Topic:"Rate Design" in M12914

14 2.2.2 Marine Survey Cost Recovery Approach 15 16 Given the unique nature of the planned full marine survey scope and NSPML's objective 17 to achieve the best outcome for customers, the Company proposes a cost recovery 18 approach broadl...

AI summary NSPML proposes a cost recovery approach for marine surveys similar to NS Power's fuel cost treatment, allowing for adjustments once the Contracted Marine Survey cost is known. This method enables cost-effective procurement but introduces additional process steps. An alternative approach with earlier pricing locks would increase customer costs.

Date Filed: June 25, 2026 Page 9 of 28 1 The Company has discussed this approach with customer representatives and believes 2 it warrants Board consideration. 3 4 NSPML's rationale for this treatment includes: 5 6  Marine survey costs are...

AI summary NSPML discusses the challenges of managing marine survey costs, including their significance to maintenance and inspection expenses, forecasting uncertainties, and the impact on earnings. A proposed solution involves filing the Contracted Marine Survey cost confidentially after the contract award, with adjustments incorporated into the 2027 assessment.

4 Which would be the delta between the Placeholder Marine Survey cost and the Contracted Marine Survey cost after the RFP process is complete. 1 depending on timing.5 The public (including the marine market) would see only the 2 difference...

AI summary The text discusses the difference between the Placeholder Marine Survey cost and the Contracted Marine Survey cost after the RFP process is complete, emphasizing the need to protect commercially sensitive information while ensuring regulatory oversight and accountability.

NON-CONFIDENTIAL - c) NSPML is progressing towards a 3-year interval for full scale marine surveys, noting that certain areas have just had cable protection augmented through the submarine cable protection initiative. The timing of each su...

AI summary NSPML is planning to conduct marine surveys every three years, but flexibility may be needed if a multi-year cost smoothing mechanism is implemented. This could lead to timing mismatches between cash flows and revenue recovery, creating regulatory assets or liabilities.

- 26 (a) Please explain the basis on which the Placeholder amount was 27 determined, including all assumptions. 1 2 (b) Please provide the underlying referenced in footnote 7 on p.11. 3 (c) The Application draws an analogy between this pro...

AI summary The text outlines several questions and requests related to the determination of a Placeholder amount, the analogy with NSPI's fuel cost treatment, and the risk allocation for Contracted Marine Survey costs. It also addresses the potential for intervenor input and the impact of delayed cost recovery on ratepayers.