Topic:"Rate Base" in M06733

4.5.3 Establishment of an ENS Reserve Fund for DSM Expenses As a result of the recent legislative changes, EfficiencyOne, as the ENS franchise holder, assumes all financial risk associated with the delivery of DSM in Nova Scotia. As a stan...

AI summary EfficiencyOne, as the ENS franchise holder, assumes financial risk for DSM in Nova Scotia. A reserve fund is proposed to ensure financial stability, using operating surplus balances and governed by a reserve fund policy, without shifting responsibility for monitoring UARB-approved investment levels.

- Legislative or regulatory risk, which includes the risk associated with the introduction of new acts or changes to existing acts leading to loss of energy savings potential within approved price structures. This would also include the in...

AI summary The text discusses various risks associated with energy efficiency programs, including legislative, technological, economic, and operational risks. It also outlines ENS's proposal to establish a reserve fund under the new DSM administration model, with contributions from surplus balances and a 50% limit on fund contributions.

Assumptions used in ENS's 2016-2018 Rate and Bill Impact Analysis Stakeholder Stakeholder Comment ENSC's Response Inclusion in the model outcome of the IRP. The Industrial Group believes that these are appropriate.

AI summary The Industrial Group supports the assumptions used in ENS's 2016-2018 Rate and Bill Impact Analysis, particularly those related to the outcome of the Integrated Resource Plan (IRP).

1 PROGRAM DESCRIPTION Home Energy Report (HER) helps Nova Scotian households reduce their energy consumption by changing their behaviours. More specifically, HER compares participating households' energy usage with similar neighbouring hom...

AI summary The Home Energy Report (HER) is a program designed to help Nova Scotian households reduce energy consumption through behavior changes. It compares energy usage with similar homes and provides personalized tips. The program is delivered through a tripartite agreement between Efficiency Nova Scotia Corporation, Opower, and Nova Scotia Power. Funding comes partly from rate-payers and partly from tax-payers, with specific savings targets set for 2014.

NON-CONFIDENTIAL 1 Response IR-19: 2 3 EfficiencyOne asserts this IR, which is requesting individual, customer-specific details, engages 4 issues of relevance and confidentiality. 5 6 The individualized detail sought by NSPI in this IR is...

AI summary EfficiencyOne argues that NSPI's request for individual customer details is irrelevant and confidential, as the UARB's focus is on approving a DSM supply agreement. Aggregate data has already been provided, and retrieving individual data would be overly burdensome.

NSPI IR-42 Attachment 2 Page 9 of 67 Range structure projections by geography 4% 2015 projections 2014 projections National 3% average 1.7% 2.3% 2.4% 2.1% 2.1% 2.0% 2.0% 2.0% 2% 1.8% 1.8% 1.8% % Increase 1.5% 1.5% 1.5% 1.5% 1.4% 1.2% 1% 0%...

AI summary The text presents range structure projections by geography, comparing 2015 and 2014 projections across different regions, including national averages and specific percentages for various sub-sectors and geographies. It includes compensation elements, job levels, and revenue considerations.

42 Nova Scotia 2015 DSM Plan M06247 Decision BC Hydro Business Structure Crown Corporation DSM Funding Mechanism Deferred for future rate recovery Planned DSM Savings R, 16% I, 52% Population Served 4,631,302 Year DSM Started 1989, 200844...

AI summary The 2015 DSM Plan by BC Hydro outlines funding mechanisms, savings goals, and customer participation across residential, commercial, and industrial sectors. It includes deferred rate recovery, savings targets, and various programs such as refrigerators buy-back, lighting incentives, and smart meter infrastructure.

2016-2018 DSM Plan (NSUARB M06733) NSPI Responses to Consumer Advocate Information Requests 1 Request IR-32: 2 3 Regarding NS Power Evidence, page 44: Please provide the basis for the statement that 4 "RBIM did not recognize the revenue in...

AI summary The Consumer Advocate requested NSPI to explain how revenue increases to offset fixed cost losses from DSM initiatives should be modeled in bill impact and Partial Revenue Requirements. NSPI responded that base rates recover fixed costs, but a decrease in energy sales between rate resets creates a revenue shortfall, increasing NS Power's costs. They also stated that Partial Revenue Requirements do not account for fixed cost recoveries.

NON-CONFIDENTIAL 1 2 NS Power manages the regulated common equity percentages within the UARB 3 approved band. The equity percentage can fluctuate within this band based on the 4 financing needs of the Company and the timing of financing e...

AI summary NS Power manages the regulated common equity percentages within the UARB approved band, which can fluctuate based on the Company's financing needs and the timing of financing events.

2016-2018 DSM Plan (NSUARB M06733) NSPI Responses to EfficiencyOne Information Requests 1 Request IR-3: 2 3 Reference: On page 14 of its Evidence, lines 16-17, NS Power mentions "the objective of 4 lowering costs for customers" 5 6 Please...

AI summary NS Power explains that in its evidence, the term 'costs' refers to increased rates customers may face if more DSM is procured than needed or is affordable. It clarifies that this does not include long-term cost reductions from efficiency measures. NS Power also notes that DSM spending adds to rate pressure, especially with the amortization of past DSM expenditures.

19 Comparison of Planning NPV Low DSM and Mid DSM Cases Low DSM CRP Mid DSM/FGD Difference (with Half-Low PA Costs) (Synapse Model) Planning NPV $M 10,774 10,623 151 20

AI summary This section compares the Planning Net Present Value (NPV) of Low DSM and Mid DSM cases, showing a difference of $151 million. The Low DSM case includes half-low PA costs, while the Mid DSM case uses the Synapse Model.

5 Amount ($K) Unit Cost ($/MWh) Relative Share Fixed Cost $829,119,139 $84.50 65% Fuel costs $448,026,861 $45.66 35% Total $1,277,146,000 $130.16 100% Load (MWh) 9,811,994 6

AI summary The text presents a breakdown of costs, showing fixed costs and fuel costs with their respective amounts, unit costs, and relative shares. Total costs amount to approximately $1.277 billion, with fixed costs making up 65% and fuel costs 35%.

1 Request IR-5: 4 p.55 of 64, with respect to such future costs, please provide: 5 6 (a) Detail of how NSPI covers future severance, pension and retirement obligations. 7 8 (b) The total revenue collected through rates, by NSPI, in the pas...

AI summary The document includes a request for details on how NSPI covers future pension, retirement, and capital obligations, as well as the revenue collected through rates related to these obligations. It also asks how NSPI's approach differs from E1's and what would happen if E1's franchise is terminated. A response outlines that future costs are accrued under GAAP and included in revenue requirements.

3.5.1 Program Development [56] El's 2016-2018 DSM Resource Plan, as modified by the Quantum Agreement, recommends DSM investments for the three year period of: - (1) $36.9 million in 2016, - (2) $37.8 million in 2017, - (3) $38.8 million i...

AI summary El's 2016-2018 DSM Resource Plan, modified by the Quantum Agreement, recommends a total of $113.5 million in DSM investments over three years. El justifies this plan by comparing it to the Mid-DSM level plan and notes that it is consistent with past expenditures and within the $53 million allocated for DSM in 2014, which was repurposed for 2015 fuel expenses.

This Plan has been modified to comply with the Utility and Review Board (UARB)'s August 12, 2015 Decision, which set annual DSM investment amounts of $33.21 million, 1 million million $34.02 and $34.92 for 2016, 2017, and 2018 respectively...

AI summary This document outlines modifications to a DSM Plan in compliance with the UARB's 2015 decision, setting annual investment amounts of $33.21 million, $34.02 million, and $34.92 million for 2016, 2017, and 2018, respectively. It details ENS's proposed programs and strategies for achieving energy and demand savings targets.

he $53 million that was in rates for DSM in 2014 and which amount was subsequently repurposed by Order of the Board for 2015 fuel expenses. It expanded on these points in its post-hearing submission: - It is $69 million, or 38 percent. les...

AI summary The document discusses the repurposing of a $53 million DSM rate allocation from 2014 for 2015 fuel expenses, and how the proposed DSM investment level balances short and long-term affordability. It emphasizes the cost-effectiveness of the Mid-DSM scenario in the IRP and contrasts the proposed plan with NS Power's alternative, which relies heavily on energy savings from the BNI sector.

66 67 3 The 2017 payments owing by NSPI will be reduced to reflect any 2015 under-spending by EfficiencyOne, if any, against the 2015 UARB-approved DSM Resource Plan, together with any 2014 Balance Adjustment interest earned in 2015. 4 The...

AI summary The text outlines adjustments to payments owed by Nova Scotia Power Incorporated (NSPI) for 2017 and 2018, based on under-spending by EfficiencyOne in 2015 and interest earned from the 2014 Balance Adjustment in 2015 and 2016, respectively.

- specifically, $38.5 million in 2016; $40.3 million in 2017; and $42.6 million in 2018. As well, - EfficiencyOne is proposing a three year contracted deliverable of cumulative energy and peak demand - savings. - Furthermore, EfficiencyOne...

AI summary EfficiencyOne is proposing a three-year DSM plan with cumulative energy and peak demand savings, regular reporting to the UARB and DSM Advisory Group, and a reserve fund to cover financial risks. They also request a change in cost-effectiveness testing methodology from TRC to PAC.

- UARB Decision[6](#page-13-1) - On August 12, 2015, the UARB submitted its decision. A summary of the UARB's findings is as - follows: - The UARB did not approve the Quantum Agreement; however, it does approve an aggregate spending of $10...

AI summary The UARB approved an aggregate spending of $102.2 million for the EfficiencyOne DSM Plan, a 10% reduction from the Quantum Agreement. It also approved the Consensus Agreement, referring matters to the DSM Advisory Group and requiring EfficiencyOne to submit recommendations on incentive programs by March 31, 2016.

Summary of E1's proposed DSM plan 2016-2018 2 E1's proposed plan calls for an investment of $121.5 million over a three year period – specifically, $38.5 million in 2016; $40.3 million in 2017; and $42.6 million in 2018. As well, E1 is pro...

AI summary E1's proposed DSM plan for 2016-2018 includes a three-year investment of $121.5 million, with regular reporting to the UARB and DSM Advisory Group. E1 is requesting a reserve fund to cover financial risks and a change in cost-effectiveness testing methodology from TRC to PAC.

Partner Troy is an advisory services partner based in our Toronto office, specializing in Corporate Finance and Infrastructure.

AI summary Troy is an advisory services partner based in Toronto, specializing in Corporate Finance and Infrastructure. The text provides background on Troy's professional role and expertise within the firm.

Experience Troy is our firm's national leader for corporate finance. He specializes in advising public and private sector clients on implementing transactions and debt and equity financing solutions in both domestic and international marke...

AI summary Troy is a national leader in corporate finance, specializing in power and infrastructure projects. Previously with Grant Thornton UK LLP, he advises on public and private sector transactions and is a member of Grant Thornton LLP's Partnership Board.

Partner Kevin is an advisory services partner based in our Halifax office, specializing in Corporate Finance.

AI summary Kevin is an advisory services partner based in Halifax, specializing in Corporate Finance. The text highlights his role within the organization and his area of expertise.

Experience Kevin has over 22 years' experience providing financial advisory services to clients through his experience in public accounting, commercial banking and corporate finance. Kevin is our firm's Atlantic Canadian leader for corpora...

AI summary Kevin has over 22 years of experience in financial advisory services, corporate finance, and mergers and acquisitions. He leads the firm's Atlantic Canadian corporate finance practice, specializes in debt advisory and capital structuring, and is part of the Nova Scotia business unit Management Committee.

Industry experience Kevin has led or been involved in numerous financing, transaction and due diligence advisory assignments across a number of industry sectors including healthcare, wholesale, manufacturing, distribution, agriculture, tel...

AI summary Kevin has extensive experience in corporate finance, including advising on syndicated debt structures, divestitures, management buyouts, and due diligence across multiple sectors such as construction, healthcare, and energy. His work spans financial institutions, public companies, and private enterprises in Atlantic Canada and beyond.

James R. Gogan Direct Dial: (902) 563-5920 E-Mail: [email protected] File No. 41736-18 November 13, 2015 Nova Scotia Utility & Review Board PO Box 1692, Unit "M" Halifax, Nova Scotia B3J 3S3 Attention: Doreen Friis, Regulatory Affairs...

AI summary EfficiencyOne submitted a Grant Thornton report on financing Demand Side Management (DSM) to the Nova Scotia Utility and Review Board. The Board had previously raised concerns about DSM financing during hearings, including impacts of commercial lending and deferral costs. The Board directed EfficiencyOne to explore cost-effective financing options outside NSPI's rate base following stakeholder input.

ember 13, 2015 In its decision in this matter, the Board recognized the concerns raised by various stakeholders and directed EfficiencyOne to explore more cost effective avenues to finance deferrals: [91] The DOE raised the issue of deferr...

AI summary The Board directed EfficiencyOne to explore cheaper financing options for DSM deferrals, noting the high cost of NSPI's rate base (7.78%) compared to bank financing (3%). EfficiencyOne engaged Grant Thornton to research financing methods, with results due by November 16, 2015. The Board emphasized the need for cost-effective solutions, while EfficiencyOne highlighted potential external financing with NS Power's backstopping.