Topic:"Rate Base" in M12550

Review of C0051815 - RTU Replacements Program - Phase 6 (NSEB M12550) NSPI Responses to NSEB Information Requests 1 Vehicle AO Rates 2 3 The vehicle AO rate is only attributed to Energy Delivery and is determined by calculating 4 the eligi...

AI summary The document discusses the calculation of vehicle administrative overhead (AO) rates for the RTU Replacements Program - Phase 6, which are attributed to Energy Delivery. These rates are determined based on eligible vehicle costs and prorated between capital and operating activities. The methodology follows NSEB-approved accounting policies, and there is no difference in approach between the latest submission and the original application. However, due to a cyber incident, a comparison table of original estimates is not available.

1 INTRODUCTION - Midgard Consulting Incorporated (" Midgard ") has been retained by Counsel for the Nova Scotia Energy Board - (" NSEB ") to carry out a review of the Nova Scotia Power Incorporated's (" NSPI ") "RTU Replacements Program -...

AI summary Midgard Consulting has been retained by the Nova Scotia Energy Board to review NSPI's RTU Replacements Program Phase 6 Application. NSPI seeks approval for approximately $5.96M in capital costs to replace RTUs and maintain system reliability. The report provides professional findings based on a review of the information provided.

3 5.4 Overall Project Prudence & Ratepayer Interest - 4 The following summarizes Midgard's conclusions from the review of the Project: - 5 1. Labour Hour Escalation and Scope Justification: The filed labour estimate of 1,939 hours per RTU...

AI summary Midgard's review of the Project highlights concerns with the labour estimate, noting insufficient evidence for the 1,939 hours per RTU. It recommends a 30% reduction in labour hours and enhanced reporting requirements. Material costs are deemed reasonable, and indirect cost allocation is considered prudent.

- b) For each variance identified in Part (a), please explain whether the change is attributable to: - i. A change in measurement Unit (e.g., from Days to PD); - ii. A change in Quantity (with quantification of the delta); - iii. A change...

AI summary The document requests detailed explanations regarding variances in cost estimates, breakdowns of specific costs such as vehicle overhead, and the calculation methodology for AFUDC in capital cost estimates. It also asks for comparisons between original and updated estimates and clarification on assumptions related to AFUDC.

s in both the original and updated Capital Cost Detailed Estimates reflect an expectation that capital will be tied up for only a brief period before being placed in service and included in rate base. 1. The sum of the total regular labour...

AI summary The text discusses capital cost detailed estimates, focusing on the expectation that capital will be tied up briefly before being placed in service and included in rate base. It includes various labour and overhead costs, as well as calculations related to labour overhead and RTUs.

) of the identified variance. NS Power focused its efforts on identifying and quantifying the most significant tasks missing from Midgard's analysis, compared to a full investigation of all variances. The Board is satisfied that an adjustm...

AI summary The Board adjusts Midgard's 33% variance calculation to 13% due to significant tasks missing from the analysis, and directs NS Power to resubmit the capital approval form. The Board also rejects NS Power's concern that reducing the budget would lead to substandard work, emphasizing compliance with good utility practices.