Topic:"Rate Base" in M12914

1 1.0 INTRODUCTION 2 3 NSP Maritime Link Incorporated (NSPML, Company) makes this Application for 4 approval of an assessment from Nova Scotia Power Incorporated (NS Power) for 5 recovery by NSPML of its 2027 and 2028 revenue requirements....

AI summary NSP Maritime Link Incorporated (NSPML) is seeking approval to recover its 2027 and 2028 revenue requirements, totaling $200.3 million and $191.5 million respectively. The request includes operating and maintenance costs, depreciation, interest, and financing costs, with adjustments to debt and equity financing costs and inflationary impacts. NSPML also proposes an alternate approach for the 2027 marine survey due to its materiality and prudence for customers.

10 11 12 13 14 15 As has been the case since 2018, NSPML will continue to invoice NS Power for recovery of its approved 2027 and 2028 assessments in equal monthly instalments ($13.46 million per month for 2027, and $12.79 million per month...

AI summary NSPML will continue to invoice NS Power for the recovery of its approved 2027 and 2028 assessments in equal monthly instalments, with specific adjustments for FLG2 costs and marine survey costs. The depreciation costs are increasing due to the full-year expense of the rock protection campaign in 2027 and the implementation of the station control monitoring system update in 2028.

2.3.3 Capital Depreciation 12 13 14 15 16 17 11 Consistent with the Final Costs Decision and its approved depreciation policy, NSPML seeks to recover $57.7 million in depreciation in 2027 and $58.1 million in 2028 which is calculated in ac...

AI summary NSPML seeks to recover $57.7 million in depreciation in 2027 and $58.1 million in 2028, consistent with the Final Costs Decision. The increase in 2027 is due to the Cable Protection Project, and the increase in 2028 is due to the SCM upgrade. Adjustments from close-out matters are not expected to have a material impact.

Date Filed: June 25, 2026 Page 18 of 28 1 associated cost recovery rights. Of note is that, at this time, none of the lenders were 21 For 2027, applying the NSEB-approved 30 percent equity thickness and 8.75 percent 22 ROE to NSPML's avera...

AI summary The text discusses the calculation of equity financing costs for NSPML in 2027 and 2028 using the NSEB-approved equity thickness and ROE. In 2027, the total equity financing cost is calculated as $38.4 million, and in 2028, it is $37.0 million.

4 Rate Base Continuity Schedule (millions) 2027 2028 Original ML Project - Depreciation & 57.9 57.9 Amortization Sustaining Capital - Depreciation & Amortization 1.3 1.6 Application Total 59.2 59.5 Application Table 1 2027 2028 Depreciatio...

AI summary The document presents a Rate Base Continuity Schedule for the years 2027 and 2028, detailing depreciation and amortization figures for the Original ML Project and Sustaining Capital. The table indicates slight increases in depreciation and amortization values over the two-year period.

1 Request IR-7: - 2 Reference: Section 2.5 2027 and 2028 Equity Financing Costs - 3 Please confirm, or clarify otherwise, an in-service date of the end of Q3 2028 was used for the - 4 SCM upgrade costs in the calculation of average rate ba...

AI summary The document requests clarification on the in-service date of the end of Q3 2028 being used for SCM upgrade costs in the calculation of average rate base, as referenced in Section 2.5 regarding 2027 and 2028 equity financing costs.

6 Request IR-8: - 7 Please provide Attachment 2 for NSPML's 2027 and 2028 Rate Base Continuity Schedule in excel - 8 with cells intact and protections removed. 9

AI summary The request is for Attachment 2 of NSPML's 2027 and 2028 Rate Base Continuity Schedule in Excel format with cells intact and protections removed.

23 1 Request IR-12: 2 Reference: Section 2.3.2, Sustaining Capital — Station Control Monitoring System (SCM) 3 (pp. 14–15, 24). 4 Preamble: The Application includes in 2028 for SCM depreciation based on 5 an original OEM quote of , but sta...

AI summary The text outlines regulatory requests related to depreciation and capital applications for the Station Control Monitoring System (SCM) upgrade and marine survey costs. It includes inquiries about timelines, documentation, and the treatment of costs in the rate base continuity schedule.

Request IR-4: Refer to the Application, Section 2.5 2027 and 2028 Equity Financing Costs, page 19 of 28, lines 16-27, which states: For the 2027 and 2028 Assessment, NSPML has applied an ROE of 8.75 percent, consistent with the Board's 202...

AI summary The document requests detailed schedules showing the return on equity (ROE) and cost of capital allocations and financing costs for 2027 and 2028, separated in spreadsheet format with formulas intact, based on NSPML's application of an 8.75% ROE and 30% equity thickness to its average rate base.