Topic:"Rate Smoothing Adjustment" in M03097

t noted: f-g) This is the first plant of this type NSPI has built and there were no similar designs or plants in North America available for comparison when preparing the budget. [Exhibit N-3, p. 3] [34] Board IR-20e addressed the continge...

AI summary The document discusses the Tufts Cove 6 Waste Heat Recovery Project, noting that it is the first of its kind for NSPI and that no similar designs were available for budgeting. The Board questioned the need for additional funding and the process NSPI would follow if costs increased beyond the approved ATO figure.

d that the changes in engineering design were a concern. He suggested that ratepayers, quite rightly, expect the engineering design and construction of projects to be within NSPl's expertise. He said: ... if there are more unknowns now tha...

AI summary Avon expressed concerns about increased unknowns in engineering design and the risks associated with capital projects, emphasizing that ratepayers should not bear the burden of these uncertainties. NSPI requested an ATO, acknowledging it was an unusual situation and argued that the project remains economically viable despite the challenges.

t noted: f-g) This is the first plant of this type NSPI has built and there were no similar designs or plants in North America available for comparison when preparing the budget. [Exhibit N-3, p. 3] [34] Board IR-20e addressed the continge...

AI summary The document discusses the first plant of its kind built by NSPI, highlighting the lack of comparable designs during budgeting. NSPI acknowledges the use of a contingency amount and explains that the need for general contingency has been mitigated. The Board questions the process for obtaining additional funding if costs increase further.

the Company bears the responsibility of that diligence. Ratepayers should not be exposed to financial risk they cannot control, certainly never to the point where a project no longer has positive NPV. Scrutiny by Board staff, consultants a...

AI summary The Company is responsible for ensuring project diligence and managing financial risks, particularly regarding capital work orders. Ratepayers should not bear the risk of cost overruns unless beyond the Company's control. Concerns were raised about significant cost increases and changes in engineering design for the Tufts Cove 6 Waste Heat Recovery Project.