolt ampere of maximum demand of the current month or the maximum actual demand of the previous December, January, or February occurring in the previous eleven (11) months. per month Effective upon the date of the Board...

AI summary The text outlines a distribution cost adder, specifying rates per kilovolt ampere of maximum demand for different periods. The rates are set at $9.268 effective upon the date of the Board's Order and $10.006 effective January 1, 2027.

FUEL ADJUSTMENT MECHANISM (FAM) 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 additio...

AI summary The Fuel Adjustment Mechanism (FAM) includes Actual Adjustment (AA) and Balance Adjustment (BA) charges or credits, which are applied in addition to the energy charge for the current rate year as outlined in the FAM Tariff.

CUSTOMER CHARGE per month Effective upon the date of the Board's Order $22.00 Effective January 1, 2027 $22.73 ENERGY CHARGE cents per kilowatt-hour for the first 200 for all kilowatt-hours additional per month kilowatt-hours Effective upo...

AI summary The document outlines the customer charge and energy charge rates effective upon the Board's Order and on January 1, 2027. It also references the Fuel Adjustment Mechanism (FAM), which is used to adjust rates based on fuel costs.

FUEL ADJUSTMENT MECHANISM (FAM) 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 additio...

AI summary The Fuel Adjustment Mechanism (FAM) includes Actual Adjustment (AA) and Balance Adjustment (BA) charges or credits, which are applied in addition to the energy charge for the current rate year, as outlined in the FAM Tariff.

Interim Energy Charge cents per kilowatt-hour During a For the first 200 kilowatt- For all cents per kilowatt-hour Interim Energy Charge During a Critical Peak Event For the first 200 kilowatt hours per month per maximum demand For all add...

AI summary The document outlines the interim energy charge rates during a Critical Peak Event and for different usage tiers. Rates are set at 14.782 cents per kilowatt-hour for the first 200 kilowatt-hours and 11.718 cents for additional usage, with higher rates effective from November 1, 2026, and January 1, 2027.

FUEL ADJUSTMENT MECHANISM (FAM) 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 additio...

AI summary The Fuel Adjustment Mechanism (FAM) includes Actual Adjustment (AA) and Balance Adjustment (BA) charges or credits applied per kilowatt-hour in addition to the energy charge for the current rate year, as outlined in the FAM Tariff.

FUEL ADJUSTMENT MECHANISM (FAM) 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 additio...

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

difference between non-fuel - revenue under PHP's current tariff and an above the line - tariff. And so we have included in the application a - breakdown in the calculation of that, and that is the - forecast deferral as of December 31st o...

AI summary The text discusses financial aspects of a tariff application, including revenue differences, deferrals related to the ISO and fuel costs, bond issuance, and thermal assets. It outlines unrecovered costs, financial estimates, and references the DDA annual report.

ent of - this long-lived organization are appropriate to include in - the securitization transaction. - And I just included a note here. - We've included it in the Application as well, but I think - important to reiterate, both of these it...

AI summary The discussion centers on deferral mechanisms, specifically the PHP and IESO deferrals, which are based on forecasted future values. Any discrepancies between the forecast and actual balances will be adjusted via the FAM. Concerns are raised about the long-term deferral of costs and their fairness to future customers.

w you developed that monthly - number and how it compares to their budget that they - submitted. - MR. WILLETT: Yeah. Melissa, it's - Mike Willett here. - So those numbers are coming directly - from the IESO's application. So there was a l...

AI summary The discussion centers on revenue requirement collection mechanisms and fuel and purchase power costs, including the use of a Financial Accountability Mechanism (FAM) to address forecasted under-recoveries and the decision to issue a $1 billion bond to secure the best interest rates for customers.

number would provide the best results. - And so we have provided there the - breakdown, again, the forecast under-recovery to September - 30th, the forecast under-recovery of the remainder of this - year or next year, an additional amount...

AI summary The document discusses the under-recovery of fuel costs due to higher-than-expected expenditures, driven by geopolitical events and colder weather. These costs, incurred during the energy transition period, are impacting Nova Scotia Power's credit metrics and may require a rate increase of 7-8% to maintain its credit rating.

oximate rate increase - of about seven to eight percent for an average across all - customer classes. - Securitization of unexpected fuel - balances has been employed in other jurisdictions and in - Nova Scotia previously. So that was with...

AI summary The text discusses the securitization of fuel costs, including a $500 million fuel balance from a previous proceeding, and argues that securitization allows for cost-effective recovery of these costs, benefiting both current and future customers and supporting Nova Scotia Power's credit ratings.

e of the volatility in those bond - markets and we would be looking to lock in the lowest - yield possible. And we're aware of the fact that, to the - extent that time drags on, yields could go up. - And so we will not be wasting any - INT...

AI summary The discussion revolves around the potential rate increase in 2027, with a focus on fuel costs and the Financial Accountability Mechanism (FAM). The conversation highlights concerns about the impact of delayed decisions on bond yields and customer costs, as well as the need to lock in low rates quickly.

lion. - MR. ROSCOE: Okay. That's 149, not - the 214. Okay. - MR. WILLIAMS: That's right. - So I that helps put all this into - context and then we're talking about big numbers here. - If these components are not included in securitization,...

AI summary The discussion highlights concerns about the potential for a significant rate increase if unrecovered fuel costs are not included in securitization. The speaker emphasizes the policy implications of including fuel costs and the impact on customers, noting recent government announcements that underscore the importance of this decision.

crease really jeopardizes that policy objective, I - think. - So sorry. That was a bit of a - sidetrack, but Craig. - MR. FLEMMING: Yeah, so thank you. - So Daniel, I was going to start by - I was going to start my response the same way Bl...

AI summary The discussion centers on the potential rate increase of approximately 7 to 8 percent, with adjustments based on the balance of $150 million and expected under-recovery of about 2 percent. The conversation also touches on the role of the FAM and securitization in managing these financial aspects.

u know, costs previous costs - incurred, so having that amortized over a long period at a - good interest rate is of benefit to those customers - switching. - Where we bristle at the suggestion - that now precedent has been set about finan...

AI summary The discussion highlights concerns about amortizing past fuel costs over long periods at favorable interest rates, and the potential negative impact of securitization on ratepayers. There is a disagreement over the inclusion of future fuel costs in the rate adjustment process, with one party arguing it may be inefficient and costly.

ve - gone and where we are already in '26, it's very clear that - we're going to be under-recovered in '27 with a BCF not - intending to be done until 2028. - So it's not under a guise and I think - it's a very reasonable approach to be to...

AI summary The speaker discusses the challenges of under-recovery in 2027 due to delayed BCF implementation and the need for a more nimble FAM process to handle fuel costs separately. They emphasize the volatility of fuel markets and the need for a more responsive approach to avoid financial imbalances and protect customer interests.

ved rate. And so that would - be $26.8 million annually. It would be a depreciation - expense that would be included in rates. As well, there - would be financing costs associated with the net book - value or rate base associated with thos...

AI summary The text discusses the financial aspects of asset depreciation, financing costs, and under-recovery of fuel and purchase power, including recovery timelines from 2027 to 2039. It outlines how these costs would be included in rates and recovered through various mechanisms, such as AA/BA applications and IESO riders.

mand component we are - using the 3 CP, three coincident peak, methodology in - order to allocate those costs to various customer classes. - And for the energy component of the thermal assets, that - is based on the 2027 share of energy by...

AI summary The discussion focuses on the methodology for allocating costs to customer classes using the three coincident peak (3 CP) approach and the 2027 energy share forecast. The conversation also addresses the annual updating of load forecasts and the treatment of fuel and purchase power costs, with a reference to the $150 million balance as of September 30, 2026.

NOVA SCOTIA ENERGY BOARD NOTICE OF PUBLIC HEARING Application by Nova Scotia Power Incorporated For Approval of a Financing Order authorizing the securitization of $1 billion in costs, collected through a Securitization Cost Recovery Rider...

AI summary Nova Scotia Power Incorporated has applied for approval to securitize $1 billion in costs through a Securitization Cost Recovery Rider. The costs include asset retirement, fuel and purchased power under-recoveries, and deferral account balances. The application is filed under the Public Utilities Act and Financing Orders and Securitized Bonds Regulations.

NOVA SCOTIA ENERGY BOARD NOTICE OF PUBLIC HEARING Application by Nova Scotia Power Incorporated For Approval of a Financing Order authorizing the securitization of $1 billion in costs, collected through a Securitization Cost Recovery Rider...

AI summary Nova Scotia Power Incorporated has applied for approval to securitize $1 billion in costs through a Securitization Cost Recovery Rider, including costs related to thermal generation asset retirement, fuel and purchased power under-recoveries, and deferral accounts. The request is made under the Public Utilities Act and Financing Orders and Securitized Bonds Regulations.

NOVA SCOTIA ENERGY BOARD NOTICE OF PUBLIC HEARING Application by Nova Scotia Power Incorporated For Approval of a Financing Order authorizing the securitization of $1 billion in costs, collected through a Securitization Cost Recovery Rider...

AI summary Nova Scotia Power Incorporated has applied for approval to securitize $1 billion in costs, collected through a Securitization Cost Recovery Rider. The costs include deferred financing costs, fuel and purchased power costs, and deferral account balances, among others.

NOVA SCOTIA ENERGY BOARD NOTICE OF PUBLIC HEARING Application by Nova Scotia Power Incorporated For Approval of a Financing Order authorizing the securitization of $1 billion in costs, collected through a Securitization Cost Recovery Rider...

AI summary Nova Scotia Power Incorporated has applied for approval of a financing order authorizing the securitization of $1 billion in costs, collected through a Securitization Cost Recovery Rider. The costs include thermal generation asset retirements, fuel and purchased power costs, and deferral account balances.

Application by Nova Scotia Power Incorporated For Approval of a Financing Order authorizing the securitization of $1 billion in costs, collected through a Securitization Cost Recovery Rider The Board has received an application from NS Pow...

AI summary Nova Scotia Power Incorporated has applied for approval of a financing order to securitize $1 billion in costs, collected through a Securitization Cost Recovery Rider. The costs include thermal generation asset retirements, fuel and purchased power costs, and deferral accounts.

Application by Nova Scotia Power Incorporated For Approval of a Financing Order authorizing the securitization of $1 billion in costs, collected through a Securitization Cost Recovery Rider The Board has received an application from NS Pow...

AI summary Nova Scotia Power Incorporated has applied for approval to securitize $1 billion in costs, including thermal generation asset retirements, fuel and purchased power costs, and deferral accounts, through a Securitization Cost Recovery Rider. The application is under the Public Utilities Act and Financing Orders and Securitized Bonds Regulations.

1 Request IR-14: - 2 On p. 17 of its application, NS Power noted that, if not securitized, the September 2026 FAM - 3 balance would need to be collected through the existing FAM process resulting in an increase of - 4 about 7 8%. - 5 a) Wh...

AI summary The document outlines a series of questions regarding the securitization of the Fuel Adjustment Mechanism (FAM) balance by NS Power, including potential rate increases, customer impact, deferral of balances, and comparisons with other jurisdictions. It also asks about the scope of securitization and future rate adjustments.

Request IR-6: - Reference: Section 5.0; Figure 5; Appendix B. - Please provide the NPV of customer benefits by securitized-cost component, including Thermal - Assets, Thermal Asset Financing Cost Deferral, PHP Deferral, IESO-NS Deferral an...

AI summary Request IR-6 asks for the NPV of customer benefits by securitized-cost component, including Thermal Assets, Thermal Asset Financing Cost Deferral, PHP Deferral, IESO-NS Deferral, and Fuel and Purchased Power, reconciling to the $265.6 million total NPV benefit in Appendix B.

Request IR-2: NSPI states: NS Power's Q3 Forecast includes a forecast Fuel Adjustment Mechanism (FAM) under- recovery of $41.7 million, before interest, in Q4 2026 and 2027. The $64.9 million FAM prepayment consists of this forecast under-...

AI summary NSPI proposes a $23.2 million additional FAM prepayment to be securitized over 30 years, aiming to moderate fuel rate impacts in 2028 and manage transitional energy costs. This approach seeks to distribute costs across current and future customers and align with long-term energy transition goals.

Please refer to M13133, Exhibit N-1, NS Power Application for a Financing Order to Reduce Costs for Customers (the "Application") Figure 1: Summary of Securitized Costs ($ million), Page 10 of 51, Line 17: a) When does NS Power anticipate...

AI summary The text includes a series of questions related to NS Power's upcoming filings, the reset of the Base Cost of Fuel (BCF) for 2028, the impact of limited approval of securitized costs, and the reclassification of Thermal Assets following Board approval of the Application.

Request IR-2: Please refer to Exhibit N-1, the Application, Page 13 of 51, Lines 13-16: a) How did NS Power determine that an additional prepayment of approximately 2 to 3 percent of annual fuel costs (valued at $23.2 million) was appropri...

AI summary The text requests clarification on how NS Power determined the appropriateness of a 2 to 3 percent prepayment of annual fuel costs, valued at $23.2 million, and which factors influenced this estimate.

Request IR-10: As part of IESO-NS's 2027/2028 Fee Recovery Mechanism Application (M13007), IESO-NS is proposing for IESO-NS' collection 2025/2026 and 2026/2027 Fees (including the $950,000/month paid by NS Power from February to November 2...

AI summary IESO-NS is proposing to collect fees for the 2025/2026 and 2026/2027 periods from load serving entities, including NS Power. Questions are raised about securitization, cost allocation, adjustments due to load changes, and potential interest and financing costs if fees are later deemed not owed.

1 2026 2 3 4 IN THE MATTER OF: 5 6 IN THE MATTER OF: 7 8 IN THE MATTER OF: 9 10 11 12 13 To: From: Responses Due: Contact Person NOVA SCOTIA ENERGY BOARD The Public Utilities Act - and - M13133 The Financing Orders and Securitized Bonds Re...

AI summary The document outlines an information request regarding the failure to recover an outstanding forecast under-recovered FAM balance from September 2025 in 2026, as per the FAM Plan of Administration (POA), and its impact on the proposed $149.6 million securitization balance and accrued interest by customer class.

6 Reference: Exhibit N-1, Section 2.2, pp. 12-13. - 7 (a) Please explain and confirm whether forecast future fuel and purchased 8 power costs that have not yet been paid or incurred by NSPI (including the $23.2 million additional buffer pr...

AI summary The text requests clarification on whether forecast future fuel and purchased power costs, including a buffer prepayment and potential fuel shortfall, qualify as 'Unrecovered Fuel Costs' under the Financing Orders and Securitized Bonds Regulations, and whether such costs can be securitized. It also asks for examples of similar approvals in other jurisdictions.

22 Reference: Exhibit N-1, Appendix C; and Figure 1, p. 10. (a) Please provide a schedule, in excel format, similar in approach to Appendix C, but limited solely to the forecast 2027 fuel shortfall (i.e. the forecast FAM under-recovery for...

AI summary The request asks for an Excel schedule showing the impact on 2027 GRA rates if the 2027 fuel shortfall were recovered through the FAM process instead of being securitized, and also asks for the resulting rate impact by customer class.

4 Reference: Exhibit N-1, Section 5.0, pp. 24-25; and Confidential Appendix B. - (a) Please provide a revised version of Appendix B (Confidential), that removes 2027 and future fuel costs from both the traditional recovery and securitizati...

AI summary The text requests a revised version of Appendix B that excludes 2027 and future fuel costs from securitization scenarios and asks whether removing these amounts would affect the requested bond issuance and financing costs.

29 Request IR-6: - 1 2 3 4 (a) Please explain whether and how NSPI has considered the requirements and policy objectives of the More Access to Energy Act, including its purpose of encouraging competition in the Nova Scotia electricity mark...

AI summary The request asks NSPI to explain how it considered the More Access to Energy Act's objectives, particularly competition in the electricity market, in its proposal to securitize future fuel costs. It also inquires about the impact of securitization on customers switching to Licensed Retail Suppliers under the RtR program and whether this approach aligns with or hinders competition.

Request: a) Please confirm if the values shown on the "Summary" worksheet of "2026 Securitization Rider Application Appendix A EO.xlsx" are fixed or if they will change. If values are expected to change, please provide an overview of what...

AI summary The text requests confirmation on the fixed nature of values in a securitization rider application, potential changes to costs, and the role of specific prepayment amounts in adjusting the total securitization issuance value. It references multiple applications and regulatory matters, including the ELID tariff and AAR application.

- Reference: N-1, section 2.3 and Appendix A, tab "2 PHP Deferral." - a. Please provide a narrative explanation as to why the "PHP Deferral" includes Non-Fuel costs only (and not Fuel Costs). - b. Please provide the basis for "accrued inte...

AI summary The text requests an explanation for why the 'PHP Deferral' includes only Non-Fuel costs and not Fuel Costs, and the basis for accrued interest calculated at the Bank of Canada policy rate plus 1.75 percent.

22 FUEL AND PURCHASED POWER ($214.5 MILLION) - 23 Request IR-6: - 24 Reference: N-1, Application, page 13, lines 4-6; and Appendix C Attachment 3, tab "BA - 25 Calculations." - 26 "The forecast September 30, 2026 under-recovery of $149.6 m...

AI summary The document discusses discrepancies in fuel and purchased power costs, including a forecast under-recovery of $149.6 million and a $69.1 million balance from Appendix C. It requests a reconciliation, actual September 2026 data, and details on the $41.7 million forecast under-recovery.

17 Request IR-7: 18 Reference: N-1, Application, page 17, lines 20-23 Furthermore, if the Unrecovered Fuel Costs are not securitized, they will need to be collected through the existing FAM process, which, for only those costs up to the en...

AI summary The text discusses the potential impact of not securitizing Unrecovered Fuel Costs, which could lead to significant rate increases of 7 to 8% for customers in 2027 if recovered through the existing FAM process. The request asks for workpapers and a breakdown of rate increases by customer class, as well as recovery proposals if the Financing Order is not approved.

14 Request IR-8: 15 Reference: N-1, Application, page 13, lines 8-16 and lines 22-28. "NS Power's Q3 Forecast includes a forecast Fuel Adjustment Mechanism (FAM) under-recovery of $41.7 million, before interest, in Q4 2026 and 2027. The $6...

AI summary The document raises questions about Nova Scotia Power Inc.'s (NSPI) justification for an additional $23.2 million prepayment under the Fuel Adjustment Mechanism (FAM), its basis for determining the size of the buffer, and whether the amount was influenced by the desire to reach a $1 billion securitization issuance. It also requests details on the financial benefits of the round-number issuance and the role of financial advisors.

24 Request IR-9: 25 Reference: N-1, Application, page 13, line 17. "The inclusion of the additional $23.2 million prepayment…provides a buffer against fuel cost volatility…The application of this additional balance to the FAM will assist i...

AI summary The text discusses a request for clarification regarding NSPI's use of a $23.2 million prepayment as a buffer against fuel cost volatility, asking about its impact on customers, financial benefits, and its role in reconciling forecast-to-actual variances from multiple sources.

1 Request IR-11: 2 Reference: N-1, Appendix C, Figure 6 (pg. 11), and pages 12 – 13. Preamble: Figure 6 shows that the Large Industrial (both Firm and Interruptible) portion of the Balancing Adjustment (BA) for under-recovered FAM costs is...

AI summary The document requests detailed reconciliation and breakdown of fuel adjustment mechanism (FAM) balances, focusing on the Large Industrial class. It asks for class-level calculations, explanations of discrepancies between Balancing Adjustment (BA) and Actual Adjustment (AA) balances, and clarification on allocation methods and historical decisions affecting FAM balances.

13 Request IR-12: - 14 For the proposed recovery of the $149.6 million under-recovered fuel balance, allocated using 15 customer classes' shares of balances as of September 30, 2026, please explain how the closure 16 of a large industrial...

AI summary The text contains several requests for clarification regarding fuel balance recovery and an Excel attachment explanation. It asks how changes in large industrial customers would affect fuel balance recovery and seeks an instructional explanation of an Excel file related to AA/BA balances and securitization rider fuel.

- 29 (a) Please explain the rationale behind not including ELID/PHP in the 1 2 allocation of the $64.9 million prepayment of fuel and purchased power for the period of October 1, 2026 to December 31, 2027. 3 (b) Specifically explain why th...

AI summary The text requests an explanation for not including ELID/PHP in the allocation of a $64.9 million prepayment for fuel and purchased power, and specifically why ELID/PHP customers are excluded from the allocation of $23.2 million for other purposes.

14 Request IR-17: 15 Reference: N-1, Application, page 14, lines 21-25. "[A]ny difference between the forecast balance of $12.2 million and the actual PHP Deferral account balance at December 31, 2026 be applied as an adjustment to the $64...

AI summary The text discusses the adjustment of the Fuel Adjustment Mechanism (FAM) prepayment based on the forecast and actual balance of the PHP Deferral account by December 31, 2026. It requests an explanation of how discrepancies would be applied through the Balancing Adjustment (BA) mechanism, including customer class impacts and timing, and why the adjustment is applied to the FAM prepayment rather than the PHP Deferral account itself.

21 Request IR-20: - 22 Reference: N-1, Application, page 15, lines 3-8; and Appendix A, tab "3 NSIESO - 23 Deferral." "The balance of the Nova Scotia Independent Energy System Operator (IESO-NS) Deferral account, forecast to be approximate...

AI summary The document discusses the proposed securitization of a $20.2 million IESO-NS Deferral account balance, including questions about the impact of a potential Board determination, the breakdown of the deferral balance by month, consideration of under-spend from 2025-2026, and the rationale for requiring ratepayers to pay accrued interest at 6.59%.

2 Request IR-28: - 3 (a) Absent securitization, please identify the recovery period NSPI would 4 expect to seek for each of: (i) the thermal asset balance; (ii) existing 5 unrecovered fuel and purchased power costs; (iii) forecast fuel and...

AI summary The request asks NSPI to identify recovery periods for various cost components, explain how these periods were determined, and provide financial impacts. It also asks for quantification of credit metric effects and supporting materials for credit-rating benefits from proposed securitization.

revenue. - 22 (a) Please confirm that this description of the respective allocation 23 methodologies for the PHP Deferral, IESO-NS Deferral, Financing Costs, 24 and the FAM prepayment is accurate. - 25 (b) Please explain why it is appropri...

AI summary The text requests clarification on the allocation methodologies for various deferral accounts and financing costs, specifically why variances are being absorbed into and recovered from the FAM prepayment balance using the Base Cost of Fuel revenue allocator instead of other methodologies.

1 adopted. 2 (h) Please confirm whether this same inconsistency applies to the Balancing 3 Adjustment (BA) mechanism described in Section 9.0, given that the BA 4 mechanism also reconciles "any difference between estimated Ongoing 5 Financ...

AI summary The text asks whether the inconsistency in the Balancing Adjustment (BA) mechanism, which reconciles differences between estimated and actual financing costs, also leads to cross-subsidization concerns, similar to those raised in the Fuel Adjustment Mechanism (FAM).

1 FUTURE RECONCILIATION PROPOSAL - 2 Request IR-32: - 3 Reference: N-1, Application, Section 9.0, page 33. Preamble: NSPI proposes a Formula-based True-up Mechanism and notes it will annually calculate the required Securitized Surcharge re...

AI summary NSPI proposes a Formula-based True-up Mechanism to annually calculate the required Securitized Surcharge revenue based on forecast financing costs, reserve account activity, and earnings. The mechanism includes provisions for reviewing adjustments and addressing scenarios where fuel costs are lower than forecast, as well as handling potential reductions in IESO Deferral balance costs.

1 assuming the same allocation as thermal assets (i.e. system load factor to 2 split between energy and demand). 3 (d) If NSPI considers this alternative infeasible, less beneficial or less 4 principled than the proposed components, please...

AI summary The text discusses the allocation of system load factor between energy and demand, and requests an explanation and quantification of reasons if NSPI considers an alternative approach infeasible, less beneficial, or less principled than the proposed components.