Topic:"Harmonized Sales Tax" in M12663

Response IR - 3 - (a) Please refer to pages 7-8 of IESO Nova Scotia's rebuttal submission of February 19, 2026. Please also refer to NSEB IR-29 Attachment 1 for KPMG's advice on HST. KPMG has advised that HST will apply to fees charged for...

AI summary The response to Information Request IR-3 discusses the application of HST to fees and the inability to complete an analysis without an alternative to NS Power's WACC. References are made to KPMG's advice and a future submission to the NSEB.

PARTIALLY CONFIDENTIAL (Attachment Only) 19 Please refer to Attachment 1 for a copy of KPMG's opinion. 20 As the Board noted in its Information Request, it is reasonable to expect that amounts 21 collected by NS Power from its customers on...

AI summary The text discusses the tax implications of fees collected by NS Power for IESO Nova Scotia, arguing that HST collected from customers would be remitted to IESO, with NS Power recovering the same amount via input tax credits, resulting in no incremental tax burden on customers.

Request IR-28: - On pages 38 and 39 of its application, IESO Nova Scotia provides a "simplified calculation for the Net Revenue Requirement Deferral and Variance Mechanism": - a) Will IESO Nova Scotia be preparing an administration manual...

AI summary The document contains two regulatory requests (IR-28 and IR-29) directed at IESO Nova Scotia. IR-28 asks for clarification on the Net Revenue Requirement Deferral and Variance Mechanism, including administrative procedures, financial implications, reporting requirements, risk transfer, and cost containment strategies. IR-29 inquires about the tax treatment of monthly payments made by Nova Scotia Power on behalf of IESO Nova Scotia.

eporting it will provide around these processes. 10. Please confirm, or clarify otherwise, that the overall result of the IESO’s two sample scenarios would be either a regulatory asset or liability of $10. If not confirmed, please explain...

AI summary The text raises questions about the IESO's sample scenarios, tax implications of Nova Scotia Power's monthly payments, and the determination of the Monthly Assessment amount. Concerns are raised about potential regulatory assets/liabilities, tax exposure for customers, and the impact of deferrals if a permanent recovery mechanism is not approved.

d. HST Exposure An unresolved risk to ratepayers arises from the HST implications of the IESO-NS's revenue requirement. KPMG opines that amounts charged by IESO-NS to recover its approved revenue requirement will generally attract HST at 1...

AI summary The text discusses the risk to ratepayers due to HST implications of the IESO-NS's revenue requirement. KPMG notes that HST will apply to the revenue requirement, but IESO-NS argues that NSPI can offset this through input tax credits. However, there is uncertainty about whether NSPI will fully pass on these credits to customers, potentially increasing costs by 14%. The Board is urged to confirm how this exposure will be managed.

68 Ibid, p.145-146. 1 Given the unreasonableness of the request, the potential regulatory burden on IESO Nova Scotia, 2 and IESO Nova Scotia's commitment to updating the NSEB and stakeholders on the development 3 of a final procurement pol...

AI summary IESO Nova Scotia requested the Board not to direct it to report on the use of the flexibility clause due to the unreasonableness of the request and its commitment to updating stakeholders on procurement policy. The IG requested clarification on how HST exposure would be managed, and IESO Nova Scotia explained that the economic effect on customers would be neutral due to input tax credits.

assignments of existing energy supply agreements from NSPI." Subsection (2) then provides that the Board shall establish a mechanism to recover the costs referred to in subsection (1) from ratepayers. Importantly, section 30 does not set o...

AI summary PHP submits that the Board should require pre-approval from the Board for energy resource supply contracts by the IESO, except for reassignments of existing energy supply agreements from NSPI, due to potential high costs. PHP also agrees with the Industrial Group that the Board should ensure proper management of HST exposure and protect ratepayers through conditions on approval.

IESO NOVA SCOTIA PANEL 407 Cr-ex, (Rudderham) 1 Q. What I'm wondering, is that 12 Both. Either/or. Q. 13 (Johnston) So we've provided the A. 14 undertakings to provide both those documents and so 15 they'll be it will be what it is. I mean...

AI summary The discussion involves the provision of documents, including a benchmarking study, and a reference to a KPMG tax opinion dated February 18, 2026, regarding HST applicability to revenue recovery charges by IESO Nova Scotia. The tax opinion is not confidential.

IESO NOVA SCOTIA PANEL 433 Cr-ex, (Rudderham) 1 amount. But this is really outside of our revenue 2 requirement itself. 3 Q. So when the revenue requirement 4 is recovered from a market participant, say NSPI, you're 5 saying IESO would be...

AI summary The discussion revolves around the revenue requirement and how taxes, specifically the HST, are applied to it. The IESO is seeking approval for the revenue requirement plus applicable taxes, and there is clarification on how the HST would be added to the amount passed on to Nova Scotia Power.

IESO NOVA SCOTIA PANEL 435 Cr-ex, (Rudderham) 1 passed on their cost the customers, would still be having 2 HST on that. 3 Q. Okay. And has the IESO contacted 4 NSPI or discussed this issue with NSPI or the market 5 participants as to how...

AI summary The discussion centers on the Harmonized Sales Tax (HST) related to the interim relief fee and whether it is being applied correctly. The IESO confirms that HST is being added to the invoice for NSP for the interim fee and that there is no anticipated risk of penalties for late filing.