Topic:"Procurement Practices" in M12412

8 B. BACKGROUND AND STATUTORY MANDATE - 9 1. The Nova Scotia Independent System Energy System Operator - The NSIESO is a not-for-profit corporation established by the Act 2 10 on October 24, 2024. The - 11 NSIESO was created by the proclam...

AI summary The Nova Scotia Independent Energy System Operator (NSIESO) was established by the Energy Reform (2024) Act (Bill 404) to enhance competition, ensure reliable energy supply, and promote sustainability. It operates under the More Access to Energy Act, with a fiscal year from April to March, and aligns with provincial climate goals.

17 Table 6: FTE Positions under the Administration Salaries and Wages Cost Category Positions Description Reliability & Procurement strategic planning, resource allocation, supply chain management, and risk mitigation. This role focuses on...

AI summary This section discusses the role of Reliability & Procurement, which involves strategic planning, resource allocation, supply chain management, and risk mitigation to ensure efficient operations aligned with statutory objectives.

4 F. Procurement ($0.99M) - 5 The NSIESO is forecasting $0.99M in ongoing expenses as part of the Procurement cost category. - 6 This cost category primarily consists of costs incurred to fulfill its statutory object of carrying out - 7 co...

AI summary The NSIESO is forecasting ongoing expenses of $0.99M for procurement activities, which include competitive energy and capacity procurements, as well as the development and implementation of procurement initiatives. These expenses are separate from project development costs, which are capitalized under a capital program.

12 This category comprises various expenses related to the development and execution of capacity 13 procurements to satisfy the requirements identified in the 2030 Clean Power Plan which identifies 14 the need for 300MW of fast acting gene...

AI summary The text discusses expenses related to capacity procurements under the 2030 Clean Power Plan and NSPI's 2023 Evergreen IRP, including procurement and project management costs, a 300 MW RFP, and other capacity contract opportunities. Costs include consulting fees, legal support, and document acquisition.

Date filed: October 7, 2025 NSIESO (CA) IR - 4 1 Request IR - 5 54 is an ongoing area of discussion with the principle being to transfer where it is possible 55 and where it makes sense. There may be pragmatic, legal or economic reasons wh...

AI summary The text discusses the ongoing evaluation of resource transfers, considering pragmatic, legal, or economic reasons that may prevent them. It also outlines the NSIESO's approach to evaluating proponent schedules, prioritizing reasonableness and duration, and selecting reputable firms with sufficient creditworthiness. Fast-acting capacity resources and stakeholder engagement are also mentioned.

April 1 2025 - March 31, 2026 Expenses # Category Apr-25 Forecast May-25 Forecast Jun-25 Forecast Jul-25 Forecast Aug-25 Forecast Sep-25 Forecast Oct-25 Forecast Nov-25 Forecast Dec-25 Forecast Jan-26 Forecast Feb-26 Forecast Mar-26 Foreca...

AI summary The document presents a forecast of expenses related to legal and regulatory matters, including Energy Board applications and annual assessments, as well as procurement activities such as capacity contracts and project management for a 300MW Nova Scotia RFP. Operational costs are highlighted for these activities.

1 Request IR - 3 - 2 Reference: Exhibit A-1 (page 5 of 36, lines 23-26)..."The NSIESO intends to pursue a phased - 3 transition of the System Operator functions from NSPI to the NSIESO, commencing with the - 4 energy procurement, system pl...

AI summary The NSIESO plans a phased transition of System Operator functions from NSPI, starting with energy procurement, planning, and transmission interconnection in Q4 2025, followed by grid and dispatch operations in Q2 2027. The request seeks details on the full transition plan for Q2 2027.

Specifically: - System operator technical advisory services will offer essential support as the IESO builds its operational plan and coordinates with Nova Scotia Power to transition system operator functions during its startup phase. - Adv...

AI summary The IESO and Nova Scotia Power are collaborating on transitioning system operator functions, with advisory services and energy procurement processes tied to the 2030 Clean Power Plan. Advisory services support the IESO's operational planning and procurement process during its startup phase.

Request IR - 24 - Reference: Exhibit B-2 (page 25 of 36, lines 10-17)… "Procurement: This category comprises - various expenses related to the development and execution of capacity procurements to satisfy - the requirements identified in t...

AI summary The document references the need for 300MW of fast-acting generation by 2030 (2030 Clean Power Plan) and 2027 (NSPI's 2023 Evergreen IRP). It requests the procurement strategy and timeline for the 300MW RFP.

NON-CONFIDENTIAL 1 Request IR - 25 2 Reference: Exhibit B-2 (page 25 of 36, line 11, Table 12) 3 a) Please provide the supporting calculations showing how the 300MW RFP expense of 4 $0.36 million was forecasted, including support for any a...

AI summary The document outlines a regulatory proceeding involving Nova Scotia Power (NSP) and the Nova Scotia Independent Energy System Operator (NSIESO). It requests detailed calculations for expenses related to a 300MW RFP, procurement management, and capacity contracts. Responses reference Exhibit B-2, citing the firm's experience in budgeting and highlighting deliverables like long-term power purchase agreements and replicable RFP processes for NSIESO.

1 Request IR - 7 - 2 Reference: N-01(i), Application Exhibits, page 25. - 3 With respect to procurement costs anticipated, is the NSIESO able to provide an update on the - 4 progress made with respect to competitive energy and capacity pro...

AI summary A request seeks an update on NSIESO's progress with competitive energy and capacity procurements, including future projects. The response directs to other referenced matters for detailed information.

NON-CONFIDENTIAL 1 Request IR - 1 2 Reference: Exhibit N-1(i), p. 1 of 36 3 The NSIESO outlines the transition of system planning, transmission interconnection, energy 4 and capacity procurement functions and real time dispatch operations...

AI summary The NSIESO outlines a two-phase transition of functions from NS Power, with Phase 1 planned for December 1, 2025, but dependencies and risks may affect the timeline. Preparations include hiring, organizational setup, and facility readiness.

Response IR - 5 - a) This is a difficult question to answer, given the current state of active planning and - executing by the NSIESO of the Phase 1 transition, as many of the broad objectives laid - out in section 9 of the More Access to...

AI summary The NSIESO (NSEB) acknowledges challenges in addressing a question due to ongoing planning for Phase 1 and Phase 2 transitions under the More Access to Energy Act . Key functions being transferred include System Planning and Energy and Resource Procurement, with focus on Phase 1 activities for the 2025/26 fiscal year.

Request IR - 20 2 Reference: Exhibit N-1(i), pp. 25-26 of 36 3 Under procurement and project management, the NSIESO states: 4 "The costs under this cost category represent 50% of the total costs pertaining to these activities, 5 as the NSI...

AI summary The NSIESO explains that 50% of procurement and project management costs are capitalized due to estimates from service providers. These costs relate to site development for a 300MW powerplant, aimed at de-risking and advancing the schedule in parallel with the RFP. A capitalization policy for these assets is to be developed as part of the NSIESO's broader organizational policies.

- The NSIESO states: - "To reduce costs with respect to document development, these costs also include $62,500 to - acquire the right to use procurement documents developed by New Brunswick Power in respect - of its recent Single Cycle Com...

AI summary The NSIESO is using procurement documents from New Brunswick Power for its Single Cycle Combustion Turbine procurement. Questions are raised about whether expert consultation was conducted and whether documents more aligned with energy production procurement were considered.

Response IR - 21 - a) Yes. External experts have confirmed that the NB Power documentation is appropriate for the NSIESO's planned 300 MW RFP, as it resulted in a power purchase agreement for fast-acting capacity aligned with NSIESO's obje...

AI summary NSIESO confirms that NB Power's documentation for a 300 MW RFP is appropriate, leading to a power purchase agreement for fast-acting capacity aligned with NSIESO's objectives. External experts validated this approach, and NB Power's procurement process achieved alignment with NSIESO goals.

NON-CONFIDENTIAL 1 Request IR - 4 - Reference: Application, Exhibit B-2, pages 25-26, Section F., Procurement

AI summary The document references an application with Exhibit B-2, pages 25-26, Section F., Procurement. It is part of a non-confidential submission in a regulatory proceeding.

- a) What is the status, including the timeline, of the 300 MW competitive RFP described on page 26? - b) What types of resources are eligible to respond to the 300 MW competitive RFP? As part of the response, state whether the RFP is open...

AI summary The text outlines several questions regarding the status and details of a 300 MW competitive RFP and other capacity contract opportunities being investigated by NSIESO. The questions include eligibility criteria for resources, project timelines, cost breakdowns, and requests for draft RFPs with confidentiality measures.

NON-CONFIDENTIAL 20 Response IR - 4 21 (a) NSIESO intends to open the RFP in calendar Q1 2026 and provide eight weeks for bid 22 submission. NSIESO decided to use calendar Q4 2025 to further develop the RFP 23 documentation by: 24 i. hirin...

AI summary NSIESO plans to open an RFP for 300MW of single cycle combustion turbine (SCCT) in Q1 2026 after further development in Q4 2025. The RFP will be based on the Integrated Resource Plan (IRP) and will focus on SCCT implementation, with a need for 300MW immediately and an additional 300MW by 2030.

4.3.2.8 Procurement - Per the Application, the NSIESO is forecasting $0.99 million in ongoing expenses as part of the procurement cost category. This cost category primarily consists of costs incurred to fulfill its statutory object of car...

AI summary The NSIESO is forecasting ongoing procurement expenses of $0.99 million, primarily for competitive energy and capacity procurements. These costs are linked to the 2030 Clean Power Plan and NSPI's 2023 Evergreen IRP, which both require 300MW of fast-acting generation by 2027 and 2030, respectively.

Figure 20 – Procurement Procurement ($millions) Ongoing OM&A Costs Procurement and project management (50%) 0.19 300MW RFP 0.36 Other capacity contract opportunities 0.43 Total procurement 0.99 Detail on the basis for the forecasted procur...

AI summary The figure outlines forecasted procurement costs, including 50% allocated to procurement and project management, a 300MW RFP, and other capacity contracts, totaling $0.99 million. Details on cost categorization are provided in the following text.

4.3.2.8.1 Procurement and project management Per the Application, these costs are for procurement strategy development, procurement process management and management of specific resources engaged to achieve procurement objectives and are p...

AI summary The NSIESO seeks to capitalize 50% of procurement and project management costs for a 300MW SCCT powerplant, with the other 50% allocated to consulting fees. The capital project involves site development and environmental assessments to de-risk the project and advance the RFP schedule. The NSIESO plans to establish capitalization policies to ensure consistent criteria.

4.3.2.8.2 300MW RFP - Per the Application, these costs are for the NSIESO to develop and carry out a competitive 300 MW RFP. The RFP is expected to be issued in early Fall of 2025 and the successful proponent is expected to be selected in...

AI summary The NSIESO is developing a 300 MW RFP with expected issuance in early Fall 2025 and selection in late Fall 2025. Costs include documentation, legal, engineering, and a 20% contingency fee aligned with Class C estimates from the Government of Canada. Deliverables include power purchase agreements and replicable RFP processes.

1 Current status and timeline for the 300MW RFP - 2 Per the NSIESO's response to SEE-IR-4, the intention is to open the RFP in calendar Q1 2026 and provide eight - 3 weeks for bid submission. The NSIESO decided to use calendar Q4 2025 to f...

AI summary The NSIESO plans to open the 300MW RFP in Q1 2026 with an eight-week bid submission period. Q4 2025 will focus on refining documentation through hiring engineering firms, incorporating feedback from New Brunswick Power's procurement process, and stakeholder input. Only the advisory firm and engineering firm support functions remain uncontracted.

4 Figure 27 – Phase 1 transition timeline and status Phase 1 transition task Current status Estimated completion date People and roles Hiring CEO Complete N/A Designing initial organizational structure Complete N/A Procurement and selectio...

AI summary The document outlines the current status and estimated completion dates for various tasks in Phase 1 of the transition process, including hiring, organizational structure design, procurement, recruitment, and facility readiness. Some tasks are in progress, while others are not yet started.

use of the output-based pricing system are dynamically linked in the capacity expansion optimization modeling to ensure the model captures these effects when deciding among fossil (e.g., CTs) and non- fossil (e.g., battery storage, demand-...

AI summary The text discusses the technical considerations and expertise of NSIESO in conducting an integrated resource plan (IRP) study, noting that while NSIESO has sufficient support from internal and external resources, there is uncertainty about the team's experience with Nova Scotia-specific resource planning. NSIESO has budgeted funds for consulting fees but has not yet selected a consultant.

smission Tariff with US Federal Energy Commission Standards. Prepared for Counsel to the Island Regulatory and Appeals Commission. October 10, 2017. Jointly authored with Max Chang and Spencer Fields. Michigan Public Service Commission (Ca...

AI summary The document outlines multiple testimonies in energy regulatory proceedings across jurisdictions, including analyses of resource adequacy, coal plant retirements, economic evaluations of infrastructure projects, and critiques of market proposals. Key entities involved include regulatory commissions, environmental groups, and utility companies, with dates ranging from 2016 to 2017.

t, this may impact how efficiently NSIESO is able to conduct the IRP. We think it is appropriate for NSIESO to rely on external consultants to support the development of the IRP. [Exhibit N-11, p. 9] [66] Synapse stated that the IESO's ant...

AI summary The document discusses challenges in Nova Scotia's Integrated Resource Planning (IRP) process, with Synapse advising the IESO to expedite IRP timelines to avoid delays. The IESO rebutted by confirming IRP planning had begun, hired Dunsky for process assessment, and collaborated with NS Power on the ELCC study. Expertise transfer from NS Power to IESO was highlighted as addressing concerns.

Request IR-1: - Reference: Exhibit N-1(i), p. 1 of 36 - The NSIESO outlines the transition of system planning, transmission interconnection, energy and - capacity procurement functions and real time dispatch operations from NS Power in two...

AI summary The NSIESO outlines the transition of system planning, transmission interconnection, energy and capacity procurement functions, and real-time dispatch operations from NS Power in two phases. A request is made for a more detailed transition timeline or Gantt chart.

Request IR-21: - Reference: Exhibit N-1(i), p. 26 of 36 - The NSIESO states: - "To reduce costs with respect to document development, these costs also include $62,500 to - acquire the right to use procurement documents developed by New Bru...

AI summary The NSIESO is using procurement documents from New Brunswick Power for a Single Cycle Combustion Turbine procurement. Questions are raised about whether experts were consulted on the adequacy of these documents and whether documents aligned with energy production procurement were considered.

Request IR-4: - Reference: Application, Exhibit B-2, pages 25-26, Section F., Procurement - a) What is the status, including the timeline, of the 300 MW competitive RFP described on page 26? - b) What types of resources are eligible to res...

AI summary Request IR-4 seeks information on the status and timeline of a 300 MW competitive RFP, eligibility criteria for resources (including battery storage), details of 'Other Capacity Contract Opportunities,' cost breakdowns, and a draft RFP. The NSIESO is central to the inquiry, with questions focused on procurement and resource eligibility under the Integrated Resource Plan (IRP).

30 Request IR-6: 31 32 RE: Exhibit B-2, p. 25-26, discussing the fast-acting generation. 33 34 (a) Please clarify the total amount of fast-acting generation that the NSIESO anticipates 35 procuring (300 MW, 600 MW, or some other figure). 3...

AI summary The NSIESO is requested to clarify the total fast-acting generation procurement target, whether it will use existing plans (2030 Clean Power Plan, NSPI's 2023 Evergreen IRP) or conduct new modeling, and if it can use prior procurement documents from the Nova Scotia Rate-Based Procurement.

- 7 (b) How does the NSIESO account for the fact that these costs are already 8 embedded in existing rates, without requiring ratepayers to pay twice (i.e., 9 in existing rates and as part of the NSIESO costs)? - 10 (c) Has the NSIESO vali...

AI summary The text presents a series of questions and requests related to the NSIESO's accounting for embedded costs, employee transition validation, and updates on procurement progress and interest expenses. It focuses on financial and operational considerations within a regulatory proceeding.

Non-Confidential To: The Nova Scotia Independent Energy System Operator ("NSIESO") 24. Reference: Exhibit B-2 (page 25 of 36, lines 10-17)… "Procurement: This category comprises various expenses related to the development and execution of...

AI summary The text requests information on the procurement strategy and timeline for a 300MW RFP, as well as supporting calculations and deliverables for the allocated expense of $0.36 million. These requests are tied to the 2030 Clean Power Plan and NSPI's 2023 Evergreen IRP.

The IESO did not participate in the above matters. However, in those matters and others considered by the Board, NS Power confirmed that it is assisting the IESO in the transition of responsibilities. [72] The IESO's plans about the IRP pr...

AI summary The IESO acknowledged limited initial planning for its Integrated Resource Plan (IRP) but confirmed subsequent engagement with consultants and NS Power staff transfers to address technical expertise concerns. The Board accepted Synapse's evidence that the IESO now has sufficient internal and external support for the IRP process, with ELCC studies underway.