Topic:"Operating Expenses" in M12451

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AI summary The email opposes Nova Scotia Power's (NSP) recent 8.2% rate hike over two years, citing prior hikes for infrastructure and loan repayment. It highlights the financial burden on residents, who cannot afford electricity cuts due to housing and food costs. The writer criticizes NSP's CEO, Peter Gregg, for a 2023 compensation of $1.73 million, much of which came from ratepayer funds.

Overview - NS Power's operating, maintenance and general (OM&G) costs fall broadly into three areas: - operating and maintaining the generation, transmission, and distribution facilities; - delivering service to customers; and - providing...

AI summary NS Power forecasts its operating, maintenance, and general (OM&G) costs to be approximately 18% of its revenue requirement for 2026 and 2027. The benchmarking report indicates that NSPI's OM&G costs are favorable compared to peers, placing it in the first quartile for most metrics. Detailed cost analysis is provided in multiple appendices and standardized filing documents.

Benchmarking - NS Power filed comprehensive benchmarking work as part of the 2023-2024 GRA. An updated - benchmarking study produced by ScottMadden is provided in standardized filing OP-03 - Attachment 1. The benchmarking study shows that...

AI summary NS Power submitted a benchmarking study as part of the 2023-2024 GRA, showing their costs are below or in line with peers, particularly in OM&G and transmission/distribution metrics. The study by ScottMadden in OP-03 Attachment 1 highlights NS Power's favorable performance in various cost categories compared to utility peers.

Five-Year Operating Cost Forecast - In this Application, NS Power has included a five-year forecast summary of operating costs in - Appendix 7D . Multi-year forecasts of operating costs are inherently uncertain. Many factors can - affect N...

AI summary NS Power's five-year operating cost forecast in Appendix 7D acknowledges inherent uncertainties due to factors like storms, maintenance, material costs, customer growth, and inflation. Figure 7-1 illustrates projected costs and percentage increases over five years.

Maintenance Charge (if applicable) Cost of normal fixture maintenance and bulb replacement on the basis of current cost levels shall be used to calculate the monthly maintenance charge. This portion of the rate does not include any provisi...

AI summary The maintenance charge is calculated using current costs for normal fixture maintenance and bulb replacement. It excludes globe washing, cleaning, and vandalism-related repairs, which are billed separately to customers.

(a) Operating, Maintenance, and Capital (full charge) Rate Code Watts kWh per per mo onth ($) Other Nate Code -watts month 2023 202 4 Other 130 135 60 12.67 12.93 131 180 80 16.31 16.54 132 90 4 5 12.04 12.29 Watta Data Codo Wetts kWh per...

AI summary The document presents a table outlining operating, maintenance, and capital charges with rate codes, watts, and monetary values. Deleted text indicates revisions, and the context relates to Nova Scotia regulatory proceedings involving energy pricing structures.

Baseline Data NS Power Customers Customers Meter Reads Opt-out Customers Bi-monthly read customers 534,459 Bi-Monthly Bi-monthly read customers 3% 18,457 18,457 18,457 13,500 10,727 Monthly read customers 20,001 Monthly Monthly read custom...

AI summary The chunk provides baseline data on NS Power customers, including read frequencies, opt-out rates, travel times for meter readers, and contact center metrics. It outlines customer distribution, meter read schedules, and operational costs associated with customer service and meter reading activities.

TABLE OF STANDARDIZED FILINGS AND ATTACHMENTS Attachment 1 – COS Procedures Attachment 1a – Cost of Service Methodology Attachment 1b – Determination of Revenue Responsibilities by Rate Class Attachment 1c – Fuel and Purchased Power Relate...

AI summary The document lists standardized filings and attachments for a regulatory proceeding, covering cost-of-service methodologies, revenue responsibilities, fuel costs, unmetered services pricing, OATT calculations, and distribution tariff computations for 2026-2027. Attachments include partially confidential data and rate component tables.

5.2 Helicopter Inspections Helicopter inspections allow for an aerial perspective of overhead structures, conductor spans, and right-of-way encroachments. These inspections are designed to identify obvious structural or vegetation problems...

AI summary Helicopter inspections provide an aerial view of overhead structures, conductor spans, and right-of-way encroachments to identify structural, vegetation, and hazard risks. Conducted in fall, they help mitigate wildfire risks by detecting ignition sources before wildfire season.

Substation Building Standards Roofing materials are a major determinant of whether a wildfire will ignite a nearby structure. To protect NS Power's building assets, the targeted roof classification is "A", "B" or "C" where Fire Rating Clas...

AI summary NS Power is updating substation building standards to enhance fire safety, prioritizing roof classifications A, B, or C with metal roofs and sprinkler systems. Current standards use asphalt shingles, but retrofits are using compressed inert gas (Inergen) for fire suppression in high-risk areas. Prefabricated and steel-framed structures vary in design, with a focus on fire-resistant materials.

Circuit Breaker replacement Replacing aging substation infrastructure such as obsolete 138kV and 69kV substation circuit breakers, electro-mechanical relays, and Remote Terminal Units (RTUs) ensures your protection and control equipment is...

AI summary Replacing aging 138kV and 69kV substation circuit breakers, electro-mechanical relays, and RTUs ensures effective protection and control, reduces wildfire risks, and inspections are conducted as required.

REDACTED 2026-2027 GRA Direct Evidence Appendix 5A Page 8 of 38 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 1 1.1.2 Natural Gas 2 3 NS Power forecasts a reduction in natural gas consumption over the GRA period as new renewable 4 projects c...

AI summary NS Power forecasts reduced natural gas consumption due to renewable projects, citing lower emissions and flexibility. Heavy fuel oil (HFO) is used as backup fuel, while light fuel oil (LFO) supports start-up operations. Renewable energy from wind, hydro, biomass, and solar is expanding, with purchases from IPPs and COMFIT programs. Details on fuel forecasts and contracts are referenced in later sections.

Inclusion of Tufts Cove wharf / buoy chain inspection and maintenance costs (section 3.2.3) Operating and maintenance costs related to the Point Tupper Marine Terminal (PTMT) are specified for inclusion in the FAM (section 3.2.2), however,...

AI summary NS Power seeks to include Tufts Cove wharf/buoy maintenance costs in the Fuel Adjustment Mechanism (FAM), arguing they are necessary for safe fuel handling, similar to Point Tupper Marine Terminal (PTMT) costs already included. The request highlights the operational necessity despite the smaller scale of Tufts Cove.

• Inventoried costs - o Commodity Costs Coal, Petroleum Coke - o Financial Instruments used for Hedging (including gains, losses, fees and interest charges) - o Third-party Quality Testing and Sampling - o Transportation Costs (e.g. by rai...

AI summary The text outlines inventoried costs including commodity costs (coal, petroleum coke), financial hedging instruments, third-party quality testing, and transportation expenses. Transportation costs encompass loading, unloading, port fees, and marine services. The categorization focuses on detailed cost components related to fuel and logistics.

• Costs directly applied: - o Third Party Fuel Handling, Transportation (e.g movement between Long Term Dead Storage/Bear head and plants) and Maintenance related to Coal Piles - o Storage fees (e.g. lease, handling fees, facility fees) -...

AI summary The text lists direct costs associated with coal operations, including fuel handling, storage, environmental compliance, rail car maintenance, international pier operations, and ash hauling. These costs are categorized under operational and compliance expenses related to coal management and transportation.

• Costs expensed through the Plant Fuel Handling Adjustment: o At each thermal coal unit a demarcation point has been defined as the reclaim hoppers. Any solid fuel handling and transportation expenses up until the point of the reclaim hop...

AI summary The document defines the demarcation point for fuel handling costs at thermal coal units as the reclaim hoppers. Expenses related to solid fuel handling and transportation up to this point are classified as Fuel Adjustment Mechanism (FAM) expenses, encompassing specific cost items.

2026-2027 GRA Direct Evidence Appendix 6B (Clean) Page 13 of 33 REDACTED (CONFIDENTIAL INFORMATION REMOVED) - NS Power labour and associated costs for Equipment Operators, Mechanics, Supervisors related to fuel handling and Lab Techs relat...

AI summary The document outlines various operational and maintenance costs related to fuel handling and inventory management for NS Power, including labor, equipment, testing, and infrastructure repair costs. It also references the accounts used to record these costs in NS Power's Chart of Accounts.

2026-2027 GRA Direct Evidence Appendix 6B (Clean) Page 14 of 33 REDACTED (CONFIDENTIAL INFORMATION REMOVED) - Standby Emergency Response Services and third party compliance program - Third Party Supervision of Unloading - Transportation Co...

AI summary This section outlines various costs associated with transportation, compliance, and maintenance, including standby emergency response, third-party supervision, GHG emission compliance, ash hauling, and wharf maintenance.

3.2.15 Limited-Duration Fuel Testing These fuel testing costs (including solid fuel, liquid fuel and additives such as PAC) consist of the amounts directly incurred for shipping and handling and for conducting the test (e.g., third party t...

AI summary Fuel testing costs for limited-duration test burns include shipping, handling, and third-party analysis, limited to non-capital expenses and requiring separate accounting identification. Costs are restricted to solid, liquid fuels, and additives like PAC, incurred during occasional test burns.

3.2.16 BTL Costs - Spill energy payments under the Wholesale Market Non-Dispatchable Supplier Spill Tariff - Fuel cost incurred in providing service under the Wholesale Market Backup/Top-up Service tariff, less revenue received under the W...

AI summary The section outlines two components of BTL costs: spill energy payments under the Wholesale Market Non-Dispatchable Supplier Spill Tariff and net fuel costs under the Wholesale Market Backup/Top-up Service tariff, adjusted for revenue and non-fuel items.

3.2.18 NSP Owned Variable Production Costs • Third party production bonuses and penalties for NSP owned power production.

AI summary The document discusses NSP's variable production costs, focusing on third-party production bonuses and penalties for NSP-owned power generation. This section is part of a regulatory proceeding analyzing cost structures and incentives related to power production under Nova Scotia's energy framework.

Inventoried costs - o Commodity Costs Coal, Petroleum Coke - o Financial Instruments used for Hedging (including gains, losses, fees and interest charges) - o Third-party Quality Testing and Sampling - o Transportation Costs (e.g. by rail,...

AI summary The document outlines inventoried costs including commodity costs (coal, petroleum coke), financial hedging instruments, third-party quality testing, and transportation expenses (rail, barge, etc.). Subcategories of transportation costs include loading, unloading, port fees, and marine services.

Costs directly applied: - o Third Party Fuel Handling, Transportation (e.g movement between Long Term Dead Storage/Bear head and plants) and Maintenance related to Coal Piles - o Storage fees (e.g. lease, handling fees, facility fees) - o...

AI summary The document outlines specific costs directly applied, including third-party fuel handling, storage fees, environmental compliance fees, rail car costs, international pier operations, and ash hauling expenses. These costs are categorized under operational and maintenance activities related to coal, storage, emissions, and transportation.

Costs expensed through the Plant Fuel Handling Adjustment: o At each thermal coal unit a demarcation point has been defined as the reclaim hoppers. Any solid fuel handling and transportation expenses up until the point of the reclaim hoppe...

AI summary The document defines the demarcation point for solid fuel handling costs at thermal coal units as the reclaim hoppers. Expenses up to this point, including fuel handling and transportation, are classified as FAM expenses.

- Biomass Commodity Consumed - Maintenance and Operating expenses for Fuel Handling (allocation between OM&G and FAM) - Third Party Quality Testing and Inventory Measurement Costs (e.g. surveys, density testing, sampling) - Storage fees (e...

AI summary The text outlines various costs associated with biomass commodity consumption, including fuel handling, transportation, environmental compliance, and ash hauling. It specifies that expenses up to the bin collecting conveyor at the biomass plant are classified as FAM expenses and notes how these costs are recorded in NS Power's Chart of Accounts.

3.2.16 BTL Costs - Spill energy payments under the Wholesale Market Non-Dispatchable Supplier Spill Tariff - Fuel cost incurred in providing service under the Wholesale Market Backup/Top-up Service tariff, less revenue received under the W...

AI summary BTL Costs include spill energy payments under the Wholesale Market Non-Dispatchable Supplier Spill Tariff and net fuel costs under the Wholesale Market Backup/Top-up Service tariff, after subtracting non-fuel revenue. These costs are specific to Below-the-Line customer classes.

3.2.18 NSP Owned Variable Production Costs Third party production bonuses and penalties for NSP owned power production.

AI summary The section discusses NSP's variable production costs, focusing on third-party production bonuses and penalties. It outlines the financial incentives and penalties associated with third-party involvement in NSP's power production.

APPENDIX 7A – OM&G COSTS BY GROUP APPE: NDIX 7A – OM&G COSTS BY GROUP 1 1.1 OM&G Costs by Group 2 1.2 Inflationary Increases 6 1.3 Power Production 6 1.4 Enterprise Asset Management and Project Implementation 10 1.5 Energy Delivery 11 1.5....

AI summary Appendix 7A details the categorization of OM&G (Operations, Maintenance, and General) costs across groups such as inflationary increases, power production, enterprise asset management, energy delivery, customer experience, environmental services, and corporate adjustments. It outlines subsections including T&D contractor management, grid modernization, cyber security, and executive compensation.

OM&G Costs by Group OM&G costs by group are discussed in this document. Appendix 7C provides a Variance Analysis by Account comparing annual OM&G expenditures in the 2023-2024 GRA Compliance Filing forecast for 2024 (reflecting expenses in...

AI summary The document discusses OM&G costs by group, including a variance analysis comparing 2024 OM&G expenditures (under the NSUARB-approved 2023-2024 GRA Settlement Agreement) to 2026-2027 forecasts. NS Power's OM&G costs are categorized into five operating groups, corporate groups, and adjustments, with detailed descriptions of each group's functions.

Figure 7A-1 - Breakdown of Operating Cost Changes by Group ($ Million) Operating Group 2024 Compliance 2024 Compliance Restated 2026 2026 vs 2024 Compliance Restated 2027 2027 vs 2026 Power Production 98.7 98.7 109.7 11.0 112.9 3.2 Enterpr...

AI summary Figure 7A-1 presents a breakdown of operating cost changes by group from 2024 compliance to 2027, showing increases in various operating groups such as Power Production, Energy Delivery, and Corporate Groups, with some groups like Pension Expense showing decreases. Appendix 7C provides a detailed variance analysis by account.

Power Production OM&G expense was forecast at $98.7 million in the 2024 GRA compliance forecast. Actual 2024 Power Production OM&G expense was $104.5 million. Figure 7A-2: Power Production 2024 Compliance vs. 2024 Actuals ($ Millions) REDA...

AI summary The 2024 Power Production OM&G expense was higher than forecasted, driven by increased unit utilization and delays in retiring coal units. These increases were partially offset by reduced expenses in renewable energy sources. OM&G expense is expected to rise further in 2025.

1.4 Enterprise Asset Management and Project Implementation The EAM and Project Implementation teams are responsible for asset management strategies, capital management and execution of large capital projects. These teams are responsible fo...

AI summary The EAM and Project Implementation teams manage asset strategies and capital projects for NS Power, focusing on decarbonization and reliability. OM&G expenses rose to $8.5M in 2024 due to expanded EIT programs and increased headcount. Forecasts show continued growth through 2027, driven by inflation, personnel needs, and cybersecurity investments. EITs are prioritized for cost-effective project management.

1.5.1 Regional Operations There is currently a Power Line Technician (PLT) shortage across Canada and despite recruiting 53 journey person PLTs since 2023, NS Power has not yet reached its goal in this area. Due to retirements and attritio...

AI summary NS Power faces a shortage of Power Line Technicians (PLTs), with staff numbers below forecast despite hiring efforts. Increased customer work has led to higher overtime and contractor costs, prompting expansion of the PLT apprentice program and hiring additional contractors.

1.5.2 T&D Contractor Management - Provincial population growth and the provincial Internet for Nova Scotia program has led to a significant increase in the requested work for the Utility Services team since the 2023- 2024 GRA forecast was...

AI summary NS Power reports increased operating expenses due to higher demand from population growth and the Internet for Nova Scotia program, leading to more work for the Utility Services team. Fleet costs have risen due to increased field resources, supply chain delays, and aging vehicles requiring more maintenance. NS Power plans capital investments in 2025-2027 to address fleet costs, but expects continued increases due to staffing and fleet growth.

1.5.4 Reliability Implementation This is a new department created since the 2023-2024 GRA which includes vegetation management, reliability standards, community engagement, and line inspection programs. The $2.1 million increase in actual...

AI summary A new department established post-2023-2024 GRA handles vegetation management, reliability standards, community engagement, and line inspections. A $2.1M increase in 2024 operating expenses stems from expanded staffing in the Reliability Standards & Engagement team to centralize planning and improve customer communication under NS Power's Five-Year Reliability Plan.

1.5.5 Control Centre Control Centre operating expense has increased $1.8 million in 2024 actuals compared to the restated 2024 GRA Compliance forecast. The increase is primarily due to consulting expenses of $1.1 million mainly associated...

AI summary Control Centre operating expenses rose $1.8M in 2024 due to $1.1M in consulting costs from interconnection studies and $0.9M in overtime due to high System Operator turnover. Storm restoration costs fell $5M. The Dispatch Study program and 2025 budget indicate overtime costs will decrease.

The main variances include: - The Control Centre Operations forecast is decreased by $4.2 million due to the forecast phase two of the NSIESO transition in which the NSIESO retains responsibility for the day-to-day operations of Nova Scoti...

AI summary The main variances include a decrease in Control Centre Operations due to the NSIESO transition and a reduction in workforce, and an increase in Regional Operations due to staffing needs and additional Grid Scale Battery assets. Energy Delivery Services also increased due to inflation and new engineering and internet expenses.

Customer Service Increased labour expense in Customer Service as a result of increased staffing levels, to address the increased customer-driven work and continue to improve the provision of timely service to customers.

AI summary Increased labour expenses in Customer Service are attributed to higher staffing levels aimed at managing rising customer-driven workloads and enhancing timely service delivery. This reflects a strategic response to evolving customer demands and operational challenges.

assets requires personnel to monitor and maintain the telecommunications network, as well as incremental increases in vendor support and maintenance fees associated with more devices being supported. The 2025 Budget for Customer Experience...

AI summary The 2025 Budget for Customer Experience and Innovation is significantly higher than the 2024 actual expense, primarily due to increased OM&G costs associated with maintaining telecommunications networks and supporting more devices.

1.8.1 IT Costs NS Power's information technology OM&G expense forecast has increased from $40.5 million in the restated 2024 GRA compliance forecast to $46.0 million in actual 2024 expense. In addition to inflationary cost pressures, incre...

AI summary NS Power's IT OM&G expenses increased from $40.5M to $46M in 2024 due to inflation, cybersecurity requirements, higher contract prices, cloud migration, and the addition of the Strategic Planning team.

1.8.3 Increased Contract Pricing NS Power has seen significantly increased contract pricing from many of its IT service providers since the time of preparing the 2023-2024 GRA forecast in 2021. With the increasing digitalization of the Com...

AI summary NS Power reports increased IT service costs since the 2021 GRA forecast, driven by new digital solutions like MyAccount and higher prices for existing systems (e.g., Oracle ERP). A $2.4M increase in the Rental and Maintenance account is noted, with ongoing evaluations of IT portfolio value.

1.8.4 Movement of IT Services to the Cloud As can be seen in in IT3 metric in NS Power's benchmarking study submitted as OP-03 Attachment 1, the percentage of costs allocated to capital expenditures as opposed to operating expense is on a...

AI summary NS Power's IT expenditure trend shows a shift from capital to operating expenses due to cloud migration, with 48% capital costs in 2019 dropping to 32% in 2023. Cloud adoption increases OM&G costs via subscription models but reduces capital needs. Examples include email migration to Microsoft Exchange, offering benefits like faster feature implementation and improved cyber resilience.

1.8.5 Strategic Planning The Strategic Planning Team works with leaders across the business to identify, plan and recommend technology-intensive investments that drive enterprise level value. This includes establishing and managing a portf...

AI summary The Strategic Planning Team manages technology investments aligned with business objectives, with IT costs increasing from $47.6M in 2025 to $52.5M in 2027 due to staffing, cybersecurity, and cloud migration, partially offset by $3.5M in recoveries from affiliated companies.

REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026-2027 GRA Direct Evidence Appendix 7B Page 1 of 2 2024 Compliance 2024 Compliance Restated NOVA SCOTIA POWER INC. REGULATED OPERATING COSTS Appendix 78 - 2024 Compliance OM&G Restatement (In...

AI summary This document is a compliance appendix for Nova Scotia Power Inc.'s 2024 operating costs, detailing various operational and management groups, including Enterprise Asset Management, Grid Modernization, Customer Integration, and others. It outlines compliance restatements and includes categories such as Vegetation Management, Telecommunications, and Energy Delivery.

NOVA SCOTIA POWER INC. REGULATED OPERATING COSTS Appendix 7B - 2024 GRA Compliance Forecast - OM&G Restatement (in Thousands of $) Regional Operations AS FILED 2024 New Organization Enterprise Asset Management and Project Implementation AS...

AI summary The document presents a detailed breakdown of Nova Scotia Power Inc.'s regulated operating costs for 2024, focusing on various operational and regional cost categories, including enterprise asset management, project implementation, and customer service expenses.

Appendix 7C Operating Costs Line-by-Line Account and Variance Analysis

AI summary This document provides a detailed line-by-line account and variance analysis of operating costs, likely used for regulatory review and financial transparency.

Redacted 2026 Forecast 2026 Forecast 202/ Forecast TOTAL CUSTOMER EXPERIENCE & INNOVATION 25,998 6,145 32,144 36,996 41,014 42,290 8,870 4,018 1,276 CORPORATE ADJUSTMENTS (46,435) - (46,435) (56,458) (63,897) (68,215) (17,461) (7,439) (4,3...

AI summary The document presents a financial table outlining forecasted and actual costs related to customer experience, corporate adjustments, pensions, and regulated operating costs for various years, including 2024, 2025, and 2026. It includes figures for labour costs and their variations across different periods.

(in Thousands of $) 530050 Regular Labour 530200 Overtime Labour 530250 Sales Comm.Salaries 530300 Term Labour 530350 Loaned Op.Labour 530360 Borrowed Operating Labour 530400 Loaned Cap. Labour 530550 Labour Clearing Total Labour 530900 Of...

AI summary The text presents a detailed breakdown of labor and operational expenses across various categories, including regular and overtime labor, office supplies, travel, materials, and contracts. It provides actual figures for 2024, budget estimates for 2025, and forecasts for 2026 and 2027, highlighting compliance and actuals data across different years.

Power Production Head Office Restated 2024 Actual 2025 Budget 2026 Forecast 2027 Forecast Compliance Actuals Budget 530050 Regular Labour 2,147 1,960 2,297 2,366 150 337 530200 Overtime Labour 5 - - - (5) - 530250 Sales Comm.Salaries - - -...

AI summary The text presents a detailed breakdown of labor and operational expenses for the Power Production Head Office, including regular and overtime labour costs, salaries, office supplies, travel expenses, materials, and other operational expenditures across multiple years and budget forecasts.

Wind, Hydro, and Solar Energy (in Thousands of $) 2024 2026 Forecast vs 2024 2026 Forecast vs 2024 2026 Forecast vs 2025 2027 Forecast vs 2026 536050 Data Communication Circuits - - - - - - - 532250 Leasing 1,159 995 843 860 (316) (152) 17...

AI summary The document presents a table with various expenses categorized under different items, including leasing, consulting, corporate filing fees, and others, with figures for the years 2024, 2026, and 2027. It shows changes in costs over time, such as increases and decreases in specific categories like leasing and consulting fees.

Biomass (in Thousands of $) 2024 2026 Forecast 2026 Forecast 2026 Forecast 2027 Forecast Compliance vs 2024 vs 2024 vs 2025 vs 2026 Restated 2024 Actual 2025 Budget 2026 Forecast 2027 Forecast Compliance Actuals Budget Forecast 530050 Regu...

AI summary The text presents a financial table detailing labor and operational expenses for biomass-related activities across different years, including compliance figures and forecasts for 2024 to 2027. It outlines variations in costs for regular labor, overtime, materials, contracts, and other operational expenses.

Energy Delivery Services 2024 2026 Forecast 2026 Forecast 2026 Forecast 2027 Forecast 535950 Royalties/Easements/Appraisals 11 (0) - - (11) 0 - 532100 Telephones 144 156 165 169 21 9 4 532800 Internet Communications - 23 265 402 265 243 13...

AI summary The document presents a detailed breakdown of various costs and expenses related to energy delivery services for the years 2024 and 2026, including items such as royalties, telephones, internet communications, leasing, corporate filing fees, consulting, lubricants, fleet fuel, software, legal and audit expenses, advertising, employee benefits, insurance, repairs and maintenance, and energy use.

Reliability Implementation 2024 2026 Forecast 2026 Forecast 2026 Forecast 2027 Forecast 536050 Data Communication Circuits - - - - - - - 532250 Leasing - - - - - - - 532450 Corporate Filing Fees - - - - - - - 532500 Consulting 2 404 367 37...

AI summary The table outlines various operational and maintenance costs across multiple years, including consulting fees, membership dues, fleet fuel, and software subscriptions. It provides a forecast of expenses from 2024 to 2027, highlighting fluctuations in certain categories such as consulting and fleet fuel.

Transmission & Distribution Contractor Management 2024 Compliance 2026 Forecast vs 2024 2026 Forecast vs 2024 2026 Forecast vs 2025 2027 Forecast vs 2026 530050 Regular Labour Restated 5,925 2024 Actual 7,165 2025 Budget 2026 Forecast 2027...

AI summary The document presents a table comparing 2024 compliance data and 2026 forecasts for various labour and operational costs in Transmission & Distribution Contractor Management, including regular labour, overtime, office supplies, travel expenses, materials, and contracts. The data highlights differences between actuals, budgets, and forecasts for multiple years.

Storm /in The nds ۰f ¢ 2024 2026 Forecast 2026 Forecast 2026 Forecast 2027 Forecast Compliance Restated 2024 Actual 2025 Budget 2026 Forecast 2027 Forecast vs 2024 Compliance vs 2024 Actuals vs 2025 Budget vs 2026 Forecast 530050 Regular L...

AI summary The table presents labor and operational expense data across multiple years, including actuals, budgets, and forecasts for 2024, 2025, and 2026. It highlights variances between actuals, budgets, and forecasts for various categories like regular labor, overtime labor, office supplies, travel expenses, materials, and contracts.

Administration 530050 Regular Labour 530200 Overtime Labour Compliance Restated 2024 Actual vs 2024 vs 2024 vs 2025 vs 2026 > Labour decreased as 2024 includes expenses related to mutual aid storm response that is offset in Other Revenue....

AI summary The document details labor and expense changes in 2024 and 2026, including decreases due to storm response expenses and a GRA Settlement Agreement, and increases from hiring additional employees and legal preparations.

Grid Modernization & Customer Integration (in Thousands of $) 2024 Compliance 2026 Forecast vs 2024 2026 Forecast vs 2024 2026 Forecast vs 2025 2027 Forecast vs 2026 Restated 2024 Actual 2025 Budget 2026 Forecast 2027 Forecast Compliance A...

AI summary The table presents financial data related to labour, office supplies, travel expenses, materials, contracts, and other operational costs for the years 2024 and 2026 forecasts. It includes actuals, budgets, and forecasts for various line items, showing increases and decreases over time.

77 PLANT OPERATING EQUIPMENT REMOVALS $ 2,903 800's GENERAL AND UNDISTRIBUTED: 82 FIELD FACILITIES AND DECOMMISSIOMNG $ 20,320 including all outside building demolition & removals 85 ADMINISTRATION EXPENSES $ 319,308 900's SCHEDULES AND GE...

AI summary The text provides a summary of costs related to plant operating equipment removals, field facilities decommissioning, administration expenses, and drawings. These figures are presented in a financial context, likely from a regulatory proceeding.

Code July 2024 77 PLANT OPERATING EQUIPMENT REMOVALS 32,897 770 Environmental - Monitoring Equipment 7,380 771 Maintenance Equipment 18,227 772 Vacuum Cleaning System 7,291 B00's GENERAL AND ADMINISTRATION: 82 FIELD FACILITIES AND DECOMMIS...

AI summary The text provides a detailed breakdown of costs related to plant operating equipment removals, field facilities decommissioning, and administration expenses, including specific line items such as demolition contractor facilities, consultant services, and environmental engineering costs.

2026-2027 GRA Direct Evidence Appendix 8D Page 127 of 189 SITE •- - �"',lnNINt: · •,TE wn - 1 �nR Clt.lAt.lt"IAI • :lATION COST STUDY ?n?.t LOCATION: TUSKET GENERATING STATION (COMBUSTION TURBINE) DATE: 7/15/224 Account Estimated Cost: Jul...

AI summary The document provides a cost study for the Tuskett Generating Station, focusing on general and administration expenses, including field facilities demolition and decommissioning costs estimated for July 2024.

11,603 828 Decommissioning Costs 85 ADMINISTRATION EXPENSES 207,712 850 Demolition Studies 851 Consultant Service 29,240 852 Field Supervision 153,164 853 Head Office Engineering - Salaries and Expenses 7,603 856 Environmental Engineering...

AI summary The document outlines decommissioning costs and administrative expenses related to a remediation study update for NSPI Power Production Sites, including demolition studies, consultant services, field supervision, and engineering costs, as part of a 2026-2027 GRA Direct Evidence Appendix.

separate from main Plant Building) 734 Disbict Heating / Cooling System 75 COMPRESSED GAS SERVICES REMOVAL (EXCLUDING FUEL GAS) 750 General 751 Plant Service Air System 752 Nitrogen System 753 Hydrogen System (when separate from Turbine/Ge...

AI summary The document outlines various costs associated with the removal of plant equipment and administration expenses, including decommissioning costs and administration expenses related to field facilities and decommissioning.

LOCATION: Glen Morrison Quar!Jl DATE: July 2024 Account Estimated Action By Item Description Assumptions/ Notes: 2024 Code Cost2024 77 PLANT OPERATING EQUIPMENT REMOVALS 770 Environmental - Monitoring Equipment 771 Maintenance Equipment 77...

AI summary The document outlines various costs associated with plant operating equipment removals, field facilities decommissioning, and administration expenses for 2024, including specific line items such as demolition contractor facilities, consultant services, field supervision, and environmental engineering costs.

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 comparison of opt-out capital investment expenses for 2019/2020 and 2021, highlighting reductions in internal labour and consulting costs. The section on 'Customer Care Expenses' suggests a focus on operational costs related to customer service.

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 breakdown of Customer Care Expenses over the years from 2019/2020 to 2024, with values in millions of dollars. The expenses have decreased significantly from 0.35 in 2019/2020 to 0.01 in 2023 and 2024.

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 2021 to 2024, with 2024 expenses including carrying costs, depreciation, and tax expenses. The expenses were – in 2019/2020, 0.09 in 2021, 0.99 in 2022, 1.11 in 2023, and 1.10 in 2024.

Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests 1 Request DR-21: 2 3 Regarding the maintenance requirements for transmission equipment, 4 5 (a) Please provide the basis for forecast for maintenance requirem...

AI summary The document discusses NSPI's response to data requests regarding the maintenance requirements for transmission equipment, including the basis for forecasting maintenance needs, key drivers affecting equipment lifetime, and analysis linking operating history to maintenance and replacement costs.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 799 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2022-2024 GRA SR-01 Attachment 1a Page 9 of 12 COSS CA DR-53 Attachment 1 Page 9 of 62 various rate base func...

AI summary The document outlines the methodology for allocating meter investment and other rate base items based on cost causation relationships, as well as the functionalization of operating costs into production, transmission, distribution, retail, and direct assignment categories for the Nova Scotia Power Cost of Service Study.

al Structure and Return on Equity (ROE) is 38.80 percent, 41.30 percent and 43.80 percent, respectively for 2022, 2023 and 2024. The Weighted Average Cost of Capital (WACC), adjusted to reflect taxes, 2022-2024 GRA SR-01 Attachment 1e Page...

AI summary The document outlines Nova Scotia Power's Return on Equity (ROE) and Weighted Average Cost of Capital (WACC) for 2022 to 2024, as well as operating costs and corporate overheads. It provides figures for interest, ROE, and taxes, and allocates corporate overheads to different departments, including Transmission and Distribution.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 851 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2022-2024 GRA SR-01 Attachment 1e Page 31 of 32 COSS CA DR-53 Attachment 1 Page 61 of 62 Nova Scotia Power Op...

AI summary The document discusses changes in NS Power's transmission costs and operational factors from 2014 to 2024, including increased investment in transmission assets, changes in depreciation rates, and the impact of wind generation on ancillary services. Operating costs have decreased, but the overall system usage has increased, affecting OATT service rates.

1,084,134 $1,030,227 $976,320 $922,413 Taxes Equity Return $1,293,774 $1,239,866 $1,185,959 $1,132,052 $1,078,145 $1,024,237 $970,330 $916,423 $862,516 $808,609 $754,701 $700,794 $646,887 $592,980 $539,072 $485,165 $431,258 $377,351 $323,4...

AI summary The document provides a series of financial figures related to taxes, equity return, revenue requirement, fixed O&M, interest, and depreciation over multiple periods. These figures are presented in a tabular format and appear to be part of a financial analysis or regulatory filing.

Cost of Service Study Process (NSUARB M11475) NSPI Responses to SBA Data Requests 1 (b) WACC: 2022 NSUARB approved at 6.33 percent 2 3 (c) System Depreciation Lifetime: 35 years 4 5 (d) Fixed O&M: $18.90 KW/year (expressed in 2022 dollars)...

AI summary The document provides details from NSPI's responses to SBA data requests regarding the Cost of Service Study Process. It includes WACC, system depreciation, O&M costs, property tax, and ELCC values for new thermal units. These figures are relevant to the 2022 NSUARB approval and the 2020 IRP.

COSS SBA DR-6 Attachment 1 Page 5 of 24 212150 AP LIFE ADD 212250 AP DC PENSION 212300 AP DB PENSION 212350 AP CHARITY DONATIONS EMPLOYEES 212355 AP CHARITY DONATIONS EMPLOYEES IWK 212400 AP SOCIAL CLUB DUES 212500 AP UNION DUES LIVING AWA...

AI summary The document lists various accounts and liabilities, including pension funds, union dues, tax payables, and accrued liabilities. These entries are part of financial records related to Nova Scotia Power and other entities.

COSS SBA DR-6 Attachment 1 Page 13 of 24 504450 REG GRID SALES FUEL DIESEL 505050 REG FUEL AFFILIATES 507050 REG FAM INCENTIVE 507100 REG FUEL ADJUSTMENT 507150 REG FIXED COST RECOVERY ADJUSTMENT 507200 REG RATE STABILIZATION ADJ FIXED COS...

AI summary This document contains a list of regulatory codes related to fuel, labour, expenses, and other operational categories. It includes entries such as fuel adjustment, fixed cost recovery, and various labour and expense classifications. These codes are part of a larger regulatory and financial framework, but specific details are redacted.

COSS SBA DR-6 Attachment 1 Page 15 of 24 533550 INSURANCE 533700 CORPORATE CREDIT CARD CLEARING 533750 RENT 533800 FLEET REPAIRS 533850 NON REGULATORY COST RECOVERY 533900 COST RECOVERY 533950 COST RECOVERY PREFERRED COMPENSATION UNITS 534...

AI summary This document lists various cost categories and financial items related to corporate and operational expenses, including insurance, rent, fleet repairs, warranty service contracts, training development, commissions, write-offs, and others. These items are likely part of a financial or regulatory filing related to cost recovery and corporate operations.

(Source: 2023 COSS and OATT spreadsheets) EXHIBIT 4.1 NOVA SCOTIA POWER INC. TRANSMISSION OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2023 (IN THOUSANDS OF DOLLARS) ABOVE-THE LINE RATE CLASSES BELOW-THE LINE RATE CLASSES TOTAL OPER...

AI summary The document provides a detailed breakdown of Nova Scotia Power Inc.'s transmission operating expenses for the year ending December 31, 2023, including operating and maintenance costs, depreciation, taxes, interest, and retained earnings. The data is presented in thousands of dollars and includes comparisons between OATT and COSS figures, showing no significant variance.

- 4.2.4 STORAGE - 4.2.4.1 NSP CURRENT APPROACH - 3 NS Power's current methodology does not include a generation storage sub-function - 4 hence, there are no generation storage assets in NS Power's COSS. - 4.2.4.2 NSP PROPOSED APPROACH - 6...

AI summary Nova Scotia Power (NSP) outlines its current and proposed approaches for classifying storage as a generation asset and allocating rate base, depreciation, and OM&A. NSP does not currently include generation storage in its Cost of Service Study (COSS) but proposes classifying storage using the System Load Factor. Elenchus supports this approach. NSP also maintains its current method for allocating rate base, depreciation, and OM&A based on demand and energy classifications.

10 4.3.3.2 NSP PROPOSED APPROACH - 11 NS Power is proposing to allocate demand-classified radial-to-generation and storage - 12 that is functionalized to generation, using the 3CP allocator, consistent with the allocator - 13 used to alloc...

AI summary NS Power is proposing a method to allocate demand-classified radial-to-generation and storage using the 3CP allocator, aligning with the approach used for other generation rate base, depreciation, and OM&A. Energy-classified radial-to-generation and storage are to be allocated based on annual energy consumption.

5.2.1.1 NSP CURRENT APPROACH - 9 EHV and HV transmission rate base, depreciation, and OM&A is classified to demand - and energy using the system load factor.

AI summary NSP classifies EHV and HV transmission rate base, depreciation, and OM&A based on system load factor for demand and energy.

40 1) Figures presented reflect whole numbers which may cause rounding differences on some line items. 1 Requirement: 2 3 Operating, maintenance and general expenses breakdown (by major component) in 4 real and nominal dollars for the test...

AI summary The text outlines a requirement to provide an operating, maintenance, and general expenses breakdown by major component in real and nominal dollars for the test year and five historic years. A submission is requested, referencing Partially Confidential Attachment 1.

Nova Scotia Power Inc. Operating, Maintenance and General Expenses Years Ended December 31st

AI summary The document presents Nova Scotia Power Inc.'s operating, maintenance, and general expenses for the years ending December 31st. It provides a financial overview of the company's expenditures during this period.

53 54 Constant Dollars 2024 202 4 Actual 2025BP 2026F 2027F 55 Power Production $ 8.8 $ 9.2 $ 9.2 $ 9.4 56 Enterpise Asset Management & Project Implementation 0.9 8.0 0.8 0.9 57 Environment 0.2 0.3 0.3 0.3 58 Energy Delivery (Formerly Cust...

AI summary The table presents financial data for various operational and corporate categories from 2024 to 2027, including power production, asset management, environment, energy delivery, customer experience, and corporate adjustments. It includes figures in constant dollars and highlights changes over time.

- Diesel Commodity Consumed - Transportation Costs - Quality Testing and Inventory Measurement Costs

AI summary The text lists various costs associated with diesel consumption, transportation, and quality testing and inventory measurement. These are likely operational or logistical expenses related to energy or utility operations.

A-7 PLANT MAINTENANCE ( Confidential/Non-Confidential ) - Power Production unit maintenance schedule (confidential) of all units (planned vs actual and budget schedule) - OM&G and Capital spending by station (non-confidential) - Reporting...

AI summary The document outlines the structure and content of the A-7 Plant Maintenance report, which includes maintenance schedules, OM&G and capital spending by station, reporting periods, and identification of major projects. The first report will establish a baseline for historical data.

1 Requirement: 2 3 o Maintenance and repair expenses. 4 o Insurance and security costs. 5 o Salaries and benefits. 6 o Pension expenses, noting any changes to assumptions since the last rate filing. 7 o Other post-retirement benefits. 8 o...

AI summary The document outlines various operating, maintenance, and general expenses required for submission, including maintenance and repair expenses, insurance, salaries, pensions, billing, and regulatory expenses. Nova Scotia Power Inc. is referenced as the submitter, and a partially confidential attachment is mentioned for detailed information.

Net cash provided by operating activities decreased $201 million to $95 million in 2025 compared to $296 million in 2024. Operating cash flow before change in working capital decreased $101 million primarily due to 2024 including proceeds...

AI summary Net cash from operating activities dropped significantly in 2025 compared to 2024. The decrease was mainly driven by higher fuel and purchased power costs, partially offset by increased electric revenues and tax credits. Changes in working capital also contributed to the decline, primarily due to accounts receivable and fuel inventory changes.

Q2 2025 compared to Q2 2024 Q2 2025 net income decreased by $12 million compared to Q2 2024. The decrease is due to increased OM&G expenses, and increased depreciation and amortization due to increased PP&E in service. OM&G expenses increa...

AI summary Q2 2025 net income decreased by $12 million compared to Q2 2024, primarily due to increased OM&G expenses and higher depreciation and amortization from increased PP&E in service. OM&G expenses rose due to higher power generation costs and those related to a Cybersecurity Incident.

Q3 2024 compared to Q3 2023 Q3 2024 net income increased by $4 million compared to Q3 2023. The increase is due to decreased OM&G expenses due to lower storm restoration costs, partially offset by higher costs for power generation operatio...

AI summary Q3 2024 net income increased by $4 million compared to Q3 2023, driven by decreased OM&G expenses from lower storm restoration costs, although this was partially offset by higher costs in power generation, transmission, and information technology.

Operating Expenses For Q2 2025, operating expenses increased $264 million compared to Q2 2024 and, excluding charges related to the pending sale of NMGC of $75 million, increased $189 million. Year-to-date operating expenses increased $434...

AI summary Operating expenses increased significantly in Q2 2025 compared to Q2 2024, driven by higher natural gas prices, storm cost recognition, and increased depreciation. These increases were partially offset by lower OM&G at Corporate and the timing of compensation expenses. The year-over-year increase was also influenced by a weaker CAD.

Regulated Operating, Maintenance and General For the Three months ended Six months ended millions of Canadian dollars June 30 June 30 Actual Test Year Prior Year Actual Test Year Prior Year (1) 2025 (2) 2024 2024 (1) 2025 (1) 2024 2024 Pow...

AI summary The document presents financial data for Regulated Operating, Maintenance, and General expenses for the three and six months ended June 30, 2025, comparing actual figures with test year and prior year figures. It highlights the impact of cybersecurity incidents on financial reporting and forecast adjustments.

Executive Summary - ◼ Nova Scotia Power Inc. (NSPI) commissioned this benchmarking effort in 2024 to provide useful directional-based insights around OM&G and capital costs, allowing NSPI to better understand how its overall performance co...

AI summary Nova Scotia Power Inc. (NSPI) conducted a benchmarking study in 2024 to compare its OM&G and capital costs with peers. The study found that NSPI's OM&G costs are generally favorable, with most metrics in the first quartile, though the gap with peers has narrowed due to increased expenses and customer growth. NSPI's capital employed per retail customer is below the median.

OM&G and Reliability Metrics 5-Year Average NSPI Category Median NSPI Performance Total OM&G Total OM&G as % of Retail Revenue 30% 18% Total OM&G per Retail Customer $1,023 $506 Total OM&G per Retail MWh Sold $40.28 $26.44 Power Production...

AI summary The document presents a comparative analysis of OM&G (Operating, Maintenance & General) costs across various categories for NSPI (Nova Scotia Power Inc.) and the 5-year average. It highlights metrics such as OM&G as a percentage of retail revenue, OM&G per customer, and OM&G per MWh sold, showing NSPI's performance relative to the median. The data includes transmission and distribution costs, administrative and general expenses, and provides a visual key to interpret performance trends.

Corporate Support Metrics Category Industry Group Median NSPI Performance Finance & Accounting Metrics Invoices Processed per Full Time Equivalent (FTE) 9,540 7,548 % Electronic Invoices/ Paperless Payments 50% 88% Finance & Accounting Cos...

AI summary The document presents corporate support metrics for NSPI, comparing its performance against industry group medians in areas such as finance, human resources, supply chain, and information technology. NSPI performs more favorably in some metrics and less favorably in others, with key indicators highlighting areas of strength and improvement opportunities.

EW1 – Total OM&G as Percent of Retail Revenue - ◼ On a 5-year average basis, NSPI Total OM&G\ as Percent of Retail Revenue is first quartile and third lowest among peers - ◼ NSPI Total OM&G as Percent of Retail Revenue increased 1 percenta...

AI summary NSPI's Total OM&G as a Percent of Retail Revenue has increased slightly over the past five years, while peer companies have seen a decline. NSPI's OM&G increased by 23% from 2019 to 2023, compared to a 9% decline in the peer median. Retail revenue for NSPI grew by 17%, while peer median retail revenue increased by 21%.

EW2 – Total OM&G per Retail Customer - ◼ On a 5-year average basis, NSPI Total OM&G\ per Retail Customer is first quartile and second lowest among peers - ◼ NSPI Total OM&G per Retail Customer increased 17.2% from 2019 to 2023 (4.0% CAGR)...

AI summary NSPI's Total OM&G per Retail Customer has increased significantly compared to peers over the past five years, with a 17.2% increase from 2019 to 2023, while the peer median increased only 3.3% over the same period. NSPI's OM&G per customer is in the first quartile and second lowest among peers.

EW3 – Total OM&G per Retail MWh Sold - ◼ On a 5-year average basis, NSPI Total OM&G\ per Retail MWh Sold is first quartile and fourth lowest among peers - ◼ NSPI Total OM&G per Retail MWh Sold increased 22% from 2019 to 2023 (5.1% CAGR) wh...

AI summary NSPI's Total OM&G per Retail MWh Sold has increased significantly compared to peers over the past five years, with a 22% increase from 2019 to 2023, while peer median Total OM&G per Retail MWh Sold increased by 9% over the same period. NSPI's OM&G costs are in the first quartile and fourth lowest among peers.

Summary Observations - ◼ NSPI Total OM&G as a Percent of Revenue, and on a per Revenue MWh Sold and per Retail Customer basis, are among the lowest in the peer group - ◼ While NSPI continues to perform well against its peers in these metri...

AI summary NSPI's Total OM&G expenses as a percentage of revenue, and on a per Revenue MWh Sold and per Retail Customer basis, are among the lowest in the peer group. While NSPI's performance has been strong, the gap between NSPI and its peers has decreased since 2021 due to faster growth in NSPI's Total OM&G expenses.

Observations - ◼ On a 5-year average basis, NSPI Distribution OM&G per Retail Customer is first quartile and second lowest among peers - ◼ NSPI Distribution OM&G per Retail Customer increased 26% from 2019 to 2023 (5.9% CAGR) while the pee...

AI summary NSPI Distribution OM&G per Retail Customer has increased significantly compared to peers over the 2019-2023 period, with a 26% increase in OM&G per customer and a 32% increase in nominal terms, while peer median OM&G increased only slightly.

Factors Contributing to Performance - ◼ The uptick in NSPI Distribution OM&G per Retail Customer in 2019 is primarily the result of increased spending related to storms, including the impact of Hurricane Dorian and the forestry ROW clearin...

AI summary The increase in NSPI Distribution OM&G per Retail Customer in 2019 was mainly due to increased spending related to storms, including Hurricane Dorian and the forestry ROW clearing program. Storm restoration expenses also rose significantly in 2023, reaching $44M, and were further influenced by customer growth and increased investment in reliability.

Factors Contributing to Performance - ◼ The uptick in NSPI Distribution OM&G per Retail MWh Sold in 2019 is primarily the result of increased spending related to storms, including the impact of Hurricane Dorian and the forestry ROW clearin...

AI summary The increase in NSPI Distribution OM&G per Retail MWh Sold in 2019 was mainly due to increased spending related to storms, including Hurricane Dorian and the forestry ROW clearing program. In 2023, the increase was attributed to customer growth, increased investment in reliability, and significant growth in customer requested work.

Observations - ◼ On a 5-year average basis, NSPI Distribution OM&G per Kilometer of Distribution Line is first quartile and third lowest among peers - ◼ NSPI Distribution OM&G per Kilometer of Distribution Line increased 28% from 2019 to 2...

AI summary NSPI's Distribution OM&G per Kilometer of Distribution Line is in the first quartile and third lowest among peers. From 2019 to 2023, NSPI's OM&G per Kilometer increased by 28%, compared to a 43% increase in the peer median. However, NSPI's total OM&G increased by 32%, while the peer median decreased by 1%. NSPI's kilometers of distribution line increased by 3.5%, while the peer median decreased by 5.4%.

Factors Contributing to Performance - ◼ The uptick in NSPI Distribution OM&G per kilometer of Distribution Line in 2019 is primarily the result of increased spending related to storms, including the impact of Hurricane Dorian and the fores...

AI summary The increase in NSPI Distribution OM&G per kilometer of Distribution Line in 2019 was mainly due to increased spending related to storms, including Hurricane Dorian and the forestry ROW clearing program. In 2023, the increase was attributed to customer growth, investment in reliability, and significant customer requested work.

Factors Contributing to Performance ◼ Cost increases can be attributed to several key factors. First, the adoption of unit flexible operations has led to higher operational costs due to the increased frequency of unit startups and shutdown...

AI summary Increased operational costs are attributed to unit flexible operations and environmental compliance requirements, which reduce operational efficiency. The text highlights the impact of frequent unit startups and shutdowns, as well as the effect of generating less energy on efficiency.

PP2-HFOST – Production OM&G per MWh Generated - ◼ On a 5-year average basis, Tufts Cove has the third lowest Production OM&G\ per MWh Generated in the peer group - ◼ Tufts Cove Production OM&G per MWh Generated decreased 11% from 2019 to 2...

AI summary Tufts Cove has the third lowest Production OM&G per MWh Generated in the peer group on a 5-year average basis. Tufts Cove's Production OM&G per MWh Generated decreased 11% from 2019 to 2023, while the median for the peer group increased 30% over the same period. NSPI does not track OM&G on a unit-by-unit basis.

2026-2027 GRA OP-03 Attachment 1 Page 35 of 87 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Power Production Metrics

AI summary The document discusses power production metrics, focusing on key performance indicators related to electricity generation and operational efficiency. It provides data on production output, operational costs, and other relevant metrics for the 2026-2027 period.

CS1 – Total Customer Accounts OM&G per Retail Customer - ◼ On a 5-year average basis, NSPI Total Customer Accounts OM&G per Retail Customer is first quartile and second lowest among peers - ◼ NSPI Total Customer Accounts OM&G per Retail Cu...

AI summary NSPI's Total Customer Accounts OM&G per Retail Customer has increased slightly over the past 5 years, but remains in the first quartile and second lowest among peers. The increase is lower compared to the peer median, which saw a higher growth rate in OM&G costs.

Observations - ◼ NSPI A&G OM&G as Percent of Retail Revenue is at the first/ second quartile line within the peer group - ◼ NSPI A&G OM&G as Percent of Retail Revenue decreased 0.4 percentage points from 2019 to 2023 while the peer median...

AI summary NSPI's A&G OM&G as a percentage of retail revenue has decreased slightly compared to the peer median, while retail revenue has increased at a lower rate than the peer median. NSPI's A&G OM&G costs have increased at a slower rate than the peer median over the same period.

Observations - ◼ NSPI A&G OM&G per Retail Customer is first quartile and second lowest among peers - ◼ NSPI A&G OM&G per Retail Customer increased 3% from 2019 to 2023 (0.7% CAGR) while the peer median A&G OM&G per Retail Customer decrease...

AI summary NSPI's A&G OM&G per retail customer is in the first quartile and second lowest among peers. While NSPI's A&G OM&G per customer increased slightly from 2019 to 2023, peer median costs rose more significantly. Both NSPI and peer median retail customer numbers increased by 5% over the same period.

Observations - ◼ NSPI A&G OM&G per Retail MWh Sold is at the first/second quartile line within the peer group - ◼ NSPI A&G OM&G per Retail MWh Sold increased 7% from 2019 to 2023 (1.6% CAGR) while the peer median A&G OM&G per Retail MWh So...

AI summary NSPI's A&G OM&G per Retail MWh Sold has increased compared to the peer group median, which decreased over the same period. NSPI's A&G OM&G costs also increased at a slower rate than the peer median. Retail MWh Sold for NSPI increased slightly, while the peer median increased more significantly.

Observations - ◼ NSPI Invoices Processed per Full Time Equivalent (FTE) is 21% below the industry group median - ◼ NSPI Invoices Processed per Full Time Equivalent decreased 7% between 2019 and 2023 (-1.8% CAGR) - ◼ NSPI Invoices Processed...

AI summary The document highlights NSPI's performance in processing invoices per FTE compared to industry benchmarks. While NSPI's invoices processed per FTE is 21% below the industry median, there has been a 7% decrease in invoices processed per FTE from 2019 to 2023, despite a 2% increase in the number of invoices processed and a 10% increase in FTEs performing the 'process accounts payable' function.

Factors Contributing to Performance ◼ NSPI's higher number of employees per HR Function FTE is partially as a result of the shared service structure in which NSPI is provided HR services from Emera Definition: Number of business entity emp...

AI summary NSPI has a higher number of employees per HR Function FTE due to its shared service structure, where HR services are provided by Emera. The metric is defined as the number of business entity employees divided by the number of FTEs responsible for developing and managing human capital, according to APQC benchmarks.

Observations - ◼ NSPI Number of PO Line Items Processed per FTE in 2023 is 38% lower than the industry group median - ◼ NSPI Number of PO Line Items Processed per FTE increased 7% between 2019 and 2023 - ◼ NSPI number of PO Line Items Proc...

AI summary The document presents observations on NSPI's procurement efficiency, noting that the number of PO line items processed per FTE in 2023 was 38% lower than the industry median, despite a 7% increase between 2019 and 2023. The number of FTEs processing orders remained flat during this period.

Observations - ◼ NSPI Number of POs Processed per FTE in 2023 is 5% higher than the industry group median - ◼ NSPI Number of POs Processed per FTE decreased 4% between 2019 and 2023 - ◼ NSPI number of POs Processed decreased 4% between 201...

AI summary The document compares NSPI's performance in processing purchase orders (POs) per FTE against industry benchmarks. NSPI's POs processed per FTE increased by 5% in 2023 compared to the industry median but decreased by 4% between 2019 and 2023, despite the number of FTEs remaining flat. This suggests some efficiency improvements but also a long-term decline in processing rates.

Information Technology (IT) Metrics

AI summary The document discusses IT metrics related to Nova Scotia Power Inc., including operational and maintenance costs and references to the American Productivity & Quality Center.

Recent Regulatory Activity Filed in April 2024 for new rates effective January 1, 2025. The FPSC reached a final decision on December 3rd, 2024 approving new revenues of $281M ($185M in 2025, $87M in 2026 and $9M USD in 2027). This reflect...

AI summary In April 2024, new rates were filed for implementation on January 1, 2025. The FPSC approved new revenues of $281M, including $185M in 2025, $87M in 2026, and $9M USD in 2027. The ROE midpoint increased to 10.5%, and equity thickness remained at 54%. Tampa Electric's operating expenses and capital expenditures were approved without a stay out requirement.

Rate Case $281M USD total revenue increase 2 Increase in ROE midpoint to 10.5% from 10.2% and no change to equity thickness 99% of operating expenses and capital expenditures approved No stay out period required

AI summary The rate case includes a $281M USD total revenue increase, an increase in the ROE midpoint to 10.5%, approval of 99% of operating expenses and capital expenditures, and no stay out period required.

Rate Case - $281M USD total revenue increase1 - Increase in ROE midpoint to 10.5% from 10.2% and no change to equity thickness - 99% of operating expenses and capital expenditures approved - No stay out period required

AI summary The Rate Case involves a $281M USD revenue increase, an increase in the ROE midpoint to 10.5%, approval of 99% of operating expenses and capital expenditures, and no stay out period required.

Recent Regulatory Activity The FPSC reached a final decision in December 2024 approving new revenues of $281M ($185M in 2025, $87M in 2026 and $9M in 2027). This reflects a 10.5% ROE midpoint (up from 10.2%) and a 54% equity thickness (unc...

AI summary The FPSC approved new revenues of $281M for Tampa Electric, with a 10.5% ROE midpoint and 54% equity thickness. Operating expenses and capital expenditures were substantially approved, and there is no stay out requirement.

Investment in the Transmission & Distribution ("T&D")System - •Investment in the T&D system in 2022 was $263M 1 - • In support of customer growth and improved reliability, the average investment in the T&D system has increased by 62% to $1...

AI summary Nova Scotia Power invested $263M in the T&D system in 2022. Since 2015, annual T&D investment has increased by 62% to $190M. Tree trimming spending has risen from $20M to $40M annually over the next five years, with $30M classified as capital investment and $10M as operating expense.

ACTIVITIES OF THE AUDIT COMMITTEE IN 2024 The Audit Committee met five (5) times in 2024. In accordance with its mandate as set out in the Audit Committee Charter, the Audit Committee performed the following key functions in 2024: - 1. Rev...

AI summary The Audit Committee met five times in 2024 and performed various functions including reviewing accounting and disclosure issues, credit and market price risk reports, tax reports, compliance reports, and financial statements. They also evaluated the performance of the Chief Financial Officer and external auditors, and approved updates to internal audit policies and fees for EY.

Scott Balfour Resignation All unvested PSUs, RSUs and stock options are forfeited. Terminated for cause All unvested PSUs, RSUs and stock options are forfeited. Terminated without cause Entitled to a lump sum equal to 24 months' compensati...

AI summary This section outlines the terms and conditions for Scott Balfour's resignation, termination, change of control, and retirement, including the handling of unvested PSUs, RSUs, and stock options under different scenarios.

3 $101,693,464 (11) OPER. & MAINT. - BIOMASS $12,703.2 OM&G (Overhead) $11,308,246 $10,208,428 $0 $8,077,671 $5,113,527 $5,503,002 $40,210,875 $655,505 $828,025 $3,244,111 $4,727,642 $0 $0 $0 $942,937 $942,937 $45,881,454 (12) OPER. & MAIN...

AI summary The text provides financial details related to operational and maintenance costs for biomass, LM6000, and other categories, including depreciation, grants, and interest expenses. These figures are part of a larger financial breakdown for a regulatory proceeding.

- 1. To maintain its current return on common equity of 9.0%, with an earnings band of 8.75% to 9.25%. The common equity ratio would also remain at 40%. - 2. The BCF amounts attributable to FAM customers be set at $927.3 million for 2026 a...

AI summary Nova Scotia Power Inc. (NSP) proposes maintaining a 9.0% return on common equity, setting BCF amounts for 2026-2027, administrative amendments, deferring study costs, a securitization approach to save $90M, potential interest expense deferrals, a Port Hawkesbury Paper deferral, and an updated depreciation study excluding certain assets.

PARTIALLY CONFIDENTIAL 1 Request IR-2: 2 3 Reference: Application, pp. 1-2. 4 5 Please describe the specific maintenance activities related to the costs described in the 6 application for partially owned wind generators and fully owned win...

AI summary The response to Request IR-2 outlines the maintenance activities for wind generators, including scheduled and unscheduled maintenance, and explains that variable maintenance costs are based on annual generation. Premiums and discounts are calculated based on generation compared to a base volume.

Rating Report Nova Scotia Power Inc. DBRS.COM 11 For the year ended December 31 Earnings Quality/Operating Efficiency 2017 2016 2015 2014 2013 2012 Fuel for generation and purchase power/Revenues 35.7% 36.1% 38.3% 38.0% 41.7% 40.0% EBIT ma...

AI summary The document presents financial and operational metrics for Nova Scotia Power Inc. (NSPI) over several years, including earnings quality, operating efficiency, return on equity, customer growth, and cost structures. It provides data on metrics such as EBIT margin, profit margin, and total costs, along with details on customer accounts and rate base.

Outlook - DBRS Morningstar expects OCF to grow modestly because of rate-base growth and to be sufficient to cover capex requirements. - Total debt is expected to increase because of rate-base growth, but remain in line with regulatory para...

AI summary DBRS Morningstar anticipates modest growth in OCF due to rate-base growth, sufficient to cover capex needs. Total debt is expected to rise but stay within regulatory limits. NSPI is in a tax dispute with CRA, having prepaid $22.7 million of a $62.3 million dispute. DBRS expects Emera to support NSPI financially if needed.

Rating Report Nova Scotia Power Inc. For the year ended December 31 Earnings Quality/Operating Efficiency 2018 2017 2016 2015 2014 Fuel for generation and purchase power/Revenues 44.4% 35.7% 36.1% 38.3% 38.0% EBIT margin 37.6% 33.3% 31.2%...

AI summary The document provides a rating report for Nova Scotia Power Inc. with financial metrics including earnings quality, operating efficiency, profit margin, return on average equity, and customer growth over several years. It also includes details on costs, employee numbers, and rate base figures.

Page 13 of 15 Nova Scotia Power Inc. December 9, 2020 Operating Statistics For the year ended December 31 Earnings Quality/Operating Efficiency 2019 2018 2017 2016 2015 Fuel for generation and purchase power/Revenues (%) 46.4 44.4 35.7 36....

AI summary The document presents operating statistics for Nova Scotia Power Inc. from 2015 to 2019, including metrics such as fuel costs, revenue percentages, customer base growth, employee numbers, and various cost structures. It provides data on earnings quality, operating efficiency, and customer accounts across different sectors.

Page 11 of 14 Nova Scotia Power Inc. January 4, 2022 Operating Statistics For the year ended December 31 Earnings Quality/Operating Efficiency 2020 2019 2018 2017 2016 Fuel for generation and purchase power/Revenues (%) 48.3 46.4 44.4 35.7...

AI summary The document presents operating statistics for Nova Scotia Power Inc. from 2016 to 2020, including metrics like fuel costs, approved ROE, customer growth, and employee productivity. It also outlines total costs, customer accounts, and rate base figures, providing a detailed view of the company's financial and operational performance over the years.

Page 14 of 17 Nova Scotia Power Inc. January 19, 2023 Operating Statistics For the year ended December 31 Earnings Quality/Operating Efficiency 2021 2020 2019 2018 2017 Fuel for generation and purchase power/revenues (%) 54.4 48.3 46.4 44....

AI summary The document presents operating statistics for Nova Scotia Power Inc. from 2017 to 2021, including earnings quality, operating efficiency, customer base growth, and various cost metrics such as fuel costs, variable costs, and depreciation. It also includes data on customer accounts, employee numbers, and rate base figures.

Page 13 of 16 Nova Scotia Power Inc. January 12, 2024 Operating Statistics For the year ended December 31 Earnings Quality/Operating Efficiency 2022 2021 2020 2019 2018 Fuel for generation and purchase power/revenues (%) 56.7 54.4 48.3 46....

AI summary The document presents operating statistics for Nova Scotia Power Inc. over several years, including metrics such as earnings quality, operating efficiency, customer base growth, and various cost components like fuel, variable costs, and depreciation. It also details customer accounts and employee numbers across different sectors.

2026-2027 General Rate Application (M12451) NSPI Responses to GT Information Requests 1 Request IR-1: 2 3 Reference: N-3 page 36. 4 5 In reference to figure 7-1 in direct evidence N-3, page 36, please provide a schedule of total 6 OM&G by...

AI summary The document discusses a response to an information request regarding operating and maintenance (OM&G) costs for the 2026-2027 General Rate Application. NS Power indicates that it has not prepared a detailed schedule of total OM&G by nature but suggests that the information can be derived from Appendix 07C.

14 ($ million) Line Item (FOR-01) 2026 2027 Payroll Matching for DC and DB Plans OM&G (Labour Expense) 16.2 16.5 Current Service Cost of DB Plan not included in labour OM&G (Pension Expense) 5.5 7.6 Less: Supplementary Executive Retirement...

AI summary The table presents financial figures related to payroll matching and pension expenses for the years 2026 and 2027, including details on OM&G (Labour Expense) and OM&G (Pension Expense). It also includes a line item for a supplementary executive retirement plan and current service pension expense.

NON-CONFIDENTIAL 1 Request IR-19: 2 3 Reference: N-6 - 2026-2027 GRA Direct Evidence Appendix 7C Page 17-18 of 58 4 Per N-6, (Appendix 7C), page 17-18 of 58, we understand that labour has increased significantly over the period from 2024 c...

AI summary The document requests a breakdown of labour costs and positions related to information technology initiatives from 2024 to 2026/2027, including cybersecurity, technology upgrades, and new customer services. The response outlines the estimated costs and positions for these initiatives.

REDACTED 1 The increased consulting expense is due to the addition of the delivery/execution of the enhanced 2 Operational Technology (OT) Cyber Program in addition to continuing the Information 3 Technology (IT) Cyber Program. This is an...

AI summary The document outlines increased consulting expenses related to cyber security programs and data analytics tools. The enhanced OT Cyber Program and ongoing IT Cyber Program are cited as reasons for the increase, as well as annual testing of incident response plans and penetration testing. Expenses related to Tableau and Power BI improvements are also discussed.

15 2026 2027 Long Term Service Agreement $734,763 $912,120 Site costs, including 1 full time employee and maintenance expenses $185,820 $235,286 Service Fee paid to partner $50,000 $100,000 Total Grid Scale Battery OM&G $970,583 $1,247,406...

AI summary The text provides a table outlining the projected costs for the Long Term Service Agreement, site costs, and service fees for a Grid Scale Battery OM&G from 2026 to 2027. The costs are detailed in Canadian dollars.

16 Wiring Inspection Services increased $3.1 million, primarily due to significantly increased 17 demand for electrical inspections performed on behalf of the provincial Department of 18 Labour, Skills and Immigration because of increased...

AI summary Wiring Inspection Services increased by $3.1 million in 2024 due to higher demand for electrical inspections from the provincial Department of Labour, Skills and Immigration. This was driven by increased residential and commercial construction and renovation activities, leading to the recruitment of additional inspectors and an increase in employees from 43 to 53.

17 T&D Contractor Management Labour Expense ($ thousand) 2024 Compliance Restated 2024 Actual 2026 Forecast 2026 Forecast vs 2024 Compliance Restated 2026 Forecast vs 2024 Actual Factor Driving Variance System Planning and Grid Integration...

AI summary The table outlines labor expenses for various T&D contractors in 2024 and 2026, showing variances and the factors driving them, such as transfers to NSIESO and increased staffing. The data includes compliance restated figures, actuals, and forecasts.

NON-CONFIDENTIAL T&D Contractor Management Labour Expense ($ thousand) 2024 Compliance Restated 2024 Actual 2026 Forecast 2026 Forecast vs 2024 Compliance Restated 2026 Forecast vs 2024 Actual Factor Driving Variance vacancies filled Prote...

AI summary The document presents a table showing the management and labour expenses for transmission and distribution (T&D) contractors, including actual figures for 2024 and forecasts for 2026, along with the factors driving the variance between these figures. The reorganization of the Meter Shop from Energy Delivery Services in 2024 is noted as a factor affecting expenses.

REDACTED 1 Request IR-51: 2 3 Reference: N-6 - 2026-2027 GRA Direct Evidence Appendix 7C Page 53-54 of 58 4 5 Per N-6, (Appendix 7C), page 53-54 of 58, we understand that labour has increased from 6 2024 compliance restated and 2024 actual...

AI summary The document discusses a request related to increased labor costs for grid modernization and customer integration from 2024 to 2026, specifically addressing additional resources in the Smart Meter Operations Center and salary escalations. The response directs to other exhibits and documents for detailed information.

13 Workgroup 2024 2024 2026 GRA Driver of increase Compliance Actuals Customer $91,000 $298,000 $607,000 Increase in third-party fees for Experience Customer Satisfaction Survey & Metrics Contract for Customer First program training and co...

AI summary The table presents workgroup expenditures related to compliance, customer experience, operating systems, and technical services from 2024 to 2026, highlighting increases in third-party fees and maintenance costs for various programs and systems.

Notes: - About 530,000 meters overall - o 525,000 are smart meters - o Essentially roll out is complete. - New smart meters being installed as new customers being added - When did the smart meters first begin being installed? - o Started O...

AI summary The document discusses the deployment and management of smart meters in Nova Scotia, including installation timelines, warranty terms, replacement of legacy meters, and maintenance practices. It outlines the process for testing and extending the life of meters, as well as the lifecycle and expected longevity of both smart and legacy meters.

Appendix "A" GRA Element Settlement Terms Rates a) Rates are proposed to be effective January 1, 2026 and the Parties will make all reasonable efforts to facilitate and support a process that will result in this outcome. b) Subject to the...

AI summary The document outlines settlement terms for a regulatory proceeding in Nova Scotia, including proposed rate increases of 2.1% for 2026 and 2027, a reduction in depreciation rates to save approximately $20M/year, and agreement on operation and maintenance expense amounts with reductions detailed in Appendix B.

Regulated Operating, Maintenance and General For the Three months ended Year ended millions of Canadian dollars December 31 December 31 Actual Test Year Prior Year Actual Test Year Prior Year 2024 (1) 2024 2023 2024 (1) 2024 2023 Power Pro...

AI summary The document provides a financial summary of operating, maintenance, and general expenses for a regulated entity, including figures for various departments and adjustments over different time periods, with notes indicating the data structure and context.

As at December 31, 2024, future minimum lease payments to be received for each of the next five years and in aggregate thereafter are as follows: millions of dollars 2025 2026 2027 2028 2029 Thereafter Total Minimum lease payments to be re...

AI summary The text presents a table showing future minimum lease payments to be received by the company for each of the next five years and in aggregate thereafter, as of December 31, 2024. The section title 'RELATED PARTY TRANSACTIONS' suggests that the following content will discuss transactions involving related parties.

(3) Future interest payments are calculated based on the assumption that all debt is outstanding until maturity. For debt instruments with variable rates, interest is calculated for all future periods using the rates in effect as at Decemb...

AI summary The text outlines various financial and operational commitments, including future interest payments based on outstanding debt, purchasing commitments for fuel transportation, outsourced management services, pension obligations, and operating leases. These details are part of a regulatory proceeding analyzing a company's financial responsibilities.

9 (c) The Tufts Cove Wharf / Buoy Chain Inspection and Maintenance Costs have been removed from the Tufts Cove and Combustion Turbines OM&G forecast for 2026 and 2027. The NS Power-Owned Variable Production Costs, which includes third part...

AI summary The Tufts Cove Wharf / Buoy Chain Inspection and Maintenance Costs have been removed from the Tufts Cove and Combustion Turbines OM&G forecast for 2026 and 2027. NS Power-Owned Variable Production Costs, including third-party production bonuses and penalties for NS Power-owned Wind Generation, have been removed from the Wind Hydro & Solar OM&G forecast for 2026 and 2027.

Request IR-46: (a) Please identify the amount budgeted in proposed rates for OM&G costs for vegetation management in 2026 and 2027. (b) Please provide a table showing the amount of OM&G funds spent on vegetation management for each year fr...

AI summary The request asks for budgeted OM&G costs for vegetation management in 2026 and 2027, along with a table of OM&G and capital funds spent on vegetation management and related work orders from 2019 to 2024. The response has not been provided yet.

the period: 2022 2023 2024 2025 2026 Operating costs ($ million) 283.6 288.8 297.4 316.2 321.6 Increase ($ million) 5.2 8.6 18.7 5.5 Percent Change 1.8 3.0 6.3 1.7 Response IR-48:

AI summary The table shows operating costs increasing from 2022 to 2026, with the highest increase occurring between 2024 and 2025. The response 'IR-48' is referenced, which may relate to a specific regulatory response or decision.

2 All GRA and Cost of Service Study costs are external and incremental costs. NS Power 3 does not track internal GRA costs. Please note that $0.8M of GRA expense was incurred 4 in 2021 but was expensed in 2022 as NS Power had initially pro...

AI summary The text discusses the external and incremental costs associated with GRA and Cost of Service Study, noting that NS Power expensed some GRA costs in 2022 after initially proposing to defer and amortize them. It also mentions that costs for the 2026-2027 GRA are not included in current OM&G expense figures.

1 Request IR-50: 2 3 Reference: Exhibit N-3 GRA Direct Evidence, Section 7.3 Five-Year Operating Cost 4 Forecast. 5 6 On page 36, NS Power stated that "The consensus approach to this GRA results in a greater 7 year-over-year increase from...

AI summary The document discusses NS Power's forecast for operating costs from 2025 to 2030, specifically addressing the increase in expenses from 2027 to 2028 and the reduction from 2029 to 2030. It references a consensus agreement with customer representatives and explains the methodology used to forecast OM&G expenses.

1 (c) NS Power understands this question to be referring to the $22 million increase in OM&G 2 expense from 2027 to 2028 as opposed to $16 million as stated in the question. Please see 3 the table below:

AI summary NS Power clarifies that the increase in OM&G expense from $16 million to $22 million refers to the change from 2027 to 2028, as indicated in the provided table.

4 Component Contribution ($ millions) Reduction to 2027 OM&G per Consensus Agreement 9.0 Inflation 7.3 Increased Pension Expense 2.2 Increased Corporate Expense (IT and Insurance) 1.7 Decreased Administrative Overhead 1.7 Total 22.1 5

AI summary The document outlines various financial contributions and adjustments, including reductions in operational and maintenance costs, inflation impacts, increased pension and corporate expenses, and decreased administrative overhead, totaling $22.1 million.

(d) The decreased OM&G forecast in 2030 as compared to 2029 is primarily due to a forecast reduction of $25.5 million in the Thermal Plants operating group due to the anticipated retirement of certain plants and facilities partially offset...

AI summary The 2030 OM&G forecast decrease is mainly due to the retirement of certain thermal plants and facilities, consistent with the Decarbonization Deferral Account, partially offset by reduced administrative overhead and inflationary increases in other operating groups.

REDACTED 1 Request IR-51: 2 3 Reference: Exhibit N-6, Appendix 7A. 4 5 Please explain the basis for the labour inflation rates noted on page 6 in Appendix 7A. 6 7 Response IR-51: 8 9 The labour inflation rates for union employees were dete...

AI summary The document discusses labour inflation rates based on a collective agreement and economic indicators, as well as actual operating expenses related to the Nova Scotia Block. NS Power provided explanations for these figures, citing a 4% increase in union wages and data from Mercer, while noting that the Nova Scotia Block was not the primary driver of increased expenses.

12 Response IR-55: 13 14 (a) NS Power is not of the opinion that the approved deferred recovery of Post Tropical Storm 15 Fiona costs makes it inappropriate to include these costs when illustrating a complete 16 picture of storm costs for...

AI summary NS Power argues that including Post Tropical Storm Fiona costs in the illustration of storm costs for 2020-2024 is appropriate, as the figure was intended to show the calculation of proposed storm Level 3 and 4 OM&G expenses using prior period OM&G expenses as a starting point, and Fiona costs were not included in those prior expenses.

22 (b) Please see the table below: ($ million) 2020 2021 2022 2023 2024 2020-2024 Average 6 turbines, which was 4,525 GWh estimated capacity and 6,148 GWh used capacity, appears 7 to be one of the primary drivers for operating expense incr...

AI summary The document discusses increased operating expenses in 2024 due to higher thermal unit utilization, driven by reduced imports and lower renewable generation. NS Power expects similar expense levels in 2025–2027, driven by flexible operations to integrate new renewable resources and battery storage.

NON-CONFIDENTIAL 1 Request IR-62: 3 (a) The increase of $2.3 million for labour from the 2024 Compliance forecast is primarily due 4 to additional resources in the Safety department to focus on further reducing serious injury 5 frequency a...

AI summary The document discusses an increase in labour costs for NS Power due to additional resources in the Safety department and the need to attract skilled employees and support Diversity, Equity and Inclusion programs. It also outlines an increase in consulting expenses, primarily driven by increased medical consulting expenses and the decision to purchase these services from a third-party.

(d) No capital investment related to Tableau or PowerBI has exceeded the materiality threshold of $1 million that would require a capital application to the NSEB. 1 Request IR-65: 2 3 Reference: Exhibit N-6(ii), Tufts Cove and Combustion T...

AI summary The document discusses the increase in materials expense forecast for NS Power, attributing it to higher-than-expected inflation and increased unit utilization at Tufts Cove. The response explains that actual inflation rates exceeded initial forecasts, and maintenance requirements due to sustained unit utilization and completed projects have increased material costs.

Request IR-66: Reference: Exhibit N-6(ii), Control Center - There is a 42% forecasted increase in labour expense for 2026 over 2024 actuals in this category (as well as a significant projected increase over 2025 budget) despite a reduction...

AI summary The document discusses a 42% increase in labour expense for 2026 in the Control Center group, despite a reduction in employee count due to a transfer to the NSIESO. The increase is attributed to additional employees needed for operational requirements, specifically due to increased IPP interconnection requests and the FAM Audit Dispatch Study.

(b) Year Number of FTEs 2024 Actuals 64 due to vacancies at December 31 2025 Budget 76 2026 GRA 81 2027 GRA 43 as FTEs transferred to the IESO-NS 2028 NA – no forecast numbers available 1 Request IR-67: 2 3 Reference: Exhibit N-6(ii), Tran...

AI summary The text discusses a 133% increase in contracts expense in 2024 compared to the forecast, attributed to increased maintenance on aging fleet vehicles, higher utility services costs, and inflation. The response highlights the need for more vehicles due to increased workloads and supply chain challenges, as well as third-party work costs recovered through non-electric revenue.

Table of Contents (Cont'd) - Capital Additions Metrics - Capital Employed per Retail Customer - Total Plant Additions as Percent of Total Electric Plant - Total Plant Additions as Percent of Depreciation Expense - Production Additions as P...

AI summary The document outlines various metrics related to capital additions, finance and accounting, human resources, supply chain, and information technology. These metrics include percentages, costs, and efficiencies across different operational areas, with summary observations provided for each section.

Executive Summary - Nova Scotia Power Inc. (NSPI) commissioned this benchmarking effort in 2024 to provide useful directional-based insights around OM&G and capital costs, allowing NSPI to better understand how its overall performance comp...

AI summary Nova Scotia Power Inc. (NSPI) conducted a benchmarking study in 2024 comparing its OM&G and capital costs to those of peer companies. The study found that NSPI's OM&G costs are generally favorable, placing it in the first quartile for most metrics, although the positive gap with peers has narrowed due to factors like 2023 storm expenses and increased investment in reliability.

OM&G and Reliability Metrics 5-Year Average NSPI Category Median NSPI Performance Total OM&G Total OM&G as % of Retail Revenue 30% 29% 18% Total OM&G per Retail Customer $1,023 $951 $506 Total OM&G per Retail MWh Sold $40.28 $39.67 $26.44...

AI summary The document presents a comparative analysis of Nova Scotia Power Inc.'s (NSPI) Operations and Maintenance (OM&G) costs across various categories, including total OM&G, power production, customer accounts, transmission and distribution, and administrative and general expenses. Metrics are compared against industry medians and 5-year averages, highlighting NSPI's performance relative to benchmarks.

Corporate Support Metrics Category Industry Group Median NSPI 2023 NSPI Performance Finance & Accounting Metrics Invoices Processed per Full Time Equivalent (FTE) 9,540 7,548 % Electronic Invoices/ Paperless Payments 50% 88% Finance & Acco...

AI summary The document presents corporate support metrics for NSPI, comparing its performance with industry group medians across various categories including finance, human resources, supply chain, and information technology. Metrics such as invoices processed per FTE, HR costs, procurement costs, and IT expenditures are analyzed to evaluate NSPI's efficiency and performance relative to the industry median.

Presentation of Results – Operational Metrics Pages presenting operational metrics (i.e., enterprise-wide, transmission & distribution, power production, and customer operations) will resemble the figure below. - Top left chart: NSPI's res...

AI summary This section presents operational metrics for NSPI relative to peer utilities, including 5-year averages and trends from 2019 to 2023. Charts and benchmarking results are used to evaluate performance against industry peers.

EW1 – Total OM&G as Percent of Retail Revenue - On a 5-year average basis, NSPI Total OM&G\ as Percent of Retail Revenue is first quartile and third lowest among peers - NSPI Total OM&G as Percent of Retail Revenue increased 1 percentage p...

AI summary NSPI's Total OM&G as a percentage of Retail Revenue has increased slightly over the past five years, though it remains in the first quartile and third lowest among peers. While NSPI's OM&G increased by 23% from 2019 to 2023, peer median OM&G increased by 18% over the same period. Retail revenue for NSPI rose by 17% compared to a peer median increase of 14% to 21%.

EW2 – Total OM&G per Retail Customer - On a 5-year average basis, NSPI Total OM&G\ per Retail Customer is first quartile and second lowest among peers - NSPI Total OM&G per Retail Customer increased 17.2% from 2019 to 2023 (4.0% CAGR) whil...

AI summary NSPI's Total OM&G per Retail Customer has increased significantly from 2019 to 2023, outpacing the peer median in both nominal and CAGR terms. Despite this, NSPI remains in the first quartile and second lowest among peers on a 5-year average basis.

EW3 – Total OM&G per Retail MWh Sold - On a 5-year average basis, NSPI Total OM&G\ per Retail MWh Sold is first quartile and fourth lowest among peers - NSPI Total OM&G per Retail MWh Sold increased 22% from 2019 to 2023 (5.1% CAGR) while...

AI summary NSPI's Total OM&G per Retail MWh Sold has increased significantly over the past five years, with a 22% increase from 2019 to 2023, compared to a 14% increase in the peer median. NSPI's performance places it in the first quartile and fourth lowest among peers in terms of OM&G costs.

Summary Observations - NSPI Total OM&G as a Percent of Revenue, and on a per Revenue MWh Sold and per Retail Customer basis, are among the lowest in the peer group - While NSPI continues to perform well against its peers in these metrics,...

AI summary NSPI's Total OM&G expenses as a percentage of revenue and on a per revenue MWh sold and per retail customer basis are among the lowest in the peer group. While NSPI has performed well against its peers, the gap has decreased since 2021 as NSPI's OM&G expenses grew faster than its peers.

TD2 – Transmission OM&G per Km of Transmission Line - On a 5-year average basis, NSPI Transmission OM&G per Kilometer of Transmission Line is first quartile and second lowest among peers - NSPI Transmission OM&G per Kilometer of Transmissi...

AI summary NSPI's Transmission OM&G per Kilometer of Transmission Line has increased significantly compared to peers, with a 85% rise from 2019 to 2023, outpacing the peer median increase of 17% over the same period. NSPI's OM&G costs are in the first quartile and second lowest among peers on a 5-year average basis.

Observations - On a 5-year average basis, NSPI Distribution OM&G per Retail Customer is first quartile and second lowest among peers - NSPI Distribution OM&G per Retail Customer increased 26% from 2019 to 2023 (5.9% CAGR) while the peer me...

AI summary NSPI's Distribution OM&G per Retail Customer has increased significantly over the past five years, outpacing peer performance. While NSPI's costs rose 26% and 32% in real and nominal terms respectively, peer median costs showed minimal changes. Both NSPI and peers experienced a 5% increase in the number of retail customers.

Factors Contributing to Performance - The uptick in NSPI Distribution OM&G per Retail Customer in 2019 is primarily the result of increased spending related to storms, including the impact of Hurricane Dorian and the forestry ROW clearing...

AI summary The increase in NSPI Distribution OM&G per Retail Customer in 2019 was primarily due to increased spending related to storms, such as Hurricane Dorian and the forestry ROW clearing program. In 2023, NSPI experienced elevated storm restoration expenses of $44M, as well as increased Distribution OM&G expenses due to customer growth, investment in reliability, and customer requested work.

Observations - On a 5-year average basis, NSPI Distribution OM&G per Retail MWh Sold is first quartile and third lowest among peers - NSPI Distribution OM&G per Retail MWh Sold increased 31% from 2019 to 2023 (7.0% CAGR) while the peer med...

AI summary NSPI's Distribution OM&G per Retail MWh Sold has shown significant fluctuations compared to peers, with a 31% increase from 2019 to 2023, while peer median values increased by 25-26%. NSPI's performance was lower than peers in 2020, 2021, and 2022, but aligned in 2019 and 2023. Retail MWh Sold increased slightly for NSPI but decreased for peers.

Factors Contributing to Performance - The uptick in NSPI Distribution OM&G per Retail MWh Sold in 2019 is primarily the result of increased spending related to storms, including the impact of Hurricane Dorian and the forestry ROW clearing...

AI summary The increase in NSPI Distribution OM&G per Retail MWh Sold in 2019 was mainly due to increased spending related to storms, including Hurricane Dorian and the forestry ROW clearing program. In 2023, Distribution OM&G expenses rose further due to customer growth, increased investment in reliability, and significant customer requested work.

Observations - On a 5-year average basis, NSPI Distribution OM&G per Kilometer of Distribution Line is at the first/second quartile line and third lowest among peers - NSPI Distribution OM&G per Kilometer of Distribution Line increased 28%...

AI summary NSPI's Distribution OM&G per Kilometer of Distribution Line has grown at a slower rate compared to peers over the past five years, with NSPI's OM&G increasing by 28% from 2019 to 2023, while the peer median increased by 52% over the same period.

Factors Contributing to Performance - The uptick in NSPI Distribution OM&G per kilometer of Distribution Line in 2019 is primarily the result of increased spending related to storms, including the impact of Hurricane Dorian and the forestr...

AI summary The increase in NSPI Distribution OM&G per kilometer of Distribution Line in 2019 was mainly due to increased spending related to storms, such as Hurricane Dorian and the forestry ROW clearing program. In 2023, the increase was also influenced by customer growth, increased investment in reliability, and significant customer requested work.

Factors Contributing to Performance Cost increases can be attributed to several key factors. First, the adoption of unit flexible operations has led to higher operational costs due to the increased frequency of unit startups and shutdowns....

AI summary Cost increases are attributed to unit flexible operations leading to higher operational costs and environmental compliance requirements reducing operational efficiency. These factors are discussed in the context of performance analysis.

PP2-CoalST – Production OM&G per MWh Generated - On a 5-year average basis, NSPI Production OM&G\ per MWh Generated for Trenton Pictou, Point Tupper, and Lingan are among the five lowest in the peer group - Production OM&G per MWh Generate...

AI summary NSPI's Production OM&G per MWh Generated increased significantly for Lingan, Point Tupper, and Trenton Pictou from 2019 to 2023, despite a 41% decrease in MWh Generated. Peer group comparisons show NSPI's plants have some of the lowest OM&G costs. Data for retired plants is not available for 2023.

PP2-HFOST – Production OM&G per MWh Generated - On a 5-year average basis, Tufts Cove has the third lowest Production OM&G\ per MWh Generated in the peer group - Tufts Cove Production OM&G per MWh Generated decreased 11% from 2019 to 2023...

AI summary Tufts Cove has the third lowest Production OM&G per MWh Generated in the peer group over a 5-year average. Tufts Cove's Production OM&G per MWh Generated decreased by 11% from 2019 to 2023, while the median for the peer group increased by 30% over the same period.

PP2-CC – Production OM&G per MWh Generated - On a 5-year average basis, Tufts Cove combined cycle plant Production OM&G\ per MWh Generated is the lowest in the peer group - Production OM&G per MWh Generated for the Tufts Cove combined cycl...

AI summary The Tufts Cove combined cycle plant has the lowest 5-year average Production OM&G per MWh Generated among its peer group. Between 2019 and 2023, the plant's Production OM&G per MWh increased by 22%, while the peer group's median increased by 47%. The Tufts Cove plant's OM&G increased by 54% during the same period, despite a 27% increase in MWh Generated.

CS1 – Total Customer Accounts OM&G per Retail Customer - On a 5-year average basis, NSPI Total Customer Accounts OM&G per Retail Customer is first quartile and second lowest among peers - NSPI Total Customer Accounts OM&G per Retail Custom...

AI summary NSPI's Total Customer Accounts OM&G per Retail Customer has increased by 6% from 2019 to 2023, with a 1.4% CAGR, while the peer median increased by 10% (2.5% CAGR). NSPI's OM&G increased by 11% in nominal terms, compared to the peer median's 17% increase. Both NSPI and the peer median saw a 5% increase in the number of Retail Customers over the same period.

CS2 – Total Customer Accounts OM&G per Retail MWh Sold - On a 5-year average basis, NSPI Total Customer Accounts OM&G per Retail MWh Sold is just within at the first/second quartile line compared to peers - NSPI Total Customer Accounts OM&...

AI summary This section compares NSPI's Total Customer Accounts OM&G per Retail MWh Sold to peer companies over a 5-year period. NSPI's OM&G per Retail MWh Sold increased by 10% from 2019 to 2023, while the peer median increased by 21% to 16% over the same period. NSPI's Retail MWh Sold increased slightly, while peer median Retail MWh Sold decreased or increased marginally.

AG2 – A&G OM&G per Retail Customer

AI summary The document presents figures related to Administrative and General Operations and Maintenance (A&G OM&G) costs per retail customer. These figures are part of a regulatory proceeding analyzing operational expenses and cost structures.

Observations - NSPI A&G OM&G per Retail Customer is first quartile and second lowest among peers - NSPI A&G OM&G per Retail Customer increased 3% from 2019 to 2023 (0.7% CAGR) while the peer median A&G OM&G per Retail Customer decreased 14...

AI summary The text compares NSPI's A&G OM&G costs per retail customer with peer companies from 2019 to 2023, highlighting that NSPI's costs are in the first quartile and second lowest among peers, with a 3% increase compared to a 14% decrease in the peer median. Both NSPI and peers experienced increases in nominal costs and retail customer numbers over the timeframe.

AG3 – A&G OM&G per Retail MWh Sold

AI summary The document presents figures related to Administrative and General Operations and Maintenance (A&G OM&G) costs per Retail MWh Sold, including visual representations of the data on pages 176 with figures 3 and 4.

Observations - NSPI A&G OM&G per Retail MWh Sold is in at the first/second quartile line within the peer group - NSPI A&G OM&G per Retail MWh Sold increased 7% from 2019 to 2023 (1.6% CAGR) while the peer median A&G OM&G per Retail MWh Sol...

AI summary The document compares NSPI's A&G OM&G costs per Retail MWh Sold against peer group data, showing NSPI's costs increased by 7% from 2019 to 2023, while the peer median decreased. NSPI's Retail MWh Sold slightly increased, whereas the peer median decreased. These trends highlight differences in operational efficiency.

Observations - NSPI Invoices Processed per Full Time Equivalent (FTE) is 21% below the industry group median - NSPI Invoices Processed per Full Time Equivalent decreased 7% between 2019 and 2023 (-1.8% CAGR) - NSPI Invoices Processed incre...

AI summary NSPI's invoices processed per FTE is 21% below the industry median, with a 7% decrease between 2019 and 2023. However, the number of invoices processed increased by 2% during the same period, while the number of FTEs involved in processing accounts payable increased by 10%. This highlights inefficiencies in NSPI's operations.

FA3 – Finance & Accounting Cost as % of Revenue

AI summary This section, titled 'FA3 – Finance & Accounting Cost as % of Revenue,' includes figures related to financial and accounting costs as a percentage of revenue. It appears to be part of a larger regulatory proceeding involving Nova Scotia Power Inc. and includes visual representations of data.

Factors Contributing to Performance NSPI's higher number of employees per HR Function FTE is partially as a result of the shared service structure in which NSPI is provided HR services from Emera Definition: Number of business entity emplo...

AI summary NSPI has a higher number of employees per HR Function FTE due to its shared service structure, where HR services are provided by Emera. The metric is defined as the number of business entity employees divided by the number of FTEs managing human capital.

Observations - NSPI Average Days from Receipt of Purchase Requisition to PO Placement in 2023 is above the industry group median - NSPI Average Days from Receipt of Purchase Requisition to PO Placement increased 18% between 2019 and 2023 D...

AI summary NSPI's average days from receiving a purchase requisition to issuing a purchase order increased by 18% from 2019 to 2023, exceeding the industry group median in 2023. This cycle time includes weekends and is based on APQC procurement benchmarks for utilities.

Observations - NSPI Number of PO Line Items Processed per FTE in 2023 is 38% lower than the industry group median - NSPI Number of PO Line Items Processed per FTE increased 7% between 2019 and 2023 - NSPI number of PO Line Items Processed...

AI summary The document compares NSPI's performance in processing purchase order line items per FTE against industry benchmarks, noting a 38% decrease below the median in 2023, despite a 7% increase from 2019 to 2023. The number of FTEs remained flat during this period.

Observations - NSPI Number of POs Processed per FTE in 2023 is 5% higher than the industry group median - NSPI Number of POs Processed per FTE decreased 4% between 2019 and 2023 - NSPI number of POs Processed decreased 4% between 2019 and...

AI summary NSPI processed 5% more purchase orders per FTE in 2023 compared to the industry median, but there was a 4% decrease in the number of POs processed per FTE between 2019 and 2023. The number of FTEs remained flat during this period. The data is sourced from APQC's 2024 Procurement Benchmarks for Utilities.

Observations - NSPI Total IT Cost per Business Entity FTE in 2023 is 24% lower than the industry group median for 2024 - NSPI Total IT Cost per Business Entity FTE increased 18% between 2019 and 2023 - NSPI Total IT Cost increased 40% nomi...

AI summary The document provides comparative data on NSPI's IT costs per FTE relative to industry benchmarks, highlighting a 24% lower cost in 2023 compared to the median, despite an 18% increase between 2019 and 2023. IT costs have grown 40% over five years, outpacing the 18% growth in FTEs.

1 Request IR-73: 2 3 Reference: Exhibit N-14, OP-03 Attachment 1, ScottMadden Report 4 On page 17 it is noted that NS Power's total OM&G increased 23% in nominal terms from 5 2019 to 2023 while the peer median decreased 9% in nominal terms...

AI summary The text discusses the increase in NS Power's operational and maintenance (OM&G) costs from 2019 to 2023, noting significant increases compared to peer medians. After removing level 3 and 4 storm costs, the increases were slightly reduced but still notable.

1 Request IR-74: 2 - 3 Reference: Exhibit N-14, OP-03, Attachment 1, ScottMadden Report, p. 28 of 87, - 4 Transmission and Distribution Metrics 5 - 6 The report notes: NSPI widened its positive gap in the Distribution OM&G metrics through...

AI summary The document discusses NSPI's Distribution OM&G expenses, noting that while NSPI widened its positive gap in these metrics through 2021, the gap has narrowed since 2021 due to faster expense growth compared to peers. Factors include increased storm expenses in 2023 and customer growth. ScottMadden does not have similar information on storm costs or reliability investments for peer utilities.

- 19 is the same as customer growth, it shows this information below. Company Percentage Change in Reported Number of Customers 14 and stopping to match system demand – and operate at partial loads. This change allows the system 15 to resp...

AI summary The text discusses the operational challenges of flexible systems in managing renewable energy, including increased maintenance costs, higher fuel consumption, and reduced thermal efficiency. These challenges are highlighted in the context of NS Power's capital additions metrics and the ScottMadden benchmarking report.

1.1 Purpose and scope - Doane Grant Thornton LLP ("we", "us", "our", or "Doane Grant Thornton") has been engaged by the Nova Scotia - Energy Board (the "Board" or "NSEB") for the review of Nova Scotia Power Incorporated ("NS Power", "NSPI"...

AI summary Doane Grant Thornton LLP was engaged by the Nova Scotia Energy Board to review Nova Scotia Power Incorporated's 2026-2027 General Rate Application. The review includes components such as revenue requirement, operating costs, amortization, tax expenses, interest, and rate base, excluding certain items like fuel and demand side management.

4 Figure 1 – Summary of findings, observations and conclusions # Report section Findings, observations, and conclusions 3. Operating, maintenance and general expenses We have reviewed the operating expenses included in NS Power's 2024 Actu...

AI summary The report reviews NS Power's operating, maintenance, and general expenses for 2024, 2025, 2026, and 2027, noting forecasted operating costs of approximately $351.8 million in 2026 and $357.9 million in 2027, driven by Corporate Groups, Power Production, and Energy Delivery, partially offset by Corporate Adjustments. The review found no unreasonable aspects in the forecasts.

2.2 Procedures - Our procedures with respect to NS Power's revenue requirement calculations were focused on the assessment of the - reasonableness and accuracy of the calculation, the reasonableness of the underlying assumptions including...

AI summary The procedures focused on assessing the reasonableness and accuracy of NS Power's revenue requirement calculations, including recalculations and reviews of forecast methodologies and internal consistency of financial schedules from the September 2025 filing.

2 3.1 Scope - 3 NS Power's OM&G costs are broadly classified into three categories: - Operating and maintaining the generation, transmission and distribution facilities; - Delivering service to customers; and - Providing corporate support...

AI summary The document outlines the classification of NS Power's OM&G costs into three categories: operating and maintaining facilities, delivering service to customers, and providing corporate support. It also details the grouping of these costs into operating groups, corporate groups, corporate adjustments, and pension expense for the Application.

Figure 3 – 2024CR – 2030F Operating cost forecast ($ millions) 2024CR 2024A 2025B 2026F 2027F 2028F 2029F 2030F Operating costs 297.4 328.2 351.8 357.9 380.0 387.5 385.0 Increase 30.8 6.1 22.1 7.4 (2.5) Percent change 10.4% 1.7% 6.2% 2.0%...

AI summary The operating costs are projected to increase by $6.1 million (1.7%) from 2026 to 2027, as shown in the operating cost forecast table spanning from 2024CR to 2030F.

NS Power has noted in the Application that an increase of $22.1 million (6.2%) from 2027 to 2028 is a result of the consensus approach to this GRA. [7](#page-7-5) Per NS Power, the parties to the GRA Settlement Agreement agreed to the oper...

AI summary NS Power has indicated that a $22.1 million (6.2%) increase from 2027 to 2028 is due to the consensus approach to the GRA. The parties to the GRA Settlement Agreement agreed to the operation and maintenance expense amounts, subject to reductions outlined in Appendix B of the Settlement Agreement. A $9 million OM&G reduction in 2026F and 2027F was allocated to specific areas.

- Corporate $2 million.[8](#page-8-0),[9](#page-8-1) - 4 We note that without the $9 million reduction in operation and maintenance expense amounts per the GRA - 5 Settlement Agreement, OM&G costs would be approximately $360.8 million in 2...

AI summary The text discusses the impact of the GRA Settlement Agreement on OM&G costs, noting a potential 3.6% increase in 2028F without the agreement, compared to a 6.2% increase as currently projected. It references operating expenses from compliance filings and forecasts for 2024, 2025, 2026, and 2027.

3.2 Procedures - Our procedures with respect to OM&G expenses included the following: - Performed analytical procedures with respect to financial information in the Company's records and investigated variances between 2024 Actual, 2025 Bud...

AI summary The procedures outlined involve analyzing OM&G expenses by comparing financial data across different years and forecasts, reviewing forecasting methodologies, and benchmarking against industry peers to ensure reasonableness and accuracy.

2 3.4.1 Operating expenses – key variances at group level (2024A, 2025B, 2026F)[16](#page-10-0) 3 - 4 Based upon our review of the breakdown of expenses as outlined in the following table, the key variances between 5 2024 Actual, 2025 Budg...

AI summary The document discusses the key variances in operating expenses for Corporate Groups between 2024 Actual, 2025 Budget, and 2026 Forecast, highlighting an increase of approximately $7.6 million, driven by increases in Corporate Office of Secretary and General Council, Corporate Human Resources, and Information Technology.

1 and Asset Management ("WAM") Support, Customer Engineering and Innovation, and Customer 2 23 Customer Experience and Innovation OM&G is forecasted to increase from $37 million in Experience) 3 2024A to $41 million in 2026F. This is an in...

AI summary The document discusses forecasted increases in Customer Experience and Innovation OM&G costs from 2024 to 2026, as well as fluctuations in Corporate Adjustments, attributed to factors such as administrative overhead, capital investment, and staffing changes.

1 3.4.2 Operating expenses – key variances at detailed level (2024A, 2025B, 2026F)[29](#page-13-0) 2 3 Based on our review of the expenses within each operating group, we have identified key variances between 2024 4 Actual, 2025 Budget, an...

AI summary The document reviews key variances in operating expenses between 2024 Actual, 2025 Budget, and 2026 Forecast, providing detailed explanations from the Company for each identified variance.

8 ($000s) 2024A 2025B 2025B vs 2024A % change 2026F 2026F vs 2025B % change 2026F vs 2024A % change Executive Management 1,968 1,922 (46) -2% Corporate Office of Secretary and General Counsel 13,523 16,624 3,101 23% Corporate Finance 6,209...

AI summary The table shows a 7% increase in total Corporate Groups expenses from 2024A to 2026F, primarily driven by increases in the Corporate Office of Secretary and General Counsel, Corporate Human Resources, and Information Technology. The Eastern Clean Energy Initiative is the only group showing a decrease.

Figure 6 - Power Production operating cost detail - 2024A, 2025B, 2026F ($000s) 2024A 2025B 2025B vs 2024A % change 2026F 2026F vs 2025B % change 2026F vs 2024A % change Head Office 3,861 2,798 (1,063) -28% Thermal Plants 49,001 52,239 3,2...

AI summary Power Production operating costs are projected to increase by approximately $5.2 million from 2024A to 2026F, primarily driven by increases in Thermal Plants and Tufts Cove and Combustion Turbines. The detailed variance explanation has been provided by the Company.

- Thermal Plants The increase of approximately $3.2 million from 2024A to 2026F is primarily due to increased labour expense as a result of salary escalations ($2.7 million), and increased contract expense due to pricing increases and unit...

AI summary The text outlines increases in costs for thermal plants and Tufts Cove combustion turbines, primarily due to salary escalations and contract expense increases. It also mentions a decrease in head office costs due to the transfer of ash hauling expenses to fuel and purchased power expenses.

1 2 total $1.3 million. NS Power also noted that there are ash hauling contracts for each of the thermal plants that include transportation, as well as maintenance of the ash management sites.52 3 4 5 o The above decrease is partially offs...

AI summary The text outlines various cost changes related to energy production and management, including increased labour and consulting costs, offset by decreased contract and insurance costs. It also references specific documents and appendices related to the regulatory process.

Figure 7 - Energy Delivery operating cost detail - 2024A, 2025B, 2026F ($000s) 2024A 2025B 2025B vs 2024A % change 2026F 2026F vs 2025B % change 2026F vs 2024A % change Regional Operations 35,375 40,135 4,759 13% Control Center 9,361 12,70...

AI summary Energy Delivery operating costs are projected to increase by approximately $12.6 million from 2024A to 2026F, primarily driven by increases in Regional Operations, Control Center, Energy Delivery Services, T&D Contractor Management, and Storm expenses.

3.5.1 Operating expenses – key variances at group level (2024CR, 2026- 2027F)[73](#page-23-1) Based upon our review of the breakdown of expenses as outlined in the following table, the key variances between 2024CR, 2026 Forecast, and 2027...

AI summary This section discusses key variances in operating expenses at the group level between the 2024CR, 2026 Forecast, and 2027 Forecast, along with explanations provided by the Company.

Figure 9 – Operating costs by groups - 2024CR and 2026-2027 Forecast N-6 – 2026-2027 GRA Direct Evidence Appendix 7C page 56. The variance amounts and the analysis has been derived from N-6 – GRA Direct Evidence, Appendix 7C and calculatio...

AI summary The text discusses operating costs grouped by categories for the 2024CR and 2026-2027 forecast, referencing Appendix 7C and 7D of N-6 – GRA Direct Evidence. It notes that variance amounts and analysis were derived from these appendices.

12 3.5.2 Operating expenses – key variances at detailed level (2024CR, 2026- 2027F)[80](#page-25-3) 13 14 Based on our review of the breakdown of expense within each operating group, we have identified key variances 15 between 2024CR, 2026...

AI summary The document discusses key variances in operating expenses between the 2024CR, 2026 Forecast, and 2027 Forecast, as identified through a review of expense breakdowns within each operating group.

18 Figure 10 – Corporate Groups operating cost detail - 2024CR, 2026-2027F ($000s) 2024 Compliance (restated) 2026F 2026F vs 2024C % change 2027F 2027F vs 2026F % change 2027F vs 2024C % change Executive Management 1,760 1,922 162 9% 1,983...

AI summary The text presents a table showing the operating cost details of Corporate Groups for 2024CR and forecasts for 2026-2027F. The primary drivers of increased expenses are Communications and Public Affairs, Corporate Human Resources (Including Safety), Information Technology, and Regulatory Affairs, as explained by the Company.

23 Figure 12 – Energy Delivery operating cost detail - 2024CR, 2026-2027F ($000s) 2024 Compliance (restated) 2026F 2026F vs 2024C % change 2027F 2027F vs 2026F % change 2027F vs 2024C % change Regional Operations 25,527 40,135 14,607 57% 4...

AI summary Energy Delivery operating costs are projected to increase by approximately $36.6 million from 2024CR to 2027F, primarily driven by increases in Regional Operations and T&D Contractor Management. The detailed variance explanation has been provided by the Company.

- Regional Operations The increase of approximately $16.6 million from 2024CR to 2027F primarily relates to the increase of $14.6 million from 2024CR to 2026F. The $14.6 million increase in 2026F is attributable to - o Increased labour and...

AI summary The $16.6 million increase in Regional Operations costs from 2024CR to 2027F is mainly due to increased labour and contract costs, grid-scale battery operating costs, and additional equipment expenses. Factors include population growth, increased customer work requests, and the implementation of the Five-Year Reliability Plan.

1.2 million in 2026F and 2027F, respectively.[116](#page-33-2) - o Increased personal equipment and tools and equipment due to additional headcount and reclassification from the materials account (totalling $0.9 million). - A further incre...

AI summary The text discusses increases in operating costs for energy delivery, including personal equipment, contractor management, and labour costs, attributed to factors such as increased customer growth, fleet maintenance, and staffing changes. NS Power provides explanations for these increases, citing hiring, supply chain delays, and reliability investments.

ied by the Department of Labour, Skills and Immigration: K-Line Construction and Locke's Electrical, as well as the increase in resources that N-6 – 2026-2027 GRA Direct Evidence Appendix 7C page 38. N-23 (C) – NSPI Responses to GT Informa...

AI summary The text discusses increased operating and maintenance (OM&G) costs for NS Power's Energy Delivery, including higher fleet fuel expenses and contract costs due to inflation and salary escalations. The document references various internal responses and evidence submissions related to the 2026-2027 GRA Direct Evidence Appendix.

y escalations ($0.3 million). In addition to the increase in the two areas mentioned above, further explanation of OM&G cost changes for NS Power's Energy Delivery is provided below by the Company:

AI summary The text discusses increases in OM&G costs for NS Power's Energy Delivery, with additional explanations provided by the Company for the changes in these costs.

- Control Centre The increase of approximately $0.9 million from 2024CR to 2027 is related to an increase of $5.1 million from 2024CR to 2026F, which is offset by a decrease of $4.2 million from 2026F to 2027F. The increase of $5.1 million...

AI summary The Control Centre's operating costs increased by approximately $0.9 million from 2024CR to 2027, primarily due to increased labour and consulting costs in 2026. This is attributed to additional employees required for operational demands, including handling increased IPP interconnection requests and the FAM Audit Dispatch Study.

ation Requests – IR-36. N-23 (C) – NSPI Responses to GT Information Requests – IR-37. N-6 – 2026-2027 GRA Direct Evidence Appendix 7C page 42. meter shop T&D Contractor Management ($2.9 million). Per the Company, wiring inspection services...

AI summary The document discusses the increase in electrical inspection services and associated costs for NS Power, driven by higher demand from the provincial Department of Labour, Skills and Immigration due to increased residential and commercial construction and renovation activities. This led to the recruitment of additional wiring inspectors and an increase in employee-related expenses.

als was required. The Company noted that this has also resulted in increased fleet fuel, materials and personal protection equipment expenses associated with the additional employees.[124](#page-35-0)

AI summary The Company mentioned that increased fleet fuel, materials, and personal protection equipment expenses have occurred due to the addition of more employees.

- A further increase of $0.8 million from 2026F to 2027F is the result of increased labour costs due to the addition of a planning engineer, and salary escalations ($0.6 million), and increased internet communications due to continued roll...

AI summary The document outlines increased operating costs for Energy Delivery Services, primarily due to salary escalations, the addition of a planning engineer, and the rollout of satellite internet to address inconsistent cellular coverage. Additionally, the creation of the Reliability Implementation department has led to a significant increase in labour costs, aimed at improving system reliability and customer engagement.

pany noted that the reliability team is comprised of 59 employees, who support both the operational and capital portfolio and this labour is forecast between capital investment and operating expenses in the 2026-2027 GRA forecasts.[127](#p...

AI summary The text discusses increases in operating costs for the reliability team, consulting costs for standards development, and storm-related expenses in the 2026-2027 forecasts. These include labor, contract, and inflation-related costs. References to various documents and appendices are included.

3.6 Operating expenses – benchmarking In 2024, NS Power engaged ScottMadden to review NS Power's operating costs through a benchmarking study. The - study focuses on the period of 2019-2023.The purpose of the benchmarking study is to provi...

AI summary In 2024, NS Power commissioned ScottMadden to conduct a benchmarking study of its operating costs from 2019 to 2023. The study found that NS Power performs favorably compared to peer utilities, despite lower customer usage. ScottMadden corrected data errors in the report, but the overall findings remained unchanged.

3.7 Conclusion We have reviewed the operating expenses included in NS Power's 2024 Actuals, 2024CR, 2025 Budget, 2026 Forecast, and 2027 Forecast. Our procedures included performing analytical procedures with respect to financial informati...

AI summary The operating expenses for NS Power in 2026 and 2027 are forecasted at approximately $351.8 million and $357.9 million, respectively, driven primarily by Corporate Groups, Power Production, and Energy Delivery. These figures are partially offset by Corporate Adjustments. The review found no unreasonable aspects in the forecasts.

1. Summary Allowable operating expenses must "reflect prudent and efficient management of the franchise operation." General Statutes § 16-19e(a)(5). Therefore, those expenses that are reasonable and necessary to provide service to the publ...

AI summary The document outlines the criteria for allowable operating expenses, emphasizing the need for prudence and efficiency. The Company proposed O&M expenses of $184,902,644, but the Authority approved $166,405,683 after adjustments, citing the need for expenses to be reasonable, necessary, and supported by evidence.

Table 38: Operations and Maintenance Expenses Section O&M Expenses Proposed ($) Adjustment ($) Approved ($) Regulatory Assessment 2,499,141 - 2,499,141 VI.A.3 Outside Services - Customer Services 5,613,847 (274,336) 5,339,511 VI.A.4 Outsid...

AI summary This table outlines the Operations and Maintenance (O&M) Expenses, including proposed, adjustment, and approved amounts. It highlights various line items such as customer services, electric distribution system, professional services, and environmental remediation, with adjustments made to some expenses. The total expenses amount to $166,405,683 after adjustments.

c. Outsource Call Taking Vendor The Company proposes a $910,055 expense for the Rate Year for outsource call taking vendors, which is the Company's $2,044,250 Test Year amount, with a ($1,134,195) adjustment made to the Rate Year amount to...

AI summary The Company proposes a $910,055 expense for outsource call taking vendors in the Rate Year, based on projected call volumes and cost per call, with adjustments for abandoned calls and distribution percentages. The Authority approves this amount, finding the methodology reasonable.

Expense Proposed Rate Year ($) Adjustment ($) Approved ($) Operational Smart Grids 2,608,107 (144,584) 2,463,523 Customer Service 607,663 (198,262) 409,401 Software Licensing 1,486,444 (178,450) 1,307,994 Total 4,702,214 (521,296) 4,180,91...

AI summary Table 46 outlines approved computer expenses, showing proposed rates, adjustments, and final approved amounts for categories such as Operational Smart Grids, Customer Service, and Software Licensing, with a total approved amount of $4,180,918.

a. Summary The Company proposes that it recover $6,528,418 in the Rate Year for residual O&M expenses, which it categorizes as advertising, bank fees, membership dues and association fees, postage, training, travel, and "Other O&M." Late F...

AI summary The Company seeks to recover $6,528,418 in residual O&M expenses for the Rate Year, including advertising, bank fees, postage, and other expenses. The Authority adjusts these expenses as detailed in Table 54.

Components Proposed ($) Adjustment ($) Allowed ($) Advertising 150,754 (11,357) 139,397 Bank Fees 204,782 (15,427) 189,355 Membership Dues and Association Fees 239,398 (229,785) 9,614 Postage 6,657 (502) 6,155 Training 160,864 (12,119) 148...

AI summary Table 54 provides a summary of residual operating and maintenance (O&M) expenses, including proposed amounts, adjustments, and allowed amounts for various components such as advertising, bank fees, membership dues, postage, training, travel, and other O&M expenses.

Pole attachment rental rates contribute to "Other Operating Revenues." See Sch. C-3.01 WP. UI categorizes this revenue as "Pole Attachment Revenues," which include both revenue from pole rental fees as well as income from pole attachment a...

AI summary The document discusses UI's pole attachment rental rates, categorizing them under 'Other Operating Revenues' and providing figures for Test Year and proposed Rate Year revenues. UI calculated its proposed revenue by multiplying anticipated average attachments by proposed rates for each type of attacher.

UTILITY RATE PROCEEDINGS IN WHICH TESTIMONY HAS BEEN PRESENTED BY JACOB POUS ALASKA Southern Union Gas Company 2738, 2958, 3002, 3018, 3019 Cons. Cost of Service, Rate Design, Depreciation Southern Union Gas Company 6968 Interim & Cons. Af...

AI summary Jacob Pous has provided testimony in multiple utility rate proceedings involving Southern Union Gas Company, covering topics such as cost of service, rate design, depreciation, affiliate transactions, and rate base. These proceedings include various consolidated and interim cases with different focus areas.

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 recommends that transaction/issuance costs incurred by utilities when securing financing should be incorporated into the debt interest rate used for rate setting, to be amortized over the term of the debt instrument. However, these costs are not included in the DLTDR, as it is a proxy for market-based long-term debt and does not reflect the full cost structure of actual debt issuance.

Findings The cost of capital parameters of ROE, DSTDR, and DLTDR are applicable to utilities rebasing rates for 2025 (if cost of capital is in scope). For other utilities, the new cost of capital parameters will be implemented on a one-tim...

AI summary The OEB determines that the current 2009 Cost of Capital Framework meets FRS, allowing the new framework to be implemented alongside other cost-of-service reviews. Variance accounts for 2025 rate adjustments will be addressed in IRM and Custom IR applications. Prescribed interest rates for DVAs and CWIP are effective April 1, 2025, and will be updated quarterly.

Table 4: Relationship Between Approved Rate of Return and Utility Capital, Opex, and Rate Base Model: Capital (1) Op Ex (2) Rate Base (3) Variables 0.0340∗∗ 0.0262∗∗∗ RoE gap (%) (0.0123) -0.0149 (0.0116) (0.0092) Fit statistics Observatio...

AI summary Table 4 presents statistical relationships between the approved rate of return and utility capital, operating expenses, and rate base, including variables, RoE gap, and fit statistics across different models.

Signif. Codes: \ \ \ : 0.01, \ \ : 0.05, \ : 0.1 (b) Operating Expenses Notes: The table uses the gap between approved RoE and 10-year US Treasuries. Dependent variables are logs of nominal USD. This table only includes utilities that repo...

AI summary The text discusses operating expenses, focusing on non-generation costs and their relationship with the gap between approved return on equity (RoE) and 10-year US Treasuries. The analysis includes dividing outcomes by kWh delivered to assess intensity, with similar results found across different metrics.

Notes: The table uses approved RoE. Dependent variables are in $ per kWh. This table only includes utilities that report through FERC Form 1 and so is limited to electric utilities, or combined electricity and natural gas utilities. See no...

AI summary This table examines the relationship between approved rate of return and electric utility capital and operating expenses by expenditure type and vertical integration, measured in dollars per kWh. It includes utilities reporting through FERC Form 1, focusing on electric and combined electric-natural gas utilities.

(b) Operating Expenses

AI summary The section discusses operating expenses, which are a key component in financial planning and regulatory proceedings, impacting cost recovery and overall financial performance.

N2. Accordingly, the Board directs NS Power to continue to submit for Board approval any LIN2 CI projects, collectively, as a Winter Capacity Requirement project application, until directed otherwise. Further, in response to Board Staff IR...

AI summary The Board directs NS Power to submit LIN2 CI projects as a Winter Capacity Requirement project application until otherwise directed. NS Power provided energy generation data for LIN2 during specific periods in early 2025 and is asked to provide a detailed weekly breakdown and explanation for the increased energy output. The Board also requires NS Power to seek approval for LIN2 operating expenses beyond 2024.

5.1.2 Major Approaches The 2003 Working Group spent considerable time on the categorization of joint distribution assets and operating expenses. While the literature discusses a variety of techniques, this paper will focus on three princip...

AI summary The 2003 Working Group focused on categorizing joint distribution assets and operating expenses, discussing three principal approaches approved by North American regulators.

(b) Operating and Maintenance Expenses Operating and maintenance expenses could be allocated based on a detailed analysis of the maintenance schedules per meter type, and their associated duration and labour costs. A simplified approach wo...

AI summary The text discusses methods for allocating operating and maintenance expenses, suggesting either a detailed analysis of meter types and costs or a simplified approach similar to capital costs and depreciation.

7.3.1 Background This category includes costs that support all aspects of the overall organization such as executive, management, and general administration salaries and expenses, employee pensions and benefits, office supplies, franchise...

AI summary This section outlines the background of a category of costs that support organizational functions including salaries, pensions, office supplies, and regulatory affairs.

7.4.3 Initial Recommendations Staff recommends that the second option be the standard method for allocating WCA for all distributors. The WCA related to the COP would be allocated on the basis of energy. The WCA associated with the allowab...

AI summary Staff recommends using the second option as the standard method for allocating WCA for all distributors, with WCA related to COP allocated based on energy and WCA related to distribution expenses allocated pro rata to total O&M costs.

Appendix 1 – Direct Assignment of Accounts Appendix 1 - Direct Assignment of Accoun its 5625 Administrative Expense Transferred Credit x 5630 Outside Services Employed x 5640 Injuries and Damages x 5645 Employee Pensions and Benefits x 565...

AI summary This document outlines the direct assignment of accounts, including administrative expenses, employee benefits, regulatory expenses, and insurance costs. It also includes the functionalization of selected accounts, such as property insurance, advertising expenses, and community safety programs, categorized under different functions like distribution, metering, and customer services.

4.1.7 Filing Questions It may be of future assistance to the Board to better understand how a distributor attributes various costs to certain key accounts. The following questions must be answered in the filings: - 1. As a distributor, sum...

AI summary The Board requests clarification on how a distributor attributes costs to key accounts, including capitalization policies, functions charged to Account 5630, and the recording of Customer Information System Expenses.

10.1 Introduction Some components of the revenue requirement cannot be directly allocated, or allocated to customer rate classifications by using the functionalization, categorization and allocation process described earlier. Instead other...

AI summary The document discusses methods for allocating revenue requirements when direct allocation is not feasible, including pro rata allocation and detailed analyses. It lists various expenses and capital expenditures that fall into this category, such as administrative expenses, working capital allowance, and conservation costs.

10.3.1 Background This category includes costs that support all aspects of the overall organization such as executive, management and general administration salaries and expenses, employee pensions and benefits, office supplies, franchise...

AI summary This section outlines the category of costs that support organizational functions, including salaries, pensions, benefits, office supplies, franchise requirements, and regulatory affairs.

Operation and Maintenance Expenses Operation and maintenance expenses allocated to the USL classification will exclude the following accounts: customer premises (Accounts 5070, 5075), maintenance of meters (Account 5175), and meter expense...

AI summary Operation and maintenance expenses under the USL classification exclude specific accounts, including customer premises, meter maintenance, and meter expenses. Distributors with verification meters on USL must allocate related costs to USL.

12.2.2.2 Direction – Secondary Transformation Ownership Allowance Unit Cost Output The following costs will be included in the new secondary transformation ownership allowance unit cost calculation produced by the filing model. - a) Deprec...

AI summary The document outlines the components included in the new secondary transformation ownership allowance unit cost calculation. It specifies various expenses and allocations related to distribution transformers and how the unit cost will be determined based on rate classifications and customer usage metrics.

The following outlines the resulting numbers of customers using the various asset groupings, for Example 3: Class Bulk Primary Secondary 1855 Services 1860 Meters 1565 Conservation and Demand Management Expenditures and Recoveries 5065 Met...

AI summary The text presents a table outlining various customer classes and associated costs, including meter expenses, maintenance, billing, and infrastructure-related expenditures, categorized under different asset groupings such as primary and secondary networks.

Avoided Costs Account # Accounts Distribution Plant 1860 Meters Accum. Amortization 2105 Amortization of Electricity Utility Plant – Meters only Misc. Revenues 4082 Retail Services Revenues 4084 Service Transaction Requests (STR) Revenues...

AI summary The text presents a table listing various accounts related to avoided costs, including distribution plant, amortization, revenues, operation, maintenance, billing and collection, and amortization of assets. These accounts are categorized under different headings and include specific account numbers and descriptions.

Avoided costs plus administration and general expenses associated with the above direct operation, maintenance, billing and collection costs as well as a proportion of general plant assigned to meter assets.

AI summary The text discusses the avoidance of costs related to direct operation, maintenance, billing, and collection, as well as a proportion of general plant assigned to meter assets, including administration and general expenses.

2026 COST OF SERVICE STUDY ANALYSIS R E F E R E N C E G U I D E EXHIBIT COMPARISON OF REVENUE TO EXPENSE RATIOS 1 FUNCTIONALIZATION OF AVERAGE RATE BASE 2 INITIAL CLASSIFICATION OF AVERAGE RATE BASE 2A FINAL CLASSIFICATION OF AVERAGE RATE...

AI summary The document outlines the structure and content of the 2026 Cost of Service Study Analysis Reference Guide, including various exhibits and analyses related to revenue, expenses, rate base classifications, and distribution costs.

NOVA SCOTIA POWER INC. FUNCTIONALIZATION OF OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2026 (IN THOUSANDS OF DOLLARS) (1) TOTAL EXPENSES (2) PROD. EXPENSES (3) TRANS. EXPENSES (4) DIST. EXPENSES (5) RETAIL EXPENSES (6) DIRECT EXPE...

AI summary The document presents the functionalization of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2026, detailing expenses categorized into production, transmission, distribution, retail, and direct expenses, with specific figures provided in thousands of dollars.

NOVA SCOTIA POWER INC. FUNCTIONALIZATION OF OPERATING EXPENSES (1) TOTAL EXPENSES (2) PROD. EXPENSES (3) TRANS. EXPENSES (4) DIST. EXPENSES (5) RETAIL EXPENSES (6) DIRECT EXPENSES (7) ALLOCATION FACTOR (1) FUEL 445,457 434,033 - - - 11,424...

AI summary The document presents a detailed breakdown of Nova Scotia Power Inc.'s operating expenses, categorized into fuel, purchased power, and other operational costs, with allocation factors for each expense category.

FOR THE YEAR ENDING DECEMBER 31, 2026 (IN THOUSANDS OF DOLLARS) (1) TOTAL EXPENSES (2) PROD. EXPENSES (3) TRANS. EXPENSES (4) DIST. EXPENSES (5) RETAIL EXPENSES (6) DIRECT EXPENSES (7) ALLOCATION FACTOR (1) REGULATORY AFFAIRS (2) Advocacy...

AI summary The document presents a detailed breakdown of expenses for the year ending December 31, 2026, categorized into various expense types such as regulatory affairs, finance group, enterprise services, and human resources. The table includes total expenses, production expenses, transportation expenses, distribution expenses, retail expenses, and direct expenses, along with allocation factors for each category.

FUNCTIONALIZATION OF OPERATING EXPENSES (1) TOTAL EXPENSES (2) PROD. EXPENSES (3) TRANS. EXPENSES (4) DIST. EXPENSES (5) RETAIL EXPENSES (6) PROD. WEIGHTS (7) TRANS. WEIGHTS (8) DIST. WEIGHTS (9) RETAIL WEIGHTS (1) FUEL - 0.0% 0.0% 0.0% 0....

AI summary This section presents a table detailing the functionalization of operating expenses, categorized into production, transmission, distribution, and retail expenses, with associated weights for each category. The data includes various operating and maintenance costs for different energy sources such as thermal, hydro, wind, solar, biomass, and combustion turbines.

TRANSMISSION OPERATING EXPENSES ABOVE-THE-LINE RATE CLASSES BELOW-THE LINE RATE CLASSES TOTAL (1) OPERERATION & MAINTENANCE (2) DIRECT 22,956 744 23,700 (3) NON-DIRECT 14,279 463 14,742 (4) (5) TOTAL OPER. & MAINT. 37,235 1,207 38,442 (6)...

AI summary The document presents a detailed breakdown of transmission operating expenses, categorized into above-the-line and below-the-line rate classes, including operation and maintenance, depreciation, taxes, interest, and retained earnings. This data is part of a larger regulatory proceeding document.

CLASSIFICATION OF OPERATING EXPENSES (1) TOTAL COMPANY (2) DEMAND EXPENSES (3) ENERGY EXPENSES (4) CUSTOMER EXPENSES TRANSMISSION FUNCTION (1) Transmission - HV (not aplicable as a separate item) (2) O&M - HV Before Storm Expense (3) O&M -...

AI summary The document presents a detailed breakdown of operating expenses categorized into transmission, demand, energy, and customer expenses. It includes specific line items such as O&M costs, depreciation, interest, and corporate taxes, with figures provided for HV and EHV systems.

CLASSIFICATION OF OPERATING EXPENSES (1) TOTAL COMPANY (2) DEMAND EXPENSES (3) ENERGY EXPENSES (4) CUSTOMER EXPENSES RETAIL FUNCTION (1) CUSTOMER EXPERIENCE AND SOLUTIONS 8,639 0 0 8,638.5 (2) CALL CENTRE 13,495 0 0 13,495.3 (3) BILLING SE...

AI summary The document presents a classification of operating expenses, including retail function expenses, depreciation, taxes, and non-operating revenue, with detailed breakdowns across various categories such as customer experience, billing services, and meter services.

NOVA SCOTIA POWER INC. ALLOCATION OF OPERATING EXPENSES (1) TOTAL COMPANY (2) DOMESTIC (3) SMALL GENERAL (4) GENERAL (5) GENERAL LARGE (6) SMALL INDUSTRIAL (7) MEDIUM INDUSTRIAL (8) LARGE INDUSTRIAL (9) PHP (10) MUNICIPAL (11) UNMETERED (1...

AI summary The document presents a table detailing the allocation of operating expenses for Nova Scotia Power Inc. across various categories, including fuel purchases, biomass, wind energy, and capacity credits, with breakdowns for different customer classes and allocation factors.

NOVA SCOTIA POWER INC. ALLOCATION OF OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2026 (IN THOUSANDS OF DOLLARS)

AI summary The document presents Nova Scotia Power Inc.'s allocation of operating expenses for the year ending December 31, 2026, with figures provided in thousands of dollars.

DEMAND CLASSIFICATION (1) TOTAL (2) (3) SMALL (4) (5) GENERAL (6) SMALL (7) MEDIUM (8) LARGE (9) (9) (10) (11) ALLOCATION COMPANY DOMESTIC GENERAL GENERAL LARGE INDUSTRIAL INDUSTRIAL INDUSTRIAL PHP MUNICIPAL UNMETERED FACTOR (1) Transmissi...

AI summary The document presents a detailed breakdown of costs and revenues related to demand classification, including operating and maintenance expenses, depreciation, interest, taxes, and other financial figures. It includes various line items and references to documents and orders.

NOVA SCOTIA POWER INC. (1) TOTAL COMPANY (2) DOMESTIC (3) SMALL GENERAL (4) GENERAL (5) GENERAL LARGE (6) SMALL INDUSTRIAL (7) MEDIUM INDUSTRIAL (8) LARGE INDUSTRIAL (9) PHP (10) MUNICIPAL (11) UNMETERED (12) ALLOCATION FACTOR (8) OPER. &...

AI summary The document presents a table of operational and maintenance costs for various energy generation and distribution activities by Nova Scotia Power Inc., including steam, hydro, wind, biomass, and other systems, along with allocation factors and references to related documents.

EXHIBIT 8B PAGE 2 OF 3 (1) TOTAL (2) (3) SMALL (4) (5) GENERAL (6) SMALL (7) MEDIUM (8) LARGE (9) (10) (11) (12) ALLOCATION (13) DMD OPER.EXP GEN. $50,384 $32,368 $1,652 $8,967 $1,022 $919 $1,181 $1,833 $1,511 $698 $234 O-1 (14) % RESPONSI...

AI summary The exhibit presents a detailed breakdown of operational expenses categorized under different segments such as demand, generation, transmission, and distribution, along with the percentage of responsibility allocated to each category. Allocation codes such as O-1, O-2A, and O-3 are referenced for each expense category.

FOR THE YEAR ENDING DECEMBER 31, 2026 (1) TOTAL (2) PROD. (3) TRANS. (4) DIST. (5) RETAIL (6) DIRECT (7) (14) PROCUREMENT % RESPONSIBILITY 100.0% 25.0% 25.0% 25.0% 25.0% F - 5 LABOUR-RELATED O&M EXPENSES BY FUNCTIONAL (15) O&M EXPENSES BY...

AI summary The document presents a detailed breakdown of procurement responsibilities and operational expenses by functional areas for the year ending December 31, 2026. It includes percentages of responsibility for procurement, labor-related O&M expenses, and distribution of costs across generation, transmission, distribution, and retail functions.

REVENUE TO EXPENSE COMPARISON (1) TOTAL (2) TOTAL (3) UNIT COST (4) TOTAL (5) (6) (7) (114) (115) OFFICE OF THE PRESIDENT (116) EXECUTIVE MANAGEMENT 1,808.4 (117) (118) CORPORATE INSURANCE 9,647.8 (119) CORPORATE SECRETARY 1,757.3 (120) CO...

AI summary The document presents a revenue to expense comparison, detailing various functional areas and corporate groups with associated costs. It includes breakdowns of expenses under categories such as legal services, insurance, and operations, with some figures indicating percentages and totals for different departments.

NOVA SCOTIA POWER INC. FUNCTIONALIZATION OF OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2027

AI summary The document outlines Nova Scotia Power Inc.'s functionalization of operating expenses for the year ending December 31, 2027, likely detailing how expenses are categorized and allocated across different functions or departments.

(IN THOUSANDS OF DOLLARS) (1) TOTAL EXPENSES (2) PROD. EXPENSES (3) TRANS. EXPENSES (4) DIST. EXPENSES (5) RETAIL EXPENSES (6) DIRECT EXPENSES (24) CUSTOMER OPERATIONS: (25) (26) TRANSMISSION & DISTRIBUTION 83,713.491 0 21,094 59,631 0 2,9...

AI summary The document presents a detailed breakdown of expenses categorized into various operational and corporate groups, including transmission and distribution, customer service, legal services, regulatory affairs, and procurement. It outlines total operating and general expenses, as well as other expenses, providing a comprehensive overview of financial allocations.

FOR THE YEAR ENDING DECEMBER 31, 2027 Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy Customer

AI summary This document provides a summary of financial and operational data for the year ending December 31, 2027, including fuel costs, operating expenses, capital expenditures, return on investment, total costs, units sold, demand, energy, and customer-related metrics.

CLASS : PHP CLASS : PHP RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fuel Operating Capital Fixed Return Total Total Cost Units Sold Demand Unit Cost Energy Customer Generation (1) Usage (Energy) $43,157 $19,199 $2,111 $3,263 $1...

AI summary This document presents a detailed breakdown of costs and revenue for the Power House Program (PHP) in Nova Scotia, including generation, transmission/distribution, and retail components. It includes figures for fuel, operating, capital, and fixed return costs, as well as total costs and unit costs per kilowatt-hour.

NOVA SCOTIA POWER INC. DEVELOPMENT OF ALLOCATION FACTORS EXPENSES EXPENSES EXPENSES EXPENSES EXPENSES EXPENSES ALLOCATOR (1) LABOUR O&M excluding HR, IT, PR, OTHER and direct 201,366 87,716 22,048 57,505 34,097 - (2) % RESPONSIBILITY 100.0...

AI summary The document presents a table detailing the allocation of expenses and responsibilities among different departments and functions within Nova Scotia Power Inc., including percentages of responsibility and revenue requirements, with a focus on labour, insurance, compliance reporting, and procurement.

- compliance budget. The union/non-union split for the 2026-2027 test period is shown below: 2026 2027 Union Employees 1,126 1,104 Non-Union Employees 1,496 1,493 Total Employees 2,622 2,597 - The additional 507 employees results in an inc...

AI summary The compliance budget outlines the union and non-union employee split for the 2026-2027 test period, showing a total employee count and the associated increase in OM&G expense due to additional staff.

CONFIDENTIAL ATTACHMENTS ONLY 1 TABLE OF CONTENTS 2 3 1.0 INTRODUCTION 3 4 2.0 COMPLIANCE FILING COMPONENTS 4 5 3.0 REVISIONS TO REVENUE REQUIREMENT 7 6 3.1 OM&G Reduction 7 7 3.2 Executive Compensation Adjustment 7 8 3.3 Removal of GRA Co...

AI summary The Nova Scotia Energy Board (NSEB) released a decision on March 25, 2026, directing NS Power to file a compliance filing within two weeks. The compliance filing includes a further reduction of $8 million in OM&G expenses for 2026 and 2027 and a reduction in NS Power's executive compensation in line with the Nova Scotia Power Incorporated Regulations.

8 Category 2026 ($ Million) 2027 ($ Million) Fuel & Purchased Power 916.8 916.6 OM&G 343.7 349.8 Demand Side Management Expense 63.8 63.8 Depreciation and Accretion 282.1 300.8 Taxes (including grants-in-lieu of property taxes) 29.6 55.9 R...

AI summary The table presents financial figures for various categories in 2026 and 2027, including fuel and purchased power, OM&G, demand side management expense, depreciation, taxes, regulatory amortization, interest expenses, return on equity, revenue requirement, and other revenue sources.

ake the types of changes - 2 that would be required to the CIS billing system would involve those set out below. The Company - 3 anticipates that such a process would require a minimum of 6 months. 4 - 5 Within the CIS, there are more than...

AI summary The document discusses the complexity and cost associated with modifying the CIS billing system, including the need for extensive code changes, potential impacts on financial controls, and additional operational expenses from generating more bills, especially for customers who still receive paper bills.

COMPARISON OF REVENUE TO EXPENSE RATIOS 1 FUNCTIONALIZATION OF AVERAGE RATE BASE 2 INITIAL CLASSIFICATION OF AVERAGE RATE BASE 2A FINAL CLASSIFICATION OF AVERAGE RATE BASE 2B ALLOCATION OF AVERAGE RATE BASE 3 ALLOCATION OF AVERAGE DISTRIBU...

AI summary The document outlines various sections related to the analysis of revenue and expense ratios, functionalization of rate bases, classification and allocation of investments in distribution infrastructure, and the breakdown of operating expenses. It includes detailed sections on transmission, distribution, customer service, credit services, depreciation, and storm-related expenses.

INDUSTRIAL 36 1,891.93 68,378 0.09 64 ( 8) PHP 1 1,824.69 1,825 0.00 2 ( 9) MUNICIPAL 5 1,891.93 9,460 0.01 9 (10) UNMETERED 9,903 N/A 0 0.00 0 (11) TOTAL 539,851 $75,160,346 100.00 $70,426 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDAC...

AI summary This document contains a table and an exhibit related to Nova Scotia Power Inc.'s functionalization of operating expenses for the year ending December 31, 2026. It includes categories such as industrial, municipal, and unmetered expenses, along with totals and allocations.

- - 4,525 77 (70) REVENUE OPS ADMIN - - - - - - (71) CREDIT SERVICES (72) BAD DEBT EXPENSE 5,050 - - - 4,966 84 (73) MARKETING & SALES (74) METER SERVICES - INSPECTORS - - - - - - (75) TOTAL CUSTOMER SERVICE 28,358 - - 1,162 26,714 481 RED...

AI summary The text provides a partial table of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2026, including entries such as revenue operations administration, credit services, bad debt expense, marketing and sales, and meter services.

(1) REGULATORY AFFAIRS (2) Advocacy Expense 1,885 1,367 132 309 29 48 F - 2 (3) Other Expenses 7,402 5,367 517 1,212 115 190 F - 2 (4) Subtotal 9,287 6,734 649 1,521 144 239 (5) (6) FINANCE GROUP (7) INTERNAL AUDIT 1,782 1,292 125 292 28 4...

AI summary The document presents a summary of expenses related to Regulatory Affairs and the Finance Group, including Advocacy, Internal Audit, Investor Relations, and other financial activities, with figures provided for different categories and periods.

ACK OFFICE - (16) (17) TOTAL FINANCE 7,350 5,000 640 1,416 106 189 (18) (19) ENTERPRISE SERVICES (20) PROCUREMENT & FACILITIES 12,284 2,996 2,996 2,996 2,996 298 F - 5 (21) INFORMATION TECHNOLOGY 46,049 19,238 5,324 12,901 7,473 1,114 F -...

AI summary The document presents a financial summary with various expense categories, including procurement, information technology, human resources, and other expenses, along with totals for different divisions and periods. It includes figures for advocacy expenses and deferrals related to FCR.

8 3,616 (73) PREFERRED DIVIDENDS - - - - - - (74) CORPORATE TAXES (10,608) (4,703) (1,772) (3,478) (384) (271) (75) (10,608) (76) TOTAL OPERATING EXPENSES 1,706,121 1,254,384 102,973 263,937 52,435 32,392 (77) (78) NON-OPERATING REVENUE: -...

AI summary The text presents a financial statement with details on preferred dividends, corporate taxes, and total operating expenses, along with non-operating revenue items such as late payment charges, connection charges, and wiring inspections.

REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 26 of 100 EXHIBIT 4 - Detail A PAGE 3 OF 6 NOVA SCOTIA POWER INC. NOVA SCOTIA POWER INC. FUNCTIONALIZATION OF OPERATING EXPENSES...

AI summary The document presents a functionalization of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2026, categorized into production, transmission, distribution, and retail expenses, along with their respective weights.

0.0% (11) (12) POWER PRODUCTION (13) THERMAL OPERATING & MAINT. 57,510 57,510 - - - 13.27% 0.0% 0.0% 0.0% (14) HYDRO OPERATING & MAINT. 1,830 1,830 - - - 0.4% 0.0% 0.0% 0.0% (15) WIND - OPERATING & MAINT. 8,147 8,147 - - - 1.9% 0.0% 0.0% 0...

AI summary The document presents a detailed breakdown of various operational and maintenance costs across different energy production sources in Nova Scotia, including thermal, hydro, wind, biomass, and combustion turbines, along with fuel procurement expenses. Each line item includes the cost, percentage of total, and other financial metrics.

0.0% 0.0% 0.0% (21) GENERATION BATTERIES - - - - - 0.0% 0.0% 0.0% 0.0% (22) RADIAL TO GENERATION TRANS. 1,372 1,372 - - - 0.3% 0.0% 0.0% 0.0% (23) TOTAL POWER PRODUCTION 82,703 82,703 - - - 19.1% 0.0% 0.0% 0.0% (24) (25) CORPORATE GROUPS (...

AI summary The text presents a financial breakdown of various categories including generation batteries, radial to generation transmission, total power production, and corporate groups such as executive management, legal services, and external relations, with percentages and monetary values listed.

REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 27 of 100 EXHIBIT 4 - Detail A PAGE 4 OF 6 NOVA SCOTIA POWER INC. NOVA SCOTIA POWER INC. FUNCTIONALIZATION OF OPERATING EXPENSES...

AI summary The document presents a functionalization of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2026, categorized into production, transmission, distribution, and retail expenses with corresponding weights.

(1) REGULATORY AFFAIRS (2) Advocacy Expense 1,837 1,367 132 309 29 0.3% 0.1% 0.1% 0.0% (3) Other Expenses 7,212 5,367 517 1,212 115 1.2% 0.4% 0.4% 0.2% (4) Subtotal 9,048 6,734 649 1,521 144 1.6% 0.5% 0.5% 0.2% (5) (6) FINANCE GROUP (7) IN...

AI summary The text presents a financial breakdown of expenses under the Regulatory Affairs and Finance Group sections, including Advocacy, Internal Audit, Investor Relations, and other corporate functions, with comparisons across different time periods and percentages.

- - - - - 0.0% 0.0% 0.0% 0.0% (74) CORPORATE TAXES (10,337) (4,703) (1,772) (3,478) (384) -1.1% -1.3% -1.1% -0.6% (75) (10,608) 0.0% 0.0% 0.0% 0.0% (76) TOTAL OPERATING EXPENSES 763,829 344,484 102,973 263,937 52,435 79.5% 75.4% 80.0% 87.8...

AI summary The text presents financial data related to corporate taxes and total operating expenses, showing percentages and monetary values over different periods. It includes figures such as corporate taxes and operating expenses, along with their percentage changes.

329,747 59,709 100.00% 100.00% 100.00% 100.00% (94) (95) Generation (96) Transmission (97) Distribution (98) Retail (99) Total REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 2...

AI summary The document presents a functionalization of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2026, including various categories such as Shore Power, Load Follow, ELIADC, and others. The data is presented in thousands of dollars with multiple columns indicating different expense categories.

0 7 (67) SMART METER OPERATIONS CENTER (SMOC) - 27 (68) METER SERVICES - FIELD 1 24 (69) ELECTRICAL WIRING INSPECTION - FIELD 2 77 (70) REVENUE OPS ADMIN - - (71) CREDIT SERVICES - - (72) BAD DEBT EXPENSE 2 84 (73) MARKETING & SALES - - (7...

AI summary The text lists various operational and financial categories with associated numbers, including revenue operations, credit services, bad debt expenses, and customer service totals, providing an overview of different departments and their financial contributions.

VICE 13 481 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 29 of 100 EXHIBIT 4 - Detail A PAGE 6 OF 6 NOVA SCOTIA POWER INC. NOVA SCOTIA POWER INC. FUNCTIONALIZATION OF OPERAT...

AI summary The document provides a functionalization of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2026, presented in thousands of dollars. It is part of a compliance filing related to GRA (likely a regulatory or compliance acronym).

- - (14) CORPORATE CONTROLLER 2 91 (15) CORP. PERFORMANCE & BACK OFFICE - - (16) (17) TOTAL FINANCE 4 189 (18) (19) ENTERPRISE SERVICES (20) PROCUREMENT & FACILITIES 12 298 (21) INFORMATION TECHNOLOGY 29 1,114 (22) (23) TOTAL ENTERPRISE SE...

AI summary The text lists various departments and their associated financial figures, including Corporate Controller, Enterprise Services, Human Resources, and Other Expenses, with corresponding numbers and totals.

- - (72) INTEREST NET 107 3,616 (73) PREFERRED DIVIDENDS - - (74) CORPORATE TAXES (8) (271) (75) (10,608) - - (76) TOTAL OPERATING EXPENSES 513 19,575 (77) - - (78) NON-OPERATING REVENUE: - - (79) GREEN POWER SURCHARGE - - (80) EXPORT SALES

AI summary The text presents financial data related to operating expenses and non-operating revenue, including items such as interest net, preferred dividends, corporate taxes, and export sales. It highlights the breakdown of expenses and revenue for a specific period.

665 24,695 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 30 of 100 EXHIBIT 4 NOVA SCOTIA POWER INC. FUNCTIONALIZATION OF OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2...

AI summary This document presents a functionalization of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2026, categorized into production, transmission, distribution, retail, and direct expenses.

S 9,000.2 3,760 1,041 2,521 1,461 218 (40) TOTAL CORPORATE GROUPS 103,848.8 51,154 13,029 24,004 13,092 2,571 (41) (42) GENERATION SERVICES 11,909.6 11,600 0 0 0 310 (43) OTHER EXPENSES 7,377.5 3,082 853 2,067 1,197 178 (44) DIRECT ADMIN....

AI summary The text presents a table of financial figures related to corporate groups, generation services, and other expenses, including depreciation and grants in lieu of taxes. It includes various line items such as total corporate groups, generation services, and depreciation for steam and hydro. The data appears to be part of a regulatory proceeding related to financial reporting and expense categorization.

TRANSMISSION OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2026 (IN THOUSANDS OF DOLLARS)

AI summary The document presents transmission operating expenses for the year ending December 31, 2026, with figures provided in thousands of dollars. It outlines the financial details related to the transmission operations during that period.

ABOVE-THE- BELOW-THE- LINE RATE LINE RATE TOTAL CLASSES CLASSES (1) OPERERATION & MAINTENANCE (2) DIRECT 22,328 723 23,051 (3) NON-DIRECT 13,882 450 14,331 (4) (5) TOTAL OPER. & MAINT. 36,210 1,173 37,383 (6) DEPRECIATION (7) DIRECT 25,397...

AI summary The text presents a financial breakdown of operational and maintenance costs, depreciation, taxes, interest, and retained earnings, categorized into above-the-line and below-the-line line rate classes. It includes figures for direct and non-direct costs, corporate tax, regulatory amortization, grants, and interest totals.

6 4,422 140,648 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 32 of 100 EXHIBIT 5 Page 1 of 5 NOVA SCOTIA POWER INC. CLASSIFICATION OF OPERATING EXPENSES FOR THE YEAR ENDING...

AI summary The document presents a classification of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2026, including total, demand, energy, and customer expenses, though specific details are redacted.

GENERATION FUNCTION (1) FUEL 434,033 $0 $434,033 - (2) PURCHASES - OTHER THAN BIOMASS AND WIND 18,420 $8,334 $10,086 - (3) PURCHASES - BIOMASS 20,238 $5,365 $14,874 - (4) MARITIME LINK 198,036 $89,600 $108,436 (5) PURCHASES - WIND ERIS 33,...

AI summary The document text presents a detailed breakdown of various generation and operational costs, including fuel, purchases from different energy sources, imports, capacity credits, and maintenance expenses. It includes line items such as biomass, wind, hydro, and other generation-related costs.

0 0 - (34) STEAM AND ASH SALES -5,018 -1,293 -3,725 - (35) OTHER REVENUE -3,370 -868 -2,501 - (36) RETURN (PROFIT/LOSS) 88,982 35,232 53,749 - (37) (38) TOTAL GENERATION $1,334,978.846 $356,253.788 $978,725.059 - REDACTED (CONFIDENTIAL INF...

AI summary The document presents a classification of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2026, with a focus on transmission function expenses, including high-voltage transmission costs.

(2) O&M - HV Before Storm Expense 0 0 0 - (3) O&M - HV Storm Expense 0 0 0 - (4) REG. AFFAIRS - ADVOCACY EXPENSE 0 0 0 - (5) GRANTS IN LIEU OF TAXES 0 0 0 - (6) Depreciation: (7) TRANSMISSION 0 0 0 - (8) GENERAL PROPERTY 0 0 0 - (9) (10) I...

AI summary The text presents financial data for various categories including O&M expenses, depreciation, interest, taxes, and revenue, with specific figures listed for HV and EHV systems. The data shows no activity in several areas, while some entries have non-zero values, particularly for EHV systems.

$0 - REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 34 of 100 EXHIBIT 5 Page 3 of 5 NOVA SCOTIA POWER INC. CLASSIFICATION OF OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31...

AI summary The document presents a classification of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2026, categorized into total, demand, energy, and customer expenses, with values in thousands of dollars.

-65 -65 0 - (35) RETURN (PROFIT/LOSS) 1,238 1,238 0 - (36) Subtotal 7,670 7,670 0 - (37) (38) POLE SERVICES -16,364 -5,999 0 (10,365.7) (39) OTHER REVENUE -709 -359 0 (350.2) (41) TOTAL DISTRIBUTION $312,673.494 $165,600.74 $0 147,072.8 RE...

AI summary The document presents a classification of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2026, including total, demand, energy, and customer expenses, with figures in thousands of dollars.

,725.1 $188,501.5 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 36 of 100 EXHIBIT 5 Page 5 of 5 NOVA SCOTIA POWER INC. CLASSIFICATION OF OPERATING EXPENSES FOR THE YEAR ENDIN...

AI summary The document contains a redacted portion of a compliance filing related to the 2026-2027 GRA (General Regulatory Authority) and includes a classification of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2026.

CLASSIFICATION OF OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2026 (IN THOUSANDS OF DOLLARS)

AI summary The document presents a classification of operating expenses for the year ending December 31, 2026, with figures provided in thousands of dollars. It outlines various categories of expenses incurred during the period.

(1) INTERMEDIATE CLASSIFICATION (2) (3) THERMAL O&M $110,090 (4) HYDRO O&M $3,504 (5) WIND O&M $15,596 (6) BIOMASS O&M $12,560 (7) LM6000 O&M $1,200 (8) OTHER CT's O&M $2,966 (9) GENERATION BATTERIES $0 (10) RADIAL TO GENERATION TRANS. $2,...

AI summary The text presents a detailed breakdown of operational and maintenance (O&M) costs for various energy generation sources, including thermal, hydro, wind, biomass, and others, along with classification factors and changes in percentages over time. It highlights the net thermal O&M costs and provides a comparison of current and previous values for different energy sources.

2,966 GENERATION BATTERIES 0 RADIAL TO GENERATION TRANS. 2,627 (34) (35) NET THERMAL O&M D&E SPLIT $148,543 (36) (37) THERMAL O&M DMD. ALLOC. % 45.25% (38) THERMAL O&M ENG. ALLOC. % 54.75% (39) (40) BIOMASS DEMAND ALLOC % 45.25% (41) (42)...

AI summary The text provides a breakdown of various allocation percentages and financial figures related to generation, transmission, and distribution costs. It includes O&M (operations and maintenance) allocations for thermal, biomass, and wind energy, as well as property allocations for different segments of the power system.

16,753 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 37 of 100 EXHIBIT 6 PAGE 1 OF 6 NOVA SCOTIA POWER INC. ALLOCATION OF OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31,...

AI summary The document presents an allocation of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2026, with the information redacted as confidential.

192.93 9.85 53.44 6.09 5.47 7.04 10.92 9.01 4.16 1.40 See BCF File (9) OPER. & MAINT. - STEAM 49,818 32,004 1,634 8,866 1,011 908 1,167 1,812 1,494 690 232 D-3A (10) OPER. & MAINT. - HYDRO 1,586 1,019 52 282 32 29 37 58 48 22 7 D-3A (11) O...

AI summary The text presents a detailed breakdown of operational and maintenance costs across various energy generation and transmission categories, including steam, hydro, wind, biomass, and others, with associated figures and references to a file (BCF File) and document (D-3A).

0 0 -5,558 0 0 DIRECT (31) ALLOC. OF ELI 2P-RTP DMD. ADJ. 5,558 3,571 182 989 113 101 130 202 167 77 26 D-4 (32) ELI 2P-RTP PRIORITY DMD ADJ. -556 0 0 0 0 0 0 0 -556 0 0 DIRECT (33) ALLOC. OF ELI 2P-RTP PRI. DMD. ADJ. 556 357 18 99 11 10 1...

AI summary The document presents a detailed financial breakdown of various allocation and adjustment items, including ELI 2P-RTP demand adjustments and total generation figures. It includes operating and maintenance costs, transmission expenses, and regulatory affairs expenses, with some line items marked as direct or related to specific categories.

0 0 P-15A (50) (51) TOTAL - HV $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 38 of 100 EXHIBIT 6 PAGE 2 OF 6 NOVA SCOTIA POWER INC. ALLOCATIO...

AI summary The document presents a table related to the allocation of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2026. The table is part of a compliance filing under the General Regulatory Authority (GRA) and includes a redacted section indicating confidential information has been removed.

(1) Transmission - EHV and HV combined (2) OPERATING & MAINT. (Before Storm Expense) 35,820 23,012 1,175 6,375 727 653 839 1,303 1,074 496 167 D-3A (3) OPERATING & MAINT. (Storm Expense) 258 165 8 46 5 5 6 9 8 4 1 D-3A (4) REG. AFFAIRS - A...

AI summary The text presents financial data related to transmission, operating and maintenance expenses, regulatory affairs, depreciation, interest, preferred dividends, corporate taxes, and non-operating revenue. It includes figures categorized under different expense and revenue items, with some line items marked with references such as D-3A, R-2, P-8B, and EXH 6D.

360 P-16 (29) (30) Streetlights: (31) OPERATING & MAINT. 814 0 0 0 0 0 0 0 0 0 814 EXH 6A (32) GRANTS IN LIEU OF TAXES 329 0 0 0 0 0 0 0 0 0 329 P-9A (33) Depreciation 4,480 0 0 0 0 0 0 0 0 0 4,480 EXH 6D (34) INTEREST NET OF AFUDC 874 0 0...

AI summary The text presents a financial table with various line items related to operating and maintenance costs, depreciation, interest, corporate taxes, and returns. The table includes figures for different years and exhibits, with a subtotal and total distribution amount listed.

$18,243 8,948.65 614.10 3,887.66 624.95 452.50 776.26 1,198.05 1,403.95 198.97 137.84 See BCF (6) PURCHASES - WIND NRIS $60,876 30,002.57 2,047.06 12,928.21 2,066.72 1,503.32 2,578.18 3,976.65 4,647.45 667.34 458.33 See BCF (7) IMPORTS $94...

AI summary The document presents a detailed breakdown of financial figures related to various operational and maintenance costs across different energy sources, including wind, hydro, biomass, and LM6000. The data includes specific amounts and references to external documents such as BCF and E-1A.

67 285 439 505 78 51 E-1A (12) OPER. & MAINT. - LM6000 657 328 22 139 22 16 27 42 48 7 5 E-1A (13) OPER. & MAINT. - OTHER CT's 0 0 0 0 0 0 0 0 0 0 0 E-1A (14) OPER. & MAINT. - GENERATION BATTERIES 0 0 0 0 0 0 0 0 0 0 0 E-1A (15) OPER. & MA...

AI summary The document presents a table with various operational and maintenance costs, including items like 'OPER. & MAINT. - LM6000' and 'OPER. & MAINT. - RADIAL TO GENERATION TRANS.' with corresponding numerical values. It also includes entries related to DSM allocation and regulatory affairs expenses, as well as grants in lieu.

0 0 0 0 0 0 0 0 0 EXH 6D (38) INTEREST NET 0 0 0 0 0 0 0 0 0 0 0 P-18A (39) PREFERRED DIVIDENDS 0 0 0 0 0 0 0 0 0 0 0 P-18A (40) CORPORATE TAXES 0 0 0 0 0 0 0 0 0 0 0 P-18A (41) Non-Operating Revenue: (42) OTHER REVENUE 0 0 0 0 0 0 0 0 0 0...

AI summary The text presents a table with financial figures related to interest, preferred dividends, corporate taxes, and operating and maintenance expenses for a transmission system, but all values are zero. It includes references to various financial categories and line items, but no specific details or explanations are provided.

EXHIBIT 6 PAGE 4 OF 6 NOVA SCOTIA POWER INC. ALLOCATION OF OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2026 (IN THOUSANDS OF DOLLARS) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) TOTAL SMALL GENERAL SMALL MEDIUM LARGE ALLOCAT...

AI summary This exhibit presents a table for the allocation of operating expenses by Nova Scotia Power Inc. for the year ending December 31, 2026, categorized by different customer types and sizes.

(1) CUST. CLASSIFICATION (2) (3) DISTRIBUTION (4) OPERATING & MAINT. $58,644 $53,013 $2,986 $1,328 $2 $249 $17 $3 $0 $1 $1,045 EXH 6A (5) REG. AFFAIRS - ADVOCACY EXPENSE 220 107 17 87 0 10 0 0 0 0 0 R-2 (5) GRANTS IN LIEU 7,278 6,495 370 2...

AI summary The text presents a financial breakdown of various operational and non-operational costs and revenues, including distribution, operating and maintenance expenses, depreciation, interest, corporate taxes, and pole services revenue, with associated figures and references to exhibits and pages.

0 0 0 0 0 0 0 0 0 C-7 (23) METER DATA SERVICES 716.827 45 65 114 104 75 78 111 3 121 0 O-16 (24) PAYMENT SERVICES 0.000 0 0 0 0 0 0 0 0 0 0 C-7 (25) CREDIT SERVICES 4,965.923 4,171 118 608 0 69 0 0 0 0 0 EXH 6C (26) MARKETING & SALES 0.000...

AI summary The document presents a table with various expense categories and their associated financial figures, including Meter Data Services, Payment Services, Credit Services, and others, along with references to exhibits and orders. It outlines costs and revenues across different line items and periods.

REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 41 of 100 EXHIBIT 6 PAGE 5 OF 6 NOVA SCOTIA POWER INC. ALLOCATION OF OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2026 (IN THOUSANDS OF DOLLARS) (1) (2) (3) (4) (5)...

AI summary The document provides an allocation of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2026, categorized by different customer segments and business areas.

1 5 9,903 (51) Bill Months 6,478,209 5,867,114 329,312 134,880 240 25,219 2,105 434 12 60 118,832 (52) (53) Average Monthly Cost per Customer 29.10 27.98 30.59 58.90 1,746.98 55.02 173.11 1,637.30 2,928.28 26.60 REDACTED (CONFIDENTIAL INFO...

AI summary The document presents financial data related to Nova Scotia Power Inc.'s operating expenses for the year ending December 31, 2026, including figures for bill months, average monthly costs per customer, and other financial metrics.

ist. (Customer) 39,613 0 2,458 3,632 1,393 7,482 7,482 329,312 $22.721 (16) Total Distribution 79,659 0 3,156 7,501 2,801 13,458 13,458 $7.978 - $22.721 (17) Total Transmission/Distribution $110,933 $0 $4,340 $9,691 $3,900 $17,931 $17,931...

AI summary The text presents a table with various financial and operational metrics, including customer counts, costs, and revenue figures. It includes rows for distribution, transmission, and customer-related costs, as well as unit costs and marketing expenses. The data appears to be part of a regulatory proceeding related to utility operations and financial reporting.

. (Customer) 54 0 2 5 2 9 9 240 $36.218 (16) Total Distribution 12,908 0 366 1,241 454 2,061 2,061 $3.212 - $36.218 (17) Total Transmission/Distribution $32,253 $0 $1,092 $2,596 $1,134 $4,822 $4,822 $7.534 - $36.218 (18) kW.h Sold 358,568...

AI summary The text presents a series of financial figures and costs related to distribution, transmission, and customer-related activities, including total distribution, transmission/distribution costs, unit costs, and marketing expenses. These figures are likely part of a regulatory proceeding analyzing cost structures and financial performance.

REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 54 of 100 EXHIBIT 6A NOVA SCOTIA POWER INC. ALLOCATION OF DISTRIBUTION OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2026 (IN THOUSANDS OF DOLLARS) (1) (2) (...

AI summary The document provides an exhibit detailing the allocation of distribution operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2026, with various categories and factors for expense distribution.

IBILITY 100.00% 64.24% 3.28% 17.80% 2.03% 1.82% 2.34% 3.64% 3.00% 1.39% 0.47% O-2A (17) DMD. - OPER.EXP. - TRANS. EHV $258 $165 $8 $46 $5 $5 $6 $9 $8 $4 $1 (18) % RESPONSIBILITY 100.00% 64.24% 3.28% 17.80% 2.03% 1.82% 2.34% 3.64% 3.00% 1.3...

AI summary The text presents a series of financial figures and percentages related to operational expenses across various categories such as transmission, distribution, and engineering. These figures include dollar amounts, percentages of responsibility, and references to specific reports and categories (e.g., O-2A, O-2B).

9.32% 5.13% 0.00% F-4 (14) PROCUREMENT % RESPONSIBILITY 100.0% 25.0% 25.0% 25.0% 25.0% F-5 LABOUR-RELATED O&M EXPENSES BY FUNCTIONAL (15) O&M EXPENSES BY LABOUR VS NON-LABOUR O&M EXPENSES BY FUNCTIONAL AREAS AREAS (16) FUNCTIONAL AREA Befo...

AI summary The text presents a detailed breakdown of procurement responsibilities and labor-related O&M expenses across different functional areas such as generation, transmission, distribution, and retail. It includes percentages and monetary figures for various categories.

"Input Data" tab Adjustments Locati Cell 2025 2026 2027 Category Label Share on Category Label Share Location (1) Operating Expenses (2) O&M Expenses (3) Reliability Implementation (Energy Delivery) - $2,000,000; (2,000,000) (2,000,000) TR...

AI summary The text presents a table of operating and other expenses for the years 2025 to 2027, including items such as Reliability Implementation, Communications and Public Affairs, Grid Modernization, and Regulatory Amortization, with associated costs and percentages allocated to different categories.

(10) Regulatory Amortization (677,610) (677,610) Regulatory Amort. 100.0% K322 (11) Fuel Expense (1,808,772) (1,729,291) ML - NS Block (BCF COSS) 100.0% B8..M8 and B35..M37 (12) FAM Deferral Interest 328,135 343,365 Interest & Other Exp 10...

AI summary The text provides a summary of various financial and regulatory expenses, including regulatory amortization, fuel expense, FAM deferral interest, AMI opt-out charges, and income tax. It outlines figures related to operating expenses and the rate base, indicating financial performance and regulatory considerations.

otal Operating Expenses (10,843,900) (9,863,846) (22) (23) Rate Base TRANSMISSION PLANT net of ECEI batteries and Gen-related (24) Ending PP&E (Transmission) (34,742,827) - - Transmission Assets 100.0% H49 REDACTED (CONFIDENTIAL INFORMATIO...

AI summary The document presents financial data including operating expenses and rate base figures for Nova Scotia Power Inc. for the years ending December 31, 2025 and 2026. It includes a detailed listing of C.O.S.S. input information, though parts of the document are redacted.

17,353 3,821 (101) CONTRACT RECEIVABLE 93,310 91,290 95,331 (102) Total 623,883 0 -146,018 623,882 652,079 595,686 (103) (104) Percentage of Transmission - EHV 100.00% ARO Total from Continuities Schedule (142,328) (149,707) (105) ARO & CO...

AI summary The text presents financial data including contract receivables, total rate base, and operating expenses. It includes figures related to asset retirement obligations (ARO) and percentages of transmission costs. These numbers are likely part of a regulatory filing or financial report.

0.0 (189) (190) VP ENTERPRISE SERVICES (191) PROCUREMENT & FACILITIES 12,283.6 (192) INFORMATION TECHNOLOGY 46,048.8 (193) (194) VP HUMAN RESOURCES (195) HUMAN RESOURCES 9,000.2 -2,000 (196) (197) POWER PRODUCTION (198) POWER PRODUCTION -...

AI summary The text presents a detailed breakdown of financial figures related to various departments and operations within an energy production company, including enterprise services, human resources, and power production. It includes costs associated with fuel, operating and maintenance, and different energy sources such as hydro, wind, solar, and biomass.

COMPARISON OF REVENUE TO EXPENSE RATIOS 1 FUNCTIONALIZATION OF AVERAGE RATE BASE 2 INITIAL CLASSIFICATION OF AVERAGE RATE BASE 2A FINAL CLASSIFICATION OF AVERAGE RATE BASE 2B ALLOCATION OF AVERAGE RATE BASE 3 ALLOCATION OF AVERAGE DISTRIBU...

AI summary The document outlines various sections related to the analysis and allocation of revenue, expenses, and rate bases within a regulatory proceeding. It includes topics such as the classification and allocation of average rate bases, operating expenses, and storm-related expenses and revenue.

(1) DEMAND CLASSIFICATION (2) (3) GENERATION FUNCTION (4) STEAM PLANT $388,772 $250,300 $13,250 $68,765 $7,877 $7,205 $8,309 $14,122 $11,693 $5,390 $1,861 D-3A (5) HYDRO PLANT 362,593 233,446 12,358 64,134 7,347 6,719 7,749 13,171 10,906 5...

AI summary The document presents a detailed breakdown of various generation plant costs, including steam, hydro, wind, and gas turbine plants, along with associated financial figures such as capital expenditures, operating expenses, and other related costs, categorized under different headings.

2 0 0 1,467 EXH 3F (25) U.G. LINES 46,244 41,874 2,372 964 0 183 0 0 0 0 851 EXH 3H (26) LINE TRANSFORMERS 0 0 0 0 0 0 0 0 0 0 0 (27) SERVICES 58,531 49,036 2,778 5,646 0 1,072 0 0 0 0 0 C-2B (28) METERS 68,109 57,177 3,664 5,765 33 1,141...

AI summary The document presents a detailed breakdown of various line and service costs, including underground lines, line transformers, services, meters, and street lighting, along with summaries and totals for customer and retail categories. It includes figures and exhibits for reference.

NDUSTRIAL 36 1,891.93 67,939 0.09 62 ( 8) PHP 1 1,824.69 1,825 0.00 2 ( 9) MUNICIPAL 5 1,891.93 9,460 0.01 9 (10) UNMETERED 9,882 N/A 0 0.00 0 (11) TOTAL 537,357 $74,835,591 100.00 $68,109 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACT...

AI summary The document presents a table with data on various categories, including industrial, municipal, and unmetered expenses, along with totals and allocations for Nova Scotia Power Inc. for the year ending December 31, 2027. The data includes figures for operating expenses across different functions.

(1) FUEL 366,094 310,870 - - - 55,224.5 (2) PURCHASED POWER: (3) OTHER THAN BIOMASS AND WIND 27,737 27,646 - - - 91.1 (4) BIOMASS 21,026 20,957 - - - 69.4 (5) MARITIME LINK 202,151 201,489 662.0 (6) WIND ENRIS 33,418 33,311 - - - 106.8 (7)...

AI summary The document presents a detailed breakdown of fuel and purchased power costs, including biomass, wind, and imports, along with operating and maintenance expenses for various energy sources such as thermal, hydro, wind, and solar. It includes figures for different years and cost differences.

- 432 8 (69) SMART METER OPERATIONS CENTER (SMOC) 1,194 - - 1,155 - 39.085 (70) METER SERVICES - FIELD 1,447 - - - 1,419 27 (71) ELECTRICAL WIRING INSPECTION - FIELD 4,655 - - - 4,567 88 (72) REVENUE OPS ADMIN - - - - - - (73) CREDIT SERVI...

AI summary The document presents a functionalization of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2027, including details on various operational costs such as smart meter operations, meter services, electrical wiring inspections, and credit services.

F OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2027 (IN THOUSANDS OF DOLLARS) (1) (2) (3) (4) (5) (6) (7) TOTAL PROD. TRANS. DIST. RETAIL DIRECT ALLOCATION EXPENSES EXPENSES EXPENSES EXPENSES EXPENSES EXPENSES FACTOR

AI summary The text presents a table outlining operating expenses for the year ending December 31, 2027, categorized into total expenses, production, transmission, distribution, retail, direct expenses, and allocation factors, all measured in thousands of dollars.

(1) REGULATORY AFFAIRS (2) Advocacy Expense 1,931 1,345 156 334 26 70 F - 2 (3) Other Expenses 7,582 5,280 612 1,310 104 277 F - 2 (4) Subtotal 9,513 6,625 767 1,643 130 347 (5) (6) FINANCE GROUP (7) INTERNAL AUDIT 1,825 1,271 147 315 25 6...

AI summary The text outlines various expenses categorized under Regulatory Affairs, Finance Group, and Enterprise Services, including Advocacy Expense, Internal Audit, Investor Relations, and Procurement & Facilities, with figures and references to different financial categories and subtotals.

1,588.0 F - 8 (71) GLACE BAY WRITE-OFF - - - - - - (72) INTEREST NET 154,226 64,106 29,258 51,096 4,136 5,630 (73) PREFERRED DIVIDENDS - - - - - - (74) CORPORATE TAXES 10,114 4,204 1,919 3,351 271 369 (75) (76) TOTAL OPERATING EXPENSES 1,7...

AI summary The text presents a financial summary with line items such as interest net, corporate taxes, and total operating expenses, along with non-operating revenue components like late payment charges and wiring inspections. These figures represent various financial activities and expenses.

) Total REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 26 of 102 EXHIBIT 4 - Detail A PAGE 3 OF 6 NOVA SCOTIA POWER INC. FUNCTIONALIZATION OF OPERATING EXPENSES FUNCTIONALIZAT...

AI summary The text presents a table titled 'Functionalization of Operating Expenses' for Nova Scotia Power Inc. for the year ending December 31, 2027. The table includes various expense categories and their distribution across production, transmission, distribution, and retail functions.

0.0% 0.0% (14) HYDRO OPERATING & MAINT. 2,306 2,306 - - - 0.5% 0.0% 0.0% 0.0% (15) WIND - OPERATING & MAINT. 8,214 8,214 - - - 1.8% 0.0% 0.0% 0.0% (16) SOLAR - OPERATING & MAINT. - - - - - 0.0% 0.0% 0.0% 0.0% (16) BIOMASS - OPERATING & MAI...

AI summary The text presents a table detailing various operating and maintenance costs for different energy generation sources, including hydro, wind, solar, biomass, and combustion turbines, along with fuel procurement and transmission costs, with percentages indicating their contribution to total power production costs.

46.1% REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 27 of 102 EXHIBIT 4 - Detail A PAGE 4 OF 6 NOVA SCOTIA POWER INC. FUNCTIONALIZATION OF OPERATINGFUNCTIONALIZATION EXPENSES...

AI summary The document provides a detailed breakdown of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2027, categorized into production, transmission, distribution, and retail expenses, along with their respective weights.

(1) REGULATORY AFFAIRS (2) Advocacy Expense 1,861 1,345 156 334 26 0.3% 0.1% 0.1% 0.0% (3) Other Expenses 7,305 5,280 612 1,310 104 1.2% 0.4% 0.4% 0.2% (4) Subtotal 9,166 6,625 767 1,643 130 1.5% 0.5% 0.5% 0.2% (5) (6) FINANCE GROUP (7) IN...

AI summary The text provides a detailed breakdown of expenses under the Regulatory Affairs and Finance Group categories, including Advocacy Expense, Internal Audit, Investor Relations, and others, with comparisons across different time periods and percentages of total costs.

0.2% 0.2% 0.1% (15) CORP. PERFORMANCE & BACK OFFICE - - - - - 0.0% 0.0% 0.0% 0.0% (16) (17) TOTAL FINANCE 7,284 4,927 752 1,511 95 1.1% 0.5% 0.4% 0.2% (18) (19) ENTERPRISE SERVICES (20) PROCUREMENT & FACILITIES 12,233 3,058 3,058 3,058 3,0...

AI summary The text presents a detailed breakdown of various financial and operational expenses, including corporate performance, enterprise services, human resources, and other expenses, with percentages and figures indicating allocations and changes over time.

Total REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 28 of 102 EXHIBIT 4 - Detail A PAGE 5 OF 6 NOVA SCOTIA POWER INC. FUNCTIONALIZATION OF OPERATING EXPENSESFUNCTIONALIZATION...

AI summary The document presents a functionalization of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2027, including categories such as Shore Power, Load Follow, ELIADC, and others, with figures in thousands of dollars.

27 (71) ELECTRICAL WIRING INSPECTION - FIELD 2 88 (72) REVENUE OPS ADMIN - - (73) CREDIT SERVICES - - (74) BAD DEBT EXPENSE 2 95 (75) MARKETING & SALES - - (76) METER SERVICES - INSPECTORS - - (77) TOTAL CUSTOMER SERVICE 9 557 REDACTED (CO...

AI summary The text contains a list of financial and operational categories, including revenue operations, credit services, bad debt expense, marketing and sales, meter services, and total customer service, along with associated costs. It also mentions a redacted compliance filing related to GRA for the period 2026-2027.

REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 29 of 102 EXHIBIT 4 - Detail A PAGE 6 OF 6 NOVA SCOTIA POWER INC. FUNCTIONALIZATION OF OPERATING EXPENSES FUNCTIONALIZATION OF O...

AI summary The document presents a functionalization of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2027, with various categories and subcategories of expenses listed. It includes references to programs and systems such as ELIADC and OATT.

LER 2 133 (15) CORP. PERFORMANCE & BACK OFFICE - - (16) (17) TOTAL FINANCE 5 276 (18) (19) ENTERPRISE SERVICES (20) PROCUREMENT & FACILITIES 12 423 (21) INFORMATION TECHNOLOGY 29 1,600 (22) (23) TOTAL ENTERPRISE SERVICES 41 2,022 (24) (25)...

AI summary The text provides a breakdown of various expense categories, including corporate performance, enterprise services, human resources, and other expenses, with corresponding numerical values listed. It appears to be a financial summary or budget allocation report.

S 2 108 (69) GENERALPROPERTY:DISTRIBUTION/ TRANSMIS 10 320 (70) GENERALPROPERTY:NON- FUNCTIONILIZED 36 1,588 (71) GLACE BAY WRITE-OFF - - (72) INTEREST NET 126 5,630 (73) PREFERRED DIVIDENDS - - (74) CORPORATE TAXES 8 369 (75) (76) TOTAL O...

AI summary The text presents a list of financial categories and associated values, including operating expenses, taxes, and revenue sources, with some categories having zero or missing values. It appears to be part of a financial report or accounting statement.

37,572 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 30 of 102 EXHIBIT 4 NOVA SCOTIA POWER INC. FUNCTIONALIZATION OF OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2027...

AI summary The document presents a functionalization of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2027, categorized into production, transmission, distribution, retail, and direct expenses.

(11) THERMAL - OPERATING & MAINT. 60,864.0 58,625 0 0 0 2,239 (12) HYDRO - OPERATING & MAINT. 2,394.5 2,306 0 0 0 88 (13) WIND - OPERATING & MAINT. 8,527.7 8,214 0 0 0 314 (14) WIND - OPERATING & MAINT. 139.2 0 0 0 0 139 (15) BIOMASS - OPE...

AI summary The text presents a table of operating and maintenance costs for various energy generation and transmission/distribution operations, including thermal, hydro, wind, biomass, and combustion turbine systems, along with associated figures for different years and categories.

ABOVE-THE- BELOW-THE- LINE RATE LINE RATE TOTAL CLASSES CLASSES (1) OPERERATION & MAINTENANCE (2) DIRECT 20,472 960 21,432 (3) NON-DIRECT 14,284 670 14,954 (4) (5) TOTAL OPER. & MAINT. 34,756 1,631 36,387 (6) DEPRECIATION (7) DIRECT 28,741...

AI summary The text presents a financial breakdown of operational and maintenance costs, depreciation, taxes, interest, and retained earnings, categorized into above-the-line and below-the-line line items. The total amount is reported as $165,253.

57,833 7,419 165,253 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 32 of 102 EXHIBIT 5 Page 1 of 5 NOVA SCOTIA POWER INC. CLASSIFICATION OF OPERATING EXPENSES FOR THE YEAR EN...

AI summary The text provides a classification of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2027, with categories including total, demand, energy, and customer expenses, though the data is redacted and presented in a table format.

GENERATION FUNCTION (1) FUEL 310,870 $0 $310,870 - (2) PURCHASES - OTHER THAN BIOMASS AND WIND 27,646 $13,322 $14,324 - (3) PURCHASES - BIOMASS 20,957 $5,810 $15,147 - (4) MARITIME LINK 201,489 $97,094 $104,395 (5) PURCHASES - WIND ERIS 33...

AI summary The text outlines generation and operational costs, including fuel, purchases, imports, and maintenance expenses for various energy sources such as biomass, wind, hydro, and others. It also includes entries related to demand-side management (DSM) and regulatory affairs expenses.

(39) EXHIBIT 5 (40) Page 2 of 5 (41) NOVA SCOTIA POWER INC. (42) CLASSIFICATION OF OPERATING EXPENSES (43) FOR THE YEAR ENDING DECEMBER 31, 2027 (44) (IN THOUSANDS OF DOLLARS) (45) (46) (1) (2) (3) (4) (47) TOTAL DEMAND ENERGY CUSTOMER (48...

AI summary This document presents Nova Scotia Power Inc.'s classification of operating expenses for the year ending December 31, 2027, with a focus on transmission, O&M, and other corporate expenses, all of which are reported as zero across various categories.

EFERRED DIVIDENDS 0 0 0 - (64) CORPORATE TAXES 0 0 0 - (65) Non-Operating Revenue: (66) OTHER REVENUE -0 -0 -0 - (67) RETURN (PROFIT/LOSS) 0 0 0 - (68) (69) TOTAL - HV 0 0 0 - (70) (71) Transmission - EHV and HV combined (72) (73) O&M - EH...

AI summary The text outlines financial and operational details, including corporate taxes, operating and maintenance expenses, depreciation, interest, and grants. It includes line items such as storm expenses, advocacy expenses, and depreciation for transmission and general property.

0 - (86) FCR DEFERRAL 0 0 0 - (87) RETURN (PROFIT/LOSS) 40,284 40,284 0 - (88) (89) TOTAL - EHV 157,833 157,833 0 - (90) (91) TOTAL TRANSMISSION $157,833 $157,833.34 $0 - REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA C...

AI summary This document contains a classification of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2027, with categories including total, demand, energy, and customer expenses. The document is part of a compliance filing and includes financial data in thousands of dollars.

RIBUTION -Line Transformers 29,227 29,227 0 - (19) DISTRIBUTION -Services 3,398 0 0 3,398.5 (20) DISTRIBUTION -Meters 8,124 0 0 8,124.2 (21) GENERAL PROPERTY 28,301 16,886 0 11,415.0 (22) (23) INTEREST NET OF AFUDC 50,185 28,844 0 21,341.0...

AI summary The document presents a detailed financial breakdown of various distribution-related expenses and revenues, including line transformers, meters, corporate taxes, and streetlight maintenance, with specific figures for different line items and subtotals.

-4,770 0 (11,924.8) (39) OTHER REVENUE -752 -386 0 (365.6) (41) TOTAL DISTRIBUTION $334,200 $180,354.66 $0 153,844.9 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 35 of 102 E...

AI summary The document presents a classification of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2027, including total, demand, energy, and customer expenses, though much of the content is redacted.

(19) PREFERRED DIVIDENDS 0 0 0 - (20) CORPORATE TAXES 271 0 0 271.2 (21) Non-Operating Revenue: (22) LATE PAYMENT CHARGE (6,032.1) 0 0 (6,032.1) (23) CONNECTION CHARGES AND METER REMOVAL (3,675.0) 0 0 (3,675.0) (24) NSF (160.2) 0 0 (160.2)...

AI summary The document presents a classification of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2027, including items such as preferred dividends, corporate taxes, late payment charges, and other non-operating revenues and expenses.

CLASSIFICATION OF OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2027 (IN THOUSANDS OF DOLLARS)

AI summary The document presents a classification of operating expenses for the year ending December 31, 2027, with figures provided in thousands of dollars. It outlines various expense categories, though specific details and discussions are not included in the provided text.

(1) INTERMEDIATE CLASSIFICATION (2) (3) THERMAL O&M $112,098 (4) HYDRO O&M 4,410 (5) WIND O&M 15,706 (6) BIOMASS O&M 12,581 (7) LM6000 O&M 1,209 (8) OTHER CT's O&M 3,182 GENERATION BATTERIES $0 RADIAL TO GENERATION TRANS. $2,680 (9) (10) N...

AI summary The text presents a detailed breakdown of operational and maintenance (O&M) costs for various energy generation sources, including thermal, hydro, wind, biomass, and others, along with intermediate classification factors and cost allocations. It includes figures for different O&M categories and percentages for cost distribution.

EXHIBIT 6 PAGE 1 OF 6 NOVA SCOTIA POWER INC. ALLOCATION OF OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2027 (IN THOUSANDS OF DOLLARS) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) TOTAL SMALL GENERAL SMALL MEDIUM LARGE ALLOCAT...

AI summary This document presents a table outlining the allocation of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2027. It categorizes expenses based on demand classification and customer type, including domestic, general, industrial, and others.

253.02 13.39 69.51 7.96 7.28 8.40 14.28 11.82 5.45 1.88 See BCF File (9) OPER. & MAINT. - STEAM 54,022 34,780 1,841 9,555 1,095 1,001 1,155 1,962 1,625 749 259 D-3A (10) OPER. & MAINT. - HYDRO 2,125 1,368 72 376 43 39 45 77 64 29 10 D-3A (...

AI summary The document presents a table of operational and maintenance costs across various energy generation and transmission categories, including steam, hydro, wind, biomass, and others, with associated figures and references to the BCF File and D-3A.

HV $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 38 of 102 EXHIBIT 6 PAGE 2 OF 6 NOVA SCOTIA POWER INC. ALLOCATION OF OPERATING EXPENSES FOR...

AI summary The document provides a table related to the allocation of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2027, with all values redacted. It is part of a compliance filing related to the Grid Reliability and Availability (GRA) for 2026-2027.

(1) Transmission - EHV and HV combined (2) OPERATING & MAINT. (Before Storm Expense) 34,364 22,124 1,171 6,078 696 637 734 1,248 1,034 476 165 D-3A (3) OPERATING & MAINT. (Storm Expense) 236 152 8 42 5 4 5 9 7 3 1 D-3A (4) REG. AFFAIRS - A...

AI summary The document presents a detailed breakdown of various financial categories, including operating and maintenance costs, regulatory affairs, depreciation, interest, and corporate taxes, with specific line items and associated references. It includes both pre-storm and storm-related expenses, as well as grants and deferrals.

,046 6,978 383 1,910 117 218 220 101 0 28 93 P-9 (22) DEPRECIATION 71,949 49,972 2,742 13,676 835 1,560 1,573 725 0 199 667 EXH 6D (23) INTEREST NET OF AFUDC 28,844 20,021 1,098 5,480 337 625 631 292 0 80 280 P-16 (24) PREFERRED DIVIDENDS...

AI summary The text presents a financial summary with various line items, including depreciation, interest, taxes, and revenue, along with associated page references and line numbers. It includes figures for different categories such as corporate taxes, non-operating revenue, and return on operations.

(30) Streetlights: (31) OPERATING & MAINT. 831 0 0 0 0 0 0 0 0 0 831 EXH 6A (32) GRANTS IN LIEU OF TAXES 318 0 0 0 0 0 0 0 0 0 318 P-9A (33) Depreciation 4,757 0 0 0 0 0 0 0 0 0 4,757 EXH 6D (34) INTEREST NET OF AFUDC 912 0 0 0 0 0 0 0 0 0...

AI summary The text provides a detailed breakdown of various financial and operational figures related to streetlights, including operating and maintenance costs, depreciation, interest, taxes, and returns. These figures are listed with corresponding numbers and references to exhibits and pages.

ION (32) Transmission - HV (not aplicable as a separate (33) item) (34) OPERATING & MAINT. (Before Storm Expense) 0 0 0 0 0 0 0 0 0 0 0 E-1B (35) OPERATING & MAINT. (Storm Expense) 0 0 0 0 0 0 0 0 0 0 0 E-1B (36) REG. AFFAIRS - ADVOCACY EX...

AI summary The text presents a financial summary with various line items related to transmission, operating and maintenance expenses, regulatory affairs, depreciation, interest, preferred dividends, and corporate taxes, all showing zero values across multiple years and categories.

0 0 0 0 0 0 0 0 0 P-18B (59) (60) TOTAL - EHV 0 0 0 0 0 0 0 0 0 0 0 (61) (62) TOTAL TRANSMISSION 0 0 0 0 0 0 0 0 0 0 0 (63) (64) TOTAL ENERGY $880,495.107 $462,041 $31,877 $193,334 $31,073 $22,756 $36,614 $59,485 $25,785 $10,651 $6,879 RED...

AI summary This document presents the allocation of operating expenses for Nova Scotia Power Inc. for the year ending December 31, 2027, with a focus on energy costs and transmission expenses, though most figures are redacted.

ALLOCATION OF OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2027 (IN THOUSANDS OF DOLLARS) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) TOTAL SMALL GENERAL SMALL MEDIUM LARGE ALLOCATION COMPANY DOMESTIC GENERAL GENERAL LARGE IN...

AI summary The document presents a table outlining the allocation of operating expenses for the year ending December 31, 2027, categorized by different customer segments and factors.

REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 41 of 102 EXHIBIT 6 PAGE 5 OF 6 NOVA SCOTIA POWER INC. ALLOCATION OF OPERATING EXPENSES FOR THE YEAR ENDING DECEMBER 31, 2027 (IN THOUSANDS OF DOLLARS) (1) (2) (3) (4) (5)...

AI summary This document is a compliance filing from Nova Scotia Power Inc. regarding the allocation of operating expenses for the year ending December 31, 2027. It includes a table with various expense categories and classifications, though specific details are redacted.

st. (Customer) 94 0 3 9 3 15 15 431 $34.823 (16) Total Distribution 11,664 0 305 1,146 405 1,857 1,856.65 $1.604 - $34.823 (17) Total Transmission/Distribution $53,762 $0 $1,550 $4,165 $1,869 $7,584 $7,584 $6.593 - $34.823 (18) kW.h Sold 6...

AI summary The text presents a table of financial data related to distribution, transmission, and customer costs, including figures for various line items such as customer charges, marketing expenses, and unit costs per kilowatt-hour. The data includes totals and breakdowns for different categories and years.

17.12% 9.31% 4.85% 0.00% F-4 (14) PROCUREMENT % RESPONSIBILITY 100.0% 25.0% 25.0% 25.0% 25.0% F-5 LABOUR-RELATED O&M EXPENSES BY FUNCTIONAL (15) O&M EXPENSES BY LABOUR VS NON-LABOUR O&M EXPENSES BY FUNCTIONAL AREAS AREAS (16) FUNCTIONAL AR...

AI summary The text presents a detailed breakdown of procurement responsibilities and labor-related operational and maintenance (O&M) expenses across different functional areas, including generation, transmission, distribution, and retail. It includes percentages and monetary figures for various categories.

"Input Data" tab Adjustments Cell Cell 2025 2026 2027 Category Label Share Location Category Label Share Location (1) Operating Expenses (2) O&M Expenses (3) Reliability Implementation (Energy Delivery) - $2,000,000; (2,000,000) (2,000,000...

AI summary This section of the document outlines various operating and other expenses, including reliability implementation, communications, grid modernization, human resources, and executive compensation, with specific figures and percentages allocated to different categories and locations.

3,821 -18,341 (89) CONTRACT RECEIVABLE 97,427 95,331 99,523 (90) Total 586,179 0 -153,654 586,179 595,686 576,672 (91) (92) Percentage of Transmission - EHV 100.00% ARO Total from Continuities Schedule (149,707) (157,600) (93) ARO & COR fr...

AI summary The text presents financial data, including contract receivables, total amounts, and percentages related to transmission and asset retirement obligations (ARO). It includes figures for operating expenses and corporate management costs.

8,847 $7,602,473 (186) Environmental Services 2,623.4 2023 $418,234 $348,956 $2,871,700 $3,638,890 (187) Project Implementation 1,082.7 2024 $1,360,838 $1,492,826 $10,572,909 $13,426,574 (188) EAM 8,631.4 Total $3,894,405 $4,119,914 $31,46...

AI summary The text presents a financial table with figures related to various departments and programs, including Environmental Services, Project Implementation, and EAM, along with budget and cost data spanning multiple years and categories.

1.44063% 1.37% 1.28% 1.11% 0.76% 0.77% 0.92% 0.89% 1.00% 1.10% 1.27% 1.28% 1.13% Unmetered BUTU Total 100.00000% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% REDACTED (CONFIDENTIAL INFORMA...

AI summary The document presents various percentages and financial figures related to capacity credits, demand charges, and biomass calculations for the 2026-2027 GRA Compliance Filing. It includes data on installed capacity, fuel costs, and operating expenses for biomass projects.

3.3 Operating, Maintenance and General Costs

AI summary The section titled '3.3 Operating, Maintenance and General Costs' introduces a section of the regulatory proceeding document, though no detailed content or analysis is provided in the text. The focus appears to be on operational and maintenance cost structures, but further details are absent.

3.3.1 Overall Costs [69] NS Power applied for an increase in its OM&G expenses in the test years. The OM&G expenses represent costs for operating and maintaining the utility's generation, transmission, and distribution facilities; deliveri...

AI summary NS Power has requested an increase in OM&G expenses for 2026 and 2027, citing staffing increases and other factors. The proposed amounts reflect a reduction from a prior settlement agreement and are supported by a benchmarking report from ScottMadden Inc., which found that NS Power's OM&G costs are favorable compared to peers.

[76] NS Power noted that its current number of FTEs is 2,478 (as of the date of the IR response, November 5, 2025). It noted that the figures in the above table do not reflect the $9 million reduction in OM&G costs that the utility committ...

AI summary NS Power reported its current FTE count as of November 5, 2025, and explained that the table figures do not include a $9 million OM&G cost reduction from a settlement agreement. A $5.7 million vacancy adjustment was also made in 2026. NS Power acknowledged an increase in FTEs due to employee transfers to the IESO Nova Scotia during two phases of a transition.

3.3.1.1 Findings [90] NS Power's proposed increase in OM&G costs is significant. It represents a 20% increase in 2027 (18.3% in 2026) from the OM&G costs included in rates approved in the 2023-2024 GRA. The burden is on NS Power to show th...

AI summary NS Power's proposed 20% increase in OM&G costs for 2027 is partially justified by the Board, citing increased customer service demands, the 5-Year Reliability Plan, and new grid-scale battery installations to meet RES requirements. The Board emphasizes NS Power must prove all costs are just and reasonable.

e for the on-going costs for assets no longer used and useful – ratepayers, NS Power shareholders or others who may benefit from maintaining this infrastructure? This was discussed during the hearing: - Q. (Murphy) Would it be fair to say...

AI summary The discussion centers on the ongoing operational and capital costs of partially decommissioned hydro assets, questioning whether ratepayers, NS Power shareholders, or others benefit from retaining infrastructure. Williams confirms that decommissioned assets like dams would still incur O&M and capital costs, highlighting inconsistencies in traditional utility practices regarding decommissioning responsibilities.

prohibition against retroactive ratemaking, it is beneficial for the Board to have some flexibility to address extraordinary or novel situations by relaxing the rule against retroactive ratemaking so that the interests of both the utility...

AI summary The Board considers relaxing retroactive ratemaking rules for extraordinary situations but finds current GRA-related expenses do not meet exceptions. Factors from the Hurricane Fiona Decision are applied, concluding costs are not significant, unexpected, or beyond utility control. The Board asserts these expenses should have been included in prior GRA filings.

, 2004 FCA 149, where that court said: - 12 Even though cost of capital may be more difficult to estimate than some other costs, it is a real cost that the utility must be able to recover through its revenues. If the Board does not permit...

AI summary The Federal Court of Appeal (2004 FCA 149) emphasized that utilities must recover their cost of capital to remain viable, as failure to do so would hinder capital raising, refinance, and operations. The court rejected TransCanada Pipelines' argument that customer impact should influence return on equity, citing the Northwestern Utilities test as irrelevant to that factor.

3.10.2.1 Findings [680] The Board has several concerns with NS Power's request to implement AMI opt-out fees at this time. Based on the responses provided during the hearing, it appears that meter reader costs associated with opt-out meter...

AI summary The Board rejects NS Power's request to implement AMI opt-out fees due to insufficient cost delineation, questionable assumptions in cost projections, and reluctance to consider self-reporting alternatives. Concerns include inadequate justification for projected cost increases and failure to explore technological solutions for verifying customer readings.

4.3 Climate Change Adaptation Plan [702] The NSUARB, in its decision in NS Power's last general rate application, directed the utility to develop and file a climate change adaptation plan in consultation with interested parties: [339] The...

AI summary The NSUARB directed NS Power to develop a formal Climate Change Adaptation Plan by 2025, citing the need for structured climate resilience measures. The Board noted NS Power's existing steps but emphasized the need for a consultative, formalized plan to support storm cost recovery, enhance capital planning, and align with practices like Hydro-Québec's plan. Costs will be deferred for recovery post-next general rate application.

4.4.1 Findings [720] NS Power's firm capacity requirements in advance of 2030 continue to be the subject of review in several matters considered by the Board, including the Evergreen IRP Action Plan and Roadmap Update, the 10-Year System O...

AI summary The Board approves OM&G costs for Lingan 2 and Trenton 5 to ensure reliable service and NERC/NPCC compliance. NS Power's capacity requirements are under review in multiple proceedings, excluding Lingan 2's sustaining capital costs, which will be addressed in another matter (M12619). Key documents include the Evergreen IRP Action Plan and 10-Year System Outlook Report.

rts of the settlement agreement. It has made several adjustments in this decision to reduce NS Power's proposed revenue requirement or adjust the allocation of costs among customer classes, including: - A further reduction of $8 million in...

AI summary The Board has made several adjustments to NS Power's revenue requirement and cost allocations, including reducing operating expenses, executive compensation, and denying certain cost deferrals. Adjustments also include changes to peak load carrying capability and the denial of an AMI opt-out fee.

6.0 COMPLIANCE FILING [736] NS Power is to file a compliance filing based on the Board's findings in this decision. The compliance filing is to include, among other things: - A further reduction of $8 million in Operating, Maintenance and...

AI summary NS Power is required to file a compliance filing based on the Board's findings, including reductions in operating expenses, executive compensation, and fuel costs, as well as adjustments to the FAM POA and tariff. The Board approved the rates for 2026 and 2027, but emphasized the importance of timely filings to avoid confusion for customers.

SCHEDULE 5: OPERATING RESERVE – SPINNING RESERVE SERVICE Spinning Reserve Service is needed to serve load immediately in the event of a system contingency. Spinning Reserve Service may be provided by generating units that are on-line and l...

AI summary Spinning Reserve Service is required to ensure load is served during system contingencies. It is provided by on-line generating units operating below maximum output. The Transmission Provider must offer this service when serving load within its Operating Area, and the Transmission Customer must either purchase it or arrange alternatives. Monthly charges are outlined, with costs passed through if the Operating Area operator provides the service.

- HFO/Bunker Fuel Consumed - Financial Instruments used for Hedging (including gains, losses, fees and interest charges) - Quality Testing and Inventory Measurement Costs Effective: May 1, 2026 Page 13 of 33 - Standby Emergency Response Se...

AI summary The text details various operational and compliance costs associated with fuel consumption, transportation, emergency response, and environmental compliance, including specific items such as standby emergency response services, transportation costs, GHG emission compliance, and ash hauling costs.

- Biomass Commodity Consumed - Maintenance and Operating expenses for Fuel Handling (allocation between OM&G and FAM) - Third Party Quality Testing and Inventory Measurement Costs (e.g. surveys, density testing, sampling) - Storage fees (e...

AI summary The text outlines various costs associated with biomass commodity consumption, including fuel handling, quality testing, storage, environmental compliance, transportation, and ash hauling. It specifies that fuel handling and transportation expenses up to the bin collecting conveyor are classified as FAM expenses and identifies the relevant accounts in NS Power's Chart of Accounts.

Direct Evidence 1) Partially Confidential Appendix 05A 2) Confidential Appendix 05B 3) Partially Confidential Appendix 07A 4) Partially Confidential Appendix 07C 5) Partially Confidential Appendix 07D 6) Board Partially Confidential Append...

AI summary The document lists various appendices, studies, reports, and financial documents submitted as direct evidence in a regulatory proceeding. These include partially confidential and confidential materials related to financial outlook, rate base, depreciation, operating revenues and expenses, and capital structure.

PRELIMINARY ISSUES LIST The following issues will be dealt with in the public hearing on Nova Scotia Power Incorporated's (NS Power) 2026-2027 General Rate Application (Matter M12451) which is set to begin Wednesday, January 7, 2026: - 1....

AI summary The preliminary issues list outlines key topics for the public hearing on NS Power's 2026-2027 General Rate Application. These include fuel and purchased power costs, capital structure, rate design, depreciation studies, cybersecurity impacts, and climate change adaptation. The proceeding will address regulatory compliance, cost recovery, and the impact of various operational and financial factors on rate-setting.

Issue Operating, Maintenance & General Costs including, Pensions, Executive Compensation, and expenses shared with affiliates

AI summary The issue focuses on operating, maintenance, and general costs, including pensions, executive compensation, and expenses shared with affiliates, which are key considerations in the regulatory proceeding.

oard further notes that in the decision relating to NS Power's last annual storm restoration cost report, it noted that the GRA was the appropriate venue to consider any amendments to the storm rider.

AI summary The NSUARB noted in a prior decision that the GRA is the appropriate venue for considering amendments to the storm rider, referencing NS Power's last annual storm restoration cost report.

Residual Comments - 1. NS Power submitted that the express mention of pensions, executive compensation, and expenses shared with affiliates was of little or no relevance in the proceeding and should not be expressly set out as a focus in t...

AI summary NS Power argues that pensions, executive compensation, and shared affiliate expenses are irrelevant to the proceeding, while the Board disagrees but will remove explicit references. NS Power claims the NSIESO transition costs are irrelevant, focusing instead on a deferral mechanism. The Board asserts the transition's cost impact is relevant. NS Power contends section 6(2) of the Energy and Regulatory Boards Act does not require addressing all factors, but the Board insists these factors must be considered.

Request IR-2: - Please provide for each account a copy of all Iowa curves, including square curves, studied - against the plotted retirement data and the recommended curve for each account as well as the - calculated residual measure or co...

AI summary Request IR-2 seeks detailed data on Iowa curves, square curves, and retirement data for each account, including recommended curves, residual measures, and conformance indices calculated via least squares solutions to assess differences between stub and Iowa curves.

Request IR-9: - Please confirm that the retirement data relied upon by Gannett Fleming in its study includes - simulated survivor data used to determine aged retirements. If not confirmed, please explain. If - confirmed, please provide cop...

AI summary Request IR-9 seeks confirmation whether Gannett Fleming's retirement data analysis includes simulated survivor data for aged retirements. It also requests copies of Iowa curves studied against actual retirement data, along with residual measures or conformance indices for each curve.

Question: - (a) Please provide all source data and workpapers (including all assumptions made regarding the data point estimates) used to come to the conclusion in the statement above regarding the deterioration of NS Power's metrics below...

AI summary The request asks for source data, workpapers, and assumptions related to NSP's financial metrics deterioration below 10%, as well as specific S&P and DBRS metrics from Figures 10-2 and 10-3. It also seeks additional metrics for 2017-2027 with supporting data.

Request IR-1: - Reference: N-3 page 36 - In reference to figure 7-1 in direct evidence N-3, page 36, please provide a schedule of total - OM&G by nature for 2024 actual, 2025 forecast and 2026 and 2027 proposed for the entire - Company (no...

AI summary Request IR-1 seeks a schedule of total OM&G (Operations, Maintenance, and General) expenses by nature for 2024 actual, 2025 forecast, and 2026–2027 proposed figures, reconciling to figure 7-1 in direct evidence N-3, page 36. The request applies to the entire company, not by division or function.

Request IR-2: - Reference: General - Please explain assumptions used in forecasting labour costs for both union and non union - employees. Provide a copy of the internal labour forecast study produced which forecasts labour - in 2026 to 20...

AI summary Request IR-2 seeks explanations of assumptions in forecasting labour costs for union and non-union employees, including wage increases and full-time equivalent (FTE) forecasting, and requests a copy of the internal labour forecast study for 2026-2027.

Request IR-3: - Reference: N-3 page 35 - As noted on page 35, lines 20 to 21, Nova Scotia Power states "Multi-year forecasts of operating - costs are inherently uncertain. Many factors can affect NS Power's operating costs from year to - y...

AI summary Nova Scotia Power (NS Power) is asked to explain methods used in their multi-year operating cost forecasts to address uncertainties, as noted in Reference N-3, page 35, lines 20-21. The request highlights the inherent uncertainty in forecasting and seeks clarification on mitigation strategies.

Request IR-4: - Reference: RB-02 RB-16 Attachment 2 - The Company's actuary estimate of pension costs was provided by letter dated February 14, - 2025. Please provide the supporting documentation of the Company's actuary estimate of Benefi...

AI summary Request IR-4 seeks supporting documentation for the Company's actuary estimate of pension benefit costs for 2026–2030, referencing a February 14, 2025, letter and attaching RB-02/RB-16 Attachment 2.

Request IR-5: - Reference: N-6 Page 6 - Please provide the supporting evidence for the inflation rate of 3.25% for labour and 2% for non- - labour rates in 2026, and 3% for labour in 2027 and 2% for non-labour in 2027.

AI summary The text requests supporting evidence for specified inflation rates (3.25% for labour, 2% for non-labour in 2026; 3% for labour, 2% for non-labour in 2027).

Request IR-8: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 5-6 of 58 - Per N-6, (Appendix 7C), page 5-6 of 58, we understand that 2026 forecast is higher than 2024 - actual results for "General Counsel, Corporate Secreta...

AI summary Request IR-8 seeks clarification on a 2026 forecast increase for 'General Counsel, Corporate Secretary, and Insurance' due to a new corporate director. The request asks for the director's identity, annual compensation, and employment start date.

Request IR-9: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 5-6 of 58 - Per N-6, (Appendix 7C), page 5-6 of 58, we understand that for "General Counsel, Corporate - Secretary, and Insurance", insurance has fluctuated due...

AI summary The request seeks a summary of recent insurance premiums for 'General Counsel, Corporate Secretary, and Insurance,' noting fluctuations due to rising premiums. The document references N-6, Appendix 7C, page 5-6 of 58, and asks for the year these premiums apply.

Request IR-10: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 5-6 of 58 - Per N-6, (Appendix 7C), page 5-6 of 58, we understand that 2026 forecast is higher than 2025 - budget for "General Counsel, Corporate Secretary, and...

AI summary The request seeks justification for increased labor costs in the 'General Counsel, Corporate Secretary, and Insurance' department for 2026 compared to 2025, citing staff complement changes and salary escalations. Evidence supporting these changes and the rationale for salary increases is requested.

Request IR-11: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 9-10 of 58 - Per N-6, (Appendix 7C), page 9-10 of 58, we understand that 2026 forecast is higher than 2024 - compliance restated and 2024 actuals for "communica...

AI summary The request seeks evidence supporting the 2026 forecast for 'communications and public affairs' being higher than 2024 actuals due to staff complement changes and salary escalations.

Request IR-13: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 9-10 of 58 - Per N-6, (Appendix 7C), page 9-10 of 58, we understand that "advertising" is lower in 2024 - actuals and 2024 compliance restated due to lower spen...

AI summary Request IR-13 seeks clarification on reduced advertising spending in 2024, noting restated actuals and compliance due to lower spending. The request asks for specific reasons behind the spending reduction.

Request IR-14: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 11-12 of 58 - Per N-6, (Appendix 7C), page 11-12 of 58, we understand that 2026 forecast is higher than 2024 - compliance restated and 2024 actuals for "human r...

AI summary The request seeks evidence supporting increased staffing levels and salary escalations in human resources, which are cited as reasons for a higher 2026 forecast compared to 2024 compliance restated figures.

Request IR-15: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 11-12 of 58 - Per N-6, (Appendix 7C), page 11-12 of 58, we understand that 2026 forecast is higher than 2024 - compliance restated and 2024 actuals for "human r...

AI summary The request highlights a higher 2026 forecast compared to 2024, noting increased consulting costs under 'human resources' due to Health and Wellness Safety engagements. It seeks a detailed breakdown of these planned engagements and their associated costs.

Request IR-19: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 17-18 of 58 - Per N-6, (Appendix 7C), page 17-18 of 58, we understand that labour has increased significantly - over the period from 2024 compliance restated to...

AI summary The text requests a detailed breakdown of labor costs and positions related to IT initiatives, citing increased staffing for cybersecurity, technology upgrades, new customer services, new technology services, and salary increases from 2024 to 2026/2027.

Request IR-20: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 17-18 of 58 - Per N-6, (Appendix 7C), page 17-18 of 58, we understand that consulting expense has increased - in 2026 forecast compared to 2024 compliance resta...

AI summary Request IR-20 seeks clarification on increased consulting expenses in 2026, attributing the rise to cybersecurity support, IT tool enhancements (Tableau/Power BI), and inflation. The request asks for a breakdown, whether the increase is temporary or permanent, and the rationale.

Request IR-22: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 19-20 of 58 - Per N-6, (Appendix 7C), page 19-20 of 58, we understand that no expenses were included in - "ECEI" in 2024 compliance restated. What is the reason...

AI summary The text inquires why no expenses were included in the 2024 compliance restated under ECEI, referencing N-6 and Appendix 7C. It questions the rationale for excluding expenses in the compliance restated.

Request IR-23: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 15-16 of 58 - Per N-6, (Appendix 7C), page 15-16 of 58, we understand that labour expense has increased in - 2026 forecast compared to 2024 compliance restated...

AI summary The text references an increase in labor expenses for 'regulatory affairs' in the 2026 forecast compared to 2024 compliance restated and actuals, attributed to salary escalations and position vacancies in 2024. The request seeks evidence supporting these escalations and vacancies.

Request IR-24: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 15-16 of 58 - Per N-6, (Appendix 7C), page 15-16 of 58, we understand that consulting expense has increased - in 2026 forecast compared to 2024 compliance resta...

AI summary The document references Request IR-24, seeking a breakdown of increased consulting expenses in the 2026 forecast compared to 2024, attributed to greater regulatory engagements. The request cites N-6 2026-2027 GRA Direct Evidence Appendix 7C, pages 15-16 of 58.

Request IR-25: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 21-22 of 58 - Per N-6, (Appendix 7C), page 21-22 of 58, we understand that contracts expense has decreased - in 2026 forecast compared to 2024 compliance restat...

AI summary The request seeks a breakdown of decreased contracts expense for 'head office' in 2026, attributed to reduced OM&G ash hauling costs due to NS Power's proposal to transfer these expenses to Fuel and Purchased Power in the GRA.

Request IR-27: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 23-24 of 58 - Per N-6, (Appendix 7C), page 23-24 of 58, we understand that rental and maintenance of - equipment expenses have increased from 2024 compliance re...

AI summary Request IR-27 seeks clarification on increased rental and maintenance expenses for thermal plants from 2024 to 2026, attributed to changes in operating requirements, as outlined in Appendix 7C of N-6. The request asks for detailed explanations and associated cost breakdowns.

Request IR-28: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 25-26 of 58 - Per N-6, (Appendix 7C), page 25-26 of 58, we understand that labour expense has increased - from 2024 compliance restated to 2026 forecast for "Tu...

AI summary Request IR-28 seeks explanations for increased labour expenses at Tufts Cove and combustion turbines, citing factors such as higher engineering, operations and maintenance (OM&G) headcount due to extended running hours, shutdowns, capital programs, and salary escalation. The request references N-6 2026-2027 GRA Direct Evidence Appendix 7C, pages 25-26.

Request IR-29: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 25-26 of 58 - Per N-6, (Appendix 7C), page 25-26 of 58, we understand that materials, water and chemicals - expenses have increased from 2024 compliance restate...

AI summary The request seeks explanations for increased costs of materials, water, and chemicals at Tufts Cove and combustion turbines, citing higher prices and usage. It references N-6, Appendix 7C, pages 25-26, and asks for justification for these costs.

Request IR-31: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 33-34 of 58 - Per N-6, (Appendix 7C), page 33-34 of 58, we understand that labour expenses have increased - from 2024 compliance restated to 2026 forecast for "...

AI summary The text requests clarification on increased labor expenses for 'Enterprise asset management & project implementation' from 2024 to 2026, citing additional personnel due to EIT program expansion for risk mitigation, succession planning, and salary escalation. It asks for details on personnel needs and associated costs.

Request IR-33: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 33-34 of 58 - Per N-6, (Appendix 7C), page 33-34 of 58, we understand that consulting expense has - decreased from 2024 compliance restated to 2026 forecast for...

AI summary The text requests an explanation for the decrease in consulting expenses for 'Enterprise asset management & project implementation' from 2024 to 2026, attributed to transferring dam safety review responsibilities to the Hydro department. The request seeks background on the rationale behind this transfer.

Request IR-34: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 37-38 of 58 - Per N-6, (Appendix 7C), page 37-38 of 58, we understand that labour expense and contract - expense has increased from 2024 compliance restated to...

AI summary Request IR-34 seeks details on increased labour and contract costs for regional operations from 2024 to 2026, citing factors like customer growth and salary escalation, and asks about the forecasting methodology used by NSPI.

Request IR-36: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 39-40 of 58 - Per N-6, (Appendix 7C), page 39-40 of 58, we understand that labour expense has increased - from 2024 compliance restated to 2026 forecast for "co...

AI summary The text requests detailed information about increased labor expenses in the control center, attributed to additional employees for operational needs, referencing N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 39-40 of 58. It seeks clarification on the required employees and associated costs.

Request IR-37: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 39-40 of 58 - Per N-6, (Appendix 7C), page 39-40 of 58, we understand that consulting expense has increased - from 2024 compliance restated to 2026 forecast for...

AI summary The text references N-6, Appendix 7C, pages 39-40, requesting details on increased consulting expenses for the control center from 2024 to 2026, attributed to engineering, operator training, and interconnection studies. The request seeks additional cost breakdowns for these engagements.

Request IR-38: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 41-42 of 58 - Per N-6, (Appendix 7C), page 41-42 of 58, we understand that labour expense has increased - from 2024 compliance restated to 2026 forecast for "en...

AI summary The request seeks evidence supporting increased labor expenses for energy delivery services from 2024 to 2026, citing staffing increases and salary escalations. The requester asks for documentation validating these changes.

Request IR-39: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 41-42 of 58 - Per N-6, (Appendix 7C), page 41-42 of 58, we understand that travel expense has increased - from 2024 compliance restated to 2026 forecast for "en...

AI summary The document requests an explanation for increased travel expenses under energy delivery services from 2024 to 2026, attributing the change to operational requirements. It references N-6 Appendix 7C pages 41-42.

Request IR-40: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 41-42 of 58 - Per N-6, (Appendix 7C), page 41-42 of 58, we understand that internet communications expense - has increased from 2024 compliance restated and 202...

AI summary The document requests additional details on the rationale and estimated costs for increased internet communications expenses in energy delivery services, attributed to the rollout of satellite internet across Nova Scotia from 2024 to 2026.

Request IR-41: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 43-44 of 58 - Per N-6, (Appendix 7C), page 43-44 of 58, we understand that labour expense has increased - from 2024 compliance restated to 2026 forecast for "re...

AI summary The document requests detailed information on the creation of NSPI's reliability implementation department and expansion of the Standards & Community Engagement team, citing increased labor expenses due to centralization of resources for system reliability. It asks for roles and salaries related to these changes.

Request IR-43: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 45-46 of 58 - Per N-6, (Appendix 7C), page 45-46 of 58, we understand that labour expense has increased - from 2024 compliance restated and 2024 actual to 2026...

AI summary The document requests explanations and cost breakdowns for increased labor expenses in 'transmission and distribution contractor management' from 2024 to 2026, citing factors like staffing increases, vacancies, higher utility demand, reorganization, and salary escalations. The request references Appendix 7C of the 2026-2027 GRA Direct Evidence.

Request IR-44: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 45-46 of 58 - Per N-6, (Appendix 7C), page 45-46 of 58, we understand that contracts expense has increased - from 2024 compliance restated and 2025 budget to 20...

AI summary The document requests a breakdown of increased contracts expenses for transmission and distribution contractor management from 2024 to 2026, citing factors like maintenance on aging fleet vehicles, utility costs, and inflation. NSPI is asked to provide supporting documentation for these increases.

Request IR-46: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 49-50 of 58 - Per N-6, (Appendix 7C), page 49-50 of 58, we understand that labour expense has increased - from 2024 actual to 2026 forecast for "administration"...

AI summary Request IR-46 seeks clarification on increased labor expenses for administration from 2024 to 2026, citing five new hires and salary escalations tied to Energy Delivery growth. The request asks for rationale behind these workforce and compensation changes.

Request IR-48: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 51-52 of 58 - Per N-6, (Appendix 7C), page 51-52 of 58, we understand that labour expense has increased - from 2024 compliance restated, 2024 actual, and 2025 b...

AI summary The text requests evidence of customer growth and rationale for salary escalation in customer service labor expenses, as part of the 2026-2027 GRA Direct Evidence Appendix 7C.

Request IR-50: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 51-52 of 58 - Per N-6, (Appendix 7C), page 51-52 of 58, we understand that write-offs have decreased from - 2024 compliance restated and 2024 actual to 2026 for...

AI summary The document requests supporting calculations for decreased write-offs in 'customer service' from 2024 to 2026 forecasts, noting changes in bad debt expense tied to historical activity and revenue forecasts. The analysis focuses on financial forecasting and bad debt expense adjustments.

Request IR-51: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 53-54 of 58 - Per N-6, (Appendix 7C), page 53-54 of 58, we understand that labour has increased from 2024 - compliance restated and 2024 actual to 2026 forecast...

AI summary The document requests clarification on increased labor costs for grid modernization and customer integration from 2024 to 2026, citing additional resources in the Smart Meter Operations Center, data analytics, customer experience, Telecom, WAM support, and salary escalations. It asks for the number of additional resources, their salaries, and details on expanded customer-focused initiatives.

Request IR-54: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 57-58 of 58 - Per N-6, (Appendix 7C), page 57-58 of 58, we understand that labour has decreased from 2024 - compliance restated, 2024 actual and 2025 budget to...

AI summary Request IR-54 seeks clarification on labor cost reductions in corporate adjustments from 2024 to 2026, attributing the decrease to a vacancy adjustment, payroll accrual timing, and improved 2024 corporate scorecard performance. The requester asks for detailed cost breakdowns related to these factors.

Request IR-56: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 57-58 of 58 - Per N-6, (Appendix 7C), page 57-58 of 58, we understand that vehicle allocated costs has - increased from 2024 compliance restated to 2026 forecas...

AI summary The document requests a cost breakdown for increased capital investments in transmission and distribution assets, attributing the increase to higher capital spending. It also seeks an explanation for the decrease in vehicle costs from 2024 actual and 2025 budget to 2026 forecast, linked to the profile of capital investment.

Request IR-57: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 57-58 of 58 - Per N-6, (Appendix 7C), page 57-58 of 58, we understand that admin overheads have increased - from 2024 compliance restated and 2024 actuals to 20...

AI summary The document requests clarification from Nova Scotia Power Inc. (NSPI) on how changes in administrative overheads—increasing from 2024 compliance/restated actuals to 2026 forecasts and decreasing from 2025 budgets to 2026 forecasts for 'corporate adjustments'—are linked to the profile of capital investments.

Request IR-58: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7D Page 1 of 1 - Per N-6, (Appendix 7D), page 1 of 1, we understand that pension expense has decreased from - 2024 compliance restated to 2026 forecast, and increased f...

AI summary The document requests explanations and cost breakdowns for pension expense fluctuations from 2024 to 2027, as outlined in the N-6 2026-2027 GRA Direct Evidence Appendix 7D. Pension expenses decreased from 2024 to 2026 but increased in subsequent years.

Request IR-85: - Reference: RB-02-16- Attachment 1 - Please provide explanation for the increase in materials and supplies allowance from 2024 - Compliance Rates to 2026 Proposed Rates.

AI summary Request IR-85 seeks an explanation for the proposed increase in materials and supplies allowance from 2024 to 2026 under Compliance Rates. The request is tied to regulatory proceedings involving rate adjustments and compliance frameworks.

Request IR-93: - Reference: N-3 - Per N-3, section 1.1, page 8, lines 22-26, it is stated that: - "Hundreds of detailed questions and requests for additional information from Customer - Representatives were responded to by NS Power and, th...

AI summary The document requests details on consensus outcomes reached by Customer Representatives and NSPI regarding OM&G expenses, rate base, working capital, regulatory amortizations, interest, and taxes under the GRA. It references N-3 and highlights collaboration during negotiations.

Request IR-38: - Reference: Exhibit N-3 GRA Direct Evidence Appendix 5A - On page 34 of Appendix 5A, the application states that NSPML's forecast assessments for the - Maritime Link against NS Power are $200.5 million in 2026 and $203.9 mi...

AI summary Request IR-38 asks NSP to explain the increase in Operating & Maintenance costs from $21.7 million in 2026 to $29.0 million in 2027, referencing Exhibit N-3 GRA Direct Evidence Appendix 5A and mentioning the Maritime Link and Federal Loan Guarantee.

OPERATING COSTS

AI summary The section 'OPERATING COSTS' is part of a Nova Scotia regulatory proceeding. No detailed information or arguments are provided in the given text.

Request IR-39: - a) Please provide the actual Bad debt expense and Write-offs of accounts receivable for 2019 to 2024 inclusive, as well as the estimated amounts 2025 to 2027 inclusive. - b) If available, please provide these amounts by cu...

AI summary The request seeks detailed financial data on bad debt expenses and write-offs from 2019 to 2027, including customer class breakdowns, to assess NS Power's financial management and risk exposure.

Request IR-41: - Please confirm, or clarify otherwise, that the total cost reduction in operating costs due to the - consensus is $9 million, made up of $5 million allocated to administration (Appendix 7C, p.50), $2 million allocated to cu...

AI summary The text requests confirmation of a $9 million operating cost reduction, allocated to administration ($5M), customer service ($2M), and corporate adjustments ($2M), citing specific appendices.

Request IR-45: - Reference: Exhibit N-3 GRA Direct Evidence, Section 7 Operating Costs - Page 36 of the application refers to wage increases for both union and non-union employees. - a) Please describe the current status of NS Power's coll...

AI summary Request IR-45 seeks details on NS Power's union and non-union wage increases for 2026-2027, the status of collective agreements, and pension expenses from 2015-2024 with a 2025 forecast. It also asks if non-union workers face similar wage increases.

Request IR-46: - a) Please identify the amount budgeted in proposed rates for OM&G costs for vegetation management in 2026 and 2027. - b) Please provide a table showing the amount of OM&G funds spent on vegetation management for each year...

AI summary Request IR-46 seeks information on budgeted and historical spending for vegetation management OM&G costs (2026-2027 and 2019-2024), with a requirement to separate distribution and transmission funds, and similar data on capital funds for routines and work orders.

- below) to include actuals and percentage variance from forecast to actual for the period: 2022 2023 2024 2025 2026 Operating costs ($ million) 283.6 288.8 297.4 316.2 321.6 Increase ($ million) 5.2 8.6 18.7 5.5 Percent Change 1.8 3.0 6.3...

AI summary The table presents operating costs and their increases from 2022 to 2026, highlighting a steady rise in costs over the period. The increase in operating costs is accompanied by a percentage change, indicating the rate of growth for each year.

Request IR-50: - Reference: Exhibit N-3 GRA Direct Evidence, Section 7.3 Five-Year Operating Cost Forecast - On page 36, NS Power stated that "The consensus approach to this GRA results in a greater - year-over-year increase from 2027 to 2...

AI summary NS Power's GRA includes a Five-Year Operating Cost Forecast with significant increases from 2027 to 2028. The request seeks explanations for the forecast's variance, itemization of cost components, and the 2029-2030 cost reduction.

Request IR-51: - Reference: Exhibit N-6, Appendix 7A - Please explain the basis for the labour inflation rates noted on page 6 in Appendix 7A.

AI summary The request (IR-51) seeks an explanation for the labour inflation rates detailed in Exhibit N-6, Appendix 7A, page 6. The inquiry focuses on the rationale behind the rates provided in the referenced document.

Request IR-52: - Reference: Exhibit N-6, Appendix 7A - Please confirm, or explain otherwise, that the primary driver of the primary drivers on increased - actual operating expenses noted on page 7 in Appendix 7A was the delay of the Nova S...

AI summary Request IR-52 seeks clarification on whether the delay of the Nova Scotia Block was the primary driver of increased actual operating expenses noted in Exhibit N-6, Appendix 7A, page 7. The inquiry focuses on identifying the cause of expense increases linked to the project delay.

Request IR-55: - Reference: Exhibit N-6 Appendix 7A, Figure 7A-10 2020-2024 Storm Restoration Operating - Expenses - a) Please explain why the approved deferred recovery of Post Tropical Storm Fiona costs - makes it inappropriate to includ...

AI summary The request challenges the exclusion of deferred recovery costs from storm restoration expenses, arguing that including these costs would provide a more accurate picture of total storm-related expenses for the period covered in Figure 7A. The request also asks for a revised version of the figure incorporating these costs.

Request IR-58: - Reference: Exhibit N-6, Appendix 7A, page 7 of 37 - NS Power notes a significant increase in the utilization of thermal plants and combustion turbines, - which was 4,525 GWh estimated capacity and 6,148 GWh used capacity,...

AI summary NS Power notes increased utilization of thermal plants and combustion turbines, leading to higher operating expenses in 2024. The request asks for explanations, mitigation plans, and future expense projections.

Request IR-59: - Reference: Exhibit N-6, Appendix 7A, Figure 7A-10, page 22 of 37 - NS Power provided the storm restoration operating expenses for years 2020 to 2024. - a) The table indicates a much lower operating expense in 2021 and 2024...

AI summary Request IR-59 seeks explanations from NS Power for lower storm restoration operating expenses in 2021 and 2024, requests updated storm level data, and inquires about grid resilience research. NS Power cited measures like improved insulator designs in its Storm Outage Analysis Report (M12071).

Request IR-60: - Reference: Exhibit N-6(ii), Corporate Office of Secretary and General Counsel - With respect to the reasons given for the following significant projected increases for 2026 over 2024 actuals: - a) Consulting and Ext Legal...

AI summary The document requests explanations for projected cost increases in consulting, legal audit, and insurance, including delays in CRA litigation, cost breakdowns, and a cost/benefit analysis. It references NS Power's Tax Court of Canada appeal and Board Order M10431.

Request IR-61: Reference: Exhibit N-6(ii), Communications and Public Affairs - a) The reason given for the increase from 2024 actuals to forecast 2026 expense in labour expense under Communications and Public Affairs is the same as many ot...

AI summary Request IR-61 questions significant increases in labour (48% from 2024 to 2026) and consulting expenses (400% increase) under Communications and Public Affairs, seeking explanations for disparities compared to other categories. It also requests details on advertising initiatives and confirmation that increases are unrelated to a cybersecurity breach.

Request IR-62: - Reference: Exhibit N-6(ii), Corporate Human Resources - a) The reason given for the increase from 2024 compliance restated to forecast 2026 expense in labour under Human Resources is due to staffing level increase and sala...

AI summary Request IR-62 questions NS Power's 58% HR expense increase, 47% consulting rise, and talent management costs, citing ScottMadden Report findings that NS Power's HR costs exceed peers. Asks for justification of safety programs, internal vs. external consulting, and alignment with industry benchmarks.

Request IR-63: - Reference: Exhibit N-6(ii), Regulatory Affairs - The consulting expense forecast for 2026 is 57% higher than 2024 compliance and slightly below 2024 actuals. Board staff assumes that much of the work leading into the GRA w...

AI summary The consulting expense forecast for 2026 is 57% higher than 2024 compliance but slightly below 2024 actuals. Board staff assumes significant GRA-related work (e.g., depreciation, line loss studies) was completed in 2024. The request asks why expenses remain stable despite expecting greater regulatory work volume and scope in 2026-2027.

Request IR-64: Reference: Exhibit N-3 Direct Evidence, Exhibit N-6(ii), Information Technology - Pages 8-9 in the direct evidence notes that the test year forecasts were completed before the - cybersecurity incident occurred, and that the...

AI summary The document requests clarification on a 1000% increase in IT consulting expenses linked to cybersecurity efforts and software upgrades (Tableau, PowerBI) following a cybersecurity incident. It questions whether the spending mitigated incident damage, if expenses are ongoing, and seeks definitions and matter numbers related to Tableau/PowerBI.

Request IR-65: - Reference: Exhibit N-6(ii), Tufts Cove and Combustion Turbines - The explanation for the increase in materials expense is that it is due to increased pricing and increased running hours. - a) Why is there such a significan...

AI summary The document addresses a 75% increase in materials expense forecast for 2026 compared to 2024 compliance restated, questioning the rationale and the projected increase in running hours from 2023 to 2026.

Request IR-66: - Reference: Exhibit N-6(ii), Control Center - There is a 42% forecasted increase in labour expense for 2026 over 2024 actuals in this category - (as well as a significant projected increase over 2025 budget) despite a reduc...

AI summary The document highlights a 42% increase in labor expenses for 2026 at Nova Scotia Power's Control Center, despite a reduction in employees due to a transfer to NSIESO. The request seeks details on the rationale for hiring additional staff for operational needs and the forecasted FTE numbers from 2024 to 2028.

Request IR-67: - Reference: Exhibit N-6(ii), Transmission & Distribution Contractor Management - There was a 133% increase in contracts expense in 2024 versus the forecast amount in the 2024 - compliance. The explanation given for the high...

AI summary Nova Scotia Power (NSP) reported a 133% increase in contracts expense for 2024 compared to the compliance forecast, attributing the $7.6 million rise to higher maintenance costs for aging fleet vehicles, increased utility services, and inflation. The request seeks further details on these expenses.

Request IR-70: - Reference: Exhibit N-6(ii), Corporate Adjustments - a) Please explain what the vacancy adjustment is (under labour), and how it was treated previously.

AI summary The request seeks clarification on the vacancy adjustment under labour and its prior treatment, referencing Exhibit N-6(ii) under Corporate Adjustments.

Request IR-73: - Reference: Exhibit N-14, OP-03 Attachment 1, ScottMadden Report - On page 17 it is noted that NS Power's total OM&G increased 23% in nominal terms from 2019 - to 2023 while the peer median decreased 9% in nominal terms ove...

AI summary NS Power's operational and maintenance (OM&G) costs increased significantly compared to peers between 2019 and 2023, with total OM&G up 23%, transmission OM&G per retail MWh up 90%, and distribution OM&G up 32%. The request seeks the nominal changes after excluding level 3 and 4 storm costs.

Request IR-77: - Reference: Exhibit N-14, Op-03 Attachment 1, ScottMadden Report - On page 64 it is noted that NS Power's HR cost per FTE is 21% higher than the group median - and has increased 41% in nominal terms between 2019 and 2023. U...

AI summary NS Power's HR cost per FTE is 21% above the median and 41% higher since 2019, attributed to a skilled labor shortage in Canada. Questions are raised about the median cost, international recruitment, cost disparities with peers, and scholarship programs.

Request IR-78: - Reference: Exhibit N-3, GRA Direct Evidence - On page 35, NS Power states "Information Technology costs per business entity full-time - equivalent employee is significantly below the utility industry median". a) Please exp...

AI summary NS Power's assertion that IT costs per FTE are below the industry median is questioned in the context of a recent cybersecurity incident, as part of Exhibit N-3 in the GRA Direct Evidence. The significance of this statement is under scrutiny.

Request IR-95: - On page 93 of the Board Decision [2022 NSUARB 18] in M10206 (NSPML) dated February 9, 2022, the Board advised that it would not permit recovery by NS Power of operating costs of Lingan 2 beyond August 15, 2022, without fur...

AI summary The document discusses the Board's decision regarding the recovery of operating costs for the Lingan 2 facility by NS Power, noting that approval was granted for expenses until the end of 2024, and that further approval is required for expenses beyond that date. The Board is being asked to confirm if 2025 and test year costs are included in the current application.

Request IR-99: - Reference: Exhibit N-17, SR-04 Attachment 1, Lead-Lag Study - On pg. 19 of the lead-lag study it is noted that the significant increase in working capital related - to taxes is due to customers receiving the benefit of an...

AI summary The document requests clarification on NS Power's 2026 tax installments related to an Investment Tax Credit (ITC) refund in 2027 and the rationale for increased working capital tied to a clean energy storage project's ITC benefits. The inquiry highlights timing discrepancies between customer ITC benefits and company tax obligations.

Request IR-150: - Reference: Exhibit N-8, Appendix 13C - NS Power stated there are approximately 18,140 opt-out customers who continue to have their meters read manually at the meter every other month (i.e., six readings per meter). It als...

AI summary NS Power's proposal to reduce manual meter readings from six to two per year for opt-out customers would lower annual reads to 33,333, with estimated costs of $22/year ($1.83/month). However, the proposed $3.81/month fee is over double the actual cost, raising questions about where the additional costs are incurred.

Request IR-11: - N-14(c) 2026-2027 GRA OP 01-15 PCON.pdf, specifically OP-04 Attachment 1. - a) In Excel tabular format, please provide the sustaining capital forecast, by year, for each of the assets listed in OP-04 Attachment 1. Please p...

AI summary Request IR-11 seeks detailed sustaining capital forecasts and expenditures for assets in OP-04 Attachment 1, requiring data by generating unit for 2026-2027 and since 2017, as well as forecasts from NS Power's most recent Integrated Resource Plan base case through 2027.

Request IR-19: - 2026-2027 GRA Appendix 1-6 PCON, Appendix 6B (Redline). - a) Please explain the edit to move the BUTU reference at pages 7-8. - b) Please explain the revisions to item 4 on pages 8-10. - c) Why have the "Ash Hauling costs"...

AI summary Request IR-19 seeks explanations for document edits (BUTU reference relocation, item 4 revisions), additions of Ash Hauling and Tufts Cove costs to the POA, and clarification on NSP-owned variable production costs, including third-party production bonuses/penalties. Focus areas include cost recoverability, fuel adjustments, and production cost definitions.

t that the existence of any form of securitization agreement will influence the Board's decision, the Board should be aware that the Province has not been convinced that this is the best path to lower rates and has not agreed to make any r...

AI summary The Province of Nova Scotia opposes securitization agreements, citing lack of regulatory support and asset valuation concerns. It challenges NS Power's 24% FTE increase, urging a savings review under Section 34(A) of the Act. The Department asserts Section 64AB of the Act governs interest on deferred liabilities, opposing ratepayer burden from inflated returns.

No justification for increased labour costs - 97. While many other organizations are searching for ways to do the same with less, NS Power continues to grow headcount with ratepayers asked to incur the cost. NS Power is proposing to increa...

AI summary The Department argues that NS Power has not justified a 24% increase in FTEs by 2026, citing insufficient evidence for higher HR costs (21% above industry median) and ratepayer burden. It recommends a Savings Review under Section 34A of the Act to address inefficiencies.

Summary - 124. In summary, the Department of Energy respectfully requests as follows: - a. That the Board reject the requested rate changes. - b. That NS Power's ROE be set at 7.6%. - c. That the Board take steps to ensure that NS Power's...

AI summary The Department of Energy requests the Board to reject NS Power's rate changes, set ROE at 7.6%, write down coal assets, deny Lingan 2 investment, avoid securitization, reject labour cost increases, maintain deferred liability calculations, address cyber-attack costs, and delay rate hikes until ratepayer liability is confirmed. It also urges mitigation of ratepayer impacts.

3) Key Terms Achieved During the negotiations, NSPI agreed to reductions in operating expenses for 2026 and 2027, as outlined in Schedule "B" of the Consensus Agreement and those reduced amounts were incorporated into the filed Application...

AI summary NSPI agreed to reduce operating expenses for 2026 and 2027, including a $9 million reduction in OM&G and an additional $1 million in GRA deferral amortization expenses, though specific savings areas are not identified. The Industrial Group notes that the Consensus Agreement does not preclude future arguments about GRA deferral and amortization.

Exhibit N-40, Opening Statement of NS Power. N-32 Evidence – Cleary page 6 lines 4-5; N-37, Evidence - Synapse Evidence page 18, lines 1-3; N-35, Evidence - Bates White, page 14, lines 11-16. 1 was a consideration of the parties is evident...

AI summary NS Power outlines its OM&G expense forecasts for 2026 and 2027, citing a 18% share of its revenue requirement. It notes a $24 million increase over the 2024-2026 period, with a $5.7 million reduction due to a labour vacancy adjustment. A ScottMadden benchmarking study supports the reasonableness of its costs compared to peer utilities.

, page 33 line 13. Exhibit N-35, Evidence of Bates White Economic Consulting, December 2, 2025, page 36, line 3. Transcript, January 9, 2026, PDF page 59/300, lines 1-12.

AI summary NS Power forecasts OM&G expenses of $351.8M (2026) and $357.9M (2027), representing 18% of revenue. This reflects a $24M increase (3.5% CAGR) from 2024, driven by factors outlined in Appendix 7A. NS Power cites a robust forecasting process, including a labour vacancy adjustment reducing revenue requirements by $5.7M annually, and a ScottMadden benchmarking study showing costs align with peer utilities.

1 letter (Appendix 8F of the GRA), a securitization approach would not come at a cost to the 2 Province and does not require the Province to backstop it. 3 Given the significant savings for customers that can be derived from securitization...

AI summary NS Power argues securitization does not cost the Province and can address regulatory issues, while the DOE questions NS Power's 2026 staff forecasts. Doane Grant Thornton supports NS Power's OM&G and labour cost forecasts as reasonable based on evidence, including the ScottMadden Benchmarking report and GRA Appendix 7A.

asked to maintain its current return on equity of 9.0% for ratemaking purposes, with an earnings band of 8.75% to 9.25%. This request was supported by the customer classes in the settlement agreement. [16] Dr. Cleary acknowledged in a rece...

AI summary NS Power requested maintaining a 9.0% return on equity (ROE) with an 8.75%-9.25% earnings band, supported by customer classes. Dr. Cleary argued a 7.6% ROE would harm funds from operations (FFO:Debt) and exacerbate NS Power's low credit rating (S&P bottom 10% of North American utilities). The Board rejected lowering ROE, citing public interest and alignment with Canadian utility equity return ranges.

3.3 Operating, Maintenance and General Costs

AI summary This section discusses Operating, Maintenance and General (OM&G) costs, a critical component in utility regulatory proceedings. It likely addresses cost structures, recovery mechanisms, and compliance with Nova Scotia's energy regulations, involving entities like Nova Scotia Power Inc. and the Nova Scotia Utility and Review Board.

3.3.1 Overall Costs [69] NS Power applied for an increase in its OM&G expenses in the test years. The OM&G expenses represent costs for operating and maintaining the utility's generation, transmission, and distribution facilities; deliveri...

AI summary NS Power has requested an increase in OM&G expenses from $297.4 million in 2024 to $351.8 million in 2026 and $357.9 million in 2027, citing reasons such as staffing increases and cost reductions agreed upon in a settlement. The increase is attributed to a forecasted net increase of 507 FTEs from 2024 to 2026.

1 1 Ι Ι 2024 Compliance 2026 GRA 2027 GRA 2026 GRA vs. 2024 Compliance % Change Explanation Executive Management 4 4 4 - 0 Legal and Corporate Secretary 12 11 11 (1) -8 Corporate Finance 33 33 33 - 0 Communications and Public Affairs 10 15...

AI summary The document presents a comparison of compliance and GRA figures for various departments and initiatives from 2024 to 2026, highlighting changes in costs and explanations for variations, such as increases in Communications and Public Affairs and Human Resources and Safety.

[76] NS Power noted that its current number of FTEs is 2,478 (as of the date of the IR response, November 5, 2025). It noted that the figures in the above table do not reflect the $9 million reduction in OM&G costs that the utility committ...

AI summary NS Power reported its current FTE count as 2,478 as of November 5, 2025, and explained that OM&G costs were reduced by $9 million due to a settlement agreement. A $5.7 million vacancy adjustment was also made in 2026. The increase in FTEs accounts for employee transfers to the IESO Nova Scotia during Phase 1 and Phase 2 of the transition.

3.3.1.1 Findings [90] NS Power's proposed increase in OM&G costs is significant. It represents a 20% increase in 2027 (18.3% in 2026) from the OM&G costs included in rates approved in the 2023-2024 GRA. The burden is on NS Power to show th...

AI summary NS Power's proposed 20% increase in OM&G costs for 2027 is partially justified by the Board, citing increased customer service demands, the 5-Year Reliability Plan, and grid-scale battery integration to meet RES requirements. The Board emphasizes NS Power must prove all costs are just and reasonable.

considered to exhibit low archaeological potential, archaeological monitoring could be recommended for the purpose of obtaining additional information and/or to confirm the results of the assessment. [171] In the case of hydro system parti...

AI summary The text discusses archaeological monitoring for hydro system decommissioning and the inclusion of contingency costs in decommissioning estimates. The Board references NS Power's 2018 Hydro Asset Study (HAS) to argue against removing contingency costs, citing Hatch's inclusion of contingencies as foreseeable expenses. Gannett Fleming's inclusion of archaeological reconnaissance costs in depreciation estimates is also noted.

ovide all stakeholders with transparency around transfers to or from the DDA in any given year and the Board may choose to review any of these transfers. [NS Power Reply to Closing Submissions, p. 5] [74] Based on this, it is possible that...

AI summary The Board emphasizes transparency in DDA transfers but rejects mandatory prudence reviews for costs transferred to the DDA, aligning with the Public Utilities Act. NS Power's expenditures are presumed prudent, and the Department failed to meet the threshold to rebut this presumption due to insufficient evidence and general allegations.

Cleary himself acknowledged that a steep drop in return on equity could create instability for regulated utilities from a credit rating standpoint. [Footnotes omitted] [OEB EB-2024-0063, pp. 38-39.] [557] As noted, NS Power's current credi...

AI summary The document discusses concerns that a 7.6% return on equity (ROE) for NS Power would jeopardize its credit rating, increase debt costs, and hinder meeting its FFO:Debt target. Evidence from Morrison Park highlights risks of missing financial goals and further downgrades. The Board rejects setting ROE below fair return standards, emphasizing the need to maintain investor confidence and avoid customer harm.

Classification of Generation Costs by System Load Factor NS Power's current approach to the classification of generation-related fixed costs such as depreciation and financing costs is to first classify environmental and fuel conversion-re...

AI summary NS Power currently classifies generation-related fixed costs by first allocating environmental and fuel conversion-related capital costs to energy, then using system load factor for other assets. They propose changing this method to classify all generation assets using the system load factor exclusively.

3.10.2.1 Findings [680] The Board has several concerns with NS Power's request to implement AMI opt-out fees at this time. Based on the responses provided during the hearing, it appears that meter reader costs associated with opt-out meter...

AI summary The Board rejects NS Power's request to implement AMI opt-out fees, citing insufficient cost delineation, questionable forecasts (e.g., 20x increase in customer care costs), and reluctance to adopt self-reporting options for opt-out customers. NS Power's dismissal of self-reporting is challenged, as existing practices (e.g., accepting photo readings) contradict claims of feasibility issues. The Board directs NS Power to address these concerns in a compliance filing.

4.3 Climate Change Adaptation Plan [702] The NSUARB, in its decision in NS Power's last general rate application, directed the utility to develop and file a climate change adaptation plan in consultation with interested parties: [339] The...

AI summary The NSUARB directed NS Power to develop a formal Climate Change Adaptation Plan by 2025, citing the need for consultative processes to ensure prudence in storm restoration costs and enhance capital planning. NS Power's current measures are deemed insufficiently formalized, with references to Hydro-Québec and guidance from Electricity Canada and the Electric Power Research Institute. Costs of plan development will be deferred for recovery through future rate applications.

4.4 Lingan Unit 2 and Trenton Unit 5 [712] In its general rate application, NS Power assumed sustaining capital expenses of $20,829,182 at Lingan 2 during the 2026-2027 test period, including $18,433,591 in 2026 and $2,395,591 in 2027 (Bat...

AI summary NS Power revised sustaining capital costs for Lingan Unit 2 from 2026 to 2027 and increased OM&G costs for Lingan 2 and Trenton Unit 5 due to extended operations and retirement adjustments. Bates White highlighted the 'substantial cost' relative to energy output and urged additional narrative support for the capital cost increase.

4.4.1 Findings [720] NS Power's firm capacity requirements in advance of 2030 continue to be the subject of review in several matters considered by the Board, including the Evergreen IRP Action Plan and Roadmap Update, the 10-Year System O...

AI summary The Board reviews NS Power's capacity requirements and approves OM&G costs for Lingan 2 and Trenton 5 due to reliability and compliance with NERC/NPCC. Sustaining capital costs for Lingan 2 are addressed in another proceeding, with the 2026 ACE Plan matter (M12619) noted as a future submittal.

rts of the settlement agreement. It has made several adjustments in this decision to reduce NS Power's proposed revenue requirement or adjust the allocation of costs among customer classes, including: - A further reduction of $8 million in...

AI summary The Board has made several adjustments to NS Power's revenue requirement and cost allocation, including reducing operating expenses, executive compensation, and denying the deferral of GRA OM&G costs. It also adjusted peak load carrying capability and denied the AMI opt-out fee.

6.0 COMPLIANCE FILING [736] NS Power is to file a compliance filing based on the Board's findings in this decision. The compliance filing is to include, among other things: - A further reduction of $8 million in Operating, Maintenance and...

AI summary NS Power is required to file a compliance filing based on the Board's findings, which includes cost reductions, adjustments to executive compensation, and tariff changes. The Board also approves the rates for 2026 and 2027, emphasizing the importance of timely filings to avoid confusion for customers.

Revenue Requirement / Cost of Service In its decision, the Board directed Nova Scotia Power to make further reductions in its Operating, Maintenance and General Expenses, beyond the reductions already included in the Settlement Agreement t...

AI summary The Board directed Nova Scotia Power to reduce Operating, Maintenance and General Expenses further, leading to a modest decline in proposed residential rate increases. Residential rates are expected to rise by 3.1% in 2026 and 3.9% in 2027.

Reply to Billing Directive Comments - As a starting point in providing these comments regarding the Board's Billing Directive, it is - important to reiterate that proration is not NS Power's "preferred" method. It is the only method - curr...

AI summary NS Power states that proration is the only feasible method for billing due to system limitations and high costs of alternatives. They argue that implementing a different method would require significant system changes and incur substantial capital and operational costs.

- HFO/Bunker Fuel Consumed - Financial Instruments used for Hedging (including gains, losses, fees and interest charges) - Quality Testing and Inventory Measurement Costs Effective: May 1, 2026 Page 13 of 33 - Standby Emergency Response Se...

AI summary The text outlines various costs associated with fuel consumption, transportation, compliance, and maintenance, including hedging financial instruments, emergency response services, and GHG emission compliance programs. These costs are relevant to operational and regulatory considerations in the energy sector.

1 revenue requirements. 6 to the next page, Jeff, page 10. I think it's page 10. 7 Keep scrolling down a bit. 8 BY MEMBER MURPHY: 9 I may have the page wrong, but Q. 10 when they compared the 2026 to '27 forecast for OM&G power 11 and prod...

AI summary The discussion revolves around Nova Scotia Power's operational and maintenance (OM&G) costs, particularly the increase in 2027 due to inflation and tunnel inspections at Wreck Cove. The inspection costs are not tied to a capital project but are part of ongoing risk monitoring.

NSP GENERAL/REGULATORY PANEL 849 Questions, (Deveau) 1 our obligation to serve customers within Nova Scotia, and 1 it and the reason I say that is because you can see that 2 there is when you look at the bottom there, if you look 3 at the...

AI summary The text discusses Nova Scotia Power's increased workforce and the associated costs, citing reasons such as increased customer requested work and reliability investments. It also mentions the continued operation of thermal generating units and the East Coast Energy Initiative Group, which were not anticipated in the last General Rate Application.

NSP GENERAL/REGULATORY PANEL 869 Questions, (Deveau) 1 expense. 2 And then we'd have some employees 3 there that are not directly working on the capital 4 projects; they're overseeing, they're managing the 5 employees, that type of thing,...

AI summary The text discusses the allocation of employee costs between capital projects and operating expenses, highlighting that some employees oversee and manage projects but are categorized under operating expenses. It also addresses the structure and forecasting of head counts for the ECEI division in 2024 and its inclusion in the General Rate Application.

INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS 1 for increased consulting fees, improvements to the 2 software for Tableau and Power BI; $3.8 million for new 3 technology services, increased labour. So I'm not going 4 to go into th...

AI summary The text discusses increased consulting fees, technology services, and labor costs, as well as cybersecurity breach costs not included in the application. It also mentions hiring meter readers for manual bill reading.

1 So are you able to provide all that in 2 increase of 507 employees as compared to the 2,115 that 3 was included in 2024 compliance. 4 And the response on the previous Q. 5 page, we don't have to turn to it, but it also notes that 6 the f...

AI summary The discussion focuses on employee numbers and operating expenses, specifically noting a 507 employee increase and a $9 million reduction in OM&G expense under a Settlement Agreement. The response highlights that the figures have not been adjusted for these changes, and mentions a labour vacancy in the Corporate Adjustments Department.

LIST OF EXHIBITS EXHIBIT NO. DESCRIPTION PAGE NO. 8 9 10 11 12 13 14 Review NSPI's operating, maintenance and general costs (OM&G), including labour, materials, contracts, pension costs, insurance, membership dues, subscription costs I'm g...

AI summary The text lists exhibits related to the review of NSPI's operating, maintenance, and general (OM&G) costs, including labour, materials, contracts, pension costs, insurance, and other expenses. There is also a brief exchange about audio issues during a hearing.

DOANE GRANT THORNTON PANEL 1105 Questions, (Deveau) 1 prepared to accept their assumption as fact. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 We have reviewed the operating expenses included in Nova Scotia Power's ['24] actuals, ['24] Complianc...

AI summary The text discusses a review of Nova Scotia Power's operating expenses, including actuals, compliance, budget, and forecast data. The reviewer confirms that the forecasts are reasonable based on their analysis and the benchmarking study conducted by ScottMadden.