Topic:"Rate Design" in M12550

Technical Deliverables: - Not Required (NR): Deliverable may not be required for all estimates of the specified class, but specific project estimates may require at least preliminary development. - Started (S): Work on the deliverable has...

AI summary The document outlines a checklist for technical deliverables in IT/OT projects, categorizing them into Not Required, Started, Preliminary, and Complete. The checklist was developed by NSPI to demonstrate confidence in cost estimate maturity, following AACE guidelines.

16 Contractor AO Rates 17 18 The remaining eligible expenditures that are not allocated to capital through the labour AO 19 rates constitute the total eligible expenditures to be allocated through the Contract AO rate. 20 The contract labo...

AI summary The text explains how eligible expenditures not allocated to capital through labour AO rates are allocated through the Contract AO rate. The contract labour percentage is applied to determine eligible expenses to be capitalized, and the total eligible expenses are divided by total contract costs to determine the applicable AO rate.

3 4.3 Overall Project Prudence & Ratepayer Interest - 4 The following summarizes Midgard's conclusions from the review of the Project: - 5 1. Delivery Model Justification: NSPI defaults to an internal resource model for core execution with...

AI summary Midgard's review of the Project highlights concerns with NSPI's delivery model and estimate basis. NSPI did not conduct a comparative financial analysis for internal resource allocation, and the Phase 6 estimate lacks historical data calibration, relying instead on judgment rather than probabilistic risk modeling.

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.

Midgard Response IR-5: - a) Midgard assesses the 10% contingency as a matter of cost reasonableness, utilizing NSPI's non- binding guidelines as an industry reference for Class 3 estimating practices rather than conducting a compliance aud...

AI summary Midgard assesses the 10% contingency as a matter of cost reasonableness, referencing NSPI's non-binding guidelines for Class 3 estimating practices. It also discusses the implications of the Board accepting or rejecting a 30% labour reduction and confirms its engagement scope.

Midgard Response IR-6: - a) Midgard's finding regarding the absence of formal lessons-learned assessments was documented as a risk observation. [13](#page-12-0) Midgard limited its formal recommendations to adjusting the labour hour estima...

AI summary Midgard's response to IR-6 highlights a risk observation regarding the absence of formal lessons-learned assessments. Midgard's recommendations focus on adjusting labour hour estimates and enhancing reporting requirements to ensure cost reasonableness in the proceeding.

1. Please provide the methodology used to develop the Class 3 Estimate. For example, is the estimate based on historical data or NSPI’s prior RTU replacement experience? 2. Please confirm if the methodology used to develop the Class 3 Esti...

AI summary The text contains a series of questions directed at Nova Scotia Power (NSP) regarding the methodology and contingency usage in RTU replacement projects across multiple phases. It seeks details on historical data usage, differences in methodology, contingency usage breakdowns, and productivity tracking and its impact on Phase 6 estimates.

21 Request IR-4: 20 22 With respect to Midgard's recommendation (p. 36) stating, "Midgard recommends a 30% 23 reduction in labour hours to align the estimate with reasonable productivity levels supported by 24 technical documentation": - 2...

AI summary The document outlines a request for clarification and revised project budgeting based on Midgard's recommendations regarding labour hours and overtime. It asks for a revised budget, explanation of reconciling findings, and evaluation of labour hour assumptions and overhead rates.

recommendation. In your response, please state whether such a decision would, in Midgard’s opinion, be reasonable even if it is not Midgard’s recommendation. 3. With respect to Table 21 in Appendix A, how did Midgard evaluate labour hours...

AI summary The document contains a series of questions directed to Midgard regarding its analysis and recommendations on labour hours, overhead rates, and contingency amounts. The focus is on evaluating assumptions and potential incentives related to internal versus external labour resources.

1. Introduction An RTU refers to a Remote Terminal Unit, a microprocessor-controlled field device that collects data from field equipment and sends or receives information to and from a central control system (SCADA) for process control. N...

AI summary The Nova Scotia Energy Board evaluated NS Power's justification for increased labour costs in Phase 6 of the RTU Replacements Program, finding insufficient detail and not approving the phase. The Board engaged Midgard Consulting Inc. to review the project and provide cost analysis, with multiple parties submitting evidence and responses.