N-92026-2027 GRA Appendix 12 A-C - Cost of Service Study Process - Redacted
112 passages
Cost of Service Study Redacted 1 percent demand, consistent with NS Power's proposals regarding other transmission. This 2 proposed treatment does not have an immediate impact on the outcomes of the COSS, as this 3 category of asset does n...
AI summary The proposed treatment of the NB Intertie Application does not immediately impact the Cost of Service Study (COSS) as the asset is not currently in NS Power's rate base. The project is expected to be managed by a new entity outside NS Power, with rate base impacts contained within that entity. The NB Intertie is not expected to be operational until 2028, and future reviews may be required.
(WACC) and transmission rate base.
AI summary The text refers to the Weighted Average Cost of Capital (WACC) and transmission rate base, which are key financial and regulatory considerations in utility rate-making processes.
2 3 NS Power is proposing that the treatment of General Plant be refined to more consistently allocate 4 General Plant with a clear and identifiable function. General Plant that is found to have a strong 5 relationship with a category, wil...
AI summary NS Power proposes refining the allocation of General Plant to better reflect its function, focusing on projects over one million dollars. A 'dual allocation' approach is suggested for certain costs, such as vehicle expenses, which would be split between transmission and distribution using allocators like OM&G and rate base.
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 1 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Exhibit Reference Cells Modification 7. No Primary Secondary Sub functionalization Exh 3c C14:F14 Combine Primary/Secondary classificati...
AI summary The document outlines modifications to various exhibits and input data in the context of a cost of service study. Changes include combining primary/secondary classification factors, allocating services on the same basis as meters, and replacing weighting factors with '1' for each class. These adjustments aim to standardize classifications and allocations for the General Rate Application.
1 Request for COSS Model Runs: Run # NSP Position Model Run Description 1 Yes NSP's positions in aggregate. This model includes the changes from model runs #2-5 below. 2 Yes New Intermediate Generation sub-function classified to demand and...
AI summary The document outlines a request for Cost of Service Study (COSS) model runs to evaluate various NSP positions, including the classification of generation and transmission, and the inclusion of specific rate classes and allocation methods.
6 COSS Model Run #3, Transmission Classified as 100% Demand: - 7 The classification of a portion of Transmission as Energy is removed so all rate base and costs are - 8 classified as 100% Demand. The sections of the COSS that allocate Ener...
AI summary In COSS Model Run #3, Transmission is reclassified as 100% Demand, removing its classification as Energy. This adjustment zeros out sections of the COSS that allocate Energy-related Transmission to rate classes to avoid cell reference errors.
9 Details of the changes mate in each model are provided below. Exhibit Reference Cells Modification 1. NSP Positions All changes in models 2-5 (Some models require new rows so reference cells in the combined model may be a few cells lower...
AI summary This section outlines changes made in various models, particularly focusing on the classification of intermediate generation and adjustments to transmission demand. Specific cells and exhibits are referenced for modifications, including the splitting of intermediate generation from steam and the removal of further classifications in transmission demand.
CONFIDENTIAL Exh 3 D179:M221 Allocations of transmission energy plant zeroed-out (avoid #DIV/0!) Exh 5 D64:E83 Demand expenses formulae revised to receive full classification, energy formulae revised to receive no classification Exh 6 D172...
AI summary The document outlines adjustments to allocation formulas and data inputs in various files, including zeroing out certain energy plant and transmission expenses to avoid errors, and updating values with outputs from the BCF file. It also involves moving volumes and allocations to the ATL class and assigning interruptible credit to PHP.
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 14 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475)
AI summary This document refers to the Cost of Service Study Process as part of the NSUARB M11475 proceeding. It outlines the methodology and considerations involved in conducting a cost of service study, which is a key component in determining appropriate rates for utility services.
CONFIDENTIAL - 1 classes that used to reduce the Profit/Loss allocated to ATL classes (Exh 4 Detail cell H184). In - 2 models 1, 4, and 11 the mismatch as attributed to the new rate class. 3 - 4 COSS Model Run #1, NSP Positions: - 5 This m...
AI summary The text discusses changes in profit/loss allocation for ATL classes and references COSS Model Run #1 and #2, which include NSP's positions and a new intermediate generation sub-function. It outlines adjustments to intermediate generation capacity factors and the classification of Tufts Cove and Lingan units.
CONFIDENTIAL 1 COSS Model Run #3, Transmission Classified as 100% Demand: 2 The classification of a portion of Transmission as Energy is removed so all rate base and costs are 3 classified as 100% Demand. The sections of the COSS that allo...
AI summary The document outlines various COSS model runs that adjust the classification and allocation of costs related to transmission, grid-scale storage, and distribution. These changes include reclassifying transmission as 100% demand, separating PHP as a class, and adjusting allocators for EHV and HV subfunctions.
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 17 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475)
AI summary This document refers to the Cost of Service Study Process as part of the NSUARB M11475 proceeding, indicating it is related to the analysis of costs associated with utility services in Nova Scotia.
2026-2027 GRA Direct Evidence Appendix 12A(1) Page 19 of 46 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Cost of Service Study Process (NSUARB M11475)
AI summary The document refers to the Cost of Service Study Process under NSUARB M11475, which is part of the 2026-2027 General Rate Application (GRA) Direct Evidence Appendix 12A(1). The study is likely related to analyzing the costs associated with service delivery for regulatory proceedings.
17 Details of the changes mate in each model are provided below. Exhibit Reference Cells Modification 1. NSP Positions All changes in models 2-5 (Some models require new rows so reference cells in the combined model may be a few cells lowe...
AI summary The document outlines changes made to models 2-5 by NSP, specifically focusing on the separation of intermediate generation from steam and the application of capacity factors to Tufts Cove and Lingan. Reference cells and exhibits are provided to highlight these modifications.
THEORY UNDERPINNING THE MINIMUM SYSTEM STUDY - Dr. Pavlovic claims that the Minimum Size Method has no theoretical, practical or empirical basis to - classify a portion of the distribution system cost as customer-related.[1](#page-59-0) Th...
AI summary Dr. Pavlovic argues that the Minimum Size Method (MSS) lacks theoretical, practical, or empirical support for classifying distribution system costs as customer-related. This contradicts industry practice and NARUC endorsement, as well as findings by Concentric showing widespread use of MSS by Canadian utilities.
Figure 2: Relationship between Feeder Length and Customers by Geography Figure 2 illustrates that geographic dispersion of the customers and where they are located and not their peak demand drives the length of the feeder. As stated previo...
AI summary Figure 2 shows how geographic dispersion of customers affects feeder length. Professor Bonbright prefers classifying minimum-sized distribution costs as customer-related. The Ontario Energy Board (OEB) uses customer density to determine the customer component of distribution assets, with 60% classified as customer-related for densities under 30 customers per kM of lines. NS Power, with low customer density, would fall into this category.
CONCENTRIC EVIDENCE: GRA COSS ELEMENTS 1 NSPI uses the "minimum-size method" to classify the customer costs. This method of defining 2 customer costs was approved by the Board in 1977 as an acceptable method of classifying 3 distribution p...
AI summary NSPI employs the 'minimum-size method' to classify customer costs, a method approved by the Board in 1977 for classifying distribution plant. This approach is discussed in the context of conclusions from a Minimum System Study.
POLES SUB-FUNCTIONALIZATION - Secondary customers do not pay twice when combination poles are allocated between - primary and secondary. - The Resource Insight evidence asserts that Concentric's treatment of combination poles (i.e., poles...
AI summary The document discusses the allocation of costs for combination poles in the sub-functionalization study, clarifying that secondary customers are not double-charged. Concentric Energy Advisors explains that the allocation is based on unit costs, ensuring costs are appropriately distributed between primary and secondary functions.
Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests 1 In determining capital investment by functions, NS Power follows the FERC Uniform System of 2 Accounts supported by more detailed accounting activities at a...
AI summary NS Power explains its method for tracking capital investments in substations, noting challenges with hybrid and bulk power substations. It uses a pooled asset methodology and re-functionalizes investment records to align with industry principles for cost of service studies.
NON-CONFIDENTIAL 1 Request DR-18: 2 - 3 Please provide NS Power's transmission substation investment by transmission voltage. If 4 not available, please provide typical costs for substation transformers of the sizes and - 5 voltages used b...
AI summary NS Power does not track transmission substation investment by voltage due to pooled asset accounting. Instead, historical data would be required to estimate the rate base value associated with transmission substations by voltage. The response includes estimated transformer costs based on recent purchases.
COSS CA DR-27 Attachment 1 Page 9 of 9 Name Section Title 4 class, differentiating among (1) customer-classified distribution costs (poles and conductors), 5 (2) customer-classified line transformers, and (3) other customer-classified cost...
AI summary The document requests detailed information on customer-classified distribution costs, including line transformers, hookups, and meter-related expenses, by customer class and year, with specific attention to residential classifications and cost classification accuracy.
10 Capital Recovery Rate Net Salvage Rate Depreciation Rate 4100 - Overhead Transformers 3.41 0.68 4.09 4400 - Substation Transformers 1.22 0.06 1.28 4800 - Underground Transformers 3.41 0.68 4.09 5100 - Meters 6.87 0 6.87 PARTIALLY CONFID...
AI summary The table presents capital recovery, net salvage, and depreciation rates for various transformer and meter categories, including overhead transformers, substation transformers, underground transformers, and meters. These rates are part of a partially confidential appendix in a regulatory proceeding.
20 Ending Balance, Net Regulated Plant In-Service ($ millions) Functional Class Depreciation Asset Pool 2023 2022 2021 2020 2019 Distribution Plant - D Poles, Towers and Fixtures 321 299 272 260 249 Transmission Plant - T Poles and Fixture...
AI summary The table presents the ending balance of net regulated plant in-service across different functional classes and years, highlighting changes in distribution and transmission plant values from 2019 to 2023. The data is part of a partially confidential GRA Direct Evidence Appendix.
NON-CONFIDENTIAL 1 Request DR-38: 2 3 Please identify how NS Power allocates land, easements, survey, and other similar costs and 4 explain the reasoning for this choice. 5 6 (a) For land/easements, please provide any available data (i.e.,...
AI summary NS Power explains that land, easements, and survey costs are allocated based on the relative shares of demand and customer services of the combined investment in substations and poles and wires. These costs account for 11% of total distribution plant investment and are classified 47.3% to Demand and 52.7% to Customer. This method has been used for many years and is considered complementary to the operation of substations and power lines.
2.12 REFUNDS OF CAPITAL CONTRIBUTIONS Line/Service Extensions Less Than 184m Customers will be provided with 92 metres of line/service extension at no cost, as provided for under Regulation 2.6. Any line/service extensions in excess of 92...
AI summary The regulation outlines the policy for refunds of capital contributions for line/service extensions less than 184m. Customers receive 92m free, with additional extensions and connections subject to customer costs. Refunds are provided to contributors based on the number of additional customers connected within ten years, minus an administration fee.
2013 Cost of Service Study NSPI Responses to Consumer Advocate Data Requests 1 Request IR-74: 2 3 Regarding the responses to DR CA-2 and CA-6, please provide the following 4 documentation of the load inputs to the 2014 COSS, or to the most...
AI summary The document outlines NSPI's response to a data request regarding the 2014 Cost of Service Study (COSS), focusing on the allocation of line losses to different rate classes based on historical patterns and adjustments to ensure accurate annual energy profiles. A detailed spreadsheet for one month (February 2013) was provided as a sample.
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 797 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2022-2024 GRA SR-01 Attachment 1a Page 7 of 12 COSS CA DR-53 Attachment 1 Page 7 of 62 Rate Base Exhibits 2,...
AI summary This document outlines the methodology used in the Nova Scotia Power Cost of Service Study for the 2022-2024 period, including the allocation of rate base to customer classes. It references the 2005 NSUARB decision and includes exhibits detailing net plant investment, allocation factors based on demand, energy sales, and customer numbers.
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 799 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2022-2024 GRA SR-01 Attachment 1a Page 9 of 12 COSS CA DR-53 Attachment 1 Page 9 of 62 various rate base func...
AI summary The document outlines the methodology for allocating meter investment and other rate base items based on cost causation relationships, as well as the functionalization of operating costs into production, transmission, distribution, retail, and direct assignment categories for the Nova Scotia Power Cost of Service Study.
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 800 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2022-2024 GRA SR-01 Attachment 1a Page 10 of 12 COSS CA DR-53 Attachment 1 Page 10 of 62 Nova Scotia Power Co...
AI summary The document outlines the methodology for the Nova Scotia Power Cost of Service Study, including the classification and allocation of expenses into demand, energy, and customer categories. It details how various costs, such as distribution, service, and communication expenses, are allocated based on factors like rate base, meter investment, and customer numbers.
1. Generation Related Transmission Assets Direct Assignment Facilities are generation-related transmission assets (GRTA) that serve the function of connecting generation units to the shared Transmission System. They consist of generator st...
AI summary Generation-related transmission assets (GRTA), including transformers and transmission lines, connect generation units to the Transmission System. Revenue requirements for these assets are recovered directly from generation owners, not through the transmission tariff rate.
Nova Scotia Power Open Access Transmission Update February 2022 1 OATT Schedule 9 provides the System Average Loss Factor for Network Integration Service, 2 which is applied to the net demand of the eligible customer. This factor is update...
AI summary The document outlines Nova Scotia Power's Open Access Transmission Update for February 2022, including the System Average Loss Factor for Network Integration Service and the development of transmission revenue requirement, which includes depreciation, interest, return on equity, taxes, operating costs, and fixed cost deferral.
2 The total value of average depreciable transmission assets in 2022 is $1,139.5 million ($1,371.3 3 million minus $87.3 million for deferred charges, materials inventory and net receivables, minus 4 $131.6 million for General Property, mi...
AI summary The document provides details on the value of depreciable transmission assets for 2022, 2023, and 2024, along with the depreciation charges calculated for each year. It also mentions the forecasted Return on Equity (ROE) and the Weighted Average Cost of Capital (WACC) adjusted for taxes.
1 Nova Scotia Power Inc. 2023 Transmission Tariff WACC Rate Millions of dollars 1) Interest (Carrying Cost) a) Weighted Average Cost of Capital - Pretax Proportion Cost Extended ST Debt 1.70% 0.90% 0.02% LT Debt 57.00% 4.97% 2.83% Common 4...
AI summary The document presents Nova Scotia Power Inc.'s 2023 Transmission Tariff WACC Rate, detailing the weighted average cost of capital, interest, tax considerations, and financial figures related to transmission costs and grants in lieu of property tax.
Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests
AI summary This document outlines Nova Scotia Power Inc.'s responses to data requests from the Cost of Service Study process, which is part of the NSUARB M11475 proceeding.
10 Below-the-line (BTL) rate classes 11 12 Since the BTL rate classes of GRLF, 1P-RTP, Shore Power, BUTU, EBS, and SS do not participate 13 in DSM Programs they have not been included in the Rate and Bill Impact Analysis filed in the 14 DS...
AI summary The BTL rate classes of GRLF, 1P-RTP, Shore Power, BUTU, EBS, and SS do not participate in DSM programs and were not included in the Rate and Bill Impact Analysis. Their system cost benefit treatment may remain unchanged, as their share of assigned DSM costs in 2025 was below 0.5 percent.
Resource Cost, Performance, & Financing Performance Inputs Financing Capital Cost $55,903,798 $55,903,798 $55,903,798 $55,903,798 $55,903,798 $55,903,798 $55,903,798 $55,903,798 $55,903,798 $55,903,798 $55,903,798 Starting Rate Base $55,90...
AI summary The document presents a detailed financial breakdown of resource costs, performance, and financing, including capital costs, rate base balances, debt, interest, principal, and equity returns over a multi-year period. It outlines changes in rate base values, accumulated depreciation, and financial obligations related to debt and equity.
COSS IG DR-10 Attachment 1 Page 5 of 6 Year 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Debt Term Flag 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Capital Cost $55,903,798 $55,903,798 $55,903,798 $55,903,798 $55,903,798 $55,903,798 $5...
AI summary The document presents a financial table detailing capital costs, rate base balances, accumulated depreciation, and debt balances over a multi-year period. It outlines financial metrics for a regulatory proceeding, likely related to utility or infrastructure planning.
Cost of Service Study Process (NSUARB M11475) NSPI Responses to PHP Data Requests
AI summary This document outlines NSPI's responses to data requests related to the Cost of Service Study Process under NSUARB M11475, focusing on PHP (Peak Hour Pricing) data.
Cost of Service Study Process (NSUARB M11475) NSPI Responses to PHP Data Requests 1 Response DR-12: 2 3 (a-d) Please refer to Confidential Attachment 7 for the summary of cost increases by rate class 4 under the four scenarios requested. P...
AI summary NSPI provides responses to PHP data requests regarding the Cost of Service Study Process (NSUARB M11475), detailing cost increases by rate class and referencing confidential attachments with 2023 calculations. The discussion includes modeling assumptions and adjustments to system coincident demands for PHP compared to ELIADC.
NON-CONFIDENTIAL 1 Request DR-19: 2 3 Please provide a detailed description of the current functionalization, allocation, and 4 classification of the Maritime Link in the current COSS. 5 6 Response DR-19: 7 8 The Maritime Link (ML) imports...
AI summary The response to DR-19 explains that the Maritime Link imports are divided into firm, capacity-backed energy, and non-firm Surplus Energy. Import costs are functionalized to Generation and classified based on system load factors and energy demand. Allocation methods are detailed, with demand costs distributed according to coincident contribution to system peaks and energy costs based on annual or monthly energy requirements.
Cost of Service Classification of the Maritime Link Strawman Report 1 The Company also proposed that the Nova Scotia Block be treated in the same manner as NS 2 Power-owned hydro generation. This means that its costs would be classified to...
AI summary The document discusses the proposed cost of service classification for the Nova Scotia Block, suggesting it be treated similarly to NS Power-owned hydro generation. Energy and demand costs would be allocated based on system load factors and coincident system peaks, aligning with NS Power's COSS practices.
Cost of Service Classification of the Maritime Link Strawman Report - from the UARB's 2013 COS decision regarding this matter.[11](#page-180-0) 1 In its 2013 COS Decision, the - 2 UARB supported NS Power's proposed treatment of wind purcha...
AI summary The 2013 Cost of Service (COS) decision by the UARB supported NS Power's treatment of wind purchases and biomass generation, but explicitly excluded the Maritime Link cost allocation from consideration. No proposals were made regarding this matter during the proceeding.
Cost of Service Study Process (NSUARB M11475) NSPI Responses to SBA Data Requests 1 (M10431) and shared carrying cost and taxes are functionalized and allocated to customer 2 classes using the COSS model provided as SR-01 Att 03 PCON UPDAT...
AI summary The document discusses the Cost of Service Study (COSS) process as part of the NSUARB M11475 proceeding, with NSPI providing responses to data requests from the SBA. The COSS model is referenced in the context of allocating shared carrying costs and taxes to customer classes.
NON-CONFIDENTIAL - 1 Lines, are classified to demand and customer as determined in Exh 3c, Exh 3e, and Exh 3g. Please - 2 refer to section "3. Distribution system sub-functionalization and classification" of the evidence - 3 filed by Conce...
AI summary The document discusses the classification of various infrastructure investments into demand and customer categories, based on evidence provided in the 2023-2024 GRA. Specific classifications include poles and wires, substations, and streetlights, with references to attachments and exhibits for detailed breakdowns.
MEMORANDUM TO: Nova Scotia Power, Inc. FROM: Bickey Rimal, Concentric Energy Advisors DATE: January 2022 RE: GRA Allocated Cost of Service and Miscellaneous Charges Matters The purpose of this memorandum is to provide the results of: - Con...
AI summary This memorandum from Concentric Energy Advisors to Nova Scotia Power Inc. reviews the company's allocated class cost of service (CCOS) model, concluding that it is reasonable, follows industry-accepted methodology, and produces accurate results. The model uses a three-step process: cost functionalization, classification, and allocation, which are described in detail.
2. Review of certain deferred matters from 2013 COSS Proceeding When NS Power updated its COSS as a part of the compliance filing after the NSUARB issued its decision on the 2013 COSS Proceeding, several items were slated for further revie...
AI summary The document reviews deferred matters from the 2013 COSS Proceeding, including the classification of Lingan Units 1 and 2 as base load units and the treatment of miscellaneous revenues. NS Power continues to treat the units as base load due to their operational limitations and provides a report on the allocation of miscellaneous revenues, which is deemed reasonable.
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1149 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) COSS SBA DR-4 Attachment 1 Page 4 of 7 Concentric first calculated the replacement costs of all poles at eac...
AI summary Concentric calculated the replacement costs of poles and conductors in feeder sections by voltage level, allocating costs between primary and secondary based on cost ratios. This approach was applied to both overhead and underground conductors using data provided by the Company.
NON-CONFIDENTIAL 1 Request DR-5: 2 3 Verify the amount of assets and annual revenue requirement associated with Maritime Link 4 related NS Power transmission, distinguishing NS Power owned transmission. 5 6 Response DR-5: 7 8 NSPML is a se...
AI summary The response to Request DR-5 clarifies that Maritime Link (NSPML) is a separate legal entity from NS Power, and its transmission costs are recovered under the ML agreement. NS Power does not include these assets in its rate base until criteria set by the Board are met. The non-regulated net book value of the transmission assets was $37.5 million as of December 31, 2023.
COSS SBA DR-6 Attachment 1 Page 4 of 24 171050 LT DIT ASSET LIABILITY FAM 172050 LT DERIV ASSET HFT 172350 LT DERIV ASSET HFT TREASURY 173050 DEFERRED PENSION RETIREE BENEFIT 180050 LT REG ASSET UNAMORT DEFEASANCE COSTS 180450 LT REG ASSET...
AI summary The document presents a list of long-term assets and liabilities, including deferred pension benefits, regulatory deferrals, and various financial instruments, as part of a regulatory proceeding related to cost of capital and other studies.
1.0 GENERAL DESCRIPTION This document describes the plan for administering Nova Scotia Power Inc.'s (NS Power) Fuel Adjustment Mechanism (FAM), which was approved by the Nova Scotia Utility and Review Board (Board) in its decision letter i...
AI summary This document outlines the administration plan for Nova Scotia Power Inc.'s Fuel Adjustment Mechanism (FAM), approved by the Nova Scotia Utility and Review Board in 2008. It explains how the Base Cost of Fuel is calculated, reset, and adjusted, with stakeholder opportunities for challenge and audit processes in place.
PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1185 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) COSS SBA DR-7 Attachment 1 Page 6 of 33 FAM POA Main Document (Redline) – Revision 11 / February 2023
AI summary This document is a redlined revision of the FAM POA Main Document from February 2023, part of the 2026-2027 GRA Direct Evidence Appendix 12A(2). It includes the COSS SBA DR-7 Attachment 1 and is part of a partially confidential regulatory proceeding.
3.2 Allowable Fuel and Purchased-Power Costs This section of the POA provides a framework for the fuel and purchased-power costs eligible for recovery through the FAM. Those costs will include allowable fuel expenses plus purchased-power e...
AI summary This section of the Plan of Administration outlines the framework for allowable fuel and purchased-power costs recoverable through the Fuel Adjustment Mechanism. It includes normal, recurring, non-capital expenses, discrepancies supported by surveys, and exceptional costs reviewed by the Small Working Group. These costs are subject to audit and approval by the Nova Scotia Utility and Review Board.
5.0 AUDIT AND OVERSIGHT The amounts charged through the FAM shall be subject to periodic audit to assure completeness and accuracy and to assure fuel and purchased power costs were incurred reasonably and prudently. The results of any audi...
AI summary The Fuel Adjustment Mechanism (FAM) is subject to periodic audits to ensure accuracy and prudence in fuel and purchased power costs. Audit results will be considered in subsequent FAM hearings, potentially leading to adjustments in the Base Cost of Fuel or Fuel Adjustment Factor, or a General Rate Case, as requested by NS Power or stakeholders.
The GRA Decision provided as follows: [361] In this proceeding, several concerns were raised about NS Power's cost of service methodologies applied in this GRA. These concerns included the use of the minimum system study for the classifica...
AI summary The GRA Decision addresses concerns about NS Power's cost of service methodologies, including the use of the minimum system study and LF/3CP method for cost classification. The Board agrees to update the COSS and Line Loss Study to reflect recent system developments and directs semi-annual progress reports starting in 2024.
Agenda - 1. Introduction and Project Description - 2. Generic Background on Cost Allocation Methodologies - 3. NS Power's Existing COSS Methodology - 4. Effect of Transitional and Technological Changes on COSS - 5. Survey - 6. Next Steps
AI summary The agenda outlines the topics to be discussed in a regulatory proceeding, including an introduction, background on cost allocation methodologies, NS Power's existing cost of service study (COSS) methodology, the impact of transitional and technological changes on COSS, a survey, and next steps.
Purpose of the January 18th Session (Kick-off) - Canvass stakeholders to determine the parts of NS Power's COSS methodology that need to be explained in greater detail in future tech sessions. Future technical sessions will assist stakehol...
AI summary The January 18th session aims to engage stakeholders in reviewing NS Power's Cost of Service Study (COSS) methodology, identify areas requiring updates due to developments since 2013, and determine the implications of proposed changes on allocated costs. The session will also establish a timeline for future discussions.
Functionalization (Standard for Electric Utilities) - Group similar assets and expenses - GenerationStations with many sub‐functions - PowerPurchases, Fuel, DSM and Storage - TransmissionLines: differentiated by voltage, towers, wires, etc...
AI summary The document outlines a standard for functionalization in electric utilities, emphasizing grouping similar assets and expenses. It includes categories like Generation Stations, Power Purchases, Fuel, DSM, Storage, Transmission Lines, and Distribution Lines, each with specific sub-functions and cost considerations.
Functionalization - > Approach very standardized in the electricity industry - > NS Power's functions are consistent with industry standard definitions - ➤ Main functions include generation, transmission, distribution and retail - > Costs...
AI summary The document discusses the functionalization approach used by NS Power in the electricity industry, aligning with standard definitions. It outlines main functions such as generation, transmission, distribution, and retail, and explains that costs are assigned to these functions based on the utility's system of accounts. Some allocation between functions is required, such as between transmission and distribution substation costs.
NS Power's Generation Method - ➤ NS Power uses the System Coincident Load Factor to determine energy-related and capacity-related generation costs, though there are differences among types of generation - > Energy-related generation costs:...
AI summary NS Power determines energy and capacity-related generation costs using the System Coincident Load Factor. Energy-related costs are allocated based on energy (MWh), while demand-related costs are allocated using three winter month peaks and annual class peaks for distribution costs.
Agenda - 1. Introduction and Project Description - 2. Generic Background on Cost Allocation Methodologies - 3. NS Power's Existing COSS Methodology - 4. Effect of Transitional and Technological Changes on COSS - 5. Survey - 6. Next Steps
AI summary The agenda outlines the topics to be discussed in a proceeding, including the introduction of a project, background on cost allocation methodologies, NS Power's existing cost of service study methodology, effects of transitional and technological changes on the methodology, a survey, and next steps.
Transmission Classification to Demand Table 7: Classification of transmission costs to demand Percent Classified as demand Number of Utilities Percent of Utilities 90 - 100 7 63 70 - 90 0 0 50 - 70 0 0 35 - 50 2 18 NA 2 18 Totals 11 \ Nova...
AI summary The document presents a table classifying the percentage of transmission costs attributed to demand by various utilities. Nova Scotia Power is noted as being in the 35-50% range, while other utilities are categorized into different ranges, with 63% of utilities falling into the 90-100% range.
COSS : Rate Base vs Revenue Requirement. The books and records of the Company, save dedicated facilities, are not kept at a rate class level, so class level costs must be developed.
AI summary The document discusses the challenge of determining class-level costs for the Company, as its books and records are not maintained at a rate class level, necessitating the development of such costs.
Rate base Total value of the utility's plant and equipment, regulatory assets, materials and supplies, working capital, et c.
AI summary The text defines the rate base as the total value of a utility's plant and equipment, regulatory assets, materials and supplies, and working capital. It is accompanied by an image reference.
NS Power's COS Spreadsheet Calculation Process - Data Input Collection: Input Data, Input Data Two - Class Usage: Exh 9a 9c - o Usage based allocator factors in Exh 8a - Rate Base apportionment to rate classes - o Functionalization: Exh 2...
AI summary This document outlines NS Power's Cost of Service (COS) spreadsheet calculation process, including data input collection, class usage, rate base apportionment, cost apportionment, and cost summaries. Exhibits and external sources are referenced for methodology and analysis.
1995 COS Generic Hearing (NSPI864) - Classification of generation and transmission should reflect the intent of the asset: - o All generation costs associated with environmental compliance and fuel conversion to be classified as energy-rel...
AI summary The document discusses the classification of generation and transmission costs, emphasizing the need to align them with the intent of the assets. It suggests that environmental compliance and fuel conversion costs should be energy-related, while fixed costs of Steam and Hydro generation and transmission should be based on annual system load factor. The Equivalent Peaker method was rejected due to inconsistent calculations, and transmission is treated as an extension of generation. Fuel costs are to be allocated on a monthly basis to reflect seasonality.
2013 COS Generic Hearing (M05473) - Upheld status quo regarding the most significant elements of the 1995 COS design - SLF-based classification and 3CP Allocation of non-fuel costs of base load generation and transmission was favored over...
AI summary The 2013 COS Generic Hearing (M05473) upheld the 1995 COS design's core elements, including SLF-based classification and 3CP allocation, but noted pending decisions on distribution costs. Adjustments were made to better align with cost causation and asset utilization, including sub-functionalizing purchased power costs and using a formulaic approach for billing and call center costs.
COS Generic Hearing (M05473) - Deferred Projects No Project Status 6 Line Loss Determination model The Company is in the process of hiring a consultant to conduct a review of its line loss model the results of which should be available for...
AI summary The document outlines various deferred projects related to the COS Generic Hearing (M05473), including a review of line loss models, allocation of miscellaneous revenues and overhead costs, and the review of transformer loss adjustments. These projects are in various stages, with some reports already filed and incorporated into current regulations.
Non-fuel generation cost classification in COS - Generation rate base, broken down by types of generation, is initially classified to demand with the exception of investments for environmental or fuel economy reasons, which are classified...
AI summary The document outlines the classification of non-fuel generation costs within the Cost of Service (COS) framework. It details how generation rate base is classified to demand or energy based on factors like System Load Factor (SLF), Effective Load Carrying Capability (ELCC), and other apportionment methods. Wind, Steam, Hydro, and Natural Gas Turbines are specifically addressed in their classification.
Fuel-related cost classification in COS - Purchased Power costs are treated in the same manner as costs of corresponding NSPI-owned types of generation. - Wind generation purchase costs is classified to energy and demand based on the ELCC....
AI summary The document outlines how various fuel-related costs are classified within the Cost of Service (COS) framework. Purchased power, wind generation, and biomass costs are categorized based on factors like Energy Loss from Congestion (ELCC), Service Level Factor (SLF), and annual cost budgets. Fuel and Imports costs, including the Maritime Link (ML) Surplus, are classified solely to energy.
Why is Transmission classified on SLF? On pages 20 and 23 of its 1995 COS Decision (NSPI864) the UARB provided as follows. Regarding transmission line rate-base assets, it is the Board's opinion that these assets cannot be totally separate...
AI summary The UARB classified transmission costs based on energy and demand factors, stating that transmission cannot be fully separated from generation. Energy-related costs are determined by the annual system load factor, while remaining costs are classified as demand-related.
Purpose of Minimum System Study - The Minimum System Study is used in the COSS for the classification of distribution costs between customer-related and demand-related. - The need to classify distribution costs is described in NARUC Electr...
AI summary The Minimum System Study is used in the COSS to classify distribution costs between customer-related and demand-related. This classification is based on the NARUC Electric Utility Cost Allocation Manual, which emphasizes that distribution costs are driven by both reaching customers and maintaining capacity to meet peak demands.
COSS Model - ➢ The COSS Model functionalizes, classifies, and allocates NSP's rate base and operating expenses to rate classes - ➢ A main input into the COSS is the Base Cost Fuel ("BCF") file. When there is a change to generation classifi...
AI summary The COSS Model is used to functionalize, classify, and allocate NSP's rate base and operating expenses to rate classes. It relies on the Base Cost Fuel file and includes multiple input data tabs and exhibits for detailed analysis.
COSS Model Exhibit Purpose 1 Summary of Existing and Proposed Revenue to Expense Ratio Ratios 2 Rate Base Functionalization & Classification 3 Rate Base Allocation 4 Operating Expense Functionalization 5 Operating Expense Classification 6...
AI summary The COSS Model is being analyzed through various runs, with specific changes to classifications and allocations of expenses and revenue. Key changes include the classification of PHP as a separate rate class, grid-scale storage by ELCC factor, and adjustments to transmission and generation classifications.
Overview of COSS Model Runs - ➤ We will begin with the model runs with less complex modifications and move toward the more complex models and NSP's Positions - ➤ Each COSS model includes a Summary tab that provides rate base and costs by f...
AI summary The document outlines the approach to reviewing COSS model runs, starting with less complex modifications and moving to more complex ones, with a focus on NSP's positions. Each model includes a Summary tab showing rate base and costs by function and classification, along with variance data and changes in the Revenue to Expense Ratio.
6. Sub-functionalize Transmission into EHV and HV - ➢ Purpose: Analyse the impact of removing the allocation of HV Transmission costs to EHV-connected customers. - ➢ Model Notes: The COSS already separates Transmission into EHV and HV, but...
AI summary This section discusses the purpose and model notes of sub-functionalizing transmission into EHV and HV. It explains that the COSS model separates transmission into EHV and HV, but uses the same loads for allocators. Adjusting the HV allocator by removing EHV-connected customers shifts cost responsibility from EHV to remaining classes.
2. New Intermediate Generation Sub-function Classified to Demand and Energy by Weighted-Average Capacity Factor - ➢ Purpose: Identify "Intermediate Generation" assets and costs and classify by the weighted-average capacity factor instead o...
AI summary This section discusses the classification of 'Intermediate Generation' assets, specifically Tufts Cove units 1, 2, and 3, using a weighted-average capacity factor instead of the Steam Load Factor (SLF). This change results in a shift of classified costs from energy to demand, with a relatively small overall impact due to the 10% contribution of intermediate generation to total steam generation.
4. PHP as a Separate ATL Rate Class - > Purpose: Move PHP from a BTL rate class to a new interruptible ATL rate class. - ➤ Model Notes: This model is the same as PHP DR-12 part a). Loads are shifted from the BTL rate class to ATL rate clas...
AI summary The proposal to move PHP from a BTL rate class to a new interruptible ATL rate class is discussed. This change would affect the SLF calculation and increase the share of costs allocated by energy. NS Power supports the creation of a separate class if service is moved to ATL from BTL, but has not determined its position on PHP's assumed demand level.
Transmission Revenue Requirement: Depreciation Calc (in millions of $'s) OATT Gross Plant Value WACC Amount Transmission $1,228.3 Less Distr-related Invest. ($229.8) Non-depreciable land ($12.9) Subtotal $985.7 X 2.39% = $23.5 Transmission...
AI summary The document presents a depreciation calculation for transmission revenue requirement under OATT, comparing figures from the Cost of Service Study (COSS) and the accounting system. It highlights a differential of $8 million between the two methods, attributed to the formulaic approach under OATT versus accounting costs under COSS.
OATT Net Plant Value Share Applicable Value Transmission $833.8 Plus Applicable Share of General Property $444.6 20.4% $90.9 Working Capital $648.7 20.4% $132.6 Total $1,057.2 NPV WACC Interest $1,057.2 2.84% $30.06 Common $1,057.2 3.72% $...
AI summary The document discusses the calculation of Net Plant Value (NPV) and its components, including Transmission, General Property, Working Capital, and their applicable shares. It highlights a difference in interest tax returns due to the use of a formulaic approach under OATT versus functionalization based on shares in the service area rate base.
COSS Net Plant Value System NPV Transmission NPV Amount Cumulative Applicable Share Amount Cumulative % Share in System Cumulative Service Areas $4,079.5 $4,079.5 $833.8 $833.8 General Property $444.6 $4,524.1 20.4% $90.86 $924.7 20.4% Wor...
AI summary The text presents a table detailing Net Plant Value, System NPV, and Transmission NPV, including figures for Service Areas, General Property, Working Capital, and Operating Expenses. It also includes expense allocations such as Interest, Common, Income Tax, Grants in Lieu, and Misc Rev Credit, along with their respective shares and amounts.
are treated as follows: - Functionalized among the four service areas of generation, transmission, distribution (according to the portion of total rate base each function represents), and retail, - Classified to all services of energy, dem...
AI summary The text outlines how costs are allocated across different service areas and rate classes, ensuring that each function's share of the rate base is appropriately reflected in classifications and apportionments.
3. Review of Treatment of General Plant During discussion in the COSS Stakeholder Engagement Session 2, held on February 22, 2024, intervenors noted that when looking at the COSS, General Plant costs had grown significantly. Intervenors we...
AI summary The document discusses the treatment of General Plant in the Cost of Service Study (COSS), noting significant growth in General Plant costs. General Plant includes NS Power's investments in facilities, vehicles, and IT infrastructure, with its Net Book Value (NBV) tracked separately and apportioned among generation, transmission, and distribution service areas for rate base and depreciation purposes.
The table below depicts the Company's net book value of the General Plant depreciation pools at December 31, 2011 and December 31, 2023. Net Book Value, at December 31, in millions. 2011 ($) 2023 ($) Land Rights - General Plant 9.7 14.4 St...
AI summary The text presents a table showing the net book value of the Company's General Plant depreciation pools as of December 31, 2011, and December 31, 2023, highlighting changes in various asset categories over time.
2026-2027 GRA Direct Evidence Appendix 12A(5) 1 Page 7 of 31 REDACTED (CONFIDENTIAL INFORMATION REMOVED) November 1, 2024 Memo to Participants in COSS Stakeholder Process - Func�onalized among the four service areas of genera�on, transmiss...
AI summary This memo outlines the methodology for func�onalizing and classifying costs across different service areas and rate classes as part of the 2026-2027 GRA Direct Evidence Appendix 12A(5) process.
November 1, 2024 Memo to Participants in COSS Stakeholder Process Pros Cons Would be consistent with fuel conversion Does not align with the view that the DDA and emission reduction classification. is a rate stabilization tool and was esta...
AI summary The memo outlines a debate on the classification of the Decarbonization Deferral Account (DDA) and its alignment with rate stabilization tools. It also details the inclusion of regulatory amortization in corporate taxes and the apportionment of regulatory assets and expenses to rate classes based on their responsibilities for the rate base.
3. Review of Treatment of General Plant During discussion in the COSS Stakeholder Engagement Session 2, held on February 22, 2024, intervenors noted that when looking at the COSS, General Plant costs had grown significantly. Intervenors we...
AI summary The document discusses the treatment of General Plant in the Cost of Service Study (COSS), noting significant growth in General Plant costs. It explains that General Plant includes NS Power's investments in buildings, communication equipment, transportation, and IT infrastructure, and that its Net Book Value is tracked separately and apportioned among generation, transmission, and distribution service areas.
Additional Information per Stakeholder Request For example, please refer to the table below for 3 examples of projects that were added to the Computer Software depreciation pool over the period, which the Company would seek to functionaliz...
AI summary The document provides additional information in response to stakeholder requests, including examples of projects added to the Computer Software depreciation pool, which the Company plans to functionalize differently in a future GRA.
2026-2027 GRA Direct Evidence Appendix 12A(5) 1 Page 13 of 31 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Status Quo CTD Referen ce NS Power Position (Pre Resolution Session) NS Power Updated Position (Following Resolution Session) Justifi...
AI summary The table discusses the classification of purchased power from biomass and wind under the 2026-2027 GRA Direct Evidence Appendix 12A(5). NS Power maintains the status quo, arguing that the current classification is consistent with broader resource portfolio recognition and cost of service treatment.
3. Review of Treatment of General Plant During discussion in the COSS Stakeholder Engagement Session 2, held on February 22, 2024, intervenors noted that when looking at the COSS, General Plant costs had grown significantly. Intervenors we...
AI summary The discussion during the COSS Stakeholder Engagement Session 2 highlighted significant growth in General Plant costs and the need for analysis of its impact on the COSS. General Plant includes NS Power's investments in buildings, communication equipment, transportation, and IT infrastructure. The NBV of General Property is tracked separately and apportioned among generation, transmission, and distribution based on relative NBV shares.
4 Table 2 – Summary of NS Power Proposed Methodology Status Quo Change Generation • Allocation except for treatment of purchased power • No initial classification to energy for environmental and fuel conversion reasons • Use system load fa...
AI summary NS Power proposes changes to its methodology for classifying and allocating costs related to generation, transmission, and distribution. Key changes include refunctionalizing radial-to-generation, using system load factors for classification, and creating new storage sub-functions. These changes aim to improve cost allocation and align with updated regulatory practices.
- 3 4.1 FUNCTIONALIZATION - 4 4.1.1 RATE BASE, DEPRECIATION, AND OM&A - 5 4.1.1.1 NSP CURRENT APPROACH - 6 NS Power sub-functionalizes its rate base, depreciation, and OM&A by type of - 7 generation. Sub-functionalizing rate base, deprecia...
AI summary NS Power sub-functionalizes its rate base, depreciation, and OM&A by type of generation, allowing these accounts to be classified using different methodologies under its current approach.
3 4.2.1.1 NSP CURRENT APPROACH - 4 There are two steps to the classification of Generation rate base. First, there is an initial - 5 classification of rate base associated with environmental and fuel conversion plant 100% - 6 to energy. Th...
AI summary The classification of Generation rate base involves two steps: initial classification of environmental and fuel conversion plant at 100% to energy, and subsequent classification of remaining plant based on system load factor, effective load carrying capability of wind, or 100% to demand.
15 4.2.1.2 NSP PROPOSED APPROACH - 16 NS Power is proposing to replace the classification of generation rate base and OM&A - 17 separately by generation type with an overall classification by the system load factor. As 8 The effective load...
AI summary Nova Scotia Power (NSP) proposes replacing the classification of generation rate base and OM&A by generation type with an overall classification based on system load factor. The effective load carrying capability (ELCC) is defined as a measure of the capacity attributable to intermittent resources like wind or solar during peak demand.
2026-2027 GRA Direct Evidence Appendix 12B Page 23 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -23- NSP COSS Consultation Report Draft April 25, 2025 1 part of its proposal, NS Power will remove the initial classification of environm...
AI summary NS Power proposes to classify all generation rate base, including environmental and fuel conversion, using the system load factor rather than discrete classification factors. This approach is consistent with practices in other Canadian jurisdictions and aims to align cost allocation with customer load profiles and regulatory requirements.
4.2.2.2 NSP PROPOSED APPROACH - 2 NS Power is proposing to maintain the classification of fuel, imports, and export revenues - 3 to energy. Purchases are proposed to be classified using the system load factor. This - 4 methodology aligns w...
AI summary NS Power proposes to maintain the classification of fuel, imports, and export revenues to energy, using the system load factor for purchases. This approach aligns with the proposed methodology for generation rate base and operations and maintenance.
4.2.3.1 NSP CURRENT APPROACH - As explained in section [4.1.3.1,](#page-77-1) NS Power's radial-to-generation costs are currently - included within its general transmission functions. The EHV and HV sub-functions were - classified by the s...
AI summary NS Power's radial-to-generation costs are currently included within its general transmission functions, with EHV and HV sub-functions classified based on system load factor.
10 4.3.3.2 NSP PROPOSED APPROACH - 11 NS Power is proposing to allocate demand-classified radial-to-generation and storage - 12 that is functionalized to generation, using the 3CP allocator, consistent with the allocator - 13 used to alloc...
AI summary NS Power is proposing a method to allocate demand-classified radial-to-generation and storage using the 3CP allocator, aligning with the approach used for other generation rate base, depreciation, and OM&A. Energy-classified radial-to-generation and storage are to be allocated based on annual energy consumption.
5.1.1.1 NSP CURRENT APPROACH - 5 Transmission rate base, depreciation, and OM&A is functionalized between extra high - 6 voltage ("EHV") and high voltage ("HV") sub-functions. As discussed further in this - 7 section, EHV and HV are classi...
AI summary Nova Scotia Power (NSP) classifies and allocates transmission rate base, depreciation, and OM&A costs between extra high voltage (EHV) and high voltage (HV) sub-functions. These are treated as a single Transmission function, with bulk power substations refunctionalized to the Distribution function.
5.1.1.3 ELENCHUS OPINION - Elenchus supports NS Power's proposed methodology for functionalizing general - Transmission rate base and revenue requirement. - The distinction that NS Power makes between EHV and HV transmission assets is not...
AI summary Elenchus supports NS Power's methodology for functionalizing general transmission rate base and revenue requirement, but questions the distinction between EHV and HV transmission assets, arguing that the evidence does not justify excluding HV cost responsibility from EHV customers.
5.2.1.1 NSP CURRENT APPROACH - 9 EHV and HV transmission rate base, depreciation, and OM&A is classified to demand - and energy using the system load factor.
AI summary NSP classifies EHV and HV transmission rate base, depreciation, and OM&A based on system load factor for demand and energy.
- 1 interconnections, all other transmission is classified as 100% demand in all other - 2 jurisdictions in Canada. This is appropriate because the quantum of costs incurred to - 3 provide transmission service is caused by forecasted capac...
AI summary The text discusses the classification of transmission costs, including radial-to-generation and storage, within the context of cost causality and system load factors. Elenchus supports NS Power's proposal to reclassify transmission rate base, depreciation, and OM&A as 100% demand while maintaining classification based on the system load factor.
15 7.1.1 CURRENT RETAIL METHODOLOGY - 16 Retail costs include expenses like meter reading, customer service, and billing & - 17 collection. These costs are classified fully as customer-related.
AI summary The current retail methodology classifies retail costs, such as meter reading, customer service, and billing and collection, as fully customer-related expenses.
12 7.2.1 CURRENT GENERAL PLANT METHODOLOGY - 13 General plant is largely overhead-type plant that cannot be identified with any particular - 14 function, classification, or rate class. For example, administrative buildings are considered -...
AI summary The current general plant methodology involves classifying overhead-type plant, such as administrative buildings, across Generation, Transmission, Distribution, and Direct Assignment functions based on their share of plant in service. It is then allocated to rate classes using a weighted average of classified costs within each function, with a composite allocation approach similar to grossing-up net plant by the same percentage.
7.2.2 NSP PROPOSED APPROACH - 2 NS Power proposes to review the items within general plant to more precisely allocate - 3 net plant that has an identifiable function. Computer hardware and software is an example - 4 of an asset that is typ...
AI summary NS Power proposes to reclassify computer hardware and software from general plant to specific functions such as Generation, Transmission, Distribution, and Retail, to better allocate net plant and depreciation costs. This aligns with industry practices where such assets typically serve administrative functions and represent a small portion of revenue requirements.
7.2.3 ELENCHUS OPINION - General plant provides support to the generation, transmission, and distribution functions - and there generally is no clear cost driver for these costs. The overall approach to - classifying and allocating general...
AI summary The opinion discusses the classification and allocation of general plant costs, emphasizing the need for periodic reviews to ensure accurate cost assignment. It supports breaking out computer software and communications equipment for more precise allocation and highlights the importance of aligning with Canadian methodologies.
7.3.1 RATE CLASSIFICATIONS - Port Hawkesbury Paper ("PHP") is currently the only customer within the Extra Large - Industrial Active Demand Control ("ELIADC") rate class. The ELIADC rate class is - considered a below-the-line rate class, i...
AI summary Port Hawkesbury Paper is the sole customer in the ELIADC rate class, which is a below-the-line rate class with costs calculated outside the cost of service study model, particularly for energy costs.
2026-2027 GRA Direct Evidence Appendix 12B Page 48 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -48- NSP COSS Consultation Report Draft April 25, 2025 - 1 assigned based on the incremental cost of generation instead of an allocation o...
AI summary This text discusses NS Power's efforts to develop an above-the-line tariff for PHP, based on incremental generation costs and load characteristics relative to other classes. NS Power and PHP are collaborating to determine the viability of such a tariff.
7.3.2 NSP PROPOSED APPROACH - 7 NS Power has refined the COSS to facilitate scenarios that allocate costs to PHP as a - 8 separate rate class PHP's loads and customer characteristics would be included in the - 9 derivation of allocators as...
AI summary NSP has refined the COSS to allocate costs to PHP as a separate rate class, ensuring its loads and customer characteristics are included in the derivation of allocators. PHP, being a transmission-connected customer, will not receive any allocation of distribution costs.
7.4.1 UPDATED LINE LOSS STUDY - NS Power retained BBA to conduct a line loss study to allocate NS Power's demand and - energy line losses to rate classes. The study used a range of load data sources, software - simulations, GIS, and indust...
AI summary NS Power commissioned BBA to conduct an updated line loss study to allocate demand and energy line losses to rate classes. The study utilized various data sources, software simulations, GIS, and industry research to estimate losses across different voltage service levels.
7.5.1 NSP PROPOSED APPROACH - NS Power is required to retire coal-fired assets and associated marine unloading and fuel - delivery facilities by 2030. These assets have not yet reached their end of service life so - NS Power will not recov...
AI summary Nova Scotia Power (NSP) is required to retire coal-fired assets by 2030 and will not recover decommissioning costs by that date. NSP has been approved to use a Decarbonization Deferral Account (DDA) as a rate stabilization tool and proposes to allocate DDA costs using its prior methodology based on the weighted average of its rate base.
8 CONCLUSIONS 2 As stated in the Introduction the goal of this process was to identify appropriate changes 3 to NS Power's COSS in light of developments including the greater integration of wind 4 and other renewables, the addition of a gr...
AI summary The document discusses the need for refinements to NS Power's Cost of Service Study (COSS) methodology due to changes in technology and generation mix, such as increased renewables and gas-fired generation. It emphasizes that the fundamental principles of cost allocation remain unchanged, but adjustments are necessary to equitably assign costs to customer classes.
2026-2027 GRA Direct Evidence Appendix 12B Page 54 of 55 REDACTED (CONFIDENTIAL INFORMATION REMOVED) -54- NSP COSS Consultation Report Draft April 25, 2025 1 with meeting the system's base, intermediate and peak demands. However, the 2 int...
AI summary The document discusses NSP's approach to classifying generation, transmission, and distribution costs in the context of evolving energy technologies and supply portfolios. It highlights the integration of renewable generation, storage, and PPAs, and proposes refining cost classifications to align with operational realities and best practices in ratemaking.
N-142026-2027 GRA OP 01-15 - Redacted
139 passages
Significant changes in the Condensed Consolidated Balance Sheets between June 30, 2025 and December 31, 2024 include: millions of dollars Increase (Decrease) Explanation Assets Receivables, net $ 145 Increased due to timing of activity Inc...
AI summary The condensed consolidated balance sheets show significant changes between June 30, 2025, and December 31, 2024, including increases in receivables, income taxes receivable, and inventory, and decreases in derivative instruments and regulatory liabilities. These changes are attributed to factors such as timing of activity, clean technology investment tax credits, and capital investment.
NSPI has a contractual obligation to pay NSP Maritime Link Inc. ("NSPML"), a related party, for the use of the Maritime Link over approximately 38 years from its January 15, 2018, in-service date. On November 29, 2024, NSPML received NSEB...
AI summary NSPI is required to pay NSPML for the use of the Maritime Link over 38 years. NSEB approved NSPML to collect up to $197 million from NSPI in 2025, including $158 million from the annual cost assessment and $39 million for repaying a federal loan guarantee.
Guarantees and Letters of Credit As at June 30, 2025, the Company had $7 million USD and $4 million CAD of letters of credit outstanding (December 31, 2024 - $7 million USD and $3 million CAD). As at June 30, 2025, the Company had $89 mill...
AI summary As of June 30, 2025, the Company had $7 million USD and $4 million CAD in letters of credit outstanding, and $89 million USD in guarantees issued on behalf of NSPEMI, down from $104 million USD in 2024.
Nova Scotia Power Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) For the Six months ended June 30 millions of dollars 2025 2024 Operating activities Net income $ 116 $ 75 Adjustments to reconcile net income to net cash pr...
AI summary The condensed consolidated statements of cash flows for Nova Scotia Power Inc. for the six months ended June 30, 2025, and 2024, show net income of $116 million and $75 million, respectively. Net cash provided by operating activities was $95 million in 2025 and $296 million in 2024. Investing activities used $298 million in 2025 and $216 million in 2024. Financing activities provided $211 million in 2025 and used $120 million in 2024.
Use of Management Estimates The preparation of unaudited condensed consolidated interim financial statements in accordance with USGAAP requires management to make estimates and assumptions. These may affect the reported amounts of assets a...
AI summary The preparation of unaudited condensed consolidated interim financial statements under USGAAP requires management estimates and assumptions, particularly in areas such as rate-regulated assets, pension benefits, and asset retirement obligations. These estimates are evaluated based on historical experience and current conditions, with adjustments recognized in income when they occur. No material changes were noted compared to the 2024 annual financial statements.
As at June 30 December 31 millions of dollars 2025 2024 Regulatory assets Deferred income tax regulatory asset $ 974 $ 922 FAM (refer to table below) 35 - Deferrals related to derivative instruments 31 40 Hurricane Fiona 31 32 Cost of remo...
AI summary The table presents regulatory assets and liabilities for the periods ending June 30, 2025, and December 31, 2024, highlighting changes in deferred income tax, FAM, derivative instruments, and storm-related deferrals. Regulatory assets increased from $1,041 million to $1,107 million, while regulatory liabilities decreased from $100 million to $20 million.
2026-2027 GRA OP-01 Attachment 02 Page 17 of 19 REDACTED (CONFIDENTIAL INFORMATION REMOVED) For the three months ended June 30, 2025, NSPI issued 0.04 million common shares (2024 – 0.04 million common shares) to Emera for total considerati...
AI summary NSPI issued 0.04 million common shares to Emera for $0.4 million in both the three and six months ended June 30, 2025. Additionally, NSPI returned $340 million of capital to Emera without reducing the number of shares outstanding. As of June 30, 2025, NSPI owed $179 million to Emera and affiliates, up from $150 million as of December 31, 2024.
2026-2027 GRA OP-01 Attachment 3 Page 4 of 31 REDACTED (CONFIDENTIAL INFORMATION REMOVED) As at millions of dollars 2025 2026 2027 2028 2029 Total Capital investment plan $ 3,420 $ 3,990 $ 4,050 $ 4,380 $ 4,590 $ 20,430 Average consolidate...
AI summary The document presents a capital investment plan and average consolidated rate base for 2025 through 2029, showing increasing figures for both US and Canadian operations. The data excludes NMGC, with further details on its pending sale referenced in 'Other Developments.'
Florida Electric Utility TEC anticipates earning within the upper half of its ROE range in 2025. As a result of new base rates effective January 1, 2025, TEC's 2025 USD earnings are expected to be higher than in 2024. TEC expects customer...
AI summary TEC anticipates earning within the upper half of its ROE range in 2025, with higher USD earnings expected due to new base rates effective January 1, 2025. Customer growth rates in 2025 are expected to be comparable to 2024, reflecting Florida's economic growth. The text also mentions adjustments to net income and MTM losses and gains for the periods ending June 30, 2025.
PGS PGS anticipates earning at the bottom of its allowed ROE range in 2025. USD earnings for 2025 are expected to be consistent with 2024 primarily due to higher operating costs and depreciation driven by ongoing capital investments to sup...
AI summary PGS expects to earn at the lower end of its allowed ROE range in 2025, with USD earnings consistent with 2024 due to increased operating costs and depreciation from capital investments. PGS filed a rate case with the FPSC in March 2025, requesting a USD 93 million increase in annual base rates and additional adjustments for 2027. A settlement agreement in principle was reached in August 2025, with details expected to be filed with the FPSC.
Significant changes in the Consolidated Balance Sheets between December 31, 2024 and June 30, 2025 include: Total millions of dollars Increase (Decrease) Explanation of Increase (Decrease) Assets Derivative instruments (current and long-te...
AI summary The Consolidated Balance Sheets show significant changes between December 31, 2024, and June 30, 2025, including increases in derivative instruments and receivables, decreases in regulatory assets and goodwill, and changes in liabilities and equity due to FX translation, debt issuance, and impairment charges.
LIQUIDITY AND CAPITAL RESOURCES The Company generates internally sourced cash from its various regulated and non-regulated energy investments. Utility customer bases are diversified by both sales volumes and revenues among customer classes...
AI summary Emera generates cash from regulated and non-regulated energy investments, with liquidity sufficient to meet near-term capital needs and debt obligations. The company has a capital investment plan of approximately $20 billion from 2025 to 2029, supported by operations, debt, equity, and the pending sale of NMGC. Credit facilities provide significant liquidity, and the company maintains a cash balance of $204 million as of June 30, 2025.
Cash Flow from Operating Activities Net cash provided by operating activities decreased $394 million to $799 million for the six months ended June 30, 2025, compared to $1,193 million for the same period in 2024. Cash from operations befor...
AI summary Net cash provided by operating activities decreased to $799 million for the six months ended June 30, 2025, compared to $1,193 million in 2024. This decrease was primarily due to unfavourable changes in working capital, including accounts payable and receivable, inventory, and trade receivables, partially offset by increases in fuel over-recoveries and new base rates.
Use of Management Estimates The preparation of unaudited condensed consolidated interim financial statements in accordance with USGAAP requires management to make estimates and assumptions. These may affect the reported amounts of assets a...
AI summary The document discusses the use of management estimates in the preparation of unaudited condensed consolidated interim financial statements under USGAAP. Key areas include rate-regulated assets, pension benefits, unbilled revenue, and impairment charges. A significant impairment charge of $75 million CAD was recognized in Q2 2025 related to the pending sale of NMGC.
Pending Sale of NMGC On August 5, 2024, Emera entered into an agreement to sell its indirect wholly-owned subsidiary NMGC for a total enterprise value of approximately $1.3 billion USD, consisting of cash proceeds and the transfer of debt...
AI summary Emera has agreed to sell NMGC for approximately $1.3 billion USD, with assets and liabilities classified as held for sale in Q3 2024. A non-cash impairment charge of $75 million was recorded in Q2 2025 due to changes in the transaction timing, and depreciation on NMGC assets continued to be recorded through the closing date.
15. RELATED PARTY TRANSACTIONS In the ordinary course of business, Emera provides energy and other services and enters into transactions with its subsidiaries, associates and other related companies on terms similar to those offered to non...
AI summary Emera engages in intercompany transactions with subsidiaries and related parties, including energy and service agreements. Key transactions include Maritime Link assessments, natural gas transportation capacity purchases, and asset sales. These transactions are reported in financial statements and are eliminated on consolidation, with exceptions for net profit between regulated and non-regulated entities.
2. Quarterly test year figures are based on an allocation of the annual test year amounts as these amounts are not profiled quarterly. As at June 30 millions of Canadian dollars 2025(1) Unregulated Retained Earnings Unregulated retained ea...
AI summary This text provides quarterly test year figures for unregulated retained earnings, property, plant and equipment, other assets, deferred income taxes, and related parties for June 30, 2025. The figures are based on an allocation of annual test year amounts due to the lack of quarterly profiling. Certain adjustments are forecast due to a cybersecurity incident and its response.
OTHER 2 Rate base is a financial measure specific to rate-regulated utilities that is not intended to represent any financial measure as defined by GAAP. The measure is required by the regulatory authorities in the jurisdictions where Emer...
AI summary The rate base is a financial measure used by rate-regulated utilities, specifically for Emera's subsidiaries and equity investments, and is required by regulatory authorities. It is not comparable to GAAP-defined financial measures and is detailed in the MD&A.
Visible Growth Plan - $8.9B baseline capital investment plan through 2026 1,2 - 7.0% forecasted rate base growth through 2026 2
AI summary The Visible Growth Plan outlines an $8.9 billion baseline capital investment through 2026, with a forecasted 7.0% rate base growth over the same period.
- Equity thickness set at 40% for rate setting purposes – previously 37.5% 2023 2024 Non-Fuel Base Rate 1.8% 0.0% DSM 3.6% 0.3% Total Non-Fuel Increase 5.4% 0.3% Fuel Related1 Fuel Rate Increase 1.5% 6.6% Total Increase 6.9% 6.9%
AI summary The equity thickness for rate setting has been increased from 37.5% to 40%. The table shows the non-fuel and fuel-related rate increases for 2023 and 2024, with significant changes in the DSM and fuel rate components.
New Mexico Gas - In September 2023, NMGC filed a formal rate application with the NMPRC for new rates effective October 2024. NMGC requested a ~$49M USD increase in annual base rates, reflecting an ROE of 10.5% (currently 9.375%) and a cap...
AI summary NMGC filed a rate application with the NMPRC in September 2023, requesting a ~$49M USD increase in annual base rates, reflecting a higher return on equity and adjusted capital structure. The filing also includes requests for new regulatory assets and recovery/refund of existing ones.
1. Rate Base Growth • Deploy $8.9B baseline capital plan to achieve forecasted rate base growth of 7% annualized through 2026. An additional $2.3 billion of potential capital investments over the same period could drive rate base growth up...
AI summary The document outlines a baseline capital plan of $8.9 billion aimed at achieving 7% annualized rate base growth through 2026, with an additional $2.3 billion in potential investments that could increase growth to approximately 8% annualized.
2. Earnings Growth • Translate rate base growth into earnings growth by managing capital deployment with timing of regulatory filings and through prudent cost management
AI summary The document discusses translating rate base growth into earnings growth by managing capital deployment through the timing of regulatory filings and prudent cost management.
Capital Plan $8.9 B 2024-2026 baseline capital spend 1 7% Rate base growth through 2026 1 75% of capital plan focused in Florida 1 An additional $2.3 billion of potential capital investments over the same period could drive rate base growt...
AI summary The capital plan outlines a baseline of $8.9 billion in capital spending from 2024 to 2026, with 7% rate base growth expected by 2026. Approximately 75% of the capital plan is focused in Florida, and an additional $2.3 billion in potential investments could increase annualized rate base growth to around 8%.
- Grid modernization and customer focused technologies Earnings Impact of Capital Profile Florida Nova Scotia Capital Investment $ 100 $ 100 Equity %5 54% 37.5% Equity $ $ 54 $ 37.5 Return on equity5 10.2% 9.0% EARNINGS IMPACT $ 5.51 $ 3.3...
AI summary The document discusses the earnings impact of capital investment profiles in Florida and Nova Scotia, comparing equity percentages and returns on equity. It references the 2024-2026 Capital Plan, highlighting financial considerations related to grid modernization and customer-focused technologies.
Regulatory Construct 9.25% - 11.25% approved ROE 54% approved equity $9.5 billion rate base In year 2 of a 3 year rate agreement
AI summary The document outlines a regulatory construct with an approved return on equity (ROE) range of 9.25% to 11.25%, 54% approved equity, a rate base of $9.5 billion, and notes that this is the second year of a three-year rate agreement.
Regulatory Construct 8.75% - 9.25% approved ROE 40% approved equity $4.6 billion rate base In year 1 of a 2 year rate agreement
AI summary The regulatory construct outlines an approved ROE range of 8.75% to 9.25%, 40% equity, a $4.6 billion rate base, and a two-year rate agreement starting in year 1.
Regulatory Construct 8.75% - 9.25% approved ROE 30% approved equity $1.7 billion rate base
AI summary The regulatory construct outlines an approved ROE range of 8.75% to 9.25%, 30% equity, and a rate base of $1.7 billion, which are key financial parameters set by the regulatory authority.
Regulatory Construct 8.9% - 11.0% approved ROE 54.7% approved equity $1.9 billion rate base
AI summary The regulatory construct includes an approved ROE range of 8.9% to 11.0%, 54.7% approved equity, and a rate base of $1.9 billion. These figures are key components in the determination of utility rates and financial structures.
Regulatory Arrangements In November 2023, the FPSC voted to approve the FPSC staff recommendation which supported an $107 million USD increase in annual base rates, as well as $11 million USD from the cast iron and bare steel replacement r...
AI summary In November 2023, the FPSC approved a recommendation to increase annual base rates by $107 million USD and added $11 million USD from the cast iron and bare steel replacement rider, reflecting a 10.15% midpoint ROE with an allowed equity capital structure of 54.7%.
Regulatory Construct 9.375% approved ROE 52% approved equity $0.8 billion rate base Effective January 1, 2023 the NMPRC is comprised of three appointed commissioners (previously 5 elected commissioners).
AI summary The document outlines the NMPRC's approved ROE of 9.375%, equity of 52%, and a rate base of $0.8 billion, effective January 1, 2023. It also notes the change in NMPRC structure from five elected commissioners to three appointed commissioners.
Regulatory Arrangements In September 2023, NMGC filed a formal rate application with the NMPRC for new rates effective October 2024. NMGC requested a ~$49M USD increase in annual base rates, reflecting an ROE of 10.5% (currently 9.375%) an...
AI summary NMGC submitted a rate application to the NMPRC in September 2023, requesting a ~$49M USD annual base rate increase, which includes a proposed ROE of 10.5% and a capital structure of 53%/47% equity/debt.
Regulatory Construct BLPC: 10.0% approved return on rate base ($420M rate base) GBPC: 8.37% approved return on rate base ($275M rate base)
AI summary The document outlines approved return on rate base percentages for two entities: BLPC with a 10.0% return on a $420M rate base and GBPC with an 8.37% return on a $275M rate base.
Driving 7-8% Rate Base Growth 2 Forecasted capital spend 2024-2026 in millions of CAD, includes $240M of additions to Emera's equity investment in LIL in 2024 3 An additional $2.3 billion of potential capital investments over the same peri...
AI summary The document discusses rate base growth forecasts, including capital investments and regulatory actions. Key points include NSPI's proposal to acquire FAM balance, TEC's intent to file for new rates, and the Clean Electricity Solutions Task Force's report.
Visible Growth Plan - $8.9B baseline capital investment plan through 2026 1,2 - 7.0% forecasted rate base growth through 2026 2
AI summary The Visible Growth Plan outlines an $8.9 billion baseline capital investment plan through 2026, with a forecasted 7.0% rate base growth during the same period.
Forecasted Rate Base 1 ~7% Forecasted Rate Base CAGR With potential for additional investment to increase growth to ~8%
AI summary The document presents a forecasted rate base with a compound annual growth rate (CAGR) of approximately 7%, with potential for additional investment to increase this to 8%. Visuals accompany the forecast, highlighting the growth projections.
Regulatory Construct 9.25% - 11.25% approved ROE 54% approved equity $10.2 billion rate base In year 3 of a 3 year rate agreement
AI summary The document outlines a regulatory construct with an approved return on equity (ROE) range of 9.25% to 11.25%, 54% approved equity, a rate base of $10.2 billion, and specifies that this is in the third year of a three-year rate agreement.
Regulatory Construct 8.75% - 9.25% approved ROE 40% approved equity $5.4 billion rate base In year 2 of a 2 year rate agreement
AI summary The regulatory construct outlines an approved return on equity (ROE) range of 8.75% to 9.25%, with 40% equity, a rate base of $5.4 billion, and specifies that this is the second year of a two-year rate agreement.
Regulatory Construct 8.75% - 9.25% approved ROE 30% approved equity $1.7 billion rate base
AI summary The regulatory construct sets an approved return on equity (ROE) range of 8.75% to 9.25%, with 30% equity and a rate base of $1.7 billion.
Regulatory Construct 9.15% - 11.15% approved ROE 54.7% approved equity $2.2 billion rate base
AI summary The document outlines an approved return on equity (ROE) range of 9.15% to 11.15%, an approved equity percentage of 54.7%, and a rate base of $2.2 billion, which are key components of the regulatory construct being discussed.
Regulatory Arrangements In November 2023, the FPSC voted to approve the FPSC staff recommendation which supported an $107 million USD increase in annual base rates, as well as $11 million USD from the cast iron and bare steel replacement r...
AI summary In November 2023, the FPSC approved a $107 million USD annual base rate increase and $11 million USD from the cast iron and bare steel replacement rider, reflecting a 10.15% midpoint ROE with an allowed equity capital structure of 54.7%.
Regulatory Construct 9.375% approved ROE 52% approved equity $0.8 billion rate base Effective January 1, 2023 the NMPRC is comprised of three appointed commissioners (previously 5 elected commissioners).
AI summary The NMPRC has approved a 9.375% return on equity with 52% equity and a $0.8 billion rate base. Effective January 1, 2023, the NMPRC transitioned from five elected commissioners to three appointed commissioners.
Regulatory Arrangements In September 2023, NMGC filed a formal rate application with the NMPRC for new rates effective October 2024. NMGC requested a ~$49M USD increase in annual base rates, reflecting an ROE of 10.5% (currently 9.375%) an...
AI summary NMGC submitted a rate application to the NMPRC in September 2023, requesting a ~$49M USD annual base rate increase effective October 2024. The request includes a higher return on equity (ROE) of 10.5% and a capital structure of 53%/47% equity/debt.
Regulatory Construct BLPC: 10.0% approved return on rate base ($440M rate base) GBPC: 8.52% approved return on rate base
AI summary The document outlines approved return on rate base percentages for BLPC and GBPC, with BLPC at 10.0% and GBPC at 8.52%, along with a rate base of $440M for BLPC.
Renewable Natural Gas (RNG) – Peoples Gas - Completed the New River, Brightmark, and Alliance RNG projects at PGS - New RNG pipeline project in development stages Note: Amounts in millions of Canadian dollars unless otherwise noted 1 Forec...
AI summary Peoples Gas has completed several RNG projects and is developing a new pipeline. Forecasted capital spend from 2024-2026 is expected to drive 7-8% rate base growth, with potential for up to 8% annualized growth if additional investments are made.
1. Timely recovery of rate base investments and operating costs - Minimizing regulatory deferrals effective fuel and storm mechanisms at TEC and NSPI - New rates PGS and anticipated at NMGC in 2024 and rate case filed at TEC for new rates...
AI summary The text discusses the timely recovery of rate base investments and operating costs, mentioning efforts to minimize regulatory deferrals at TEC and NSPI, new rates anticipated at NMGC in 2024, and a rate case filed at TEC for 2025. It also highlights a new fuel rate agreement with the Province of NS to mitigate fuel deferral at NSPI.
1 Average rate base; 2 USD/CAD exchange rate for 2022 updated to reflect forecasted rate; 3 Capital structures that support the rate base include deferred tax liabilities (DTL), a zero cost-of-capital component of the capital structure in...
AI summary The text discusses rate base calculations, including deferred tax liabilities, capital structures, and investment values. It references specific figures and components such as USD/CAD exchange rates, capital lease investments, and equity investments in regulated pipeline projects.
Visible Growth Plan - $8.8B baseline capital investment plan through 2026 1,2 - 7.0% forecasted rate base growth through 2026 2
AI summary The Visible Growth Plan outlines an $8.8 billion baseline capital investment plan through 2026, accompanied by a forecasted 7.0% rate base growth during the same period.
New Mexico Gas - Reached an unopposed settlement agreement with all intervenors on its active rate case in March 2024 - o Settlement includes $30M of new base rates, effective October 1, 2024 - o Rates set on a 9.375% ROE and 52% equity, u...
AI summary New Mexico Gas reached an unopposed settlement agreement in March 2024, including new base rates of $30M effective October 1, 2024, with a 9.375% ROE and 52% equity. The weather normalization mechanism is a permanent tariff, and the final regulatory decision is expected in Q3 2024.
Nova Scotia Power - In April 2024, the UARB approved the provincial government's proposal to acquire $117 million of the NSPI FAM balance and collect if from rate payers over 10 years - Proceeds were received on April 30th
AI summary In April 2024, the UARB approved the provincial government's proposal to acquire $117 million of the NSPI FAM balance, to be collected from rate payers over 10 years. Proceeds were received on April 30th.
Forecasted Rate Base 1,2 With potential for additional investment to increase growth to ~8% & lt;sup>1 Average total rate base in millions of Canadian dollars. U.S. dollar denominated rate base is translated at a forecasted USD/CAD rate of...
AI summary The document discusses the forecasted rate base, including historical and projected figures in millions of Canadian dollars, with the Labrador Island Link removed from the calculation after its disposition in 2022. A forecasted USD/CAD exchange rate of 1.30 is used for 2024-2026. The rate base is expected to grow to approximately 8% with additional investment.
Regulatory Construct 9.25% - 11.25% approved ROE 54% approved equity $10.2 billion rate base In year 3 of a 3 year rate agreement
AI summary The regulatory construct outlines an approved return on equity (ROE) range of 9.25% to 11.25%, with 54% approved equity, a rate base of $10.2 billion, and specifies that this is in year 3 of a 3-year rate agreement.
Regulatory Construct 8.75% - 9.25% approved ROE 40% approved equity $5.4 billion rate base In year 2 of a 2 year rate agreement
AI summary The regulatory construct outlines an approved return on equity (ROE) range of 8.75% to 9.25%, 40% equity, a rate base of $5.4 billion, and specifies that this is in the second year of a two-year rate agreement.
Regulatory Construct 8.75% - 9.25% approved ROE 30% approved equity $1.7 billion rate base
AI summary The regulatory construct includes an approved return on equity (ROE) range of 8.75% to 9.25%, 30% approved equity, and a rate base of $1.7 billion.
Regulatory Construct 9.15% - 11.15% approved ROE 54.7% approved equity $2.2 billion rate base
AI summary The regulatory construct outlines an approved return on equity (ROE) range of 9.15% to 11.15%, an approved equity percentage of 54.7%, and a rate base of $2.2 billion.
Regulatory Arrangements In November 2023, the FPSC voted to approve the FPSC staff recommendation which supported an $107 million USD increase in annual base rates, as well as $11 million USD from the cast iron and bare steel replacement r...
AI summary In November 2023, the FPSC approved a recommendation to increase annual base rates by $107 million USD and include a $11 million USD rider for cast iron and bare steel replacement, reflecting a 10.15% midpoint ROE with an allowed equity capital structure of 54.7%.
Regulatory Construct 9.375% approved ROE 52% approved equity $0.8 billion rate base Effective January 1, 2023 the NMPRC is comprised of three appointed commissioners (previously 5 elected commissioners).
AI summary The NMPRC has approved a 9.375% ROE, 52% equity, and a $0.8 billion rate base. The commission structure changed in 2023, transitioning from five elected commissioners to three appointed ones.
Regulatory Arrangements Reached an unopposed settlement agreement which included $30M of new base rates, effective October 1, 2024. Rates set on a 9.375% ROE and 52% equity, unchanged from current. Settlement makes weather normalization me...
AI summary An unopposed settlement agreement was reached, setting new base rates of $30M effective October 1, 2024, with a 9.375% ROE and 52% equity. The weather normalization mechanism is now a standard tariff, with a final regulatory decision expected in Q3 2024.
New Mexico Gas - On July 25, 2024, the New Mexico Gas rate case settlement agreement was unanimously approved by the New Mexico Public Regulation Commission - o Settlement includes $30M of new base rates, effective October 1, 2024 - o Rate...
AI summary The New Mexico Public Regulation Commission unanimously approved a rate case settlement agreement for New Mexico Gas on July 25, 2024. The agreement includes a $30M increase in base rates, effective October 1, 2024, with the rate of return on equity and equity percentage remaining unchanged. The weather normalization mechanism will transition from a pilot program to a standard tariff.
Grand Bahama Power Corporation ("GBPC") - On August 1, 2024, GBPC filed a rate plan proposal with their regulator - Proposal seeks a revision in base rates, charges and tariff classifications effective January 1, 2025 for a three-year peri...
AI summary Grand Bahama Power Corporation (GBPC) filed a rate plan proposal with their regulator on August 1, 2024, seeking a revision in base rates, charges, and tariff classifications effective January 1, 2025, for a three-year period. The proposed rates are based on an 8.5-8.7% allowable regulated return on rate base and a target regulatory ROE of 12.87%, with a decision expected by the end of 2024.
Visible Growth Plan - $8.8B baseline capital investment plan through 2026 1,6 - 7-8% forecasted rate base growth through 2029 6 - 5-7% three-year average target adjusted EPS 2 growth though 2027
AI summary The Visible Growth Plan outlines an $8.8B capital investment plan through 2026, with a forecasted 7-8% rate base growth through 2029 and a target of 5-7% three-year average adjusted EPS growth through 2027.
New Mexico Gas 2024 Rate Case Details - $30M USD increase in annual base rates effective October 1, 2024 - 9.375% ROE and 52% equity thickness, unchanged from current - Weather normalization mechanism formalized in the tariff, after five y...
AI summary The 2024 Rate Case for New Mexico Gas includes a $30M USD annual base rate increase effective October 1, 2024, with a 9.375% ROE and 52% equity thickness remaining unchanged. A weather normalization mechanism has been formalized in the tariff following a five-year pilot period.
Additional Drivers of Cash Flow and Credit Metric Improvement - $117M CAD securitization of NSPI's unrecovered fuel costs, by the NS government in April 2024 discussions on further securitizations continue - 6.9% rate increase at NSPI effe...
AI summary The text outlines additional drivers of cash flow and credit metric improvements, including a $117M CAD securitization of NSPI's unrecovered fuel costs, a 6.9% rate increase at NSPI effective January 1, 2024, and new base rates at various utilities. It also mentions continued strong performance of regulated operations.
Forecasted Rate Base1,2 1 Average total rate base in millions of Canadian dollars. U.S. dollar denominated rate base is translated at a forecasted USD/CAD rate of $1.30 in 2024-2026 2 Labrador Island Link removed from historical and foreca...
AI summary The document discusses the forecasted rate base for 2024-2026, noting the removal of Labrador Island Link from the rate base following its disposition and the announcement of an agreement for the sale of NMGC. The forecasted USD/CAD exchange rate is set at $1.30 for the period.
Regulatory Construct 9.25% - 11.25% approved ROE 54% approved equity $10.2 billion rate base In year 3 of a 3 year rate agreement
AI summary The regulatory construct outlines an approved return on equity (ROE) range of 9.25% to 11.25%, 54% approved equity, a rate base of $10.2 billion, and specifies that this is in the third year of a three-year rate agreement.
Regulatory Construct 8.75% - 9.25% approved ROE 40% approved equity $5.4 billion rate base In year 2 of a 2 year rate agreement
AI summary The regulatory construct outlines an approved return on equity range of 8.75% to 9.25%, 40% equity, a rate base of $5.4 billion, and specifies that this is the second year of a two-year rate agreement.
Regulatory Construct 8.75% - 9.25% approved ROE 30% approved equity $1.7 billion rate base
AI summary The approved return on equity (ROE) range is 8.75% to 9.25%, with 30% equity approved and a rate base of $1.7 billion.
Regulatory Construct 9.15% - 11.15% approved ROE 54.7% approved equity $2.2 billion rate base
AI summary The regulatory construct includes an approved return on equity (ROE) range of 9.15% to 11.15%, an approved equity percentage of 54.7%, and a rate base of $2.2 billion.
Regulatory Arrangements In November 2023, the FPSC voted to approve the FPSC staff recommendation which supported an $107 million USD increase in annual base rates, as well as $11 million USD from the cast iron and bare steel replacement r...
AI summary In November 2023, the FPSC approved an increase in annual base rates by $107 million USD and $11 million USD from the cast iron and bare steel replacement rider, reflecting a 10.15 per cent midpoint ROE with an allowed equity capital structure of 54.7 per cent.
Regulatory Construct 9.375% approved ROE 52% approved equity $0.8 billion rate base
AI summary The document outlines a regulatory construct with an approved ROE of 9.375%, 52% approved equity, and a rate base of $0.8 billion.
Regulatory Arrangements Reached an unopposed settlement agreement which included $30M of new base rates, effective October 1, 2024. Rates set on a 9.375% ROE and 52% equity, unchanged from current. Settlement makes weather normalization me...
AI summary An unopposed settlement agreement was reached, setting new base rates of $30M effective October 1, 2024, with a 9.375% ROE and 52% equity. The weather normalization mechanism was incorporated into the normal tariff, and final regulatory approval was granted on July 25, 2024.
OTHER 1 Rate base is a financial measure specific to rate-regulated utilities that is not intended to represent any financial measure as defined by GAAP. The measure is required by the regulatory authorities in the jurisdictions where Emer...
AI summary The rate base is a financial measure used by rate-regulated utilities, specifically for Emera's subsidiaries and equity investments, and is required by regulatory authorities. This measure differs from GAAP-defined financial measures and may not be directly comparable to similar measures used by other companies.
Confident in our portfolio of premium assets to deliver reliable earnings, cash flow and dividend growth - 8% increase in adjusted earnings per share1 ("adjusted EPS") in Q3 2024 compared to Q3 2023 - Continued balance sheet strengthening...
AI summary The document highlights a 8% increase in adjusted EPS for Q3 2024, balance sheet strengthening through the securitization of $500M in fuel costs at Nova Scotia Power, and growth guidance of 5%-7% adjusted EPS through 2027 and 7%-8% rate base growth through 2029.
2026-2027 GRA OP-12 Attachment 1 Page 298 of 684 REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2022A 2022A 2023A 2024F 2025F 2026F 22'–26' 22'–26' CAGR Adjusted FX2 CAGR Adjusted FX US OPERATIONS Tampa Electric3,4 $ 9,230 $ 9,230 $ 10,195 $...
AI summary The document outlines the expected rate base growth for US and Canadian operations, projecting a 7-8% annual growth rate through 2029. It includes financial figures for various entities, such as Tampa Electric, Peoples Gas, and Nova Scotia Power, along with their respective rate base forecasts in USD and CAD.
5-year capital plan to be provided at Emera's 2024 Investor Day 1 Average rate base; 2 USD/CAD exchange rate for 2022 updated to reflect forecasted rate; 3 Capital structures that support the rate base include deferred tax liabilities (DTL...
AI summary The text discusses the provision of a 5-year capital plan at Emera's 2024 Investor Day, including details on rate base calculations, capital structures, and deferred tax liabilities at various subsidiaries.
Visible Growth Plan - $8.8B baseline capital investment plan through 2026 1,6 - 7-8% forecasted rate base growth through 2029 6 - 5-7% three-year average target adjusted EPS 2 growth though 2027
AI summary The Visible Growth Plan outlines an $8.8B capital investment plan through 2026, with a forecasted 7-8% rate base growth through 2029 and a target of 5-7% three-year average adjusted EPS growth through 2027.
Peoples Gas 2023 Rate Case - $107M USD increase in annual base rates - $11M USD Cast Iron Bare Steel rider - 10.15% mid-point ROE up from 9.95% - Allowed equity thickness of 54.7% unchanged - Received 85% of the ask as filed
AI summary The Peoples Gas 2023 Rate Case proposes a $107M USD annual base rate increase and a $11M USD Cast Iron Bare Steel rider. The mid-point return on equity (ROE) is set at 10.15%, up from 9.95%, while the allowed equity thickness remains at 54.7%. The applicant received 85% of their requested rate increase.
Delivering Meaningful Progress Towards Strengthening Balance Sheet Replaced Holdco debt with $500M USD of hybrid notes, treated as 50% equity Announced adjustment to Dividend Growth rate Closed $1.2B CAD Labrador Island Link transaction Fi...
AI summary The document outlines financial and capital strategies, including debt replacement with hybrid notes, dividend adjustments, and major transactions like the Labrador Island Link and NMGC sale. It also highlights capital spending plans and rate base growth projections.
Regulatory Construct BLPC: 10.0% approved return on rate base ($440M rate base) GBPC: 8.52% approved return on rate base ($270M rate base)
AI summary The document outlines approved return on rate base percentages for BLPC and GBPC, with BLPC receiving 10.0% on a $440M rate base and GBPC receiving 8.52% on a $270M rate base.
Regulatory Arrangements - On August 1, 2024, GBPC filed a rate plan proposal, to be effective effective on January 1, 2025, for a three-year period, based on an 8.5-8.7% allowable regulated return on rate base and a target regulatory ROE o...
AI summary GBPC filed a rate plan proposal for a three-year period starting January 1, 2025, with an allowable regulated return on rate base of 8.5-8.7% and a target regulatory ROE of 12.87%. BLPC's motion to review was dismissed by the FTC, but the company appealed the decision to the High Court of Barbados.
5-year capital plan to be provided at Emera's 2024 Investor Day 1 Average rate base; 2 USD/CAD exchange rate for 2022 updated to reflect forecasted rate; 3 Capital structures that support the rate base include deferred tax liabilities (DTL...
AI summary The document references a 5-year capital plan to be provided at Emera's 2024 Investor Day and includes details about capital structures, deferred tax liabilities, and rate base calculations for various entities, including Tampa Electric and Peoples Gas.
OTHER Rate base is a financial measure specific to rate-regulated utilities that is not intended to represent any financial measure as defined by GAAP. The measure is required by the regulatory authorities in the jurisdictions where Emera'...
AI summary Rate base is a financial measure specific to rate-regulated utilities, not aligned with GAAP, and is used by regulatory authorities in jurisdictions where Emera's rate-regulated subsidiaries or equity investments operate. The calculation may not be comparable to similar measures used by other companies.
REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026-2027 GRA OP-12 Attachment 1 Page 402 of 684 1 Deliver 7%-8% Rate Base CAGR Through 2029 Translate Rate Base Growth Into 5%-7% Adjusted EPS 1,2 Growth Through 2027 Deliver Sustainable Dividen...
AI summary The document outlines financial and operational targets for a utility company, including a 7%-8% rate base CAGR through 2029, 5%-7% adjusted EPS growth through 2027, sustainable dividend growth of 1%-2%, a target payout ratio of ~80% by 2027, and achieving credit metrics on a sustainable basis.
NMGC Effective October 1, 2024 $30M USD annual base rate increase 9.375% ROE and 52% equity thickness Formalized weather normalization mechanism
AI summary The NMGC document outlines an effective October 1, 2024 base rate increase of $30M USD, a 9.375% return on equity, and 52% equity thickness, along with the formalization of a weather normalization mechanism.
Emera's capital program Delivers exceptional value to customers Drives top-tier rate base growth1 Supports target adjusted EPS growth of 5%-7% through 2027 7%-8% Rate Base CAGR through 2029
AI summary Emera's capital program aims to deliver value to customers, drive rate base growth, and support earnings per share growth targets through 2027. The program is projected to achieve a 7%-8% compound annual growth rate in rate base through 2029.
4 Includes net investment in capital leases; 2 Excludes fuel and storm cost deferrals included in rate base; 3 Reflects the capital asset values of the regulated pipeline investments;
AI summary The text includes notes on net investment in capital leases, excludes fuel and storm cost deferrals from rate base, and reflects the capital asset values of regulated pipeline investments.
2026-2027 GRA OP-12 Attachment 1 Page 420 of 684 REDACTED (CONFIDENTIAL INFORMATION REMOVED) In millions of USD 2024F 2025F Capital Forecast $120 $85 Rate Base Forecast $890 $970 Announced agreement for sale of NMGC on August 5, 2024. The...
AI summary The document outlines capital and rate base forecasts for 2024 and 2025, and mentions an announced agreement for the sale of NMGC, pending regulatory approvals and expected to close in late 2025.
OTHER Rate base is a financial measure specific to rate-regulated utilities that is not intended to represent any financial measure as defined by GAAP. The measure is required by the regulatory authorities in the jurisdictions where Emera'...
AI summary Rate base is a financial measure used by rate-regulated utilities, specifically for Emera's subsidiaries and equity investments, and is required by regulatory authorities. It may not be comparable to similar measures used by other companies.
5 High-Quality Regulated Utilities1 2.5 Million Customers2 $39 billion Total Assets2 $20 billion 5-year Capital Plan3 ~80% Capital Plan Focused in Florida 7-8% Rate Base CAGR Growth Through 2029 5-7% 1-2% 18 1 Excludes NMGC. Announced agre...
AI summary The document highlights a regulated utility with 2.5 million customers and $39 billion in total assets. It outlines a $20 billion 5-year capital plan, with 80% focused in Florida, and projects a 7-8% annual growth in rate base through 2029. The utility has announced the sale of NMGC on August 5, 2024.
Why Invest in Emera Emera is at the forefront of a transformative era in energy with robust opportunities to invest on behalf of customers across the portfolio. Our proven strategy and operational excellence ensure we can capitalize on thi...
AI summary Emera highlights its strong investment opportunities in energy, focusing on its regulated utilities in Florida. It emphasizes a proven strategy, operational excellence, and a 5-year capital plan aimed at driving rate base growth and reliable earnings and dividend growth.
Clear Financial Objectives Drive Reliable Outcomes Deliver 7%-8% Rate Base CAGR Through 2029 Translate Rate Base Growth Into 5%-7% Annual Adjusted EPS 1 Growth Through 2027 2 2 3 Deliver Sustainable Annual Dividend Growth Of 1%-2% Achieve...
AI summary The document outlines financial objectives including a 7%-8% annual rate base growth through 2029, translating into 5%-7% adjusted EPS growth through 2027, sustainable dividend growth of 1%-2%, and a target payout ratio of ~80% by 2027. It also emphasizes achieving credit metrics on a sustainable basis.
Emera's capital program Delivers exceptional value to customers Drives top-tier rate base growth 1 Supports target annual adjusted EPS 2 growth of 5%-7% through 2027 3 7%-8% Rate Base CAGR through 2029 1 Compared to Canadian Utility Peers...
AI summary Emera's capital program aims to deliver value to customers by driving rate base growth and supporting a target annual adjusted EPS growth of 5%-7% through 2027. The program forecasts a 7%-8% rate base CAGR through 2029.
Regulatory Construct – Rates Effective Jan 1, 2025 - 9.5%–11.5% approved ROE - 54% approved equity - $10.2 billion rate base
AI summary The regulatory construct for rates effective January 1, 2025, includes an approved return on equity (ROE) range of 9.5%–11.5%, an approved equity of 54%, and a rate base of $10.2 billion.
Regulatory Construct - 8.75%–9.25% approved ROE - 40% approved equity - $5.4 billion rate base - In year 2 of a 2 year rate agreement
AI summary The regulatory construct outlines an approved ROE range of 8.75%–9.25%, 40% equity, a $5.4 billion rate base, and specifies that this is the second year of a two-year rate agreement.
Regulatory Construct - 8.75% –9.25% approved ROE - 30% approved equity - $1.7 billion rate base
AI summary The regulatory construct outlines an approved ROE range of 8.75% to 9.25%, an approved equity of 30%, and a rate base of $1.7 billion, reflecting key financial parameters set by the regulatory authority.
Regulatory Construct - 9.15%-11.15% approved ROE - 54.7% approved equity - $2.2 billion rate base
AI summary The regulatory construct outlines an approved ROE range of 9.15%-11.15%, an approved equity of 54.7%, and a rate base of $2.2 billion.
Regulatory Construct - 9.375% approved ROE - 52% approved equity - $0.8 billion rate base
AI summary The regulatory construct includes an approved ROE of 9.375%, an approved equity of 52%, and a rate base of $0.8 billion.
Regulatory Arrangements Reached an unopposed settlement agreement which included $30M of new base rates, effective October 1, 2024. Rates set on a 9.375% ROE and 52% equity, unchanged from current. Settlement makes weather normalization me...
AI summary An unopposed settlement agreement was reached, setting new base rates of $30M effective October 1, 2024, with a 9.375% ROE and 52% equity. The weather normalization mechanism is now a standard tariff, and final regulatory approval was granted on July 25, 2024.
4 Includes net investment in capital leases; 2 Excludes fuel and storm cost deferrals included in rate base; 3 Reflects the capital asset values of the regulated pipeline investments;
AI summary The text includes notes on financial and capital-related matters, such as net investment in capital leases, exclusions of fuel and storm cost deferrals from rate base, and reflections of capital asset values for regulated pipeline investments.
New Mexico Gas Forecasts In millions of USD 2024F 2025F Capital Forecast $120 $85 Rate Base Forecast $890 $970 Announced agreement for sale of NMGC on August 5, 2024. The sale is pending regulatory and other approvals and is expected to cl...
AI summary The document outlines New Mexico Gas Company (NMGC) capital and rate base forecasts for 2024 and 2025, with a capital forecast of $120 million and $85 million, and a rate base forecast of $890 million and $970 million respectively. An agreement to sell NMGC was announced on August 5, 2024, pending regulatory approvals and expected to close in late 2025.
7% increase in average rate base year-over-year 2 1 Since commencement of solar in service in 2017 2 On an FX adjusted basis, translating both 2023 and 2024 US denominated rate base at 1.35 3 Calculated on a weather-normalized basis 4 Base...
AI summary The text discusses a 7% increase in average rate base year-over-year, with a note that the increase is calculated on an FX adjusted basis and a weather-normalized basis. The rate base is compared to the most recent Atlantic Canadian average for comparable utilities.
100bps Improvement in 2024 Driven By: - $1.2B CAD Labrador Island Link transaction - $500M USD of hybrid notes, treated as 50% equity - $617M CAD securitization of NSPI deferred fuel costs - New base rates at all US utilities
AI summary The 100bps improvement in 2024 is attributed to several financial transactions, including a $1.2B CAD Labrador Island Link deal, $500M USD in hybrid notes treated as 50% equity, a $617M CAD securitization of deferred fuel costs, and new base rates at all US utilities.
1 Capital structures that support the rate base include deferred tax liabilities (DTL), a zero cost-of-capital component of the capital structure in Florida; 2023 capital structures included DTLs of approx. US$1,300 million at Tampa Electr...
AI summary The text discusses capital structures supporting the rate base, including deferred tax liabilities (DTL) at Tampa Electric and Peoples Gas, and excludes fuel and storm cost deferrals. It also mentions the inclusion of net investment in capital leases and the updated USD/CAD exchange rate for 2024.
1 6 High-Quality Regulated Utilities 2.6 Million Customers2 $43 billion Total Assets2 $20 billion 5-year Capital Plan3 ~80% Capital Plan Focused in Florida 7%-8% Rate Base CAGR Growth Through 2029 5-7% Target Avg Annual Adj. EPS4 Growth Th...
AI summary The document outlines key financial and operational metrics for a regulated utility company, including a 5-year capital plan, customer base, total assets, and growth targets for earnings per share and dividends. It also mentions the sale of NMGC, which is included in the company's total assets.
Tampa Electric Peoples Gas Nova Scotia Power Key Regulatory Features • Forward test year • Storm reserve • Storm protection plan recovery mechanism • Forward test year • Forward test year • Storm cost recovery mechanism ROE & Equity 9.5-11...
AI summary The table compares key regulatory features, ROE and equity metrics, and key dates for Tampa Electric, Peoples Gas, and Nova Scotia Power. It highlights differences in forward test years, storm cost recovery mechanisms, and equity thickness, as well as regulatory decisions and rate-effective dates.
Financial Highlights 5 % - 7 % Target adj. EPS CAGR through 2027 7%-8% Forecasted rate base growth through 2029 1%-2% Annual dividend growth target
AI summary The financial highlights section outlines key financial targets, including a 5% to 7% adjusted earnings per share compound annual growth rate through 2027, a 7% to 8% forecasted rate base growth through 2029, and a 1% to 2% annual dividend growth target.
Regulatory Construct BLPC: 10.0% approved return on rate base ($0.5B rate base) GBPC: 8.52% approved return on rate base ($0.3B rate base)
AI summary The document outlines the approved return on rate base percentages for two entities: BLPC with 10.0% on a $0.5B rate base and GBPC with 8.52% on a $0.3B rate base.
1 Capital structures that support the rate base include deferred tax liabilities (DTL), a zero cost-of-capital component of the capital structure in Florida; 2023 capital structures included DTLs of approx. US$1,300 million at Tampa Electr...
AI summary The text discusses capital structures supporting the rate base, including deferred tax liabilities (DTL) at Tampa Electric and Peoples Gas, and notes exclusions such as fuel and storm cost deferrals. It also references exchange rates and investment values in regulated pipeline assets.
Executive Summary Over the past year we have executed against our plan to improve our credit profile. Our actions have improved our FX normalized FFO adjusted leverage 1 ratio to 6.1x and reduced our proportion of holding company debt to a...
AI summary Over the past year, the company has improved its credit profile by reducing leverage and increasing exposure to premium regulatory jurisdictions. The company remains committed to maintaining its investment grade rating and has focused its portfolio on regulated utilities in Florida.
FFO ADJUSTED LEVERAGE TRANSITION $87M USD of new base revenues at TEC , partially offset by rate base investment $80M CAD of new base revenues at NSPI and a further $200M of thermal asset securitization $104M USD of new base revenues at PG...
AI summary The FFO Adjusted Leverage Transition section outlines new base revenue figures for TEC, NSPI, and PGS, including USD and CAD amounts, partially offset by rate base investments and thermal asset securitization.
PGS 2026 Revenue Requirement + 2027 Subsequent Year Adjustment 2026 2027 Rate Base Growth 48 - Depreciation 19 6 O&M 23 - Taxes Other Than Income Taxes 9 7 Cost of Capital 15 14 Revenue Growth, excluding CI/BS1 Rider (10) - BASE REVENUE RE...
AI summary The document outlines the 2026 Revenue Requirement and the 2027 Subsequent Year Adjustment for PGS, including details on rate base growth, depreciation, operating and maintenance costs, taxes, cost of capital, and net revenue required.
PGS 2026 Revenue Requirement + 2027 Subsequent Year Adjustment 2026 2027 Rate Base Growth 48 - Depreciation 19 6 O&M 23 - Taxes Other Than Income Taxes 9 7 Cost of Capital 15 14 Revenue Growth, excluding CI/BS1 Rider (10) - BASE REVENUE RE...
AI summary The document presents the 2026 Revenue Requirement and 2027 Subsequent Year Adjustment for PGS, including details on rate base growth, depreciation, O&M, taxes, cost of capital, and net revenue required. The table outlines financial figures for both years.
82% of LTD and hybrids mature beyond 2027 Evaluating various 2026 refinancing scenarios to maintain 50% equity treatment of all hybrid securities while continuing to de-lever at the Holdco Refinancing activity will be in a US entity
AI summary The text discusses the maturation of 82% of LTD and hybrids beyond 2027, with an evaluation of 2026 refinancing scenarios aimed at maintaining 50% equity treatment of hybrid securities while continuing de-leveraging through a US entity.
1 6 High-Quality Regulated Utilities 2.6 Million Customers2 $43 billion Total Assets2 $20 billion 5-year Capital Plan3 ~80% Capital Plan Focused in Florida 7-8% Rate Base CAGR Growth Through 2029 5-7% Target Avg Annual Adj. EPS4 Growth Thr...
AI summary The document outlines key financial and operational metrics for a regulated utility, including 2.6 million customers, $43 billion in total assets, and a $20 billion 5-year capital plan focused largely in Florida. The utility targets 5-7% average annual adjusted EPS growth and 1-2% annual dividend growth, with 18 years of consecutive dividend growth.
Regulatory Construct - 9.15%-11.15% approved ROE - 54.7% approved equity - $2.4 billion rate base
AI summary The regulatory construct includes an approved ROE range of 9.15%-11.15%, an approved equity percentage of 54.7%, and a rate base of $2.4 billion.
Regulatory Construct - 9.375% approved ROE - 52% approved equity - $0.9 billion rate base
AI summary The document outlines key regulatory parameters including an approved return on equity (ROE) of 9.375%, an approved equity of 52%, and a rate base of $0.9 billion.
Regulatory Arrangements Reached an unopposed settlement agreement which included $30M of new base rates, effective October 1, 2024. Rates set on a 9.375% ROE and 52% equity, unchanged from current. Settlement makes weather normalization me...
AI summary An unopposed settlement agreement was reached, setting new base rates of $30M effective October 1, 2024, with rates based on a 9.375% ROE and 52% equity. The agreement includes making the weather normalization mechanism a normal tariff, with final regulatory approval given on July 25, 2024.
1 Capital structures that support the rate base include zero cost-of-capital components in Florida. 2024 capital structures included DTLs and other items of approx. US$1,600 million at Tampa Electric and approx. US$300 million at Peoples G...
AI summary The text discusses capital structures supporting the rate base in Florida, including details on deferred costs and exchange rates for 2024. It mentions specific figures for Tampa Electric and Peoples Gas, as well as net investment in capital leases and exchange rate updates.
New Mexico Gas Forecasts In millions of USD 2024A 2025F Capital Forecast $130 $85 Rate Base Forecast $835 $970 Announced agreement for sale of NMGC on August 5, 2024. The sale is pending regulatory and other approvals and is expected to cl...
AI summary The document outlines capital and rate base forecasts for New Mexico Gas Company (NMGC) for 2024 and 2025, along with an announced agreement for the sale of NMGC, pending regulatory approvals and expected to close in late 2025.
Peoples Gas - Settlement agreement filed in August 2026 reflecting: - Revenue increase of $97M USD through 2028 (inclusive of CIBS rider) - $67M USD in 2026 - $25M USD in 2027 and - $5M USD in 2028 - Represents 81% of revised ask - ROE of...
AI summary A settlement agreement for Peoples Gas, filed in August 2026, includes a revenue increase of $97M USD through 2028, with an 81% approval of the revised ask. The return on equity (ROE) is set at 10.3%, up from 10.15%, with equity thickness remaining at 54.7%. The final order is expected in Q4 2025, with new rates effective January 1, 2026.
Capital Plan Drives Rate Base Growth, Earnings Growth
AI summary The document discusses how a capital plan contributes to rate base growth and earnings growth, illustrated by a figure referenced in the text.
Emera's capital program - Delivers exceptional value to customers - Drives top-tier rate base growth1 - Supports target annual adjusted EPS2 growth of 5-7% through 20273 7-8% Rate Base CAGR through 2029 - 1. Compared to Canadian Utility Pe...
AI summary Emera's capital program aims to deliver value to customers and drive rate base growth, targeting a 7-8% compound annual growth rate through 2029. It also seeks to achieve 5-7% annual adjusted EPS growth through 2027, using 2024 as the base year for guidance.
Regulatory Construct – Rates Effective Jan 1, 2025 - 9.5%–11.5% approved ROE - 54% approved equity - $11.1 billion rate base
AI summary The regulatory construct outlines the approved return on equity (ROE) range of 9.5%–11.5%, an approved equity percentage of 54%, and a rate base of $11.1 billion effective January 1, 2025.
Regulatory Construct - 8.75%–9.25% approved ROE - 40% approved equity - $5.7 billion rate base
AI summary The regulatory construct includes an approved return on equity range of 8.75%–9.25%, 40% approved equity, and a rate base of $5.7 billion.
Regulatory Construct - 8.75%–9.25% approved ROE - 30% approved equity - $1.6 billion rate base
AI summary The regulatory construct includes an approved return on equity (ROE) range of 8.75%–9.25%, an approved equity percentage of 30%, and a rate base of $1.6 billion.
Regulatory Construct - 9.15%-11.15% approved ROE - 54.7% approved equity - $2.4 billion rate base
AI summary The regulatory construct outlines an approved return on equity range of 9.15%-11.15%, an approved equity percentage of 54.7%, and a rate base of $2.4 billion.
Regulatory Construct - 9.375% approved ROE - 52% approved equity - $0.9 billion rate base
AI summary The regulatory construct outlines an approved return on equity (ROE) of 9.375%, an approved equity of 52%, and a rate base of $0.9 billion.
Regulatory Arrangements Reached an unopposed settlement agreement which included $30M of new base rates, effective October 1, 2024. Rates set on a 9.375% ROE and 52% equity, unchanged from current. Settlement makes weather normalization me...
AI summary An unopposed settlement agreement was reached, setting new base rates of $30M effective October 1, 2024, with a 9.375% ROE and 52% equity. The weather normalization mechanism was incorporated into a normal tariff, and final regulatory approval was granted on July 25, 2024.
Regulatory Construct BLPC: 10.0% approved return on rate base ($0.5B rate base) GBPC: 8.52% approved return on rate base ($0.3B rate base)
AI summary The document outlines the approved return on rate base for BLPC and GBPC, with BLPC receiving 10.0% on a $0.5B rate base and GBPC receiving 8.52% on a $0.3B rate base.
2. Excludes fuel and storm cost deferrals included in rate base; 3. Reflects the capital asset values of the regulated pipeline investments; 4. Includes net investment in capital leases; 5. USD/CAD exchange rate for 2024 updated to reflect...
AI summary The text provides notes on exclusions and inclusions in rate base calculations, including fuel and storm cost deferrals, capital asset values of regulated pipeline investments, net investment in capital leases, and an updated USD/CAD exchange rate for 2024.
New Mexico Gas Forecast In millions of USD 2024A 2025F Capital Forecast $130 $85 Rate Base Forecast $835 $970 Announced agreement for sale of NMGC on August 5, 2024. The sale is pending regulatory and other approvals and is expected to clo...
AI summary The document provides a forecast of capital and rate base for New Mexico Gas Company (NMGC) in 2024 and 2025, along with an announced agreement for the sale of NMGC pending regulatory approvals and expected to close in early 2026.
Nova Scotia Powerata Glance 1 Regulated integrated electric utility serving the province of Nova Scotia $4.6B 2022 Average Rate Base $131M 2022 Net Income 8.6% 2022 Earned ROE 541K Customers 1.1% Customer Growth CAGR 2020 – 2022 40%+ Renew...
AI summary Nova Scotia Power is a regulated integrated electric utility serving Nova Scotia with a 2022 average rate base of $4.6B, net income of $131M, and an earned return on equity of 8.6%. It serves 541K customers with a customer growth CAGR of 1.1% and expects over 40% renewable energy by 2023.
Financial Performance - Growing cash flow profile supported by strong customer growth and tax benefits in support of energy storage investments - Adjusted cash flow to debt of 10%+ and EBIT coverage ratio of 1.6x+ throughout 2023-2025 fore...
AI summary The financial performance section highlights strong cash flow supported by customer growth and tax benefits for energy storage investments. It includes a forecast of adjusted cash flow to debt of 10%+ and EBIT coverage of 1.6x+ through 2025, with a 1.8% base rate increase starting in 2023, while noting regulatory constraints on capital structure.
Update on Progress in 2023 Last year we highlighted Management's planned actions and next steps for 2023. We have executed against this plan and have and have improved and stabilized both the business and financial risk profiles of NSPI: -...
AI summary NSPI has stabilized its business and financial risk profiles in 2023 by receiving UARB approval for the GRA settlement, aligning with the Province on decarbonization mandates, securing government funding for prior period fuel costs, and focusing capital investments on reliability.
Nova Scotia Power at a Glance 1 Regulated integrated electric utility serving the province of Nova Scotia $5.4B 2023 Average Rate Base $141M 2023 Net Income 8.25 % 2023 Earned ROE 549K 3.4% Residential Sales (GWh) CAGR - 2021 – 2023 43% Sa...
AI summary Nova Scotia Power is a regulated integrated electric utility serving Nova Scotia. Key figures include a 2023 average rate base of $5.4B, net income of $141M, and an earned ROE of 8.25%. Renewable energy accounted for 43% of sales in 2024. The company serves approximately 549K customers.
Update on Progress in 2024 Last year we highlighted Management's planned actions and next steps for 2024. We have executed against this plan and have improved and stabilized both the business and financial risk profile of Nova Scotia Power...
AI summary Nova Scotia Power has made progress in 2024 by negotiating federal and provincial funding for prior period fuel costs, securing a loan guarantee increase, and receiving approvals for capital investments and a storm rider. They are also working on the 2030 Clean Power Plan and preparing for a General Rate Application expected to take effect in 2026.
VISIBLE GROWTH PLAN $20B capital investment plan through 2029, focused on grid reliability, resiliency & modernization, system expansion to meet customer growth, renewable integration, technology and customer-facing solutions 7% to 8% annu...
AI summary The VISIBLE GROWTH PLAN outlines a $20 billion capital investment strategy through 2029, emphasizing grid reliability, resiliency, modernization, system expansion, renewable integration, technology, and customer-facing solutions. The plan forecasts an annualized rate-base growth of 7% to 8%.
ACTIVITIES OF THE AUDIT COMMITTEE IN 2024 The Audit Committee met five (5) times in 2024. In accordance with its mandate as set out in the Audit Committee Charter, the Audit Committee performed the following key functions in 2024: - 1. Rev...
AI summary The Audit Committee met five times in 2024 and performed various functions including reviewing accounting and disclosure issues, credit and market price risk reports, tax reports, compliance reports, and financial statements. They also evaluated the performance of the Chief Financial Officer and external auditors, and approved updates to internal audit policies and fees for EY.
3.1 Message from the Management Resources and Compensation Committee to Our Shareholders Dear Shareholder. In 2024, the Emera team made significant progress in advancing the corporate strategy through the execution of key transactions, inc...
AI summary The Management Resources and Compensation Committee (MRCC) outlines Emera's executive compensation strategy, emphasizing alignment with performance, share price, and corporate objectives. The MRCC oversees compensation programs and ensures compliance with governance principles and regulations.
N-22NSPI (Cleary) RIR 1-11 - Redacted
28 passages
NSPI's fuel stability plan approved by the Nova Scotia Utility and Review Board (UARB) in Dec. 2019 covers only the fuel component with an average base rate increase of about 1.5% each year through 2022. The increase in base rates do not c...
AI summary NSPI's fuel stability plan, approved in 2019, only covers the fuel component with a 1.5% annual base rate increase through 2022, not the non-fuel component. NSPI plans to file new base rates for non-fuel costs in 2023, which may pressure credit metrics due to capital spending exceeding depreciation. NSPI also lacks geographic and regulatory diversity, relying heavily on the UARB for credit quality.
Credit Highlights Overview Key strengths Key risks Low-risk, vertically integrated regulated electric utility with no exposure to nonutility operations. High reliance on riskier coal-based generation. Generally credit-supportive regulatory...
AI summary Nova Scotia Power (NSPI) is a low-risk, vertically integrated utility with a credit-supportive regulatory framework, but faces challenges due to reliance on coal-based generation and financial metrics at the lower end of the risk profile. The fuel stability plan covers only the fuel component, with base rates increasing by 1.5% annually through 2022, and regulatory lag may occur if variances arise. NSPI is expected to file for new base rates for the nonfuel component by 2023, which could alleviate financial pressure.
2026-2027 GRA Cleary IR-1 Attachment 5 Page 2 of 10 REDACTED (CONFIDENTIAL INFORMATION REMOVED) Nova Scotia Power Inc. NSPI is a lower-risk, regulated, vertically integrated utility that operates under a generally supportive framework. The...
AI summary Nova Scotia Power Inc. (NSPI) is a low-risk, regulated utility operating under supportive mechanisms like the fuel adjustment mechanism (FAM). NSPI filed an updated fuel stability plan with a 2.9% annual base rate increase through 2024, and faces challenges due to limited geographic and regulatory diversity, impacting its credit quality and dependence on the Utility and Review Board (UARB).
Rating Update (CONTINUED) mechanism. Fuel costs are also subject to an independent audit by the NSUARB that could potentially disallow a portion of the fuel-related costs. The Company's BRA also reflects the challenges associated with NSPI...
AI summary The rating update discusses NSPI's challenges with high electricity rates, potential cost recovery issues, and compliance with federal coal phase-out plans. It also notes that operating cash flow supports capex and that NSPI will manage dividends to maintain its debt-to-capital ratio within regulatory limits.
Regulatory Environment Assessment Criteria 1. Deemed Equity Ratio Score Excellent Good Satisfactory Below Average Poor Analysis NSPI's target regulated ROE is based on an actual five-quarter average regulated common equity component of up...
AI summary The document assesses the regulatory environment, focusing on NSPI's financial metrics such as return on equity, coverage ratios, and profitability. It highlights the target regulated ROE based on a five-quarter average and provides detailed financial data, including cash flow, dividend payout ratios, and EBITDA margins.
mix when the Muskrat Falls project starts producing full power (expected in early 2020). NSPI expects to recover prudently incurred costs associated with the program through the regulatory framework. NSPI's business risk assessment (BRA) o...
AI summary NSPI expects to recover costs through the regulatory framework, citing a low business risk assessment. Fuel costs are subject to audit by NSUARB, and NSPI's high electricity rates may hinder timely cost recovery. NSPI plans to maintain its debt-to-capital ratio within regulatory limits through flexible dividend policies.
Summary - The Company operates under a COS model wherein NSPI is allowed to recover all prudently incurred costs from providing electricity and earnings are primarily impacted by the range of ROE and capital structure approved by the NSUAR...
AI summary NSPI operates under a COS model, recovering prudently incurred costs and earning a maximum allowed ROE of 9.25% as determined by the NSUARB. Fuel costs increased in 9M 2018 due to higher commodity prices and interim payments. NSPI uses a FAM to recover fuel costs from customers. Earnings above the ROE band are directed to the FAM per the Electricity Plan Act.
Earnings and Outlook 9 months September 30 12 months September 30 For the year ended December 31 (CAD millions) 2019 2018 2019 2018 2017 2016 2015 2014 Revenues 1,066 1,055 1,451 1,440 1,338 1,356 1,417 1,348 Fuel cost1 (480) (460) (659) (...
AI summary The document presents financial data for Nova Scotia Power Inc. (NSPI) over multiple years, including revenues, fuel costs, net revenues, operating costs, and net income. It also outlines the regulated rate base and actual return on equity, highlighting key financial performance metrics and adjustments.
Outlook • While NSPI has not proposed an increase to its non-fuel rates in 2020, DBRS Morningstar expects net income to grow modestly over the medium term because of the Company's focus on improving operating efficiency and modest rate bas...
AI summary NSPI has not proposed a non-fuel rate increase in 2020, but DBRS Morningstar anticipates modest net income growth due to improved operating efficiency and modest rate base growth, with expectations of achieving the actual target regulated ROE of 8.75% to 9.25%.
Financial Profile 9 months September 30 12 months September 30 For the year ended December 31 (CAD millions) 2019 2018 2019 2018 2017 2016 2015 2014 Net income before non-recurring items 103 103 131 131 129 130 139 133 Depreciation & amort...
AI summary The financial profile outlines key financial metrics for Nova Scotia Power Inc. (NSPI) over multiple years, including net income, depreciation, capital expenditures, free cash flow, and debt levels. It highlights trends in financial performance and capital structure, with notes on adjustments related to the fuel adjustment mechanism and other factors.
2019 Summary - Earnings for NSPI have been relatively stable, reflecting the regulated nature of its operations. - DBRS Morningstar notes that NSPI has a FAM in place that allows the Company to recover actual fuel costs from customers thro...
AI summary NSPI's 2019 earnings were stable due to its regulated operations and the FAM, which allows recovery of actual fuel costs. EBITDA and EBIT decreased due to lower sales volumes and higher depreciation, but net income increased from a tax recovery. NSPI continued to earn its maximum allowed ROE of 9.25% based on NSUARB calculations, and surplus earnings were applied to the FAM per the Electricity Plan Act.
Assessment of Regulatory Framework Criteria Score Analysis 7. Stranded Cost Recovery Excellent Good Satisfactory Below Average Poor The NSUARB disallowed the recovery of some, but not a material amount of, fuel-related costs. 8. Rate Freez...
AI summary The document assesses the regulatory framework, noting that the NSUARB disallowed some fuel-related cost recovery, and highlights that residential electricity rates in Nova Scotia are higher than the Canadian average, making cost recovery challenging for NSPI. The balance sheet data shows changes in cash, accounts receivable, and liabilities over different periods.
2021 Summary/Outlook - EBITDA and EBIT decreased for LTM 2021 because of less favourable weather and higher depreciation. - Net income before nonrecurring items was in line with expectations. - Overall, DBRS Morningstar expects NSPI's earn...
AI summary In 2021, NSPI experienced a decrease in EBITDA and EBIT due to less favourable weather and higher depreciation. However, DBRS Morningstar anticipates modest earnings growth year over year, driven by an expanding rate base and operating efficiencies, with NSPI expected to meet its regulated ROE target of 8.75% to 9.25%.
Regulation - NSPI operates under the NSUARB's reasonable regulatory environment using a COS methodology that allows the Company to recover all prudently estimated operating expenses and earn a reasonable return on approved capital investme...
AI summary NSPI operates under the NSUARB's regulatory framework, using a cost-of-service methodology to recover operating expenses and earn a reasonable return on capital investments. The company's target return on equity range is between 8.75% and 9.25%, with recent rates based on a 9.0% return. NSPI files an annual capital expenditure plan with the NSUARB and maintains a fuel adjustment mechanism to manage fluctuating fuel costs.
FAM Balance (CAD millions) 2021 FAM regulatory liability - Balance as at January 1 21 Net under-recovery of current period fuel costs (69) Interest on FAM balance (1) Refund to customers of the reduced Maritime Link assessment recovered in...
AI summary The document provides an overview of the FAM (Fuel Adjustment Mechanism) balance for 2021, including regulatory liability, under-recovery of fuel costs, and an interim assessment payment approved by the NSUARB for the Maritime Link Project. Annual payments for the project were approved for 2020, 2021, and 2022.
Page 9 of 14 Assessment of Regulatory Framework Page 9 of 14 Criteria Score Analysis Page 9 of 14 1. Deemed Equity Page 9 of 14 Page 9 of 14 Excellent Good Satisfactory Below Average Poor NSPI's target-regulated ROE is based on an actual f...
AI summary The document assesses the regulatory framework, focusing on NSPI's target-regulated ROE and common equity ratio. NSPI's ROE range is between 8.75% and 9.25%, with actual ROE historically at the higher end. The common equity ratio used for rate-setting is 37.5%, based on a five-quarter average of up to 40.0%.
Page 11 of 14 Nova Scotia Power Inc. January 4, 2022 Operating Statistics For the year ended December 31 Earnings Quality/Operating Efficiency 2020 2019 2018 2017 2016 Fuel for generation and purchase power/Revenues (%) 48.3 46.4 44.4 35.7...
AI summary The document presents operating statistics for Nova Scotia Power Inc. from 2016 to 2020, including metrics like fuel costs, approved ROE, customer growth, and employee productivity. It also outlines total costs, customer accounts, and rate base figures, providing a detailed view of the company's financial and operational performance over the years.
2021 Summary - Earnings for NSPI have been relatively stable, reflecting the regulated nature of its operations. - DBRS Morningstar notes that NSPI has a FAM in place that allows the Company to recover actual fuel costs from customers thro...
AI summary NSPI's earnings remained stable in 2021 due to its regulated operations and the FAM, which allows recovery of actual fuel costs. EBITDA and EBIT were steady, with higher sales volumes offset by increased depreciation from a growing rate base. Net income before nonrecurring items increased due to higher other income and lower income taxes.
2022 Summary/Outlook - EBIT decreased for LTM 2022 because of higher depreciation. - Net income before nonrecurring items increased though because of higher other income. 2 Adjusted for accumulated other comprehensive income. - DBRS Mornin...
AI summary In 2022, EBIT decreased due to higher depreciation, though net income before nonrecurring items increased due to higher other income. DBRS Morningstar expects NSPI's earnings to be pressured in 2023 and 2024, with base rates limited to a 1.8% increase, but additional DSM and fuel rate increases allowed. NSPI must find operational efficiencies and reduce capex to achieve its allowed ROE.
On December 20, 2023, DBRS Limited (Morningstar DBRS) confirmed the Issuer Rating and Unsecured Debentures & Medium-Term Notes rating of Nova Scotia Power Inc. (NSPI or the Company) at BBB (high), and its Commercial Paper (CP) rating at R-...
AI summary DBRS Limited confirmed Nova Scotia Power Inc.'s credit ratings at BBB (high) and R-2 (high), noting stable trends despite weakened credit metrics due to provincial intervention in the GRA process. The NSUARB approved rate increases for nonfuel, fuel, and DSM costs as part of the 2022 to 2024 GRA settlement.
under an ambitious time frame. Morningstar DBRS will continue to monitor the Company's progress, especially with the release of a Clean Electricity Solutions Task Force report expected early in 2024. Morningstar DBRS had noted in its most...
AI summary DBRS Morningstar has updated its credit rating for NSPI, noting that the company's earnings and credit metrics were affected by the rate cap under Bill 212. Despite this, the current rating remains supportive, and NSPI is expected to manage capex and dividends prudently. Emera Inc. has supported NSPI through equity injections and a flexible dividend policy.
2023 Summary/Outlook - EBITDA and EBIT both increased for LTM 2023 because of a base-rate increase of 1.8% effective February 2, 2023, partly offset by higher operating costs and depreciation. - Reported net income includes a $10 million p...
AI summary In 2023, EBITDA and EBIT increased for LTM 2023 due to a 1.8% base-rate increase effective February 2, 2023, although this was partially offset by higher operating costs and depreciation. NSPI expects ROE to be weaker than the allowed 9.0%, and Morningstar DBRS anticipates no significant improvement in financial performance until the next GRA filing.
Earnings Outlook Earnings for NSPI have generally been very stable, reflecting the regulated nature of its operations. The Company has a FAM in place that allows it to recover actual fuel costs from customers through annual rate adjustment...
AI summary NSPI's earnings have been stable due to its regulated operations and FAM, which allows recovery of actual fuel costs. Earnings increased in 2023 due to a base-rate increase, but ROE was below the approved band. Financial performance is expected to improve only after the next GRA and rate rebase in 2026.
2. Political intervention in the ratemaking process In November 2022, the Province passed Bill 212, which amended the Public Utilities Act to cap the baserate increase for NSPI's most recent GRA at 1.8% during the 2022 to 2024 period, excl...
AI summary In November 2022, Nova Scotia passed Bill 212, amending the Public Utilities Act to cap NSPI's base rate increase at 1.8% and limit ROE and deemed equity. This political intervention is viewed as credit negative due to its impact on regulatory independence and framework stability.
Appendix 2—Regulation - NSPI operates under the NSUARB's regulatory environment using a COS methodology that allows the Company to recover all prudently estimated operating expenses and earn a reasonable return on approved capital investme...
AI summary NSPI operates under the NSUARB's regulatory framework with a target ROE range of 8.75% to 9.25%. In 2022, the Province amended the Public Utilities Act to cap base-rate increases and ROE. NSUARB approved a negotiated settlement for the GRA in 2023, including rate increases and a Storm Rider. NSPI also manages the FAM and submitted a 2024 ACE plan for approval.
Page 12 of 13 Assessment of Regulatory Framework Criteria Score Analysis Page 12 of 13 1. Deemed Equity Page 12 of 13 Page 12 of 13 Excellent Good Satisfactory Below Average Poor NSPI's target-regulated ROE is based on an actual five-quart...
AI summary The document evaluates the regulatory framework for Nova Scotia Power Inc. (NSPI), focusing on deemed equity, allowed return on equity (ROE), energy cost recovery, and political interference. Key points include a cap on deemed equity and ROE under Bill 212, the use of the Fuel Adjustment Mechanism (FAM) for cost recovery, and the impact of political interventions on the regulatory environment.
3 (a) Confirmed. The primary reason for the difference between Concentric's proxy groups for 4 NS Power and NSPML is that NS Power is a vertically integrated electric utility, while 5 NSPML is an electric transmission utility. Therefore, i...
AI summary The difference between Concentric's proxy groups for NS Power and NSPML is due to their distinct business models: NS Power is a vertically integrated electric utility, while NSPML is an electric transmission utility. This distinction influenced the selection criteria for each proxy group.
2026-2027 General Rate Application (M12451) NSPI Responses to CLEARY Information Requests 1 transmission companies, Concentric selected a group of electric T&D utilities, as described 2 in Section 5 of its report for NSPML. This is a relat...
AI summary The document discusses NSPI's responses to CLEARY information requests regarding the 2026-2027 General Rate Application (M12451). It includes details on the selection of a proxy group for the cost of capital analysis and the use of a Multi-Stage DCF model to estimate growth rates and cost of equity for Canadian, U.S., and North American utility groups.
N-27NSPI (NSEB) RIR 1-152 - Redacted (settlement agreement attached at IR-1)
36 passages
Appendix "A" GRA Element Settlement Terms Capital Structure a) An equity thickness of 40% for rate setting purposes will be retained. DSM Rider a) The DSM Rider will be amended as set out in Appendix "C". NS Power will make best efforts to...
AI summary The document outlines settlement terms related to capital structure, the DSM Rider, and the Weather Normalization Mechanism. It retains a 40% equity thickness for rate setting, amends the DSM Rider, and removes the request for approval of the Weather Normalization Mechanism while agreeing to participate in an information session.
REDACTED 2026-2027 GRA NSEB IR-2 Attachment 1 Page 5 of 6 REDACTED (CONFIDENTIAL INFORMATION REMOVED) As at December 31 millions of Canadian dollars 2024 Unregulated Retained Earnings Unregulated retained earnings - December 31, 2023 $181....
AI summary The document provides a detailed breakdown of financial figures related to unregulated retained earnings, property, plant, and equipment, as well as deferred income taxes and related party transactions for the period ending December 31, 2024. Key items include unregulated retained earnings, capital projects, and adjustments related to tax and financing expenses.
Use of Management Estimates The preparation of consolidated financial statements in accordance with USGAAP requires management to make estimates and assumptions. These may affect the reported amounts of assets and liabilities at the date o...
AI summary The preparation of consolidated financial statements under USGAAP requires management estimates and assumptions, particularly in areas such as rate-regulated assets, pension benefits, unbilled revenue, and asset retirement obligations. These estimates are reviewed regularly based on historical experience and current conditions.
Property, Plant and Equipment Property, plant, and equipment ("PP&E") is recorded at original cost, including allowance for funds used during construction ("AFUDC") or capitalized interest, net of contributions received in aid of construct...
AI summary The document outlines the accounting treatment of Property, Plant and Equipment (PP&E), including how costs are recorded, depreciation methods, and regulatory approvals. It specifies that PP&E is recorded at original cost, with depreciation determined by straight-line method and service lives approved by the UARB. Intangible assets are also included in PP&E and subject to amortization.
Allowance for Funds Used During Construction AFUDC represents the cost of financing regulated construction projects and is capitalized to the cost of PP&E until the asset is operational. The Company includes an equity cost component in AFU...
AI summary AFUDC represents the cost of financing regulated construction projects and is capitalized to the cost of PP&E until the asset is operational. The calculation uses a weighted average cost of capital approved by the UARB and is compounded semi-annually.
Cost of Removal The Company recognizes non-ARO costs of removal ("COR") as regulatory liabilities or regulatory assets. The non-ARO COR represents funds received from customers through depreciation rates to cover estimated future non-legal...
AI summary The Company accounts for non-ARO costs of removal (COR) as regulatory liabilities or assets, funded by customer depreciation rates. These costs cover future decommissioning of PP&E, estimated based on historical data and future expectations, and are accrued over the asset's life according to UARB-approved depreciation studies.
Hurricane Fiona: On June 27, 2024, the UARB approved the deferred recognition of $25 million in incremental operating costs incurred during the Hurricane Fiona storm restoration efforts in September 2022. Following the UARB approval, the $...
AI summary The UARB approved the deferred recognition of $25 million in incremental operating costs from Hurricane Fiona's restoration efforts and directed the reclassification of $10 million in undepreciated costs to 'Regulatory assets'. Both amounts will be amortized over 10 years starting July 1, 2024.
FAM: On April 17, 2024, the UARB approved the sale of $117 million of the FAM regulatory asset to Invest Nova Scotia, a provincial Crown corporation. On April 30, 2024, the transaction closed and the $117 million was remitted to NSPI, whic...
AI summary The UARB approved the sale of the FAM regulatory asset to Invest Nova Scotia, resulting in a decrease in the asset and the collection of amortization and financing costs from customers over 10 years. An audit of NSPI's fuel costs found a disallowance of $3 million for fiscal 2020 and 2021, which was returned to customers through the FAM. The audit for fiscal 2022 and 2023 was released, and a regulatory hearing is scheduled for March 2025.
Extra Large Industrial Active Demand Tariff: On July 5, 2023, NSPI received UARB approval to change the methodology by which fuel recovery from an industrial customer is calculated. Due to significant volatility in commodity prices in 2022...
AI summary NSPI received UARB approval in July 2023 to change the fuel recovery methodology for an industrial customer, shifting fuel costs to the FAM. This change, effective January 1, 2022, resulted in a $51 million increase to the FAM regulatory asset and had minimal impact on earnings.
As a result of UARB approved accounting policies and depreciation rates, NSPI recognizes or defers certain costs within "PP&E" that would not otherwise be recognized or deferred in the absence of rate regulation. Cumulative differences bet...
AI summary NSPI's accounting policies and depreciation rates, approved by the UARB, lead to the recognition or deferral of certain costs within PP&E. These differences from USGAAP, including depreciation rates, AFUDC, and overhead costs, cannot be separately determined. The cumulative increase to accretion expense in accumulated depreciation was $1 million as of December 31, 2024.
The expected long-term rate of return on plan assets is based on projected real rates of return for the plan's current asset allocation and assumed inflation. A real rate of return is determined for each asset class. Based on the asset all...
AI summary The document discusses the methodology for determining the expected long-term rate of return on pension plan assets, which considers real rates of return for each asset class, inflation, and expenses. It also explains that discount rates are derived from high-quality long-term Canadian corporate bonds, aligned with the pension plan's cash flow estimates.
As at December 31, 2024, future minimum lease payments to be received for each of the next five years and in aggregate thereafter are as follows: millions of dollars 2025 2026 2027 2028 2029 Thereafter Total Minimum lease payments to be re...
AI summary The text presents a table showing future minimum lease payments to be received by the company for each of the next five years and in aggregate thereafter, as of December 31, 2024. The section title 'RELATED PARTY TRANSACTIONS' suggests that the following content will discuss transactions involving related parties.
FAM Application: On April 17, 2024, the UARB approved the sale of $117 million of the FAM regulatory asset to Invest Nova Scotia, a provincial Crown corporation. On April 30, 2024, the transaction closed and the $117 million was remitted t...
AI summary The UARB approved the sale of $117 million of the FAM regulatory asset to Invest Nova Scotia, which was completed on April 30, 2024. NSPI is now collecting amortization and financing costs from customers over 10 years and remitting the amounts to Invest Nova Scotia quarterly.
Defeasance Upon privatization of the former provincially owned Nova Scotia Power Corporation ("NSPC") in 1992, NSPI was appointed to manage and administer a portfolio of defeasance securities. The securities provide principal and interest...
AI summary The text discusses the defeasance securities managed by Nova Scotia Power Inc. (NSPI) on behalf of Nova Scotia Power Finance Corporation (NSPFC) following the privatization of Nova Scotia Power Corporation in 1992. The securities, totaling $200 million as of 2024, are held in trust and used to service defeased debt, with a significant portion invested in related debt to eliminate risk.
1 4 • The amounts in reference 1 represent the amounts attributable to above-the-line 5 customers (ATL) on a smoothed basis as seen in part (a). 6 • The amounts in reference 2 represent the total fuel and purchased power forecasts for 2026...
AI summary The text references different financial figures related to fuel and purchased power forecasts for 2026 and 2027, distinguishing between above-the-line (ATL) and below-the-line (BTL) customers, and mentions the inclusion of additional fuel costs for four OATT MEUs under the Municipal Tariff.
1 (b) Confirmed. 2 (c) Not confirmed. Load changes can also influence collection amounts. NS Power would be required to update its BCF in 2028 in any event as the GRA Application only resets the BCF in 2026 and 2027. If load were to stay c...
AI summary The text discusses the confirmation of certain matters and the potential need for NS Power to update its BCF in 2028 if load and fuel costs remain unchanged. It also estimates a 10% increase in percentage under specific assumptions.
NON-CONFIDENTIAL treated as a one-time reduction in the carrying balance of the FAM in April 2024. As the interest rate on the repayment of $117 million to Invest Nova Scotia is less than NS Power's weighted average cost of capital, the re...
AI summary NS Power is managing a one-time reduction in the FAM balance due to a repayment to Invest Nova Scotia, which results in lower interest recovery from customers. The repayment is collected on behalf of Invest Nova Scotia, and the amounts are tracked outside the FAM. NS Power anticipates filing an AA/BA Application in Q4 2025 and is working with stakeholders to mitigate rate impacts for the 2026/2027 test period.
1 Request IR-37: 2 3 Reference: Exhibit N-3 GRA Direct Evidence Appendix 5A 4 Prior general rate applications have included a Fuel Update in late August of the filing. 5 a) Please provide the date on which the fuel and purchased power assu...
AI summary The document discusses fuel and purchased power assumptions in a GRA application, referencing a pricing date of October 29, 2024, and explains an increase in O&M costs for NSPML due to submarine cable maintenance activities. It also mentions updated figures and the role of the FAM in balancing variances.
22 (b) Please see the table below: ($ million) 2020 2021 2022 2023 2024 2020-2024 Average 24 government official about the revocation of the pay play referenced in the Nova Scotia 25 Power Incorporated Regulations. 26 27 (f) Please provide...
AI summary The text discusses the revocation of the Senior Officials Pay Plan and its impact on NS Power's rate calculations. NS Power confirmed the amendment of the pay plan, leading to the revocation of the prior version, and used the amended plan to determine recoverable amounts through rates. There were no communications with government officials regarding this change.
specialized tariff and rate work and modelling for specific customers or industries. It is
AI summary The text refers to specialized tariff and rate work and modelling for specific customers or industries, indicating a focus on tailored rate structures and customer-specific pricing models.
Factors Contributing to Performance NSPI is likely a smaller utility with less revenue than many of the utilities in the APQC benchmark and it is likely that other utilities have economies of scale that NSPI does not possess. Definition :...
AI summary NSPI is likely a smaller utility with less revenue compared to other utilities in the APQC benchmark, potentially lacking the economies of scale possessed by larger utilities. The text defines a metric for evaluating IT costs relative to revenue.
2026-2027 GRA NSEB IR-85 Confidential Attachment 1 has been removed due to confidentiality. 1 Request IR-86: 5 NS Power states it intends to file an application seeking approval to decommission the 6 Annapolis Tidal Generation Facility in...
AI summary NS Power plans to file an application in Q4 2026 to decommission the Annapolis Tidal Generation Facility and recover its remaining net book value over ten years. The application will determine the amortization period and cost recovery, which may differ from the 2027 revenue requirement forecast. Additionally, NS Power removed approximately $700 million from its rate base for DDA assets.
2026-2027 GRA NSEB IR-92 Attachment 1 has been filed electronically. 1 Request IR-93: 2 3 Please list all capital items included in the rate base which have not received Final Cost 4 approval from the NSEB. 5 6 (a) Include the approved wor...
AI summary The document discusses a request (IR-93) asking Nova Scotia Power to list capital items in the rate base without Final Cost approval from the NSEB. Nova Scotia Power responds that some projects are not yet complete, making it difficult to determine if Final Cost approval will be needed in the future.
1 Request IR-94: 2 3 With respect to rate base and regulated capitalization, please reconcile the two balances as 4 of the December 31, 2023, and December 31, 2024, year ends. 5 6 Response IR-94: 7 8 Please see below:
AI summary The document includes a request (IR-94) asking to reconcile rate base and regulated capitalization balances for the years ending December 31, 2023, and December 31, 2024, along with a response that refers to providing details below.
9 Rate Base ($ million) 2023 Part VI.1 Tax Adjustment (M12248) 2023 Corrected Net Utility Fixed Assets 4,719.9 4,719.9 Deferred Charges & Credits 404.9 404.9 Long term receivable 82.2 82.2 Allowance for materials and supplies 345.2 345.2 A...
AI summary The text presents a table showing the rate base and related adjustments for 2023 and 2024, including corrections and changes in various line items such as Net Utility Fixed Assets, Deferred Charges & Credits, and Allowance for Working Capital. The Part VI.1 Adjustment (M12248) is referenced as a matter number.
REDACTED 1 Request IR-96: 2 3 Reference: Exhibit N-3 GRA Direct Evidence, 9.3 Maritime Link Capital Applications 4 5 On page 60, NS Power addresses the Board's directive from the 2023-2024 GRA Decision 6 regarding inclusion of four Maritim...
AI summary The document discusses a request for detailed breakdowns of benefits and costs related to the Maritime Link transmission projects, including depreciation, financing costs, and energy purchases. It also asks for estimated costs of energy generation without using Maritime Link energy and capital costs for the projects.
16 17 Capital Project Depreciation Incurred at Net book value at 8 years, starting in 2015 (corrected for removal of Part VI.1 tax transactions from 2022 9 onward, if applicable). 10 11 (b) Please state the allowed range of ROE for each of...
AI summary The text discusses Nova Scotia Power's return on equity (ROE) over the past 10 years, including the allowed ROE range, actual ROE, and equity thickness. It highlights that in 2020, the actual ROE was below the minimum allowed range, and in 2021, the equity thickness was below 40 percent. The ROE figures do not include unregulated costs paid by shareholders, which would further reduce ROE by approximately 50 basis points.
Earnings Outlook Earnings for NSPI have generally been very stable, reflecting the regulated nature of its operations. The Company has a FAM in place that allows it to recover actual fuel costs from customers through annual rate adjustment...
AI summary NSPI's earnings have been stable due to its regulated operations and a Fuel-Adjustment Mechanism (FAM) that recovers fuel costs. Earnings rose in 2023 due to a 1.8% base-rate increase, but ROE was below the approved band. Financial improvement is expected with the next General Rate Application (GRA) in 2026.
2. Political intervention in the ratemaking process In November 2022, the Province passed Bill 212, which amended the Public Utilities Act to cap the baserate increase for NSPI's most recent GRA at 1.8% during the 2022 to 2024 period, excl...
AI summary In November 2022, Nova Scotia passed Bill 212, which amended the Public Utilities Act to cap the baserate increase for NSPI's GRA at 1.8% and limit the allowed ROE and deemed equity. This political intervention is seen as credit negative due to its impact on regulatory stability and independence.
Appendix 2—Regulation - NSPI operates under the NSUARB's regulatory environment using a COS methodology that allows the Company to recover all prudently estimated operating expenses and earn a reasonable return on approved capital investme...
AI summary NSPI operates under the NSUARB's regulatory framework, with a target ROE range of 8.75% to 9.25%. Bill 212 in 2022 imposed caps on base-rate increases and ROE. In 2023, the NSUARB approved a negotiated settlement with a 6.9% average rate increase for 2023 and 2024, including a Storm Rider and a FAM. In 2024, the NSUARB approved a Storm Rider of $24 million and the 2024 ACE plan. NSPI also sold a portion of its FAM asset to the Province and issued debt guaranteed by the federal government.
Page 12 of 13 Assessment of Regulatory Framework Page 12 of 13 Criteria Score Analysis Page 12 of 13 1. Deemed Equity Page 12 of 13 Page 12 of 13 Excellent Good Satisfactory Below Average Poor NSPI's target-regulated ROE is based on an act...
AI summary The document assesses the regulatory framework for NSPI, focusing on deemed equity, allowed ROE, energy cost recovery, capital and operating cost recovery, COS versus incentive rate mechanisms, political interference, stranded cost recovery, and rate freezes. Bill 212 is highlighted as a key legislative change impacting NSPI's regulatory environment and cost recovery mechanisms.
2026 2027 (Percent) (Percent) S&P Credit Metrics GRA Forecast 12.3 12.8 S&P Credit Metrics without Securitization 10.7 11.2 DBRS Credit Metrics GRA Forecast 12.1 12.7 DBRS Credit Metrics without Securitization 10.7 11.1 1 Request IR-123: 2...
AI summary The document discusses significant developments affecting Nova Scotia Power (NS Power) since the 2023-2024 GRA, including the approval of a Fuel Adjustment Mechanism (FAM) Rider, a Supplemental Assessment, changes in the Bank of Canada's overnight rate, the creation of the Nova Scotia Independent Energy System Operator (NSIESO), and NS Power's intention to securitize about $704 million of thermal assets by the end of 2025. It also requests confirmation of the impact of these factors on NS Power's risk profile.
1 NSPI's responsibilities so it can focus on its operations as an integrated 2 utility. Importantly, while the Company will still be required to adhere to 3 climate change regulations and, as the dominant utility in the Province, be 4 invo...
AI summary NSPI's responsibilities are shifting as renewable energy procurement moves to the NSIESO, potentially reducing uncertainty under the RER. NS Power plans to securitize $704 million in thermal assets, which could save customers $90 million over 2026-2027 but may reduce NS Power's earnings by removing a significant portion of its rate base.
NON-CONFIDENTIAL Category ($ Million) 2023 2024 2025 2026 2027 Fuel & Purchased Power $777.0 $509.2 $918.6 $918.4 OM&G 326.0 328.5 351.8 357.9 Demand Side Management 50.0 57.5 63.8 63.8 Expense Depreciation and Accretion 265.4 275.8 282.4...
AI summary The text presents a table outlining financial categories and their values for various years, including Fuel & Purchased Power, OM&G, Demand Side Management, and others. It references a request for information regarding employee transfers from NS Power to the NSIESO and mentions specific exhibits and applications related to the revenue requirement.
1 2027 COSS Change on Total Allocated Costs in $ Million Revenue to Expense Ratio 19 (d) Please outline the amount, by month, that the actual revenue amounts will be 20 measured against in order to calculate any deferral. 21 22 (e) Please...
AI summary The response outlines the ongoing development of the PHP ATL Tariff and the uncertainty in forecasting revenues and costs due to potential differences between assumed and proposed tariffs. The company emphasizes the difficulty in confirming revenue variances until the Board makes decisions on related proceedings.
(a) Please refer to the following figure; only OATT Schedules 5 and 6 are impacted by this change. OATT Revenue (as proposed in 2026-2027 GRA) OATT Revenue (fully cost based) Dollar Impact 24 the-line rate class. The Domestic class share i...
AI summary The document discusses changes in the classification of generation and transmission costs under the proposed Cost of Service Study (COSS) methodology, which shifts more costs to demand classification, affecting the responsibility distribution among rate classes. This impacts OATT Schedules 5 and 6, altering the Domestic class share and reducing the shares of Large Industrial and Large General rate classes in the 3CP metric.
N-44STATE OF CONNECTICUT
PUBLIC UTILITIES REGULATORY AUTHORITY
58 passages
C. CONDUCT OF THE PROCEEDING On October 1, 2024, UI submitted formal notice of its intent to file an application to amend its existing rate schedule. On November 12, 2024, the Company filed the 1 The 9.10% ROE reflects a 47 basis points re...
AI summary The document outlines the procedural steps taken by the Authority in handling UI's application to amend its rate schedules, including hearings, audits, and the submission of motions and briefs. Key events include the filing of the application, revenue audits, public comment hearings, and the issuance of a proposed final decision.
A. SUMMARY Rate base is a fundamental concept of cost-of-service ratemaking. Rate base is the investor-supplied facilities and other investments necessary to supply a utility service to consumers in a safe, reliable, and cost-effective man...
AI summary Rate base is central to cost-of-service ratemaking, representing the capital on which a return is earned. It is determined by proving that the utility's plant is in use and serving the public and that the capital investment was prudent and reasonable. Legal precedents and statutes support this approach.
Table 1: Proposed Pro Forma Rate Base Balances Component End of Test Year (Dec. 31, 2023) ($) Rate Year Beginning ($) Rate Year Ending ($) Rate Year Average ($) Plant-in-Service 2,492,095,978 2,640,121,922 2,739,061,244 2,688,443,466 Accum...
AI summary Table 1 presents proposed pro forma rate base balances, including Plant-in-Service, Accumulated Depreciation, and Other Rate Base components for the test year and rate year periods. The data reflects changes in values over time, with the Rate Base increasing from the beginning to the end of the rate year.
Based on the record evidence, the Authority approves a Rate Year average rate base of $1,354,956,818, an adjustment of $29,690,819, as summarized i[n Table 2,](#page-14-1) below.
AI summary The Authority has approved a Rate Year average rate base of $1,354,956,818, with an adjustment of $29,690,819, as detailed in Table 2.
Table 2: Rate Year Average Rate Base Component Proposed ($) Adjustment ($) Approved ($) Plant-in-Service 2,688,443,466 (86,167,557) 2,602,275,909 Water Heater Rental NBV (11,959,711) - (11,959,711) Accumulated Depreciation (987,931,399) 67...
AI summary Table 2 presents the Rate Year Average Rate Base with various components such as Plant-in-Service, Accumulated Depreciation, and Regulatory Assets. It shows proposed, adjustment, and approved figures, indicating financial changes and adjustments in the regulatory proceeding.
1. Summary of Approved Plant-in-Service The Authority approves plant-in-service of $2,602,275,909. The Company proposes a pro forma Test Year plant-in-service value of $2,492,361,817. [9](#page-15-3) Late Filed Ex. 1, Att. 3 ("3-GrossPlant...
AI summary The Authority approves a plant-in-service value of $2,602,275,909 but rejects $136,785,335 of the Company's requested plant-in-service due to insufficient evidence demonstrating that these projects are used and useful. The Company also proposes various plant additions and a 13-month average for its revenue requirement.
Proposed ($) Adjustment ($) Approved ($) Prior Approved 2,273,831,000 - 2,273,831,000 Net Additions through Test Year 218,530,817 (3,392,530) 215,138,287 Test Year (2023) 2,492,361,817 (3,392,530) 2,488,969,287 Pro Forma Additions 246,699,...
AI summary The table presents financial data related to Plant-in-Service, showing proposed, adjustment, and approved figures for various periods, including the Test Year (2023) and Pro Forma Additions. The data reflects changes in the total Plant-in-Service at the end of the regulatory year.
2. Audit Procedures To investigate the reasonableness of the capital additions proposed by UI, PURA Staff conducted an engineering and accounting audit at the Company's headquarters. The audits were aimed at promoting transparency, verifyi...
AI summary PURA Staff conducted an engineering and accounting audit to assess the reasonableness of UI's proposed capital additions, ensuring transparency, responsible decision-making, and that ratepayers only pay for legitimate and prudent investments. The audit compared plant-in-service balances and reviewed supporting documentation for capital expenditures between September 2022 and December 2024.
3. Plant Model The Company submitted a plant model spreadsheet (Plant Model), which includes calculations of post-Test Year plant-related items, including gross plant, depreciation expense, accumulated depreciation, and depreciation-relate...
AI summary The Company submitted a Plant Model spreadsheet for post-Test Year plant-related calculations, which the Authority validated and identified a discrepancy in the January 2024 balance on the '6-DepreciationExpense' tab. The Company corrected the error, and the Authority adjusted the model accordingly.
a. Summary To determine the Test Year plant-in-service, the Authority adds the amount of prudently completed capital investments made by the Company through the end of the Test Year to the Company's previously approved utility plant. As ex...
AI summary The Authority determines the Test Year plant-in-service by adding prudently completed capital investments to the previously approved utility plant. The Company must demonstrate, by a preponderance of the evidence, that proposed plant-in-service is used and useful and that capital was invested prudently. The Company failed to meet this burden for several projects, leading to adjustments in the Test Year plant-in-service.
r No. 23); Decision, June 30, 2021, Docket No. 20-07-01, PURA Implementation of Section 3 of Public Act 19-35, Renewable Energy Tariffs and Procurement Plans (20-07-01 Decision) p. 54 (Order No. 22)). With respect to the Residential Renewa...
AI summary The Authority ordered UI to recover reasonable and prudently incurred expenses related to the RRES and NRES Programs through the Rate Adjustment Mechanism. UI argues that it does not recover capital costs through RAM and contends that recovery in base rates is appropriate to avoid intergenerational inequities.
iii. Municipal Dashboard In the instant proceeding, the Company seeks to include capital expenditures related to Project No. PRJ-002266, the municipal dashboard (Dashboard), in rate base. Interrog. Resp. RSR-251. The Dashboard is an online...
AI summary The Company is seeking to include capital expenditures for the municipal dashboard in rate base. However, the Authority denied this request, citing prior approval of the Dashboard as an operating expense and warning against segmenting project costs across multiple rate cases.
iv. Pole Attachment Make-Ready Capital Costs UI seeks to include $23,556,152 in capital additions in rate base relating to Project No. PRJ-002110, "Make Ready Cap – Pole Attachments" for costs incurred by the Company to perform engineering...
AI summary UI seeks to include $23.5 million in capital additions in rate base for pole attachment make-ready work, arguing it aligns with state broadband expansion goals. OCC recommends disallowing the full amount, claiming the costs should be borne by new attachers rather than ratepayers.
v. Barnum Avenue Bridge Replacement Project UI seeks to include $16,906,514 of capital additions in rate base relating to Project No. 801941.01, the Barnum Avenue Bridge Replacement Project, for costs incurred by 15 OCC refers to the gross...
AI summary UI seeks to include $16,906,514 in capital additions in the rate base for the Barnum Avenue Bridge Replacement Project, which involved underground system upgrades and conduit installations to support future capacity and reliability and avoid future traffic disruptions and roadway repairs.
vi. New Congress Getaway South The Company seeks recovery of $3,662,777 for Project No. PRJ-003425, relating to plant additions associated with the installation of duct infrastructure under a floodwall near the New Congress substation. [19...
AI summary The Company is requesting recovery of $3,662,777 for a project involving duct infrastructure installation near the New Congress substation. The Office of the Chief Counsel (OCC) argues that no energized cables are currently in the ducts and that a portion of the project may be reimbursable by NuPower, suggesting that general ratepayers should not bear the full cost.
a. Summary The Authority permits utilities to make pro forma adjustments to the test year plantin-service for plant additions identified in the application but made after the test year. Specifically, a utility is permitted to include new p...
AI summary The Authority allows utilities to adjust the test year plantin-service for plant additions made after the test year, provided they are used and useful and costs were prudently incurred. The Company proposed significant adjustments but failed to quantify savings or risks, and must provide this information in future requests. The Authority approved a portion of the requested adjustments.
i. Rider LIDR (PRJ-003494) The Company seeks to recover net plant additions of $944,477, related to the Rider LIDR Project (PRJ-003494). Late Filed Ex. 1, Att. 3 ("3-GrossPlant" and "4.1- PlantAdditionsDetail Update" tabs). The Company sta...
AI summary The Company requests to recover $944,477 in costs related to the Rider LIDR Project, which involves SAP upgrades for implementing the Low-Income Discount Rate. However, this request conflicts with a prior Authority order that estimated LIDR implementation costs between $0 and $700,000 and directed the Company to seek recovery through the applicable Rate Adjustment Mechanism (RAM) proceeding.
c. Future or Incomplete Plant The Company proposed a pro forma adjustment of $132,458,039[26](#page-29-3) for net plant additions projected to be made in the Future Period, after the record closed in this proceeding and continuing through...
AI summary The Company proposed a pro forma adjustment for future plant additions, but the Authority rejected it, stating that rate base should only reflect prudently invested capital currently serving the public interest. The inclusion of forecasted plant additions was deemed inappropriate as they are not yet used or useful in the public service.
C. ACCUMULATED DEPRECIATION The Company proposes an average Rate Year balance for accumulated depreciation of ($987,931,399). Late Filed Ex. 1, Att. 2 Supp., Sch. B-1.0. As shown in [Table 6,](#page-29-2) below, the Authority approves an a...
AI summary The Company proposes an average Rate Year balance for accumulated depreciation of $987,931,399. The Authority approves an average balance depreciation reserve of $920,100,925, which includes an adjustment of $67,830,475.
Table 6: Accumulated Depreciation Summary Description Proposed ($) Adjustment ($) Approved ($) Average Balance Accumulated Depreciation Reserve (987,931,399) 67,830,475 (920,100,925) 26 The adjustment of $132,458,039 was determined by remo...
AI summary The document discusses the adjustment to accumulated depreciation, specifically removing plant additions after May 1, 2025, due to lack of evidence in the record. It references the depreciation reserve, its calculation, and adherence to NARUC guidelines.
The Authority may calculate the depreciation reserve to include all depreciation that occurs through the beginning of the Rate Year (i.e., November 1, 2025), because the Company's rate base does not cease depreciating at the close of the e...
AI summary The Authority discusses the calculation of accumulated depreciation for rate base purposes, referencing a Connecticut court case and the need to balance consumer and company interests in setting just and reasonable rates.
b. Lead/Lag Study For purposes of calculating its proposed cash working capital allowance in the instant proceeding, UI relied on a lead-lag study that was originally developed for Docket 28 The Authority applied the adjustments consecutiv...
AI summary The document discusses a lead-lag study used by UI to calculate its cash working capital allowance, referencing a study from Docket No. 22-08-08. The study explains the lag period for revenues and the lead period for expenses, with the lag measured in days between service delivery and payment receipt, and the lead measured between receipt of goods/services and payment.
i. Non-cash Items In its calculation of CWC, the Company included non-cash items, such as depreciation, amortization expense, and deferred taxes. Ex. UI-RRP-1, pp. 123–124. OCC argued that non-cash expenses should not be part of the calcul...
AI summary The document discusses the calculation of Cash Working Capital (CWC) and the inclusion of non-cash items such as depreciation and amortization. The Company argues for Approach 2, which includes non-cash items, while the Authority finds Approach 1, which excludes non-cash items, to be more appropriate. The Authority approves Approach 1, resulting in a significantly lower CWC than the Company's proposed amount.
3. Material and Supplies The Company proposes the inclusion of $6,897,644 for distribution Materials and Supplies (M&S) in the working capital balance for Rate Year 2025/2026. The Company recorded distribution M&S of $7,940,791 in the Test...
AI summary The Company proposed a distribution Materials and Supplies (M&S) amount of $6,897,644 for the working capital balance in Rate Year 2025/2026, but the Authority approved a lower amount of $4,994,529 after adjustments.
1. Summary The Company proposes regulatory liabilities with a total rate year average of $92,304,872 (($103,985,756 + $80,623,985) / 2) to reduce the Company's rate base. Late Filed Ex. 1, Att. 2 Supp.; Sch. B-1.0; Sch. B-8.0; Sch. WP C-3....
AI summary The Company proposes regulatory liabilities of $92,304,872 to reduce its rate base, but the Authority approves a lower amount of $29,918,723, treating certain costs as O&M expenses and amortizing them outside the rate base, including storm reserve, OPEB deferral, pension liabilities, and fee-free program deferral. The Authority also considers the $14,700,000 bad debt reserve as an offset to the rate base.
2. Allowance for Bad Debts The Company proposed a pro forma adjustment to zero out the $14,700,000 Test Year allowance for bad debts in UI's proposed rate base. Sch. B-8.0. The Authority disallows the Company's pro forma adjustment to remo...
AI summary The Company proposed removing $14,700,000 from the Test Year allowance for bad debts in the rate base, but the Authority rejected this adjustment. UI argued that the removal was not due to double counting but to align with previous practices, citing precedents from its gas affiliates. The Authority noted that the uncollectible expense reflected in the working capital calculation only accounted for about 30% of the total annual uncollectible expense.
F. REGULATORY ASSETS The Company proposes including regulatory assets with an average Rate Year balance of $55,863,788 in rate base. The Authority instead allows costs relating to the regulatory assets contained in [Table 14, below,](#page...
AI summary The Company proposes including regulatory assets with an average Rate Year balance of $55,863,788 in rate base. However, the Authority allows these costs to be treated as O&M expenses and amortized outside of rate base, as outlined in Section VI.
G. PREPAID EXPENSES UI proposed and included in rate base a Rate Year average balance of $4,485,635 for prepaid expenses or prepayments, which includes $2,581,320 for prepaid software maintenance costs as well as costs related to the PURA...
AI summary The document discusses the inclusion of prepaid expenses in the rate base, including $4,485,635 proposed by UI, with specific amounts for software maintenance and the PURA Assessment. The Authority disallows part of these expenses, approving $2,804,764 and rejecting $1,680,871, citing overlaps and uncollectible expenses.
Category Identifier Amount ($) 2023 Ending Balance A 3,544,347 2024 Proforma Adjustment B (166,986) 2024 Amortization Expense C (988,966) 2025 10-Month Amortization Expense (October)1 D (531,332) Balance as of November 1, 2025 E=A+B+C+D 1,...
AI summary The text presents a financial summary of expenses and balances related to amortization and software maintenance in a regulatory proceeding. It includes adjustments for 2024 and 2025, distribution portions, and proposed changes to the average software maintenance in the rate base.
1. Summary The Company proposed a total rate base balance of $36,575,480 related to deferred expenses and credits. The Authority will exclude $36,575,480 of the Company's deferred expenses from rate base, as summarized in [Table 18, below....
AI summary The Company proposed a rate base balance of $36,575,480 for deferred expenses and credits. However, the Authority will exclude this amount from the rate base and instead allow recovery of $28,942,312 as amortized O&M expenses.
1. Summary The Company proposes net accumulated deferred income taxes (ADIT) of $317,795,723 to offset rate base proposed for the Rate Year. Late Filed Ex. 1, Att. 2 Supp.; Sch. B-7.0; Sch. WP B-7.0. The ADIT amount represents the average...
AI summary The Company proposes using net accumulated deferred income taxes (ADIT) of $317,795,723 to offset the rate base for the Rate Year. The ADIT amount is the average of the beginning and ending balances. The Authority will adjust this amount by $1,017,632.
2. Plant Related Adjustments The Authority utilized the outputs from the Plant Model (modified for PURA adjustments) to calculate a revised Rate Year plant-related ADIT balance. [34](#page-42-3) The Company proposed an average plant-relate...
AI summary The Authority used the Plant Model to calculate a revised Rate Year plant-related ADIT balance, approving an average balance of ($510,590) based on a $3,217,604 adjustment. This reflects the reduction in deferred tax liability from the Authority's adjustments to the Company's plant-inservice.
4. Regulatory Asset/Liability Related Adjustments The Company reports deferred income tax (DIT) asset balances related to regulatory assets and liabilities of $649,895 as of October 31, 2025, and $3,561,820 as of October 31, 2026. Late Fil...
AI summary The document discusses adjustments to the Company's deferred income tax (DIT) assets related to regulatory assets and liabilities, including reductions based on exclusions from rate base and changes in reserves. The Authority reduces the proposed ADIT by a calculated percentage, allowing a final amount of $308,067 in the average rate base.
3-01-19 Decision), pp. 174–175 (Order No. 14). UI further argues that its deferral of infrastructure replacement programs and projects will create another large bubble of projects in future years. Id. Importantly, the Company has an ongoin...
AI summary The document discusses the Company's obligation to prudently invest in infrastructure and comply with regulatory decisions, while highlighting concerns about deferred projects creating future costs. It also references the need for reasonable returns on investments and the importance of ensuring that ratepayers are not unfairly burdened with future capital costs.
1. Summary The Authority finds that a capital structure consisting of 51% common equity and 49% long-term debt is reasonable. The table below summarizes the authorized allocation.
AI summary The Authority determines that a capital structure with 51% common equity and 49% long-term debt is reasonable, as outlined in the summarized authorized allocation table.
Table 27: Approved Capital Structure Capital Component Allocation Common Equity 51% Long-term Debt 49% Total Capitalization 100% 2. Position of the Parties The Company proposes a capital structure consisting of 54% common equity and 46% lo...
AI summary The Company proposes a capital structure of 54% common equity and 46% long-term debt, based on an analysis of the average capital structure of utility operating subsidiaries in its Proxy Group. The approved capital structure in Table 27 is 51% common equity and 49% long-term debt.
a. Approved and Actual Capital Structure The first factor to consider when determining a reasonable capital structure for ratemaking purposes is the approved and actual capital structure of the Company. In both the February 4, 2009, Decisi...
AI summary The document discusses the approved and actual capital structure of The United Illuminating Company, highlighting that while the company has proposed higher equity ratios over time, the Authority has consistently approved a 50% equity and 50% long-term debt structure. The company's actual equity ratio has increased significantly since the last rate case.
b. Proxy Group Capital Structure The second factor to consider when determining a reasonable capital structure for ratemaking purposes is the capital structure of the proxy groups. During this proceeding, two distinct methodologies were us...
AI summary The document discusses two methodologies for calculating the capital structure of proxy group companies. The Company used subsidiary data, resulting in a 52.03% common equity ratio, while OCC and EOE used holding company data, yielding lower averages of 40.90% and a range of 42.40% to 45.90%. The Authority favors holding company data as it reflects optimal capital structures more accurately.
b. English Station The Authority determines that the Company's continuing failure to complete remediation of English Station represents both ongoing non-compliance with a condition of its Authority-approved merger with Iberdrola and defici...
AI summary The Authority criticizes the Company for failing to remediate English Station, leading to non-compliance with merger conditions and poor management. The failure to track labor costs for remediation has led to improper inclusion in base rates. A 10 basis point reduction in allowed ROE is proposed to encourage better management and expedite remediation.
ration of its terms, the Authority made clear that ratepayers were not to bear any future costs associated with English Station other than those related to an environmental bulkhead repair. Id., p. 5. In the present proceeding, the Company...
AI summary The Authority determined that the Company failed to comply with its direction not to recover future costs related to English Station beyond those for environmental bulkhead repair. The Company stopped tracking internal labor costs related to English Station, leading to these costs being recovered through base distribution rates, violating the Authority's orders.
ii. Water Heater Rental Program As also discussed in Section [VI.A.17.j,](#page-185-0) [Water Heater Rental Program,](#page-185-0) below, in the Company's last rate case the Authority ordered UI to close participation to new customers in i...
AI summary The Water Heater Rental Program was ordered to be phased out by the Authority due to its unsustainability. The Company requested a new cost recovery mechanism for the phase-out, but the Authority declined and directed the program's phase-out to be completed by September 1, 2025.
i. Customer Programs The Company proposes $157,409 in customer programs expenses for the Rate Year, which is the Company's $139,572 Test Year expenses plus a $5,978 pro forma adjustment and an $11,859 inflation adjustment. Sch. WP C-3.03....
AI summary The Company proposes $157,409 in customer programs expenses for the Rate Year, including adjustments for inflation and pro forma costs. The Authority allows recovery of $145,550, citing the lack of reasonable justification for the proposed inflation adjustment. The Company disputes the Authority's finding of double counting but provides no supporting evidence.
any's interim rate application in Docket No. 22-08-08, and appellate costs in relation to Docket No. 20-08-03. Late Filed Ex. 44, Interrog. Resp. ADJ-001; Interrog. Resp. ADJ-002; Hr'g Tr., 904:17–25. The Company states that its UPZ progra...
AI summary The Company's UPZ program, in place since 2014, involves trimming trees and limbs near utility infrastructure. The Authority directed the implementation of a new trimming priority sequence and a four-year work plan (2024-2027) with specific budget and cost requirements. The UPZ plan was later determined to comply with these directions.
ii. Interim Period FTEs The Authority finds that the Company's proposed 141 Interim Period FTEs are reasonable. The Company explained that its projection of 69 Interim Period FTEs in its rate application was an accurate estimate at the tim...
AI summary The Authority deems the Company's proposed 141 Interim Period FTEs reasonable but expresses concern about employee transfers between UI and service companies, fearing ratepayers may be compensating UI for temporary transfers. The Company is directed to submit regular compliance filings detailing employee transfers until the next rate amendment.
iv. Vacancy Rate The vacancy rate offset recognizes that, at any given time, some positions are not filled due to the timing of the hiring and replacement process. Here the Company applied a 7.03% vacancy rate, which the Company based on i...
AI summary The vacancy rate offset accounts for unfilled positions due to hiring and replacement timing. The Company used a 7.03% vacancy rate based on its five-year average from 2019-2023, which the Authority found reasonable.
e. 401(k) Expense The Company proposes a 401(k) expense of $3,009,488 in the Rate Year, or $4,799 per employee. Late Filed Ex. 1, Att. 2 Supp., Sch. WP C-3.16f. Based on the evidence presented, the Authority permits the Company to recover...
AI summary The Company proposed a 401(k) expense of $3,009,488 for the Rate Year, but the Authority approved $3,004,689 after determining the per employee expense was reasonable and adjusting for a reduction in Full Time Equivalent (FTE) employees.
i. Summary The Company proposes to recover $3,308,330 in compensation for all executive compensation expense, consisting of $3,075,408 for officers and $232,922 for directors. Late Filed Ex. 23, Att. 1, 2023 Test Year; Hr'g Tr., 526:4–527:...
AI summary The Company seeks to recover $3,308,330 in executive compensation expenses, including $3,075,408 for officers and $232,922 for directors. The Authority approves 75% of this amount, or $2,481,248, to be recovered in base rates. The requested amount includes allocations from ASC and AMC executive compensation to UI.
Table 61: Storm Deferral Refund Expenses Proposed ($) Adjustment ($) Approved ($) Tropical Storm Elsa (7,896) - (7,896) Hurricane Henri 97,782 (10,592) 87,190 Storm Izzy 76,010 (38,427) 37,583 Blizzard 14,656 - 14,656 Flooding Event 1,292,...
AI summary Table 61 outlines the proposed, adjustment, and approved amounts for various storm deferral refund expenses, including Tropical Storm Elsa, Hurricane Henri, Storm Izzy, Blizzard, Flooding Event, and Hurricane Lee, with a total adjustment of $135,172. The section also mentions a carrying charge adjustment related to storm deferral refunds.
In calculating the Storm Deferral Refund balance, the Company included carrying charges on the monthly net balance of storm deferral expenses, storm accrual, and mutual aid reimbursements. Interrog. Resp. EOE-249 Supp. 2, Att. 2, p. 2. The...
AI summary The Company calculated the Storm Deferral Refund balance by including carrying charges on monthly net balances of storm deferral expenses, storm accruals, and mutual aid reimbursements. The Authority found this approach improper, as carrying costs on deferred expenses require explicit prior approval.
FERC Category Proposed (%) Approved (%) Distribution Plant 2.83 2.83 General Plant 5.24 5.24 Intangible Plant 12.50 12.50 To determine the approved depreciation expense, the Authority utilized the Plant Model, which calculates depreciation...
AI summary The Authority used the Plant Model to calculate approved depreciation expense by applying revised depreciation rates to approved plant balances. The approved depreciation expense for the Rate Year was reduced by approximately $2.9 million from the Company's proposed amount of $86,949,214 to $84,026,124.
Table 69: Property Tax Adjustment– Interim Period Plant-in-Service Line Description Value 1 Plant-in-Service Adjustment ($934,766) 2 Months of Depreciation Assumed 21 3 Monthly Depreciation Rate 0.2358% 4 Total Change in Depreciation Reser...
AI summary Table 69 presents the Property Tax Adjustment for the interim period, detailing adjustments to plant-in-service, depreciation reserves, and related financial figures. It includes values such as the Plant-in-Service Adjustment, Monthly Depreciation Rate, and Assessment Adjustment, along with a Composite Distribution Mill Rate and Change in Property Tax Expense.
In the aggregate, the Authority reduces the Company's proposed Rate Year property tax expense by $343,518, resulting in an approved Rate Year property tax expense amount of $43,691,445. This adjustment is shown in [Table 71,](#page-192-3)...
AI summary The Authority has reduced the Company's proposed Rate Year property tax expense by $343,518, resulting in an approved expense of $43,691,445. This adjustment applies to the period from May 2025 through September 2025.
Table 75: Calculation of Interest Synchronization Adjustment Proposed Average Rate Base (A) 1,384,647,638 Adjustment to the Proposed Weighted Cost of LTD (B) 0.0500% Increased to the Allowed Interest Expense (C) 692,324 Adjustment to the P...
AI summary The Authority applies a $3,297 interest synchronization adjustment to align the allowed rate base and weighted cost of long-term debt in the calculation of allowed state and federal income taxes.
Table 76: Approved Revenue Requirement Section Revenue Component Amount ($) IV.A Allowed Rate Base 1,354,956,818 V.A Weighted Average Cost of Capital 7.040% Allowed Cost of Capital 95,388,960 Allowed Expenses: VI.A Operations & Maintenance...
AI summary Table 76 outlines the Approved Revenue Requirement, including the allowed rate base, cost of capital, and various expenses such as operations, depreciation, and taxes. Section VIII introduces the topic of rate design, indicating a focus on how rates are structured.
1. Time of Use Rates In the Company's previous rate case, the Authority directed the Company to propose TOU rates with a shorter, more concentrated on-peak time, an appropriate price differential between on- and off-peak rates consistent w...
AI summary The Company's proposal for Time of Use (TOU) rates includes near-term opt-in rates and end-state opt-out rates, but lacks a concrete implementation date. It also proposes using the ACOSS results to allocate revenue requirements, though the Authority identified anomalies in the rate design model.
2. New Rate Recommendation The Authority is satisfied with the Company's analysis regarding the appropriateness of a new small commercial rate. In the Company's previous rate case, the Authority directed the Company to provide a recommenda...
AI summary The Authority is satisfied with the Company's analysis that a new small commercial rate is unnecessary, as the current GS-GST rate threshold adequately addresses the needs of C&I customers. The Company conducted a sensitivity analysis and subclass ACOSS, which showed similar load factors and average costs across C&I customers. The Authority required the Company to provide histograms and load profile analyses to support its recommendations.
As shown in the [Table 93, below,](#page-231-0) 94.6% of rate GS demand-metered customers' annual maximum peak load demand is at or below 40 kW. Id. Further, using UI's demand frequency distribution data, the total maximum annual billed de...
AI summary The text discusses the distribution of annual maximum peak load demand among rate GS demand-metered customers in Nova Scotia, noting that 94.6% have a demand of 40 kW or less, and 76.3% of the total billed demand comes from customers with a maximum demand of 40 kW or less.
Company shall calculate its distribution wage allocator when proposing base distribution rates such that it does not include SBC, GSC, REI, RDR, CLM, NBFMCC, or other non-distribution profit centers .
AI summary The company is required to calculate its distribution wage allocator when proposing base distribution rates, ensuring that it excludes specific non-distribution profit centers such as SBC, GSC, REI, RDR, CLM, and NBFMCC.
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1.5.8 Specialized Situations This Report sets out a common cost allocation methodology that is intended to cover the great majority of the situations to be faced by a typical distributor. There may be specialized situations for which the R...
AI summary This section outlines a common cost allocation methodology for distributors, noting that it may not cover all specialized situations. It mentions that including generation assets in the rate base is rare and that distributors should use sound practices and explain any uncovered situations in their Filing Summary.
1.6 The OEB Cost Allocation Filing Model The OEB cost allocation review filing model and accompanying instructions are planned for release to all distributors shortly after the issuance of this Report. All licensed electricity distributors...
AI summary The OEB is planning to release a cost allocation review filing model for electricity distributors, with exceptions for certain entities. Most distributors are expected to use the standard model, while others must create their own with Board approval and ensure consistency with the outlined methodology.
1.7 Model Runs to be Filed Distributors will be required to submit a Run 1 and a Run 2 of the filing model. Run 1 will generally be based on the distributor's approved 2006 rate classifications including any approved interim rates. Special...
AI summary Distributors must submit two model runs (Run 1 and Run 2) based on approved rate classifications, with special rules for merging distributors. Run 2 must include specific rate classification changes identified in the report. Model filings should remain consistent, with exceptions documented. Run 3 is optional and must include explanations for changes. Alternative data methods are allowed if better data is available and must be documented.
1.11 Potential Future Implementation in Rates In light of the extensive effort given to this process and the Board's deliberations with respect to the appropriate cost allocation methodology, parties should expect that the Board will give...
AI summary The Board emphasizes the importance of the cost allocation methodology used in this Report, which will heavily influence future rate hearings. Adjustments to cost allocations, rate classifications, or rate design will be determined based on the review of filings and upcoming consultations. Distributors may be required to address specific matters in future rate applications, with potential implementation of new rates as early as May 2008.
2.3.4 Common Separate Rate Classification for Embedded Distributors There are a number of host distributors that are providing a distribution service to embedded distributors. In some cases, host distributors have created a separate rate c...
AI summary The document discusses the need for a common separate rate classification for embedded distributors, noting that some host distributors have already created such classifications or treat embedded distributors as General Service customers. The Board recommends modeling a common classification in Run 2 filings, while acknowledging stakeholder concerns about the cost rationale for separate classifications.
Step 2) CATV Battery Mats For CATV power supplies (excluding any battery mat component), a flat load shape must be used for the present filings. A separate load shape must be applied to the weather-normalized consumption of CATV power supp...
AI summary The document outlines requirements for load shapes related to CATV battery mats in rate filings. Distributors must use a flat load shape for CATV power supplies and a separate load shape for battery mats. Adjustments may be needed for revenue requirement figures if battery mats were not considered in prior filings. A flexible approach is encouraged, with explanations provided in the Filing Summary.
4.1.1.1 Filing Question For future reference, a distributor is asked to identify in its Filing Summary any major changes to its distribution system that may have occurred since its 2006 EDR test year and which could materially impact its c...
AI summary The distributor is requested to identify significant changes to its distribution system since the 2006 EDR test year that could impact cost allocation results, such as the addition of a new customer with a demand exceeding 5,000 kW without a Large User classification.
4.1.2 Direction – Distributors that used a historical test year in the EDR 2006 application For distributors that used a historical test year in their 2006 EDR applications, the underlying 2004 trial balances will be the basis of the cost...
AI summary Distributors that used a historical test year in their 2006 EDR applications must use 2004 trial balances as the basis for cost data, with specific adjustments. Costs related to non-utility operations and non-recurring regulatory accounts should be excluded. Adjustments to distribution rates for smart meters are excluded, and proper cost allocation is emphasized, including moving costs between accounts.
4.1.3 Direction - Distributors that used a forward test year in the 2006 EDR applications For distributors that had earlier filed using a forward test year (i.e. Hydro One Networks Inc., Hydro Ottawa Limited, and Toronto Hydro-Electric Sys...
AI summary Distributors that used a forward test year in their 2006 EDR applications must use the trial balance from the Board-approved 2006 rates for cost allocation filings. They should not make additional adjustments, and must regroup trial balance accounts if detailed information was not provided. Non-utility operations and non-recurring regulatory accounts should be excluded, as well as adjustments for smart meters.
4.1.4 Direction – Distributor(s) that will not have approved 2006 rates at the time of its cost allocation filing In the case of any distributor that does not have approved 2006 rates at the time of its cost allocation filing, the distribu...
AI summary Distributors without approved 2006 rates must use their 2004 trial balance for cost allocation filings. Adjustments include averaging net fixed assets from 2003 and 2004, applying the 2005 MBRR and PILs, and removing non-utility and non-recurring costs. Revenue is based on current approved rates and 2004 customer and usage data.
4.1.5 Note on calculation of Rate Base and Accumulated Depreciation The EDR 2006 filings rate base was defined as the average net book value for the test year. For the purpose of the cost allocation filings, rate base and accumulated depre...
AI summary The rate base and accumulated depreciation for the EDR 2006 filings are calculated based on the average net book value for the test year. A similar approach will be used for cost allocation filings, with data available from the EDR 2006 model.
6.1.1 Background The process of functionalization of costs is an important step in the cost allocation process, as it sets up the framework for the categorization and allocation steps. The functionalization step is the process that groups...
AI summary The functionalization of costs is a key step in the cost allocation process, grouping homogeneous costs into functions. The Uniform System of Accounts (USoA) for Ontario distributors is used to standardize this process. Costs are then categorized as demand-related or customer-related based on factors discussed in Chapter 7.
Functional Approach The bulk, primary and secondary sub-accounts relate to assets associated with performing bulk, primary and/or secondary functions within a distribution system. The key objective of the cost allocation is to allocate cos...
AI summary The document discusses the 'functional approach' for allocating distribution costs based on the functions of bulk, primary, and secondary assets. It emphasizes the importance of cost causality and simplicity in the allocation method, noting that a voltage-based test is not universally applicable. The Board concludes that a functional approach best identifies bulk assets.
6.2.2.2 Direction – Definition of Bulk A functional approach must be adopted towards identifying the assets that may serve a bulk delivery function in some distribution systems. The test to determine if any bulk assets exist in a given dis...
AI summary The document outlines a functional approach to identify bulk delivery assets in distribution systems, emphasizing that assets built to support the system's peak, not the customer's peak, should be classified as bulk assets for cost allocation purposes.
6.4.1 Background This sub-account relates to >50 kV assets deemed by the Board to be distribution. Typically, >50 kV asset is a Transformer Station (TS) that a distributor owns and operates. The costs of these >50kV assets that transform p...
AI summary This section explains that >50 kV assets, such as Transformer Stations, are included in a distributor's distribution rate base. It also notes that if a distributor makes a capital contribution for a Hydro One-owned TS, this is also considered a >50 kV asset included in the rate base.
Alternative Approach If the distributor is not able to use the preferred approach, then the percentage of the gross capital dollars of the assets on which contributed capital was collected must be used to allocate capital contribution to t...
AI summary If a distributor cannot use the preferred approach, they must use the percentage of gross capital dollars of assets on which contributed capital was collected to allocate capital contributions. The distributor will assign contributions to assets outside the filing model and input results into the model's appropriate sheet.
6.7.1 Background For rate setting purposes in the 2006 EDR process, the net fixed assets in the rate base were determined as the average of the opening and closing balances. For cost allocation purposes, the average net fixed assets is bro...
AI summary The 2006 EDR process used the average of opening and closing balances to determine net fixed assets in the rate base. For cost allocation, this average is broken down by USoA account and sub-account, subtracting average accumulated depreciation from average gross fixed assets. However, accumulated depreciation may not be recorded separately for all asset types, nor may annual depreciation be tracked separately.
7.4.2.3 Background - Stratification of Generic Minimum System Results Technical Advisory Team discussions took place on how to fairly and consistently define density for purposes of the cost allocation filings. The question is of practical...
AI summary The document discusses the technical advisory team's efforts to standardize the definition of density for cost allocation filings. It highlights inconsistencies in how different distributors calculate density and outlines the rationale for using road km instead of circuit km. The Board may be asked to consider refining density definitions or stratum boundaries in the future.
9.2 Definition of Customer and Connection for Filings The accounts/sub-accounts that are allocated based on the number of customers or connections in total or in part were listed in Appendices 7.2 and 7.3 . For the purpose of the cost allo...
AI summary The document defines 'customer' and 'connection' for cost allocation filings, using meter points for measured energy consumption and the number of connections for unmetered loads. For street lights, a connection factor may be applied to adjust for overstatement of physical connections.
9.3.2.2 Direction – Allocation of Meter Capital Costs Default installed meter capital costs will be provided for use when allocating meter capital costs. These are listed in Appendix 9.2. A distributor will enter the estimated number of in...
AI summary The document outlines a method for allocating meter capital costs across different rate classifications. It specifies the use of default costs, the inclusion of utility-installed meters, and the calculation of allocation percentages. Flexibility is provided for entering additional meter types if they differ significantly in cost from defaults, and small distributors may need to provide specific information if their costs differ materially.
9.3.4.2 Direction - Allocation of Services Costs The weighted number of customers or connections will be used to allocate costs related to Services (Account 1855). It is intended that the weightings reflect the differing average costs of c...
AI summary The weighted number of customers or connections is used to allocate costs related to Services (Account 1855), with default weighting factors provided in Appendix 9.4. Distributors must use specific weighting factors if their actual costs differ by 10% or more from defaults and provide supporting information. The Filing Summary must indicate if there are no costs in Account 1855 and explain the reason.
10.2.1 Background General Plant includes the capital cost and depreciation (if applicable) associated with buildings, leasehold improvements, land, land rights, general computer equipment, office furniture and transportation equipment. The...
AI summary General Plant refers to capital costs and depreciation related to non-distribution assets essential for a distributor's operations. These costs are typically allocated to customer classifications based on distribution net fixed assets. A stakeholder suggested that fixed assets without adjustment for contributed capital may better reflect the scope of assets supported by General Plant.
10.4.1 Background The working capital allowance forms part of rate base and is the working capital deemed to be required by a distributor to support its operations. For 2006 rates, in most cases the WCA for electricity distributors is 15%...
AI summary The working capital allowance (WCA) is a component of the rate base used by electricity distributors. For 2006 rates, it is typically 15% of the sum of the cost of power and distribution expenses excluding depreciation, though one distributor uses a different Board-approved percentage based on a lead-lag study.
11.1.2 Direction – Cost Allocation and Unit Cost Methodology for Embedded Distributor Classification The cost allocation methodology approved elsewhere in this Report must be applied when allocating costs to this rate classification. The s...
AI summary The text outlines the cost allocation methodology for embedded distributor classifications, requiring the use of a two-part customer unit cost calculation. It emphasizes proper account sub-division and references Chapter 6 for subfunctionalization methods. Alternative methodologies are permitted in Run 3 but must be justified and consistent with sound cost allocation practices.
11.2.1 Background It should be recognized that the average density for some currently-approved rate classifications varies significantly. In some cases, "urban" customers have been defined based on an average customer density higher than 6...
AI summary The document discusses the impact of customer density on cost allocation for rate classifications, noting that urban and suburban classifications have different customer densities. It outlines that density is a direct cost driver but may not be linear, and provides guidelines for cost allocation for distributors with approved density-based rate classifications.
11.5.3.1 Background From a distribution system perspective, LDG service includes a commitment by the distributor to have sufficient conductor and transformation capacity available to meet the load displacement customer's total load require...
AI summary The document outlines the background and methodology for determining distribution rates for LDG (Load Displacement Generation) customers. It emphasizes using cost-based rate information from similar customers and highlights the need to consider additional savings or costs through separate charges or credits. Stakeholders are advised to provide best-efforts estimates and note concerns about data reliability.
11.5.4.2 Direction – LDG Rate Classification Threshold For the purpose of modeling the costs to be allocated to the separate LDG rate classification in Run 2, a customer will not be considered to be part of that separate rate classificatio...
AI summary This section outlines the criteria for classifying customers under the LDG rate classification, specifying that a customer must have standby distribution service requirements greater than 500 kW. It also provides steps for separating costs and revenues associated with LDG customers and guidelines for estimating standby requirements when detailed information is not available.
12.1.1 Introduction The OEB's letter of June 24, 2005 advised that "the cost allocation filings will also contain updated information that is helpful to assess the cost basis of current monthly service charges". The filings will achieve th...
AI summary The OEB's letter highlighted the need for updated cost allocation filings to assess monthly service charges. The project aimed to identify distribution system cost drivers, while considering various rate design factors, including non-cost considerations. The review assumes continuation of a two-part distribution rate structure, but data collected may be relevant to those interested in a one-part structure.
12.2.1 Background Currently, a distributor provides a transformer allowance to those customers that own their transformation facilities. With a few exceptions, the present level of transformer ownership allowance is $0.60 per kW. The amoun...
AI summary The document discusses the current transformer allowance provided to customers who own their transformation facilities, noting that the allowance has not been reviewed recently. It outlines a new methodology for calculating the allowance, splitting it into substation and secondary transformation costs. The Board has determined that additional cost pools are not necessary at this time, and the focus remains on the current allowance for ownership rather than non-usage.
12.2.2 Direction – Updated Unit Cost and Cost Pools Information For the purpose of determining updated unit costs, the starting point will be the standard unit costs that include all costs associated with transformation. The new transforma...
AI summary The document outlines a direction for updating unit costs and cost pools, focusing on transformation ownership allowance calculations and data collection for four specific cost pools by rate classification.
12.2.2.3 Direction - Primary and Secondary Conductors and Poles Cost Pools Calculation Appendix 12.2 sets out the additional information on primary and secondary conductors and poles cost pools to be gathered by the filing model for potent...
AI summary Appendix 12.2 outlines additional information on primary and secondary conductors and poles cost pools for future reference. Further discussions on rate classification and rate design policy are needed before determining how this information may be used.
NB: To use 2006 EDR data when assessing rate classification changes Rate Classification Data Requirements 3a. GS >50 kW – TOU Classification to be eliminated Rename as "Intermediate" if it meets legacy test for intermediate (customer load...
AI summary The document outlines proposed changes to rate classifications, including the elimination of certain classifications and the use of specific data requirements. It discusses the renaming and consolidation of classifications, the use of interval data, and the modeling of unmetered loads. The 2006 EDR data is referenced for assessing these changes.
Proposal - Primary Conductors and Poles Cost Pools Calculation - a) Depreciation on sub-account 1830-4 Poles, Towers and Fixtures Primary - b) Depreciation on sub-account 1835-4 Overhead Conductors and Devices – Primary - c) Depreciation o...
AI summary The proposal outlines the calculation of cost pools for primary conductors and poles, including depreciation, operation and maintenance expenses, rental payments, and allocated general plant and administrative expenses associated with overhead and underground distribution lines and feeders.
Proposal - Secondary Conductors and Poles Cost Pool Calculation The following costs will be included in the secondary conductors and poles cost pool to be generated by the filing model for future reference. - a) Depreciation on sub-account...
AI summary The document outlines the costs to be included in the secondary conductors and poles cost pool, covering depreciation, operation, rental, maintenance, and allocated expenses for overhead and underground distribution lines and related assets.
N-92Compliance Filing - Standardized Filings - Redacted
92 passages
COMPARISON OF REVENUE TO EXPENSE RATIOS 1 FUNCTIONALIZATION OF AVERAGE RATE BASE 2 INITIAL CLASSIFICATION OF AVERAGE RATE BASE 2A FINAL CLASSIFICATION OF AVERAGE RATE BASE 2B ALLOCATION OF AVERAGE RATE BASE 3 ALLOCATION OF AVERAGE DISTRIBU...
AI summary The document outlines various sections related to the analysis of revenue and expense ratios, functionalization of rate bases, classification and allocation of investments in distribution infrastructure, and the breakdown of operating expenses. It includes detailed sections on transmission, distribution, customer service, credit services, depreciation, and storm-related expenses.
N/A 104.38 ( 9) MUNICIPAL 101.83 104.38 (10) UNMETERED 100.00 100.00 (11) TOTAL 100.00 100.00 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 3 of 100 EXHIBIT 2 NOVA SCOTIA POW...
AI summary This document presents a functionalization of the average rate base for Nova Scotia Power Inc. for the year ending December 31, 2026, including various line items such as generation, transmission, distribution, retail, and capital. The table includes categories like municipal and unmetered, with percentages and values provided.
93,310 0 0 0 0 (69) (70) TOT.WORKING CAPITAL 623,811 295,009 47,695 117,206 163,903 -2 (71) (72) (73) TOTAL AVE. RATE BASE $5,564,293 $2,530,770 $953,610 $1,871,743 $206,886 $1,283 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-...
AI summary The document presents a classification of average rate base for Nova Scotia Power Inc. for the year ending December 31, 2026, detailing various financial components such as working capital and total average rate base.
-0 0 0 (55) (56) SUB-TOTAL 0 0 0 0 (57) Transmission - HV 0 0 0 0 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 5 of 100 EXHIBIT 2A Page 2 of 3 NOVA SCOTIA POWER INC. CLASSIF...
AI summary This document presents a classification of Nova Scotia Power Inc.'s average rate base for the year ending December 31, 2026, including demand, energy, and customer-related components, though much of the content is redacted.
(1) Transmission - EHV and HV combined 820,016 820,016 0 0 (2) (3) GENERAL PROPERTY PLANT 85,899 85,899 0 0 (4) TOTAL PLANT IN SERVICE 905,915 905,915 0 0 (5) (6) Working Capital & Deferred Charges/Credits: (7) CASH - FUEL 0 0 0 0 (8) CASH...
AI summary The document presents a financial summary of transmission infrastructure and working capital for a utility, including details on asset retirement obligations and deferred charges related to financing, tax, and pensions.
t 2 Page 6 of 100 EXHIBIT 2A Page 3 of 3 NOVA SCOTIA POWER INC. CLASSIFICATION OF RATE BASE FOR THE YEAR ENDING DECEMBER 31, 2026 (IN THOUSANDS OF DOLLARS) (1) (2) (3) (4) INITIAL CLASSIFICATION DEMAND ENERGY CUSTOMER TOTAL RELATED RELATED...
AI summary This document presents the classification of Nova Scotia Power Inc.'s rate base for the year ending December 31, 2026, with columns indicating total, demand-related, energy-related, and customer-related classifications.
(1) RETAIL FUNCTION (2) (3) DISTRIBUTION PLANT: (4) SERVICES 0 0 0 0 (5) METERS 0 0 0 0 (6) TOTAL RETAIL PLANT 0 0 0 0 (7) (8) GENERAL PROPERTY PLANT 42,983 0 0 42,983 (9) TOTAL PLANT IN SERVICE 42,983 0 0 42,983 (10) (11) Working Capital...
AI summary The text presents a financial summary of the retail function, including distribution plant, general property plant, working capital, and deferred charges. It lists various line items such as cash, materials and supplies, and deferred charges, along with their respective values. The total retail function is reported as $206,880, with a total average rate base of $5,563,003.
TOTAL RETAIL FUNCTION 206,880 0 0 206,880 (23) (24) TOTAL AVE. RATE BASE $5,563,003 $4,225,148 $351,128 $986,728 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 7 of 100 EXHIBI...
AI summary The document provides a classification of the average rate base for Nova Scotia Power Inc. for the year ending December 31, 2026, with figures presented in thousands of dollars. It includes totals for retail function and average rate base, along with various line items and subtotals.
S) (1) (2) (3) (4) (5) (6) (7) (8) (9) INITIAL R/B CLASSIFICATION FURTHER CLASSIFICATION FULLY CLASSIFIED RATE BASE DEMAND ENERGY CUSTOMER DEMAND ENERGY CUSTOMER DEMAND ENERGY CUSTOMER PLANT PLANT PLANT PLANT PLANT PLANT PLANT PLANT PLANT
AI summary The text presents a table with columns labeled 'INITIAL R/B CLASSIFICATION' and 'FULLY CLASSIFIED RATE BASE,' which appears to be related to regulatory proceedings involving classification and rate base calculations. The table includes categories such as 'DEMAND,' 'ENERGY,' and 'CUSTOMER' under both initial and further classifications.
68 0 65,188 78,868 0 (13) TOTAL PLANT IN SERVICE 2,235,761 0 0 -1,224,036 1,224,036 0 1,011,726 1,224,036 0 (14) (15) Rate Base Factors Applicable to Base Cost of Fuel Classification 45.252% 54.748% (16) (17) Working Capital & Deferred Cha...
AI summary The text presents a table with financial data related to total plant in service, rate base factors, and working capital and deferred charges/credits. It includes figures for fuel and other categories, as well as percentages and monetary values.
-0 0 0 0 0 0 -0 0 0 (57) SUB-TOTAL 0 0 0 0 0 0 0 0 0 (58) (59) Transmission - HV 0 0 0 0 0 0 0 0 0 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 8 of 100 EXHIBIT 2B PAGE 2 of...
AI summary This document is a redacted portion of a compliance filing related to the Greenhouse Gas Reduction Act (GRA) for the year ending December 31, 2026. It includes a classification of average rate base for Nova Scotia Power Inc. and appears to be part of a regulatory proceeding.
(IN THOUSANDS OF DOLLARS) (1) (2) (3) (4) (5) (6) (7) (8) (9) INITIAL R/B CLASSIFICATION FURTHER CLASSIFICATION FULLY CLASSIFIED RATE BASE DEMAND ENERGY CUSTOMER DEMAND ENERGY CUSTOMER DEMAND ENERGY CUSTOMER PLANT PLANT PLANT PLANT PLANT P...
AI summary The text presents a table with columns for initial and further classification of rate base components, including demand, energy, and customer plant classifications, as well as fully classified rate base categories.
(1) Transmission - EHV and HV combined 820,016 0 0 0 0 0 820,016 0 0 (2) (3) GENERAL PROPERTY PLANT 85,899 0 0 0 0 0 85,899 0 0 (4) TOTAL PLANT IN SERVICE 905,915 0 0 0 0 0 905,915 0 0 (5) (6) Working Capital & Deferred Charges/Credits: (7...
AI summary The document provides a financial overview of transmission infrastructure, general property plant, and working capital, including deferred charges related to financing, tax, pension, and other categories. All values listed are zero except for specific line items such as materials and supplies, and deferred charges.
NOVA SCOTIA POWER INC. CLASSIFICATION OF AVERAGE RATE BASE FOR THE YEAR ENDING DECEMBER 31, 2026 (IN THOUSANDS OF DOLLARS) (1) (2) (3) (4) (5) (6) (7) (8) (9) INITIAL R/B CLASSIFICATION FURTHER CLASSIFICATION FULLY CLASSIFIED RATE BASE DEM...
AI summary The document presents a classification of Nova Scotia Power Inc.'s average rate base for the year ending December 31, 2026, organized into demand, energy, and customer plant categories, with initial and further classifications provided.
0 0 250 0 0 0 0 0 250 (54) SUB-TOTAL 0 0 163,897 0 0 0 0 0 163,897 (55) (56) TOTAL RETAIL FUNCTION 0 0 206,880 0 0 0 0 0 206,880 (57) (58) TOTAL AVE. RATE BASE $4,225,148 $351,128 $986,728 ($1,177,582) $1,177,582 $0 $3,047,566 $1,528,710 $...
AI summary The document presents a table showing the allocation of average rate base for Nova Scotia Power Inc. for the year ending December 31, 2026. It includes various line items such as sub-totals, totals, and specific figures in thousands of dollars.
EXHIBIT 3 PAGE 2 OF 5 NOVA SCOTIA POWER INC. ALLOCATION OF AVERAGE RATE BASE FOR THE YEAR ENDING DECEMBER 31, 2026 (IN THOUSANDS OF DOLLARS) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) TOTAL SMALL GENERAL SMALL MEDIUM LARGE ALLOCATI...
AI summary This document presents an allocation of the average rate base for Nova Scotia Power Inc. for the year ending December 31, 2026, categorized by different customer segments and industrial classifications, with data presented in thousands of dollars.
4,435 (22) (23) DISTRIBUTION FUNCTION (24) DISTRIBUTION PLANT - Non Streetlight 889,606 608,127 33,734 175,236 10,761 19,612 21,887 9,401 0 2,558 8,289 EXH. 3A (25) DISTRIBUTION PLANT - Streetlight 35,211 0 0 0 0 0 0 0 0 0 35,211 EXH. 3A (...
AI summary The text presents financial and operational data related to distribution plant costs, including non-streetlight and streetlight distribution plant figures, as well as general property plant and working capital charges. It includes various line items and exhibits referenced for detailed breakdowns.
SUB-TOTAL 45,167 30,458 1,688 8,798 619 984 1,118 529 0 147 826 (53) (54) TOTAL DIST. FUNCTION 1,091,895 721,923 40,045 208,048 12,855 23,284 26,004 11,218 0 3,056 45,462 (55) (56) TOTAL DEMAND $3,047,566 $1,978,280 $104,182 $556,089 $52,5...
AI summary The text presents financial data and tables related to the allocation of an average rate base for Nova Scotia Power Inc. for the year ending December 31, 2026, with some portions redacted due to confidentiality.
0 0 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 13 of 100 EXHIBIT 3 PAGE 4 OF 5 NOVA SCOTIA POWER INC. ALLOCATION OF AVERAGE RATE BASE FOR THE YEAR ENDING DECEMBER 31, 2026...
AI summary This document presents an allocation of the average rate base for Nova Scotia Power Inc. for the year ending December 31, 2026, categorized by different customer classes and segments, with values provided in thousands of dollars.
63,282 $97,669 $112,248 $17,385 $11,262 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 2 Page 14 of 100 EXHIBIT 3 PAGE 5 OF 5 NOVA SCOTIA POWER INC. ALLOCATION OF AVERAGE RATE BASE F...
AI summary The document presents a table showing the allocation of average rate base for Nova Scotia Power Inc. for the year ending December 31, 2026, with various categories and subcategories listed in columns.
RETAIL FUNCTION 206,880 159,476 10,726 21,149 2,247 2,741 4,151 4,120 0 773 1,498 (40) (41) TOTAL CUSTOMER 986,728 856,005 50,339 47,671 2,301 7,755 4,583 4,214 2 787 13,069 (42) (43) TOTAL AVE. RATE BASE $5,563,003 $3,597,678 $206,225 $92...
AI summary The text presents a table showing the allocation of average distribution rate base for Nova Scotia Power Inc. for the year ending December 31, 2026, with various line items and totals listed in thousands of dollars. The information is part of a redacted compliance filing under the Greenhouse Gas Reduction Act (GRA).
1,012 0 0 0 0 0 C-2 (51) METERS 70,426 59,176 3,758 5,957 34 1,161 265 64 2 9 0 EXH 3G (52) STREET LIGHTING 35,211 0 0 0 0 0 0 0 0 0 35,211 DIRECT (53) (54) TOTAL AVE. RATE BASE $1,550,189 $1,166,218 $65,496 $196,995 $10,806 $23,728 $22,24...
AI summary The document presents a financial analysis of Nova Scotia Power Inc.'s distribution substation rate base for the year ending December 31, 2026, including breakdowns of various categories such as domestic, small general, and general large.
RATE CLASS DISAGGREGATION ANALYSIS BY FUNCTIONAL AREAS FOR THE YEAR ENDING DECEMBER 31, 2026 CLASS : DOMESTIC RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Costs Unit Cost Demand ($/kW of Class monthly Energy Customer Fuel...
AI summary The document provides a rate class disaggregation analysis for the domestic rate class, breaking down costs into generation, reliability, and total generation for the year ending December 31, 2026. It includes details on rate base, variable and fixed costs, and unit costs for energy and demand.
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2026 CLASS : SMALL GENERAL RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy...
AI summary The document presents a rate class disaggregation analysis for the Small General rate class for the year ending December 31, 2026. It includes details on rate base, variable and fixed costs, and unit costs for generation, reliability, and total generation, along with energy and demand metrics.
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2026 CLASS : GENERAL RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy Custom...
AI summary This document presents a rate class disaggregation analysis for the year ending December 31, 2026, covering general rate classes, including breakdowns of rate base, variable and fixed costs, and unit costs for energy and demand. It includes data on generation, reliability, and total generation costs.
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2026 CLASS : LARGE GENERAL RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy...
AI summary The document presents a rate class disaggregation analysis for the Large General class as of December 31, 2026, detailing rate base, costs, and unit costs for generation, including energy and demand components.
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2026 CLASS : LARGE INDUSTRIAL RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Ener...
AI summary The document presents a rate class disaggregation analysis for the Large Industrial class as of December 31, 2026, breaking down rate base, variable and fixed costs, and unit costs across energy and demand categories.
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2026 CLASS : PHP RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy Customer G...
AI summary This document presents a rate class disaggregation analysis for the PHP class as of December 31, 2026. It includes details on rate base, variable and fixed costs, unit costs, and energy and demand metrics, providing a breakdown of generation-related financial and operational data.
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2026 CLASS : UNMETERED RATE BASE COSTS (Source Exh 6) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy Customer Generation...
AI summary The document presents a rate class disaggregation analysis for the year ending December 31, 2026, focusing on the 'Unmetered' rate class. It details variable and fixed costs, including fuel, operating, capital, and return costs, along with unit costs and energy requirements for generation, transmission, and distribution.
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2026 CLASS : TOTAL COMPANY RATE BASE COSTS (Source Exh 6) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy Customer Generat...
AI summary The document presents a rate class disaggregation analysis for the year ending December 31, 2026, detailing the rate base, costs, and unit costs for different classes within the total company. It includes breakdowns of variable and fixed costs, as well as energy and demand metrics.
COMPANY DOMESTIC GENERAL GENERAL LARGE INDUSTRIAL INDUSTRIAL INDUSTRIAL PHP MUNICIPAL UNMETERED FACTOR (1) POLE&WIRE INV.-DMD. $230,632 $155,449 $8,604 $45,159 $4,056 $5,035 $5,960 $3,284 $0 $964 $2,119 (2) % RESPONSIBILITY 100.00% 67.40%...
AI summary The text presents a table with various cost categories and percentages of responsibility across different customer classes, including Domestic, General, Large, Industrial, Municipal, and Unmetered. The table includes line items such as Pole&Wire Investment - Demand and Customer, Substation, Pole&Wire - Demand and Customer, and associated percentages of responsibility for each category.
100.00% 89.24% 5.08% 3.48% 0.01% 0.66% 0.06% 0.01% 0.00% 0.00% 1.46% P-13 (33) TOT.RATE BASE-DMD. (GEN.) $1,002,060 $643,741 $32,863 $178,332 $20,328 $18,268 $23,482 $36,450 $30,048 $13,888 $4,660 (34) % RESPONSIBILITY 100.00% 64.24% 3.28%...
AI summary The text presents a detailed breakdown of rate base percentages and financial figures for various categories, including generation, high voltage, extra high voltage, and distribution (non streetlight). These percentages indicate the distribution of responsibility across different components of the rate base.
COMPANY DOMESTIC GENERAL GENERAL LARGE INDUSTRIAL INDUSTRIAL INDUSTRIAL ELI 2P-RTP MUNICIPAL UNMETERED FACTOR (1) TOT.RATE BASE-ENG. (HV) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 (2) % RESPONSIBILITY 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%...
AI summary This table presents rate base information across various categories, including domestic, industrial, and municipal sectors. The data includes total rate base amounts and the percentage of responsibility for each category. The table is labeled with references such as P-18A, P-18B, and P-19, which may relate to specific filings or reports.
DEVELOPMENT OF ALLOCATION FACTORS FOR THE YEAR ENDING DECEMBER 31, 2026 (1) (2) (3) (4) (5) (6) (7) TOTAL PROD. TRANS. DIST. RETAIL DIRECT EXPENSES EXPENSES EXPENSES EXPENSES EXPENSES EXPENSES ALLOCATOR (1) LABOUR O&M excluding HR, IT, PR,...
AI summary The document outlines the development of allocation factors for the year ending December 31, 2026, detailing total expenses, revenue requirement before corporate groups, and net plant in service, along with their respective percentages of responsibility across various categories such as production, transmission, distribution, and retail.
(10) Regulatory Amortization (677,610) (677,610) Regulatory Amort. 100.0% K322 (11) Fuel Expense (1,808,772) (1,729,291) ML - NS Block (BCF COSS) 100.0% B8..M8 and B35..M37 (12) FAM Deferral Interest 328,135 343,365 Interest & Other Exp 10...
AI summary The text provides a summary of various financial and regulatory expenses, including regulatory amortization, fuel expense, FAM deferral interest, AMI opt-out charges, and income tax. It outlines figures related to operating expenses and the rate base, indicating financial performance and regulatory considerations.
otal Operating Expenses (10,843,900) (9,863,846) (22) (23) Rate Base TRANSMISSION PLANT net of ECEI batteries and Gen-related (24) Ending PP&E (Transmission) (34,742,827) - - Transmission Assets 100.0% H49 REDACTED (CONFIDENTIAL INFORMATIO...
AI summary The document presents financial data including operating expenses and rate base figures for Nova Scotia Power Inc. for the years ending December 31, 2025 and 2026. It includes a detailed listing of C.O.S.S. input information, though parts of the document are redacted.
(37) T&D Adj. Average RB before T&D Adj. (38) TRANSMISSION PLANT net of ECEI batteries and Gen-related Transmission Assets 720,524 ($176,727) -34,743 897,251 827,837 966,664 (39) TRANSMISSION PLANT - CWIP net of ECEI batteries and Gen-rela...
AI summary The text presents a table with financial figures related to transmission and distribution plant values, including adjustments, capital work-in-progress (CWIP), and average rate base (RB) before adjustments. Key figures include net transmission plant values, CWIP, and average distribution rate base before CWIP for different years.
44,376 37,483 (65) TRANSMISSION 2,906 3,104 2,708 (66) DISTRIBUTION/ TRANSMISSION COMMUNICATION 34,964 32,676 37,252 (67) DISTRIBUTION/ TRANSMISSION NON-COMMUNICATION 48,211 41,591 54,831 (68) RETAIL 42,983 46,109 39,858 (69) NON-FUNCTIONA...
AI summary The text presents a series of numerical entries related to various categories such as transmission, distribution, retail, and general property plant, with values for different years. These figures likely represent financial or operational data for a utility company or regulatory entity.
Line # AVERAGE RATE BASE RATE BASE RATE BASE 2025 2026 (78) WORKING CAPITAL & DEFERRED CHARGES (79) (80) WORKING CAPITAL - CASH FUEL 0 0 0 (81) WORKING CAPITAL - CASH OTHER 162,574 Source: 2014 COSS 187,621 137,527 (82) WORKING CAPITAL - M...
AI summary The text provides a breakdown of working capital and deferred charges for 2025 and 2026, including cash fuel, material and supply fuel, and deferred charges related to financing, tax, and pensions. It includes figures and sources for some line items.
17,353 3,821 (101) CONTRACT RECEIVABLE 93,310 91,290 95,331 (102) Total 623,883 0 -146,018 623,882 652,079 595,686 (103) (104) Percentage of Transmission - EHV 100.00% ARO Total from Continuities Schedule (142,328) (149,707) (105) ARO & CO...
AI summary The text presents financial data including contract receivables, total rate base, and operating expenses. It includes figures related to asset retirement obligations (ARO) and percentages of transmission costs. These numbers are likely part of a regulatory filing or financial report.
Line # AVERAGE RATE BASE RATE BASE RATE BASE 2025 2026 (128) (129) CUSTOMER OPERATIONS: (130) (131) Labour-related O&M (132) GENERATION 67,439.8 67,439.8 (133) TRANSMISSION 20,993.4 (134) DISTRIBUTION 53,606.9 74,600.3 74,600.3 0.0 (135) R...
AI summary The text presents a table with rate base figures for 2025 and 2026, detailing various functional areas such as generation, transmission, distribution, and retail. It also includes corporate groups and their associated costs, including legal services, finance, IT, and human resources. The data reflects changes in expenses and operational costs over time.
Line # AVERAGE RATE BASE RATE BASE RATE BASE 2025 2026 (241) (242) TRANSMSSION NET OF ECEI BATTERIES AND GEN-RELATED ASSETS (243) Transmission - HV 0 0.0 0.0 0 0 0 0 (244) Transmission - EHV 26,220 -333.949 0.0 26,554.0 -9,414 35,968 35,96...
AI summary The text presents a table showing the average rate base and rate base for 2025 and 2026, including details for transmission and distribution assets. It includes values for high-voltage and extra-high-voltage transmission, as well as distribution land, easements, and other categories.
1,825,306.19 1,825,306.19 1,825,306.19 $37,511 (352) (0.000) #REF! #REF! (353) EXPORT SALES - (354) FX Interest (355) (356) FX COST REVENUE OF BTL RATE CLASSES Var (357) SHORE POWER PROD 19.116 19.116 0.000 (358) SHORE POWER TRANS - - 0.00...
AI summary The text presents a financial table with various line items, including shore power, generation replacement, and ELIADC, with associated costs and revenues across different categories such as production, transmission, distribution, and retail. Some entries show variances and include numerical values, while others are marked as zero or not applicable.
(467) CASH WORKING CAPITAL (468) CWC % DISTRIBUTION - DOMESTIC 73.8% (469) CWC % DISTRIBUTION - SMALL GENERAL 5.2% (470) CWC % DISTRIBUTION - GENERAL 12.1% (471) CWC % DISTRIBUTION - GENERAL LARGE 1.4% (472) CWC % DISTRIBUTION - SMALL INDU...
AI summary The text presents distribution percentages and average customer numbers for different customer categories related to cash working capital (CWC) in the Nova Scotia regulatory proceeding. It outlines the allocation of CWC across domestic, industrial, and municipal sectors and provides average customer figures for various years.
COMPARISON OF REVENUE TO EXPENSE RATIOS 1 FUNCTIONALIZATION OF AVERAGE RATE BASE 2 INITIAL CLASSIFICATION OF AVERAGE RATE BASE 2A FINAL CLASSIFICATION OF AVERAGE RATE BASE 2B ALLOCATION OF AVERAGE RATE BASE 3 ALLOCATION OF AVERAGE DISTRIBU...
AI summary The document outlines various sections related to the analysis and allocation of revenue, expenses, and rate bases within a regulatory proceeding. It includes topics such as the classification and allocation of average rate bases, operating expenses, and storm-related expenses and revenue.
USTRIAL 104.38 104.71 ( 8) PHP N/A 104.71 ( 9) MUNICIPAL 104.38 104.71 (10) UNMETERED 100.00 100.00 (11) TOTAL 100.00 100.00 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 3 o...
AI summary The document presents a functionalization of the average rate base for Nova Scotia Power Inc. for the year ending December 31, 2027, including various categories such as generation, transmission, distribution, and retail, as well as capital components.
2,561 -42,561 0 0 0 0 (64) DEF. CR. - ARO Wind -17,384 -17,384 0 0 0 0 (65) DEF. CR. - ARO LM6000 -1,468 -1,468 0 0 0 0 (65) DEF. CR. - ARO CT -6,573 -6,573 0 0 0 0 (66) DEF. CR. - ARO Transformers (TRANS.) -7 0 -7 0 0 0 (67) DEF. CR. - AR...
AI summary The text presents a table with financial data related to asset retirement obligations (ARO) and working capital, including entries for various ARO items such as wind, LM6000, CT, transformers, and substations. It also includes a total average rate base and references a redacted 2026-2027 GRA Compliance Filing.
$2,023,985 $163,819 $1,222 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 4 of 102 EXHIBIT 2A Page 1 of 3 NOVA SCOTIA POWER INC. CLASSIFICATION OF AVERAGE RATE BASE FOR THE YE...
AI summary The document presents a classification of average rate base for Nova Scotia Power Inc. for the year ending December 31, 2027, with columns for demand, energy, and customer-related classifications. The data is in thousands of dollars, but specific details are redacted.
0 (55) (56) SUB-TOTAL 0 0 0 0 (57) Transmission - HV 0 0 0 0 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 5 of 102 EXHIBIT 2A Page 2 of 3 NOVA SCOTIA POWER INC. CLASSIFICATI...
AI summary The document presents a classification of average rate base for Nova Scotia Power Inc. for the year ending December 31, 2027, with sections for demand, energy, and customer-related classifications.
(1) Transmission - EHV and HV combined 1,000,894 1,000,894 0 0 (2) (3) GENERAL PROPERTY PLANT 103,274 103,274 0 0 (4) TOTAL PLANT IN SERVICE 1,104,168 1,104,168 0 0 (5) (6) Working Capital & Deferred Charges/Credits: (7) CASH - FUEL 0 0 0...
AI summary The text presents a financial summary of transmission and distribution functions, including property plant values, working capital, deferred charges, and credits. It lists various line items such as cash, materials, and supplies, along with deferred charges related to financing, tax, and pensions, but does not include any discussion or analysis of these figures.
BIT 2A Page 3 of 3 NOVA SCOTIA POWER INC. CLASSIFICATION OF RATE BASE FOR THE YEAR ENDING DECEMBER 31, 2027 (IN THOUSANDS OF DOLLARS) (1) (2) (3) (4) INITIAL CLASSIFICATION DEMAND ENERGY CUSTOMER TOTAL RELATED RELATED RELATED COMPANY PLANT...
AI summary The document presents a classification of Nova Scotia Power Inc.'s rate base for the year ending December 31, 2027, organized into categories such as demand, energy, and customer-related plant components.
(1) RETAIL FUNCTION (2) (3) DISTRIBUTION PLANT: (4) SERVICES 0 0 0 0 (5) METERS 0 0 0 0 (6) TOTAL RETAIL PLANT 0 0 0 0 (7) (8) GENERAL PROPERTY PLANT 36,737 0 0 36,737 (9) TOTAL PLANT IN SERVICE 36,737 0 0 36,737 (10) (11) Working Capital...
AI summary The text presents a financial summary of the retail function, including distribution plant, general property plant, working capital, and deferred charges. It outlines various line items such as cash, materials and supplies, and deferred charges, with totals provided for each category.
UNCTION 163,816 0 0 163,816 (23) (24) TOTAL AVE. RATE BASE $5,886,058 $4,520,102 $356,798 $1,009,159 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 7 of 102 EXHIBIT 2B PAGE 1...
AI summary The document presents a classification of the average rate base for Nova Scotia Power Inc. for the year ending December 31, 2027, including demand, energy, and customer plant classifications, with figures in thousands of dollars.
of 3 NOVA SCOTIA POWER INC. CLASSIFICATION OF AVERAGE RATE BASE FOR THE YEAR ENDING DECEMBER 31, 2027 (IN THOUSANDS OF DOLLARS) (1) (2) (3) (4) (5) (6) (7) (8) (9) INITIAL R/B CLASSIFICATION FURTHER CLASSIFICATION FULLY CLASSIFIED RATE BAS...
AI summary The document presents a classification of Nova Scotia Power Inc.'s average rate base for the year ending December 31, 2027, organized into demand, energy, and customer plant categories, with initial and further classifications leading to a fully classified rate base.
4,177 0 0 0 0 0 4,177 0 0 (15) DEF. CHG. - FCR 5,240 0 0 0 0 0 5,240 0 0 (16) DEF. CR. - ARO Trans -7 0 0 0 0 0 -7 0 0 (17) SUB-TOTAL 54,778 0 0 0 0 0 54,778 0 0 (18) (19) Transmission - EHV 1,158,946 0 0 0 0 0 1,158,946 0 0 (20) (21) TOTA...
AI summary The document presents a classification of average rate base for Nova Scotia Power Inc. for the year ending December 31, 2027, including various financial line items such as deferred charges, asset retirement obligations, and transmission costs.
FOR THE YEAR ENDING DECEMBER 31, 2027 (IN THOUSANDS OF DOLLARS) (1) (2) (3) (4) (5) (6) (7) (8) (9) INITIAL R/B CLASSIFICATION FURTHER CLASSIFICATION FULLY CLASSIFIED RATE BASE DEMAND ENERGY CUSTOMER DEMAND ENERGY CUSTOMER DEMAND ENERGY CU...
AI summary The text presents a table with classifications for rate base components, including demand, energy, and customer plant categories, for the year ending December 31, 2027. The table includes initial and further classifications, as well as fully classified rate base figures, all in thousands of dollars.
36,737 0 0 0 0 0 36,737 (44) Working Capital & Deferred (45) Charges/Credits: (46) CASH - FUEL 0 0 0 0 0 0 0 0 0 (47) CASH - OTHER 0 0 126,109 0 0 0 0 0 126,109 (48) MAT. & SUPPLIES - FUEL 0 0 0 0 0 0 0 0 0 (49) MAT. & SUPPLIES - OTHER 0 0...
AI summary The document presents a financial table outlining working capital and deferred charges/credits, including categories such as cash, materials and supplies, and deferred charges related to financing, tax, and pensions. The table includes subtotals and totals for the retail function and average rate base.
0 0 0 0 0 163,816 (57) (58) TOTAL AVE. RATE BASE $4,520,102 $356,798 $1,009,159 ($1,111,202) $1,111,202 $0 $3,408,900 $1,467,999 $1,009,159 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attach...
AI summary The document presents an allocation of average rate base for Nova Scotia Power Inc. for the year ending December 31, 2027, with figures in thousands of dollars. It includes totals and various line items, though much of the content is redacted due to confidentiality.
EXHIBIT 3 PAGE 2 OF 5 NOVA SCOTIA POWER INC. ALLOCATION OF AVERAGE RATE BASE FOR THE YEAR ENDING DECEMBER 31, 2027 (IN THOUSANDS OF DOLLARS) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) TOTAL SMALL GENERAL SMALL MEDIUM LARGE ALLOCATI...
AI summary This exhibit presents the allocation of the average rate base for Nova Scotia Power Inc. for the year ending December 31, 2027, categorized by different customer classes and sectors, with figures provided in thousands of dollars.
Transmission - EHV and HV (1) combined 1,000,894 644,399 34,112 177,035 20,280 18,548 21,391 36,357 30,104 13,877 4,792 D-3A (2) (3) GENERAL PROPERTY PLANT 103,274 66,490 3,520 18,267 2,093 1,914 2,207 3,751 3,106 1,432 494 P-8B (4) TOTAL...
AI summary The text presents a table with financial data related to transmission infrastructure, including general property plant, working capital, and deferred charges/credits. It includes various line items such as cash, materials and supplies, and financing and tax-related deferred charges. The data spans multiple years and includes references to different categories and locations.
30,782 1,687 8,449 605 963 992 513 0 144 900 (53) (54) TOTAL DIST. FUNCTION 1,178,642 793,043 43,512 217,068 13,343 24,764 24,979 11,570 0 3,177 47,187 (55) (56) TOTAL DEMAND $3,408,900 $2,228,934 $119,522 $611,549 $58,532 $66,094 $72,645...
AI summary The document presents financial data related to the allocation of average rate base for Nova Scotia Power Inc. for the year ending December 31, 2027, including various cost categories and totals. The information is part of a compliance filing related to the Grid Reliability and Availability (GRA) standards.
0 0 0 0 0 0 0 0 0 0 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 13 of 102 EXHIBIT 3 PAGE 4 OF 5 NOVA SCOTIA POWER INC. ALLOCATION OF AVERAGE RATE BASE FOR THE YEAR ENDING D...
AI summary The document presents a table for the allocation of average rate base for Nova Scotia Power Inc. for the year ending December 31, 2027, with various categories and subcategories listed for different customer classes and types.
055 $42,892 $17,847 $11,471 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026-2027 GRA Compliance Filing - SR-01 Attachment 3 Page 14 of 102 EXHIBIT 3 PAGE 5 OF 5 NOVA SCOTIA POWER INC. ALLOCATION OF AVERAGE RATE BASE FOR THE YEAR...
AI summary The document presents a table showing the allocation of the average rate base for Nova Scotia Power Inc. for the year ending December 31, 2027, with various categories and subcategories of customers and industries.
1,743 2,144 3,220 3,196 0 600 1,223 (40) (41) TOTAL CUSTOMER 1,009,159 882,103 51,797 44,360 1,797 7,494 3,656 3,290 3 614 14,045 (42) (43) TOTAL AVE. RATE BASE $5,886,058 $3,882,682 $224,414 $977,590 $111,986 $111,321 $137,224 $194,927 $1...
AI summary This document presents an allocation of average distribution rate base for Nova Scotia Power Inc. for the year ending December 31, 2027, with figures listed in thousands of dollars. The data includes various line items, though specific details are redacted due to confidentiality.
5,646 0 1,072 0 0 0 0 0 C-2 (51) METERS 68,109 57,177 3,664 5,765 33 1,141 257 62 2 9 0 EXH 3G (52) STREET LIGHTING 36,113 0 0 0 0 0 0 0 0 0 36,113 DIRECT (53) (54) TOTAL AVE. RATE BASE $1,685,267 $1,280,222 $71,748 $207,213 $11,296 $25,42...
AI summary The document presents financial data related to distribution substation rate bases for Nova Scotia Power Inc. for the year ending December 31, 2027, including allocations across various categories such as domestic, general, and industrial.
RATE CLASS DISAGGREGATION ANALYSIS BY FUNCTIONAL AREAS FOR THE YEAR ENDING DECEMBER 31, 2027 CLASS : DOMESTIC RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Costs Unit Cost Demand ($/kW of Class monthly Energy Customer Fuel...
AI summary This document presents a rate class disaggregation analysis for the domestic rate class as of December 31, 2027, detailing the rate base, variable and fixed costs, and unit costs across energy and demand categories.
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2027 CLASS : SMALL GENERAL RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy...
AI summary This document provides a rate class disaggregation analysis for the Small General rate class as of December 31, 2027. It includes details on rate base, costs, and unit costs, with breakdowns of variable and fixed costs, as well as energy and demand-related metrics.
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2027 CLASS : GENERAL RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy Custom...
AI summary This document presents a rate class disaggregation analysis for the year ending December 31, 2027, focusing on the General rate class. It details various costs, including fuel, operating, capital, return, and total costs, along with units sold, demand, and energy metrics for generation, reliability, and total generation.
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2027 CLASS : SMALL INDUSTRIAL RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Ener...
AI summary The document presents a rate class disaggregation analysis for the Small Industrial class as of December 31, 2027, detailing rate base, variable and fixed costs, and unit costs associated with generation, reliability, and total generation costs.
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2027 CLASS : MEDIUM INDUSTRIAL RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Ene...
AI summary This document provides a rate class disaggregation analysis for the Medium Industrial class as of December 31, 2027, detailing rate base, costs, and unit costs associated with generation, including energy and reliability components.
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2027 CLASS : LARGE INDUSTRIAL RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Ener...
AI summary The document presents a rate class disaggregation analysis for the Large Industrial class as of December 31, 2027, detailing rate base, costs, and unit costs associated with generation, including energy and demand components.
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2027 CLASS : PHP RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy Customer G...
AI summary This document presents a rate class disaggregation analysis for the PHP rate class ending December 31, 2027. It details the rate base, variable and fixed costs, unit costs, and energy and demand metrics for generation, including MWh sales, energy requirements, and kW demand.
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2027 CLASS : MUNICIPAL RATE BASE COSTS (Source Exh 6) (Source Exh. 3) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy Cust...
AI summary This document provides a rate class disaggregation analysis for the municipal class as of December 31, 2027, detailing rate base, costs, and unit costs associated with energy and demand. It includes breakdowns of variable and fixed costs, as well as units sold and demand metrics.
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2027 CLASS : UNMETERED RATE BASE COSTS (Source Exh 6) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy Customer Generation...
AI summary This document provides a rate class disaggregation analysis for the year ending December 31, 2027, focusing on the 'Unmetered' rate class. It includes details on variable and fixed costs, unit costs, and energy and demand metrics for generation, transmission, and distribution.
RATE CLASS DISAGGREGATION ANALYSIS FOR THE YEAR ENDING DECEMBER 31, 2027 CLASS : TOTAL COMPANY RATE BASE COSTS (Source Exh 6) Variable Fixed Unit Cost Fuel Operating Capital Return Total Total Cost Units Sold Demand Energy Customer Generat...
AI summary This document provides a rate class disaggregation analysis for the year ending December 31, 2027, detailing the rate base, costs, and unit costs for different classes within the total company. It includes data on generation, reliability, and total generation costs, as well as MWh sales and energy requirements.
100.00% 89.29% 5.12% 3.37% 0.01% 0.65% 0.05% 0.01% 0.00% 0.00% 1.50% P-13 (33) TOT.RATE BASE-DMD. (GEN.) $1,071,311 $689,735 $36,511 $189,491 $21,707 $19,853 $22,896 $38,914 $32,221 $14,853 $5,129 (34) % RESPONSIBILITY 100.00% 64.38% 3.41%...
AI summary The text presents a series of tables with percentages and dollar amounts related to rate base responsibilities across different categories, including generation, high voltage, extra high voltage, and distribution (non streetlight). These figures indicate the distribution of responsibilities and financial allocations among various segments.
COMPANY DOMESTIC GENERAL GENERAL LARGE INDUSTRIAL INDUSTRIAL INDUSTRIAL ELI 2P-RTP MUNICIPAL UNMETERED FACTOR (1) TOT.RATE BASE-ENG. (HV) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 (2) % RESPONSIBILITY 100.00% 52.56% 3.62% 21.91% 3.52% 2.57% 4.15% 6...
AI summary The text presents a table detailing the total rate base and percentage responsibility across various categories such as domestic, general, large industrial, and municipal, with specific figures and percentages for each category. The data is organized by different factors and includes references to P-18A, P-18B, and P-19.
D. TRANS. DIST. RETAIL DIRECT EXPENSES EXPENSES EXPENSES EXPENSES EXPENSES EXPENSES ALLOCATOR (1) LABOUR O&M excluding HR, IT, PR, OTHER and direct 201,262 87,649 22,398 57,115 34,100 - (2) % RESPONSIBILITY 100.00% 43.55% 11.13% 28.38% 16....
AI summary The document presents a detailed breakdown of various expense categories, including labour, revenue requirement, and insurance premiums, with percentages of responsibility allocated across different segments. It includes figures related to net plant in service and compliance reporting, along with footnotes for reference.
(10,843,900) (9,863,846) (22) (23) Rate Base TRANSMISSION PLANT net of ECEI batteries and Gen-related (24) Ending PP&E (Transmission) (34,742,827) - - Transmission Assets 100.0% H49 REDACTED (CONFIDENTIAL INFORMATION REMOVED) REDACTED 2026...
AI summary This document presents a detailed listing of input information for the year ending December 31, 2027, focusing on the average rate base and related financial metrics for Nova Scotia Power Inc.
Average Distr. RB (31) T&D Adj. Distr. CWIP 2026 2027 before CWIP & T&D Adj. (32) DIST.PLT.- LAND $5,050 $478 9 9 9 $4,563 4,563 4,563 (33) DIST.PLT.- EASEMENTS & SURVEY $207,143 $164 410 398 422 $206,569 191,758 221,380 (34) DIST.PLT.- OT...
AI summary The text presents a table with financial data related to distribution plant costs, including adjustments, capital works in progress (CWIP), and projected values for 2026 and 2027. It includes various line items such as land, easements, substations, poles, overhead lines, underground lines, and line transformers.
Line # AVERAGE RATE BASE RATE BASE RATE BASE 2026 2027 (117) CUSTOMER OPERATIONS: (118) (119) Labour-related O&M (120) GENERATION 69,509.7 69,509.7 (121) TRANSMISSION 19,614.1 (122) DISTRIBUTION 53,383.6 72,997.8 72,997.8 0.0 (123) RETAIL...
AI summary The document provides a detailed breakdown of average rate base figures for various operational areas in 2026 and 2027, including generation, transmission, distribution, and retail, as well as corporate groups such as legal services, finance, and human resources. It outlines financial changes and expenses related to these areas.
Line # AVERAGE RATE BASE RATE BASE RATE BASE 2026 2027 (179) Regulatory Affairs Annual Costs (180) REGULATORY AFFAIRS Year CA SBA Other Total (181) Advocacy Expense 1,931.0 2018 $327,285 $344,541 $3,357,528 $4,029,354 (182) Other Expenses...
AI summary The text presents a table with average rate base and regulatory affairs annual costs for the years 2026 and 2027, including various expense categories such as advocacy expense and other expenses, along with their respective totals.
Line # AVERAGE RATE BASE RATE BASE RATE BASE 2026 2027 (258) (259) TRANSMSSION (260) Transmission - HV 0 0.0 0.0 0 0 0 0 (261) Transmission - EHV 30,089 0.000 0.0 30,089.4 -10,096 40,185 40,185 0 (262) TOTAL TRANSMISSION 30,089.4 0 30,089...
AI summary The document presents a table with transmission and distribution rate base figures for 2026 and 2027, including values for high-voltage, extra-high-voltage, land, easements, other, and substations. The figures show changes and totals for these categories.
Line # AVERAGE RATE BASE RATE BASE RATE BASE 2026 2027 (343) DIRECT FAM-related EXPENSES (344) FUEL 55,224.498 (345) PURCHASES - OTHER THAN BIOMASS AND WIND 91.136 (346) PURCHASES - BIOMASS 69.363 (347) MARITIME LINK 661.974 (348) PURCHASE...
AI summary The text presents a table detailing various expenses and revenue figures related to the rate base for 2026 and 2027, including fuel costs, purchases from different energy sources, and revenue from different customer classes. This data is likely used for regulatory proceedings related to rate-setting and cost recovery.
Line # AVERAGE RATE BASE RATE BASE RATE BASE 2026 2027 Historic Class (437) Connection Charges & Removal of Meters Weighted Ave Connection Charges Removal of Meters (438) MISCELLANEOUS REVENUE - DOMESTIC 3,470.8 94.4% 1,681.1 1,789.6 (439)...
AI summary The text presents a table of miscellaneous revenue categories and their corresponding percentages and values for the years 2026 and 2027, including domestic, small general, general, and industrial categories.
Line # AVERAGE RATE BASE RATE BASE RATE BASE 2026 2027 (531) REVENUE TO COSS RATIO (2026 COSS) (532) DOMESTIC 97.159 (533) SMALL GENERAL 103.603 (534) GENERAL 104.375 (535) LARGE GENERAL 104.375 (536) SMALL INDUSTRIAL 104.375 (537) MEDIUM...
AI summary This document provides data on the average rate base and revenue to cost of service study (COSS) ratio for different customer classes in 2026 and 2027, along with the number of bills and billed revenue for 2024 across various customer segments.
45.3% 100.0% 54.7% 45.3% 100.0% 54.7% 45.3% 100.0% 54.7% 45.3% 100.0% 30 Non-FAM Rate Classes 31 BUTU 100.00% 32 GRLF 100.00% 33 1P - RTP 100.00% 34 ELIADC 100.00% 35 Shore Power EBS /RSS 37 Total Below-the-line 178,670 0.3% 159,281,443 0....
AI summary The text presents a table with percentages and financial figures related to rate classes and cost data. It includes entries such as 'Non-FAM Rate Classes' and 'Total Below-the-line' with associated monetary values and percentages, indicating a focus on financial and regulatory accounting details.
Rate Base Average 2025 2026 Steam Plant $ 481,584 $ 543,265 $ 419,903 Steam Plant - CWIP $ 4,559 $ 4,744 $ 4,374 Steam Environmental & Fuel Conversion $ 360,906 $ 369,394 $ 352,418 Steam Environmental & Fuel Conversion - CWIP $ - $ - $ - H...
AI summary The document presents a table showing the rate base for various power plants in Nova Scotia for the years 2025 and 2026, including figures for steam, hydro, wind, gas turbine, and LM6000 plants, with some entries indicating costs related to construction work in progress (CWIP).
$ 58,575 $ 58,575 $ - $ - $ (32,068) $ 32,068 $ - $ 26,506 $ 32,068 $ - Total Generation Plant $ 2,091,705 $ 2,091,705 $ - $ - $ (1,145,168) $ 1,145,168 $ - $ 946,537 $ 1,145,168 $ - General Property Plant -generation-related $ 144,056.3 $...
AI summary The document provides financial data related to generation plant costs and rate base factors, including figures for total generation plant, general property plant, and applicable rate base factors. The text also references a compliance filing related to the Greenhouse Gas Emissions Regulations (GRA) for the period 2026-2027.
Rate Base Average 2026 2027 Steam Plant $ 458,622 $ 419,903 $ 497,342 Steam Plant - CWIP $ 4,174 $ 4,374 $ 3,974 Steam Environmental & Fuel Conversion $ 343,930 $ 352,418 $ 335,442 Steam Environmental & Fuel Conversion - CWIP $ - $ - $ - H...
AI summary The text presents a table showing the rate base for various energy plants in Nova Scotia, including Steam, Hydro, Wind, Gas Turbine, and LM6000 plants, with figures for 2026 and 2027, and includes capital work in progress (CWIP) values for some entries.
$ 60,407 $ 60,407 $ - $ - $ (31,296) $ 31,296 $ - $ 29,111 $ 31,296 $ - Total Generation Plant $ 2,115,469 $ 2,115,469 $ - $ - $ (1,095,995) $ 1,095,995 $ - $ 1,019,473 $ 1,095,995 $ - General Property Plant -generation-related $ 143,756 $...
AI summary The text presents financial data related to generation plant and general property plant, including values for different categories and percentages related to rate base factors applicable to the base cost of fuel classification. The data appears to be part of a compliance filing and includes redacted information.
y. REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026-2027 GRA Compliance Filing RB-01 Attachment 1 has been filed electronically. REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026-2027 GRA Compliance Filing RB-02-RB-16 Attachment 1 has been...
AI summary The document outlines the submission of various attachments for the 2026-2027 General Rate Adjustment (GRA) Compliance Filing by NS Power, including filings related to rate base, demand-side management, and other regulatory matters.
101354Board Decision
27 passages
- The EIFEL deferral, allowing NS Power to defer incremental tax expense of about $7 million if an exemption is not enacted by the Government of Canada as it has announced; - The inclusion of four Maritime Link transmission capital project...
AI summary The document outlines NS Power's proposed adjustments, including EIFEL deferral, Maritime Link rate base inclusion, Storm Cost Recovery Rider revisions, DSM Rider changes, OATT rate updates, and fee modifications. The Board accepts some elements but reduces revenue requirements by cutting OM&G expenses, aligning executive pay with regulations, denying GRA deferral, and lowering fuel costs.
3.1 Should the Settlement Agreement be Approved? [36] On September 2, 2025, NS Power wrote to the Board to advise that it would be filing a general rate application for the 2026 and 2027 test years. It stated that it had reached a consensu...
AI summary NS Power advised the Board on September 2, 2025, of its intent to file a general rate application for 2026 and 2027, supported by customer representatives. However, the application was not filed until September 18, 2025, and the settlement agreement was only submitted on November 5, 2025, following information requests from Board staff.
[37] The terms of the settlement agreement are set out in a schedule to the agreement and provide as follows: GRA Element Settlement Terms Capital Structure a) An equity thickness of 40% for rate setting purposes will be retained. DSM Ride...
AI summary The settlement agreement outlines terms related to capital structure, the DSM Rider, and the Weather Normalization Mechanism. It retains a 40% equity thickness for rate setting, amends the DSM Rider with revisions to be negotiated with EfficiencyOne, and removes the request for a Weather Normalization Mechanism while agreeing to participate in an information session.
[38] Previous decisions by the NSUARB set out the principles it applied in its consideration of settlement agreements. Those principles are still relevant and bear repeating. In its decision dated November 5, 2008, about a prior NS Power g...
AI summary The NSUARB emphasizes its commitment to ensuring that settlement agreements are just, reasonable, and in the public interest. It highlights the importance of settlement agreements in regulatory proceedings, noting their role in promoting collaboration and reducing controversy in rate applications. The Board also outlines its principles for evaluating such agreements, including the need to ensure that costs are prudently incurred and that all intervenor concerns are adequately addressed.
occurs, the increased costs will be pushed on future ratepayers, resulting in intergenerational inequity and perhaps future ratepayers paying decommissioning costs for assets they may have never used. [180] Second, the Board notes that the...
AI summary The text discusses the discrepancy between the partial decommissioning cost estimates for the Tusket hydro system in the Yates report and the more recent estimate developed by NS Power, highlighting concerns about the accuracy of depreciation rates based on outdated data and potential intergenerational inequity.
resulting in more use of the procedure. He also noted that ELG is currently used in Alberta and Newfoundland. His evidence also indicated that ALG is used by Maritime Electric in Prince Edward Island. [204] For this GRA, NS Power submitted...
AI summary NS Power advocates for the use of ELG (Equal Group Life) over ALG (Average Group Life) in rate base calculations, arguing it reduces financing costs more quickly. The Board will evaluate ELG/ALG methodology differences and intergenerational equity. NS Power has used ELG for over 30 years, citing real retirement data. Maritime Electric uses ALG in Prince Edward Island.
3.4.3.1 Findings [243] In Undertaking U-8, NS Power provided calculations showing the dollar effect of implementing the changes recommended in Table 8 of Mr. Madsen's evidence. NS Power performed the analysis using both the ALG and ELG dep...
AI summary NS Power provided calculations showing the financial impact of implementing Mr. Madsen's recommended average service life changes, showing reductions in depreciation expenses under both ALG and ELG procedures. These changes would lower average rate increases for customers, though partially offset by increased return on rate base. The Board must determine if Mr. Madsen's recommendations are warranted.
3.5.1.2 Present Application [291] In this application, NS Power indicated its future intent to ask for the securitization of $704 million of the unrecovered net book value of thermal assets within the scope of the DDA ($500 million in 2025...
AI summary NS Power is seeking a securitization deferral to defer depreciation and financing costs of thermal assets until securitization legislation is enacted. It plans to securitize $704 million in unrecovered net book value over 2025 and 2026, with estimated savings of $85 million for ratepayers. The application does not currently request approval for securitization itself.
- Finally, the MEUs would also like to take the opportunity provided by the closing submissions to reiterate their support for NS Power's efforts to securitize approximately $700 million of assets in the Decarbonization Deferral Account ("...
AI summary Multiple stakeholders, including the MEUs, Small Business Advocate, Consumer Advocate, and PHP, support the securitization of approximately $700 million in thermal assets held in the DDA. They argue that securitization will reduce costs for ratepayers and significantly lower the revenue requirement for NS Power. The GRA and Settlement Agreement highlight securitization as a critical component for achieving cost savings.
3.6 Rate Base [363] NS Power's rate base consists of the physical assets and related construction work in progress the utility has invested in to provide power to its customers, such as generating stations and transmission lines. It also i...
AI summary NS Power's rate base includes physical assets, construction in progress, materials inventory, and financial assets like tax receivables and regulatory deferrals. The forecasted rate base for 2026 and 2027 is estimated at $5.58 billion and $5.89 billion, respectively, and is used to calculate return on equity and depreciation expenses.
3.6.1 Capital Additions [365] NS Power's capital outlook for 2026-2027 for additions to Plant reflects the company's best estimate of capital investment over the test years at a point in time. The test period investment is intended to supp...
AI summary NS Power outlines its 2026-2027 capital investment plans to ensure safe electricity delivery, environmental compliance, and alignment with Renewable Electricity Standards. The proposed investments support the 5-Year Reliability Plan and growing customer demand. Rate base growth will depend on DDA securitization proceeds, with potential offsets if securitization fails.
3.6.2 Maritime Link Capital Projects [371] NS Power has four Maritime Link transmission capital projects that, by Board Order, have historically been excluded from rate base. The original intent of these projects was primarily to facilitat...
AI summary NS Power seeks to include four Maritime Link transmission projects in its rate base, arguing they now benefit Nova Scotia by retaining surplus energy rather than exporting it. The Board previously rejected inclusion but set a test requiring four consecutive quarters of revenue/cost balance. NS Power claims to meet this via undertakings U-24 and U-25, citing surplus energy purchases under the Energy Access Agreement and bilateral sales.
3.6.2.1 Findings [374] The Board notes that Undertaking U-64 in the 2023-2024 GRA referred to the forecast NSP Maritime Link Incorporated surplus energy purchases. While not specifically defined, the Board agrees that, in the context of th...
AI summary The Board approves the inclusion of NS Power's Maritime Link transmission projects in the rate base, defining 'surplus energy' to include both EAA and bilateral market energy. Inclusion is effective only going forward, with no recovery of prior depreciation. The Board notes customer benefits from Newfoundland and Labrador Hydro's surplus energy but cautions that EAA compliance may require focusing solely on EAA-transacted energy.
3.6.3 Valuation and "Writing Down" of the Rate Base [377] The Department of Energy requests that the Board take steps to ensure that NS Power's coal assets are written down by an amount that the Board deems appropriate based on a transpare...
AI summary The Department of Energy requests the Nova Scotia Utility and Review Board to write down NS Power's coal assets, arguing their value is over-inflated and ratepayers should not subsidize outdated infrastructure. The Department attributes this to NS Power's failure to conduct timely depreciation studies and imprudent investments post-2016, despite knowing coal assets must retire by 2030.
Power to determine value of property of utility - 30 (1) The Board may at any time, with the assistance of such engineers, accountants, valuators, counsel and others as it deems wise or advisable to employ, inquire into and determine the e...
AI summary The Nova Scotia Utility and Review Board (Board) has authority to assess utility property values using prudent original cost or prescribed methods, deducting depreciation. It mandates valuation of Nova Scotia Power Incorporated's assets by March 31, 2024, and setting differentiated return on equity (ROE) levels for capital assets to align investment incentives with ratepayer objectives.
Duty of utility to furnish information - 33 (1) Every public utility shall furnish to the Board from time to time, and as the Board may require, maps, profiles, contracts, reports of engineers and other documents, records and papers, or co...
AI summary Public utilities in Nova Scotia must provide the Board with maps, contracts, and reports to aid in property valuation and investigations. The Board retains authority to revise valuations and requires utilities to report property changes and file contracts promptly.
the legal and regulatory principles for valuing a utility's rate base (note that his second edition dates back nearly 40 years and does not capture developments in this more recent period). He noted: For many years the major division of pr...
AI summary The text discusses two approaches to valuing a utility's rate base: the original-cost net-investment principle (supported by FERC and FCC) and the fair value principle (criticized for circularity). Bonbright references Smyth v Ames as the fair value standard's landmark case, while the cost-based approach emerged from criticisms of fair value's reliance on earnings estimates.
ased on the estimated remaining service lives of the assets in each category. The estimated service lives of intangible assets requires regulatory approval. [M11090, Exhibit N-1, Attachment 2, p. 13] [411] The Board summarized the two cons...
AI summary The document discusses NS Power's asset management practices, consultant findings on processes and depreciation methods, and regulatory considerations. EA Technology and Grant Thornton provided assessments, with the Board summarizing their conclusions. The Department of Natural Resources and Renewables (NRR) intervened without opposing NS Power's asset valuation approach. The original cost method for rate base valuation uses depreciation rate adjustments rather than write-ups/downs.
3.6.3.1.2 Assets No Longer "Used and Useful" and the Decarbonization Deferral Account [419] Referring to "core ideas" from the UAD line of cases and their relevance to Nova Scotia, the Department submitted, "Once an asset is no longer used...
AI summary The Department argues that assets no longer 'used and useful' can be removed from rate base, with losses borne by shareholders. NS Power cites the Alberta Court of Appeal's 2023 decision in ATCO Electric Ltd. v Alberta Utilities Commission , which rejected binding precedent on stranded assets from natural disasters. The Court emphasized that legislation did not limit the AUC's discretion over depreciation or stranded assets, challenging prior assumptions.
nting Policy 6350 provides the Board with flexibility, on a case-by-case basis, to address the rate-base treatment of the undepreciated cost when such an application is made. The Board finds that this flexibility is important and can only...
AI summary The NSUARB emphasizes flexibility in rate-base treatment for undepreciated costs, particularly when retiring assets to meet decarbonization mandates. It highlights the use of the DDA as an accepted method for recovering coal asset net book value, avoiding alternative approaches like adjusting depreciation rates. The decision balances asset retirement impacts against financial and regulatory considerations.
3.6.4 Findings [439] The Board accepts NS Power's forecasted average rate base of $5.58 billion in 2026 and $5.89 billion in 2027.
AI summary The Board accepts NS Power's forecasted average rate base of $5.58 billion in 2026 and $5.89 billion in 2027, signaling approval of the company's financial projections for those years.
3.7 Return on Equity and Capital Structure [440] NS Power's existing rates are set based on a current capital structure that includes 40% equity and 60% debt, with an approved return on equity of 9%. Under the current framework, NS Power m...
AI summary NS Power's current rates are based on a 40% equity, 60% debt structure with a 9% ROE cap of 9.25%. They propose maintaining a 9% ROE range (8.75%-9.25%) and the same debt-to-equity ratio for rate-setting.
Summary of Return on Equity Results CAPM DCF Risk Premium Opinion Concentric 9.23% 9.02% 10.04% 9.43% Cleary 6.84% 7.86% 7.94% 7.6% 3.7.2.2 Capital Structure (Equity Ratios) [468] Concentric determined that a common equity ratio of 45% wou...
AI summary Concentric determined that a 45% common equity ratio is appropriate for NS Power, considering its financial and business risks and the need to retire thermal generation by 2030. The requested 40% equity ratio is seen as conservative compared to other Canadian and U.S. utilities.
3.7.5.2 Capital Structure [560] NS Power proposed to maintain its capital structure of 40% equity and 60% debt. This request was supported by its expert witness Concentric (which considered 45% would be appropriate), Board Counsel consulta...
AI summary NS Power proposed maintaining a 40% equity and 60% debt capital structure, supported by Concentric, Dr. Cleary, and the settlement agreement. The Board approved the proposal without opposition.
Transmission Links to Other Systems NS Power proposes that transmission links to other systems, such as interties with the grids of other provinces, should generally be functionalized 100% to transmission and therefore classified 100% to d...
AI summary NS Power proposes classifying all transmission links to other provinces' grids as 100% demand-facing and removing the distinction between extra high voltage and high voltage systems. The proposal claims no immediate rate base impact due to the non-existence of these assets currently. Simplification of voltage classifications is emphasized.
General Plant General plant primarily consists of NS Power's investment in facilities, such as buildings structures and grounds, communication equipment, vehicles and information technology infrastructure. Currently, costs are apportioned...
AI summary NS Power proposes allocating general plant costs above $1 million to specific functions (e.g., transmission, distribution) using allocators like operating costs and rate base, differing from the current net book value-based allocation across generation, transmission, and distribution.
ce captured under the FAM; - The EIFEL deferral, allowing NS Power to defer incremental tax expense of about $7 million if an exemption is not enacted by the Government of Canada as it has announced; - The inclusion of four Maritime Link t...
AI summary The Nova Scotia Utility and Review Board approved adjustments to Nova Scotia Power Inc.'s rate base, including Maritime Link transmission projects, revised Storm Cost Recovery Rider terms, OATT rate updates, and tariff language changes. Amendments to the General Rate Application and cost allocation among customer classes were also mandated.
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The Board held its public hearing from January 7 to 9, 12 and 13, 2026. Written closing submissions were completed on February 6, 2026. The Board also received many letters of comment from customers. [7] The general rate application contem...
AI summary The Nova Scotia Utility and Review Board held a public hearing for a general rate application, which included a proposal for securitization of coal plant and thermal-related assets. NS Power requested a securitization deferral to defer financing costs and depreciation expenses related to retiring these assets, estimating potential customer savings of about $90 million over 2026 and 2027 if securitization had occurred earlier.
n s. 42(1) which states: - 42 (1) Every public utility shall be entitled to earn annually such return as the Board deems just and reasonable on the rate base as fixed and determined by the Board. … - 23 The concept of a utility securing a...
AI summary The document outlines the legal framework under which public utilities in Nova Scotia are entitled to earn a just and reasonable return on their rate base as determined by the Board. It emphasizes the Board's responsibility to ensure that rates are sufficient to produce this return while preventing extravagance in capital and operating expenditures.
3.1 Should the Settlement Agreement be Approved? [36] On September 2, 2025, NS Power wrote to the Board to advise that it would be filing a general rate application for the 2026 and 2027 test years. It stated that it had reached a consensu...
AI summary NS Power informed the Board on September 2, 2025, that it would file a general rate application for 2026 and 2027, supported by customer representatives. However, it delayed filing until September 18, 2025, and only submitted the settlement agreement on November 5, 2025, after being requested by Board staff.
[37] The terms of the settlement agreement are set out in a schedule to the agreement and provide as follows: GRA Element Settlement Terms Cost of Service ("COS") a) The COS as set out in the Draft GRA will be included in the 2026-2027 GRA...
AI summary The settlement agreement outlines terms for the 2026-2027 GRA, including the inclusion of the Cost of Service and MEU Treatment. The agreement specifies that the Minimum System methodology will be subject to a future proceeding, and data on PHP's use of the High Voltage transmission system will be collected and disclosed. The apportionment of assessment costs from the Maritime Link remains open for future determination.
[38] Previous decisions by the NSUARB set out the principles it applied in its consideration of settlement agreements. Those principles are still relevant and bear repeating. In its decision dated November 5, 2008, about a prior NS Power g...
AI summary The NSUARB outlines its principles for approving settlement agreements in rate proceedings. The Board emphasizes that settlement agreements, when supported by all customer classes and based on thorough evidence, are in the public interest. The Board ensures that only fair and prudently incurred costs are approved, and that customer rates remain just and reasonable.
lives are generally lower than those used in New Brunswick, Prince Edward Island and Newfoundland, jurisdictions that are generally subject to similar climate and operating conditions as Nova Scotia. [211] In his testimony, Mr. Wiedmayer o...
AI summary The Board expresses concern that NS Power's use of simulated data and ELG may lead to underestimated asset service lives, resulting in aggressive depreciation and intergenerational equity issues. NS Power argues that rate base considerations should influence depreciation methodology choices.
3.5.1.2 Present Application [291] In this application, NS Power indicated its future intent to ask for the securitization of $704 million of the unrecovered net book value of thermal assets within the scope of the DDA ($500 million in 2025...
AI summary NS Power seeks a securitization deferral to defer depreciation and financing costs of thermal assets until securitization legislation is enacted. The application does not request immediate securitization approval, but aims to defer costs until the process can proceed. Initial savings estimates were reduced from $90 million to $85 million.
- Finally, the MEUs would also like to take the opportunity provided by the closing submissions to reiterate their support for NS Power's efforts to securitize approximately $700 million of assets in the Decarbonization Deferral Account ("...
AI summary Multiple stakeholders, including MEUs, the Small Business Advocate, the Consumer Advocate, and the Industrial Group, support the securitization of approximately $700 million in thermal assets held in the Decarbonization Deferral Account (DDA) as part of the General Rate Application (GRA). This approach is expected to yield significant cost savings for ratepayers, with estimates of $85 million over 2026–2027.
3.6 Rate Base [363] NS Power's rate base consists of the physical assets and related construction work in progress the utility has invested in to provide power to its customers, such as generating stations and transmission lines. It also i...
AI summary NS Power's rate base includes physical assets, construction in progress, materials inventory, working capital, and financial assets like long-term tax receivables and regulatory deferrals. The forecasted rate base for 2026 and 2027 is estimated at $5.58 billion and $5.89 billion, respectively, and is crucial for determining return on equity and depreciation expenses.
3.6.1 Capital Additions [365] NS Power's capital outlook for 2026-2027 for additions to Plant reflects the company's best estimate of capital investment over the test years at a point in time. The test period investment is intended to supp...
AI summary NS Power outlines its 2026-2027 capital investment plan to ensure safe electricity delivery, environmental compliance, and alignment with Renewable Electricity Standards and coal phase-out by 2030. The plan supports the 5-Year Reliability Plan and growing customer demand. Rate base growth is expected, partially offset by DDA securitization if successful.
3.6.1.1 Findings [367] NS Power's estimated capital investment for the GRA test period amounts to $671.3 million in 2026 and $556.1 million in 2027. The capital additions to rate base for the test period have generally been approved by the...
AI summary NS Power's capital investment forecast for the GRA test period is based on anticipated requirements, with some projects not yet approved. The Board noted discrepancies between the GRA and the 2026 ACE Plan due to timing and asset management updates, but found the overall capital spending forecast to be reasonable.
3.6.2 Maritime Link Capital Projects [371] NS Power has four Maritime Link transmission capital projects that, by Board Order, have historically been excluded from rate base. The original intent of these projects was primarily to facilitat...
AI summary NS Power seeks to include four Maritime Link transmission projects in its rate base, arguing benefits outweigh costs. The Board previously rejected inclusion but set a test requiring revenue from wheeling tariffs or economic value of surplus energy purchases to meet depreciation, financing, and operating costs. NS Power claims to meet this test using 'surplus energy' and 'bilateral sales' in its 2023-2024 GRA, supported by undertakings U-24 and U-25.
3.6.2.1 Findings [374] The Board notes that Undertaking U-64 in the 2023-2024 GRA referred to the forecast NSP Maritime Link Incorporated surplus energy purchases. While not specifically defined, the Board agrees that, in the context of th...
AI summary The Board agrees that 'surplus energy' includes both EAA and bilateral market-priced energy, allowing NS Power to include Maritime Link projects in rate base via U-24 and U-25. Inclusion is go-forward only, with no recovery of past depreciation. The Board also notes customer benefits from Nalcor's surplus energy, though EAA compliance may require distinguishing between EAA and bilateral arrangements.
3.6.3 Valuation and "Writing Down" of the Rate Base [377] The Department of Energy requests that the Board take steps to ensure that NS Power's coal assets are written down by an amount that the Board deems appropriate based on a transpare...
AI summary The Department of Energy requests the NSUARB to write down NS Power's coal assets, arguing their value is over-inflated and ratepayers shouldn't bear outdated infrastructure costs. They cite imprudent investments and failure to adjust depreciation studies post-2016, aligning with the 2030 coal phase-out.
Duty of utility to furnish information - 33 (1) Every public utility shall furnish to the Board from time to time, and as the Board may require, maps, profiles, contracts, reports of engineers and other documents, records and papers, or co...
AI summary The section outlines the duty of public utilities to provide information to the Board for valuation purposes, including maps, contracts, and reports, and to report changes in their property. The Board must keep informed of changes and revise valuations accordingly.
the legal and regulatory principles for valuing a utility's rate base (note that his second edition dates back nearly 40 years and does not capture developments in this more recent period). He noted: For many years the major division of pr...
AI summary The text discusses the debate between the original-cost net-investment principle (supported by FERC and FCC) and the fair value principle in utility rate base valuation. The fair value principle faces criticism, including the 'vicious circle' issue where asset value depends on earnings derived from rates.
[410] The NSUARB's decision in M11067 (2024 NSUARB 59) outlined how NS Power's property is valued under the Public Utilities Act : - [8] Subsection 30(2) of the Act contemplates that the value of NS Power's property and assets is determine...
AI summary The NSUARB's decision in M11067 outlines that NS Power's property is valued under the Public Utilities Act using net book value (prudent original cost minus depreciation) with straight-line depreciation per s. 30(3). Annual reports in regulated financial statements (e.g., M11090) detail accounting policies for property, plant, and equipment.
gnized by Christine Runge, Power Advisory, an expert retained by the Department (then NRR) as noted in the NSUARB's decision dealing with the approval of NS Power's DDA (2024 NSUARB 67, paras. 85-88). [414] If the Board were to consider a...
AI summary The text argues against departing from the original cost-based approach for valuing rate base and depreciation, emphasizing that such a change would require uniform application across all asset classes. It warns of potential value fluctuations, the need for transitional reserves, and impacts on depreciation expenses and rates if coal asset values rapidly decline pre-2030.
3.6.3.1.2 Assets No Longer "Used and Useful" and the Decarbonization Deferral Account [419] Referring to "core ideas" from the UAD line of cases and their relevance to Nova Scotia, the Department submitted, "Once an asset is no longer used...
AI summary The Nova Scotia Department argues that assets no longer 'used and useful' can be removed from the rate base, with shareholder losses. NS Power cites the Alberta Court of Appeal's 2023 decision in ATCO Electric Ltd. v Alberta Utilities Commission (2023 ABCA 129), which clarified that the Stores Block case did not bind the AUC in handling stranded assets from natural disasters. The Court emphasized legislative discretion over depreciation and stranded assets.
nting Policy 6350 provides the Board with flexibility, on a case-by-case basis, to address the rate-base treatment of the undepreciated cost when such an application is made. The Board finds that this flexibility is important and can only...
AI summary The NSUARB emphasizes flexibility in rate-base treatment under Policy 6350 for asset retirement, particularly for coal assets retiring due to decarbonization mandates. The Board previously accepted the DDA as a method to recover undepreciated coal asset costs, avoiding adjustments to depreciation rates or Policy 6350. Factors like financial position, regulatory schemes, and rate impacts are critical in balancing decisions.
3.6.4 Findings [439] The Board accepts NS Power's forecasted average rate base of $5.58 billion in 2026 and $5.89 billion in 2027.
AI summary The Board accepts NS Power's forecasted average rate base of $5.58 billion in 2026 and $5.89 billion in 2027.
3.7 Return on Equity and Capital Structure [440] NS Power's existing rates are set based on a current capital structure that includes 40% equity and 60% debt, with an approved return on equity of 9%. Under the current framework, NS Power m...
AI summary NS Power's current rates are based on a 40% equity, 60% debt structure with a 9% return on equity (ROE), allowing up to 9.25% annually. They propose maintaining this ROE range and debt-to-equity ratio for rate-setting, returning excess earnings to customers.
Summary of Return on Equity Results CAPM DCF Risk Premium Opinion Concentric 9.23% 9.02% 10.04% 9.43% Cleary 6.84% 7.86% 7.94% 7.6% 3.7.2.2 Capital Structure (Equity Ratios) [468] Concentric determined that a common equity ratio of 45% wou...
AI summary Concentric recommends a 45% common equity ratio for NS Power, considering its financial and business risks and the need to retire thermal generation by 2030. The proposed 40% ratio is deemed conservative compared to other Canadian and U.S. utilities.
t a higher return on equity and a thicker equity ratio based on Concentric's evidence, but it was maintaining its current return on equity and capital structure to balance affordability for customers: In sum, NS Power is aware of the need...
AI summary NS Power seeks to maintain a 9.0% ROE and 40% equity ratio under the Settlement Agreement, citing affordability concerns despite Concentric's higher market-based estimates. It critiques Dr. Cleary's evidence for using non-representative proxy companies and outdated assumptions, contrasting with Concentric's methodology.
3.7.5.2 Capital Structure [560] NS Power proposed to maintain its capital structure of 40% equity and 60% debt. This request was supported by its expert witness Concentric (which considered 45% would be appropriate), Board Counsel consulta...
AI summary NS Power proposed maintaining a 40% equity/60% debt capital structure, supported by Concentric, Dr. Cleary, and settlement agreement signatories. No opposition was raised, and the Board approved the proposal.
Transmission Links to Other Systems NS Power proposes that transmission links to other systems, such as interties with the grids of other provinces, should generally be functionalized 100% to transmission and therefore classified 100% to d...
AI summary NS Power proposes classifying 100% of transmission links to other systems as demand and removing distinctions between extra high voltage and high voltage systems. The proposal has no immediate impact as these assets are not currently in the rate base. NS Power argues the systems are functionally indistinct and simplifying classifications would improve efficiency.
General Plant General plant primarily consists of NS Power's investment in facilities, such as buildings structures and grounds, communication equipment, vehicles and information technology infrastructure. Currently, costs are apportioned...
AI summary NS Power proposes reallocating general plant costs above $1 million to specific functions like transmission and distribution based on allocators such as operating costs and rate base, as opposed to the current apportionment based on net book value.
[581] The parties to the settlement agreement included the following terms relating to cost-of-service methodology used to determine rates for 2026 and 2027: Cost of Service ("COS") a) The COS as set out in the Draft GRA will be included i...
AI summary The settlement agreement outlines the cost-of-service methodology for 2026 and 2027, including the inclusion of the Draft GRA, the use of the Minimum System methodology in future proceedings, data collection regarding PHP's use of the High Voltage transmission system, and the apportionment of assessment costs from the Maritime Link.
3.8.1 Findings [584] For the purposes of setting rates in this proceeding, the Board accepts the proposed cost-of-service changes and the cost-of-service studies presented in this proceeding, except NS Power is directed to implement a load...
AI summary The Board accepts NS Power's cost-of-service changes but requires adjustments, including a load-carrying capability adjustment. NS Power must address concerns raised by Ms. Palmer and Renewall, particularly regarding distribution cost allocation and OATT tariff issues before transmission tariff responsibility transfers to the Nova Scotia Independent Energy System Operator.
3.8.2.1 Findings [608] Under a cost-of-service model, the objective is to fairly allocate costs to customers based on cost causation. This has been a chronically difficult thing to do for distribution system costs. It would be inappropriat...
AI summary The Nova Scotia Utility and Review Board (NSURB) acknowledges challenges in allocating distribution system costs under a cost-of-service model, noting neither the basic customer method nor the minimum system method is adequate. The Board expresses concern over NS Power's proposal to leave the issue unaddressed in the settlement agreement, emphasizing the need for broader customer group participation and further consideration in a future proceeding.
this is kind of a middle route. I've acknowledged it's an approximation and that it will be superior to have Nova Scotia Power's analysis when available. [Transcript, January 13, 2026, pp. 1311-1312] [621] In response to Undertaking U-6, N...
AI summary The document discusses the impact of a peak load carrying capability adjustment on distribution system costs, shifting about $7 million in costs from the residential class to other rate classes, particularly the general service class. The adjustment would reduce proposed rate increases for some classes but increase them for others, with some classes still seeing overall rate reductions.
NS Power maintains that the current costing methodology adequately and fairly allocates capacity costs to the provision of Regulation Service and submits that there is no double-counting of capacity. [665] Regarding NS Power's treatment of...
AI summary NS Power argues its current capacity cost allocation methodology is fair and avoids double-counting. It adjusted CBAS calculations by capping Wreck Cove's spinning reserve contribution at 32 MW, resulting in a 0.2% cost difference. NS Power also revised 30-minute reserve costs to reflect CTs' 35% hourly dispatch contribution, adapting to increased renewable energy integration.