Topic:"Rate Design" in M12521

PARTIALLY CONFIDENTIAL (Appendices Only) 1 TABLE OF CONTENTS 7 8 9 10 11 12 13 [349] The DCRR also requires that on or before October 1 of each year, NS Power will file its application for approval of the DSM cost recovery charges to be ef...

AI summary The document discusses the Demand-Side Management Cost Recovery Rider (DCRR) and its approval process. NS Power requested an extension to file its 2026 DCRR application, which was granted. The DCRR includes components for program cost recovery and balance adjustment. Legislation was passed to extend E1's DSM plan period.

- 1 $63.75 million for the 2026 Plan year. On April 30, 2025, E1 filed its proposed 2026 DSM - 2 Extension Plan, which remains an open Matter before the Board (M12249). 3 - 4 For the 2026 DCRR, the PCR is set to collect E1's proposed 2026...

AI summary The document outlines E1's proposed 2026 DSM Extension Plan and the associated 2026 DCRR, noting that variances in contract spending over the 2023-2026 period will be adjusted in future DCRR Applications. The matter remains open before the Board (M12249).

Figure 1 – 2026 PCR and BA[4](#page-3-1) 16 Applicable Tariff PCR (Cents per kWh) BA (Cents per kWh) DCRR (Cents per kWh) Domestic Service, Domestic Service Time-of-Day, Domestic Service Time of Use, Domestic Service Critical Peak Pricing...

AI summary The text presents a table outlining the 2026 Program Cost Recovery (PCR), Balance Adjustment (BA), and Demand-Side Management Cost Recovery Rider (DCRR) rates for various tariff categories. It also notes that the 2024 PCR was based on projected load, while the DCRR is based on actual load during the same period.

2 The DCRR charges for 2026 as set out in Figure 1 were developed in accordance with the revised 3 allocation of the DSM costs as agreed by Customer Representatives who, along with NS Power, 4 have engaged in a collaborative process to rea...

AI summary NS Power is proposing to revise the allocation of the Demand Side Management (DSM) Rider by removing the 25% allocation to system benefit, making it 100% allocated to program costs. This change aims to better align cost responsibility with direct beneficiaries and simplify cost-of-service treatment, as supported by stakeholder feedback and the Elenchus Report.

Figure 2 – Direct DSM Billings for OATT MEUs[7](#page-5-0) 10 MEU Monthly PCR Payments Annual PCR Amounts Customer A 26,446 317,355 Customer B 4,321 51,858 Customer C 3,496 41,956 Customer D 944 11,324 Total 35,208 422,492 Recovery of the...

AI summary The document outlines the recovery of DSM costs from OATT MEUs through monthly billings and discusses the application of DCRR charges or credits for RtR customers based on the Board's recent ruling.

10 Appendix C- Proof of Revenue, "Percent increase in summary" tab. 1 3.0 2026 PROGRAM COST RECOVERY 2 3 The 2026 PCR is designed to recover the 2026 program budgeted costs of $63.75 million, as per 4 E1's 2026 DSM Extension Application.11...

AI summary This document discusses the 2026 Program Cost Recovery (PCR) and Balance Adjustment (BA) mechanisms, designed to recover and adjust for program costs and sales volume variances. It references E1's 2026 DSM Extension Application and the Board's decision on the 2025 DCRR, which mandates adjustments to exclude interest and update charges.

Applicable Tariff PCR (cents per kWh) BA (cents per kWh) DCRR (cents per kWh) Domestic Service, Domestic Service Time-of-Day, Domestic Service Time-of-Use, Domestic Service Critical Peak Pricing 0.642 0.006 0.648 Small General, Small Gener...

AI summary The document presents a table of applicable tariffs with associated Program Cost Recovery (PCR), Base Adjustment (BA), and Demand-Side Management Cost Recovery Rider (DCRR) rates for various service categories in Nova Scotia, effective January 1, 2026.

APPLICABILITY This schedule applies to all electric rate classes with the exception of the Wholesale Market Non-Dispatchable Supplier Spill Tariff, the Load Retention Tariff, and the Extra Large Industrial Active Demand Control Tariff. For...

AI summary This schedule applies to all electric rate classes except specific tariffs. For customers in the Wholesale or Renewable to Retail markets, costs of electricity efficiency and conservation activities are directly billed on the customer's class energy bill, as if served by NS Power under its bundled service offerings.

PCR = Program Cost Recovery The PCR includes all estimated costs for the upcoming calendar year for the DSM Plan that has been requested by the Franchise Holder and approved by the NSUAREB (Approved DSM). It includes the cost of planning,...

AI summary The Program Cost Recovery (PCR) encompasses the estimated costs for the upcoming year for the Approved DSM Plan, including planning, development, implementation, and administrative expenses. It is calculated for each rate schedule using the methodology outlined in Schedule B of the tariff.

Conditions - For bundled service customers, other than those who take service in the Wholesale Market (whether in whole or in part), this approach applies to classes as a whole (not to individual customers). - For customers who take servic...

AI summary The conditions outlined apply to bundled service customers, distinguishing between those who take service in the Wholesale Market and those who do not. The approach applies to classes as a whole for non-Wholesale Market customers and to individual customers for those in the Wholesale Market. It also applies to total Approved DSM costs.

2026 DSM Rider Appendix C has been filed electronically. RATE SCHEDULES units 2025 2026 Variance % Variance Domestic Service Tariff (Standard Offer) Customer Charge $/mo 19.1700 19.170 0.000 0.0% Energy Charges Base cost of fuel Non-fuel S...

AI summary The 2026 DSM Rider Appendix C has been filed electronically, showing no changes in the Domestic Service Tariff and Domestic Service Time-of-Day Tariff for 2026 compared to 2025. Key components like customer charge, energy charges, and various fees remain unchanged, with no variance in rates or percentages.

(1 )2026-2027 GRA Appendix 12 A-C, Section 5.9 DSM Rider COLUMN Α В С D EF G Н ı J K L М N O P Q Line # _ associat Allocation 2026 DSM Program Costs associated with benefits realized by participating classes System Benefit Costs allocation...

AI summary This section of the document outlines the allocation of 2026 DSM Program Costs among different rate classes, including residential, small general, and large general/small industrial. It details the distribution of costs based on demand and energy relative shares, as well as the associated sales forecast and PCR riders.

2026 DSM Cost Recovery Rider (IG M12521) NSPI Responses to IG Information Requests 1 Request IR-7: 2 3 Reference: M12249, E-1, E1 2026 DSM Extension Application, Appendix A, Section 3.6 4 Rate Class Allocations. 5 6 Reference: N-1, DCRR Ap...

AI summary The document discusses the 2026 DSM Cost Recovery Rider (IG M12521) and NSPI's responses to information requests. Specifically, it addresses the reconciliation of a discrepancy in the allocation of funds for the municipal rate class, referencing other documents such as M12249 and NSEB IR-4. The response explains that the municipal class allocation includes both bundled and unbundled service categories.

13 Applicable Tariff cents per kWh BA DCRR Domestic Service, Domestic Service Time-of-Day, Domestic Service Time of Use, Domestic Service Critical Peak Pricing 0.658 0.006 0.664 Small General, Small General Time of Use, Small General Criti...

AI summary The text presents a table of applicable tariffs with different rates in cents per kWh for various service categories in Nova Scotia. The table includes base rates (BA), DCRR adjustments, and total rates. Some entries include negative values, indicating adjustments or credits. A confidentiality note mentions that a specific attachment has been removed.

NON-CONFIDENTIAL 1 Request IR-1: 2 3 Refer to M12521, Exhibit N-1, the Application for the 2026 DSM Cost Recovery Rider 4 (DCRR) submitted by NS Power (the "Application") and specifically to Appendix B-2, pages 5 1-4 of 4, and to NS Power'...

AI summary The text outlines a request (IR-1) asking NS Power to explain discrepancies between the Balancing Adjustment in the 2026 DSM Cost Recovery Rider (DCRR) application and the 2026-2027 General Rate Application (GRA). Specifically, it questions why the Balancing Adjustment and methodological steps in the DCRRA do not align with those in the GRA and whether this is due to timing or another reason.

1 Request IR-4: 2 3 Refer to M12521, Exhibit N-1, page 7 of 10, lines 7 - 8, which states: "The Company used the 4 following process for allocation of 2026 PCR cost responsibilities to OATT MEUs:" but there 5 is no process set out. Please...

AI summary The response to Request IR-4 explains that the allocation process for 2026 PCR cost responsibilities to OATT MEUs was legacy language from prior DCRR Applications and has been removed. The rationale for its removal is outlined in footnote 8 of the 2026 DCRR Application, citing the proposed removal of system benefits from the DSM cost allocation process.

INTERIM ORDER NOVA SCOTIA POWER INCORPORATED (NS Power) applied to the Nova Scotia Energy Board on October 22, 2025, for approval of its 2026 DCRR effective January 1 through December 31, 2026. The Board established a paper hearing for thi...

AI summary NS Power applied for approval of its 2026 DCRR, contingent on the outcome of its ongoing general rate application. The Board issued an interim order due to the expiration of 2025 DCRR charges and the need for approved rates for 2026.

Findings The Board's Interim Order dated December 22, 2025, approved the continuation of the 2025 DCRR charges commencing January 1, 2026, until further order of the Board in this matter, or as part of NS Power's ongoing GRA. NS Power file...

AI summary The Board approved the continuation of the 2025 DCRR charges until further order, effective January 1, 2026. All parties supported the 2026 DCRR as proposed by NS Power. The Board also approved Direct Monthly Payments for OATT MEUs and deferred a decision on interest entitlement until further consideration.

FINAL ORDER NOVA SCOTIA POWER INCORPORATED (NS Power) applied to the Nova Scotia Energy Board for approval of its 2026 DCRR effective January 1, 2026, through December 31, 2026. This matter was considered by way of a paper hearing. Followi...

AI summary NS Power applied for approval of its 2026 DCRR, with the Board issuing an interim order applying the 2025 DCRR charges until a final decision. The matter was resolved following the release of the general rate application decision.

Applicable Tariff PCR (cents per kWh) BA (cents per kWh) DCRR (cents per kWh) Domestic Service, Domestic Service Time-of-Day, Domestic Service Time-of-Use, Domestic Service Critical Peak Pricing 0.642 0.006 0.648 Small General, Small Gener...

AI summary The document presents a table of applicable tariffs with corresponding PCR, BA, and DCRR values for various service categories, effective January 1, 2026. It outlines the cost recovery mechanisms for different customer classes, including residential, commercial, and industrial services.

Applicable Tariff PCR (cents per kWh) BA (cents per kWh) DCRR (cents per kWh) Gen. Replacement & Load Following 0.000 -0.027 -0.027 One Part Real Time Pricing 0.000 0.010 0.010 Shore Power 0.000 0.102 0.102 SCHEDULE B

AI summary Schedule B presents a table outlining applicable tariffs and associated costs, including PCR, BA, and DCRR, for various energy-related services such as Gen. Replacement, Load Following, One Part Real Time Pricing, and Shore Power.

Request IR-5: - Please explain why the Board approved values for the weighted average cost of capital (WACC) - are not applied in Appendix A-2 in keeping with the associated effective dates from M10431, - M11563 and M11990.

AI summary The text requests an explanation for why the Board approved values for the weighted average cost of capital (WACC) are not applied in Appendix A-2, despite the effective dates from referenced matters.

Request IR-2: Refer to M12521, Exhibit N-1, Figure 1, 2026 PCR and BA , on page 4 of 10, which shows the Cents per kWh impact for customer classes offering critical peak pricing tariffs, and please explain whether and how the impacts shown...

AI summary The document requests an explanation of how the Cents per kWh impact for customer classes offering critical peak pricing tariffs, as shown in M12521, would change based on NS Power's options for continuing the Time of Use and Critical Peak Pricing programs, as approved by the NSEB in M12499.

Recovery of the DSM costs applicable to the Renewable to Retail (RtR) customer classes, as recently evidenced in the Board's ruling on rate treatment of Renewall's customers, will be provided through application of the DCRR charges or cred...

AI summary The document discusses the recovery of DSM costs for Renewable to Retail (RtR) customers through the application of DCRR charges or credits. It requests an explanation of how customer migration to RtR will impact the PCR and BA components of the rider for non-migrating customers and how NSPI plans to process and record these charges or credits.

1 2 3 4 being held in abeyance, NS Power has provided tab "Table 1 (BA with Int)(2026) and Table 2 (BA with Int)(2026)" to Schedule B-2, which incorporates the financing costs into the BA component of the proposed 2026 DCRR. 5 6 (a) Does N...

AI summary The document discusses NS Power's submission of tables related to the 2026 DCRR, including financing costs incorporated into the BA component. It also includes a series of requests from the Board regarding interest rates, surplus or underspend related to DSM, and load forecasts for 2026.

General Comments As Nova Scotia Power notes in the application, the DCRR is intended to compensate the utility for costs associated with DSM programs that are developed and delivered by Efficiency One. It has two parts, the Program Cost Re...

AI summary Nova Scotia Power explains the DCRR's purpose to recover costs from DSM programs delivered by Efficiency One. The Consumer Advocate agrees that the DCRR charges for 2026 align with an agreement between Customer Representatives and Nova Scotia Power regarding the 2026-2027 General Rate Application. The actual tariffs for the 2026 PCR and Balance Adjustment are detailed in the application.

Delivered by E-mail Crystal Henwood Regulatory Affairs Officer/Clerk Nova Scotia Energy Board 3rd Floor, 1601 Lower Water Street PO Box 1692, Unit "M" Halifax NS B3J 3S3 Dear Ms. Henwood: Re: M12521 - NSPI - Application for 2026 DSM Cost R...

AI summary The Industrial Group comments on NSPI's 2026 DSM Cost Recovery Rider (DCRR) application, noting the proposed rate increases and adjustments. The DCRR includes Program Cost Recovery and Balance Adjustment components, with the latter addressing load fluctuations. The Industrial Group supports recent tariff language changes and raises concerns about cost allocation, interest on BA balances, and the effective date of the DCRR.

2. Need to Address issue of Interest and Interpretation of s. 64AB of the PUA In this application, NSPI is not seeking the Board's approval for recovery of interest on the BA amounts. NSPI's proposed financing costs for the 2026 BA, set ou...

AI summary NSPI is seeking clarification on the interpretation of s. 64AB of the PUA regarding the recovery of interest on BA amounts. The Board has deferred this issue and plans to initiate a generic proceeding. NSPI argues it is entitled to interest at its WACC, while the Industrial Group supports the generic proceeding and suggests the 2026 DCRR should be approved without interest on BA balances.

3. Interim Approval of the 2026 DCRR and/or Effective Date of the 2026 DCRR NSPI submitted this application after receiving a three-week extension from the Board. The extension compressed the review timeline to ensure new rates are in plac...

AI summary NSPI requested an extension to finalize the 2026 DCRR, which the Board granted, allowing the 2025 DCRR to remain in place until approval. The Industrial Group warns that interim approval of the 2026 DCRR could cause rate volatility, especially with the GRA hearing in January 2026, and suggests aligning the effective dates of the DCRR and GRA to minimize instability.

The Application: NS Power's Application anticipates and addresses two reasons for possible delay in the effective date for the 2026 DCRR: 1. This Application includes assumptions related to the 2026-2027 General Rate Application (the "GRA"...

AI summary NS Power's Application seeks approval for the 2026 DCRR to take effect on January 1, 2026, citing potential delays due to the pending General Rate Application and the unresolved 2026 DSM Extension Application. The Application includes two cost recovery components: the PCR and the BA component. NS Power also proposes alternatives if the 2026 DCRR is not approved.

INTERIM ORDER NOVA SCOTIA POWER INCORPORATED (NS Power) applied to the Nova Scotia Energy Board on October 22, 2025, for approval of its 2026 DCRR effective January 1 through December 31, 2026. The Board established a paper hearing for thi...

AI summary NS Power applied for approval of its 2026 DCRR, which depends on the outcome of its ongoing general rate application. The Board issued an interim order due to the expiration of 2025 DCRR charges and the need for approved rates for 2026.

The Board orders that: - 1. The 2026 DCRR will continue the approved 2025 DCRR charges commencing January 1, 2026, until further order of the Board in this matter, or as part of NS Power's ongoing general rate application. - 2. The direct...

AI summary The Board has ordered the continuation of the 2026 DCRR charges and direct monthly payments for municipal electrical utilities as approved in the 2025 DCRR proceeding, with adjustments to be made in the final order. These will remain in effect until further order or as part of NS Power's general rate application.

Findings The Board's Interim Order dated December 22, 2025, approved the continuation of the 2025 DCRR charges commencing January 1, 2026, until further order of the Board in this matter, or as part of NS Power's ongoing GRA. NS Power file...

AI summary The Board approved the continuation of the 2025 DCRR charges until further order, with an effective date of January 1, 2026. The GRA did not propose changes to the DSM rider amounts for 2026 or 2027 but did propose changes to the calculation of the BA. All parties supported the 2026 DCRR as proposed by NS Power. The decision on interest entitlement is deferred until further consideration.

The Board orders: - 1. The 2026 DCRR attached as Schedule "A" is effective January 1, 2026. The direct monthly payment amounts for the OATT MEUs, set out in Figure 2 in Exhibit N-1 in this application, are effective January 1, 2026. Howeve...

AI summary The Board has approved the 2026 DCRR, effective January 1, 2026, and outlined procedures for adjusting payments by MEUs. It also notes that interest on Balancing Adjustment balances from 2024 will be held in abeyance. The schedule applies to most electric rate classes, excluding specific tariffs.