N-1Report
5 passages
(Multeese) in its SRMC memorandum dated August 27, 2010. The changes were to include the revenue adjustment mechanisms of the Demand Side Management (DSM) Cost Recovery Rider (DCRR) and the Fuel Adjustment Mechanism (FAM) Actual Adjustment...
AI summary The document outlines a series of regulatory actions and recommendations related to the Short Run Marginal Cost (SRMC) test, including the inclusion of revenue adjustment mechanisms like the DSM Cost Recovery Rider (DCRR) and Fuel Adjustment Mechanism (FAM). The NSEB has directed NS Power to review and adjust the SRMC test approach, excluding certain rates and incorporating graphical representations of unit revenues.
2.0 METHODOLOGY The SRMC test involves the following steps: 1. Determine the average annual system marginal cost (over 8760 hours in 2025) at the transmission delivery level. In calculating this marginal cost, the effects of exports and lo...
AI summary The SRMC test methodology calculates system marginal costs, adjusts for distribution losses, compares unit revenues to marginal costs, and estimates inefficient usage via price elasticities. NS Power uses a long-term elasticity factor of -0.15 for certain rate classes, while others rely on California Energy Commission data. The 2026 Load Forecast Report (M12861) is referenced for elasticity inputs.
DATE FILED: May 29, 2026 Page 19 of 26 1 3.4 Riders 2 3 Starting in 2010, the fuel cost portion of the embedded cost rates has been subject to fuel cost 4 adjustments (FAM AA and FAM BA).12 5 6 Beginning in 2010, the DSM Cost Recovery Ride...
AI summary The document discusses the history and application of various rate riders, including the Fuel Adjustment Mechanism (FAM), the Demand Side Management Cost Recovery Rider (DCRR), and the Storm Cost Recovery Rider (SCRR). It also references an interim cost assessment for the Maritime Link and the SRMC test results for 2025 and 2026.
11 4.2 SRMC Test for the Above-the-Line Classes 12 13 The actual 2025 revenues of the ATL rate classes reflect the base cost rates approved for use in 14 2024 and the 2025 DCRR and 2025 Storm Cost Recovery Riders (SCRR). Consistent with th...
AI summary The 2025 revenues for Above-the-Line (ATL) rate classes incorporate 2024 base rates and 2025 DCRR/SCRR adjustments. Modifications to unit revenues for Domestic, Small General, LIIR, and Unmetered classes aim to align with SRMC standards. All ATL classes passed the SRMC test in 2025.
al Average 6.11% 9.11% 16.76 9.60 Small General 5.47% 8.47% 17.52 9.54 83.5% 398.8 -0.15 -0.15 - - Small General (Time of Use) On-Peak (Winter) 5.47% 8.47% 34.62 14.42 140.0% 0.1 -0.15 -0.15 - - Off-Peak (Winter) 5.47% 8.47% 18.96 11.25 68...
AI summary The text presents a table showing various rates and percentages associated with different customer classes and pricing structures, including small general, time of use, and critical peak pricing, along with corresponding figures for 2025 base cost rate revenues and DSM, SCRR, and FAM amounts.
N-2Report - Refiled
5 passages
(Multeese) in its SRMC memorandum dated August 27, 2010. The changes were to include the revenue adjustment mechanisms of the Demand Side Management (DSM) Cost Recovery Rider (DCRR) and the Fuel Adjustment Mechanism (FAM) Actual Adjustment...
AI summary The document outlines a series of actions taken by the Nova Scotia Energy Board regarding the Short Run Marginal Cost (SRMC) test, including the suspension of SRMC comparisons with certain tariffs, the exclusion of specific rates from the SRMC test, and the review of variance between average unit revenues and marginal costs. NS Power has provided ongoing analysis and support for the recommended approach.
than the prospective test year costs. For the above reasons, the annual unit revenues paid by customers Changes in actual unit short-run marginal costs are subject to different dynamics than those of actual unit average cost of service. In...
AI summary The text discusses the relationship between average cost-based rates and actual short-run marginal costs, noting that changes in these costs are influenced by different dynamics. It also highlights exceptions to the GRA framework, such as the FAM AA/BA riders and annually adjusted rates like Generation Replacement and Load Following (GRLF) and Shore Power Rates.
DATE FILED: June 5, 2026 Page 19 of 26 1 3.4 Riders 2 3 Starting in 2010, the fuel cost portion of the embedded cost rates has been subject to fuel cost 4 adjustments (FAM AA and FAM BA).12 5 6 Beginning in 2010, the DSM Cost Recovery Ride...
AI summary The document discusses the history and application of various rate riders, including the Fuel Adjustment Mechanism (FAM) and the Demand Side Management (DSM) Cost Recovery Rider (DCRR), and their impact on composite rates. It also references a Board Order related to refunds for the Maritime Link project and mentions the Electricity Efficiency and Conservation Restructuring (2014) Act.
11 4.2 SRMC Test for the Above-the-Line Classes 12 13 The actual 2025 revenues of the ATL rate classes reflect the base cost rates approved for use in 14 2024 and the 2025 DCRR and 2025 Storm Cost Recovery Riders (SCRR). Consistent with th...
AI summary The 2025 revenues for the above-the-line (ATL) rate classes have been adjusted based on the 2024 base cost rates, 2025 DCRR, and 2025 Storm Cost Recovery Riders (SCRR). Modifications include removing customer charge-related revenues and adding back supply interruptible credit to LIIR revenues. All ATL rate classes pass the SRMC test in 2025.
CHANGES IN DEMAND ELASTICITIES DUE TO RESTRUCTURING As restructuring proceeds, more and more customers will purchase unbundled services. These will include differentiated products such as different levels of service quality and ancillary s...
AI summary As restructuring in the electricity industry progresses, more customers will purchase unbundled services, potentially affecting price elasticity of demand and supply. In the short run, consumer behavior may not change significantly, but long-term restructuring could lead to a more competitive market with informed consumers and greater price sensitivity.
102465Board letter re: Accepts the 2025 SRMC Test to Rates Report, as refiled in Exhibit N-2
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June 23, 2026 [[email protected]](mailto:[email protected]) Michael Willett Senior Director, Regulatory Nova Scotia Power Inc. 1223 Lower Water Street PO Box 910 Halifax NS B3J 3S8 Dear Mr. Willett: M12887 – Nova Scotia P...
AI summary Nova Scotia Power Inc. filed its 2025 Short Run Marginal Cost (SRMC) Test to Rates Report, which was reviewed by Richard J. Melanson. The report explains that the SRMC test checks if average revenue per kWh is greater than or equal to average marginal energy cost, and all rate classes passed both tests. The analysis considered marginal generation costs, excluding fixed costs, and adjustments for future revenue.
ts. NS Power adjusted the 2025 class revenues in the 2026 FAM AA and BA amounts, associated with the cost imbalances incurred as of September 2025. All the tested rate classes passed both SRMC tests. The calculated average annual marginal...
AI summary NS Power adjusted 2025 class revenues in the 2026 FAM AA and BA amounts due to cost imbalances as of September 2025. The average annual marginal cost for 2025 increased by 11.4% to 9.048 cents per kWh, driven by changes in generation, commodity prices, and load growth. NS Power conducted a review of price elasticity for the 2025 SRMC Report, finding notable variations in elasticity for certain rate classes.
comparison produced ratios of the elasticities (TVP pilot elasticities/current elasticity) for the TVP residential classes during the winter months and critical peak periods ranging from 10.7 to 0.1. NS Power committed to monitoring these...
AI summary The document discusses the elasticity ratios from the TVP pilot program for residential classes during winter and critical peak periods, ranging from 10.7 to 0.1. NS Power will continue monitoring and evaluating price elasticity for future reports. The Board accepts the 2025 SRMC Test to Rates Report.