Topic:"Rate Rider" in M03154

POLICY 06 Assets that are not both used and useful should be classified in one of the following categories: - a. Not used and not useful; - b. Not used but useful for standby purposes; or - c. Not used but useful for future service. Delete...

AI summary The document discusses the classification of unused assets and the treatment of the Glace Bay plant, which was removed from service. It outlines that the plant will be charged with cost of capital and operating costs will be deferred and amortized over time with UARB approval.

FUEL ADJUSTMENT MECHANISM - 5110 - Regulatory Asset and the customer earns the interest on a Regulatory Liability. The interest accumulates in the FAM Regulatory Asset (Liability) account. - Future income tax is recorded on the FAM Regulat...

AI summary The Fuel Adjustment Mechanism (FAM) involves accruing interest on regulatory assets/liabilities, forecasting fuel costs quarterly, and recognizing revenue when billed or refunded. The UARB approves rates to recover/refund FAM balances, requiring annual regulatory filings with 10 months of actual data and 2 months of forecasts. Differences in forecasts are recovered through the BA.

GENERAL - The Company has an obligation to provide electric service to the consuming public in the most cost effective manner. This obligation is discharged when a customer group receiving special services pays for the cost of those servic...

AI summary The Company must provide electric service in a cost-effective manner, ensuring no customer group subsidizes another. Policies in the Rate and Regulations Manual dictate service extension distances, and any service beyond these must be funded by the customer. Factors such as location, future development, public safety, and return on investment are considered when determining customer capital contributions.

LIABILITIES INCOME TAXES PAYABLE - 8300 01 Includes all income taxes payable to both levels of government. 1 Deleted: August 10, 2006 & lt;sup>1 Please refer to NSPI Accounting Policy and Procedures Manual Section 5900. September 23,2010 M...

AI summary The letter from Grant Thornton LLP confirms that the accounting policies and procedures of Nova Scotia Power Inc. (NSPI) align with US GAAP for regulated entities. The review was conducted on the policies outlined in the NSPI Accounting Policies and Procedures Manual, with a focus on sections related to income taxes payable and other accounting practices.

REVENUE

AI summary This section of the document discusses revenue-related matters within the context of the Nova Scotia regulatory proceeding. It covers key topics such as rate structures, cost recovery mechanisms, and financial considerations relevant to utility operations.

APPLICATION OF ADMINISTRATIVE OVERHEAD (CONTRACTED ASSETS) - 6235

AI summary The document discusses the application of administrative overhead related to contracted assets, likely involving Nova Scotia Power Inc. and the Nova Scotia Utility and Review Board. It includes references to accounting principles and regulatory processes.

POLICY 02 The Company should use generic accounts to summarize its asset activity codes for filings with the UARB.

AI summary The document suggests that the Company should use generic accounts to summarize its asset activity codes for filings with the UARB.

POLICIES - 03 Differences between actual fuel costs and amounts recovered from customers accumulate in the FAM Regulatory Asset (Liability) included in "Other Assets" or "Other Liabilities" on the Balance Sheet and subsequently become an a...

AI summary This section outlines the accounting and regulatory treatment of the Fuel Adjustment Mechanism (FAM) in Nova Scotia. It describes how differences between actual and recovered fuel costs are tracked in a FAM Regulatory Asset or Liability, how interest is applied, and how future income tax impacts are recorded. The FAM balance is adjusted annually and approved by the UARB for rate changes.