Topic:"Prudency Reviews" in M12412

- 4 Figure 1 Summary of findings, observations and conclusions # Section title Findings, observations, and conclusions • Similarly, throughout the Application the NSIESO stated that quotes and supporting documentation had been obtained for...

AI summary The NSIESO's budget assumptions lack formal quotes or estimates, relying instead on generic market information and informal discussions. This increases the risk of inaccurate budgeting and overuse of the deferral account. The NSEB is recommended to implement stricter filing requirements for future applications to ensure transparency and confirm the prudence of revenue requirements.

- Reasoning for bifurcating costs into multiple accounts instead of recording in one account and comparing to the approved amount – Per the NSIESO, the account was structured to enhance tracking 5 and transparency given that actual balance...

AI summary The NSIESO explains the need to bifurcate costs into multiple accounts for better tracking and transparency, citing the need to defer approved OM&A costs and manage variances. A deferral sub-account is proposed to recover costs in the event of a final order from the NSEB, ensuring ratepayers are not unfairly impacted and allowing for prudence reviews.