Topic:"Rate Design" in M03413

CALCULATION OF OVERHEAD APPLICATION RATE 13 Once the Capital-related Overhead Expenses have been determined, the overhead application rate can be calculated. The application rate is simply the quotient, expressed as a percentage, of the Ca...

AI summary The overhead application rate is calculated by dividing capital-related overhead expenses by total contract costs, expressed as a percentage. For instance, $1,000 in overhead expenses divided by $100,000 in contract costs results in a 1% overhead rate. This calculation is performed separately for each division.

REVIEW OF OVERHEAD APPLICATION RATE 13 The overhead application rate will be reviewed on an annual basis by Corporate Accounting Services to assess its reasonableness.

AI summary The overhead application rate will be reviewed annually by Corporate Accounting Services to evaluate its reasonableness, ensuring alignment with operational and financial standards.

produced from wind, biomass, tidal, wave, in-stream hydro as well as combined heat and power projects will be eligible for COMFIT rates that reflect basic cost-recovery, including the cost of capital. - • COMFIT-eligible projects will conn...

AI summary The Community-Based Feed-In Tariff (COMFIT) program in Nova Scotia provides eligible renewable energy projects (wind, biomass, tidal, etc.) with rates covering capital costs. Projects connect at the distribution level, with the UARB setting rates per government criteria. The program aims to boost energy diversity, public acceptance, and rural economic activity through job creation. A 2012 review will assess its effectiveness.

3. Enhanced Net Metering Net metering is a program that lets a consumer connect a small renewable electricity source to the grid through a special meter that measures electricity flows in two directions. For any electricity fed into the gr...

AI summary Nova Scotia Power Inc. (NSPI) proposes enhancing its net metering program by increasing power limits from 100 kW to 1 MW, allowing multiple meters under one account, and paying customers for surplus electricity at retail rates. The current program restricts generation to single meters with no payment for excess power.

Utility and Review Board (UARB) The UARB already has responsibility for approving cost recovery for renewable energy projects through the setting of electricity rates. Under the Renewable Electricity Plan, it will take on responsibility fo...

AI summary The UARB is responsible for approving cost recovery for renewable energy projects via electricity rates and will set FIT rates under the Renewable Electricity Plan, based on government-established criteria.

Things This Plan Does Not Do 9 Planning involves choices, and in developing this Renewable Electricity Plan, the government has chosen not to do several things. The province has decided to maintain a regulated electricity marketplace and n...

AI summary The plan avoids opening Nova Scotia's electricity market to competition due to grid limitations, restricts independent power producers from building all large-scale renewable projects, limits COMFIT to smaller projects, and excludes solar from COMFIT due to high costs. It emphasizes regulated markets, parallel models for project selection, and balancing affordability with rural development.

Medium Congestion Zone Column I Column II Column III Column IV Column V Column VI Column VII Column VIII Column IX Column X Column XI 25 the basis for the estimate including the specific years used for this 26 expenditure. 1 Request IR-16:...

AI summary The text contains a series of requests for detailed explanations and justifications related to financial and accounting calculations, including taxes, discount rates, capital charges, and the IRR computation. These requests are part of a regulatory proceeding involving Nova Scotia Power and Nova Scotia Power Inc.

- .1 stantial completion of the work. - .2 (6) months following delivery to the Place of the Installation. - .2 Owner, through the Engineer, shall promptly give the Vendor notice in writing of observed defects and deficiencies that occur d...

AI summary The text outlines warranty obligations and factory test requirements for electrical equipment, including procedures for reporting defects, correcting issues, and assigning warranties. It also specifies testing standards for circuit breakers, current transformers, and bushings.

- .2 CSA Standards - .1 C156.1, Ceramic and Glass Station Post Insulators - .2 G164, Hot Dipped Galvanized or Irregularly Shaped Articles - .3 W59, Welded Steel Construction (metal-ark welding) - .3 NEMA Standards - .1 Std. SG-6, Power Swi...

AI summary This document outlines the standards and submittal requirements for electrical components, including CSA, NEMA, ANSI/IEEE, and ISO standards, as well as specifications for operation and maintenance data and manufacturer drawings for disconnect switches.

2.1 The overall assembly enclosure(s) shall provide protection from ingress of rodents, insects, and moisture; and the possibility of arcing faults within the enclosure. - 1.12.2 The material for all external sides of the enclosure and int...

AI summary The document outlines technical specifications for the assembly enclosures, including protection against environmental factors, material requirements, grounding provisions, environmental control, and fire suppression capabilities.

9 IN-PLANT INSPECTION AND TESTING - 9.1 The Owner, Purchaser, Engineer, and/or their authorized agents shall have the privilege of inspecting and witnessing all testing at all times during the manufacture of the equipment or materials orde...

AI summary This section outlines the requirements for in-plant inspection and testing during equipment manufacturing, including the right to inspect, advance notice requirements, and the submission of test results to the Engineer.

- .8 Formwork: - .1 Forms: to CSA-A23.1, plywood and lumber, clean and free of loose knots, splits or metal. - .2 Form Ties: to CSA-A23.1, removable or snap-off metal ties, fixed or adjustable length. Form ties, tie wire, spacers or other...

AI summary The text outlines specifications for formwork and concrete mix, referencing various Canadian standards and testing methods. It details requirements for materials such as form ties, release agents, and curing compounds, as well as specifications for concrete mix proportions and air content.

to this statement. It is an impressive site. As the wind farm is fully constructed and in operation we can say with certainty that the capital costs presented in this Application will not be exceeded. The project helps Nova Scotia Power me...

AI summary The wind farm is fully constructed and in operation, with capital costs as presented in the Application not expected to be exceeded. The project helps Nova Scotia Power meet RES compliance requirements and provides customers with green energy valued at about $20 million per year without increasing general rates or the FAM, due to tax incentives and regulatory accounting policies.

Protocols - 6.1 NSPI will provide access to regulated utility services on a non-discriminatory basis and will not in respect of those utility services directly or indirectly state, imply or offer any preference or favored treatment to NSPI...

AI summary The document outlines protocols for NSPI to ensure non-discriminatory treatment of affiliates, maintain financial separation, and apply fair market value pricing for goods and services exchanged with affiliates. It also emphasizes the need for Board approval for asset transfers and fair allocation of corporate support costs.

Submissions - Intervenors [89] The CA argued that there was a failure on the part of NSPI to determine that the EUS contract was the best option available. He submitted: According to the evidence, EUS must have begun work by either the end...

AI summary The CA argues that NSPI failed to properly evaluate the EUS contract, which was selected without proper negotiation and based on a price picked from the market range. The CA also claims that NSPI did not investigate whether the contract price could be reduced and did not confirm that the EUS price excluded markups by EUS on subcontractor charges.

on't have the opportunity. The next project that comes along will be buying turbines, not out of the bankruptcy process at a discount but in a competitive market at market prices which are increasing. So we believe that there was a reason,...

AI summary The speaker defends the reasonableness of a renewable energy project's price, citing its low cost and the benefits of financing and tax credits. They acknowledge the Board's concerns about affiliate transactions but argue that the project's price is the lowest among similar agreements and justifies the investment for customers.

Appendix 4 – Asset Purchase Agreement Partial redaction has been made to the Asset Purchase Agreement where reference is made to a commercial term of the PPA and the Promissory Note. The information is protected from public disclosure by a...

AI summary This document discusses the partial redaction of a commercial term in an Asset Purchase Agreement involving NSPI. The redaction is necessary to protect confidential information, ensuring NSPI can maintain competitive power purchase terms and safeguard customer rates, which are cost-based.

WRONG TEST We can only speculate as to how the original price was obtained for the contract. It is not probable that EUS and Emera did any negotiating. It certainly was not the situation oftwo unrelated parties each pushing the other to ob...

AI summary The document discusses concerns about the lack of proper negotiation and due diligence in the EUS contract pricing. It suggests the price was selected based on an engineering analysis rather than competitive bidding, and that NSPI did not adequately verify the price or investigate potential reductions from other bidders, leading to potential affiliate transaction issues.

CONSULTING FEES Included in the project costsfor which NSPI seeks recovery isthe amount for professional consulting (see response to CA IR-12, Exhibit N-l, Appendix 2, p. 3). According to Mr. Bennett, those fees related to work performed b...

AI summary NSPI is seeking recovery of consulting fees related to legal work for acquiring and reselling a project. However, NSPI acknowledges that some fees should not be passed on to ratepayers as they resulted from a two-step acquisition process.

1 MR. OUTHOUSE: Okay, so there's two aspects to it, and I'll 2 come back to one in a moment. 4 The first question I want to be clear about is this; when the 5 accountants finish dotting the"i's" and crossing the "t's" on 324, it 6 will hav...

AI summary The discussion centers on the financial and structural implications of a project involving Nova Scotia Power Inc. (NSPI) and its affiliates. It addresses whether the project structure, involving Emera, added costs compared to a direct transfer of assets to NSPI and highlights the benefits of the current structure in managing risks and compliance with the Renewable Electricity Standard (RES).

tances and complications of the last couple of years that we've worked it. THE CHAIR: And I guess that's your response to my third question, which was, "Is this the best deal NSPI could have gotten?" MR. BENNETT: I believe it's a very good...

AI summary The discussion centers on the value and transparency of a project undertaken by Nova Scotia Power Inc. (NSPI), with emphasis on ensuring that affiliate transactions and expenditures are in the best interests of ratepayers. Mr. Bennett affirms his commitment to transparency and customer service, while the Chair underscores the need for accountability and ensuring that ratepayer costs are justified.