N-52024-2025 Bates White FAM Audit Report - Redacted
20 passages
XI – Commitment and Dispatch Conclusion XI-2: The processes that NSPI uses for committing, scheduling, and dispatching units were not changed during the period before the cyber event, January 1, 2024 through April 25, 2025. The concerns th...
AI summary The audit findings highlight that NSPI's commitment and dispatch processes remained unchanged during the 2024-2025 period, with frequent manual adjustments to optimization plans. The low capacity factors of generation units suggest inefficiencies, and a new Economic Dispatch Optimization Solution is expected in 2026. Lingan 2 was kept online for extended periods for system security, and the Board is recommended to establish criteria for its operation.
mal generating fleet.115 The forecast of each generating unit Utilization Factor ("UF") over the 10- 115 NSPI, "2025 10-Year System Outlook," July 14, 2025 ("2025 10-Year System Outlook"), Figure 11. year plan, in addition to accounting fo...
AI summary The document discusses NSPI's 10-Year System Outlook, including generating unit utilization factors, the need for generating unit additions and retirements, and transmission expansion planning. It notes that the report does not clarify if the system plan represents the lowest production cost plan and highlights that integrated resource planning is now managed by the IESO.
III.B.2.a. Inputs and Assumptions used with PLEXOS in Fuel and Purchased Power Forecasting To accurately simulate the operation of the NSPI system, including accurate modelling of the transmission security constraints limiting the economic...
AI summary The document details the inputs and assumptions required for PLEXOS modeling in fuel and purchased power forecasting for NSPI. It includes load forecasts, transmission characteristics, fuel prices, generating unit data, operating costs, and emission assumptions.
Figure IV-26: NSPI's Leased Railcar Fleet190 Supplier Number of cars Age of cars Year of first NSPI use 4 30 2025 45 33 2025 11 34 2025 5 43 2019 18 46 2019 1 43 2010 52 44 2010 136 39.4 Prepared by Bates White 106
AI summary Figure IV-26 presents a table detailing the leased railcar fleet of Nova Scotia Power Inc. (NSPI), including the number of cars, their age, and the year of first use by NSPI. The data is prepared by Bates White.
FAM Cost of Point Tupper Marine Terminal, International Pier and Capital Projects All fuel handling costs at the International Pier and Point Tupper Marine Terminal are recovered through the FAM. During the Audit Period, FAM-recoverable fu...
AI summary The document discusses the Fuel and Materials (FAM) recovery of fuel handling costs at the International Pier and Point Tupper Marine Terminal, showing significant decreases in costs during the Audit Period. NSPI is responsible for capital expenditures at these terminals, which are recovered through fixed cost recovery in rates. Inspection and next steps reports highlight infrastructure conditions and potential future capital costs.
Figure V-2: NSPI's Historical Approximate Winter Readiness Inventory Targets (Metric Tonnes) Inventory Location Circuit Amount Max Physical Storage International Pier Sydney 0 240,000 Lingan Sydney 385,000 500,000 Point Aconi Sydney 115,50...
AI summary Figure V-2 outlines NSPI's historical winter readiness inventory targets for various locations, showing the amount of inventory stored versus the maximum physical storage capacity. The data includes specific details about the Point Tupper Marine Terminal's operating limits and coal storage restrictions.
Train Derailment at Sydney Coal Railway NSPI reported a single instance of a train derailment during the Audit Period. On October 6, 2025, there was a derailment of five railcars of a northbound, 21-car coal train on the Sydney Coal Railwa...
AI summary A train derailment occurred on the Sydney Coal Railway on October 6, 2025, causing five railcars to derail. The incident was attributed to track defects, non-routine track usage, and a defective switch not inspected due to a lockout. While no costs were incurred by NSPI, the report recommends tracking improvements to ensure railway safety and prevent future disruptions to the fuel supply chain.
The TCPL and PNGTS Open Seasons In July and August of 2025, TCPL and PNGTS issued coordinating Open Seasons for new FT capacity on their respective systems.320 The TCPL open season invited prospective shippers to bid on up to MMBtu/day of...
AI summary In 2025, TCPL and PNGTS launched coordinated open seasons for new FT capacity. NSPI modeled the economic implications of this opportunity, considering factors like generation capacity, gas prices, and pipeline costs. The analysis concluded that the increased costs of additional pipeline capacity make bidding unwise, with future open seasons to be evaluated using updated assumptions.
399 NSPI must carry enough 10-minute reserve to cover its largest single contingency and enough 30-minute reserve to at least equal half of its second largest contingency. 400 NSPI carries at least 50 MW of 30-Minute Reserve. 401 NSPI carr...
AI summary NSPI is required to maintain specific levels of operating reserves, including 10-minute and 30-minute reserves, based on contingency analysis. The document notes that NSPI has met these requirements and that long-term resource planning has been transitioned to the IESO, so no further recommendations are made regarding reserve surpluses.
<sup>426 2022-Evergreen-IRP-Updated-Assumptions-January-2023-Update.pdf, slide 42. 427 2024 FAM Annual Report A2.
AI summary The text references two documents: a 2023 update to the 2022-Evergreen-IRP assumptions and the 2024 FAM Annual Report. These documents are likely related to energy resource planning and generator availability.
SPI elected to perform a 100% eddy-current (electromagnetic) inspection to determine the extent of degradation and mitigate future risk. This led to the plugging of approximately 500 additional tubes. The investigation found that all conde...
AI summary SPI conducted a 100% eddy-current inspection of condenser tubes at Tufts Cove 3, identifying internal leaks caused by seawater-side erosion-corrosion. NSPI's maintenance program was found to be effective, but the Root Cause Analysis recommended significant refurbishment due to extensive degradation. NSPI plans to address this through its ACE plan with capital investments in 2026 and retubing in 2027.
X.B.3.d.ii. Status and Operation of Lingan 2 The Board considered the issue of the retirement of Lingan 2 and its relation to the commencement of the NS Block volumes in a February 8, 2022 Decision.446 The Board noted that in NSPI's integr...
AI summary The Board addressed the retirement of Lingan 2 in a February 2022 decision, noting that NSPI planned to keep the unit operational until one year after the NS Block commenced. The Board disallowed recovery of Lingan 2 operating costs beyond August 15, 2022, without further approval. NSPI phased out economic dispatch after that date but kept the unit in cold reserve. The IESO forecasts Lingan 2's retirement until 2029/2030, requiring NSPI to maintain the unit for 2-3 additional years.
X.B.3.f.ii. October-November 2024 forced outage On October 26, 2024, Point Tupper was forced offline in an outage that would last 552.37 hours until November 18, 2024.460 NSPI explained that the cause of the outage was a generator trip on...
AI summary Point Tupper experienced a forced outage from October 26 to November 18, 2024, caused by a generator trip due to damage in the rotating brushless exciter assembly. NSPI implemented corrective actions, including cleaning, replacement of components, and updated maintenance schedules. The outage is similar but not identical to a 2022 event, and NSPI has taken additional precautions based on OEM recommendations.
Maintenance and Condition Review No indications from the PDM or PDP programs prior to the failure date were observed. Vibrations and temperatures were normal on both motors prior to the failure. Compliance with PMs associated with the CW m...
AI summary The maintenance and condition review discusses the failure of the West CW motor due to moisture management issues and non-functional cabinet heaters, leading to a 38-day forced outage. The East CW motor was in better condition after refurbishment. NSPI recommends calculating the FAM costs of the outage. A second Root Cause Analysis addressed air ingress into heat exchangers, which was repaired and has not recurred.
X.B.3.h.ii. Root Cause Analysis Review We were provided and reviewed one Root Cause Analysis related to PHB. The Root Cause Analysis, published December 3, 2025, addressed an event on May 31, 2024, when the PHB unit was forced offline due...
AI summary A root cause analysis was conducted following an event where a critical spare part, the Low-Pressure Steam Extraction Control Valve Rod, broke at the PHB unit, causing an 18-day forced outage. NSPI was unable to locate the spare Rod in inventory, leading to temporary repairs and procurement delays. NSPI has since implemented inventory control improvements, but has not yet calculated the FAM costs of the event.
should include the impact of the forced outage (which lasted from June 23, 2023 to July 12, 2023), plus the period in which Point Tupper was derated (through August 2, 2023). (Recommendation X-5) Conclusion X-24: The PHB boiler's process e...
AI summary The conclusion discusses the PHB boiler's declining process efficiency since 2019, reaching 34.3% in 2025, and highlights the need for continued monitoring. It also notes that PHB is expected to remain an important resource for NSPI, with forecasts of increased output and sustained capital investment through 2050.
XI.A.1. Least Cost Dispatch NSPI, in its role as scheduler and operator, must determine how best to utilize existing generation, transmission, and other utility assets to provide reliable, lowest cost electricity to its consumers. This is...
AI summary NSPI, as scheduler and operator, must determine how to best utilize existing generation and transmission assets to provide reliable, lowest-cost electricity through the commitment and dispatch process. This involves daily, hourly, and minute-level decisions on generator operation. The process, known as security-constrained economic dispatch, is part of a broader integrated resource planning process that includes long-term planning, unit retirement, and seasonal scheduling.
XI.B.2.b. Dispatch to Manage Natural Gas Pipeline Pressure and Position Due to recurrent low gas pipeline pressure issues on the M&NP Mainline, NSPI faces a constraint on the use of natural gas at Tufts Cove and PHB, which is sometimes bin...
AI summary NSPI faces challenges managing natural gas pipeline pressure and position, leading to reduced generation output at Tufts Cove. Corrective actions include fuel switching and derating production. While modifying generator outputs is not a concern due to market conditions, the lack of documentation raises concerns about the economic management of pipeline positions.
ite Audit Report, page 284. 558 Fuel mix percentages for 2025 are estimated as of September 2025. 559 2022-2023 Bates White Audit Report, page 285. 560 2022-2023 Bates White Audit Report, page 285. PT Biomass produced no energy for FAM cus...
AI summary The Port Hawkesbury Biomass Generator's performance in 2024 and 2025 showed significant improvements, with energy production occurring in 75% and 86% of all hours, respectively. Net generation increased by 30% between 2022 and 2025, despite periods of no energy production for FAM customers in certain months.
XI.B.10.a. Unit Loading Levels and Start-up Costs NSPI's coal and gas-fired units achieve their lowest average cost when operated near maximum output. Operating fewer units at higher levels, when possible, can reduce costs to FAM customers...
AI summary NSPI's coal and gas-fired units operate most efficiently at maximum output. However, capacity factors for some units have decreased, potentially indicating inefficiencies. Data glitches were identified during the audit period, and the use of the new Economic Dispatch Optimization Solution may improve efficiency.