Topic:"Rate Design" in M12833

Decarbonization Deferral Account 2025 Annual Report NS Power April 30, 2026

AI summary This document is the 2025 Annual Report for the Decarbonization Deferral Account, prepared by NS Power and dated April 30, 2026.

NON-CONFIDENTIAL 1 TABLE OF CONTENTS 4 Company) filed an application for approval of the Decarbonization Deferral Account (DDA), a 5 regulatory mechanism intended to provide flexibility for recovering the costs of thermal assets 6 being re...

AI summary NS Power filed an application for the Decarbonization Deferral Account (DDA) to recover costs from retiring thermal assets by 2030. The DDA was approved, and NS Power committed to annual reporting starting in 2025. The second annual report shows $784 million in unrecovered costs as of December 31, 2025. NS Power also sought to securitize these costs, though legislative amendments enabling securitization have not yet occurred.

17 Figure 1 – Assets within the Scope of the DDA Unrecovered Forecast Remaining NBV Decommissioning Costs Total Unrecovered at Unit/Plant ($ million) ($ million) December 31, 2025 ($ million) Point Aconi 356.1 25.7 381.8 Trenton 5 91.2 - 9...

AI summary Figure 1 outlines the assets within the scope of the Decarbonization Deferral Account (DDA), listing the remaining net book value (NBV), decommissioning costs, and total unrecovered amounts for various units and plants as of December 31, 2025.

The forecast for 2026-2029 incorporates the use of the securitization deferral of the thermal assets within the scope of the DDA, as directed by the Board in the 2026-2027 GRA decision, whereby the depreciation and cost of financing associ...

AI summary The forecast for 2026-2029 includes the securitization deferral of thermal assets within the DDA, as directed by the Board in the 2026-27 GRA decision. NS Power has prepared figures under two assumptions, considering the uncertainty around securitization and the potential unrecovered costs by 2029.

10 11 Figure 2 – Unrecovered Costs Associated with the DDA in 2029, assuming 2026 12 Securitization Unit/Plant Remaining NBV ($ million) Unrecovered Forecast Decommissioning Costs ($ million) Total Unrecovered at December 31, 2029 ($ milli...

AI summary The text presents a table showing the unrecovered costs associated with the DDA in 2029, including remaining net book value and forecasted decommissioning costs for various units and plants. The total unrecovered costs at the end of 2029 are estimated at $156.0 million.

14 The second scenario assumes securitization does not occur by the end of the 2026-2027 GRA test period, and as such, the depreciation and financing costs deferred in accordance with the securitization deferral remain on NS Power's balanc...

AI summary This text discusses a scenario where securitization does not occur by the end of the 2026-2027 GRA test period, leading to deferred depreciation and financing costs remaining on NS Power's balance sheet as a regulatory asset. These costs are included in the forecast unrecovered costs for assets within the scope of the DDA, with details provided in Appendix B(2) – No Securitization.

1 Figure 3 – Unrecovered Costs Associated with Assets within DDA in 2029, assuming No 2 Securitization Unit/Plant Remaining NBV ($ million) Unrecovered Forecast Decommissioning Costs ($ million) Securitization Deferral - Deferred Financing...

AI summary Figure 3 shows the unrecovered costs associated with assets within the Decarbonization Deferral Account (DDA) in 2029, assuming no securitization. The table lists the remaining net book value, unrecovered decommissioning costs, deferred financing costs, and total unrecovered costs for various units and plants.

4 In a scenario where future securitization does not occur, amounts included in the Securitization 5 Deferral account will be an unrecovered cost associated with the assets within the scope of the 6 DDA. While NS Power is not proposing the...

AI summary The text discusses the potential future recovery of unrecovered costs, including those in the Decarbonization Deferral Account and Net Book Value, through a General Rate Application or other regulatory proceeding if securitization does not occur.

demonstrate the potential benefits of securitization relative to recovery using the DDA. As illustrated in Figure 5, the use of low-cost securitized debt, DATE FILED: April 30, 2026 Page 9 of 11 rather than the utility's weighted average c...

AI summary The text discusses the potential benefits of securitization compared to the Decarbonization Deferral Account (DDA) for recovering net book value over a 30-year period. It highlights that securitization could reduce income tax expenses and overall financing costs, leading to customer benefits of approximately $184 million. The analysis compares two scenarios: securitization and DDA amortization over 10 and 20-year periods.

Figure 5 – Revenue Requirement for Securitization vs DDA (28-year DDA Amortization) Revenue Requirement ($ Million) Securitization DDA Cost (Benefit) Principal Payments 713 713 - Financing Costs – Debt & Equity 671 699 (28) Income taxes 29...

AI summary Figure 5 compares the revenue requirements for securitization and the Decarbonization Deferral Account (DDA) over a 28-year amortization period. The table shows that securitization has lower principal payments, financing costs, and income taxes compared to DDA, resulting in a lower overall revenue requirement and net present value.

Unrecovered Cost for DDA Assets at December 31, 2025 ($ Millions) Unrecovered Forecast Total Unrecovered Unit/Plant Remaining NBV Decommissioning Costs Dec. 31, 2025 Point Aconi 356.1 25.7 381.8 Trenton 5 91.2 - 91.2 Trenton 6 152.0 - 152....

AI summary The table outlines the unrecovered costs for DDA assets at December 31, 2025, and 2029, including remaining net book value, decommissioning costs, and deferred financing costs for various units and plants.

DDA Period 28 Revenue Requirement Without Securitization Year 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 Opening balance 713,000,000 686,400,000 659,800,000 636,235,714 612,671,429 589,107,143...

AI summary The document presents a table detailing the revenue requirement and balance changes for the DDA Period 28, covering years from 2028 to 2045. It outlines the opening and ending balances, amounts collected, and the recovery of net book value over time.

Change vs 28Y Change vs 28Y 17,858,194 16,305,308 14,752,421 13,199,535 11,646,648 10,093,762 8,540,875 6,987,989 5,435,102 3,882,216 2,329,330 776,443 - - - 699,199,000 13,609,537 13,263,042 12,916,547 12,570,053 12,223,558 11,877,064 11,...

AI summary The document presents a table comparing changes against a baseline (28Y) with numerical values across multiple years, including revenue requirement, securitization, DDA, and cost (benefit) figures. It likely relates to financial planning or regulatory proceedings involving Nova Scotia Power and the Nova Scotia Utility and Review Board.

DDA Period 10 Revenue Requirement Without Securitization Year 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 Opening balance 713,000,000 686,400,000 659,800,000 593,820,000 527,840,000 461,860,000...

AI summary The table outlines the DDA Period 10 revenue requirement without securitization, showing opening and ending balances, amounts collected, and recovery of net book value over multiple years. It includes figures from 2028 to 2045, highlighting changes in the DDA balance and revenue requirements over time.

NON-CONFIDENTIAL 1 Request IR-1: 2 3 Reference: Figure 2 – Unrecovered DDA costs in 2029 assuming 2026 Securitization. 4 5 1. Please provide an explanation for the expenses included for each unit/plant in the 6 "remaining NBV" column. 7 8...

AI summary The text outlines a request for clarification on the expenses included in the 'remaining NBV' column and the derivation of forecasted decommissioning costs. It also inquires about the impact of delaying securitization until 2027 and why securitization has not been applied to these costs. The response explains that the remaining NBV is based on forecasted capital costs, additions, retirements, depreciation, and securitization proceeds.

Decarbonization Deferral Account 2025 Annual Report (NSEB M12833) NSPI Responses to Consumer Advocate Information Requests

AI summary The document outlines NSPI's responses to information requests from the Consumer Advocate regarding the Decarbonization Deferral Account 2025 Annual Report (NSEB M12833). It provides details on the account's management and related financial considerations.

NON-CONFIDENTIAL 1 Request IR-1: 5 recovery are assumed to occur over the same amortization period, or whether securitization 6 is modeled on a fixed term independent of the DDA amortization assumptions. 7 8 Response IR-2: 9 10 The securit...

AI summary The text discusses the modeling of securitization recovery over a fixed 30-year period and contrasts it with the amortization recovery of the DDA over varying periods. It also addresses the recovery of financing costs through revenue requirement in the DDA scenario and clarifies that no portion of financing costs is deferred.

Decarbonization Deferral Account 2025 Annual Report (NSEB M12833) NSPI Responses to Nova Scotia Energy Board Information Requests

AI summary The document outlines NSPI's responses to information requests from the Nova Scotia Energy Board regarding the Decarbonization Deferral Account 2025 Annual Report. It provides details on the account's purpose, management, and financial aspects.

Decarbonization Deferral Account 2025 Annual Report (NSEB M12833) NSPI Responses to Nova Scotia Energy Board Information Requests

AI summary The document outlines NSPI's responses to information requests from the Nova Scotia Energy Board regarding the Decarbonization Deferral Account 2025 Annual Report. It provides details on the account's purpose, management, and financial aspects.

Decarbonization Deferral Account 2025 Annual Report (NSEB M12883) NSPI Responses to Nova Scotia Energy Board Information Requests

AI summary This document outlines Nova Scotia Power Inc.'s responses to information requests from the Nova Scotia Energy Board regarding the Decarbonization Deferral Account 2025 Annual Report. It provides details on the account's management and related financial and regulatory considerations.

IN THE MATTER OF THE PUBLIC UTILITIES ACT -and- IN THE MATTER OF THE NOVA SCOTIA POWER INCORPORATED 2025 Annual Report respecting the Decarbonization Deferral Account BEFORE : Stephen T. McGrath, K.C., Chair Roland A. Deveau, K.C., Vice Ch...

AI summary The document outlines a regulatory proceeding under the Public Utilities Act, focusing on Nova Scotia Power Inc.'s 2025 Annual Report regarding the Decarbonization Deferral Account. The proceeding is before a panel including Stephen T. McGrath, Roland A. Deveau, and Steven M. Murphy.

HEARING ORDER On April 30, 2026, NS Power filed its 2025 Annual Report with the Nova Scotia Energy Board respecting the Decarbonization Deferral Account. The Board has determined that this proceeding will be conducted by way of a paper hea...

AI summary NS Power submitted its 2025 Annual Report regarding the Decarbonization Deferral Account to the Nova Scotia Energy Board. The Board has opted for a paper hearing process to conduct the proceeding.

IN THE MATTER OF THE PUBLIC UTILITIES ACT -and- IN THE MATTER OF THE NOVA SCOTIA POWER INCORPORATED 2025 Annual Report respecting the Decarbonization Deferral Account BEFORE : Stephen T. McGrath, K.C., Chair Roland A. Deveau, K.C., Vice Ch...

AI summary The document outlines a regulatory proceeding under the Public Utilities Act, focusing on Nova Scotia Power Inc.'s 2025 Annual Report regarding the Decarbonization Deferral Account. The proceeding is presided over by Stephen T. McGrath (Chair), Roland A. Deveau (Vice Chair), and Steven M. Murphy (Member).

HEARING ORDER On April 30, 2026, NS Power filed its 2025 Annual Report with the Nova Scotia Energy Board respecting the Decarbonization Deferral Account. The Board has determined that this proceeding will be conducted by way of a paper hea...

AI summary NS Power submitted its 2025 Annual Report regarding the Decarbonization Deferral Account to the Nova Scotia Energy Board on April 30, 2026. The Board opted for a paper hearing process to conduct the proceeding.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: The Public Utilities Act, R.S.N.S. 1989, c. 380 as amended – and – IN THE MATTER OF: The Nova Scotia Power Incorporated 2025 Annual Report respecting the Decarbonization Deferral Account

AI summary The Nova Scotia Energy Board is considering matters under the Public Utilities Act and the 2025 Annual Report of Nova Scotia Power Incorporated, focusing on the Decarbonization Deferral Account. The proceeding addresses regulatory oversight of decarbonization-related financial mechanisms.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: The Public Utilities Act IN THE MATTER OF: The Nova Scotia Power Incorporated 2025 Annual Report respecting the Decarbonization Deferral Account

AI summary The Nova Scotia Energy Board is considering matters under the Public Utilities Act and the 2025 Annual Report of Nova Scotia Power Incorporated, focusing on the Decarbonization Deferral Account. The proceeding addresses regulatory oversight of utility reporting and decarbonization-related financial mechanisms.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: The PUBLIC UTILITIES ACT -and- IN THE MATTER OF: the NOVA SCOTIA POWER INCORPORATED 2025 Annual Report respecting the Decarbonization Deferral Account

AI summary The Nova Scotia Energy Board is addressing two matters: the Public Utilities Act and Nova Scotia Power Incorporated's 2025 Annual Report, focusing on the Decarbonization Deferral Account. The latter is a financial mechanism tied to decarbonization efforts, likely involving cost deferral and regulatory oversight.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: The Public Utilities Act - and - IN THE MATTER OF: The Nova Scotia Power Incorporated 2025 Annual Report respecting the Decarbonization Deferral Account

AI summary The Nova Scotia Energy Board is considering matters under the Public Utilities Act and Nova Scotia Power's 2025 Annual Report concerning the Decarbonization Deferral Account. The proceeding addresses regulatory oversight of utility reporting and decarbonization-related financial mechanisms.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: The Public Utilities Act -and- IN THE MATTER OF: The Nova Scotia Power Incorporated 2025 Annual Report respecting the Decarbonization Deferral Account

AI summary The Nova Scotia Energy Board is addressing the Public Utilities Act and Nova Scotia Power Incorporated's 2025 Annual Report on the Decarbonization Deferral Account, focusing on regulatory compliance and financial reporting related to decarbonization initiatives.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: The Public Utilities Act, RSNS 1989, c.380, as amended - and - IN THE MATTER OF: NSEB Matter No. M12833 – Nova Scotia Power Inc. – Decarbonization Deferral Account (DDA) – 2025 Annual Report

AI summary The Nova Scotia Energy Board is reviewing Nova Scotia Power Inc.'s 2025 Annual Report on the Decarbonization Deferral Account (DDA) under the amended Public Utilities Act. The proceeding addresses financial mechanisms related to decarbonization efforts and compliance with regulatory frameworks.

IN THE MATTER OF THE NOVA SCOTIA POWER INCORPORATED 2025 Annual Report respecting the Decarbonization Deferral Account

AI summary The document pertains to a regulatory proceeding involving Nova Scotia Power Incorporated, focusing on its 2025 Annual Report regarding the Decarbonization Deferral Account. The report likely addresses mechanisms for managing decarbonization-related costs and their deferral.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: THE PUBLIC UTILITIES ACT - and - IN THE MATTER OF: THE NOVA SCOTIA POWER INCORPORATED 2025 Annual Report Respecting the Decarbonization Deferral Account INFORMATION REQUESTS To: Nova Scotia Power...

AI summary The Nova Scotia Energy Board has issued an information request to Nova Scotia Power regarding their 2025 Annual Report on the Decarbonization Deferral Account under the Public Utilities Act. Responses are due by June 19, 2026, with contact details provided for submissions.

1 2026 M12833 2 NOVA SCOTIA ENERGY BOARD 3 IN THE MATTER OF: The Public Utilities Act 4 5 IN THE MATTER OF: The Nova Scotia Power Incorporated 2025 Annual Report respecting the Decarbonization Deferral Account 6 7 INFORMATION REQUESTS To:...

AI summary The Nova Scotia Energy Board has issued an information request to Nova Scotia Power Incorporated (NSPI) regarding the Decarbonization Deferral Account (DDA) in its 2025 Annual Report. The Industrial Group seeks clarification on how the 30-year modelling period (2028–2057) relates to 10-, 20-, and 28-year DDA amortization scenarios, including NPV revenue calculations and cash flow treatment beyond amortization periods.

1 M12833 2 3 4 NOVA SCOTIA ENERGY BOARD 5 IN THE MATTER OF: The PUBLIC UTILITIES ACT 6 7 -and 8 9 IN THE MATTER OF: the NOVA SCOTIA POWER INCORPORATED 2025 Annual Report 10 respecting the Decarbonization Deferral Account 11 12 13 14 15 INF...

AI summary The Nova Scotia Energy Board has issued information requests to Nova Scotia Power Inc. regarding its 2025 Annual Report, specifically concerning the Decarbonization Deferral Account. Responses are due by June 19, 2026, and the Consumer Advocate is involved in the process.

May 29, 2026 VIA EMAIL Ms. Crystal Henwood Clerk of the Board Nova Scotia Energy Board 1601 Lower Water Street, 3rd Floor Halifax NS B3J 3S3 Dear Ms. Henwood: Re: M12833 – Nova Scotia Power Incorporated 2025 Annual Report Respecting the De...

AI summary The Small Business Advocate confirms no additional information requests regarding Nova Scotia Power's 2025 Annual Report on the Decarbonization Deferral Account. The letter addresses Matter M12833 before the Nova Scotia Energy Board.

Submissions: The SBA respectfully submits that this 2025 DDA Report, while inclusive of helpful scenario analyses of the financial benefit of securitization, represents only the current status of the DDA account and more work is required w...

AI summary The Small Business Advocate (SBA) submits that the 2025 DDA Report provides useful analysis on the financial benefits of securitization but notes that further work is needed on how the DDA will be addressed moving forward. The SBA looks forward to continuing discussions with the Board, NS Power, and other intervenors.

Submissions On review, it would appear that the Report is responsive to the reporting requirements as directed by the Board, and consistent with the DDA Manual. The CA takes no issue with the contents of the Report in this regard, and part...

AI summary The submission reviews a report's compliance with Board requirements and notes NS Power's continued commitment to securitization for coal asset recovery. However, no substantive progress update on securitization was provided since the 2026-2027 GRA. The CA supports securitization due to its benefits to customers, referencing Table 5 of the Application.

Revenue Requirement ($ Million) Securitization DDA Cost (Benefit) Principal Payments 713 713 - Financing Costs – Debt & Equity 671 699 (28) Income taxes 291 447 (156) Revenue Requirement 1,675 1,859 (184) NPV of Revenue Requirement 654 860...

AI summary The text discusses concerns raised by the CA regarding the lack of progress on securitization and the potential unrecovered costs of $156M by 2029. The CA requests quarterly updates from NS Power and questions why the scope of the securitization transaction cannot be adjusted to include additional unrecovered costs.

M12833 Decarbonization Deferral Account 2025 Annual Report Reply Submissions NS Power July 24, 2026

AI summary This document pertains to the 2025 Annual Report Reply Submissions for the Decarbonization Deferral Account under matter M12833. It is submitted by NS Power on July 24, 2026.

NON-CONFIDENTIAL 1 TABLE OF CONTENTS 2 3 1.0 Introduction 3 4 2.0 Consumer Advocate Comments 3 5 2.1 NS Power Reply 4 6 3.0 Small Business Advocate Comments 6 7 3.1 NS Power Reply 6 8 3.2 Future DDA Work 7 9 3.3 NS Power Reply 7 10 4.0 Con...

AI summary NS Power filed its 2025 Decarbonization Deferral Account (DDA) Annual Report, and the Consumer Advocate (CA) and Small Business Advocate (SBA) submitted comments. The CA noted that NS Power provided no substantive update on securitization progress and expressed concern over the lack of advancement on this issue.

DATE FILED: July 24, 2026 Page 3 of 8 1 believes it would be beneficial if NS Power committed to providing quarterly 2 updates on its efforts to pursue securitization. 3 Further, with respect to securitization, the CA notes that Figure 2 o...

AI summary The Consumer Advocate (CA) requests quarterly updates from NS Power on its securitization efforts, noting that unrecovered costs could reach $156M by 2029. NS Power agrees with the value of securitization but argues that annual reporting is sufficient, as legislative action is required and beyond its control, and quarterly updates would merely reiterate delays.

1 4.0 CONCLUSION 2 - 3 NS Power appreciates the engagement of the Consumer Advocate and Small Business Advocate - 4 on this matter and acknowledges their interest in achieving the significant customer benefits that - 5 securitization would...

AI summary NS Power acknowledges the involvement of the Consumer Advocate and Small Business Advocate in the securitization process and emphasizes the need for provincial enabling regulations. The company is committed to working with the Board and stakeholders, and will provide annual updates through the DDA reporting process.

M12833 - Nova Scotia Power Inc. - Decarbonization Deferral Account - 2025 Annual Report The Decarbonization Deferral Account was proposed in NS Power's 2023-2024 General Rate Application. In a settlement agreement in that matter, NS Power...

AI summary The Decarbonization Deferral Account was established to manage the retirement of thermal plant assets by 2030. NS Power proposed securitization of related costs, but legislative requirements for securitization remain unpassed. The account's scope and retirement dates are subject to changes from the Integrated Resource Plan.