Topic:"Rate Base" in M03154

RATE BASE - 1520

AI summary The document section titled 'RATE BASE - 1520' appears to focus on regulatory considerations related to rate base calculations, though no detailed arguments or data are visible in the provided text. The content is limited to a heading and an image reference.

DEFINITION - 01 Rate base is comprised of the net value of certain assets upon which NSPI can earn a specified rate of return. The rate base and rate of return are approved by the UARB in compliance with the Public Utilities Act. - 02 The...

AI summary The rate base, defined as the net value of assets upon which NSPI can earn a specified rate of return, is approved by the UARB under the Public Utilities Act. The UARB periodically reviews both the rate base and the allowed rate of return.

03 The components of rate base should include: a. Cost (gross historical cost less capital contributions) less accumulated depreciation of used and useful plant in service; Deleted: Net plant in service Deleted: tangible b. Construction Wo...

AI summary The text outlines the components of the rate base, including cost of used and useful plant, construction work-in-progress, and allowances, while excluding the excess of purchase price over net book value of acquired assets.

AI141 1/6/2010 5:19:00 PM Cost Centre Code Number Range 000-100 201-210 301-400 401-499 500-540 541-899 900-999 + Alphabetic Codes Major Classification Fossil Fuel Generation Customer Operations Page 2: [3] Deleted AI141 1/6/2010 5:20:00 PM

AI summary The text outlines cost centre codes and their number ranges, including classifications such as Fossil Fuel Generation and Customer Operations. It appears to be part of a regulatory document related to accounting and cost management.

POLICY - 02 Purchase price discrepancies should be amortized to income on the same basis as the assets to which they relate. - 03 Because purchase discrepancies are excluded from rate base 1 , their amortization is a shareholder expense an...

AI summary The text outlines that purchase price discrepancies should be amortized to income aligned with related assets. Since these discrepancies are excluded from the rate base, their amortization is treated as a shareholder expense, with associated tax savings benefiting shareholders. References to Sections 6250 and 1520 are provided for recording and further details.

POLICIES - 05 Contributions in aid of construction should be offset against the property, plant or equipment to which they relate so that the net amount is depreciated and included in rate base.[1](#page-101-0) - 06 If a relationship to a...

AI summary The text outlines policies on how contributions in aid of construction should be accounted for, specifying that they should be offset against related property, plant, or equipment and depreciated accordingly. If no specific asset can be identified, contributions should be offset against 'Assets in Service' by function and amortized at the composite rate of the relevant asset class.

08 Power Production Division Eligible Overhead Expenses for Power Production include all costs incurred by the Division's head office cost centres as well as the costs included in the administration cost centres for all operational generat...

AI summary Eligible Overhead Expenses for the Power Production Division include costs from head office and administrative cost centres, with a separate allocation for head office rent added to eligible expenses.

POLICY - 02 Purchase price discrepancies should be recorded as assets. - 03 Section 1520 states purchase price discrepancies are not included in rate base. Section 5320 discusses the amortization of purchase price discrepancies.

AI summary The document discusses the treatment of purchase price discrepancies, stating they should be recorded as assets, but Section 1520 excludes them from the rate base. Section 5320 addresses the amortization of these discrepancies.

GENERAL 01 When an asset no longer provides a benefit, and is not expected to provide any benefit in the future, its undepreciated cost should be written off in the period that it is recognized as being neither used nor useful. In determin...

AI summary The text outlines policies for writing off and depreciating assets that no longer provide benefits, emphasizing considerations of future removal costs and potential proceeds. It also discusses rate stability through amortization of significant write-offs and treatment of unused but available assets as useful. Depreciation rules for non-currently used assets and cost of capital charges during out-of-service periods are addressed.

POLICY 06 Assets that are not both used and useful should be classified in one of the following categories: - a. Not used and not useful; - b. Not used but useful for standby purposes; or - c. Not used but useful for future service. Delete...

AI summary The document discusses the classification of unused assets and the treatment of the Glace Bay plant, which was removed from service. It outlines that the plant will be charged with cost of capital and operating costs will be deferred and amortized over time with UARB approval.

NOT USED AND NOT USEFUL 07 Assets meeting the following criteria are included in this category: Deleted: 09 - a. they do not currently provide service to the consuming public; and - b. they are not expected to provide a benefit to customer...

AI summary The document outlines the criteria for writing off assets that do not provide service to the consuming public or are not expected to benefit customers in the foreseeable future. It also discusses the option to amortize significant write-offs over five years or a reasonable period with UARB approval, allowing unamortized costs to remain in the rate base.

NOT USED BUT USEFUL FOR STANDBY PURPOSES 10 Assets meeting the following criteria are included in this category: Deleted: 12 - a they do not currently provide service to the consuming public; and - b. they are available for service and are...

AI summary The text discusses the treatment of standby assets in regulatory proceedings, emphasizing their inclusion in rate base and depreciation over their useful life, even if they are not currently in use. These assets provide insurance against service disruptions and are treated similarly to active assets.

ASSETS - NOT USED AND USEFUL - 6350 14 Assets not currently used, but expected to be used in providing service in the future will provide value to customers at a future date. Accordingly, the cost of the asset is to be matched to the futur...

AI summary This section discusses the treatment of assets not currently in use but expected to be used in the future. It outlines how the costs of these assets should be matched with future periods when they provide value to customers, and how excess costs may be written off or deferred with UARB approval. It also covers depreciation, capital costs, and maintenance expenses during the out-of-service period.

POLICY - 02 Certain large operating expenditures incurred by NSPI may be considered material , and eligible for deferral and amortization, subject to the approval of the UARB. These costs are deferred and amortized over the approved period...

AI summary NSPI may defer and amortize certain large operating expenditures over an approved period, rather than expensing them in the year incurred, with the approval of the UARB. Materiality levels for major expenditures are outlined in Section 1560A.

POLICIES - 04 All costs associated with the development of new business should be expensed, in an operating project, until such time as it can be clearly demonstrated that the project will be viable and the Controller, NSPI has authorized...

AI summary The document outlines policies regarding the expensing and deferral of costs associated with new business development at NSPI. Costs are to be expensed until viability is confirmed and authorization is granted for deferral. Deferred costs are excluded from the regulated rate base and should be amortized over five years. Periodic reviews are required to ensure continued viability of deferred costs.

POLICY 03 Common equity, defined as common shares and retained earnings, should be used to maintain an overall capital structure that is within the range(s) approved by the UARB.

AI summary The text states that common equity, including common shares and retained earnings, should be used to maintain a capital structure within the range(s) approved by the UARB.

PROCEDURES - 04 The UARB defines the maximum common equity percentage of the total capital structure. In its March 2005 Decision, the UARB approved an increase in the common equity ratio for rate-making purposes from 35% to 37.5% of the to...

AI summary The UARB sets the maximum common equity percentage in the total capital structure, increasing it from 35% to 37.5% in 2005. Share capital issuance is recorded in general ledger account 750 - Common Shares to maintain an appropriate capital structure.

02 Retained earnings should be sufficient to maintain the Company's overall capital structure within the ranges prescribed by the UARB.[2](#page-153-1) Formatted: Indent: Left: 0 pt, Hanging: 36 pt

AI summary The text discusses the importance of retained earnings in maintaining the Company's capital structure within the ranges prescribed by the UARB.

PROCEDURES - 03 The UARB, in a March 1993 decision, has stated preferred equity should comprise 8% to 10% of the total capital structure. - 04 Proceeds from the issue of preferred shares are recorded in general ledger account 770 Preferred...

AI summary The UARB established a preferred equity range of 8% to 10% in a 1993 decision, and proceeds from preferred shares are recorded in general ledger account 770.

WORK ORDER PROCESS Deleted: ¶ 02 The following steps portray the capital asset cycle at Nova Scotia Power Inc. ("NSPI"). a. Prepare budget item and enter into Power Plant1 ("PP") as a Capital Item ("CI"); Deleted: Capital Management System...

AI summary The document outlines the work order process at Nova Scotia Power Inc. (NSPI), detailing the steps involved in the capital asset cycle, including budget preparation, approval processes, and activation of capital items. Key entities involved include NSPI and the Nova Scotia Utility and Review Board (UARB).

PROPERTY, PLANT AND EQUIPMENT

AI summary The section discusses property, plant, and equipment (PPE) under accounting standards, focusing on capital expenditures, depreciation, and related financial reporting practices.

POLICY - O2 Purchase price discrepancies should be recorded as assets. - Purchase price discrepancies are not included in rate base. Purchase price discrepancies are amortized. Deleted: Section 1520 states Deleted: p Deleted: Section 5320...

AI summary The text discusses the treatment of purchase price discrepancies, stating they should be recorded as assets and are amortized, not included in the rate base. References are made to NSPI's Accounting Policy and Procedures Manuals for further details.

POLICY 02 Redundant assets should be retired from property, plant and equipment and, therefore, excluded from rate base 1 .

AI summary The document states that redundant assets should be removed from property, plant, and equipment and excluded from the rate base, suggesting a focus on asset management and rate base considerations.

PROCEDURES - 04 The UARB defines the maximum common equity percentage of the total capital structure. - 05 Share capital may be issued to maintain an appropriate capital structure. These transactions are recorded in general ledger account...

AI summary The UARB sets the maximum common equity percentage in the total capital structure, with share capital issued to maintain an appropriate structure. A previous decision in March 2005 increased the common equity ratio for ratemaking from 35% to 37.5%.

COMMON DIVIDENDS - 7120

AI summary The document discusses the topic of common dividends related to Nova Scotia Power Inc. (NSPI) and its affiliated entities, including Nova Scotia Power Corporation (NSPC) and Nova Scotia Power Finance Corporation (NSPFC). It includes financial information and accounting standards relevant to dividend calculations and reporting.

Appendix A: 1520 Rate Base 1530 ofEquity Regulated Return 1540 Audit, Nominating and Corporate Governance Committee 1560 Materiality 1570 Cost Allocation Policy 2200 Foreign Currency Translation 4100 Electric Revenue 5100 Fuel and Power Pu...

AI summary This section outlines the Rate Base, which is a key component in determining the financial structure and regulatory framework for utility services. It includes various accounting and financial policies, such as the Fuel Adjustment Mechanism, Cost Allocation Policy, and Materiality, all of which are essential for rate-making and regulatory oversight.

DEFINITION - Rate base is comprised of the net value of certain assets upon which Nova Scotia Power Inc. ("NSPI") can earn a specified rate of return. The rate base and rate of return are approved by the Nova Scotia Utility and Review Boar...

AI summary Defines rate base as the net asset value upon which NSPI can earn a return, approved by UARB under the Public Utilities Act, with periodic reviews.

POLICIES - The components of rate base should include: - Cost (gross historical cost less capital contributions) less accumulated depreciation of used and useful plant in service; - b. Construction Work-in-Progress; - c. Allowance for mate...

AI summary The text outlines components of the rate base, including historical costs, construction work-in-progress, and specific allowances, while excluding items like excess purchase prices and assets held for future use without UARB approval. Key entities involved are NSPI and UARB.

GENERAL - The Company has an obligation to provide electric service to the consuming public in the most cost effective manner. This obligation is discharged when a customer group receiving special services pays for the cost of those servic...

AI summary The Company must provide electric service in a cost-effective manner, ensuring no customer group subsidizes another. Policies in the Rate and Regulations Manual dictate service extension distances, and any service beyond these must be funded by the customer. Factors such as location, future development, public safety, and return on investment are considered when determining customer capital contributions.

POLICIES O5 Contributions in aid of construction should be offset against the property, plant or equipment to which they relate so that the net amount is depreciated and included in rate base. Deleted: 1 06 If a relationship to a specific...

AI summary The text outlines policies for accounting treatment of contributions in aid of construction, specifying that they should be offset against related property, plant, or equipment and depreciated accordingly. If no specific asset is identified, contributions should be offset against 'Assets in Service' by function and amortized at the composite rate of the relevant asset class.

CURRENT ASSETS

AI summary The text presents a section on current assets, including images of financial data related to Nova Scotia Power Inc. (NSPI) and accounting standards. The content appears to be from a regulatory proceeding involving financial reporting and asset management.

PROCEDURES All new business costs should be charged to an operating project. An Operating Project Approval Form can be obtained from Corporate Accounting Services ("CAS"). CAS will assign a new project number to collect costs associated wi...

AI summary The document outlines procedures for handling new business costs, specifying that they should be charged to an operating project and deferred only after viability is confirmed and authorized by the Controller of Nova Scotia Power Inc. (NSPI). Deferred costs are excluded from the regulated rate base and should be amortized over up to five years.

POLICY Retained earnings should be sufficient to maintain the Company's overall capital structure within the ranges prescribed by the Nova Scotia Utility and Review Board ("UARB"). Deleted: and preferred Deleted: share issue costs Deleted:...

AI summary The document discusses the calculation of retained earnings for financial reporting purposes, ensuring the Company's capital structure remains within the ranges prescribed by the Nova Scotia Utility and Review Board (UARB).

Appendix A: 1530 ofEquity Regulated Return 2400 Employee Future Benefits 4200 Other Revenue 5300 Depreciation Expense 5800 Interest 5900 Income Taxes 6230 of Application Administrative and Vehicle Overhead (Self-constructed Assets) 6235 of...

AI summary The text presents a table with various financial and accounting-related categories, including equity, employee benefits, revenue, depreciation, interest, taxes, and asset retirement obligations. It also includes a heading for 'GENERAL INFORMATION' indicating additional content may follow.

EMPLOYEE FUTURE BENEFITS - 2400

AI summary The document provides information on employee future benefits, likely related to pension or retirement plans, under the Nova Scotia Power Inc. (NSPI) context. It includes details on financial obligations and accounting standards.

PROCEDURES - The life estimations and policies, including AROs and other significant assumptions are periodically reviewed and the results filed with the Nova Scotia Utility and Review Board ("UARB") for its approval. - The depreciation or...

AI summary The document outlines procedures for depreciation and amortization policies, including the handling of asset retirement obligations (AROs) and the approval process by the Nova Scotia Utility and Review Board (UARB). It specifies when depreciation begins and ends, exceptions for large projects, and the basis for depreciation rates.

POLICY - O2 Purchase price discrepancies should be recorded as assets. - O3 Purchase price discrepancies are not included in rate base 1 . Deleted: Section 1520 states Deleted: August 10, 2006 Deleted: p Deleted: Section 5320 discusses the...

AI summary The document discusses the treatment of purchase price discrepancies, stating they should be recorded as assets but not included in the rate base. A reference is made to Section 1520 of the NSPI Accounting Policy and Procedures Manual, though the specific content of this section is deleted.

POLICY - O5 Assets that are not both used and useful should be classified in one of the following categories: - a. Not used and not useful; - b. Not used but useful for standby purposes; or - c. Not used but useful for future service. Dele...

AI summary The policy outlines the classification of assets that are not both used and useful, and discusses depreciation practices for regulated assets. It also mentions the handling of significant write-offs and the deferral of operating costs for assets out of service, subject to UARB approval.

NOT USED AND NOT USEFUL Assets meeting the following criteria are included in this category: Deleted: 09 - a. they do not currently provide service to the consuming public; and - they are not expected to provide a benefit to customers in t...

AI summary Assets that are not currently in use and do not provide future benefits should be written off. However, if the write-off is significant, the UARB may allow amortization over five years or a reasonable period, with unamortized costs remaining in the rate base and capital costs expensed as incurred.

NOT USED BUT USEFUL FOR STANDBY PURPOSES O9 Assets meeting the following criteria are included in this category: Deleted: 12 - a they do not currently provide service to the consuming public; and - b. they are available for service and are...

AI summary The text discusses the treatment of standby assets in rate base calculations. Assets not currently in service but available for standby capacity are to be depreciated over their useful life, with their undepreciated cost included in the rate base and the related cost of capital recognized as an expense.

ASSETS - NOT USED AND USEFUL - 6350 Assets not currently used, but expected to be used in providing service in the future will provide value to customers at a future date. Accordingly, the cost of the asset is to be matched to the future p...

AI summary The document discusses accounting treatment for assets not currently used but expected to be used in the future. It outlines how costs associated with these assets should be matched with future periods, how excess costs may be written off or deferred, and how depreciation and maintenance costs are handled during the out-of-service period.

PROCEDURES Proceeds from the issue of preferred shares are recorded in general ledger account 770 - Preferred Shares. Deleted: should Deleted: 03 Deleted: The UARB, in a March 1993 decision, has stated preferred equity should comprise 8% t...

AI summary The text discusses the accounting treatment of proceeds from preferred shares, noting that they are recorded in general ledger account 770 - Preferred Shares. It references a 1993 UARB decision regarding the appropriate percentage of preferred equity in the total capital structure.

ACT OF INCORPORATION - 04 NSPI was incorporated under the name International Engineering Services Limited on July 13, 1984 pursuant to the Companies Act of Nova Scotia. On May 11, 1992, its name was changed to Nova Scotia Power Inc. - 05 I...

AI summary This section outlines the incorporation and reorganization history of Nova Scotia Power Incorporated (NSPI), including name changes, the transfer of business from Nova Scotia Power Corporation, and a corporate reorganization in 1999 that led to the formation of Emera Inc.

DEFINITION - 01 Rate base is comprised of the net value of certain assets upon which Nova Scotia Power Inc. ("NSPI") can earn a specified rate of return. The rate base and rate of return are approved by the Nova Scotia Utility and Review B...

AI summary The rate base is defined as the net value of certain assets upon which NSPI can earn a specified rate of return, approved by the UARB under the Public Utilities Act. The UARB periodically reviews both the rate base and the allowed rate of return.

POLICIES - 03 The components of rate base should include: - a. Cost (gross historical cost less capital contributions) less accumulated depreciation of used and useful plant in service; - b. Construction Work-in-Progress; - c. Allowance fo...

AI summary The text outlines policies regarding the components of the rate base, including the inclusion of certain assets and the exclusion of others, such as the excess purchase price of acquired companies and assets held for future use unless approved by the UARB.

POLICIES - 02 NSPI files with the UARB its actual regulated return on equity and regulated average common equity ratio annually. - 03 The annual regulated return on equity is calculated by dividing the regulated net earnings for the curren...

AI summary NSPI files its regulated return on equity and average common equity ratio annually with the UARB. These metrics are calculated based on regulated financial statements, using specific definitions of equity and capitalization over the previous five quarters.

DEFINITIONS - 28 For the purpose of the Cost Allocation Policy and interpretation of this Policy, the following definitions will apply. - 29 Affiliate The Nova Scotia Companies Act defines an Affiliate as: - (1) A company shall be deemed t...

AI summary This section defines key terms related to cost allocation and corporate structure under the Cost Allocation Policy. It outlines definitions such as 'Affiliate,' 'Corporate Support Service,' 'Cost Allocation,' 'Cost Driver,' 'Common Costs,' and 'Direct Costs' to ensure clarity in interpreting and applying the policy.

GENERAL INFORMATION COST ALLOCATION POLICY - 1570 - 35 Regulated refers to services or products that are subject to price regulation by regulatory authorities. - 36 Non-Regulated refers to services or products that are not subject to price...

AI summary This section defines key terms related to cost allocation policy, distinguishing between regulated and non-regulated services and explaining total capitalization as a financial metric.

FINANCIAL REPORTING SYSTEM ORACLE SYSTEM OVERVIEW - 3000

AI summary The document provides an overview of the Oracle financial reporting system used by Nova Scotia Power Inc. (NSPI) for financial reporting purposes. It includes information on accounting standards, financial systems, and regulatory compliance.

ACCOUNT STRUCTURE - 3100

AI summary The document discusses the account structure under the heading 'ACCOUNT STRUCTURE - 3100', which includes a reference to a picture on page 27. The content appears to be related to financial accounting and regulatory matters, though the specific details are not provided in the text.

INTRODUCTION - 01 The Chart of Accounts is updated on a regular basis and posted on the Nova Scotia Power Inc. ("NSPI") intranet. It is filed with the Nova Scotia Utility and Review Board ("UARB") annually. - 02 The Chart of Accounts is in...

AI summary The Chart of Accounts is regularly updated and posted on NSPI's intranet, with an annual filing to the UARB. It serves as a reference document containing definitions of segments and valid segment values for divisional expenditures.

FINANCIAL REPORTING SYSTEM ACCOUNT STRUCTURE - 3100

AI summary The document discusses the financial reporting system's account structure under category 3100, which likely pertains to financial reporting standards and practices. It references accounting principles and entities involved in regulatory proceedings in Nova Scotia.

Meters 24 Includes the purchased cost of all meters and related equipment used to measure the electricity delivered to customers.

AI summary The text refers to the inclusion of the purchased cost of all meters and related equipment used to measure electricity delivered to customers.

Services 25 Includes the installed cost of overhead or underground conductors leading from the point where the wires leave the last pole or manhole to the point where it is connected to the customer's service entrance.

AI summary The text defines the scope of 'Services' to include the installed cost of overhead or underground conductors from the last pole or manhole to the customer's service entrance.

Non-utility 36 Includes the installed cost of all intangible assets that are part of the Company's long-term investment to provide service to the rate payers that is not substantiated by a physical asset as well as the installed cost of al...

AI summary The text defines 'non-utility' as including the installed cost of intangible assets and property not directly used for electric service to consumers, which are part of the Company's long-term investment to provide service to rate payers.

COST COMPONENTS AND ELEMENTS - 6140

AI summary The document provides an overview of cost components and elements related to utility operations, including accounting standards, capital expenditures, and regulatory considerations. It outlines various financial and operational aspects that are relevant to regulatory proceedings.

CONSTRUCTION WORK IN PROGRESS - 6200 - k. Set up the capital work order in CWIP; - I. Summarize and control charges; - m. Change status of work order from CWIP to Operational ("OPS") when asset goes in service and is being used to generate...

AI summary The document outlines procedures for managing construction work in progress (CWIP), including setting up capital work orders, controlling charges, changing work order status, final cost approval, depreciation, and retirement of assets. These steps ensure proper accounting and regulatory compliance.

GENERAL - 02 The Company has an obligation to provide electric service to the consuming public in the most cost effective manner. This obligation is discharged when a customer group receiving special services pays for the cost of those ser...

AI summary The Company is obligated to provide electric service in the most cost-effective manner, ensuring that special services are paid for by the customer group receiving them. Policies in the Rate and Regulations Manual dictate maximum service extension distances, and costs exceeding these provisions require customer capital contributions, with factors like location, future development, and public safety considered.

POLICIES - 05 Contributions in aid of construction should be offset against the property, plant or equipment to which they relate so that the net amount is depreciated and included in rate base. - 06 If a relationship to a specific asset c...

AI summary The text outlines policies for accounting for contributions in aid of construction, specifying that they should be offset against related assets and depreciated, or against 'Assets in Service' if no specific asset is identified. It also mentions that contributions from customers are determined internally and documented with details such as the date, contributor name, and work order reference.

GENERAL - 01 Overhead expenses are integral costs associated with the construction of capital assets. As per NSPl's Accounting Policy & Procedures Manual Section 6100 - Cost, the cost of a capital asset not only includes direct constructio...

AI summary Overhead expenses are essential in capital asset construction and must be allocated to capital projects. The Nova Scotia Utility and Review Board has historically approved the allocation of overhead costs based on direct labour costs, as established in a 1982 ruling by the Public Utilities Board.

GENERAL - 01 Overhead expenses are integral costs associated with the construction of capital assets. As per NSPl's Accounting Policy & Procedures Manual Section 6100 - Cost, the cost of a capital asset not only includes direct constructio...

AI summary Overhead expenses are considered integral to the construction of capital assets and must be allocated to capital projects. NSPl's accounting policy outlines that overhead costs are based on labour costs for internally managed projects and contracted costs for externally managed projects, as per the Public Utilities Board's ruling.

POLICY - 02 Purchase price discrepancies should be recorded as assets. - 03 Purchase price discrepancies are not included in rate base1. 1 Please refer to NSPI Accounting Policy and Procedures Manual 1520 for details.

AI summary The text discusses the treatment of purchase price discrepancies, stating they should be recorded as assets but are not included in the rate base. A reference is provided to the NSPI Accounting Policy and Procedures Manual for further details.

POLICY 02 Redundant assets should be retired from property, plant and equipment and, therefore, excluded from rate base 1 .

AI summary The text states that redundant assets should be removed from property, plant, and equipment and excluded from the rate base.

GENERAL - 01 When an asset no longer provides a benefit, and is not expected to provide any benefit in the future, its undepreciated cost should be written off in the period that it is recognized as being neither used nor useful. In determ...

AI summary The text outlines principles for writing off and depreciating assets. Assets that no longer provide benefits should be written off, considering future removal costs and proceeds. Assets not currently used but available for service should be depreciated. Assets not currently used but useful for future customers should not affect current earnings. Transfers between categories are at book value, and gains or losses are included in the rate base and recovered from customers.

NOT USED AND NOT USEFUL - 06 Assets meeting the following criteria are included in this category: - a. they do not currently provide service to the consuming public; and - b. they are not expected to provide a benefit to customers in the f...

AI summary The text outlines criteria for writing off assets that no longer provide service or future benefits to customers, emphasizing rate stability and regulatory approval for amortization over five years or a reasonable period.

NOT USED BUT USEFUL FOR STANDBY PURPOSES - 09 Assets meeting the following criteria are included in this category: - a they do not currently provide service to the consuming public; and - b. they are available for service and are required...

AI summary The document discusses the treatment of standby assets in utility accounting. These assets, though not currently in use, are included in the rate base and depreciated over their useful life. They are considered essential for maintaining service reliability and are treated similarly to active assets.

NOT USED BUT USEFUL FOR FUTURE USE - 12 Assets meeting the following criteria are included in this category: - a. they do not currently provide service to the consuming public; and - b. they are expected to be used and useful in providing...

AI summary The text discusses the accounting treatment for assets not currently in service but expected to be used in the future. It outlines that costs should be matched to future periods when the asset provides value, and excess costs may be deferred and amortized over time with UARB approval.

ASSETS - NOT USED AND USEFUL - 6350 - 16 No cost of capital (neither return nor interest) is to be capitalized on the existing cost base during the out of service period. Any related cost of capital is to be recovered from customers and ex...

AI summary The document outlines rules for handling costs associated with assets that are out of service, specifying that no cost of capital should be capitalized during this period and that maintenance and mothballing costs should be expensed or deferred with UARB approval.

TRANSITIONAL PROVISIONS - This policy is effective January 1, 2011 and should be applied retroactively with restatement of prior periods except as outlined below. - Any item of property, plant and equipment, construction work-in-progress a...

AI summary This document outlines transitional provisions for a policy effective January 1, 2011, specifying how prior financial items should be handled, including foreign exchange rate adjustments and the deferral of transitional adjustments to the balance sheet without restating net earnings from prior years.

POLICY 03 Common equity, defined as common shares and retained earnings, should be used to maintain an overall capital structure that is within the range(s) approved by the Nova Scotia Utility and Review Board ("UARB"). - 04 The UARB defin...

AI summary The document outlines the use of common equity, including common shares and retained earnings, to maintain a capital structure within the range approved by the Nova Scotia Utility and Review Board. The UARB sets the maximum common equity percentage, and share capital issuance is recorded in general ledger account 750.

POLICY 02 Retained earnings should be sufficient to maintain the Company's overall capital structure within the ranges prescribed by the Nova Scotia Utility and Review Board ("UARB").1 1 Please refer to NSPI Accounting Policy and Procedure...

AI summary The text states that retained earnings should be sufficient to maintain the Company's capital structure within the ranges prescribed by the Nova Scotia Utility and Review Board (UARB). A reference is provided to the NSPI Accounting Policy and Procedures Manual for more details.

Appendix A: 1530 ofEquity Regulated Return 2400 Employee Future Benefits 4200 Other Revenue 5300 Depreciation Expense 5800 Interest 5900 Income Taxes 6230 of Application Administrative and Vehicle Overhead (Self-constructed Assets) 6235 of...

AI summary This section presents a table of financial and accounting-related line items, including equity, employee benefits, revenue, depreciation, interest, taxes, administrative overhead, asset retirement obligations, and long-term debt. It does not include detailed discussion or arguments.

PROCEDURES - The life estimations and policies, including AROs and other significant assumptions are periodically reviewed and the results filed with the Nova Scotia Utility and Review Board ("UARB") for its approval. - The depreciation or...

AI summary The document discusses depreciation and amortization policies, including the treatment of land, fully-depreciated assets, and the timing of depreciation for large projects. These policies are reviewed and approved by the Nova Scotia Utility and Review Board (UARB).

GENERAL - Overhead expenses are integral costs associated with the construction of capital assets. As per NSPI's Accounting Policy & Procedure Manual Section 6100 Cost, the cost of a capital asset not only includes direct construction or d...

AI summary Overhead expenses are considered integral to the construction of capital assets, and their allocation to specific projects is necessary despite their inability to be directly tied to individual expenditures. The Nova Scotia Utility and Review Board has historically approved the allocation of overhead costs based on direct labour costs, as established in a 1982 ruling by the Public Utilities Board.

09 Shared Services Division Eligible Overhead Expenses and rates are calculated for each Shared Services Division, deemed to have capital related labour and expenses. These eligible expenses include, but are not limited to, office supplies...

AI summary The Shared Services Division's eligible overhead expenses, including office supplies, training, rent, and materials, are calculated and allocated to the division. A separate allocation of head office expenses is also added to the division's eligible expenses.

POLICY - O2 Purchase price discrepancies should be recorded as assets. - O3 Purchase price discrepancies are not included in rate base 1 . Deleted: Section 1520 states Deleted: August 10, 2006 Deleted: p Deleted: Section 5320 discusses the...

AI summary The text discusses the treatment of purchase price discrepancies in accounting, noting that they should be recorded as assets but are not included in the rate base. References to deleted sections and a manual are also mentioned.

ASSET RETIREMENTOBLIGATIONS (ARO) - 6320

AI summary The document discusses Asset Retirement Obligations (ARO) under the Nova Scotia Power Inc. (NSPI) context, focusing on accounting standards and regulatory considerations related to long-term liabilities for asset retirement.

GENERAL - 02 The present value of this estimated future expenditure is recognized as a liability with an equivalent amount added to the carrying amount of the associated fixed asset consistent with FASB ASC 410-20. - The Nova Scotia Utilit...

AI summary The text discusses the accounting treatment of future expenditures related to asset removal, noting that the present value is recognized as a liability and added to the carrying value of fixed assets. It also references a depreciation order by the Nova Scotia Utility and Review Board (UARB) from 2004 and the recognition of differences between UARB-approved depreciation and GAAP calculations as a regulated asset.

POLICY - O5 Assets that are not both used and useful should be classified in one of the following categories: - a. Not used and not useful; - b. Not used but useful for standby purposes; or - c. Not used but useful for future service. Dele...

AI summary The document outlines policies for classifying and depreciating assets not in use, emphasizing rate stability and regulatory approval for amortization of write-offs. It also discusses the treatment of the Glace Bay plant, including deferring operating costs and charging cost of capital during periods of non-service.

NOT USED AND NOT USEFUL Assets meeting the following criteria are included in this category: Deleted: 09 - a. they do not currently provide service to the consuming public; and - they are not expected to provide a benefit to customers in t...

AI summary Assets not providing service to the public or expected to benefit customers are written off. If the write-off is significant, the UARB may approve amortizing the cost over five years or a reasonable period, with unamortized costs remaining in the rate base and cost of capital expensed as incurred.

NOT USED BUT USEFUL FOR STANDBY PURPOSES O9 Assets meeting the following criteria are included in this category: Deleted: 12 - a they do not currently provide service to the consuming public; and - b. they are available for service and are...

AI summary This text discusses the treatment of standby assets in regulatory proceedings. It states that such assets, even if not currently in use, must be depreciated over their expected useful life, included in the rate base, and their cost of capital recognized as an expense.

ASSETS - NOT USED AND USEFUL - 6350 Assets not currently used, but expected to be used in providing service in the future will provide value to customers at a future date. Accordingly, the cost of the asset is to be matched to the future p...

AI summary The document discusses the accounting treatment of assets not currently used but expected to be used in the future. It outlines that the cost of such assets should be matched to future periods when they provide value. Excess costs may be written off or deferred with UARB approval, and depreciation is deferred until the asset is returned to service. Maintenance costs during the out-of-service period are expensed as incurred, with some exceptions for significant costs that may be deferred.

PROCEDURES Proceeds from the issue of preferred shares are recorded in general ledger account 770 - Preferred Shares. Deleted: should Deleted: 03 Deleted: The UARB, in a March 1993 decision, has stated preferred equity should comprise 8% t...

AI summary The document discusses the accounting treatment of proceeds from preferred shares, referencing a 1993 UARB decision that preferred equity should make up 8% to 10% of the total capital structure, with the relevant general ledger account being 770 - Preferred Shares.

- 1520: Rate Base - 1530: Regulated Return of Equity - 1570: Cost Allocation Policy - 5110: Fuel Adjustment Mechanism - 5200: Operating, Maintenance & General - 5310: Amortization -Capital Contributions in Aid of Construction - 6140: Cost...

AI summary The text lists various accounting and financial categories related to utility regulation, including rate base, return on equity, cost allocation, fuel adjustment mechanism, operating expenses, amortization, capital contributions, and debt-related items.

DEFINITION - 01 Rate base is comprised of the net value of certain assets upon which Nova Scotia Power Inc. ("NSPI") can earn a specified rate of return. The rate base and rate of return are approved by the Nova Scotia Utility and Review B...

AI summary The rate base refers to the net value of certain assets upon which Nova Scotia Power Inc. can earn a specified rate of return, as approved by the Nova Scotia Utility and Review Board in accordance with the Public Utilities Act. The rate base and allowed rate of return are periodically reviewed by the UARB.

POLICIES - 03 The components of rate base should include: - a. Cost (gross historical cost less capital contributions) less accumulated depreciation of used and useful plant in service; - b. Construction Work-in-Progress; - c. Allowance fo...

AI summary The document outlines policies for determining the rate base, including components such as used and useful plant, construction in progress, and specific exclusions like excess purchase prices and assets held for future use without UARB approval.

POLICIES - NSPI files with the UARB its actual regulated return on equity and regulated average common equity ratio annually. - The annual regulated return on equity is calculated by dividing the regulated net earnings for the current year...

AI summary NSPI annually files its regulated return on equity and average common equity ratio with the UARB. The return on equity is calculated using regulated net earnings and average equity over the previous five quarters. The average common equity ratio is determined by dividing average equity by average capitalization amounts from the same period.

CAPITALIZATION LIMITS - 1560A

AI summary The document discusses capitalization limits under the heading 'CAPITALIZATION LIMITS - 1560A', though the content is not fully visible due to the image reference. It likely involves regulatory considerations related to capital expenditures and financial accounting standards.

Function Capitalization Level NSPI Accounting Policy and Procedures Manual Reference Thermal Generation $25,000 Hydro 5,000 Gas Turbines 5,000 Transmission 5,000 Distribution 1,000 6000 Buildings 2,000 Tools 1,000 Transportation Equipment...

AI summary The document outlines various capitalization levels for different assets and functions within Nova Scotia Power Inc. (NSPI), including thermal generation, transmission, distribution, and software development, along with references to the UARB approval process for certain expenditures and asset management.

COST ALLOCATION POLICY – 1570 - 35 Regulated refers to services or products that are subject to price regulation by regulatory authorities. - 36 Non-Regulated refers to services or products that are not subject to price regulation by regul...

AI summary The document defines key terms related to cost allocation policy, including 'Regulated,' 'Non-Regulated,' and 'Total Capitalization.' These definitions are essential for understanding how costs are allocated between regulated and non-regulated services and products.

STATEMENT OF CASH FLOW - 2100

AI summary The document presents the Statement of Cash Flow - 2100, which outlines the cash inflows and outflows for a specific period. It includes details related to operating, investing, and financing activities, as well as changes in cash and cash equivalents.

INTRODUCTION - 01 The Chart of Accounts is updated on a regular basis and posted on the Nova Scotia Power Inc. ("NSPI") intranet. It is filed with the Nova Scotia Utility and Review Board ("UARB") annually. - 02 The Chart of Accounts is in...

AI summary The Chart of Accounts is regularly updated and made available on NSPI's intranet, with an annual filing to the UARB. It serves as a reference document detailing segment definitions and valid values for divisional expenditures.

GENERAL 01 Generic accounts simply provide a higher level summary of Nova Scotia Power Inc.'s ("NSPI's or the Company's") asset accounts than the break down furnished by the capital and intangible activities. The format conforms to the acc...

AI summary The document explains that generic accounts provide a high-level summary of NSPI's asset accounts, following FERC standards. A cross-reference table in NSPI's Accounting Policy and Procedures Manual 3350A maps these accounts to internal tracking activities for the UARB.

GENERIC ACCOUNT DESCRIPTIONS

AI summary This section outlines the generic account descriptions relevant to the regulatory proceeding, focusing on financial and accounting standards applicable to utility companies in Nova Scotia.

Electrical Plant - 12 Includes the installed cost of the following major equipment used primarily for the control and switching of electrical energy and protection of electrical circuits and equipment: - a. Auxiliary Generators - b. Conver...

AI summary The document defines 'Electric Plant' as including major equipment for controlling, switching, and protecting electrical circuits, such as auxiliary generators, conversion equipment, and control equipment. It clarifies that voltage or frequency-changing equipment for transmission and distribution is not included.

Meters 24 Includes the purchased cost of all meters and related equipment used to measure the electricity delivered to customers.

AI summary The text refers to the inclusion of the purchased cost of all meters and related equipment used to measure electricity delivered to customers.

Services 25 Includes the installed cost of overhead or underground conductors leading from the point where the wires leave the last pole or manhole to the point where it is connected to the customer's service entrance.

AI summary The text defines the scope of 'Services' to include the installed cost of overhead or underground conductors from the point where the wires leave the last pole or manhole to the point of connection to the customer's service entrance.

Non-utility 36 Includes the installed cost of all intangible assets that are part of the Company's long-term investment to provide service to the rate payers that is not substantiated by a physical asset as well as the installed cost of al...

AI summary The text defines 'non-utility' as including the installed cost of intangible assets used in long-term investments for service provision and property not directly used for supplying electric service to consumers.

POLICIES - 03 Differences between actual fuel costs and amounts recovered from customers accumulate in the FAM Regulatory Asset (Liability) included in "Other Assets" or "Other Liabilities" on the Balance Sheet and subsequently become an a...

AI summary This section outlines the accounting and regulatory treatment of the Fuel Adjustment Mechanism (FAM) in Nova Scotia. It describes how differences between actual and recovered fuel costs are tracked in a FAM Regulatory Asset or Liability, how interest is applied, and how future income tax impacts are recorded. The FAM balance is adjusted annually and approved by the UARB for rate changes.

GENERAL - 02 The Company has an obligation to provide electric service to the consuming public in the most cost effective manner. This obligation is discharged when a customer group receiving special services pays for the cost of those ser...

AI summary The Company is obligated to provide electric service in the most cost-effective manner, ensuring no customer group subsidizes another. Policies in the Rate and Regulations Manual govern the maximum distances for service extension, with special considerations for costs exceeding these limits, including customer capital contributions and factors like location, safety, and return on investment.

APPLICATION OF ADMINISTRATIVE OVERHEAD (CONTRACTED ASSETS) - 6235

AI summary The document pertains to the application of administrative overhead for contracted assets, likely involving financial and regulatory considerations related to Nova Scotia Power Inc. and the Nova Scotia Utility and Review Board.

GENERAL - 01 The cost-of-capital invested in construction work in progress is included in an allowance for funds used during construction 1 ("AFUDC") as an addition to the cost of property constructed using a weighted average cost-of-capit...

AI summary The text discusses the inclusion of the cost-of-capital in construction work in progress through the allowance for funds used during construction (AFUDC). This cost is added to the asset's value and recovered over time through depreciation and future revenues, ensuring equitable recovery of financing costs.

POLICY - 02 Purchase price discrepancies should be recorded as assets. - 03 Purchase price discrepancies are not included in rate base1 Pl e a s e r e f e r t o N S PI A c c o u n ti n g P ol i c y a n d P r o c e d u r e s M a n u al 1 5...

AI summary The text discusses the treatment of purchase price discrepancies, stating they should be recorded as assets but are not included in the rate base. It directs readers to the Nova Scotia Power Inc. Accounting Policy and Procedures Manual for further details.

POLICY Redundant assets should be retired from property, plant and equipment and, therefore, excluded from rate base 1 .

AI summary The document suggests that redundant assets should be removed from property, plant, and equipment to ensure they are not included in the rate base.

GENERAL - 01 When an asset no longer provides a benefit, and is not expected to provide any benefit in the future, its undepreciated cost should be written off in the period that it is recognized as being neither used nor useful. In determ...

AI summary The text discusses the accounting treatment of assets, including when to write off undepreciated costs, how to handle unused but available assets, and the treatment of asset transfers. It emphasizes considerations like future removal costs and the importance of maintaining the asset's value in the rate base.

NOT USED AND NOT USEFUL - 06 Assets meeting the following criteria are included in this category: - a. they do not currently provide service to the consuming public; and - b. they are not expected to provide a benefit to customers in the f...

AI summary The document outlines criteria for writing off assets that no longer provide service or future benefit to customers. It suggests amortizing significant write-offs over five years with UARB approval to enhance rate stability, allowing unamortized costs to remain in the rate base.

NOT USED BUT USEFUL FOR STANDBY PURPOSES - 09 Assets meeting the following criteria are included in this category: - a they do not currently provide service to the consuming public; and - b. they are available for service and are required...

AI summary The document outlines the treatment of standby assets in rate base calculations. These assets, though not currently in use, are included in the rate base and depreciated over their expected useful life. Their undepreciated cost is recognized as an expense in the period incurred.

NOT USED BUT USEFUL FOR FUTURE USE - 12 Assets meeting the following criteria are included in this category: - a. they do not currently provide service to the consuming public; and - b. they are expected to be used and useful in providing...

AI summary The text outlines accounting treatment for assets not currently in service but expected to be used in the future. It discusses depreciation deferral, cost recovery, and the handling of excess costs and mothballing expenses, with reference to regulatory approval by the UARB.

POLICY 03 Common equity, defined as common shares and retained earnings, should be used to maintain an overall capital structure that is within the range(s) approved by the Nova Scotia Utility and Review Board ("UARB"). - 04 The UARB defin...

AI summary The document outlines the use of common equity in maintaining the approved capital structure as defined by the Nova Scotia Utility and Review Board. Common shares and retained earnings are emphasized, with specific reference to the recording of share capital transactions in general ledger account 750.

POLICY 02 Retained earnings should be sufficient to maintain the Company's overall capital structure within the ranges prescribed by the Nova Scotia Utility and Review Board ("UARB"). 1 1 Please refer to NSPI Accounting Policy and Procedur...

AI summary The text states that retained earnings should be sufficient to maintain the Company's overall capital structure within the ranges prescribed by the Nova Scotia Utility and Review Board (UARB).

ACCOUNTS PAYABLE AND ACCRUED CHARGES - 8220

AI summary The document discusses accounts payable and accrued charges related to Nova Scotia Power Inc. and other entities, highlighting financial obligations and accounting standards relevant to the regulatory proceeding.

Via Email: [email protected] Mr. Eric Ferguson Director, Regulatory Affairs Nova Scotia Power Inc. 14th Floor, Barrington Tower P. O. Box 910, Scotia Square Halifax, NS B3J 2W5 Dear Mr. Ferguson: Nova Scotia Power Inc. - Accounting...

AI summary Nova Scotia Power Inc. submitted a compliance filing for its Accounting Policy and Procedures Manual, which the Board reviewed and identified several discrepancies. The Board accepts some changes but requests revisions to specific sections, particularly regarding terminology and tolerance levels, and seeks further comments from NSPI before issuing an order.

DEFINITION - 01 Rate base is comprised of the net value of certain assets upon which Nova Scotia Power Inc. ("NSPI") can earn a specified rate of return. The rate base and rate of return are approved by the Nova Scotia Utility and Review B...

AI summary The rate base is defined as the net value of assets upon which NSPI can earn a specified rate of return, approved by the UARB under the Public Utilities Act. The UARB periodically reviews both the rate base and the allowed rate of return.

POLICIES - 03 The components of rate base should include: - a. Cost (gross historical cost less capital contributions) less accumulated depreciation of used and useful plant in service; - b. Construction Work-in-Progress; - c. Allowance fo...

AI summary The document outlines policies for determining the rate base, including components such as used and useful plant, construction work-in-progress, and deferred charges, while excluding certain items like excess purchase prices and assets held for future use without UARB approval.

POLICIES - 02 NSPI files with the UARB its actual regulated return on equity and regulated average common equity ratio annually. - 03 The annual regulated return on equity is calculated by dividing the regulated net earnings for the curren...

AI summary NSPI annually files its regulated return on equity and average common equity ratio with the UARB. These metrics are calculated using regulated financial statements, with equity defined as common shares plus regulated retained earnings, excluding preferred shares and AOCI.

FINANCIAL RECORDS -1580

AI summary The document contains a financial record related to Nova Scotia Power Inc., referencing accounting standards and the Nova Scotia Utility and Review Board. It includes financial data, possibly related to regulatory proceedings or compliance.

STATEMENT OF CASH FLOW - 2100 - g. the payment of dividends on common shares; and - h. cash and cash equivalents.

AI summary This section of the Statement of Cash Flow outlines items related to the payment of dividends on common shares and the reporting of cash and cash equivalents.

POLICIES - 05 Pension obligations and obligations associated with non-pension post-retirement benefits such as health benefits to retirees and retirement awards, are actuarially determined using the projected benefit method prorated on ser...

AI summary The text outlines the accounting policies related to pension obligations and post-retirement benefits for Nova Scotia Power Inc. It discusses how these obligations are actuarially determined, adjustments are amortized, and how pension fund assets are valued. It also mentions the adoption of US accounting standards and the recognition of plan surpluses and deficits.

ACCOUNT STRUCTURE - 3100

AI summary This section discusses the account structure related to Nova Scotia Power Inc. (NSPI) and includes references to accounting standards and systems used for financial reporting.

INTRODUCTION - 01 The Chart of Accounts is updated on a regular basis and posted on the Nova Scotia Power Inc. ("NSPI") intranet. It is filed with the Nova Scotia Utility and Review Board ("UARB") annually. - 02 The Chart of Accounts is in...

AI summary The document discusses the Chart of Accounts used by Nova Scotia Power Inc., which is regularly updated and filed with the Nova Scotia Utility and Review Board annually. It serves as a reference for segment definitions and valid values.

Services 25 Includes the installed cost of overhead or underground conductors leading from the point where the wires leave the last pole or manhole to the point where it is connected to the customer's service entrance.

AI summary The text defines the scope of 'Services' as including the installed cost of overhead or underground conductors from the point where wires leave the last pole or manhole to the customer's service entrance.

Non-utility 36 Includes the installed cost of all intangible assets that are part of the Company's long-term investment to provide service to the rate payers that is not substantiated by a physical asset as well as the installed cost of al...

AI summary The text defines 'non-utility' as including the installed cost of intangible assets and property not directly used for electric service to consumers, which are part of the Company's long-term investment to provide service to rate payers.

GENERAL - 01 Overhead expenses are integral costs associated with the construction of capital assets. As per NSPl's Accounting Policy & Procedures Manual Section 6100 - Cost, the cost of a capital asset not only includes direct constructio...

AI summary Overhead expenses are essential in capital asset construction and must be allocated to capital projects. Common allocation methods include machine hours, labour hours, and direct labour costs. The Nova Scotia Utility and Review Board has historically approved the use of direct labour costs for overhead allocation.

POLICY - 02 Purchase price discrepancies should be recorded as assets. - 03 Purchase price discrepancies are not included in rate base1. 1 Please refer to NSPI Accounting Policy and Procedures Manual 1520 for details.

AI summary The text discusses the treatment of purchase price discrepancies, stating they should be recorded as assets but are not included in the rate base. A reference is made to the NSPI Accounting Policy and Procedures Manual 1520 for further details.

POLICY 02 Redundant assets should be retired from property, plant and equipment and, therefore, excluded from rate base 1 .

AI summary The text suggests that redundant assets should be removed from property, plant, and equipment and excluded from the rate base, implying a need for asset management and optimization in the utility sector.

GENERAL - 01 When an asset no longer provides a benefit, and is not expected to provide any benefit in the future, its undepreciated cost should be written off in the period that it is recognized as being neither used nor useful. In determ...

AI summary The text outlines principles for writing off and depreciating assets, emphasizing that unused assets with future utility should not be charged against current earnings, while those no longer providing benefit should be written off considering future costs and proceeds. Transfers between categories occur at book value, with gains or losses included in the rate base.

NOT USED AND NOT USEFUL - 06 Assets meeting the following criteria are included in this category: - a. they do not currently provide service to the consuming public; and - b. they are not expected to provide a benefit to customers in the f...

AI summary Assets that are not currently providing service or expected to benefit customers in the future should be written off. However, if the write-off is significant and approved by the Nova Scotia Utility and Review Board (UARB), the cost can be amortized over five years or a reasonable period, with unamortized costs remaining in the rate base and capital costs expensed as incurred.

NOT USED BUT USEFUL FOR STANDBY PURPOSES - 09 Assets meeting the following criteria are included in this category: - a they do not currently provide service to the consuming public; and - b. they are available for service and are required...

AI summary The text discusses the treatment of standby assets in regulatory proceedings, stating that such assets, even if not currently in use, must be depreciated over their expected useful life and included in the rate base. This ensures that the cost of capital is recognized as an expense when incurred.

NOT USED BUT USEFUL FOR FUTURE USE - 12 Assets meeting the following criteria are included in this category: - a. they do not currently provide service to the consuming public; and - b. they are expected to be used and useful in providing...

AI summary This section discusses the treatment of assets not currently in service but expected to be used in the future. It outlines how costs should be matched to future periods, the handling of excess costs, and the deferral and amortization of depreciation until the assets are returned to service.

ASSETS - NOT USED AND USEFUL - 6350 - 16 No cost of capital (neither return nor interest) is to be capitalized on the existing cost base during the out of service period. Any related cost of capital is to be recovered from customers and ex...

AI summary The text outlines the treatment of costs related to assets that are out of service, specifying that no cost of capital should be capitalized during this period. Maintenance and mothballing costs are to be expensed, with potential deferral and recovery over five years with UARB approval.

POLICY 03 Common equity, defined as common shares and retained earnings, should be used to maintain an overall capital structure that is within the range(s) approved by the Nova Scotia Utility and Review Board ("UARB"). - 04 The UARB defin...

AI summary The document outlines that common equity, including common shares and retained earnings, should be used to maintain a capital structure within the range approved by the Nova Scotia Utility and Review Board. The UARB sets the maximum common equity percentage, and share capital issuance is recorded in general ledger account 750 - Common Shares.