Topic:"Performance Monitoring" in M12451

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.

Figure 10-2 – 2017-2027 FFO/Total Adjusted Debt (S&P Global) Figure 10-3 – 2017-2027 CFFO/Total Adjusted Debt (DBRS) A comparison of NS Power's 2023 S&P credit metrics relative to North American peers can be found in Appendix 10A. Page 69...

AI summary The document presents figures (Figure 10-2 and 10-3) comparing Nova Scotia Power Inc.'s (NSPI) 2017-2027 financial metrics, specifically FFO/Total Adjusted Debt (S&P Global) and CFFO/Total Adjusted Debt (DBRS). A peer comparison of NSPI's 2023 credit metrics is referenced in Appendix 10A.

SPECIAL CONDITIONS - (1) Metering will normally be at the low voltage side of the transformer. Should the customer's requirements make it necessary for the Company to provide primary metering, then the customer will be required to make a c...

AI summary Special conditions outline customer responsibilities for metering costs, transformer ownership, and load integrity. Customers may incur capital contributions for primary metering, own transformers for non-standard services, and ensure their load doesn't compromise power system integrity. Factors like reliability, harmonics, and voltage flicker are considered in assessing system impacts.

AVAILABILITY CONDITIONS - (a) The customer must commence service under this tariff on November 1st, unless NSPI grants a waiver. - (b) The customer must be equipped with a standard Smart Meter. Effective: November 1, 2024 - (c) The custome...

AI summary The tariff requires customers to commence service on November 1, 2024, with a Smart Meter, electronic billing, and a MyAccount profile. NSPI may limit enrollment and restrict participation for those on seasonal or Net Metering services.

SPECIAL CONDITIONS - (1) Metering will normally be at the low voltage side of the transformer. Should the customer's requirements make it necessary for the Company to provide primary metering, then the customer will be required to make a c...

AI summary Special conditions outline customer responsibilities for metering costs, non-standard service provisions, and load management to maintain power system integrity. Customers may bear capital costs for primary metering, own transformers for non-standard services, and ensure their load does not compromise system reliability, harmonic levels, voltage stability, or fault levels.

LARGE INDUSTRIAL TARIFF Page 3 of 6 (2,000 kVA or 1,800 kW and over) Rate Code 23 - (2) Metering will normally be at the low voltage side of the transformer. Should the customer's requirements make it necessary for the Company to provide p...

AI summary The Large Industrial Tariff (Rate Code 23) outlines metering requirements, minimum load conditions, service agreements, and power supply integrity standards. NSPI may withdraw the tariff if customers fail to meet load thresholds, with exemptions for interruptible service customers. Customers must ensure their operations do not compromise power system reliability, harmonic levels, or stability.

Nova Scotia Power Incorporated Page 18 of 23 Open Access Transmission Tariff Reserve services will only be available for the hour in which the contingency occurs and the following two hours. The quality of service will be firm for this tim...

AI summary Reserve services under the Open Access Transmission Tariff (OATT) by Nova Scotia Power Inc. (NSPI) are available for the hour of a contingency and the following two hours, with firm service quality. The Transmission Customer must resolve supply deficiencies by the end of this period, and unscheduled energy withdrawals are treated as Energy Imbalance under Schedule 4.

Interpretation and Definitions Page 2 of 6 "Distribution System Access" The services provided by the Company under the Distribution Tariff to provide for the connection of the RtR Customer to the Company's distribution system, but does not...

AI summary The document defines key terms related to distribution system access, metering, retail supplier licensing, and load measurement. It clarifies that the Company provides connection services but not electricity delivery, establishes definitions for estimated meter reads and farming/fishing units, and outlines requirements for Licenced Retail Suppliers (LRS) and their participation agreements.

Executive Summary Hurricane Fiona, which arrived in Nova Scotia in the fall of 2022, was the most damaging storm Nova Scotia Power Inc (NS Power) has ever experienced with 415,000 or 80 percent of customers impacted at its peak. At landfal...

AI summary Hurricane Fiona (2022) caused significant damage to Nova Scotia Power Inc (NS Power), impacting 80% of customers. The Climate Adaptation Plan aims to enhance infrastructure resilience against climate change, using guidance from the Canadian Electricity Association (CEA). NS Power integrates climate risks into asset management, addressing extreme weather, sea level rise, and temperature changes to ensure reliable energy delivery.

About this Report Nova Scotia Power Inc. (NS Power) has chosen to utilize the Canadian Electricity Association's Climate Change and Extreme Weather: A Guide to Adaptation Planning for Electricity Companies 1 Global Commission on Adaptation...

AI summary Nova Scotia Power Inc. (NS Power) references the Canadian Electricity Association's climate adaptation guide and two external reports on climate resilience and risk management for utilities in its regulatory proceeding document.

1.2. Goals and Objectives The goal of the Climate Adaptation Plan is to ensure the utility continues to successfully deliver on its mission to provide safe, reliable and affordable electricity, while improving its resilience to climate cha...

AI summary NS Power's Climate Adaptation Plan aims to ensure reliable electricity delivery while enhancing resilience to climate change. Key objectives include integrating climate risks into asset management, leveraging climate science, reducing vulnerabilities, fostering industry collaboration, and driving innovation for long-term adaptation.

ASPIRATIONAL GOALS Deliver Value For Customers We will be a trusted partner and deliver exceptional service. Reliability+ We are building a reliable, modern grid that supports electrification. KEY INITIATIVES Customer First Program Grow ou...

AI summary The text outlines aspirational goals and key initiatives related to delivering value for customers, building a reliable grid, and transitioning to a lower-carbon economy. It also references a 2026-2027 GRA Direct Evidence Appendix 3B.

1.6. NS Power's Adaptation Planning Process In 2019, NS Power began investigating how it might better understand and strategically manage climate-related risks and opportunities. NS Power recognized the potential magnitude of impact that c...

AI summary NS Power initiated climate adaptation planning in 2019 to address climate risks to its assets and operations. It engaged Manifest Climate for training and risk assessment, and Acclimatise for climate data analytics. The process included interviews and a technical report to inform risk management strategies.

Chapter 2 Risk/Opportunity Assessment Building on the industry-wide climate knowledge in Chapter 1, this chapter focuses on NS Power's adaptation plan, compromising on three steps: [Identify Critical Assets and Operations](#page-40-1) (Ste...

AI summary Chapter 2 outlines NS Power's three-step adaptation plan for climate risks: identifying critical assets, assessing climate impacts, and evaluating risks to assets. It emphasizes scenario analysis and integration with existing risk management frameworks.

2026-2027 GRA Direct Evidence Appendix 3B Page 17 of 54 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Health & Safety Environment Business Sustainability Consequence Regulatory requirement breached. Critical safety incident requiring support...

AI summary The table outlines a criticality scale for incidents at NS Power, categorizing events based on health, environment, and business sustainability impacts. Consequences range from 'Critical' (e.g., fatalities, facility permit loss) to 'Minor' (e.g., first aid injuries, internal environmental releases). Factors like regulatory requirements, replacement energy costs, and system upgrades influence business sustainability rankings.

2026-2027 GRA Direct Evidence Appendix 3B Page 22 of 54 REDACTED (CONFIDENTIAL INFORMATION REMOVED) - Tier 2: Internationally recognized, publicly available, peer-reviewed climate data sources, e.g., IPCC, CMIP5.[18](#page-46-0) The intern...

AI summary The document details climate data sources used for 2030/2050 projections, including IPCC/CMIP5 datasets, reanalysis, downscaled models, and hazard data from NASA/WRI. Five dataset types were employed to address modeling uncertainty and fill data gaps, with emphasis on statistical rigor and spatial resolution.

2026-2027 GRA Direct Evidence Appendix 3B Page 33 of 54 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Some asset reliability teams feed information into other asset reliability teams, for example the distribution and transmission asset relia...

AI summary The document describes how asset reliability teams (e.g., distribution, transmission) share information with the vegetation team. Facilities like Wreck Cove Hydroelectric Station have 'stacked' risk profiles combining assessments from multiple teams.

Monitoring & Diagnostics (M&D) Monitoring and diagnostics is chosen for equipment that can be regularly or continuously monitored and for equipment that can have testing completed or diagnostics deployed to provide advanced information abo...

AI summary Monitoring and diagnostics (M&D) is applied to equipment that can be regularly monitored or tested, with high-risk assets requiring enhanced monitoring methods or increased diagnostic frequency to mitigate risks and detect potential failures proactively.

Chapter 4 Preparation for Implementation Chapter 4 comprises two steps on forward-looking implementation. Although NS Power is well-prepared with a robust, existing asset risk management system, integrating climate data and long-term scena...

AI summary Chapter 4 outlines two steps for forward-looking implementation, emphasizing NS Power's need to integrate climate data and long-term scenario insights into existing asset risk management systems. It details climate-related actions, role-specific responsibilities, and monitoring/reporting mechanisms to ensure effective implementation and continuous improvement.

7. Step 7: Detail and Document Implementing Control Actions This section lists the various NS Power roles that will be involved in integrating climate considerations in order to fulfil this adaptation plan. Each role will have a list of sp...

AI summary NS Power's Step 7 involves integrating climate considerations into existing risk management processes through governance and asset management systems, ensuring roles from leadership to individual personnel address climate-related adaptation needs.

NS Power Executive Leadership Team - Ensures the Climate Adaptation Plan is compatible with the strategic direction of the organization; - Provides visible leadership and strategic direction for the climate adaptation planning and programs...

AI summary The NS Power Executive Leadership Team is responsible for aligning the Climate Adaptation Plan with organizational strategy, leading climate programs, reviewing performance, and ensuring accountability for plan implementation and risk management effectiveness.

Enterprise Asset Management (Managers) - Is directly accountable for performance against key metrics for climate impacts (see Section [8.2)](#page-76-0); - Allocates resources to enable implementation of Climate Adaptation Plan; - Particip...

AI summary Enterprise Asset Management (Managers) are responsible for accountability against climate impact metrics, resource allocation for the Climate Adaptation Plan, participation in climate risk assessments, and escalating climate-related concerns to senior leadership.

Climate Adaptation Risk Lead - Manages climate datasets; - Integrates knowledge of key climate impacts and climate datasets into asset reliability team risk assessments; - Reviews climate-related asset risk scores from asset reliability te...

AI summary The Climate Adaptation Risk Lead role involves managing climate datasets, integrating climate impact assessments into asset reliability risk evaluations, maintaining the Climate Adaptation Management System (CAMS), monitoring climate-related performance metrics, and updating the Climate Adaptation Plan document with periodic dataset revisions.

Asset Reliability Team Leads/Members - Become familiar with the key climate risks and associated impacts relevant to the particular asset class and, review available climate datasets relevant to those key climate risks and impacts; - Facto...

AI summary NS Power's Asset Reliability Team is tasked with integrating climate risk assessments into asset management, leveraging climate datasets, and advancing technological innovations for climate adaptation. The organization uses internal tracking systems to monitor asset strategies and improve climate resilience programs.

8. Step 8: Establish a Process to Review and Improve Plan Monitoring implementation and reviewing progress is an essential step to drive improvement. This section outlines metrics, reporting, review, and future steps to ensure NS Power has...

AI summary Step 8 of the CEA Guide emphasizes monitoring and reviewing NS Power's adaptation plan through metrics, reporting, and analysis. It outlines methods to assess plan effectiveness, track T&D and power generation asset performance, and ensure continual improvement via asset reliability reviews and event analysis.

8.1. Performance Metrics & Reporting System reliability and availability is currently monitored and reported on monthly basis by Enterprise Asset Management for both the T&D division as well as the Generation division. These reports summar...

AI summary NS Power monitors system reliability and availability monthly via Enterprise Asset Management, reporting on T&D and Generation divisions. Reports highlight reliability, risk conditions, and validate risk mitigation effectiveness. While not climate-specific, data can be analyzed through a climate adaptation lens. T&D uses the System Reliability Performance Update with metrics like SAIFI and SAIDI to identify problem feeders and prioritize climate adaptation measures.

2026-2027 GRA Direct Evidence Appendix 3B Page 52 of 54 REDACTED (CONFIDENTIAL INFORMATION REMOVED) circulating water system caused by an excessive growth of zebra mussels. Warmer water temperature and large storms, related to climate chan...

AI summary The text discusses climate change impacts on water systems via zebra mussel growth due to warmer temperatures and storms. It outlines asset management processes, including Root Cause Analysis (RCA) for outage events and risk scoring updates by asset reliability teams.

8.3. Continuous Improvement NS Power's approach to climate adaptation utilizes existing programs and processes to ensure continuous improvement is achieved. The performance monitoring reports outlined above are one example of existing proc...

AI summary NS Power employs existing programs like performance monitoring reports, asset management mechanisms, and the Root Cause Analysis (RCA) program to drive continuous improvement in its Climate Adaptation Plan. These processes ensure ongoing evaluation, risk identification, and adaptation measures are integrated into asset management and climate strategies.

2026-2027 GRA Direct Evidence Appendix 3B Page 53 of 54 REDACTED (CONFIDENTIAL INFORMATION REMOVED) participation in the GER reporting process for events that may require further analysis. In addition, investigations may be requested at an...

AI summary The text discusses NS Power's participation in GER reporting for climate-related events, the potential triggering of RCA for major outages, and the use of existing asset management activities to improve the Climate Adaptation Plan. Continuous improvement of the asset management system is highlighted through the NS Power SAMP, with performance and compliance reports supporting this effort.

Abstract This report summarizes a best practice review of wildfire mitigation practices already implemented by NSP, as well as those to be considered for future implementation. Enterprise Asset Management Asset Reliability & Risk Management

AI summary This report reviews Nova Scotia Power's (NSP) current wildfire mitigation practices and evaluates potential future measures. It focuses on Enterprise Asset Management and Asset Reliability & Risk Management strategies to enhance safety and infrastructure resilience.

2026-2027 GRA Direct Evidence Appendix 3C Page 8 of 38 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Figure 1: Annual area burned in Canada by wildfires (Source: Canadian Interagency Forest Fire Centre Inc. (CIFFC)) This document outlines th...

AI summary Nova Scotia Power (NS Power) outlines wildfire mitigation practices informed by subject matter experts (SMEs) across departments and industry best practices to enhance risk management. The report emphasizes continuous improvement through collaboration with SMEs in transmission, distribution, forestry, and substations.

3.1 Enhanced Risk Profiling

AI summary The section '3.1 Enhanced Risk Profiling' is part of a regulatory proceeding document, but no detailed content is provided beyond a list of acronyms related to energy regulation, utility operations, and environmental legislation.

A summarized risk map that shows the overall ignition probability and estimated wildfire consequence along the electric lines and equipment NS Power has detailed risk profiles of our transmission lines and distribution feeders across its s...

AI summary NS Power provides annual risk profiles for transmission lines and distribution feeders, incorporating both lagging (wildfire outages) and leading (vegetation encroachment) indicators. These profiles help identify areas with higher wildfire risks and are updated as new data becomes available. Figures 4 and 5 illustrate sample risk profiles for transmission and distribution lines.

2026-2027 GRA Direct Evidence Appendix 3C Page 15 of 38 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Figure 5: Sample of NS Power's Transmission Line Risk Profile

AI summary The document presents a sample transmission line risk profile from NS Power's 2026-2027 GRA Direct Evidence Appendix 3C. The figure illustrates risk assessments for transmission infrastructure, though specific details are redacted. The context relates to regulatory proceedings involving rate applications and infrastructure planning.

3.2 Tracking and analysis of wildfires and near miss ignitions The purpose of this practice is to track ignitions and potential ignitions and perform root cause analysis to detect and understand patterns or correlations. The resulting data...

AI summary NS Power tracks wildfires and near-miss ignitions to identify patterns and improve fire prevention. Data from NS NRR is reviewed by the Vegetation Reliability Team, while outage events are categorized in the Outage Management System for root cause analysis.

4.0 Situational Awareness The centralized aggregation of data from power system assets provides visibility into the state of the power system so that appropriate actions can be taken to match fire risk conditions. Understanding this state...

AI summary Centralized data aggregation from power system assets enhances situational awareness, enabling NS Power to respond more effectively to equipment faults and fire risks. Improved visibility into downline protective devices is highlighted as a key enhancement for future response capabilities.

2026-2027 GRA Direct Evidence Appendix 3C Page 19 of 38 REDACTED (CONFIDENTIAL INFORMATION REMOVED) meteorological risks and assess when weather conditions may cause an impact on our infrastructure. This allows the company to mobilize appr...

AI summary NS Power employs tools like the Fire Weather Index (FWI), weather stations, and cameras to assess wildfire risks, adjust operations, and collaborate with stakeholders. Effective forecasting requires integrating data from multiple sources to manage meteorological risks.

5.0 Inspection Programs Inspection and maintenance programs enable utilities to identify and address deficient conditions and components to reduce potential impacts to the electric system, minimizing hazards, and maintaining system reliabi...

AI summary Inspection and maintenance programs are critical for identifying and addressing deficiencies in the electric system, reducing hazards, and ensuring reliability. Existing programs should be reviewed for improvements, and new programs should be considered for inclusion as needed.

5.1 Ground Patrol Inspections

AI summary Section 5.1 of the document discusses Ground Patrol Inspections, though no detailed content or arguments are provided in the included text. The section heading suggests a focus on inspection procedures or infrastructure maintenance.

Detailed inspections of electric lines and equipment Careful visual inspections of overhead electric lines and equipment where individual pieces of equipment and structures are carefully examined, visually, and through use of routine diagn...

AI summary The document outlines procedures for inspecting overhead electric lines and equipment, including visual checks and diagnostic tests. Distribution and transmission systems are assessed for deficiencies, with specific equipment listed for each. Vegetation and wildlife interactions are also evaluated to prevent failures and ignition risks.

Quality assurance / quality control of inspections NS Power uses a two-parts quality program. The first is quality control for the regular inspection programs to ensure they are being performed as planned and the inspectors are well-aligne...

AI summary NS Power employs a two-part quality program: one for regular inspection programs ensuring alignment with criteria, and another for post-completion capital project checks (e.g., verifying correct design/installation). This applies to both transmission and distribution, with ongoing improvements focused on distribution's post-construction quality control.

5.5 Substation Inspections Substation inspections are conducted primarily to identify and address reliability and environmental concerns but incidentally provides additional wildfire mitigation benefits. Specifically, the inspection progra...

AI summary Substation inspections focus on reliability and environmental safety, incidentally aiding wildfire mitigation by preventing equipment failures that could cause fires. Substation design (steel, gravel, concrete) and vegetation management limit fire spread, while transformers are engineered to avoid explosions. Uncontrolled fires, though rare, pose potential ignition risks.

7. Post-Event Analysis: - Conduct post-event validation and analysis with NS Power and emergency responder personnel to assess the effectiveness of shutoffs. - Incorporate improvements and refinements of the decision-making process and exe...

AI summary The post-event analysis involves validating shutoff effectiveness with NS Power and emergency responders, refining decision-making processes, and requiring stakeholder consultation before finalizing the PSPS protocol. Improvements in execution and protocol development are emphasized.

1 1.4.2 Hedging Principles 2 3 • Recognizing that not all risk can be removed from fuel costs, focus on reducing the overall 4 portfolio risk when it is economic to do so. 5 6 • While hedging increases the stability and predictability of f...

AI summary NS Power outlines a hedging strategy targeting 50-100% coverage of fuel costs, emphasizing dynamic rebalancing to optimize risk. 50% of forecast FAM costs are naturally hedged through renewable energy contracts, with the remaining exposed costs hedged at 50-100%, resulting in 75-100% total hedging. Hedging prioritizes stability over achieving absolute cost minimization.

17 1.4.3 Hedging Strategies 18 19 NS Power will employ a portfolio approach to hedging by evaluating the impact of each hedge in 20 terms of its expected reduction in overall portfolio risk using Value at Risk ("VaR") and volumetric 21 pos...

AI summary NS Power will use a portfolio approach to hedging, evaluating risk via Value at Risk (VaR) and volumetric positions. Hedges up to 100% of requirements will be pursued based on PLEXOS forecasts, with dynamic rebalancing as forecasts evolve. Foreign exchange risks from USD-denominated fuel purchases will be managed under the Currency Risk Management Policy.

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.

1.5.7 Cost Savings Initiatives NS Power has continued to evolve its focus on meeting customer-requested work in a timely manner and is investing to meet increased customer reliability expectations. The Company has made significant progress...

AI summary NS Power has improved customer reliability through initiatives like the Five-Year Reliability Plan, leading to increased costs. The company emphasizes providing value for these investments and highlights the Management Operating System as part of the WAM project transition to enhance operational efficiency.

1.6.1 Customer Service The Customer Service team has also been responding to the significant population growth in Nova Scotia and the corresponding increase in customer-requested work and construction activity, particularly in the metro Ha...

AI summary NS Power increased Customer Service staffing to 206 employees in 2024 (vs. 188 in the 2024 GRA forecast) due to population growth and higher customer requests in Halifax. Performance standards were met or exceeded, including 81% of calls answered within 30 seconds. Wiring Permits staff expanded from 19 to 34 positions to handle increased construction activity. Disconnections for non-payment decreased as customers engaged with the Customer Care team. See M12185 for performance details.

Grid Modernization and Customer Integration - Operating costs associated with the WAM Support team, which were not yet in place at the time of the 2023-2024 GRA. The responsibilities of this team, as contemplated in the WAM capital applica...

AI summary The document discusses the WAM Support team's cost-saving achievements and operational improvements, including automated scheduling and inventory tracking. It also notes increased staffing in the Customer Experience team due to the restated 2024 GRA Compliance forecast. NS Power's WAM initiative has exceeded cost-saving targets, while NS Power faces higher operating expenses from expanded customer-focused initiatives.

No significant change since 2020; therefore, apply inflation factor. 124 Phase 4 - Preparation of Decommissioning and Clean-up Plans 98,400 Update Quantitative Risk Assessment and updated ERMP based on results of detailed testing program,...

AI summary The text mentions no significant change since 2020 and the application of an inflation factor. It discusses Phase 4, which involves the preparation of decommissioning and clean-up plans, along with updates to risk assessments and environmental risk management plans. It also references public hearings and a reduced level of effort between 2010 and 2020.

soil and groundwater and more sampling and reporting WII be required. No chanae since 2020; therefore, annlv inflation factor. 127 Miscellaneous Considerations: Regulatory Agencies Approval of Decommissioning Completion 20,000 24,600 Time...

AI summary The text discusses miscellaneous considerations related to regulatory approvals for decommissioning and long-term groundwater monitoring. It includes costs for meetings, reporting, and monitoring over a five-year period, with adjustments based on annual inflation factors.

17 Details of the changes mate in each model are provided below. Exhibit Reference Cells Modification 1. NSP Positions All changes in models 2-5 (Some models require new rows so reference cells in the combined model may be a few cells lowe...

AI summary The document outlines changes made to models 2-5 by NSP, specifically focusing on the separation of intermediate generation from steam and the application of capacity factors to Tufts Cove and Lingan. Reference cells and exhibits are provided to highlight these modifications.

Testing: PAC testing was conducted in [Year] as follows: [Station and detail information]

AI summary PAC testing was conducted in [Year] at [Station and detail information].

FINANCIAL REVIEW OF 2025

AI summary The document outlines the financial review for 2025, focusing on regulatory proceedings under Nova Scotia's energy framework. Key areas include cost recovery, rate design, and compliance with regulatory standards, though detailed analysis is not provided in the excerpt.

RISK MANAGEMENT AND FINANCIAL INSTRUMENTS There have been no material changes in NSPI's risk management profile and practices from those disclosed in the Company's 2024 annual MD&A. In April 2025, NSPI was impacted by a Cybersecurity Incid...

AI summary NSPI's risk management profile and practices have remained largely unchanged since 2024, though a Cybersecurity Incident occurred in April 2025. Further details on the incident and general cybersecurity risks are provided in the 'Developments' and 'Enterprise Risk and Risk Management' sections of the 2024 annual MD&A.

The Company is exposed to credit risk with respect to amounts receivable from customers, energy marketing collateral deposits, and derivative assets. Credit risk is the potential loss from a counterparty's non-performance under an agreemen...

AI summary The Company faces credit risk from customers, energy marketing collateral deposits, and derivative assets. It manages this risk through policies and procedures that include counterparty analysis, exposure measurement, and mitigation strategies. Credit assessments are performed on new customers and counterparties, and deposits or collateral are required for high-risk accounts.

Key initiatives - Developed Emera-wide Serious Injury & Fatality Prevention Program - Continually working to improve contractor safety management - Launched Safety Leadership Development Program - Hazard risk registers

AI summary The key initiatives outlined include the development of a Serious Injury & Fatality Prevention Program, efforts to improve contractor safety management, the launch of a Safety Leadership Development Program, and the implementation of hazard risk registers.

GOVERNANCE AND RISK MANAGEMENT Strong governance and risk management are foundational to everything we do at Emera, including our approach to sustainability. In 2024, the Sustainability Management Committee ("SMC") and the RSC (now under t...

AI summary Emera emphasizes strong governance and risk management as essential to its operations, particularly in sustainability. In 2024, the Sustainability Management Committee (SMC) and the newly established Safety and Risk Committee (SRC) provided oversight of sustainability efforts and risk management, including climate-related risks and disclosures.

METRICS & TARGETS The metrics and targets used to assess and manage relevant climate-related risks and opportunities

AI summary The section outlines the metrics and targets used to evaluate and manage climate-related risks and opportunities, focusing on strategic planning and performance monitoring.

2.4 Risk Management The Emera Board has a comprehensive and multi-faceted approach to its risk oversight. This includes responsibility for overseeing the implementation by management of appropriate systems to identify, report and manage th...

AI summary Emera's Board oversees a comprehensive risk management framework, supported by the SRC, with a focus on identifying, assessing, and mitigating principal risks. The Board reviews risk identification, mitigation effectiveness, and alignment with strategy, while management uses a quarterly Risk Dashboard to track and report on risks.

Emera Board: The Board has ultimate responsibility for risk oversight. Emera's risk management focus includes financial, strategic, and key operational risks including safety and environment.

AI summary The Emera Board oversees risk management, focusing on financial, strategic, and operational risks, including safety and environmental considerations.

ROLE OF THE AUDIT COMMITTEE The Audit Committee assists the Board in discharging its oversight responsibilities concerning the integrity of Emera's financial statements, its internal control systems, the internal audit and assurance proces...

AI summary The Audit Committee assists the Board in overseeing financial reporting, internal controls, and compliance. It reviews financial statements, manages external and internal auditors, and evaluates financial risks and controls, including investment and pension plan management.

ted to safety matters or issues. The SRC also oversees the Company's approach to identifying and mitigating material risks facing the Company. It does this by receiving and reviewing with management: - (a) The Company's (i) Enterprise Risk...

AI summary The SRC oversees the company's risk management, including enterprise risk, insurance, business continuity, and cyber security. It also oversees environmental and sustainability matters, including policies, sustainability reports, and regulatory audits related to environmental issues.

RSC Members (to February 21, 2025): Jochen E. Tilk (Chair) B. Lynn Loewen Brian J. Porter lan E. Robertson Karen H. Sheriff - RSC members were 100% Independent - RSC met in camera without management at every Committee meeting in 2024 The r...

AI summary The RSC, composed of 100% independent members, met in camera without management in 2024. The committee oversaw risk management and sustainability, reviewing cybersecurity, risk frameworks, sustainability reports, compliance programs, and climate-related disclosures, including Bill C-59 Anti-Greenwashing provisions.

2026-2027 GRA OP-13 Attachment 1 Page 76 of 115 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Notice of Annual Meeting of Common Shareholders and Management Information Circular Monitor the ratio of the Company's CEOs' total compensation to...

AI summary The document outlines governance and compensation policies for a company, including monitoring CEO compensation ratios, disclosing executive pay history, risk assessments, independent compensation advisors, performance-based incentives, shareholder voting on pay, and clawback policies for misreported financial results.

Measures Included: Highlights - Decrease the total handle time in our contact center by a minimum of 5%. - Achieve ≥73% of Power, Quality and Reliability (PQR) Index. - Develop at least 5 customer asset management plans, assign an Operatio...

AI summary The document outlines performance measures and targets related to customer service, including reducing contact center handle time and achieving specific PQR and Customer Partnership Index scores. A payout of 22.5% is associated with meeting these targets.

9.1 Capital Process In support of its organizational and Asset Management objectives, NS Power utilizes the Asset Management Mechanism to inform and make risk-based decisions. This matrix, aligned with the matrices in NS Power's CEJC, prov...

AI summary NS Power uses an Asset Management Mechanism to evaluate risks and make decisions based on asset condition and organizational goals. The process considers safety, environmental impact, and business sustainability, while also factoring in customer affordability and financial constraints. A risk matrix is used, but subject matter expertise is essential for accurate evaluations. The Capital Optimization process, led by the EAM team, ensures that decisions balance risk, financial considerations, and operational needs.

10 Continuous Improvement NS Power is committed to continuous improvement of its Asset Management practice, utilizing both leading and lagging indicators to monitor effectiveness, and change maintenance strategies, operating strategies, or...

AI summary NS Power is committed to continuous improvement in its Asset Management practice, using both leading and lagging indicators to monitor effectiveness and adjust strategies accordingly. It employs proactive and reactive monitoring processes, including risk ratings, compliance measures, performance monitoring, and root cause analysis, and reports performance metrics such as DAFOR, CAIDI, and SAIFI.

Fuel Supply Disruptions: NSPI is also exposed to the risk of fuel supply chain disruptions, both within and outside NSPI's service territory, which may be caused by severe weather or natural disasters. This may also be caused by damage to,...

AI summary NSPI faces risks from fuel supply chain disruptions due to severe weather, natural disasters, or cyberattacks, which could increase commodity price risks and lead to a Material Adverse Effect.

RISK MANAGEMENT INCLUDING FINANCIAL INSTRUMENTS NSPI's risk management policies and procedures provide a framework through which management monitors various risk exposures. The risk management policies and practices are monitored by the Bo...

AI summary NSPI employs risk management policies and financial instruments, such as forwards and swaps, to mitigate commodity and foreign exchange risks. Derivatives are accounted for under regulatory guidelines, with fair value recognized on the balance sheet and changes deferred to regulatory assets or liabilities. Gains or losses from fuel-related derivatives are expected to be recovered from or passed on to customers through the Fuel Adjustment Mechanism (FAM).

9 SAIDI 2019 2020 2021 2022 2023 2024 5 Topics of discussion and feedback generally are centred around planned & unplanned 6 outages, upcoming tree trimming, upcoming capital upgrade work and specific customer 7 escalations. While formal m...

AI summary The text discusses topics related to planned and unplanned outages, tree trimming, capital upgrades, and customer escalations. It also mentions that community meetings have not informed NS Power's Value of Lost Load (VoLL) work, which is being handled separately. Additionally, customer satisfaction (CSAT) is not being used as a measure for the effectiveness of the Five-Year Reliability Plan.

NON-CONFIDENTIAL 1 (e) Starting in 2021, the Climate Adaptation Leadership Program (CALP) was originally 10 These programs are expected to deliver an approximately 20 percent reduction in SAIDI 11 (System Average Interruption Duration Inde...

AI summary The Climate Adaptation Leadership Program (CALP), starting in 2021, aims to reduce SAIDI and SAIFI by 2029 through targeted investments. NS Power is guided by performance standards set by the regulator, focusing on cost-effective reliability improvements while balancing affordability for customers.

Five-Year Reliability Plan – 2025-2029 NON-CONFIDENTIAL 2026-2027 GRA NSEB IR-20 Attachment 1 Page 39 of 40 1 Performance Standards SAIDI: Calculated in a similar manner to SAIDI, but excluding EEDs, 2 7 MEDs and planned outages as detaile...

AI summary The text defines key terms related to grid reliability and performance standards, including SAIDI, SAIFI, reliability, and resilience. It references a Board order (M10279) approving performance standards compliance for 2022-2026.

9.1 Capital Process In support of its organizational and Asset Management objectives, NS Power utilizes the Asset Management Mechanism to inform and make risk-based decisions. This matrix, aligned with the matrices in NS Power's CEJC, prov...

AI summary NS Power uses a risk-based Asset Management Mechanism to evaluate and prioritize capital decisions. While the mechanism provides a starting point for risk evaluation, it emphasizes the need for SME input due to potential data limitations. Risk considerations include safety, environmental impact, and business sustainability, with final decisions balancing risk, affordability, and operational needs.

10 Continuous Improvement NS Power is committed to continuous improvement of its Asset Management practice, utilizing both leading and lagging indicators to monitor effectiveness, and change maintenance strategies, operating strategies, or...

AI summary NS Power emphasizes continuous improvement in its asset management practices by using both leading and lagging indicators to monitor effectiveness and adjust strategies accordingly. The approach includes proactive and reactive monitoring processes, performance metrics, and compliance with regulations.

Performance Standards The Performance Standards are a key part of NS Power's accountability to its customers. In accordance with the requirements for Performance Standards under sections 52A to 52F of the Public Utilities Act , NS Power ha...

AI summary NS Power is required to file annual Performance Standards Reports with the NSUARB, detailing reliability, storm response, and customer service. These reports, mandated by the Public Utilities Act, are subject to stakeholder engagement and public hearings.

ii. Performance Metrics The Authority is required in a rate case to "consider the implementation of financial performance-based incentives and penalties and performance-based metrics." General Statutes § 16-19a(b). Additionally, in exercis...

AI summary The Authority is required to consider performance-based incentives and penalties for electric distribution companies, including tying executive compensation to customer-focused metrics. The Authority finds it necessary to adjust previous metrics and criticizes the Company for not prioritizing customer accountability in its compensation program.

in the Current Year (numerator) will be divided by the average number of medical protection customer accounts without a financial hardship and with an arrearage in the Historical Period (denominator). The Authority directs the Company to s...

AI summary The Authority requires the Company to submit data for calculating performance metrics baseline from 2021 to 2025, with approval by January 31, 2026. Annual compliance filings are also required, including detailed information and Excel spreadsheets for each preceding year.

imate\_resilience\_guide.pdf](https://assets-global.website-files.com/5f749e4b9399c80b5e421384/5fa7e38ce92a9c6b44e63414_hydropower_sector_climate_resilience_guide.pdf)] (retrieved November 2, 2021). International Organization for Standardi...

AI summary The text provides a list of references to documents and standards related to climate change adaptation and risk management, including guidelines from the International Organization for Standardization (ISO) and a research article on integrating extreme weather event risk assessment into electric power infrastructure planning.

by such investments by delivering decreased outage frequency and duration, but CSAT is not considered a consistent and repeatable reliability metric for benchmarking. [Exhibit N-27, NSEB IR-12, p. 2] - [86] NS Power's witness panel reitera...

AI summary NS Power argues against using Customer Satisfaction (CSAT) as a reliability benchmark, citing its lack of consistency. Instead, they emphasize objective performance standards aligned with regulatory requirements. The position is supported by Exhibit N-27 and a January 9, 2026, transcript.

in its testimony that it did not conduct any cost-benefit analysis about its customer engagement and communication initiatives or provide a plan outlining the measures or targets it hoped to achieve. [100] To be clear, the Board considers...

AI summary The Board found that NS Power did not conduct a cost-benefit analysis of its customer engagement initiatives or outline specific targets. While acknowledging the value of customer engagement, the Board prioritized affordability based on public comments, concluding that ratepayers prefer not increasing engagement costs. It emphasized meeting performance metrics as an objective measure for reliability, but not for engagement initiatives.

other jurisdictions, why is Nova Scotia Power based on its simulated data seeing significantly lower lives than all the other utilities, at least than I have been reviewing, and across many accounts. And you need to ask yourself, and I've...

AI summary Mr. Madsen questions why Nova Scotia Power's simulated asset service lives are significantly lower than peer utilities, suggesting flawed data may cause errors. He argues no unique retirement forces in Nova Scotia justify this discrepancy, pointing to potential issues with the simulated retirement data used for ELG estimates. The analysis compares NS Power's data to jurisdictions like New Brunswick and Prince Edward Island.

st a life of 40 to 41 years, and I think that's what Mr. Wiedmayer confirmed as well. And when I modelled it, I figure –– I noted that best-fit curve would be similar along a 41-R1 curve to that data. A 41-year life for this account would...

AI summary The expert discusses the asset life expectancy (40-41 years) and argues that using simulated data may lead to incorrect recommendations, suggesting that actual retirement data is needed. They also note that other accounts' curves differ from Gannett Fleming's recommendations.

ic's North American proxy group was an appropriate comparator group for NS Power because he viewed the U.S. companies that made up most of this proxy group as having significantly higher average risk. [463] Dr. Cleary supported his positio...

AI summary Dr. Cleary testified that U.S. utilities are riskier than Canadian ones, supporting a 7.6% ROE for NS Power using CAPM and DCF models. He noted U.S.-Canadian economic divergence post-2024 and home-country investor bias. Evidence from Matter M12394 and Undertaking U-14 was referenced.

data in any computation is questionable. [EB-2024-0063, pp. 36-37] [526] The Alberta Utilities Commission had similar comments in its decision in its most recent generic cost of capital proceeding: 103. While the Commission finds that the...

AI summary The Alberta Utilities Commission (AUC) included U.S. utility holding companies in the comparator group for cost-of-capital studies due to limited Canadian publicly traded utilities and global capital market integration. While acknowledging differences in risk, the AUC concluded these utilities are sufficiently comparable for financial models, noting Alberta utilities are at the lower risk end of the comparator group.

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-17: - Reference: Exhibit N-5, Appendix 3A, Status of GRA-Related Deliverables - In Item 3, NS Power notes that it created a Climate Change Adaptation Plan in 2021. - a) Please explain why, if NS Power had already created a Clima...

AI summary The Board requests NS Power to explain delays in submitting its Climate Change Adaptation Plan, provide deferred cost breakdowns, detail stakeholder engagements, clarify discrepancies in plan status, and explain the Climate Action Leadership Program. Additional requests concern climate data usage in risk analysis and holistic economic modeling for climate resilience measures.

Request IR-53: - Reference: Exhibit N-6, Appendix 7A - Please explain the reason for the increased regulatory requirements for fuel system equipment - inspections at Tufts Cove, noted on page 8 in Appendix 7A.

AI summary The document requests an explanation for increased regulatory requirements for fuel system equipment inspections at Tufts Cove, referenced in Exhibit N-6, Appendix 7A, page 8.

Request IR-75: - Reference: Exhibit N-14, Op-03 Attachment 1, ScottMadden Report - On page 29 one of the factors contributing to performance is listed as the adoption of unit flexible - operations. Please explain what the adoption of unit...

AI summary The request seeks clarification on 'unit flexible operations' as a performance factor from the ScottMadden Report (Exhibit N-14, Op-03 Attachment 1), page 29. The query aims to understand how this operational approach contributes to performance metrics.

Request IR-148: - Reference: Exhibit N-8, Appendix 13A, page 8 of 14 - NS Power stated that customer-submitted meter readings can result in intentional misreporting - and that it could be challenging to accurately capture consumption readi...

AI summary NS Power highlights challenges with customer-submitted AMI meter readings, including potential misreporting and 177 accounts submitting postcard/photo readings in 2024. The proceeding requests details on incorrect readings, instructional materials, anomaly detection capabilities, and historical incidents since 2018.

Request IR-13: - Exhibit N-14(C), 2026-2027 GRA OP 01-15 PCON.pdf, OP-04 Attachment 1. For each of NS - Power's listed generating units, please provide in Excel tabular format and by generating unit - (not by plant): - a) The forecasted ho...

AI summary Request IR-13 seeks detailed operational data from NS Power for 2026-2027, including hourly output, availability factors, and outage hours (planned, maintenance, forced) for each generating unit, formatted in Excel tables.

, 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.

Dr. Cleary's evidence is not specific to the business and operational risks of electric utility companies, and in particular vertically-integrated electric utilities such as NS Power, nor does it attempt to understand or consider many of t...

AI summary Dr. Cleary's analysis is criticized for lacking specificity to NS Power's risks, using unreliable data, and misapplying S&P's volatility tables. His models' assumptions are deemed unreasonable, and his incorrect use of the low volatility table could lead to an inaccurate credit rating assessment for NS Power, risking a downgrade.

ently justified the Company's departure from industry standards and asks that the Board critically consider reductions to NS Power's staffing request to eliminate any unnecessary burden on ratepayers. - 104. Considering NS Power's large gr...

AI summary The Department of Energy requests staffing reductions and a Savings Review for NS Power due to increased costs. NDP and Liberal Caucus urge cost justification and affordability. NS Power cites increased service demands as reasons for OM&G cost increases.

ic's North American proxy group was an appropriate comparator group for NS Power because he viewed the U.S. companies that made up most of this proxy group as having significantly higher average risk. [463] Dr. Cleary supported his positio...

AI summary Dr. Cleary testified that U.S. utilities have higher risk profiles than Canadian ones, citing higher betas and home-country bias in Canadian investments. He recommended a 7.6% return on equity for NS Power using CAPM, DCF, and risk premium models, with a 0.5% flotation cost adjustment. The 2024 U.S. election and economic shifts were noted as factors affecting U.S.-Canada relations.

group produced the lowest results in all its models and the Canadian companies within its North American proxy group produced lower return on equity results than the U.S. companies in all its models. [523] On the other hand, the Board does...

AI summary The Board acknowledges that Concentric's use of U.S. utility data may inflate ROE results but disagrees with Dr. Cleary's exclusion of U.S. data. Canadian utilities have limited data, and NS Power's unique risks (generation assets, decarbonization) require careful comparison. The Board balances both analyses, noting the Ontario Energy Board's similar conclusion in its cost-of-capital proceeding.

1 it up if it you want, it was your evidence, but you may 2 recall it, you showed a figure, Figure 34, that showed 3 Nova Scotia Power-owned generation in 2021 produced an 4 approximately 82 percent of its power supply. Do you 5 recall tha...

AI summary The discussion centers on Nova Scotia Power's generation capacity and its impact on risk analysis. The questioner references a reduction in Nova Scotia Power's own generation from 2021 to 2024 and asks whether this reduction was factored into risk analysis and if it affected risk relative to the 2022 GRA.

1 integrated. And each of these vertically integrated 2 utilities rely, to varying degrees, on a mixture of their 3 own generation and purchase power resources. So I didn't 4 really have a basis for making an adjustment specifically, 5 or...

AI summary The text discusses the utilization of the Maritime Link by a utility company, highlighting its role in reducing risk by substituting its own generation resources. It also references a board staff response (IR-23) and mentions a specific exhibit (Exhibit N-27) related to risk factors associated with DDA and securitization.

1 there's some valuable aspects of it, and they talk about 2 intending to use a customer satisfaction metric in its 3 reliability plan? 4 (MacIntosh) Yes, Mr. Mahody, if A. 5 you consider the CSAT metric and then how the Five-Year 6 Reliab...

AI summary The discussion revolves around the use of a customer satisfaction (CSAT) metric in Nova Scotia Power's reliability plan. While CSAT data is considered valuable, it is not used as a performance standard. Instead, performance standards are viewed as objective benchmarks for measuring success in reliability.