Topic:"Procurement Practices" in M12451

Overview - Rate base is the investment made by NS Power in assets required to provide service to customers. - Included in rate base are physical assets like power plants, wind turbines, power lines, vehicles, - buildings and inventories of...

AI summary The rate base includes physical and financial assets, with regulatory assets and liabilities. The method for calculating the rate base is consistent with previous GRA. Forecast changes include decreased FAM asset balance due to securitization and capital investment.

Customer Obligations for Self-Supply and Third-Party Supply The customer obligation for self-supply or third-party supply of Operating Reserve – Spinning Reserve is equal to 2.0 percent of the Transmission Customer's reserved capacity for...

AI summary The document outlines that a Transmission Customer's obligation for self-supply or third-party supply of Operating Reserve – Spinning Reserve is 2.0% of their reserved capacity for Point-to-Point services. This establishes a specific requirement for reserve capacity contributions in the context of energy regulation in Nova Scotia.

Supplier Obligations Transmission Customers that self-supply this service, and third-party suppliers, shall provide between 100 and 110 percent of the stated MW amount within eight minutes of notification by the Transmission Provider to ac...

AI summary Suppliers and self-supplying transmission customers must provide 100-110% of required MW reserves within 8 minutes of notification, sustaining them for 50 minutes. Failure to meet obligations incurs penalties equal to one month's charge per deficiency. This ensures system reliability through strict reserve requirements.

2026-2027 GRA Direct Evidence Appendix 1A Page 2 of 7 REDACTED (CONFIDENTIAL INFORMATION REMOVED) OP-01 NS Power / Emera Regulated Annual Reports Attachment 1 – NS Power 2024 Q3 MD&A Attachment 2 – NS Power 2024 Financial Statements Attach...

AI summary This document lists various attachments and evidence submitted as part of the 2026-2027 GRA Direct Evidence Appendix 1A. It includes financial reports, organizational charts, benchmarking studies, asset listings, maintenance schedules, fuel specifications, IPP contracts, reliability statistics, and presentations by analysts and bondholders.

5. Cost of Service Study and Line Loss Study Stakeholder Engagement The Board's directive is found at para. 367 of the 2023-2024 GRA Decision: The Board concurs that the COSS and Line Loss Study should be updated to reflect a number of dev...

AI summary The Nova Scotia Energy Board (NSEB) mandates updates to NS Power's Cost of Service Study (COSS) and Line Loss Study to reflect system changes since 2013, including renewable integration, gas generation, and grid storage. The Board requires semi-annual progress reports starting January 31, 2024, and a review of cost allocation methodologies.

Personnel work procedures and training in conditions of elevated fire risk Work activity guidelines that designate what type of work can be performed during operating conditions at different levels of wildfire risk. Designate the type of w...

AI summary NS Power outlines procedures for work activities during wildfire risk levels (Normal, Elevated, Extreme). Elevated risk requires additional mitigation, while extreme risk halts most overhead work except for critical tasks. The Vegetation Management Operating Procedure VM2.05 guides vegetation management, with the Forestry team using FWI forecasts and Safety team assessments to enforce temporary restrictions and contractor limitations.

5 1.1.1 Solid Fuel 6 7 Although NS Power's reliance on thennal generation continues to decrease and the Nova Scotia 8 Government's legislated 1 goal to phase out coal-fired electricity generation by 2030, solid fuel 9 continues to comprise...

AI summary NS Power continues to rely on solid fuel despite decreasing thermal generation and the Nova Scotia Government's 2030 coal phase-out goal. Solid fuel remains a significant part of forecast requirements, with procurement from foreign suppliers and financial hedging strategies. Further details on procurement and hedging are outlined in Sections 1.2.2 and 1.4.

10 1.2.2 Solid Fuel Portfolio 11 12 fu accordance with its Fuel Manual, NS Power procures and manages a reliable and competitively 13 priced supply of fuel on a system-wide evaluated cost basis for its generation fleet, consistent with 14...

AI summary NS Power manages a solid fuel portfolio under its Fuel Manual, ensuring reliable and competitively priced fuel supply aligned with regulatory and environmental standards. The portfolio approach is detailed in standardized filing appendices.

1 1.2.3 Long-Term Contracts 2 3 Long-term contracts are contracts which have a duration of four years or more. 4 5 NS Power for solid fuel within the 2026-2027 GRA Period for which the contract 6 term spans four years or more as set out in...

AI summary The document outlines NS Power's long-term (four+ years) and medium-term (1-3 years) solid fuel contracts during the 2026-2027 GRA period, referencing Confidential Figures 14 and 15. Medium-term contracts are further detailed in Figure 15, with volumes in OE-01E. Long-term contracts span 2026-2027, while medium-term contracts cover 2022-2024.

8 1.2.5.1 Natural Gas – Cost Pressures 9 - 10 Forecast natural gas requirements for the period 2026-2027 are lower than the 2024 GRA Refresh - 11 for all years. Natural gas consumption over the GRA period decreases as new renewable project...

AI summary Natural gas demand forecasts for 2026-2027 are lower than 2024 GRA Refresh due to renewable projects. NS Power sources gas via TCPL, Saint John LNG, and Algonquin system. Long-term contracts with TCPL and Portland via NSPEMI provide 20,000 MMBtu/day for 15 years, enhancing stability, diversification, and reducing emissions.

24 1.2.6 Heavy Fuel Oil - 26 Depending on the relative market prices of each fuel, Tufts Cove may generate using HFO rather - 27 than natural gas in the dual-fired steam boilers (Units 2 & 3). 5 Swap contracts are financial instruments use...

AI summary Tufts Cove may use Heavy Fuel Oil (HFO) instead of natural gas based on market prices. Financial instruments like swap contracts and forward price curves are used to manage fuel costs. The Approvals of Natural Gas Transportation Contracts Regulations (N.S. Reg. 80/2019) under the Public Utilities Act allows approval of long-term transportation contracts.

14 1.3.1 Background - 15 The NSUARB approved forecast Maritime Link Project costs in each year for inclusion in rates to - 16 reflect the forecast interim assessment for the Maritime Link. 17 - 18 The Nova Scotia Block commenced in mid-Aug...

AI summary The NSUARB approved forecast costs for the Maritime Link Project for inclusion in rates. The Nova Scotia Block, initiated in 2021, is expected to deliver 894 GWh of base energy by 2026-2027, with supplemental energy agreements concluding in 2027. NS Power plans to purchase market-priced energy from Nalcor via the Maritime Link during 2026-2027.

1 1.4.4.1 Physical Contracts 2 - 3 By entering into fixed price contracts, NS Power agrees to pay a known price for a physical fuel - 4 or purchased power, thereby eliminating exposure to underlying commodity market prices. These - 5 contr...

AI summary NS Power uses fixed-price contracts for physical fuel or purchased power to lock in prices and avoid commodity market exposure. These contracts may have fixed volumes or volumetric optionality and are used when NS Power has confidence in fuel need or sufficient storage capacity.

3.2.14 Foreign Exchange All NS Power Fuel Accounts are subject to adjustments to record expenses or revenues denominated in foreign currencies and include the gain or loss on currency hedges entered into for the purpose of fuel procurement.

AI summary Adjustments to NS Power Fuel Accounts are required to account for foreign currency transactions and gains/losses from currency hedging in fuel procurement.

Objectives and Scope of the Audit The overall objective of the FAM audit will be to examine operational and managerial aspects of the fuel and energy procurement, management, and production functions and activities of NS Power, including a...

AI summary The FAM audit aims to review NS Power's fuel and energy procurement, management, and production practices, including affiliate transactions, ensuring adherence to good utility practices and policies outlined in the NS Power Fuel Manual.

2026-2027 GRA Direct Evidence Appendix 6B (Clean) Page 25 of 33 REDACTED (CONFIDENTIAL INFORMATION REMOVED) The Scope of the Audit will include a review of fuel and energy procurement, fuel management, and generation production to determin...

AI summary The audit scope includes reviewing NS Power's fuel and energy procurement, management, and generation production for compliance with the Fuel Manual, covering areas like fuel costs, operational availability, contracts, hedging, and system sales. The auditor will meet with stakeholders before finalizing the scope.

Objectives and Scope of the Audit The overall objective of the FAM audit will be to examine operational and managerial aspects of the fuel and energy procurement, management, and production functions and activities of NS Power, including a...

AI summary The FAM audit will examine NS Power's fuel and energy procurement, management, and production functions, including affiliate transactions. It will assess adherence to good utility practices and compliance with NS Power's Fuel Manual policies.

2026-2027 GRA Direct Evidence Appendix 6B (Redline) Page 27 of 35 REDACTED (CONFIDENTIAL INFORMATION REMOVED) The Scope of the Audit will include a review of fuel and energy procurement, fuel management, and generation production to determ...

AI summary The audit scope covers NS Power's fuel procurement, management, and generation practices, compliance with the Fuel Manual, and FAM adjustments. Audits commence biennially, with confidentiality protocols for final reports. Significant FAM-driven rate increases over 10% may require Board intervention to assist customers.

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

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

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

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

Objectives and Scope of the Audit The overall objective of the FAM audit will be to examine operational and managerial aspects of the fuel and energy procurement, management, and production functions and activities of NS Power, including a...

AI summary The audit of the Fuel Adjustment Mechanism (FAM) will examine NS Power's fuel and energy procurement, management, and production practices, ensuring compliance with the NS Power Fuel Manual and good utility practices. Key areas include fuel costs, operational availability, contract prudence, and FAM adjustments.

Objectives and Scope of the Audit The overall objective of the FAM audit will be to examine operational and managerial aspects of the fuel and energy procurement, management, and production functions and activities of NS Power, including a...

AI summary The FAM audit aims to examine NS Power's fuel and energy procurement, management, and production practices, ensuring compliance with the NS Power Fuel Manual and good utility practices. The audit will cover fuel costs, operational performance, contract prudence, hedging practices, and FAM calculations, among other areas.

SUSTAINABILITY MATERIALITY ASSESSMENT Emera is committed to transparency, accountability, understanding stakeholder expectations and improving disclosures on the material sustainability priorities that matter most to stakeholders. Those su...

AI summary Emera conducts a sustainability materiality assessment to identify key sustainability priorities, categorized as strategic, core, and evolving. These priorities are reviewed annually with the SMC and SRC to ensure alignment with stakeholder interests and business impact. A full update is conducted every three years.

Item 3d: Procurement Strategy for Variable Renewable Resources Develop a procurement plan for incremental variable renewable resources, targeting approximately 1000MW5 by 2030. Anticipated renewable procurements and programs, such as the G...

AI summary The document outlines a procurement plan for incremental variable renewable resources, targeting 1000MW by 2030, with programs such as Green Choice and Community Solar contributing to the goal. It also calls for studies to reduce curtailment of renewable generation.

The Path to 2030 - 2024 Update 1 TABLE OF CONTENTS 2 3 1.0 EXECUTIVE SUMMARY 5 4 2.0 INTRODUCTION 9 5 3.0 2030 DECARBONIZATION GOALS 11 6 3.1 80 Percent Renewable Electricity Sales 11 7 3.2 Coal Phase Out 12 8 3.3 Proposed Clean Electricit...

AI summary This document outlines Nova Scotia's 2030 Clean Power Plan, including goals for renewable energy, coal phase-out, and resource development. It details various projects such as wind and solar resources, battery storage, and reliability tie initiatives.

6.0 2 3 6.1 Wind and Solar Resources 4 5 The 2030 Clean Power Plan incorporates a significant quantity of new variable renewable 6 generation which must be added to the grid by 2030. The required renewable energy projects wil 7 be procured...

AI summary The 2030 Clean Power Plan involves procuring renewable energy projects through the Rate Base Procurement (RBP) program initiated by the Province of Nova Scotia in 2021. The RBP aims to contract for 1100 GWh of low-impact renewable electricity to meet NS Power's 2030 Decarbonization Goals. The program includes four wind generation projects developed in partnership with Indigenous organizations.

guide. - 18 Providing feedback on the draft Participant Agreement. - 19 Completing twenty-one feasibility studies as part of the Generation Interconnection - 20 Process for prospective GCP candidates - 22 On December 1, 2023, Coho issued t...

AI summary The Green Choice Program (GCP) is an open procurement process for renewable energy projects, primarily wind energy. NS Power is responsible for procuring electricity under contracts awarded by a procurement administrator, with projects expected to achieve commercial operation by December 31, 2028. The program involves collaboration with NRR and Coho, and the selection of projects will be announced after the provincial election.

1 allow NRR to issue RFPs for energy storage solutions and contracts for well-developed, innovative 2 17 energy storage projects that can be implemented quickly. 16F 3 4 The amendments provide two pathways for new energy storage projects t...

AI summary The amendments allow NRR to issue RFPs for energy storage solutions and contracts for innovative projects that can be implemented quickly. The Province plans to procure energy storage capacity through a competitive process led by the NSIESO, with the quantity and timing determined by the NSIESO. The transition to inverter-based resources requires new grid support to maintain stability and reliability.

1 Figure 8 – Project Accountabilities Matrix 2030 Projects Accountability NS Power Key Action Items NS Government Key Action Items Partner Key Action Items Wind/Solar NS Develop and • Procure • IPPs develop, Government own grid renewables...

AI summary The document outlines the responsibilities for various 2030 projects related to renewable energy, battery storage, and grid stability in Nova Scotia. NS Power and the NS Government have defined roles in developing, procuring, and integrating renewable energy and storage solutions, with IPPs playing a key role in project development and operation.

Item 3d: Procurement Strategy for Variable Renewable Resources Develop a procurement plan for incremental variable renewable resources, targeting approximately 1000MW5 by 2030. Anticipated renewable procurements and programs, such as the G...

AI summary The document outlines a procurement strategy for variable renewable resources, aiming to add approximately 1000MW by 2030. It mentions programs like Green Choice and Community Solar and references a rate application decision. The strategy includes regular procurements and studies to reduce curtailment of renewable generation.

2. Audit Procedures To investigate the reasonableness of the capital additions proposed by UI, PURA Staff conducted an engineering and accounting audit at the Company's headquarters. The audits were aimed at promoting transparency, verifyi...

AI summary PURA Staff conducted an engineering and accounting audit to assess the reasonableness of UI's proposed capital additions, ensuring transparency, responsible decision-making, and that ratepayers only pay for legitimate and prudent investments. The audit compared plant-in-service balances and reviewed supporting documentation for capital expenditures between September 2022 and December 2024.

- Post-bid Report of the Procurement Monitor for Ameren Illinois Company's Fall 2025 RFP to Procure Zonal Resource Credits. For the Illinois Commerce Commission (September 2025). - Post-bid Report of the Procurement Monitor for Ameren Illi...

AI summary The text lists various procurement and regulatory reports and submissions from multiple jurisdictions, including Illinois and Nova Scotia, focusing on energy procurement, tariff extensions, and integrated grid planning. Key entities include Nova Scotia Power, Inc. and Ameren Illinois Company, with topics related to energy procurement, renewable resources, and regulatory compliance.

Selected experience - Served as Consulting Expert on behalf of the Public Utilities Commission of Texas in assessing a proposed acquisition of Texas New Mexico Power by Blackstone, Inc. - Led efforts as Procurement Monitor on behalf of the...

AI summary The text outlines the professional experience of an individual who has worked as a consulting expert and auditor in various regulatory and energy-related proceedings across North America, including assessments of utility acquisitions, procurement monitoring, and market design analysis.

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

AI summary The document presents a table detailing Nova Scotia Power Inc.'s allocation factors for various expenses, including labor, insurance, compliance reporting, and procurement responsibilities across different business segments such as production, transmission, distribution, and retail.

Objectives and Scope of the Audit The overall objective of the FAM audit will be to examine operational and managerial aspects of the fuel and energy procurement, management, and production functions and activities of NS Power, including a...

AI summary The audit of NS Power's Fuel Adjustment Mechanism (FAM) will examine operational and managerial aspects of fuel and energy procurement, management, and production, including affiliate transactions. The audit will assess adherence to good utility practice and the NS Power Fuel Manual, focusing on fuel costs, contract prudency, hedging practices, and FAM adjustments.

Supplier Obligations Transmission Customers that self-supply this service, and third-party suppliers, shall provide between 100 and 110 percent of the stated MW amount within eight minutes of notification by the Transmission Provider to ac...

AI summary Suppliers providing operating reserves must supply between 100 and 110 percent of the stated MW amount within eight minutes of notification and sustain it for 50 minutes. Failure to meet these obligations incurs a penalty equivalent to one month's charge for the deficient reserves.

Supplier Obligations Transmission Customers that self-supply this service, and third-party suppliers, shall provide between 100 and 110 percent of the stated MW amount within eight minutes of notification by the Transmission Provider to ac...

AI summary Suppliers providing operating reserves must supply between 100 and 110 percent of the stated MW amount within eight minutes of notification and sustain it for 50 minutes. Failure to meet these obligations incurs a penalty equivalent to one month's charge for the deficient reserves.

Supplier Obligations Transmission Customers that self-supply this service, and third-party suppliers, shall provide between 100 and 110 percent of the stated MW amount within eight minutes of notification by the Transmission Provider to ac...

AI summary Suppliers providing operating reserves must supply between 100 and 110 percent of the stated MW amount within eight minutes of notification and sustain it for 50 minutes. Failure to meet these obligations incurs a penalty equivalent to one month's charge for the deficient reserves.

Request IR-18: - Reference: N-6 2026-2027 GRA Direct Evidence Appendix 7C Page 13-14 of 58 - Per N-6, (Appendix 7C), page 13-14 of 58, we understand that 2026 forecast is lower than 2024 - compliance restated and 2024 actuals for "faciliti...

AI summary The document references a 2026 forecast lower than 2024 due to changes in allocating carrying costs on materials inventory to the procurement cost center. Questions are raised about the rationale for this allocation change and whether NSPI received approval for it.

Request IR-27: - Reference: Exhibit N-3 GRA Direct Evidence, Section 5 Fuel and Purchased Power - On page 29 of the application, NS Power states: NS Power's currently approved version of the Confidential Fuel Manual, which sets out the req...

AI summary NS Power references an 'approved' version of its Fuel Manual in its application, but the Nova Scotia Utility and Review Board has not formally approved it. The document requests confirmation that Revision #14 (dated October 17, 2024) was filed in Matter M11947 for informational purposes and that the Board emphasized NS Power's responsibility to manage fuel portfolios prudently. The Board's October 31, 2024 letter in M11947 explicitly states no approval was granted.

definite and immediately determinable. The accounting objectives of verifiability and neutrality are also satisfied. [Emphasis added] [ Depreciation Expense: A Primer for Utility Regulators , p. 12] [408] In 2022, the Public Utilities Act...

AI summary In 2022, the Public Utilities Act was amended to direct the Board to assess NS Power's asset values. The NSUARB initiated a 2023 proceeding, hiring EA Technology and Doane Grant Thornton to evaluate asset management and accounting policies. The Department's request to review assets under s. 30(2) would duplicate the ongoing s. 30(5) proceeding.

ology has been comprehensively reviewed in a proceeding before the regulator. The last proceeding focused on cost-of-service methodologies that was before the NSUARB occurred in 2014 (2014 NSUARB 53). [574] Since then, there have been conc...

AI summary The document discusses the need to update NS Power's cost-of-service methodologies due to sector changes like decarbonization, renewable energy integration, and grid storage. The NSUARB directed a review of cost allocation methods, with NS Power's engagement process outlined in its application. The last review occurred in 2014, and updates are required by December 31, 2025.

ts available until reliable operation of replacement generation has been established and that decommissioning activities are not expected to begin until after 2029. [Exhibit N-23, GT IR-26, pp. 1-2]. [718] In a recent application for Linga...

AI summary NS Power maintains Lingan Unit 2 in cold reserve until replacement generation is operational, citing procurement delays by IESO Nova Scotia. The Department of Energy argues the Board should assess Lingan 2's need for investment and deny sustaining capital costs. Decommissioning is expected post-2029.

S Power Fuel Manual in the following specific areas (without limitation as to other areas determined to be relevant to effective and efficient fuel and energy procurement, management, and production): - Fuel and purchased power costs - Rev...

AI summary The audit scope includes reviewing fuel and purchased power costs, operational availability, fuel handling, contracts, hedging practices, and FAM adjustments for NS Power. Audits will commence in February of every second year, with final reports due by July 2 of the same year. The auditor must meet with NS Power and stakeholders before finalizing the audit scope.