Topic:"Infrastructure Planning" in M04265

RESPONSE TO INFORMATION REQUEST TO: NSUARB FROM: NSPI Question IR-21: Please provide a copy of NSPI's latest generating capacity planning report. Response IR-21: The latest generating capacity planning report completed by NSPI was filed wi...

AI summary NSPI provided a response to an information request regarding its latest generating capacity planning report, noting that the most recent report was filed with the DARB in response to an Order from the Utility and Review Board. More recent studies have been conducted, but no formal reports have been prepared, and the need for new generation capacity remains uncertain.

to -:;rices that reflected changing operating costs and new plant additions. Lag periods and degrees of price elasticity could be tested.. The impact of phase-in plans on rate shock could be explored Many utilities in the early 1980's had...

AI summary The text discusses the evolution of PROSCREEN II, a utility planning tool, and its role in addressing challenges faced by utilities in the 1980s, including managing rate shocks, cost allocation, and integrated resource planning. It highlights the development of PROVIEW as a step forward in optimizing demand and supply-side alternatives.

Diversity of Client Base and of Applications Over 85 utilities now rely on PROSCREEN Il for corporate and integrated planning. These utilities have diverse systems, demands, and organizational structures. Users include investor-owned, muni...

AI summary The document discusses the diverse applications of PROSCREEN II by over 85 utilities, including investor-owned, municipal, government, and cooperative entities, across various planning and evaluation activities such as demand-side management, financial forecasting, and environmental compliance.

Modular Structure Analysts use the individual modules of PROSCREEN II to develop an understanding of specific areas of interest (e.g., power system operation or rate level determination) as well as for complete integrated planning. The con...

AI summary The document discusses the modular structure of PROSCREEN II, a utility planning tool, explaining how different configurations are used by utilities for various planning purposes, such as integrated resource planning or production costing, depending on their needs and resources.

Introduction The DSVIEW System consists of the DSVIEW Program Design (DSVIEW-DPD) Module and the DSVIEW Cost Effectiveness (DSVIEW -DCE) Module . This section presents an overview of both modules. DSVIEW's advantage as a DSM planning syste...

AI summary The DSVIEW System includes two modules for DSM planning: DSVIEW-DPD and DSVIEW-DCE. It allows utilities to evaluate demand-side measures comprehensively, considering both demand-side and supply-side costs and operations. The system helps identify optimal combinations of demand-side alternatives and supports integrated resource planning.

RANKii = Ranking of plan i, based on objective j Packages of DSM programs called portfolios are developed based on the initially calculated benefit/cost ratios and user-supplied data on levels of investment and attitudes toward risk. A pac...

AI summary The document describes how DSM portfolios are developed using benefit/cost ratios and investment data, with DSVIEW-DCE evaluating programs to meet portfolio-building criteria. Results include benefit/cost ratios, program rankings, and portfolio reports used in integrated resource planning models like PROVIEW.

General Capabilities - Data input is structured in a similar manner to PROSCREEN II GAF data. The PROVIEW data base is compatible with PROMOD ill data base translator results. - PROVIEW provides quick turn-around time by eliminating option...

AI summary The document discusses the capabilities of PROVIEW, a planning tool used for evaluating expansion options and demand-side management (DSM) programs. It highlights features such as quick turn-around time, least-cost expansion plan determination, and various objective functions and constraints for optimization.

Output Reports The following reports are produced by PROVIEW: - System Cost Repon - Least Cost Plan Smnma:ry Integrated Plan Repon - Demand Side Report Study Period Plan Comparison - Tunnel Repon Planning Period Plan Comparison - Significa...

AI summary The document outlines various reports and diagnostics generated by PROVIEW, including System Cost Reports, Least Cost Plan Summaries, Demand Side Reports, and diagnostics such as Reserve Analysis and Levelized Cost Tables. These tools are used for planning and analysis in the energy sector.

...And Power Non-Residential Investment Nova Scotia is expected to surpass the rest of the country in investment growth this year. Total investment spending is projected to advance by 11.7 per cent this year, before easing to 6.9 per cent...

AI summary Nova Scotia is projected to see strong investment growth, especially in non-residential sectors driven by projects like the SOEP and infrastructure developments. Construction output and housing starts are expected to rise, although housing starts remain below 1997 levels due to earlier declines. Employment, consumer confidence, and migration are also expected to improve.

Hanford Engineering Development Laboratory Involved in all aspects of modeling and forecasting electricity supply, demand, and power systems costs. Developed and applied load forecasting, production costing, expansion planning, and financi...

AI summary The Hanford Engineering Development Laboratory is involved in modeling and forecasting electricity supply, demand, and power systems costs. It develops and applies various models, including load forecasting, production costing, expansion planning, and financial analysis, and performs cost-benefit analyses of advanced nuclear systems.

for Electricity, 1990-2010." Proceedings of the Cana.dian Electrical Assodation National DSM Conference. With S. Braithwait, A. Faruqui, K. Seiden, and R. Benjamin. Toronto, Ontario, October 1990. - "Cost Effectiveness Analysis Under Uncer...

AI summary The text lists various academic and professional publications and presentations related to demand-side management, rate design, and integrated resource planning from the early 1990s, authored by John H. Chamberlin and colleagues. These works focus on energy efficiency, cost-effectiveness analysis, and utility regulation.

and Communications Workshop, Marco Island, Florida, September 1988. - "Marginal Cost for Transmission Line Access." American Public Power Association Rates and Finance seminar, Austin, October 1988. - "Successful Service Providers (Rate Ca...

AI summary The text lists a series of presentations and seminars on topics such as rate design, utility services, and resource planning, primarily presented between 1987 and 1988 by John H. Chamberlin. These events were hosted by various organizations including the American Public Power Association, Pacific Gas and Electric Company, and the International Association of Energy Economists.

COURSES AND LECTURES Lecturer: "Rate Course" and "Innovative Pricing." Sponsored by EPRl, Tampa, FL, February 1994. Lecturer: "Pricing as a Marketing Tool." Demand-Side Management Course, Center for Professional Advancement, Burlingame, Ca...

AI summary The text lists various courses and lectures on topics such as rate design, demand-side management, integrated resource planning, and forecasting methods, delivered by different lecturers and organizations between the 1970s and 1990s.

DR. CHAMBERLIN - DIRECT EVIDENCE aligned with IRP. Only marginal costs are appropriate for rate design because only marginal costs provide information to customers about the consequences of increasing or decreasing their load. Avoided cost...

AI summary Dr. Chamberlin discusses the importance of aligning rate design with integrated resource planning (IRP) and emphasizes the use of marginal costs over avoided costs for rate design. He also supports the development of flexible pricing protocols to help NSPI compete in a more competitive market.

DR. CHAMBERLIN, CROSS-EXAM. BY MR. CAMPBELL 2808 competitive wholesale markets, and allow retail customers access, in one way or another, to those markets, and preserve the fiction of a vertically integrated utility. The problem with that,...

AI summary The discussion explores the challenges of vertically integrated utilities in competitive wholesale markets, highlighting how utilities functionally divest their generation businesses as markets become more competitive. It also touches on the limitations of Integrated Resource Planning (IRP) in a fully accessible market environment.

DR. CHAMBERLIN, CROSS-EXAM. BY MR. HARRIS 2818 couple of minutes ago about, IRP is becoming obsolete as guickly as it gained prominence, and so on, complicated detail, time consuming. And the suggestion has quess everybody agrees. by Mr. m...

AI summary The text discusses concerns about the Integrated Resource Planning (IRP) process in Nova Scotia, suggesting it is overly complex and costly. Some argue that with the advent of competition, the current IRP planning exercise should be abandoned, leaving planning to the utility and removing regulatory oversight. References are made to past regulatory missteps, such as errors in calculating long-run avoided costs in jurisdictions like New York.

DR. CHAMBERLIN, CROSS-EXAM. BY MR. HARRIS 2819 Massachusetts, and perhaps California, utilities were required to buy far more power from independent power producers than they needed, or that was economically justified, in retrospect, all b...

AI summary The text discusses the risks of long-term utility planning due to regulatory errors in calculating long-run avoided costs, citing examples from Massachusetts and California. It raises concerns about the value of investing in extensive planning exercises, given the uncertainty of future competition and customer options, including self-generation.

DR. CHAMBERLIN, CROSS-EXAM. BY MR. HARRIS 2820 - 1 A. Well, understanding that I'm not very familiar with - the IRP process here in Nova Scotia, but of course, - 3 I'm - 4 Q. Assume that - 5 A. very familiar with it in - 6 Q. it has some c...

AI summary Dr. Chamberlin expresses concerns about the Integrated Resource Planning (IRP) process in Nova Scotia, noting that it may not align with market outcomes in a fully competitive environment. He argues that if the IRP process diverges from market results, it may not reflect customer preferences for service quality and cost.

THE EFFECTS OF COMPETITION AND DEREGULATION ON IRP AND DSM Dr. John Chamberlin, Greg Collins, and Susan Shaffer Barakat & Chamberlin, Inc.

AI summary This section introduces the analysis of the effects of competition and deregulation on Integrated Resource Planning (IRP) and Demand Side Management (DSM) by Dr. John Chamberlin, Greg Collins, and Susan Shaffer from Barakat & Chamberlin, Inc.

Abstract The rapidly emerging competitive environment in the electric utility industry is already having a profound impact on utility planning practices and the implementation of demand side management (DSM) programs. The prospect of open...

AI summary The abstract discusses how the competitive electric utility industry is transforming utility planning and demand side management (DSM) programs. With the potential for full retail access, traditional integrated resource planning (IRP) and DSM programs may become obsolete, necessitating a shift toward customer value. Utilities must choose between competing in the commodity market or adopting a value-added retail strategy.

[Figure A here] The concept of IRP and DSM make inherent sense for a vertically integrated electric utility system. Utilities use IRP to select the lowest cost mix of supply- and demand-side resources to meet projected customer loads. Beca...

AI summary The text discusses the evolution of the electric utility industry from a vertically integrated model to a deregulated one, highlighting the role of Integrated Resource Planning (IRP) and Demand Side Management (DSM). It outlines potential structural changes, such as unbundling into generation, transmission, and distribution, and the emergence of competition from energy brokers and other utilities.

Table 1 RETAIL ACCESS ALTERNATIVES AND DSM Full scale, irrunediate Value-added DSM, participant- paid DSM only Not applicable Full scale, phase in Value-added DSM, participant- paid DSM only DSM used for competitive positioning, captive cu...

AI summary The table outlines different retail access alternatives and their impact on DSM. In a limited retail access environment, traditional IRP and DSM planning remain for captive customers, but the value of DSM for reducing generation costs is negated for the T&D entity as decreased consumption leads to reduced wholesale purchases by the utility.

What Does this Mean for Future Utility Planning? First and foremost, to meet competition head on, a utility must decide what business it wants to be in. To thrive in a competitive market, it must understand its customers' business objectiv...

AI summary To thrive in a competitive market, utilities must become more customer-driven, understand customer needs, and differentiate their products and services. Traditional Integrated Resource Planning (IRP) may no longer be relevant as consumers choose suppliers based on value, requiring utilities to adapt their strategies.

NSPl's Interest in Gas - 11. NSPI has a serious and genuine interest in the use of natural gas in Nova Scotia. NSPI's interest in gas is twofold-primarily for its own use in generating electric power in Nova Scotia, and secondly as an alte...

AI summary NSPI has a significant interest in using natural gas for electricity generation and as an alternate fuel in Nova Scotia. It operates generating stations at Tufts Cove and Trenton that could be converted to natural gas, which would reduce dependency on foreign oil. NSPI is also considering building gas-fired combined cycle plants and has commissioned a pipeline study to assess feasibility.

Bypass 39. The discriminatory postage stamp toll proposed by M&NE caused NSPI to consider and investigate the cost of constructing its own natural gas pipeline to deliver Sable offshore natural gas to facilities at Trenton and Tuft's Cove....

AI summary NSPI evaluated the economic feasibility of constructing its own natural gas pipeline to bypass M&NE's discriminatory postage stamp toll, which would make bypassing economically viable. Sunstone's analysis shows that the pipeline could also serve other market loads in the Halifax/Dartmouth and Trenton areas.

Recommendations: - 1) The Steering Committee.accepts and endorses the recommendations which are set forth and more fully amplifi_ed in the attached report of the consultants, Gardner/Pinfold and Hillary and Associates. In summary, the reco...

AI summary The Steering Committee recommends actions to support the CBRM region, including early access to natural gas, resource pooling for offshore projects, training programs for natural gas jobs, and a review of provincial energy policy. A lateral natural gas pipeline is also recommended to mitigate the impact of the SOEP on the region.

Lateral and Distribution System Impacts Construction of a CBRM lateral and distribution system are determined to be uneconomic as stand-alone projects, based on projected market size and using a conventional cost of service analysis. If th...

AI summary The construction of a CBRM lateral and distribution system is deemed uneconomic as a standalone project due to projected market size. However, if CBRM is to access gas as per the Gas Distribution Regulations, some form of aid or system-wide cross-subsidization would be necessary. The gas distribution system impacts are expected to be positive and widely distributed across the province with high local content.

4. OUTLINE The report is presented in five chapters plus several appendices. This introduction is followed by an overview of the CBRM economy. Chapter II provides a detailed description of the natural gas projects, and the opportunities an...

AI summary The report outlines five chapters and appendices, covering the CBRM economy, natural gas projects, offshore exploration opportunities, natural gas market potential in Nova Scotia, and the impact of natural gas availability on coal demand.

Access to Natural Gas The CBRM shares with other p~rts of the province an interest in securing access to natural gas. There is the hope that gas would be a potentially cheaper source of energy, resulting in reduced energy costs and higher...

AI summary The CBRM is interested in securing access to natural gas for lower energy costs and industrial development but is concerned about high transportation costs and a small market potentially limiting access, which could harm the local economy.

Nova Scotia Laterals, Distribution System and Associated Projects Planned and proposed projects directed towards distribution and consumption of natural gas in Nova Scotia fall into three main categories: - )i;,, Laterals for which applica...

AI summary The document outlines planned and proposed natural gas and electrical generation projects in Nova Scotia, including laterals, distribution systems, and a new gas-fired generating station. It details costs, timelines, and the implications of converting to natural gas, noting that savings may be minimal.

M&NPP Preliminary content estimates for the main transmission line (M&NP) indicate contractors expect to spend $100 million on goods and services in Nova Scotia (42% content). The contract for construction of the main transmission line was...

AI summary Preliminary estimates suggest that the construction of the main transmission line by BFC-Marine will generate $100 million in economic activity in Nova Scotia, with 42% local content. The project is expected to create employment opportunities for Nova Scotians, with about 70% of the construction workforce being local.

Contracting I The type and distribution of benefits within Nova Scotia depend largely on the type of activity, where initial expenditures are made, and the degree of involvement of local contractors.1 In reviewing these factors, it is clea...

AI summary The document discusses the economic impacts of various projects in Nova Scotia, including the SOEP and M&NP, focusing on the types of activities, locations, and local involvement opportunities. It highlights the distribution of benefits and employment opportunities across different regions and sectors, including construction, engineering, and supply services.

5. CONTENT ESTIMATES By applying the content estimates from Table II-1 to project expenditure data obtained from the proponents, it is possible to develop a spending profile by impact area and over time (Table 11-4). Content figures beyond...

AI summary The document discusses content estimates and their application to project expenditure data from SOEP and M&NP, highlighting the distribution of impacts and the limited industrial capacity in CBRM for contract competition.

Source: Sable Offshore Energy Inc. and Maritimes & Northeast Pipeline. This lack of capacity is largely due to structural issues in the CBRM economy. The economy is heavily dependent on resource-based industries. The basis and opportunity...

AI summary The lack of local capacity in the CBRM economy is attributed to its reliance on resource-based industries and the absence of a foundation for manufacturing and service sectors. While some local spending is expected during the construction of the CBRM lateral and distribution system, a significant portion of the $70 million capital cost will be spent outside Nova Scotia.

Nova Scotia Gas Distribution and Lateral Policies In addition to inter-fuel economics, the extent to which natural gas alters the province's existing energy mix (and the economic impact this generates) also depends on the policy framework...

AI summary The document discusses Nova Scotia's gas distribution policies, emphasizing a single franchise model, wide distribution coverage, and a single toll rate to ensure equitable access and efficient service. The lateral policy for the Halifax and Strait of Canso laterals is also addressed, with M&NP waiving aid to construct due to economic considerations. Some companies have withdrawn from applying for franchises due to the regulatory framework.

Impacts at the Provincial Level Access to natural gas is expected to have a generally favourable impact in the province. Assuming gas is available throughout the province in conformance with provincial regulations, then the following kinds...

AI summary Access to natural gas is expected to have a generally favourable impact in Nova Scotia, particularly in energy savings and job creation in gas distribution. However, achieving significant market share is challenging due to current fuel prices and infrastructure costs. Environmental benefits from reduced greenhouse gas emissions are also anticipated, along with new business opportunities in gas-related industries.

Positive Impacts in the CBRM Access to natural gas would have a generally favourable impact in the CBRM. Assuming gas is available in the region in conformance with provincial regulations (ie, wide distribution at a uniform province-wide p...

AI summary Access to natural gas in the CBRM would lead to energy savings, job creation in gas distribution, potential industrial competitiveness gains, environmental benefits from reduced greenhouse gas emissions, and new business opportunities in gas-related services.

Some Caveats about CBRM Access to Gas Current market conditions are not favourable for the extension of natural gas supply to the CBRM. The market is small and uncertain. Prices for the fuels gas would try to displace are relatively low so...

AI summary The document discusses the challenges of extending natural gas supply to CBRM due to a small and uncertain market. Key factors include a declining population, weak industrial base, and reliance on Sysco for potential demand. NSPI's potential conversion of power generation units from coal to gas is also considered, though it could negatively impact coal mining prospects.

ATTACHMENT "A" This attachment outlines procedures by which the requirements of Availability Clause (1) and Special Condition (l) are to be satisfied. - (1) The customer shall apply in writing to take service under this rate, outlining the...

AI summary This attachment outlines procedures for customers to apply for service under a load retention rate, including initial screening, establishing a load retention price, and determining economic and technical feasibility. It also addresses the impact on NSPI's other customers and the use of forecasting models.

rengthened by the inclusion of a price floor in accordance with Mr. Kumar's suggestion. As to whether long or short-run marginal costs should be used, ECANS made the point in its final submission that Long-run marginal costing gives the co...

AI summary The text discusses the use of long-run marginal costing for rate design, emphasizing its benefits in reflecting the Utility's Integrated Resource Plan (IRP) and factors like Demand Side Management (DSM). It references past testimony from Dr. John H. Chamberlin at the 1995-96 NSPI general rate hearing, explaining how the choice between short-run and long-run marginal costs depends on the utility's contract with customers.

ATTACHMENT "A" This attachment outlines procedures by which the requirements of Availability Clause (1) and Special Condition (1) are to be satisfied. - (1) The customer shall apply in writing to take service under this rate, outlining the...

AI summary This attachment outlines procedures for customers to apply for service under a load retention rate, including initial screening, determination of load retention price, and adjudication by the UARB if needed. It also details economic and technical feasibility criteria and the impact on NSPI's other customers.

rengthened by the inclusion of a price floor in accordance with Mr. Kumar's suggestion. As to whether long or short-run marginal costs should be used, ECANS made the point in its final submission that Long-run marginal costing gives the co...

AI summary The discussion focuses on the use of long-run marginal costing for rate design, emphasizing its benefits in providing better price signals to consumers for long-term capital expansion and reflecting the Utility's Integrated Resource Plan (IRP), including considerations like Demand Side Management (DSM) and generation capacity development.

- As stated in the previous section, ECANS' has identified a number of - provisoes that in our opinion need to be addressed. Some can be addressed - directly by the Board in its decision on this rate application. Others are much - broader...

AI summary ECANS argues that load retention rates should be based on accurate calculations of the cost of lost load, emphasizing that they should equal or exceed NSPI's long-run marginal cost. ECANS also highlights concerns with the methodology used in calculating savings and advocates for the use of long-run marginal cost as a floor for all load retention rates.

rovide more satisfactory answers to the problems of planning and pricing than regulation. Discussions about cost allocation and rate design should be consistent with the expected move to competition". At the present time NSPI does not face...

AI summary The document discusses the lack of progress toward a competitive electricity market in Nova Scotia and NSPI's position on the need for integrated resource planning and demand-side management programs. NSPI acknowledges the global market's impact but believes it is premature for customers to pursue self-generation before 2008-2010.