Topic:"Operating Expenses" in M12600

1 Request IR-01: 2 3 4 5 6 For customers on Time-of-Use (TOU) or Net-Metering rates whose data was lost or estimated, please provide the specific methodology used to determine the "peak" versus "off-peak" consumption during the period of s...

AI summary The document outlines responses to three requests regarding billing methodologies during system unavailability, manual field interventions for demand resets, and customer-reported fraud incidents. It explains that TOU rates did not bill peak consumption during the period of system unavailability and that no costs were incurred for manual demand resets. No fraud or identity theft incidents have been reported since April 2025.

Highlights of the changes are summarized in the following table: For the Three months ended Year ended millions of dollars December 31 December 31 Net income - 2024 $ 71 $ 160 Increased operating revenues (refer to "Operating Revenues" sec...

AI summary The document summarizes net income and revenue changes for the periods ending December 31, 2024 and 2025. It highlights increased operating revenues, decreased fuel costs, and increased FAM and other deferrals. Notable factors include increased storm costs, a cybersecurity incident, and changes in income tax recovery.

Net cash provided by operating activities decreased $801 million to $118 million in 2025 compared to $919 million in 2024. Operating cash flow before change in working capital decreased $538 million primarily due to increased fuel for gene...

AI summary Net cash from operating activities dropped significantly in 2025 due to higher fuel costs and purchased power, partially offset by increased electric revenues and tax recoveries. Changes in working capital further reduced cash flows, mainly due to accounts receivable and fuel inventory adjustments.

As at December 31, 2025, contractual commitments for each of the next five years and in aggregate thereafter consisted of the following: millions of dollars 2026 2027 2028 2029 2030 Thereafter Total Purchased ~ower(1} $ 344 $ 360 $ 347 $ 3...

AI summary The document outlines contractual commitments as of December 31, 2025, including purchased power, long-term debt, interest payments, asset retirement obligations, transportation costs, and other financial commitments over the next five years and beyond.

Public Health Crisis Risk An outbreak of infectious disease, a pandemic or other public health threats, or a fear of any of the foregoing, could result in a Material Adverse Effect to NSPI. This could include causing operating, supply chai...

AI summary A public health crisis, such as an infectious disease outbreak or pandemic, could lead to a Material Adverse Effect on NSPI by causing operational delays, supply chain disruptions, labor shortages, and impacts on demand, revenue, and capital investments.

Q4 2025 compared to Q4 2024 Q4 2025 net income decreased by $49 million compared to Q4 2024. The decrease is due to decreased income tax recovery and increased OM&G expenses. Income tax recovery decreased due to the utilization of tax loss...

AI summary Q4 2025 net income decreased by $49 million compared to Q4 2024 due to decreased income tax recovery and increased OM&G expenses, primarily driven by higher storm costs and costs related to the Cybersecurity Incident.

Q3 2025 compared to Q3 2024 Q3 2025 net income decreased by $11 million compared to Q3 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 Q3 2025 net income decreased by $11 million compared to Q3 2024 due to increased OM&G expenses and depreciation and amortization from higher PP&E in service, driven by higher transmission, distribution, and power generation costs, partially offset by higher administrative overhead.

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 depreciation and amortization from higher PP&E in service, with OM&G expenses rising from higher power generation costs and the Cybersecurity Incident.

Q1 2025 compared to Q1 2024 Q1 2025 net income increased by $53 million compared to Q1 2024. The increase is due to decreased income tax expense due to recognition of clean technology investment tax credits in 2025 and increased operating...

AI summary Q1 2025 net income increased by $53 million compared to Q1 2024 due to decreased income tax expense from clean technology investment tax credits and increased operating revenues from higher sales volumes driven by favorable weather.

Incident Impact and Response NS Power's ability to deliver power to customers — its primary mandate — was not affected by the Incident. Where there were customer impacts from an operational or service perspective, these were related to cha...

AI summary NS Power's ability to deliver power was unaffected by the incident, but internal operations and customer engagement were impacted. The company implemented manual processes for meter reads and billing, and shifted to a structured recovery program managed by the RPO to restore business capabilities.

Financial Enterprise Resource Planning The Incident disrupted the Company's Enterprise Resource Planning (ERP) systems. The ERP systems are comprised of core financial management functions, including general ledger, capital accounting, and...

AI summary The Incident disrupted the Company's ERP systems, leading to manual processes for payroll and financial reporting. Payroll has since stabilized, but capital accounting and reporting remain on interim solutions. Core finance functionality is expected to return in time for statutory reporting.

) There are no proposed NSPML O&M costs for 2026 related to or affected by this cyber incident.[10](#page-13-0) This is not expected to have an impact on customers. Joint-Use Agreement Proceeding The Joint-Use Agreement Proceeding (M12149)...

AI summary The cyber incident has affected the Joint-Use Agreement Proceeding (M12149) and NS Power's ability to analyze and track OM&G costs and service times related to pole installations. NS Power has not completed an analysis of capital and operational costs due to the incident, and historical data tracking is currently unavailable.

Recovery Timeline Initial efforts have focused on restoring the most critical business functions, including customer billing and engagement systems, capital planning and financial processes, payroll, storm response readiness, and energy tr...

AI summary Initial efforts have focused on restoring critical business functions such as customer billing and payroll. The next phase involves enabling business capabilities like enterprise reporting. Full restoration is expected to be completed by 2026, with business continuity measures in place to manage impacts.

Financial Enterprise Resource Planning NS Power has continued to advance the restoration of key financial enterprise resource planning capabilities necessary to support normal business operations. Work to strengthen purchasing, vendor paym...

AI summary NS Power has made significant progress in reducing post-cyber-event invoice backlogs, improving payment processing, and restoring financial systems. Invoice volumes are now at pre-cyber levels, with enhanced automation and cost tracking contributing to stable financial operations.

Additional Capabilities Restoration of additional operational and administrative capabilities has advanced from foundational rebuild into active execution and operational enablement, with several workstreams reaching material milestones si...

AI summary The restoration of operational and administrative capabilities has moved into active execution, with significant progress made in restoring reports and systems. Real-time data access and foundational infrastructure are now in place, supporting decision-making and transitioning from recovery to stable operations.

Financial Enterprise Resource Planning NS Power continues to advance the restoration of key financial enterprise resource planning capabilities necessary to support normal business operations. There was a considerable decrease of aged rece...

AI summary NS Power is restoring financial enterprise resource planning capabilities post-cyber incident, with a decrease in aged receivables and progress in reducing backlog. The expense processing component has been activated, and planning is underway to ensure safe and aligned functionality recovery.

Additional Capabilities During the reporting period, restoration activities progressed from foundational rebuild into execution and stabilization, with several operational and administrative capabilities entering deployment, testing, and o...

AI summary During the reporting period, operational and administrative capabilities were restored and transitioned into stable operations. Key systems, including business-critical reporting, asset management, and data integration, were advanced through testing and deployment phases. Remaining activities are sequenced to ensure service continuity and data integrity.

Technology Enablement Foundational technology capabilities remain fully restored and continue to operate as expected. Core infrastructure services, including compute, backup and recovery, and supporting technology platforms, provided relia...

AI summary Foundational technology capabilities are fully restored and operating as expected. Activities focused on routine operations, maintenance, and oversight to ensure service reliability and performance. Governance and operational controls are in place to maintain stability and alignment with business requirements.

Additional Capabilities Progress continued across the remaining portfolio of restoration activities, with additional solutions moving into steady-state operations. During the reporting period, the Energy and Marketing restoration initiativ...

AI summary The document discusses the progress of restoration activities, noting that the Energy and Marketing restoration initiative has been completed and is now in operational service. Focus has shifted to normal operations, user enablement, and management, with other initiatives advancing through testing and deployment.