Topic:"Operating Expenses" in M12394

2.0 SINGLE-YEAR ASSESSMENT NSPML has completed its evaluation of the practicality of filing a multi-year assessment at this time. While NSPML's financing costs are relatively straight-forward and can be forecasted with high certainty, some...

AI summary NSPML evaluated the feasibility of a multi-year assessment, noting that while financing costs are predictable, operating and maintenance (O&M) costs are difficult to forecast due to market complexity and uncertainty, particularly given NSPML's small operating budget.

1 3.2 Operating & Maintenance Costs 2 3 NSPML has forecast that its O&M costs for 2026 will total $22.0 million, as presented 4 in this application and consistent with past filings, which is comprised of the cost 5 categories outlined in T...

AI summary NSPML forecasts its 2026 operating and maintenance (O&M) costs to be $22.0 million, as outlined in this application and consistent with past filings, with details provided in Table 2.

8 Operating & Maintenance Costs (Amounts in $millions) 2026 2025 approved Maintenance & Inspections (Note 1) 7.7 6.8 Labour and Administration 9.5 8.6 Insurance 4.5 4.6 Independent Engineer 0.3 0.3 Environmental Assessment - 0.1 Total 22.0...

AI summary The table outlines operating and maintenance costs for 2026 and 2025, including categories such as maintenance, labour, insurance, and environmental assessment. Total costs are projected to increase from 20.4 million in 2025 to 22.0 million in 2026.

14 3.2.1 Maintenance & Inspections 15 16 Overall, the O&M required for maintenance and inspections increased by $0.9 million 17 in 2026 versus 2025. The primary driver of this increase is due to variations in annual 18 activities related t...

AI summary The text discusses an increase in O&M costs for maintenance and inspections by $0.9 million in 2026 compared to 2025, primarily driven by variations in annual overland transmission activities.

20 1. Business Risk 21 In assessing the key business risks for NSPML, we considered the following factors: 22 In general, the operational risk for subsea cables is higher than for overhead transmission lines 23 due to environmental conditi...

AI summary The text discusses the higher operational risks associated with subsea cables compared to overhead transmission lines, including environmental conditions, physical security risks, and supply chain constraints. It references a 2024 decision and highlights challenges in manufacturing and installing subsea infrastructure.

REDACTED 1 Request IR-02: 2 - 3 Please provide the approved and actual O&M costs at the most detailed level in which each - 4 is tracked by NSPML for 2018 to 2027, including approved, actual, proposed and forecast, - 5 as applicable. If NS...

AI summary The request asks for detailed O&M cost data from NSPML for 2018 to 2027, including approved, actual, proposed, and forecast figures. NSPML responds by providing a table with this information.

13 2027 2026 2025 20 Z 4 20 DZZ 021 )Z0 019 D18 Description Estimated Assessment Approved Approved Approved Actual Approved Approved Approved Approved Approved Labour and Administration 9.8 9.5 8.6 8.6 7.2 7.5 7.4 6.9 8.3 6,8 6.9 2.4 2.9 2...

AI summary The text presents a detailed table of cost estimates, assessments, and approvals across various categories such as Labour and Administration, Maintenance and Inspection, Insurance, and others, spanning multiple years. It includes figures for 2027, 2026, 2025, and earlier years, with some entries having inconsistencies or missing data. NSPML has applied a 3% escalation rate for 2027 forecasting purposes.

REDACTED 1 continues to be provided under the LTSA which provides day-to-day support as needed via 2 a 24-hour 7 day per week telephone hotline connecting the Company's staff to Contractor 3 expertise that can assist with a variety of oper...

AI summary NSPML continues to provide support under the LTSA, which includes a 24/7 hotline for operational and maintenance assistance. The LTSA has shifted focus to OEM specialized services while strengthening internal capabilities and using more local contractors. This transition has reduced costs by minimizing reliance on OEM resources and subcontractors.

1 Request IR-04: 2 6 7 8 9 10 - 3 Reference: Table 2, O&M Forecast, page 11 and Note 1. - 4 (a) Please disaggregate the O&M cost categories in as much detail as NSPML has. - (b) Please update Table 2 with additional columns showing Forecas...

AI summary The request IR-04 asks NSPML to provide a detailed breakdown of O&M costs, update Table 2 with forecasted, approved, and actual figures for multiple years, and explain any material differences.

b) Please see table below: 202 ı 202 2 202 3 202 2024 2025 Description Approved Actual Approved Actual Approved Actual Approved Actual Approved Actuals to July 31, 2025 Remaining forecast Maintenance & Inspection 8.6 9.5 8.4 8.9 6.8 6.6 8....

AI summary The text discusses variances in approved and actual costs for various categories from 2021 to 2025, with notable differences in 2021 and 2024 due to factors like pandemic restrictions and cost reductions. It also includes details about NSPML's drone program for transmission line inspections, highlighting operational efficiency and safety improvements.

NON-CONFIDENTIAL 1 • Inspection viewpoint from ground with associated limitations 2 3 Drone inspection, as completed by NSPML in 2024, has the following highlights and benefits: 4 • Drones can be flown to line-of-sight by qualified pilots...

AI summary The document discusses the benefits of using drones for inspection, highlighting improved inspection quality, operational efficiency, and cost savings compared to traditional methods. It notes that drones can reach multiple structures with minimal travel, reduce the need for ground inspections, and provide high-quality imagery for remote analysis.

NON-CONFIDENTIAL 1 Request IR-01: 2 3 In the Spring of 2025, NS Power suffered a cybersecurity incident. 4 a) Did this incident impact NSPML's operations, assets or information technology? 5 b) Are any proposed O&M costs for 2026 related t...

AI summary NS Power experienced a cybersecurity incident in Spring 2025, which temporarily impacted NSPML's data accessibility but not operations or assets. No O&M costs for 2026 are related to the incident. NSPML also discusses the need for a marine survey following the Cable Protection Project in 2026, citing CIGRE Technical Brochure 825.

NSPML Responses to Nova Scotia Energy Board Information Requests 1 Request IR-03: 14 already embedded in NSPML's operating costs, to the new LTSA is considered 15 "material". 16 c) Please explain why NSPML is unable to estimate the costs f...

AI summary NSPML responds to Nova Scotia Energy Board information requests regarding the renewed LTSA, explaining that the contract is significant to NSPML due to its relationship with Hitachi and its impact on cost containment and stability. NSPML notes that the contract's costs are not considered material in an accounting sense but are important for operational and financial planning.

REDACTED 1 Request IR-08: 2 3 IR-2 to IR-31 Reference Exhibit N-1 Pages 4 -29 4 5 Page 9 6 NSPML states: "The above items include material undertakings with potential for large 7 uncertainty relative to the relatively small variable portio...

AI summary NSPML explains that while the variable portion of its 2026 Assessment is relatively small, it is driven by OM&G costs, which include material contracts that are uncertain due to procurement timing and unpredictable demand, such as the Marine Survey contract. This uncertainty poses significant risk despite the small proportion of the overall Assessment.

NSPML 2026 Assessment Application (NSEB M12394) NSPML Responses to Nova Scotia Energy Board Information Requests 1 cost variances on these larger contracts could have on NSPML (either positive or negative). Please 2 also see CA IR-01. NSPM...

AI summary The NSPML is responding to information requests from the Nova Scotia Energy Board regarding its 2026 Assessment Application. The discussion includes the complexity of O&M costs, differences in NSPML's and NS Power's ability to propose multi-year assessments, and requests for cost data and explanations.

12 2020 0 202 1 202 2 2023 3 202 4 Description Approved Actual Approved Actual Approved Actual Approved Actual Approved Actual Maintenance & Inspection 9.3 8.7 8.6 9.5 8.4 8.9 6.8 6.6 8.5 6.9 Labour & Administration 6.9 6.8 8.3 6.9 7.4 7.5...

AI summary The table presents financial data for maintenance, labour, insurance, and other operational costs across multiple years, comparing approved amounts with actual expenditures. The figures show fluctuations in spending over time, with some categories like insurance and contingency showing increases or decreases.

16 Description 2022 2023 2024 2025 (per Assessment) Legal 0.6 0.5 0.6 0.8 Regulatory 0.6 0.4 0.8 0.8 Consulting 0.1 0.1 0.3 0.1 Total 1.3 1.0 1.7 1.7 NSPML Responses to Nova Scotia Energy Board Information Requests 1 e) NSPML has recently...

AI summary The document outlines NSPML's shift to drone inspections and changes in vegetation management, contributing to cost uncertainty. NSPML is in the assessment stage for future planning, while NS Power has mature operations with established maintenance programs.

NON-CONFIDENTIAL 1 Request IR-12: 2 3 IR-2 to IR-31 Reference Exhibit N-1 Pages 4 -29 4 - 5 Page 11, Table 2: Operations & Maintenance Forecast – 2026 vs 2025 - 6 Please provide a revised version of the Table to include an additional colum...

AI summary The request asks for a revised version of Table 2, which shows Operations & Maintenance Forecast for 2026 compared to 2025, to include additional columns for 2025 costs to date and 2024 actual costs. A response is provided with the updated table.

REDACTED 1 Request IR-13: 2 3 IR-2 to IR-31 Reference Exhibit N-1 Pages 4 -29 4 - 5 Page 11, Table 2: Operations & Maintenance Forecast 2026 vs 2025 - 6 Note 1 to Table 2 of the application states: "Converters and substation operations, ma...

AI summary The document discusses a request for information regarding projected and actual maintenance and inspection costs for specific operations and maintenance items in 2026 and 2025. NSPML responds that 2025 actuals are not yet available but expects no material change to the overall total.

an O&M Contract with a Manager; " O&M Information " has the meaning set forth in Section [3.3(d)](#page-93-0) ; " O&M Owned IP " means the Emera Foreground IP and the Nalcor Foreground IP; " O&M Standards " means the policies, procedures,...

AI summary The text defines key terms related to operations and maintenance (O&M) in the context of a transmission asset agreement, including O&M Information, O&M Owned IP, O&M Standards, Operating and Maintenance Costs, and Operating Year. These definitions are crucial for understanding the responsibilities and obligations under the agreement.

2.1 Transmission Asset Managers - (a) Operation and Maintenance of NL Transmission Assets From and after the completion of Commissioning, Nalcor shall, with respect to the NL Transmission Assets: - (i) develop and maintain a Long Term Asse...

AI summary The text outlines the operational and maintenance responsibilities of Nalcor and Emera for the NL Transmission Assets and Maritime Link, respectively, including the development of Long Term Asset Management Plans, performance of O&M activities, and compliance with applicable laws.

3.3 Manager Submissions and Responsibilities of the JOC - (a) Coordination of O&M Activities The JOC shall meet on a regular basis in order to coordinate the operation and maintenance of the Transmission Assets, as provided in this Agreeme...

AI summary Section 3.3 outlines the responsibilities of the Joint Operations Committee (JOC) in coordinating O&M activities and reviewing matters related to Transmission Assets. Managers must submit specific documentation for review, and the JOC aims to reach consensus on these matters. If consensus is not achieved, resolution procedures under Section 3.4 apply.

4.1 Managers' Responsibilities Each Manager, with respect to the Transmission Assets for which it is responsible, shall: - (a) exercise final operational responsibility and control for the Transmission Asset, except as otherwise provided i...

AI summary This section outlines the responsibilities of managers regarding transmission assets, including operational control, compliance with regulatory requirements, adherence to maintenance plans, and ensuring qualified personnel are available to fulfill obligations.

4.2 Annual Maintenance Plan - (a) Preparation and Approval of Plans Each Manager, with respect to the Transmission Assets for which it is responsible, shall prepare and maintain an annual maintenance plan (the " Annual Maintenance Plan ")...

AI summary The Annual Maintenance Plan outlines the preparation and approval process for each Manager, requiring submission to the JOC for approval. It also emphasizes coordination with System Operators to ensure efficiency and minimize impact on energy transmission systems.

4.3 Operations & Maintenance Manual (a) Preparation of Manual - Each Manager, with respect to the Transmission Assets for which it is responsible, shall prepare and maintain an Operations and Maintenance Manual setting out the policies and...

AI summary The Operations & Maintenance Manual must be prepared and maintained by each Manager, ensuring compliance with O&M Standards. The JOC is informed of updates, but its approval does not absolve Managers of their responsibilities under the Agreement.

4.4 Operation and Maintenance Contractors - (a) Manager to Contract Each Manager, with respect to the Transmission Assets for which the Manager is responsible, shall be responsible for entering into O&M Contracts as are reasonably necessar...

AI summary The section outlines the responsibilities of managers regarding the contracting of operation and maintenance (O&M) services for transmission assets. It specifies that managers must enter into necessary O&M contracts and that Emera must include provisions allowing Nalcor or its affiliates to assume these contracts without the contractor's consent, particularly during the final five years of the agreement term.

5.5 Adjustments Regarding Operating and Maintenance Costs (a) Definitions - In this Section [5.5](#page-103-0) : " DA O&M Amount " means, for each Operating Year, the total estimated Operating and Maintenance Costs for the Defined Assets a...

AI summary This section outlines adjustments related to operating and maintenance (O&M) costs between Nalcor and Emera, defining key terms such as DA O&M Amount, ML O&M Amount, and payment mechanisms based on the comparison of these amounts. It also addresses design changes and liability for O&M costs after payments are made.

5.6 CEO Override Costs If a determination is made pursuant to Section 3.2(f) of the ML-JDA that Nalcor is liable to Emera for Unrecovered Additional O&M Costs that are not quantifiable at the time of such determination, the following provi...

AI summary This section outlines the process for handling Unrecovered Additional O&M Costs when Nalcor is liable to Emera. It includes requirements for identifying O&M activities, providing cost estimates, dispute resolution, review of plans by Nalcor, invoicing procedures, and provisions for Nalcor to perform work at its own expense with appropriate warranties and indemnities.

6.4 Reporting Obligations - (a) O&M Activities Within 90 days after the end of each Operating Year, each Manager, in respect of the Transmission Assets for which it is responsible, shall provide the JOC with a report with respect to that M...

AI summary This section outlines the reporting obligations for managers of Transmission Assets, including O&M activities, communication with authorized authorities, and reliability incident reports. Managers must submit detailed reports to the JOC within 90 days of the end of each operating year and promptly report reliability incidents.

7.4 Transition to Nalcor of O&M Activities - (a) Access to Emera Personnel Commencing at least one year prior to the end of the Term, Emera shall provide Representatives of Nalcor with access to and the assistance of such knowledgeable per...

AI summary Section 7.4 outlines the transition of O&M activities from Emera to Nalcor, including provisions for access to Emera personnel, a delivery protocol, and the delivery of O&M contracts with detailed information for Nalcor's transition planning.

9.1 Insurance Program Each Manager, with respect to the Transmission Assets for which it is responsible, shall, as it deems necessary, acting reasonably, keep in place or cause to be placed for the duration of this Agreement such operation...

AI summary The Insurance Program section outlines the requirement for Managers to maintain appropriate insurance coverage for Transmission Assets, including All Risk Property Insurance and Third Party Liability Insurance, while considering the inherent risks and factors detailed in Section 9.2.

10.3 Effect of Termination - (a) Obligations on Termination When this Agreement terminates: - (i) each Party shall promptly return to the other Party all Confidential Information of the other Party in the possession of such Party, and dest...

AI summary This section outlines the obligations and surviving terms upon termination of the agreement, including the return of confidential information, the resolution of outstanding O&M contracts, and the survival of certain obligations and rights post-termination.

12.3 Own Property Damage For the avoidance of doubt, it is the Parties' intent that, subject to any right a Party may have to seek compensation from a third party who caused the Loss or from insurance, each Party shall be responsible for a...

AI summary The Parties agree that each is responsible for Losses to its own property, including facilities, equipment, and materials on the site of Defined Assets, regardless of the cause, including O&M Activities or the actions of the other Party or its affiliates. This applies unless compensation from a third party or insurance is available.

4.2 Operation and Maintenance, Records - (a) Operation Standards Throughout the Term, Nalcor shall operate, maintain and rehabilitate (or cause to be operated, maintained and rehabilitated) the MFP using Good Utility Practice and in compli...

AI summary This section outlines Nalcor's operational and maintenance standards for the Muskrat Falls Project, requiring adherence to Good Utility Practice and Applicable Law. It also mandates record-keeping requirements for both parties, including retention periods and access provisions for authorized reviews.

NON-CONFIDENTIAL 1 Request IR-01: 2 3 Refer to M12394, Exhibit N-1, NSPML's application for approval of its 2026 revenue 4 requirement and cost assessment, (the "Application"), page 10 of 29 and respond to the 5 following: 6 7 a) Please pr...

AI summary The document outlines a request for detailed calculations and comparisons related to NSPML's 2026 revenue requirement and cost assessment, specifically focusing on how components sum to the total of $198.7 million and the impact of cost recovery on small business classes. A response includes a table comparing 2025 and 2026 costs for various categories.

NON-CONFIDENTIAL 1 Request IR-07: 2 3 Please confirm that the data provided in CA IR-2 is at the most detailed level at which actual 4 O&M costs are tracked. 5 6 Response IR-07: 7 8 Confirmed. NSPML 2026 Assessment Application (NSEB M12394)

AI summary The document includes a request and response regarding the level of detail in O&M cost data provided in CA IR-2, and references the NSPML 2026 Assessment Application (NSEB M12394).

SPONSOR DATE CASE/APPLICANT DOCKET SUBJECT Alberta Utilities Commission ENMAX Power Corp. 2022 ENMAX Power Corp. Application No. 27084 Generic Cost of Capital (electric and gas) Beverage Container Management Board (Alberta) Beverage Contai...

AI summary The document lists various regulatory proceedings related to cost of capital, rate adjustments, and other utility-related matters across different jurisdictions, including Alberta and Colorado. It includes information on applicants, dates, docket numbers, and subjects under review.

NSPML Opening Statement December 15, 2025 Before I provide a statement on the 2026 NSPML Assessment, I wanted to briefly provide an operational update on the Maritime Link. At NSPML, our number one priority is the safety of our employees,...

AI summary NSPML reports strong safety performance in 2025 with zero injuries and highlights the Maritime Link's high availability and energy delivery performance. The 2026 Assessment Application requests $198.7M, with $22.0M allocated for Operations and Maintenance.

e. Operating Risks 5 One of the most important operating risks for NSPI is weather-related service disruptions. The 6 Company's service territory is characterized by severe ice storms and wind conditions, including 7 tropical storms and hu...

AI summary NSPI faces operating risks from weather-related service disruptions and the Energy Reform (2024) Act. The Act may shift NSPI's control of the bulk power grid to the IESO and introduce competition in the wholesale power market, creating uncertainty for investors.

Opt-out Capital Investment 2019/2020 ($M) 2021 ($M) Internal Labour 0.15 0.07 Consulting 0.18 0 Total Labour 0.33 0.07 Customer Care Expenses

AI summary The table shows a breakdown of opt-out capital investment in labour costs for 2019/2020 and 2021, with internal labour and consulting expenses decreasing significantly from 2019/2020 to 2021. The section on 'Customer Care Expenses' suggests further discussion on related costs.

2019/2020 2021 2022 2023 2024 ($M) ($M) ($M) ($M) ($M) Customer Care Expenses 0.35 0.15 0.03 0.01 0.01 Meter Services Expenses

AI summary The table shows a decline in Customer Care Expenses from 0.35 million dollars in 2019/2020 to 0.01 million dollars in 2023 and 2024. The section on Meter Services Expenses suggests further discussion on related costs.

2019/2020 2021 2022 2023 2024 ($M) ($M) ($M) ($M) ($M) Meter Services Expenses – 0.09 0.99 1.11 1.10 Meter Services expenses in 2024 include carrying costs, depreciation and tax expenses.

AI summary Meter Services Expenses increased from 0.09 million in 2021 to 1.10 million in 2024, with 2024 expenses including carrying costs, depreciation, and tax expenses.

Submissions Several ratepayer groups and OEB staff disagreed with LEI and submitted that the current approach of recording the actual transaction cost as an interest expense and amortizing the transaction cost over the term of the debt ins...

AI summary Ratepayer groups and OEB staff disagree with LEI's approach to recording debt transaction costs, supporting the current method of amortizing costs over the term of the debt instrument. CCC and OEA support the existing approach, while CCMBC agrees with LEI that transaction costs should be included as OM&A costs in the revenue requirement.

Findings For utilities incurring transactions/issuance costs to secure financing from the market, the transaction/issuance costs should be incorporated into the debt interest rate used to set rates, so that the transaction costs are amorti...

AI summary The OEB states that transaction/issuance costs incurred by utilities should be incorporated into the debt interest rate used for rate setting. However, these costs are not included in the DLTDR, which is a proxy for market-based long-term debt. Legal costs related to debt papering are expected to be absorbed by the utility's OM&A budget.

[13] NSPML projected its 2026 operating and maintenance (O&M) costs will be $22.0 million, as described in the following table: Operating & Maintenance Costs (Amounts in Smillions) 2026 2025 approved Maintenance & Inspections (Note 1) 7.7...

AI summary NSPML has projected its 2026 operating and maintenance costs to be $22.0 million, with a breakdown of various cost components, including maintenance, labour, insurance, and environmental assessments, compared to the 2025 approved amounts.

- [14] This is an increase of $1.6 million compared to NSPML's approved 2025 O&M costs. NSPML noted that the overall increase is due to normal year-over-year variances in the level of work completed in overland transmission line activities...

AI summary NSPML's 2026 O&M costs are projected to increase by $1.6 million compared to 2025, attributed to normal year-over-year variances, inflation, and administrative activities. No intervenors opposed the forecast.

- [15] Over the past several years, NSPML's actual O&M costs have fluctuated, but have consistently been below forecast: Year Actual O&M Costs Approved O&M Costs Variance 2020 $18.3 million $20.6 million $(2.3) million 2021 $19.7 million $...

AI summary Over the past several years, NSPML's actual O&M costs have been consistently below forecast. In 2024, the underspend was due to not entering into an agreement for cable contingency support, and the funds were returned to customers. This approach was repeated in 2025.

3.1 Findings [20] NSPML is required to maintain its O&M costs at a just and reasonable level and must demonstrate its ability to do so in each of its applications. NSPML is now entering its ninth year with the Maritime Link being in servic...

AI summary NSPML is required to maintain its O&M costs at a just and reasonable level. The Board acknowledges NSPML's ability to forecast O&M costs accurately and agrees with the Industrial Group on considering marine survey costs in a multi-year assessment. The forecast for 2026 operating and maintenance costs is accepted.

Request IR-1: - In the Spring of 2025, NS Power suffered a cybersecurity incident. - a) Did this incident impact NSPML's operations, assets or information technology? - b) Are any proposed O&M costs for 2026 related to or affected by this...

AI summary The document outlines several requests for information regarding NSPML's operations, including the impact of a 2025 cybersecurity incident, the necessity of a marine survey following a cable protection project, risk mitigation strategies for vessel market changes, and the definition and implications of a 'material' contract related to a renewed LTSA with Hitachi.

Request IR-6: - Pages 8-9 - NSPML states: "In addition to the items listed above, with Newfoundland & Labrador Hydro still in - early stages of normal operations after commissioning of the Labrador Island Link ("LIL") in April - of 2023 an...

AI summary NSPML is working with NLH to align operating practices and maintenance for the Lower Churchill Project, including the Muskrat Falls Hydro Facilities and Labrador Island Link. The request asks for details on how these practices impact NSPML's costs, O&M consistency with utility standards, and involvement of NS Power and the NS Power System Operator.

Request IR-9: - Pages 7-9 - NSPML states "some material elements of O&M costs cannot be accurately assessed several - years in advance because of the market complexity, uncertainty and other factors". - a) Please explain how NSPML is posit...

AI summary NSPML acknowledges that some O&M costs are difficult to assess in advance due to market complexity and uncertainty. The request seeks clarification on NSPML's positioning compared to NS Power, the cost of a 2024 marine survey, historical O&M costs, and the level of uncertainty in NSPML's transmission O&M costs.

Request IR-12: - Page 11, Table 2: Operations & Maintenance Forecast 2026 vs 2025 - Please provide a revised version of the Table to include an additional column showing 2025 costs - to date, and an additional column to show 2024 actual co...

AI summary The document requests a revised version of Table 2 on Operations & Maintenance Forecast 2026 vs 2025, including additional columns for 2025 costs to date and 2024 actual costs.

Request IR-13: - Page 11, Table 2: Operations & Maintenance Forecast 2026 vs 2025 - Note 1 to Table 2 of the application states: "Converters and substation operations, marine - surveillance, and service agreements for asset maintenance pro...

AI summary The document requests detailed maintenance and inspection costs for 2026 and actual 2025 costs related to converters, substations, marine surveillance, and service agreements, citing the need to protect commercially sensitive information.

7 Request IR-2: 8 9 Please provide the approved and actual O&M costs at the most detailed level in which each is 10 tracked by NSPML for 2018 to 2027, including approved, actual, proposed and forecast, as 11 applicable. If NSPML does not h...

AI summary The request asks NSPML to provide detailed approved and actual O&M costs from 2018 to 2027, including proposed and forecast figures, and to develop a 2027 forecast if one is not already available, using a reasonable inflation rate and accounting for known cost variations.

30 Request IR-4: 31 32 In Exhibit N-4, Matter No. M11791, RIR-4, NSPML discussed savings associated with the 33 changes in (i) vegetation management process, (ii) transmission inspection methods, and (iii) 34 HVDC Converter long-term servi...

AI summary The request (IR-4) seeks detailed cost information for vegetation management, transmission inspection methods, and HVDC Converter service agreements from NSPML for 2024–2027. It also asks for explanations of changes in vegetation management and transmission inspection approaches, as well as the rationale for hiring an independent consultant and the outcomes of direct procurement of maintenance services.

1 (e) Regarding the transmission line and related inspection and maintenance 2 work, please outline the steps to complete the "assessment" in order to 3 estimate the cost this work. 4 (f) If it is "premature and subject to high uncertainty...

AI summary The document contains a series of requests for information related to transmission line inspection and maintenance costs, the impact of testing and alignment on future assessments, material contracts affected by uncertain tariffs, and the pros and cons of single-year versus multi-year assessments. Specific requests include quantifying uncertainty risks and providing detailed O&M cost breakdowns.

[13] NSPML projected its 2026 operating and maintenance (O&M) costs will be $22.0 million, as described in the following table: Operating & Maintenance Costs (Amounts in Smillions) 2026 2025 approved Maintenance & Inspections (Note 1) 7.7...

AI summary NSPML has projected its 2026 operating and maintenance costs to be $22.0 million, with a breakdown of various cost categories, including maintenance, labour, insurance, and independent engineering. The 2025 approved costs are also provided for comparison.

- [14] This is an increase of $1.6 million compared to NSPML's approved 2025 O&M costs. NSPML noted that the overall increase is due to normal year-over-year variances in the level of work completed in overland transmission line activities...

AI summary NSPML's 2026 operating and maintenance costs are projected to increase by $1.6 million compared to the approved 2025 costs, attributed to normal year-over-year variances, overland transmission line activities, administrative activities, and inflationary pressures. No intervenors opposed the forecast.

- [15] Over the past several years, NSPML's actual O&M costs have fluctuated, but have consistently been below forecast: Year Actual O&M Costs Approved O&M Costs Variance 2020 $18.3 million $20.6 million $(2.3) million 2021 $19.7 million $...

AI summary NSPML's actual O&M costs have been consistently below forecasted amounts over the past several years. The President of NSPML, Norm Dimmell, explained that the underspend in 2024 was due to not entering into a cable contingency support agreement, and the funds were returned to customers as it exceeded the earnings band. This approach was repeated in 2025.

3.1 Findings [20] NSPML is required to maintain its O&M costs at a just and reasonable level and must demonstrate its ability to do so in each of its applications. NSPML is now entering its ninth year with the Maritime Link being in servic...

AI summary NSPML must maintain just and reasonable O&M costs and has demonstrated accuracy in forecasting them. The Board agrees with the Industrial Group on considering marine survey costs over a multi-year period and accepts the forecast 2026 O&M costs.