Topic:"Rate Base" in M12833

14 The second scenario assumes securitization does not occur by the end of the 2026-2027 GRA test period, and as such, the depreciation and financing costs deferred in accordance with the securitization deferral remain on NS Power's balanc...

AI summary This text discusses a scenario where securitization does not occur by the end of the 2026-2027 GRA test period, leading to deferred depreciation and financing costs remaining on NS Power's balance sheet as a regulatory asset. These costs are included in the forecast unrecovered costs for assets within the scope of the DDA, with details provided in Appendix B(2) – No Securitization.

4 In a scenario where future securitization does not occur, amounts included in the Securitization 5 Deferral account will be an unrecovered cost associated with the assets within the scope of the 6 DDA. While NS Power is not proposing the...

AI summary The text discusses the potential future recovery of unrecovered costs, including those in the Decarbonization Deferral Account and Net Book Value, through a General Rate Application or other regulatory proceeding if securitization does not occur.

Change vs 28Y Change vs 28Y Discount Factor 1.136 1.211 1.291 1.376 1.467 1.563 1.666 1.776 1.893 2.018 2.151 2.293 2.444 2.605 Decrease (Increase) in NPV Revenue Requirement 38,191,585 33,878,605 36,717,136 32,338,279 28,352,160 24,727,07...

AI summary The document presents a comparison of changes in NPV revenue requirement and earnings over different time horizons (10Y, 20Y, 28Y), showing a consistent decrease in revenue requirement and NSPI earnings over time, with the largest decreases observed in the 28Y timeframe.

2026 Pre-Tax WACC 6.59% Securitization Bond Interest Rate 5.00% NSPI Return on Equity Embedded in 2026 WACC 9.00% NSPI Equity Thickness Embedded in 2026 WACC 40.00% Tax Rate 29.00% NBV to be recovered 713,000,000 Mortgage style bond amorti...

AI summary The text provides financial details related to Nova Scotia Power Inc. (NSPI), including the 2026 Pre-Tax WACC, securitization bond interest rate, return on equity, equity thickness, tax rate, and the net book value (NBV) to be recovered through mortgage-style bond amortization.

July 10, 2026 VIA EMAIL Ms. Crystal Henwood Clerk of the Board Nova Scotia Energy Board 1601 Lower Water Street, 3rd Floor Halifax NS B3J 3S3 Dear Ms. Henwood: Re: M12833 - Nova Scotia Power Incorporated's 2025 Annual Report respecting the...

AI summary This document discusses the Decarbonization Deferral Account (DDA) mechanism proposed by Nova Scotia Power Incorporated (NS Power) and its 2025 Annual Report. The Nova Scotia Energy Board approved the DDA in principle but left all aspects open for stakeholder discussion, including the possibility of securitization. The Small Business Advocate (SBA) has reviewed the 2025 DDA Report and submitted comments.

1 NS Power commits to notifying the Board and stakeholders promptly of any material 2 developments outside the annual reporting cycle, and once regulations are in place to enable 3 securitization, NS Power plans to proceed with a regulator...

AI summary NS Power commits to informing the Board and stakeholders of material developments outside the annual reporting cycle and plans to proceed with a regulatory application for securitization once regulations are in place. The company highlights that including forecast costs in securitization is not feasible due to uncertainty, and that securitized bonds require defined regulatory assets and customer charges.