Topic:"Rate Rider" in M06733

4.1.2 Balance of Long-Term and Short-Term Considerations The IRP was an important starting point in the development of the 2016-2018 DSM Resource Plan because it provides a longer-term context within which to view short-term decisions requ...

AI summary The Integrated Resource Plan (IRP) provided a long-term context for the 2016-2018 Demand Side Management (DSM) Resource Plan. However, Efficiency Nova Scotia (ENS) notes that the Mid-Level DSM Scenario may lead to short-term rate increases due to a mismatch between DSM investment and rate recovery, particularly under an eight-year amortization term and a legislated cap on DSM amortization.

Assumptions used in ENS's 2016-2018 Rate and Bill Impact Analysis Stakeholder Stakeholder Comment ENSC's Response Inclusion in the model customer participates once (regardless of the scope of participation) in an ENSC program, it appears t...

AI summary The document discusses an assumption made by ENSC in their 2016-2018 Rate and Bill Impact Analysis, where a customer participating once in an ENSC program is counted as a participant indefinitely. This assumption is criticized as flawed, using the example of a Large Industrial customer purchasing a lightbulb being counted as a participant. ENSC responds by suggesting that future analyses should include annual participation rates alongside cumulative rates.

Figure 1. Residential Sector Demand-side Investment vs. All Other Sector Electricity Spending – 2011 to 2018 Year Residential Revenue Requirement (includes Customer Charge) ($ million) [ a ] Demand-side Plan Residential Investment with 50%...

AI summary Figure 1 compares residential sector demand-side investment with all other sector electricity spending from 2011 to 2018. It shows that demand-side investment constitutes a small percentage of residential revenue requirement, with the average cost share per customer remaining relatively stable over time.

3 Affordability of electricity service is of paramount concern to NS Power customers. This 4 is evident through NS Power engagements with our customers and stakeholders, both in 5 regulatory forums such as General Rate Applications and the...

AI summary NS Power emphasizes the affordability of electricity service for customers and highlights the impact of demand-side management (DSM) on rate pressure. The company notes that removing the energy efficiency charge from bills has left no dedicated funding for DSM, and additional DSM spending increases revenue requirements, thereby raising rates. NS Power seeks to balance DSM efforts with cost-effectiveness to avoid economic impacts on the province.

51 EfficiencyOne Evidence, February 27, 2015, Appendix D, page 2. 1 9.0 RESERVE FUND 30 likely these can be addressed through the established regulatory process. 31 1 In summary, NS Power submits that the protections afforded E1 under its...

AI summary NS Power argues that the protections provided to EfficiencyOne (E1) under its franchise and through the implementation of the Energy Efficiency Conservation Agreement (EECA) are sufficient to address potential risks without requiring additional insulation from market challenges. NS Power also recommends that the Board reject E1's application to establish a reserve fund.

2016-2018 DSM Plan (NSUARB M06733) NSPI Responses to Multeese Information Requests 1 Request IR-15: 17 18 (d) Given that the FAM adjustment is calculated with reference to a Base Cost of Fuel 19 expressed in cents per Kwh, would fuel savin...

AI summary The NSPI responded to information requests regarding the FAM adjustment mechanism and DSM plan. It explained that the FAM adjustment is calculated using a base cost of fuel and that the IRP analysis was used to determine DSM levels. NSPI stated that increased DSM spending could lead to higher customer rates and bills in the near-term.

3.5.2.1 Findings [71] The CA summarized his view of the purpose of a DSM program: The basic purpose is to reduce the level of energy required by Nova Scotia in the future, both short and long term. DSM programs are an integral component in...

AI summary The Consumer Advocate emphasizes the importance of DSM programs in reducing energy demand and supporting Nova Scotia's energy strategy. The Board expresses concerns with NSPI's plan, noting reduced residential spending and a disconnect with the IRP, while favoring El's plan for better alignment with the PUA and long-term cost savings.

Lagend: Filing has not historically triggered an automatic regulatory Filing has historically tr riggered a regulatory process process (would be on request or by Decision of the UARB). ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 2015 Q2 Report...

AI summary The document outlines a filing process and its historical relationship with regulatory actions, mentioning quarterly reports, meetings with the DSMAG, and the timing of filings. It also references specific reports and processes.

ns to other jurisdictions, it appears the E1 process looks externally only very occasionally, and even then solely to other high cost jurisdictions (E1 cites Rhode Island, Vermont, and Massachusetts). NS Power submits that had the process...

AI summary NS Power argues that E1's incentive structure contains unreasonably high incentives, citing examples such as LED and variable frequency drive incentives. It recommends reducing E1's proposed incentive budget and adopting a protocol for setting incentives in future DSM plans. E1's process is criticized for not sufficiently referencing external jurisdictions.

10 DSM Included in Rate Impacts 11 12 During the hearing, NS Power vigorously rejected the concept that any monies were "in rates" 13 for DSM on the basis that the DSM rate rider was to be effectively removed from bills effective 14 Januar...

AI summary NS Power claims that DSM investments are not in rates, arguing that removing the DSM rate rider would not increase rates. However, the document highlights that DSM has historically been funded by ratepayers, with investments ranging from 2011 to 2014. The Board Chair challenges this claim, noting that funds were not reduced but merely diverted.

61 Transcript, June 18, 2015, Page 778, line 14 to Page 786, line 3. 1 5 The Chair: So how did the rate reduction occur? The rates haven't changed. 6 7 Mr. Blunden: The non-fuel costs didn't change. The rate rider came off the bill and 8 t...

AI summary The discussion centers on the rate reduction and the role of the DSM rate rider. Nova Scotia Power's non-fuel costs remained unchanged, but the rate rider for DSM was removed, leading to no rate increase despite rising fuel costs. The Chair notes that Nova Scotia Power opposed the legislative change that allowed the funds to be used for fuel costs.

& lt;sup>61 NSPI ACE 2015, Decision, 2015-NSUARB-92 (M06514), pages 22-23, paras 87-89. 1 NS Power has no objection to providing information to assist the Board and stakeholders 2 in future DSM applications in the same manner as informatio...

AI summary NS Power opposes the adoption of Mr. Whalen's response to U-9, arguing that the level of detail requested would unnecessarily complicate the DSM application process. NS Power also requests the Board to approve a Non-Financial Settlement Agreement and reject the 2016-2018 DSM Plan filed by E1, proposing instead a revised plan with specific energy savings and investment targets.

Program NSPI's DSM • $22.0 million Plus 2014 ENSC surplus $8.4 million • $8.4 million still in rates 2008-09 amortization Plus • DSM $1.1 million based evidence absorbed the can be Total of NSPI, (which, on • increase in 2016) rate without...

AI summary The Board considers a potential revenue shortfall of approximately $2 million for NSPI to be manageable, as it believes NSPI can find offsetting savings. If not, the Board would consider deferral evidence before allowing a rate increase, deeming the program affordable.

Lagend: Filing has not historically triggered an automatic regulatory Filing has historically tr riggered a regulatory process process (would be on request or by Decision of the UARB). ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 2015 Q2 Report...

AI summary The text outlines the historical regulatory process triggered by filings, including quarterly reports and meetings with the DSMAG. It notes the timing and content of reports, as well as the frequency of meetings related to these filings.