HomeRate BaseM03413Evidence
Topic/Matter Intersection

Topic:"Rate Base" in M03413

Matter: CI# 39323; CI# 39626; CI# 39627; & CI# 39628 - P-128.10 - NSPI WO - (Digby Wind Project) Application for approval of capital work orders  in the amount of $82.8 million for the acquisition, construction and interconnection of the Digby Wind Farm Project
32 passages 11 documents

Rate Base across all matters →

N-1Application 2 passages
- 28 rate base thereby preserving the renewable energy from the Project for customers. p. p. 17
- 28 rate base thereby preserving the renewable energy from the Project for customers. 1 2 NSPI's completion of the Digby project will mean that all but one of the projects selected in the 3 2007 renewables energy solicitation are targeted...

AI summary NSPI's completion of the Digby project will allow most of the projects from the 2007 renewables energy solicitation to be in-service by 2010. The project, which includes renewable energy generation, will provide cost savings for customers and qualify for inclusion in the 2013 RES portfolio. NSPI requests a decision on the application by December 20, 2010.

Conclusion p. pp. 59-62
Conclusion NSP! seeks to confirm that the UARB has no objection to NSP! continuing with project construction, pending the Capital Work Order review and approval process and before receiving a Board decision on the Capital Work Order Applic...

AI summary NSP! requests UARB's confirmation to proceed with the Digby project construction pending Capital Work Order approval. Customers will not bear costs unless the UARB approves the Capital Work Order Application. The Affiliate Code of Conduct applies due to the affiliate transaction, and NSP! offers to provide additional information if needed.

N-3-(b)Redacted NSPI Response to UARB IR-12 (att 7-10) to IR-17 5 passages
Section 2345 p. p. 3
- .1 stantial completion of the work. - .2 (6) months following delivery to the Place of the Installation. - .2 Owner, through the Engineer, shall promptly give the Vendor notice in writing of observed defects and deficiencies that occur d...

AI summary The text outlines warranty obligations and factory test requirements for electrical equipment, including procedures for reporting defects, correcting issues, and assigning warranties. It also specifies testing standards for circuit breakers, current transformers, and bushings.

Section 2453 p. p. 3
- .2 CSA Standards - .1 C156.1, Ceramic and Glass Station Post Insulators - .2 G164, Hot Dipped Galvanized or Irregularly Shaped Articles - .3 W59, Welded Steel Construction (metal-ark welding) - .3 NEMA Standards - .1 Std. SG-6, Power Swi...

AI summary This document outlines the standards and submittal requirements for electrical components, including CSA, NEMA, ANSI/IEEE, and ISO standards, as well as specifications for operation and maintenance data and manufacturer drawings for disconnect switches.

1.9 Connection Transformer(s) p. pp. 80-81
2.1 The overall assembly enclosure(s) shall provide protection from ingress of rodents, insects, and moisture; and the possibility of arcing faults within the enclosure. - 1.12.2 The material for all external sides of the enclosure and int...

AI summary The document outlines technical specifications for the assembly enclosures, including protection against environmental factors, material requirements, grounding provisions, environmental control, and fire suppression capabilities.

9 IN-PLANT INSPECTION AND TESTING p. pp. 110-111
9 IN-PLANT INSPECTION AND TESTING - 9.1 The Owner, Purchaser, Engineer, and/or their authorized agents shall have the privilege of inspecting and witnessing all testing at all times during the manufacture of the equipment or materials orde...

AI summary This section outlines the requirements for in-plant inspection and testing during equipment manufacturing, including the right to inspect, advance notice requirements, and the submission of test results to the Engineer.

Section 3458 p. p. 160
- .8 Formwork: - .1 Forms: to CSA-A23.1, plywood and lumber, clean and free of loose knots, splits or metal. - .2 Form Ties: to CSA-A23.1, removable or snap-off metal ties, fixed or adjustable length. Form ties, tie wire, spacers or other...

AI summary The text outlines specifications for formwork and concrete mix, referencing various Canadian standards and testing methods. It details requirements for materials such as form ties, release agents, and curing compounds, as well as specifications for concrete mix proportions and air content.

N-8Order of the Board dated February 24, 2009 regarding NSPI Revised Code of Conduct 1 passage
Objectives
Objectives To maintain a capital structure for NSPI which is in accordance with applicable Board decisions.

AI summary The objective is to maintain a capital structure for Nova Scotia Power Inc. that aligns with applicable decisions made by the Nova Scotia Utility and Review Board.

06537Board Decision 7 passages
Preamble p. p. 0
just and reasonable. RS., c. 380, s. 52 - [3] NSPI is a regulated public utility and is the successor to Nova Scotia Power Corporation, a Crown Corporation which was privatized in 1992. As of January 1, 1999, NSPI became the principal subs...

AI summary NSPI, a regulated public utility and subsidiary of Emera, must file for Board approval of capital expenditures over $250,000 to include them in its rate base. The Board aims to improve transparency and public comment on capital work orders, with examples like Nuttby Mountain and Water Street, by initiating consultations through hearings or written submissions.

II BACKGROUND p. p. 0
ect of a rigorous review by the Board and interested parties. Directions on procedure will be issued when the capital work order is filed with the Board. [NSUARB letter to NSPI, April 23, 2010, p. 2] [10] As earlier noted, on July 23, 2010...

AI summary NSPI submitted an application for approval of $82.8 million in capital expenditures for the DWP project. The Board determined that a public hearing was necessary due to the project's cost and involvement in an affiliate transaction. The hearing process and timeline were established following the Board's review.

Findings p. p. 0
separate legal entity from NSPI, correct? A: Yes. Q: Beyond that though, as I understand it, it was a shell company without employees? A: Yes, this is common structure for doing this kind of work. Q: It had no other assets? A: Yes. Q: You...

AI summary The document discusses the structure of 324 NSL as a separate legal entity from NSPI, confirming it was a shell company with no employees or other assets beyond those related to the project. Emera Inc. provided the necessary funding for the project, and the entity was used to ensure the project's continuation within the regulated entity framework.

1. NSPI acted in the best interest of customers in taking assignment of the EUS contract. p. p. 0
1. NSPI acted in the best interest of customers in taking assignment of the EUS contract. As part of its due diligence in considering an assignment of the EPC contract in April of 2010, NSPI requested that 324 NSL engage CBCL to prepare a...

AI summary NSPI argues that taking assignment of the EUS contract was in the best interest of customers, as the EUS price was lower than competitive tenders and met fair market value criteria. The EUS contract was reassessed after the project scope was updated, and NSPI asserts that the price was reasonable and compliant with the Code of Conduct.

[90] Avon questioned the evidence put forward by NSPI, stating: p. p. 0
[90] Avon questioned the evidence put forward by NSPI, stating: Even looking at the pricing comparators offered by NSPI ex post-facto, the evidence is slim that this is the "best option" for customers. To justify the value of the EUS contr...

AI summary Avon questioned the evidence provided by NSPI regarding the EUS contract, arguing that the pricing comparators were insufficient to prove it was the best option for customers. Avon highlighted that the bids did not account for certain cost reductions and that the affiliate had an advantage not available to other bidders. Quetta Inc. supported the project and the contract awarded to EUS.

Findings p. p. 0
ob, that's what I try to do every day and that's what we're trying to do here. We're trying to put this project in service in a way that brings the best value to customers. [Transcript, pp. 183-190] [98] While the Board is prepared to appr...

AI summary The Board approves capital expenditures but disapproves a $1 million affiliate bonus payment to EUS, reducing the rate base by that amount. Fees paid to EES are considered justifiable despite concerns about RES compliance and PPA preservation.

Findings p. p. 0
Findings [137] The Board has reviewed all the information provided and finds that NSPI customers will benefit by including the Project in the rate base. However, the amount to be included in the rate base requires reduction. The Board unde...

AI summary The Board has approved the DWP project with a reduced cost of $79.8 million, noting that the project is in the best interest of ratepayers compared to the PPA. The Board also encourages NSPI to provide energy output data in the FAM filing and acknowledges the economic analysis showing the project's superiority if expected energy output is achieved.

04888Letter enclosing Application 1 passage
Appendix 4 – Asset Purchase Agreement p. p. 0
Appendix 4 – Asset Purchase Agreement Partial redaction has been made to the Asset Purchase Agreement where reference is made to a commercial term of the PPA and the Promissory Note. The information is protected from public disclosure by a...

AI summary This document discusses the partial redaction of a commercial term in an Asset Purchase Agreement involving NSPI. The redaction is necessary to protect confidential information, ensuring NSPI can maintain competitive power purchase terms and safeguard customer rates, which are cost-based.

06128Closing Submission - Avon Group 1 passage
CODE OF CONDUCT
EUS contract would be CBCL's re-scoped engineering estimate given that the bids are not an apples to apples comparison. The variance between the engineering estimate and the EUS contract is marginal. Is the EUS contract a "reasonable" deal...

AI summary The Avon Group argues that the EUS contract with NSPI is not the best available option due to preferential treatment of the affiliate and lack of competitive bidding. They recommend disallowing a $1.5 million contingency allowance and reducing the contingency allowance to match the bids, as the project came in under budget.

06132Closing Submission - NSPI 3 passages
1 1.0 APPROVAL OF THE PROJECT, AS FILED, IS APPROPRIATE
1 1.0 APPROVAL OF THE PROJECT, AS FILED, IS APPROPRIATE 2 3 On behalf of customers, NSPI has worked diligently and in the interests of customers to 4 comply with the RES by relying on the significant effort and resources of its affiliates...

AI summary NSPI seeks approval to include a renewable energy project in the utility rate base, arguing that it was completed on time and under budget with significant value provided to customers. The application is supported by evidence and testimony, with no opposing evidence presented.

1 2 see these things done and I wanted to see them done well for our customers and that's why I'm here.
1 Transcript, page 183, line 4 – page 190, line 22. 1 2 see these things done and I wanted to see them done well for our customers and that's why I'm here. 3 4 So do I think it's the best deal? I absolutely think it's the best deal and I 5...

AI summary The speaker affirms that the deal reached is the best possible under the circumstances and emphasizes the importance of transparency and acting in the best interests of customers. Concerns about affiliate transactions and ensuring expenditures benefit ratepayers are highlighted.

10 Exhibit N-8, NSPI Revised Code of Conduct governing Affiliate Transactions, as approved by UARB order dated February 24, 2009, section 7.6.
10 Exhibit N-8, NSPI Revised Code of Conduct governing Affiliate Transactions, as approved by UARB order dated February 24, 2009, section 7.6. PPA between NSPI and 324 NSL (as assignee of SkyPower Corp.) License to Use Assets and Option Ag...

AI summary The document references Exhibit N-8, the NSPI Revised Code of Conduct for Affiliate Transactions, approved by the UARB in 2009. It outlines an affiliate transaction involving a PPA between NSPI and 324 NSL, as well as a transmission line construction project. The transaction triggers Section 6.10 of the Code of Conduct, and NSPI notified the UARB of its intention to file a capital work order for the project.

06133Closing Submission - NSDOE 2 passages
NSPl's APPLICATION
NSPl's APPLICATION - 2. Pursuant to s. 35 ofthe Public Utilities Act, NSPI seeks the UARB's approval to include in its rate base, four capital work orders which constitute the Project, with a combined forecast cost of $82.8 million. - 3. I...

AI summary NSPI is requesting the UARB's approval to include four capital work orders in its rate base, with a combined forecast cost of $82.8 million. The application also includes affiliated transactions governed by a Code of Conduct. The project is expected to add 30 MW of wind generation, generate 110 GWh annually, and provide cost savings to customers.

SUBMISSIONS
SUBMISSIONS 5. The Digby Wind Project provides a significant contribution to the RES obligation ofNSPI and is anticipated to provide good value for ratepayers. NSDOE submits the DARB's hearing and procedures have provided an opportunity fo...

AI summary The Digby Wind Project is highlighted as a significant contribution to NSPI's RES obligation and is expected to provide value for ratepayers. NSDOE supports the DARB's hearing process and anticipates the decision will be fair and reasonable for ratepayers.

06135Closing Submission - Consumer Advocate 1 passage
ApPLICABILITY OF THE CODE
ApPLICABILITY OF THE CODE There is no disagreement that the construction contract awarded to EUS, including the payment of the bonus, must meet the standards set by the Code in order for the cost to be included in rate base and ultimately...

AI summary The document discusses the requirement that the construction contract awarded to EUS, including a bonus, must meet the standards of the Code to be included in rate base and recovered from ratepayers. The Code mandates that affiliate transactions benefit customers and require sound analysis. NSPI has not adequately demonstrated this, and the process lacked transparency.

06180Rebuttal Submission - NSPI 4 passages
3 On January 14, 2011, Nova Scotia Power Inc. (NSPI, the Company) and the intervenors 4 filed their closing submissions in this proceeding. 6 On behalf of customers, NSPI has worked diligently and in the interests of customers to
3 On January 14, 2011, Nova Scotia Power Inc. (NSPI, the Company) and the intervenors 4 filed their closing submissions in this proceeding. 6 On behalf of customers, NSPI has worked diligently and in the interests of customers to 7 comply...

AI summary Nova Scotia Power Inc. (NSPI) and intervenors submitted closing arguments supporting the inclusion of the Digby Wind Project in the utility rate base. NSPI asserts the project was completed on time and under budget, with no opposing evidence challenging its value. All intervenors support approval of the capital work order.

Date Filed: January 21, 2011 Page 2 of 15
Date Filed: January 21, 2011 Page 2 of 15 1 aspects of NSPI's request for approval be denied. NSPI's reply to the arguments raised 2 by the Avon Group and the Consumer Advocate is set out below in this submission. 3 4 2.0 FACTUAL CORRECTIO...

AI summary NSPI disputes a statement made by the Consumer Advocate regarding the recovery of costs from ratepayers. NSPI argues that the costs incurred through the two-step acquisition process were prudent and cost-effective, and that no additional costs were passed on to customers. NSPI's position is based on its response during the hearing.

Preamble
rvice to Nova Scotia 35 Power, not a service out of charity but a service out of good 36 business and necessity. It saw a need for Nova Scotia Power to 37 have a mechanism for compliance with the RES. 39 Our company operates in compliance...

AI summary The text discusses the importance of compliance with the Renewable Electricity Standard (RES) by Nova Scotia Power and Emera's involvement in ensuring that compliance. It emphasizes the need for the Board to base its decision on sworn testimony and evidence provided by NSPI, rather than casual summaries. The Consumer Advocate highlights that costs from construction contracts must meet Code standards to be included in the rate base and recovered from ratepayers.

1 3. The regulatory process includes a final costing.
1 3. The regulatory process includes a final costing. 2 3 The Avon Group has referred to a contingency amount found in the revised CBCL 4 engineering estimate. The Avon Group states, on page 6, that given construction has 5 come in under b...

AI summary The Avon Group requests disallowance of $1.5 million from the CBCL engineering estimate, but NSPI argues that CBCL's estimate is not part of its capital costs. NSPI emphasizes that contingency planning is prudent and that the final costing will be filed with the UARB for approval, reflecting actual incurred costs.

06537Board Decision 5 passages
Preamble p. p. 0
just and reasonable. RS., c. 380, s. 52 - [3] NSPI is a regulated public utility and is the successor to Nova Scotia Power Corporation, a Crown Corporation which was privatized in 1992. As of January 1, 1999, NSPI became the principal subs...

AI summary NSPI, a regulated public utility and successor to a privatized Crown Corporation, is required to seek Board approval for capital expenditures over $250,000. These expenditures are included in the rate base, which influences the rates charged to customers. The Board has implemented procedural changes to increase transparency and public comment on capital work orders.

II BACKGROUND p. p. 0
II BACKGROUND [8] On April 16, 2010, NSPI filed a letter with the Board requesting that: NSPI seeks to confirm that the UARB has no objection to NSPI continuing with project construction, pending the Capital Work Order review and approval...

AI summary In 2010, NSPI requested the Board's confirmation to proceed with the Digby project construction before the Capital Work Order review. The Board responded, referencing a previous case, stating it had no objection to NSPI undertaking advance expenditures at shareholders' risk, provided the affiliate transaction with 3240384 Nova Scotia Limited would be rigorously reviewed.

Findings p. p. 0
separate legal entity from NSPI, correct? A: Yes. Q: Beyond that though, as I understand it, it was a shell company without employees? A: Yes, this is common structure for doing this kind of work. Q: It had no other assets? A: Yes. Q: You...

AI summary The transcript discusses the structure of a company (324 NSL) that was a shell entity with no employees or other assets beyond those related to a specific project acquired during bankruptcy. Emera Inc. provided the necessary funds for the project, and the company was used to keep the project moving forward as part of a broader policy within the regulated entity.

[90] Avon questioned the evidence put forward by NSPI, stating: p. p. 0
[90] Avon questioned the evidence put forward by NSPI, stating: Even looking at the pricing comparators offered by NSPI ex post-facto, the evidence is slim that this is the "best option" for customers. To justify the value of the EUS contr...

AI summary Avon questions the evidence provided by NSPI regarding the EUS contract, arguing that the comparison between the CBCL estimate and the EUS price is not an apples-to-apples comparison and that the contract may not be the best available option due to lack of competitive bidding and preferential treatment of an affiliate.

Findings p. p. 0
Findings [137] The Board has reviewed all the information provided and finds that NSPI customers will benefit by including the Project in the rate base. However, the amount to be included in the rate base requires reduction. The Board unde...

AI summary The Board has reviewed the DWP project and found that including it in the rate base benefits NSPI customers, though the amount requires reduction. The Project is deemed favorable compared to the PPA when considering revised construction costs, O&M savings, and higher energy output. The Board also notes that the economic analysis does not account for infrastructure benefits beyond a 20-year horizon.

Disclaimer: These summaries were generated by AI from the filings they describe. We take care to make them accurate, but errors are possible - and they aren't advice. Only the filings themselves are the record: if you're relying on something here, confirm it against the source documents or the Nova Scotia Energy Board's own record. Full disclaimer →