Topic:"Prudency Review" in M12914

14 2.2.2 Marine Survey Cost Recovery Approach 15 16 Given the unique nature of the planned full marine survey scope and NSPML's objective 17 to achieve the best outcome for customers, the Company proposes a cost recovery 18 approach broadl...

AI summary NSPML proposes a cost recovery approach for marine surveys similar to NS Power's fuel cost treatment, allowing for adjustments once the Contracted Marine Survey cost is known. This method enables cost-effective procurement but introduces additional process steps. An alternative approach with earlier pricing locks would increase customer costs.

3. MARINE SURVEY COST RECOVERY APPROACH In the Application, NSPML has proposed an approach to recovery of the 2027 marine survey cost whereby an initial Placeholder Marine Survey is included in the 2027/2028 Assessment, with the Contracted...

AI summary NSPML proposes a method to recover 2027 marine survey costs through an initial placeholder in the 2027/2028 assessment, with a true-up once the contracted cost is known. The approach is subject to a prudence review. NSPML argues that expensing the cost in the year it is incurred, with a true-up, is preferable to smoothing over multiple years, as smoothing may impose net carrying-cost impacts on customers.

CONCLUSION The IG respectfully requests that the Board: - 1. Approve NSPML's 2027 and 2028 multi-year Assessment in the amounts of $200.3 million and $191.5 million, respectively; - 2. For purposes of this Assessment, approve NSPML's propo...

AI summary The Industrial Group (IG) requests the Board to approve NSPML's 2027 and 2028 multi-year assessments, approve the proposed approach to recovery of Contracted Marine Survey costs, and direct NSPML to continue reporting on the LTAMP and LTSA. The request also includes deferring the prudence review of marine survey costs and filing a depreciation study after the Cable Protection Project is completed.