Topic:"Operating Expenses" in M12619

1 2 The forecast for D005 for 2026 was developed based on the previous 5-year average for spend 3 from 2021-2025 plus an annual inflation of 1.80 percent. This forecast resulted in an estimated 4 8,446 person days of work at a unit cost of...

AI summary The forecast for D005 in 2026 is based on the previous 5-year average of spend from 2021-2025, factoring in 1.80% annual inflation. The forecast includes overtime labour costs due to unplanned asset failures occurring at any time, including outside normal business hours. Historical data on equipment failures is referenced, with more details to be provided in future ATO filings.

NON-CONFIDENTIAL 1 Request IR-7: 2 3 With respect to Figure 35: 4 5 (a) Please provide actual (or forecast, for 2026) person-hours by regular and overtime 6 for each distribution routine, for the years 2022-2026. 7 8 (b) Please provide an...

AI summary The document contains a request and response regarding person-hours for distribution routines from 2022 to 2026, including regular and overtime hours, and an explanation for the use of overtime. It also asks whether external contractors can be used for work outside regular hours at lower rates than overtime.

1 3 5 (b) There are multiple reasons why overtime may be utilized for all distribution routines. 6 Those factors may include the complexity of the work involved, constraints around time of 7 day that work is able to take place for roads re...

AI summary The text discusses the use of overtime in distribution routines, citing factors such as work complexity, time-of-day constraints, and the need to meet service levels. It confirms that NS Power's overtime-based model is considered practical and cost-effective for ensuring resource availability.

3 G08: C0080135 CT-BGT2 Engine Refurbishment 4 - 5 Please provide the budgeted and actual annual operations and maintenance cost associated - 6 with the CT-BGT2 unit over the past five years. 7 8 Response IR-107: 9 - 10 Please refer to the...

AI summary The response to a request for budgeted and actual annual operations and maintenance costs for the CT-BGT2 unit over the past five years indicates that the data is not separated by unit and can only be provided at the total amount for the Burnside CT site.

To minimize operating costs, only one of the Bridgewater transformers is energized at any given time. Typically, 99W-T61 would be energized for 6 months of the year, and 99W-T62 would be energized for the remaining 6 months, thereby saving...

AI summary The Bridgewater transformers are operated in a staggered manner to reduce costs, with one energized for six months and the other for the remaining six months. This strategy saves approximately $10,000 annually in operating costs. The sub-transmission system serves multiple sub-stations, with contingency support available from the Westhavers Elbow transformer.

Divi: Dep get Year : sion : artment : inator : 2004 Date : CI Number: Project No. : F 30-No ov-06 2008 • • • • • • 0.763 • • 2009 • (264,979.4) 5,299.6 259,679.8 (264,979.4) 1,618.5 (263,360.9) 0.713 (187,685.0) (187,685.0) 2010 • • 10,387...

AI summary The table presents financial data from 2004 to 2024, including figures related to depreciation, operating expenses, and net income. The data shows trends in various financial metrics over time, indicating changes in financial performance.

2026 Annual Capital Expenditure (ACE) Plan (NSEB M12619) NSPI Responses to NSEB Information Requests 1 Request IR-126: 2 whether the data required to fully respond to the foregoing question will be recovered. 3 4 (b) Please refer to Attach...

AI summary NSPI responds to NSEB information requests regarding the 2026 Annual Capital Expenditure (ACE) Plan, addressing transmission outages, vegetation management, and storm-related costs. It explains that certain costs are classified as operating expenses and that storm costs are not tracked by failure mechanism.

as time, cost, volume, or quality. 7 8 (b) Please explain how the utility will measure the actual business impact following the 9 deployment of this project. 10 11 Response IR-145: 12 13 (a) A specific business case report was not develope...

AI summary The response outlines expected benefits of a project, including streamlining execution, reducing truck rolls, and improving resource planning through enhanced data visibility and automation. Federal funding is noted to provide these benefits at a significantly reduced cost to customers.

1 2 3 2. Direct NS Power to provide a report on whether the Maximo/Salesforce capabilities could be extended to improve operational efficiency and cost minimization in areas where it is not currently scoped for use. (Section III.A) 4 5 3....

AI summary The document outlines various directives for NS Power, including improving operational efficiency through software capabilities, revising work orders, monitoring external cost factors, managing contingency amounts, and revising the CEJC to align with the Board's requirements. It also addresses reliability metrics and spare equipment inventory.

Q: Is there any further evidence that NS Power lacks internal controls to ensure effective planning of resources to minimize costs? A: Yes, NS Power does not utilize a Basis of Schedule practice, or its equivalent, for its capital routine...

AI summary NS Power does not use a Basis of Schedule practice for its capital routine projects, which may indicate a lack of internal controls for resource planning. However, for some routines, this is reasonable due to their reactive nature. For other routines, an equivalent practice could help avoid delays and costs. NS Power has reported efficiency improvements from implementing new software, resulting in $2.7 million in savings.

Q: What are your recommendations for the Board? - A: I have three recommendations to enhance cost minimization in capital routines. First, I recommend that the Board revise its reporting requirement for the Work Management and Scheduling &...

AI summary The witness recommends three actions for the Board to enhance cost minimization in capital routines. These include revising reporting requirements, extending reporting timelines, and exploring software capabilities for operational efficiency. The recommendations also suggest expanding the use of software tools and applying these practices beyond distribution routines.

Q: Do you have any other comments on NS Power's vegetation management program? A: Yes. In a response to an information request, NS Power seems to suggest that it was able to "exceed the planned kms" of trimming and removal of trees through...

AI summary The response discusses NS Power's vegetation management program, noting that it shifted resources from capital projects to operating expenses for tree trimming. The responder acknowledges this as an efficient reallocation but hopes the good practices and cost minimization are ongoing.

2025 Capital Write Offs in Excess of $1,000,000 This report includes capital write offs in excess of $1,000,000. A write-off occurs typically when a capital project is no longer feasible and will not proceed. The costs associated with thes...

AI summary This report details capital write-offs exceeding $1,000,000, which occur when projects are no longer feasible. These costs are written off to operating expenses. The report complies with NS Power's 2016 commitment and reflects a 2019 Board-approved threshold.

DATE FILED: April 8, 2026 Page 4 of 19 1 2.0 RESPONSE TO CA (WILSON) EVIDENCE 27 28 29 30 Direct NS Power to provide a report on whether the Maximo/Salesforce capabilities could be extended to improve operational efficiency and cost minimi...

AI summary The text discusses NS Power's response to recommendations related to operational efficiency and forecasting methodologies. NS Power disagrees with a recommendation to revise work orders for customer-driven routines, arguing that granular customer type information would not significantly impact forecasting methods.

Transactions per labor hour provides an appropriate metric to measuring the efficiency between the new and old WAM systems. Non-productive labor hours, such as vacation, training, sick time, holidays, and storm response, have been excluded...

AI summary The document discusses the efficiency gains from implementing the new WAM Phase 2 systems by comparing transaction per labor hour metrics between 2021-2022 and 2024. Non-productive hours were excluded, and benefits were calculated using a blended IBEW Collective Agreement rate. 2023 data was excluded due to the use of both systems and a hypercare period.

Auto-Scheduling & Optimization + One View of Work In Year 1, the Company realized $2.7 million in efficiency gains within the categories of Auto-Scheduling and Optimization and One View of Work, by analyzing transactions per labour hour. N...

AI summary The Company achieved $2.7 million in efficiency gains in Year 1 through the implementation of Auto-Scheduling and Optimization and One View of Work tools. These tools improved scheduling, reduced manual work, and enhanced operational efficiency by streamlining routes, minimizing travel time, and providing real-time updates.

Standardized Data, Reporting & Analytics Standardized reporting and analytics improvements in the first year achieved full benefits in year 1 instead of year 3. Real-time reports and dashboards now provide quick access to information on up...

AI summary Standardized data and reporting improvements in the first year achieved immediate benefits, including reduced manual effort, enhanced operational visibility, and robust benchmarking capabilities. Real-time dashboards now provide quick access to information on tasks, compliance, and productivity opportunities.

Digital Timesheets The implementation of digital timesheets has delivered $0.04 million in operational efficiencies in the first year, surpassing projections by $0.03 million. Before go-live, field resources manually populated timesheets v...

AI summary The implementation of digital timesheets has improved operational efficiency by $0.04 million in the first year, exceeding projections. The process has automated timesheet creation and eliminated manual data entry, increasing accuracy and reducing workload for both field and back-office staff.

Key improvements include: - Automated scheduling has streamlined operations, reduced manual intervention and increased efficiency. - Unified work order structure and management has provided a comprehensive view of tasks, improving coordina...

AI summary The implementation of WAM Phase 2 systems has led to operational improvements such as automated scheduling, unified work order management, enhanced inventory tracking, real-time reporting, and digital timesheets, resulting in increased efficiency and performance. These systems are viewed as a valuable investment with ongoing optimization expected to yield further benefits.

NON-CONFIDENTIAL - 1 and 2022 (combined) were compared to the average labour hours per CU hour in 2024 the first - 2 full year after go-live. Data from 2023 was excluded because the Company was operating in a - 3 temporary hyper care perio...

AI summary The text compares labour hours per compatible unit (CU) hour in 2021 and 2022 to those in 2024, noting a reduction. Data from 2023 was excluded due to a temporary hyper care period post-implementation, which did not reflect normal operations.

h as D005 (Unplanned Replacements of Deteriorated Equipment) but considered that overtime should nevertheless be tracked and that different considerations apply to work that can be planned in advance: For example, the forecast overtime lab...

AI summary The text discusses the tracking of overtime labour in distribution routines and regulatory replacements, noting that NS Power has detailed labour tracking systems in place. It also highlights efficiencies achieved through Work Management and Scheduling and Dispatch implementations, such as depot splitting and service days, which reduce travel costs.

2.3.4.1 Findings [64] The Board accepts that the formal Basis of Schedule process should not be imposed on all routine activities. However, the Board agrees with the underlying objective of the CA's recommendation. For planned routines inv...

AI summary The Board agrees with the objective of ensuring proper resource planning and minimizing avoidable costs for significant routine activities but does not support imposing the formal Basis of Schedule process on all such activities. It suggests that NS Power's existing systems may be sufficient.

a) If not confirmed, please explain. G07: C0068888 TUC3 Continuous Ash Hauling System Request IR-96: The application considers that this investment will reduce operational costs. - a) What are the annual forecasted costs of NS Power to per...

AI summary The document contains multiple requests for information regarding the Continuous Ash Hauling System and Engine Refurbishment projects. It asks about costs, maintenance schedules, TCO analysis, and the reasons for selecting specific systems and contractors. It also inquires about the operating history of a turbine unit and the OEM's recommendations for refurbishment.

drawing to explain this statement in terms of the existing configuration and the changes that will occur after this project. GP02: C0080252, Intelligent Asset Data Capture & Integration Platform 1. Please provide a report outlining the bus...

AI summary The text outlines a series of questions related to the business case, costs, and risk ratings for various projects under the 2026 ACE Plan, including the Intelligent Asset Data Capture & Integration Platform and IT projects. It also requests confirmation of budget figures for the Trenton 5 project.

25 Request IR-7: 26 27 With respect to Figure 35: 28 29 (a) Please provide actual (or forecast, for 2026) person-hours by regular and overtime for each 30 distribution routine, for the years 2022-2026. 31 32 (b) Please provide an explanati...

AI summary The request asks NS Power to provide details on labor hours, overtime usage, scheduling practices, and the feasibility of using external contractors for work outside regular hours, focusing on distribution routines and outage responses.

ing documentation. 5. If no decision has been made, please explain the process by which such a decision will be made, including dates for key milestones. Request IR-7: With respect to Figure 35: 1. Please provide actual (or forecast, for 2...

AI summary The document includes several requests for information regarding labor practices, overtime scheduling, and project management models. It asks for details on person-hours, overtime justification, contractor use, and the application of the Project Delivery Model (PDM) to capital routine projects.

ghts; and 4. External factors driving costs, including supply chain issues, shifts in the regular/overtime labour breakdown due to other utility programs. 2. In the referenced RIR, NS Power stated: NS Power has data on single-family and mu...

AI summary The text discusses NS Power's data tracking challenges, specifically regarding residential additions and internal work orders. It requests information on changes to work orders since 2025, updates on a continuous improvement initiative, and plans for future system upgrades.

- NS Power does not adequately track person-hours and overtime across many routines;[4](#page-1-0) and - NS Power does not use a Basis of Schedule (or equivalent) for many routine projects that are not reactive in nature[.](#page-1-2) 5 Mr...

AI summary The text highlights deficiencies in NS Power's tracking of person-hours and overtime, and its lack of a Basis of Schedule for non-reactive projects. Mr. Wilson suggests these deficiencies may result in increased costs and inefficiencies and recommends improvements in reporting and scheduling practices.

New Customer-Driven Work Volumes Mr. Wilson states in his report that NS Power has failed to follow through on earlier commitments to collect better data on new customer-driven work volumes. He states that the company should distinguish ca...

AI summary Mr. Wilson criticizes NS Power for not collecting better data on new customer-driven work volumes, suggesting it would improve budgeting, forecasting, and rate design. NS Power disagrees, stating its current forecasting methodology has been effective and that gathering more detailed data would incur unnecessary costs.

o be appropriate for routine work as the work is very repetitive in nature and managed by a small group of people on each individual initiative that are already aligned on key elements of the project, issues, risks and opportunities, and t...

AI summary The Consumer Advocate (CA) supports NS Power's 2026 ACE Plan but raises concerns about the cost-effectiveness of NS Power's Five-Year Reliability Plan. NS Power maintains its position on recommendations from John Wilson and argues that existing systems like WAM, Maximo, and Salesforce are already optimized for efficiency and that additional reporting would provide limited value.

nd service days, a scheduling improvement initiative intended to reduce travel time and therefore travel costs associated with appointment booked work including renovations which are included in D004. [54] However, contractor activities pr...

AI summary The document discusses the need for NS Power to improve contractor efficiency and cost tracking, particularly in projects like vegetation management. It highlights a lack of detailed data on contractor costs and productivity, despite NS Power's efforts to use software like Maximo/Salesforce for efficiency improvements.

NS POWER PANEL 79 Cr-ex, (Murphy) system versus the new? I'm just trying to figure out where the numbers come from. A. (Beaton) Just so I'm not speaking to a calculation I'm not overly familiar I think we should add that explanation of the...

AI summary The discussion revolves around Nova Scotia Power's method of tracking efficiency improvements, specifically through labour hours and transaction per hour ratios. The witness explains that while overall program-level efficiency is measured, individual project-level tracking is not feasible.