N-1Report
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on stakeholder comments was to include additional rounds for stakeholder responses to the input assumptions and to the initial modeling results. Appendix 5.1 contains the final Terms of Reference. 10 Lingan 1, 3 and 4; Point Aconi; Point T...
AI summary The Generation Optimization and Utilization study by Synapse Energy Economics for NSPI examines the economic implications of relying on aging thermal generation assets amid provincial emission regulations. The study was commissioned by the Nova Scotia Utility and Review Board to assess resource utilization strategies.
ission constraints for selected changes to CT and CC costs and availability. They also enabled us to test the effect of selected forced retirements of one Tufts Cove unit and one of the Trenton units. Scenarios An initial set of 30 scenari...
AI summary The analysis explores modeling scenarios for NSPI's thermal generation, including forced retirements of units, sensitivity to battery costs, gas prices, and updated technology costs. It evaluates impacts of relaxing Plexos steam and transmission constraints on build, retirement, and dispatch responses.
tions. Synapse Energy Economics, Inc. NSPI Thermal Generation Utilization and Optimization M08059 11 Final Report Table 2. Modeling Sensitivities
AI summary The document references Synapse Energy Economics, Inc.'s final report on NSPI's thermal generation utilization and optimization (M08059), including a table analyzing modeling sensitivities. The proceeding likely evaluates NSPI's strategies for optimizing thermal generation resources.
NSPI Thermal Generation Utilization and Optimization M08059 12 Final Report Load Table 3 below lists the projected peak load and annual energy levels for Nova Scotia. The firm peak represents the load level for resource planning—interrupti...
AI summary The document outlines NSPI's projected peak load and annual energy levels for Nova Scotia, emphasizing DSM's role in reducing both peak and energy requirements. Reference scenarios use NSPI’s 2017 Load Forecast, while medium DSM levels assume increased Efficiency One spending, leading to roughly doubled peak load reductions after an initial ramping period.
70411Proposed Terms of Reference
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5 Appendix – Synapse Comments After April 2017 Technical Conference Introduction These comments are provided in response to the technical conference held at NSPI on April 13, 2017. They address a number of issues concerning the future plan...
AI summary NSPI plans to operate all thermal steam units except Lingan 2 through 2025/26, expecting continued operation through 2030. This contrasts with the 2014 IRP Action Plan, as Tufts Cove 1 (TUC1) will remain operational past 2025 due to 2016 load forecasts requiring resource adequacy. Sustaining capital expenditures for TUC1 are only planned through 2024, raising concerns about future costs.
e 1 (response to NS UARB IR-6, Attachment 1, page 2) show planned expenditures only through 2024. If TUC1 is not retired in 2025, it is reasonable to expect additional sustaining capital requirements. Sustaining capital investment in the t...
AI summary The text discusses NSPI's sustaining capital projections for its thermal fleet (2017-2026), noting significant uncertainty due to lack of sensitivity analysis and reliance on outdated data. Specific large capital injections for plants like Lingan 3 and Trenton 6 are highlighted, while the 2014 IRP's levelized approach is critiqued for not addressing year-specific sustaining capital needs.
25 $ 8,912,500 TUC3 $ 824,375 $ 793,125 $ 3,280,625 $ 868,125 $ 1,255,625 $ 524,375 $ 768,125 $ 543,125 $ 868,125 $ 505,625 $ 10,231,250 TUC6 $ 1,822,500 $ 1,997,500 $ 4,847,500 $ 2,297,500 $ 4,747,500 $ 1,822,500 $ 2,197,500 $ 1,897,500 $...
AI summary The text presents financial figures related to capital investments and discusses how the 2014 Integrated Resource Plan (IRP) Action Plan influences Nova Scotia Power Inc.'s (NSPI) thermal fleet economics by affecting peak demand and capacity contributions from alternative resources.
opportunities. 7. Obtain DSM resource commitments consistent with the IRP analysis. 8. Evaluate options for Mersey Development, and the potential to add 30 MW of capacity to the system. In addition to these IRP action items, continuing red...
AI summary The document outlines IRP action items, including DSM resource commitments and evaluating Mersey Development's 30 MW capacity potential. It criticizes NSPI for not rigorously analyzing the economic optimality of retaining seven coal units beyond 2030, citing gaps in their 2014 IRP analysis regarding capital expenditures and renewable energy cost impacts.
stated at the 4/13/2017 technical conference, is not well-supported. It is not at all clear that lengthy retention of the coal units was the most economic option arising from the 2014 IRP analysis. 5 5 A truer optimization, given the model...
AI summary The text critiques the 2014 Integrated Resource Plan (IRP) for inadequately evaluating alternatives to retaining coal units, emphasizing the need for iterative analysis to compare resource plans. It highlights demand-side management (DSM) and alternative capacity options (e.g., wind, storage, demand response) as more economical solutions and recommends additional system studies.
e for NSPI customers. A portfolio of alternatives, rather than a single substitution of new capacity for coal plants, 15 is likely the lowest cost among competing alternatives to coal plant retention. We suggest a rigorous analytical appro...
AI summary The text advocates for a portfolio approach to replace coal plants, emphasizing the use of PLEXOS modeling for detailed capacity expansion analysis. It stresses the need to evaluate both demand-side (e.g., energy efficiency) and supply-side alternatives, considering cost trends and greenhouse gas reduction value. Rigorous analysis of demand-side options is highlighted as critical for accurate capacity planning.
74454NSPI's comments on Synapse Report - Redacted
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REDACTED (CONFIDENTIAL INFORMATION REMOVED) June 7, 2018 Doreen Friis Regulatory Affairs Officer/Clerk Nova Scotia Utility and Review Board 1601 Lower Water Street, 3rd Floor P.O. Box 1692, Unit “M” Halifax, NS B3J 3S3 Re: M08059 – Generat...
AI summary The Nova Scotia Utility and Review Board (UARB) requests comments from Nova Scotia Power Inc. (NS Power) and interested parties on Synapse Energy Economics Inc.'s report analyzing the economic implications of retaining fossil-fueled thermal generation beyond 2030. Submissions are due by June 21, 2018, with Synapse to reply by July 9, 2018.
s Appendix B for the Board’s reference. NS Power General Comments NS Power’s comments to the Board are consistent with those provided by the Company to Synapse in its letter dated April 18, 2018. The objective of the Generation Utilization...
AI summary NS Power aligns with Synapse's 2018 study on thermal fleet retention through 2030, noting cost-effectiveness under specific conditions. The study identifies scenarios where thermal units may retire early if wind generation, DSM, and sustaining capital costs increase. Retention is indicated until 2030 in Scenario 1, with additional retirements in Scenarios 4 and 16.
Fueled Thermal Fleet To and Beyond 2030 – M08059, Synapse Energy Economics Inc. (the Synapse Report), May 1, 2018, page 1. 3 Supra, The Synapse Report, page 2. 4 The Synapse Report, page 3. Page 3 of 8 REDACTED (CONFIDENTIAL INFORMATION RE...
AI summary Synapse Energy Economics Inc. concludes that retaining Nova Scotia Power's coal fleet through 2030 is cost-effective for rate-payers, though uncertainty remains about the carbon regime's impact. NS Power expects clarity on carbon policy by late 2018, enabling an Integrated Resource Planning (IRP) exercise in 2019, contingent on updated demand-side management (DSM) studies.
vide NS Power and stakeholders with an important opportunity over the next year to focus on the development of complete and accurate resource planning assumptions necessary to support the next IRP. NS Power’s comments are not to be taken b...
AI summary NS Power acknowledges the Synapse Report's value in confirming the near-term cost-effectiveness of its thermal fleet but cautions against endorsing all modeling assumptions. It advocates proceeding with the report's recommendations without additional process, emphasizing focus on next steps for the Integrated Resource Planning (IRP) process.
ing recommendations should be considered as next steps prior to the next Integrated Resource Planning (IRP) Exercise: Synapse Recommendation NS Power Response / Position
AI summary The text references Synapse's recommendations for next steps prior to the next Integrated Resource Planning (IRP) Exercise, with corresponding responses from NS Power. The discussion centers on planning processes and stakeholder input for resource planning.
1. Confirm costs and achievable potential NS Power supports this recommendation. for incremental energy efficiency. As seen, NS Power believes that a new DSM energy efficiency displaces higher cost potential study should be completed to en...
AI summary NS Power supports recommendations to evaluate energy efficiency displacement of costly energy sources, develop cost curves for demand response, assess bulk battery storage economics, and monitor thermal fleet capital costs. The IRP must incorporate these analyses through transparent UARB processes.
respecting these issues. Conclusion The Synapse Report confirms that it is cost-effective to customers to retain NS Power’s thermal fleet through 2030, and possibly beyond. As stated above, NS Power’s comments are not to be taken as an end...
AI summary The Synapse Report concludes retaining NS Power’s thermal fleet through 2030 is cost-effective. NS Power acknowledges the report addresses the Board’s original questions but disputes its assumptions and modeling. They oppose a hearing on the report, advocating instead for proceeding to the next IRP and implementing the report’s nine recommendations.
through a hearing process on the Synapse Report. NS Power agrees that the proper focus going forward should be on the above-noted nine Recommendations identified at the end of the Synapse Report. The long-term view for NS Power’s thermal u...
AI summary NS Power agrees with the Synapse Report's nine recommendations and emphasizes the need for a comprehensive Integrated Resource Plan (IRP) in 2019, contingent on clarity regarding the Province's carbon regime. The letter highlights the importance of aligning resource planning with future carbon regulations.
r 3, 2017 Bob Fagan Synapse Energy Economics, Inc. 485 Massachusetts Avenue Suite 2 Cambridge MA 02139 Re: Key Input Assumptions & Modeling Plan for Plexos Optimization Analysis Dear Mr. Fagan: In correspondence dated August 22, 2017, the...
AI summary The Nova Scotia Utility and Review Board (UARB) approved Synapse Energy Economics Inc.'s amended Terms of Reference (TOR) for analyzing the cost-effectiveness of retaining Nova Scotia Power's thermal fleet through 2030. Synapse seeks stakeholder input on its modeling plan comparing retention costs with alternative resource plans.
retention of the coal fleet is the main issue under REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED - Appendix A NSPI to Synapse GU&O Final Report Page 2 of 9 examination in this process, as contemplated by the objective of the TOR. T...
AI summary Nova Scotia Power (NSP) emphasizes that the retention of the coal fleet is central to the proceeding, arguing that Synapse's proposed study framework with 30+ scenarios may not effectively assess coal investment merits. NSP suggests a narrowed modeling approach and anticipates an Integrated Resource Plan (IRP) will be needed by the decade's end, considering factors like carbon reduction and Maritime Link operations.
t Director, Regulatory Affairs Page 4 of 9 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED - Appendix A NSPI to Synapse GU&O Final Report Page 5 of 9 Appendix A Figure 1: Comments on Analysis Plan & Assumptions Analysis Plan 1. Select...
AI summary Nova Scotia Power Inc. (NSP) requests clarification on selection criteria for reference plans and suggests reducing scenario modeling complexity by integrating DSM, Demand Response, and transmission options as flexible resource inputs in the Long Term module, enabling optimized in-service year calculations.
d to be run in each year of the period over which existing units are retired, as accurate interpolation will not be possible for these step changes. ii) NS Power suggests that rather than interpolating, the MT/ST modules simply be executed...
AI summary NS Power proposes executing MT/ST modules continuously from 2020–2040 instead of interpolating results between years, arguing that interpolation would inaccurately represent step changes in retiring units. The approach emphasizes modeling scenarios over time without relying on interpolated data.
des nearly 900 MW of peak reduction (approximately the capacity of 6 coal units), but provides no specific details on the cost or deliverability of this capacity. NS Power submits that it is critical to develop and vet the assumed costs an...
AI summary Nova Scotia Power (NSP) emphasizes the need for detailed cost and deliverability data for proposed Demand Side Management (DSM) programs before evaluating resource portfolios. It also recommends including DSM and Demand Response in the LT Module and adjusting the Medium DSM case by excluding PHP Mill load from energy savings calculations.
REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED - Appendix A NSPI to Synapse GU&O Final Report Page 9 of 9 Figure 4: Updated Costs & Trends for New Resources Resource Type (2017) Capital Cost (2017) Fixed Percent Change ($/kW) Cost ($...
AI summary The document includes a cost trend analysis for energy resources (e.g., solar, wind, battery storage) showing significant cost reductions by 2030, and a letter from Nova Scotia Power Inc. (NSPI) responding to Synapse Energy Economics' draft report on a Generation Utilization and Optimization study under matter M08059.
tive option for rate payers is the retention of the coal fleet through 2030, and possibly beyond. Synapse confirmed this interpretation of the results at the Technical Conference on March 28, 2018. The Draft Report circulated on March 2, 2...
AI summary NS Power argues that retaining the coal fleet until 2030 is the lowest-cost option, confirmed by Synapse at a technical conference. The Draft Report lacks a conclusion on the Board’s objective, but NS Power expects the Final Report to affirm this. Uncertainty around Nova Scotia’s carbon regime and federal/provincial policy clarity will influence long-term planning, with a potential 2019 IRP exercise pending policy resolution.
lan (M08350): Page 3 of 9 REDACTED (CONFIDENTIAL INFORMATION REMOVED) April 18, 2018 Appendix B - NSPI Response to Synapse GU&O Technical Conference Page 4 of 9 D. Friis Both the CA and the SBA comment in their respective Closing Submissio...
AI summary The CA and SBA argue for an updated Integrated Resource Plan (IRP) to inform capital expenditures and DSM. NS Power agrees on the value of an IRP but defers action until after the Generation Utilization and Optimization proceeding (M08059) concludes, citing pending clarity on federal emissions rules and provincial cap-and-trade requirements.
regime. As noted by Mr. Sidebottom in response to a question on this issue from the Board panel: … Is it time to look at another Integrated Resource Plan? A. (Sidebottom) I think you took the words right out of my mouth, Mr. Doehler. I thi...
AI summary The text discusses the timing for a new Integrated Resource Plan (IRP), with Mr. Sidebottom suggesting 2019 as a suitable timeframe due to legislative clarity. It also notes Synapse's ability to complete the GUO Study without additional modeling, affirming the Company's thermal investment strategy as cost-effective, pending changes from a new carbon regime.
h 28, 2018, page 1‐2. Page 4 of 9 REDACTED (CONFIDENTIAL INFORMATION REMOVED) April 18, 2018 Appendix B - NSPI Response to Synapse GU&O Technical Conference Page 5 of 9 D. Friis remain so, for the next decade and beyond. The “planning wind...
AI summary NSPI emphasizes the need for updated resource planning assumptions for the next IRP, including renewable/non-renewable generation costs, battery technologies, and DSM potential studies. It challenges Synapse's recommendation to retire a second unit, noting minimal NPV impact from forced retirements.
ol (AGC), and inertial response capability (which NS Power notes would add to the capital cost of the resources). Synapse should ensure this requirement is explicitly recognized in its Final Report. As well, additional wind on the system w...
AI summary Nova Scotia Power Inc. (NSP) requests Synapse to address inertial response costs, declining wind capacity value with increased penetration, and consider demand response in modeling for the Integrated Resource Plan (IRP). Stakeholders are to review additional analyses before the Final Report.
pril 9, 2018, page 2. Page 8 of 9 REDACTED (CONFIDENTIAL INFORMATION REMOVED) April 18, 2018 Appendix B - NSPI Response to Synapse GU&O Technical Conference Page 9 of 9 D. Friis fleet through 2030, and possibly beyond. A clear statement co...
AI summary NSPI emphasizes the need for the Final Report to address long-term DSM modeling, gas-fired generation potential, and implications of additional wind for resource planning. The long-term viability of thermal fleet investments depends on the Province's carbon regime, with a comprehensive IRP expected in 2019 once clarity on the regime is achieved.