Topic:"Rate Design" in M12768

REDACTED Crystal Henwood Clerk of the Board Nova Scotia Energy Board 1601 Lower Water Street, 3rd Floor Halifax, NS B3J 3S3 Re: Extra Large Industrial Active Demand Control (ELIADC) Tariff – 2025 Annual Report Dear Ms. Henwood: Nova Scotia...

AI summary NS Power submitted the 2025 Annual Report for the ELIADC Tariff, which resulted in a benefit of $4.4 million to other customers in 2025. This benefit was calculated based on the minimum payment amount under the tariff and the load of PHP. The report was submitted in accordance with the Board's requirement for annual reporting.

Operation Summary Despite challenges resulting from NS Power's cyber incident, the Nova Scotia Power System Operator (NSPSO), NS Power Energy Marketing team, and PHP adapted and worked collaboratively forthe benefit of all customers. The r...

AI summary NS Power's cyber incident posed challenges, but collaboration between NSPSO, NS Power Energy Marketing, and PHP ensured customer benefits. Stable fuel pricing relative to CBL forecasts and Active Demand Control's flexibility contributed to a positive 2025 ADC Load Shifting Differential.

In its July 5, 2024 Letter, the Board accepted the 2023 ELIADC Tariff Report (M11588) and provided direction on the development of a successor ELIADC Tariff for which "the Board's expectation is that NS Power will file its application by M...

AI summary The Board accepted the 2023 ELIADC Tariff Report and directed NS Power to file a successor tariff by March 31, 2025. Bates White provided recommendations on improving the ELIADC Tariff, including better benefits calculation and reporting. NS Power accepted these recommendations, and the related audit hearing was held in March 2025, with the Board issuing a decision in October 2025.

Extra Large Industrial Active Demand Control (ELIADC) Tariff 2025 Annual Report (NSEB M12768) NSPI Responses to IG Information Requests 1 Request IR-1: 2 3 4 Reference: 2025 Annual Report, Exhibit N-1, p. 3/9, Table 1 5 (a) Please explain...

AI summary The response to IR-1 explains that the 2025 benefit of the ELIADC tariff is compared to the initial forecast of benefits from 2020 to 2023, which ranged from $6 to $13 million annually. The response also outlines the need to break down the $4.4 million benefit into fixed cost recovery and FAM application, and it requests an explanation of the factors influencing the positive ADC load shifting differential in 2025.

EXTRA LARGE INDUSTRIAL ACTIVE DEMAND CONTROL TARIFF Page 7 of 7 Schedule 1: Active Demand Control Energy Supply Protocol

AI summary The document outlines the Active Demand Control Energy Supply Protocol as part of the Extra Large Industrial Active Demand Control Tariff, which is on page 7 of 7.

10 Recommendation XV-3 11 12 However, in its efforts to provide useful and meaningful quantifications, NS Power 13 continued to pursue and, in the 2025 ELIADC Tariff Annual Report, has provided more 14 data and metrics and has additionally...

AI summary NS Power has been working to provide more detailed quantifications of the benefits of ADC load shifting in the 2025 ELIADC Tariff Annual Report. Due to a cyber incident, modelling for 2025 was paused, but data collection and model testing have resumed following the restoration of PortOps. NS Power plans to present the modelling outputs by Q2 2025.

1 Request IR-1: 6 7 8 9 10 11 12 13 14 15 16 … The Company has implemented additional reporting metrics and data, as requested in Recommendation XV-3, consistent with the Board's direction in the 2023 Report (M12123), and the Board's M1218...

AI summary The Company has implemented additional reporting metrics as requested by the Board. It is investigating the detailed quantification of load shifting benefits and costs, but progress is affected by the restoration timing of key data platforms. The Company plans to discuss this with the FAM Small Working Group.

Power's report included a summary of its efforts to comply with prior Fuel Adjustment Mechanism (FAM) Audit recommendations, Bates White stated that it will address that issue in its FAM Audit report. Like Bates White, the Small Business A...

AI summary The document discusses NS Power's compliance with the Fuel Adjustment Mechanism (FAM) Audit and the ELIADC tariff's performance, noting concerns about the benefits and data restoration following a cyber event. The Small Business Advocate and Industrial Group have raised issues regarding insufficient updates and protection for ratepayers.

Reply Submissions Port Hawkesbury Paper, in its reply submissions, requested that the 2025 ELIADC tariff report be approved as filed. Port Hawkesbury Paper noted there is no cause for concern regarding the Cause Code 5 hours since the 95 h...

AI summary Port Hawkesbury Paper requests approval of the 2025 ELIADC tariff report, noting that the low Cause Code 5 hours and issues related to load forecast revisions and interest on post-year-end balances should be addressed in the new tariff proceeding (M12661). NS Power defends the ELIADC tariff, stating that market conditions, not design flaws, caused the variance between forecast and actual results and that the tariff is an annual settlement mechanism.

(b) Please provide a copy of any FAM SWG presentation materials and 1 2 3 4 2026 M12768 NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: The Public Utilities Act, R.S.N.S. 1989, c.380 as amended 5 6 7 IN THE MATTER OF: Extra Large Industrial Act...

AI summary The Industrial Group has requested information from Nova Scotia Power Incorporated regarding the 2025 Annual Report, specifically about the ELIADC tariff, benefits reported, cost recovery, and factors influencing ADC load shifting differentials.

Request IR-13: Reference: 2025 Annual Report, Exhibit N-1, p. 7/9 Preamble: Recommendation XV-1 provided that " NSPI should be required to develop a benefits calculation that takes into account the hourly benefits and costs of PHP load dev...

AI summary The document references a recommendation from the 2025 Annual Report, Exhibit N-1, page 7/9, which suggests that NSPI should develop a benefits calculation considering hourly benefits and costs of PHP load deviations based on hourly quantities and prices, categorized by cause code type.

NSPI has now confirmed: After investigation and internal discussions, NS Power has concluded that it is unable to develop an hourly cost and benefit analysis of all individual Cause Codes. Modeling and isolating the costs and benefits of i...

AI summary NSPI has confirmed it cannot develop an hourly cost and benefit analysis for individual Cause Codes due to limitations in the PortOps software, which leads to conflicting dispatch results and low precision tolerance. The Board is being asked to explain prior assessments, why implementation barriers were not raised earlier, and whether NSPI plans to seek relief or propose alternatives.

Request IR-1: - For each month of 2025, please provide: - a. ELIADC Energy Charge - b. CBL Energy Charge - c. Customer Baseline Adder - d. Variable Capital Charge

AI summary Request IR-1 asks for specific monthly data from 2025, including ELIADC Energy Charge, CBL Energy Charge, Customer Baseline Adder, and Variable Capital Charge.

May 29, 2026 Delivered by e-mail Crystal Henwood Regulatory Affairs Officer/Clerk of the Board Nova Scotia Energy Board 3rd Floor, 1601 Lower Water Street Halifax, NS B3J 3S3 Vincent Musco Bates White Economic Consulting Via e-mail Subject...

AI summary This document discusses the 2025 Annual Report on the ELIADC Tariff by Nova Scotia Power, Inc. It highlights that the actual cost to serve Port Hawkesbury Paper was below the forecasted cost, resulting in a positive ADC differential. The report also notes that PHP's load was 15% below its forecast due to challenges in forecasting energy demand in the paper market.

2. The Load Shifting Differential — Negative in Four of Six Years The ADC Load Shifting Differential was positive in only two of the six years of tariff operation: 2020 ($6.6M) and 2025 ($1.5M). It was negative in 2021 (−$16.7M), 2022 (−$4...

AI summary The ADC Load Shifting Differential was positive only in 2020 ($6.6M) and 2025 ($1.5M), negative in four of six years (2021–2024). The 2025 result is attributed to fixed cost recovery, with the core economic justification for the tariff (reducing system dispatch costs) yielding minimal benefits.

4. PHP Load Revisions — Unlimited in Number and Frequency PHP's initial 2025 forecast totalled 811 GWh. There were revisions to PHP's load forecast throughout the year, with a final actual demand requirement of 691 GWh. This represents a r...

AI summary PHP's 2025 load forecast was revised downward by 15% (120 GWh) from 811 GWh to 691 GWh. NSPI states the ELIADC Tariff allows unlimited forecast revisions, while the IG argues this creates a structural advantage for PHP, recommending tariff design improvements to address the gap.

M12768 – Nova Scotia Power Incorporated – Extra Large Industrial Active Demand Control Tariff – 2025 Annual Report On March 26, 2026, Nova Scotia Power Incorporated filed its Annual Report on the performance of the Extra Large Industrial A...

AI summary Nova Scotia Power Incorporated filed its 2025 Annual Report on the Extra Large Industrial Active Demand Control Tariff (ELIADC), which allows NS Power to adjust Port Hawkesbury Paper's load in response to system conditions. The tariff provides load shifting credits, with 25% going to Port Hawkesbury Paper and 75% to NS Power customers. The ADC benefit has been positive in only two years since the tariff's inception.

Power's report included a summary of its efforts to comply with prior Fuel Adjustment Mechanism (FAM) Audit recommendations, Bates White stated that it will address that issue in its FAM Audit report. Like Bates White, the Small Business A...

AI summary The document discusses NS Power's compliance with FAM audit recommendations, the limited benefits of the ELIADC tariff, and concerns raised by the Small Business Advocate and Industrial Group regarding data restoration and tariff adequacy. It also references Matter M12661.

Reply Submissions Port Hawkesbury Paper, in its reply submissions, requested that the 2025 ELIADC tariff report be approved as filed. Port Hawkesbury Paper noted there is no cause for concern regarding the Cause Code 5 hours since the 95 h...

AI summary Port Hawkesbury Paper requested approval of the 2025 ELIADC tariff report, noting that concerns about Cause Code 5 hours and forecast accuracy should be addressed in a new tariff proceeding. NS Power defended the ELIADC tariff's benefits and attributed forecast variances to market conditions, not design flaws. It also addressed concerns about interest on post-year-end balances and the need for detailed monthly reporting.

Board Findings In its decision in Matter M09420, the Board directed NS Power to file annual assessment results as required under the terms of the ELIADC tariff. Specifically, the approved tariff states: Annually, NS Power shall report to t...

AI summary The Board accepted NS Power's 2025 ELIADC Annual Report despite late submission, noting concerns over delays and lack of enhanced quantification of load shifting benefits. NS Power cited a cyber security breach as a reason for delays and was directed to provide a firm deadline for completing the analysis by September 15, 2026. The Board also requested improved reporting transparency.