Topic:"Public Interest" in M12394

n meeting the financial integrity and capital attraction tests without giving adequate consideration to the comparability test is not sufficient to meet the [Fair Return Standard]. 21 10 22 The UARB has previously cited the statutory requi...

AI summary The document emphasizes that meeting financial integrity and capital attraction tests alone is insufficient to meet the Fair Return Standard. It highlights the importance of a fair return on rate base for the sustainability of NS Power's service and the potential negative consequences of a low return, such as poor credit ratings and increased borrowing costs.

ommission v Hope Natural Gas Company, 320 US 591 (1944) ( Hope ). 13 Northwestern Utilities, page 193. 14 Bluefield, page 692. 15 Hope, page 603. these principles in setting rates of return, 16 and other regulators also apply these princip...

AI summary The text discusses the principles of setting fair return standards in utility regulation, emphasizing the balance between the interests of utilities and consumers. It references court cases and regulatory guidelines that highlight the need for rates that are both fair to consumers and ensure a fair return for utilities.

ficiently broad that the regulator that applies it must still use informed judgment and apply its discretion in the determination of a rate regulated entity's cost of capital.[7](#page-39-1) \ \ \ … all three standards or requirements (com...

AI summary The document discusses the Fair Return Standard, emphasizing that a regulated entity's cost of capital must meet three requirements: comparable investment, financial integrity, and capital attraction. It highlights the importance of a fair return on rate base for the sustainability of NS Power and the potential consequences of a low return, such as poor credit ratings and increased borrowing costs.

h. Regulatory Risk 2 There have been decisions by the UARB where operating and capital costs have been disallowed. 3 Cost disallowances are always within the scope of utility regulation, but in Concentric's 4 experience, significant disall...

AI summary The text discusses regulatory risks faced by Nova Scotia Power Inc. (NSPI), including past instances where the UARB disallowed certain operating and capital costs. These disallowances affect NSPI's return on equity and include examples such as the treatment of executive compensation, Hurricane Fiona-related costs, and compliance with annual performance standards under the Public Utilities Act.

Non-standard Meter Service (AMI) Opt-out Fee 2026-2027 GRA Direct Evidence Appendix 13A Page 9 of 14 The concept of non-participant[11](#page-122-0) contributions to the AMI capital project costs, as these costs are embedded in rates, is b...

AI summary The document discusses the rationale for non-participant contributions to the AMI capital project costs, emphasizing shared infrastructure costs and equitable distribution. It explains that even opt-out customers benefit from AMI infrastructure, and their costs are passed through to them, ensuring no over-recovery. The AMI project is deemed in the public interest, offering cost savings and operational benefits.

ler number of comparators. As noted earlier, the OEB also has concerns about the ability to find true comparators from the U.S., which limits the number of comparators that might be definitively used. However, a significant recommended cha...

AI summary The OEB has concerns about finding true comparators from the U.S. for return on equity calculations. The EDA and OEA raised concerns about reducing return on equity, citing potential negative impacts on credit ratings, cost of debt financing, and utility growth. The Board finds that a return on equity outside the fair return standard and range of similar utilities is not in the public interest.