Topic:"Rate Smoothing Adjustment" in M12451

- net book value to be amortized, NS Power will complete the expense of the unrecovered cost of - meters replaced under the AMI project from 2022-2026. The net book value of these meters will - be fully recovered by 2027. - Hurricane Fiona...

AI summary The text discusses various cost recovery and amortization strategies by NS Power, including the recovery of Hurricane Fiona restoration costs, decommissioning of the Roseway Dam, retirement of the Annapolis Tidal plant, Smart Grid Nova Scotia asset disposition, and the deferral of costs related to the GRA and COSS. It also mentions the creation of a Deferred Decarbonization Asset for future decarbonization efforts.

DEMAND CHARGE per month per kilowatt of maximum demand Effective January 1, 2026 $9.838 Effective January 1, 2027 $10.709 32 cents per kilowatt reduction in demand charge where the transformer was owned by the customer prior to February 1,...

AI summary The document outlines the demand charge rates effective January 1, 2026, and January 1, 2027, at $9.838 and $10.709 per month per kilowatt of maximum demand, respectively. It also mentions a reduction of 32 cents per kilowatt for customers with transformers owned prior to February 1, 1974, or under a specific special condition.

DEMAND CHARGE per month per kilowatt of maximum demand Effective January 1, 2026 $9.838 Effective January 1, 2027 $10.709 32 cents per kilowatt reduction in demand charge where the transformer was owned by the customer prior to February 1,...

AI summary The document outlines the demand charge rates effective January 1, 2026, and January 1, 2027, at $9.838 and $10.709 per month per kilowatt of maximum demand, respectively. It also mentions a 32-cent reduction per kilowatt for customers who own transformers predating February 1, 1974, or under Special Condition (2).

The minimum monthly charge shall be the greater of the demand charge or the amounts in the table below. per month Effective January 1, 2026 $22.16 Effective January 1, 2027 $23.07 AVAILABILITY

AI summary The text establishes the minimum monthly charge as the greater of the demand charge or the specified amounts effective January 1, 2026, and January 1, 2027.

3 OATT in $/kW Tariff Storm Riders in cents per kWh3 Small General, Small General Time-of-Use, Small General Critical Peak Pricing 0.000 General, General Time-of-Use, General Critical Peak Pricing, Multi-unit Residential Building Time-of-U...

AI summary The document lists the Open Access Transmission Tariff (OATT) in dollars per kilowatt and shows that all tariff categories have a Storm Riders rate of 0.000 cents per kWh. It also notes that if a Storm Cost Recovery Rider (SCRR) application is required, the Company will submit it by April 30th to be effective in the following year.

DEMAND CHARGE per month per kilovolt ampere of maximum demand Effective February 2, 2023 $13.796 Effective January 1, 2024 $8.332 Effective January 1, 2026 $10.728 Effective January 1, 2027 $11.277 32 cents per kilovolt ampere reduction in...

AI summary The document presents the demand charge rates effective from February 2023 to January 2027, along with a reduction incentive for customers owning the transformer. The rates are listed in dollars per kilovolt ampere of maximum demand.

per month Effective February 2, 2023 $13.428 Effective January 1, 2024 $13.428 Effective January 1, 2026 $11.330 Effective January 1, 2027 $12.270 32 cents per kilowatt reduction in demand charge where the transformer is owned by the custo...

AI summary The text provides a table showing rate changes effective on specific dates, including a reduction in demand charge based on kilowatt reduction when the transformer is customer-owned.

Nova Scotia Power Unmetered Services Pricing January 2022 1 3.6 Schedule 6 and 7- Summary and Detail of Streetlight Material Costs 2 An analysis of current material costs was conducted using information as of July 2021. This 3 analysis inv...

AI summary The document discusses the analysis of material costs for streetlight installations, including components like lamps, photocells, and wiring, based on data from July 2021. It also covers lamp life analysis, capital cost allowance calculations, and the smoothing of street and crosswalk lighting rates for the period 2022 to 2024.

2.1 Maritime Link Project 4 3 - 5 The Maritime Link project is a source of out-of-province long-term energy imports that will help - 6 position NS Power to meet its air emissions and renewable energy requirements by 2020. The - 7 project w...

AI summary The Maritime Link project provides long-term energy imports to help NS Power meet emissions and renewable energy targets by 2020. It was approved by the UARB in 2013 and includes firm and non-firm energy components. The project's costs are incorporated into the Base Cost of Fuel (BCF) for 2018 and 2019, with amounts smoothed over the Rate Stability Period as required by the Electricity Plan Implementation Act (EPIA).

The table below presents the results of the sub-functionalization and classification analyses of distribution poles and conducto[rs.](#page-24-0)12 Poles Overhead Conductors Underground Conductors Primary - Demand 15% 49% 6% Primary - Cust...

AI summary The table presents the results of sub-functionalization and classification analyses for distribution poles and conductors, categorized by primary and secondary demand and customer usage. The section titled '4. Rate Smoothing' indicates a discussion on rate smoothing mechanisms.

The Company is seeking to implement a 2022-2024 rate stability plan, where both the fuel and nonfuel rate increases are smoothed over the test period. The rate smoothing process determines the rates for each period such that the year-over-...

AI summary The Company is proposing a 2022-2024 rate stability plan to smooth fuel and nonfuel rate increases over the test period, ensuring uniform year-over-year class increases. This approach provides rate stability and predictability for customers. The Nova Scotia Utility and Review Board has previously authorized similar plans, and Concentric confirms its agreement with the methodology and results used by NS Power.

PARTIALLY CONFIDENTIAL 2026-2027 GRA Direct Evidence Appendix 12A(2) Page 1151 of 1218 REDACTED (CONFIDENTIAL INFORMATION REMOVED) COSS SBA DR-4 Attachment 1 Page 6 of 7 The underlying data used to calculate the fee are cost based and the...

AI summary The document outlines the methodology for calculating pole attachment fees by NS Power, based on cost considerations. The fee is determined by allocating indirect and direct costs associated with poles between NS Power and third-party attachers. The allocation is based on the proportion of usable space occupied by non-power attachments, with a final adjustment for the average number of non-power attachments per pole. The fee is deemed reasonable and minimizes cross subsidization.

Revenue-related Attributes: - 1. Effectiveness in yielding the utility's total revenue requirement, under the fair return standard, without socially undesirable expansion of rate base or socially undesirable level of product quality or saf...

AI summary The text outlines three key attributes related to revenue in a regulatory context: effectiveness in achieving the utility's revenue requirement under a fair return standard, stability and predictability of revenue and rates, and historical continuity of rate structures.

Cost-related Attributes: - 4. Static efficiency of the use of rate classes and rate blocks in discouraging wasteful use of the service, while promoting all justified types and amounts of use. - 5. Reflections of all of the present and futu...

AI summary The text outlines key cost-related attributes for rate design, emphasizing efficiency, fairness, and equity in cost allocation. It highlights the need to consider both private and social costs and benefits, avoid discrimination, and promote innovation in response to changing demand and supply patterns.

2. Underlying Principles for COSS The SBA has participated in the COSS stakeholder process hoping to see a process that: - 1. Closely examines cost causation for all the functions, generation, energy production, transmission, distribution,...

AI summary The SBA participated in the COSS stakeholder process to ensure cost causation is thoroughly examined across all functions, align cost causation with allocation factors, and avoid resisting COSS methodology improvements for rate stability, advocating for alignment with Bonbright principles and recognizing the evolving system structure.

• Bundled Service Rates - priced in either c/kWh or both in c/kWh and $/kVa or $/kW - Reflective of test year costs subject to - revenue to cost ratio adjustments - Cost deferrals, caps and multi-year rate smoothing which might be solely a...

AI summary Bundled service rates are priced in c/kWh or both c/kWh and \/kVa or \/kW, reflecting test year costs with adjustments such as revenue to cost ratio, cost deferrals, caps, and multi-year rate smoothing that may apply specifically to bundled service rates.

3. Transmission Classified 100% as Demand - ➢ Purpose: Classify all Transmission as 100% demand instead of using the SLF as peak demands are the primary cost driver of Transmission costs. - ➢ Model Notes: The classification factors that sh...

AI summary This section discusses reclassifying all Transmission costs as 100% demand, removing classification factors that shift costs to energy. This change shifts cost responsibility from classes with high load factors to those with low load factors, with adjustments made to avoid cell definition errors in the model.

Municipal Tariff Rates - Revenue requirement reflects costs of three services areas of generation, transmission and retail - As above-the-line (ATL) & FAM rates they are subject to cost deferrals, rate capping and smoothing, their cost req...

AI summary The document discusses municipal tariff rates, which include revenue requirements covering generation, transmission, and retail services. These rates are subject to cost deferrals, rate capping, smoothing, and adjustments related to the R/C ratio and fuel costs. A two-part tariff structure, consisting of energy and demand charges, is applied for ratcheted non-coincident demands.

2026-2027 GRA Direct Evidence Appendix 12A(4) Page 5 of 18 REDACTED (CONFIDENTIAL INFORMATION REMOVED) - 5- Bundled/Unbundled Review May 9, 2024 energy-classified costs, but fixed monthly customer charges were maintained at the same charge...

AI summary The document discusses the structure of energy-classified costs and fixed monthly customer charges, noting that demand charges are higher under certain rates, leading to lower energy charges. It also compares Capacity Reservation Service rates to SaskPower's Renewable Access Service Rate, suggesting they may be more aligned than standard large commercial and industrial rates.

NS Power Response Although the early retirements of coal units are driven by policy changes requiring NS Power to be off coal by 2030 and 80 percent renewable by 2030, the establishment of the DDA was primarily justified as a rate stabiliz...

AI summary NS Power explains that the Decarbonization Deferral Account (DDA) was established as a rate stabilization tool to avoid significant rate increases due to accelerated coal unit retirements. The company outlines pros and cons of classifying the DDA entirely to energy.

Revenue-related Attributes: - 1. Effectiveness in yielding the utility's total revenue requirement, under the fair return standard, without socially undesirable expansion of rate base or socially undesirable level of product quality or saf...

AI summary The text outlines three key attributes related to revenue in a regulatory context. These include ensuring revenue meets the utility's needs under a fair return standard, maintaining revenue stability and predictability, and ensuring rate stability with historical continuity.

7.5.1 NSP PROPOSED APPROACH - NS Power is required to retire coal-fired assets and associated marine unloading and fuel - delivery facilities by 2030. These assets have not yet reached their end of service life so - NS Power will not recov...

AI summary Nova Scotia Power (NSP) is required to retire coal-fired assets by 2030 and will not recover decommissioning costs by that date. NSP has been approved to use a Decarbonization Deferral Account (DDA) as a rate stabilization tool and proposes to allocate DDA costs using its prior methodology based on the weighted average of its rate base.

Pending Sale of NMGC On August 5, 2024, Emera entered into an agreement to sell its indirect wholly-owned subsidiary NMGC for a total enterprise value of approximately $1.3 billion USD, consisting of cash proceeds and the transfer of debt...

AI summary Emera has agreed to sell NMGC for approximately $1.3 billion USD, with assets and liabilities classified as held for sale in Q3 2024. A non-cash impairment charge of $75 million was recorded in Q2 2025 due to changes in the transaction timing, and depreciation on NMGC assets continued to be recorded through the closing date.

2 Forecasted USD capital spend translated at $1.30 in 2024-2026 o Request included increased revenue requirements of $297M USD in - Reached an unopposed settlement agreement with all intervenors on its active rate case in March 2024 - o Se...

AI summary The document outlines a settlement agreement reached in March 2024 for an active rate case, including a new base rate increase of $30M effective October 1, 2024, set at a 9.375% return on equity and 52% equity, with a weather normalization mechanism becoming a standard tariff. A final regulatory decision is expected in Q3 2024.

Regulatory Arrangements Reached an unopposed settlement agreement which included $30M of new base rates, effective October 1, 2024. Rates set on a 9.375% ROE and 52% equity, unchanged from current. Settlement makes weather normalization me...

AI summary An unopposed settlement agreement was reached, setting new base rates of $30M effective October 1, 2024, with a 9.375% ROE and 52% equity. The weather normalization mechanism is now a standard tariff, with a final regulatory decision expected in Q3 2024.

Regulatory Arrangements Reached an unopposed settlement agreement which included $30M of new base rates, effective October 1, 2024. Rates set on a 9.375% ROE and 52% equity, unchanged from current. Settlement makes weather normalization me...

AI summary An unopposed settlement agreement was reached, setting new base rates of $30M effective October 1, 2024, with a 9.375% ROE and 52% equity. The weather normalization mechanism is now a standard tariff, and final regulatory approval was granted on July 25, 2024.

Regulatory Arrangements Reached an unopposed settlement agreement which included $30M of new base rates, effective October 1, 2024. Rates set on a 9.375% ROE and 52% equity, unchanged from current. Settlement makes weather normalization me...

AI summary An unopposed settlement agreement was reached, setting new base rates of $30M effective October 1, 2024, with rates based on a 9.375% ROE and 52% equity. The agreement includes making the weather normalization mechanism a normal tariff, with final regulatory approval given on July 25, 2024.

Regulatory Arrangements Reached an unopposed settlement agreement which included $30M of new base rates, effective October 1, 2024. Rates set on a 9.375% ROE and 52% equity, unchanged from current. Settlement makes weather normalization me...

AI summary An unopposed settlement agreement was reached, setting new base rates of $30M effective October 1, 2024, with a 9.375% ROE and 52% equity. The weather normalization mechanism was incorporated into a normal tariff, and final regulatory approval was granted on July 25, 2024.

The table below identifies how much of the short-term incentive for 2024 that each NEO elected to allocate to DSUs: Name Percentage of 2024 annual incentive elected to deferred share units (%) Dollar amount of 2024 annual incentive elected...

AI summary The table outlines the allocation of short-term incentives for 2024 by each Named Executive Officer (NEO) to Deferred Share Units (DSUs), including the percentage and dollar amount elected by each individual.

Scott Balfour Resignation All unvested PSUs, RSUs and stock options are forfeited. Terminated for cause All unvested PSUs, RSUs and stock options are forfeited. Terminated without cause Entitled to a lump sum equal to 24 months' compensati...

AI summary This section outlines the terms and conditions for Scott Balfour's resignation, termination, change of control, and retirement, including the handling of unvested PSUs, RSUs, and stock options under different scenarios.

2026-2027 General Rate Application (M12451) NSPI Responses to Bates White Information Requests 1 Request IR-3: 18 (b) For the data for energy in GWh, refer to Energy in kWh in "Data Inputs" tabs of 2026- 19 2027 GRA Attachment 5 PCON and G...

AI summary The document details NSPI's responses to Bates White's information requests related to the 2026-2027 General Rate Application. It refers to data sources for energy and per kWh charges, noting that some rates are based on 2025 approvals and others are proposed for 2026 and 2027. The SCRR Rider is set to 0 for 2026 and 2027 due to pending approvals.

NON-CONFIDENTIAL 1 Response IR-4: 2 3 (a-b) Please refer to NSEB IR-25 part (a) for an explanation of part (i). 4 5 The 2026 Smoothed cell AM348 of $881.9 million described in part (ii) and the 2027 6 Smoothed cell AM348 of $840.7 million...

AI summary The response refers to NSEB IR-25 part (a) for an explanation and outlines the amounts in Smoothed cell AM348 for the years 2026 and 2027.

General Service The General Service rate class model is estimated on a total monthly sales basis where total monthly billed sales is a function of total monthly heating requirements ( XHeat ), cooling requirements ( XCool ), and other use...

AI summary The General Service rate class model estimates monthly sales based on heating, cooling, and other use variables, incorporating factors like GDP, employment, price elasticity, and seasonal adjustments. The model includes binary variables for specific months and events such as the pandemic and Hurricane Fiona, and uses an ARMA process for forecasting.

2026-2027 General Rate Application (M12451) NSPI Responses to GT Information Requests 1 Request IR-85: 11 The increase in forecast materials & supplies from 2025 Forecast to 2026 GRA Forecast is 12 primarily due to forecast inflationary in...

AI summary The document outlines NSPI's responses to various information requests related to the 2026-2027 General Rate Application. Key points include explanations for increases in forecast materials and supplies due to inflation, provision of cost schedules from a lead-lag study, and references to NSEB IR-98 (b) for details on changes in working capital allowance methodology.

ORIGINAL LIFE TABLE, CONT. AVG AGE RET 16.3 001 EXPERIENCE ANALYSIS PLACEMENT BAND 1933-2023 EXPERIENCE BAND 1945-2023 AGE AT EXPOSURES AT RETIREMENTS PCT SURV BEGIN OF BEGINNING OF DURING AGE RETMT SURV BEGIN OF INTERVAL AGE INTERVAL INTE...

AI summary The text provides a continuation of the original life table, including average age at retirement, exposure data, and survival percentages across various age intervals. It includes a table with statistical data on retirements and survival rates. The page number and attachment reference are also noted.

Terms of Settlement It is acknowledged that, subject to Board approvals, rate increases other than those identified herein may occur prior to the effective date of the next general rate application in the form of Board-approved riders. Rec...

AI summary The terms of settlement acknowledge that rate increases may occur before the next general rate application, subject to Board approvals. NS Power will support efforts to smooth or mitigate the impact of rate changes for the 2026-2027 test period, particularly in the 2026 FAM AA/BA proceeding for Large and Medium Industrial Classes.

As at December 31, 2024, future minimum lease payments to be received for each of the next five years and in aggregate thereafter are as follows: millions of dollars 2025 2026 2027 2028 2029 Thereafter Total Minimum lease payments to be re...

AI summary The text presents a table showing future minimum lease payments to be received by the company for each of the next five years and in aggregate thereafter, as of December 31, 2024. The section title 'RELATED PARTY TRANSACTIONS' suggests that the following content will discuss transactions involving related parties.

6 Corrected Values Year 2024 Forecast Load (GWh) GRA Forecast Load, Corrected Figure 4-1 (GWh) Variance (GWh) Year Over Year Change (GRA Forecast, percent) 6 (c) Please reconcile the amounts in reference 1 to the amounts in reference 2. 7...

AI summary The text discusses the reconciliation of various load forecasts and corrected values, including the impact of the Goose Harbour Lake Wind Farm on pricing and revenue. It also includes smoothed and unsmoothed BCF (Base Cost Factor) values for 2026 and 2027, with references to specific tables and sources.

18 $ Million 2026 2027 source Total Fuel and Purchased 918.6 918.4 OE-01 Att 1 and Att 2 Output 1 tab Power OATT MEUs additional Fuel 5.7 6.6 SR-01 Att 5 and Att 6 Data Inputs Cell 140 Cost Total Fuel and Purchased 924.3 925.0 Power Includ...

AI summary The document discusses fuel cost smoothing adjustments by NS Power, where they overcollect fuel costs in 2026 and undercollect in 2027 to achieve uniform rate increases. It also requests clarification on whether non-fuel costs were smoothed and how the FAM balance will be adjusted. NS Power confirms that only base fuel costs were smoothed, not non-fuel costs.

NON-CONFIDENTIAL treated as a one-time reduction in the carrying balance of the FAM in April 2024. As the interest rate on the repayment of $117 million to Invest Nova Scotia is less than NS Power's weighted average cost of capital, the re...

AI summary NS Power is managing a one-time reduction in the FAM balance due to a repayment to Invest Nova Scotia, which results in lower interest recovery from customers. The repayment is collected on behalf of Invest Nova Scotia, and the amounts are tracked outside the FAM. NS Power anticipates filing an AA/BA Application in Q4 2025 and is working with stakeholders to mitigate rate impacts for the 2026/2027 test period.

22 (b) Please see the table below: ($ million) 2020 2021 2022 2023 2024 2020-2024 Average 24 government official about the revocation of the pay play referenced in the Nova Scotia 25 Power Incorporated Regulations. 26 27 (f) Please provide...

AI summary The text discusses the revocation of the Senior Officials Pay Plan and its impact on NS Power's rate calculations. NS Power confirmed the amendment of the pay plan, leading to the revocation of the prior version, and used the amended plan to determine recoverable amounts through rates. There were no communications with government officials regarding this change.

REDACTED 2 3 Reference: Exhibit N-6(ii), Corporate Office of Secretary and General Counsel 4 With respect to the reasons given for the following significant projected increases for 2026 5 over 2024 actuals: 17 appeal heard. The outcome of...

AI summary The text discusses the significant projected increases in costs for 2026 over 2024 actuals, referencing the General Rate Adjustment (GRA) appeal. The litigation's outcome depends on discovery motions, and the timing and resolution of the matter are uncertain. NS Power cannot provide an estimate of future costs at this time due to external factors.

Proposed DCRR Framework If approved, the proposed DCRR framework would be in effect during the 2027-2031 DSM Term. For example, the 2028 DCRR would include: (b) The proposed DCRR framework adds a BA 2 component to the BA to reconcile, by r...

AI summary The proposed DCRR framework would be effective during the 2027-2031 DSM Term. It introduces a BA2 component to balance differences between approved and actual DSM expenditures by rate class. This aims to reduce rate volatility by spreading variances over a four-year recovery period, starting in year two of the following Term.

ORIGINAL LIFE TABLE, CONT. AVG AGE RET 29.9 PLACEMENT BAND 1965-2023 003 EXPERIENCE ANALYSIS EXPERIENCE BAND 2014-2023 AGE AT EXPOSURES AT RETIREMENTS PCT SURV BEGIN OF BEGINNING OF DURING AGE RETMT SURV BEGIN OF INTERVAL AGE INTERVAL INTE...

AI summary The text provides an original life table continuation with data on average age at retirement, exposure numbers, retirements, and survival percentages across various age intervals from 1965 to 2023. It includes statistical analysis of experience bands and survival rates, which may be relevant for actuarial or demographic studies.

NON-CONFIDENTIAL 1 Request IR-25: 16 costs are also largely not within the control of NS Power as it must incur costs in response to issues 17 and evidence raised and the costs themselves are not just those of NS Power, but include those o...

AI summary The document discusses the challenges NS Power faces in forecasting costs related to the General Rate Application (GRA), highlighting that these costs are not fully within their control and involve other entities such as the Consumer Advocate and the Board. It also references the unpredictability of expenses for large hearings as noted in the Board's Annual Accountability Report.

2 4.1 Scope - 3 Nova Scotia Power has a number of regulatory amortizations which have a direct impact on the overall revenue - 4 requirement for each year. Regulatory amortization is the process in which Nova Scotia Power recovers certain...

AI summary Nova Scotia Power uses regulatory amortization to recover costs over time, stabilizing electricity rates and preventing sudden rate increases. This includes both previously approved deferrals and new proposals from the GRA.

For this reason, no depreciation estimate will ever be perfect, including any estimate derived using the ELG or ALG procedures. The test that the Board should employ is whether the result provides for a reasonable estimate of the recovery...

AI summary The text discusses the limitations of depreciation estimation methods, specifically the ELG and ALG procedures, and argues that neither method can perfectly predict asset service life. It highlights concerns about intergenerational equity and volatility in depreciation expenses, particularly with NS Power's future investment growth. Frequent updates to depreciation studies are recommended as best practice.

10 Q. On what issues is Bates White offering an opinion? - 11 A. The Application seeks increases in both non-fuel cost-related rates and fuel cost-related - rates. 3 Bates White was engaged to review aspects of the fuel cost-related rates...

AI summary Bates White is offering an opinion on fuel cost-related rates in NSPI's General Rate Application, including BCF, AA and BA adjustments, load forecasts, and commodity price forecasts. They are not reviewing non-fuel cost-related rates. The Reply Evidence is authored by Vincent Musco and Karen Morgan.

VI. Assessment of NSPI's AA and BA Adjustments - Q. What is the purpose of this section of your Evidence? - A. In this section, we review NSPI's presentation and calculation of the overall rate increases for fuel and purchased power costs...

AI summary This section discusses NSPI's AA and BA adjustments for 2026 and 2027, noting that AA amounts are zero, while BA amounts are $17.0 million and $16.7 million respectively. These figures are subject to revision and will be finalized in an upcoming filing. The Settlement Agreement supports efforts to smooth rate changes, and NSPI plans to file AA/BA calculations in Q4 2025.

C. CONDUCT OF THE PROCEEDING On October 1, 2024, UI submitted formal notice of its intent to file an application to amend its existing rate schedule. On November 12, 2024, the Company filed the 1 The 9.10% ROE reflects a 47 basis points re...

AI summary The document outlines the procedural steps taken by the Authority in handling UI's application to amend its rate schedules, including hearings, audits, and the submission of motions and briefs. Key events include the filing of the application, revenue audits, public comment hearings, and the issuance of a proposed final decision.

base rates is appropriate because the project is used and useful and that excluding the costs from rate base would create "intergenerational inequities." UI Reply Brief, pp. 35–36; Late Filed Ex. 16. The Authority finds OCC's arguments per...

AI summary The Authority supports the Office of the Chief Counsel's position that the costs of Project No. PRJ-003394 should be recovered through the Rate Adjustment Mechanism (RAM), as required by prior orders and statutory language. The Company's argument that the RAM does not accommodate capital cost recovery is rejected, and UI is directed to seek recovery through the RAM proceeding with a full prudence review.

ority's adjustment is $23,556,152. These two figures differ because OCC refers to gross plant as shown on Ex. UI-CIP-4, whereas the Authority refers to net plant as calculated within the Plant Model. Further, UI concedes that it does not f...

AI summary The document discusses discrepancies in the calculation of pole attachment make-ready capital costs, highlighting the disparity between contributions from pole attachers and ratepayers. It argues that the company has not acted prudently in managing these costs, with ratepayers shouldering the majority of the burden.

ii. Collections Lag The Collections Lag is a component of the Company's proposed revenue lag computation. Interrog. Resp. RSR-266, Att. 1. In the instant proceeding, the Company proposes the same collections lag of 44.27 days that it used...

AI summary The Company proposes a collections lag of 44.27 days based on 2021 data, but the Authority finds this reliance on outdated data unpersuasive. Using 2023 data, the collections lag is 41.86 days, leading to a reduction in CWC by $1,769,819.

val of specific cost recovery is inconsistent with core principles of utility ratemaking. Further, the Company's decision to defer further phase out efforts pending resolution of cost recovery in this 55 The argument that UI cannot stop re...

AI summary The document discusses the inconsistency of deferring the phase-out of the Water Heater Rental Program with utility ratemaking principles. It highlights UI's argument that it cannot stop replacing failing water heaters until tariff obligations are relieved, which may increase costs for ratepayers. The Authority has emphasized the need for an expeditious wind down of the program to avoid stranded assets.

2. Inflation Adjustment The Company proposes to escalate a number of Test Year expenses using an inflation adjustment factor of 8.15%, resulting in a pro forma expense of $4,505,562. Late Filed Ex. 1, Att. 2, Sch. WP C-3.0, p. 2; Sch. WP C...

AI summary The Company proposes using an 8.15% inflation adjustment factor to escalate Test Year expenses, but the Authority rejects this approach as imprecise and not sufficiently measurable. The Authority emphasizes that specific cost escalations must be justified with evidence and that generic inflation adjustments are not acceptable unless supported by reasonable and measurable data. However, in some cases, the Authority allows limited adjustments despite the Company's lack of supporting evidence.

ppears to have derived its $1,892,932 by applying the distribution allocator to the $2,814,514 projected Rate Year expenses reflected in an earlier filing in the proceeding. Interrog. Resp. RRU-377. benefits could be realized through succe...

AI summary The Authority has determined that the deferral mechanism for the Fee Free Program is no longer necessary, as the program has been in place for over a year and a half, providing enough historical data to set a known and measurable adjustment for the program in the Rate Year.

a. Operational Smart Grids The Company proposes $2,608,107 in OSG expenses for the Rate Year, which is the Company's $1,774,562 Test Year expense plus a $833,545 Rate Year adjustment. Late Filed Ex. 1, Att. 2 Supp., Sch. C-3.09 WP. The Tes...

AI summary The Company requested $2,608,107 in OSG expenses for the Rate Year, including $1,774,562 from the Test Year and an $833,545 adjustment. The Authority found that only $1,774,562 from the Test Year and $688,961 in new Rate Year expenses were reasonable, approving a total of $2,463,523 for recovery.

ii. Interim Period FTEs The Authority finds that the Company's proposed 141 Interim Period FTEs are reasonable. The Company explained that its projection of 69 Interim Period FTEs in its rate application was an accurate estimate at the tim...

AI summary The Authority deems the Company's proposed 141 Interim Period FTEs reasonable but expresses concern about employee transfers between UI and service companies, fearing ratepayers may be compensating UI for temporary transfers. The Company is directed to submit regular compliance filings detailing employee transfers until the next rate amendment.

b. Massachusetts Formula Allocation In the present case, the Company allocated certain costs to its combined transmission and distribution business segments by computing and applying a Massachusetts Formula allocator of 61.78%. Late Filed...

AI summary The Company used a Massachusetts Formula allocator of 61.78% and 63.93% for cost allocation to its transmission and distribution segments, but the Authority adjusted the 63.93% to 62.73% using Test Year data and corrected the methodology to exclude rate adjustment mechanism profit centers. This adjustment led to a disallowance of $643,415, and the Company will use the revised method for future rate calculations.

uthority finds it is necessary and appropriate to connect some portion of the recovery of UI, AMC, and ASC executive compensation from UI ratepayers to achievement of certain customer-focused metrics. The Authority will use the performance...

AI summary The Authority links the recovery of executive compensation from UI, AMC, and ASC to customer-focused performance metrics, aiming to increase accountability. Metrics are used to measure UI's performance, with recovery depending on meeting or exceeding these metrics. The Historical Period is defined as the average from 2021 to 2025, or the Test Year if data is unreliable.

e. Isaias Deferral and Customer Credit The Company proposes that it recover a $127,918 regulatory asset in connection with a penalty imposed on the Company following Tropical Storm Isaias that was not returned to customers as of the Compan...

AI summary The Company seeks to recover a $127,918 regulatory asset related to a penalty from Tropical Storm Isaias not returned to customers in its 2022 rate case. The Authority allows amortization of $121,308 over three years, with a $40,436 annual expense, and requires the Company to refund an additional $33,909 by October 31, 2025.

A. LEGAL STANDARD The Authority is statutorily charged with regulating the rates of Connecticut's public service companies and UI is a public service company within the meaning of General Statutes § 16-1. General Statutes § 16-19. Conseque...

AI summary This section outlines the legal framework for rate regulation in Connecticut, emphasizing the Authority's duty to ensure rates are just, reasonable, and adequate while promoting revenue stability and equitable distribution. The Authority uses principles such as cost causation, rate class equalization, and gradualism to avoid sudden rate shocks and undue burdens on low-income customers.

Late Filed Ex. 71, Att. 4. The use of a load-carrying capacity is consistent with the NARUC Manual cited by the Company and CIEC, which states that "[w]hen using this distribution method, the analyst must be aware that the minimum-size dis...

AI summary The document discusses the use of load-carrying capacity in cost allocation, referencing the NARUC Manual and ACOSS models. The Authority directs the Company to adopt modified ACOSS models and refine load-carrying capacity adjustments with stakeholder input, including recommendations from UI and OCC.

ing to the percentage of substations and feeders peaking in each season and time period. Id., pp. 39–43. The Authority identified three anomalies [120](#page-210-0) in the Company's rate design model: - (1) The Company explained that prima...

AI summary The Authority identified three anomalies in the Company's rate design model for Time-of-Use (TOU) rates, including improper allocation of demand costs and inconsistent use of cost-based rates. The Company proposed to recover certain costs entirely in the on-peak period for near-term TOU rates.

1. Revenue Decoupling Mechanism The Authority approves the revenue elements included herein to be included as "other revenues" for purposes of the Company's Revenue Decoupling Mechanism (RDM) calculation. Generally, an EDC may only charge...

AI summary The Authority approves the inclusion of 'other revenues' in the Company's Revenue Decoupling Mechanism (RDM) calculation. These revenues include late payment fees, reconnect service fees, and others. The Authority defines 'allowed distribution revenues' and 'actual distribution revenues' and ensures that the Company's RDM calculation aligns with these definitions. The RDM is used to adjust rates annually based on over- or under-recovery of distribution revenues.

- 3. Effective November 1, 2025, and until directed otherwise in a subsequent Authority order, the Company shall calculate its Massachusetts Formula allocator when proposing base distribution rates such that it does not include SBC, GSC, R...

AI summary The document outlines several compliance and reporting requirements for the Company, including adjustments to the Massachusetts Formula allocator, implementation of a termination notice banner, rectification of customer service issues, submission of performance metrics data, and reporting on executive compensation tied to rate adjustments.

EDUCATION June 2014 Master of Arts, Economics, Carleton University June Bachelor of Arts, Economics and Financial Management, 2012 Wilfrid Laurier University REGULATORY/LEGAL PROCEEDINGS Before the Ontario Energy Board 2025 • Burlington Hy...

AI summary The document outlines the educational background of Andrew Blair and his involvement in various regulatory/legal proceedings before the Ontario Energy Board, including cost of service applications and rate design support for multiple utility companies.

UTILITY RATE PROCEEDINGS IN WHICH TESTIMONY HAS BEEN PRESENTED BY JACOB POUS ALASKA Southern Union Gas Company 2738, 2958, 3002, 3018, 3019 Cons. Cost of Service, Rate Design, Depreciation Southern Union Gas Company 6968 Interim & Cons. Af...

AI summary Jacob Pous has provided testimony in multiple utility rate proceedings involving Southern Union Gas Company, covering topics such as cost of service, rate design, depreciation, affiliate transactions, and rate base. These proceedings include various consolidated and interim cases with different focus areas.

Q PLEASE EXPLAIN HOW RATEPAYERS WILL BE IMPACTED IF THE ELG PROCEDURE WERE ADOPTED AND DEPRECIATION RATES WERE NOT CHANGED OVER THE LIFE OF AN ASSET. A As previously shown, the ELG procedure requires that the depreciation rate change over...

AI summary The adoption of the ELG procedure without changing depreciation rates would lead to accelerated book depreciation, causing current ratepayers to overpay for depreciation expenses that should be borne by future ratepayers, creating intergenerational inequities.

Electricity Distributors and Transmitters The 2009 Report affirmed the deemed equity ratio of 40% equity / 60% debt for electricity distributors. Since the 2009 Report, the OEB has extended the deemed equity ratio of 40% to electricity tra...

AI summary The 2009 Report established a 40% equity / 60% debt deemed capital structure for electricity distributors, which the OEB has extended to transmitters. The OEB maintains this approach as it provides a standardized framework for rate-setting, balances fairness, and safeguards ratepayers from financial distortions.

Findings The cost of capital parameters of ROE, DSTDR, and DLTDR are applicable to utilities rebasing rates for 2025 (if cost of capital is in scope). For other utilities, the new cost of capital parameters will be implemented on a one-tim...

AI summary The OEB determines that the current 2009 Cost of Capital Framework meets FRS, allowing the new framework to be implemented alongside other cost-of-service reviews. Variance accounts for 2025 rate adjustments will be addressed in IRM and Custom IR applications. Prescribed interest rates for DVAs and CWIP are effective April 1, 2025, and will be updated quarterly.

THE ONTARIO ENERGY BOARD ORDERS THAT: - 1. The following cost of capital parameters are approved on a final basis, effective January 1, 2025. Please refer to the Decision for details regarding implementation and applicability. - a. The Dee...

AI summary The Ontario Energy Board has finalized cost of capital parameters, including a Deemed Return on Equity of 9.00%, Deemed Long-Term Debt Rate of 4.51%, and Deemed Short-Term Debt Rate of 3.91%, effective January 1, 2025. Prescribed interest rates for deferral and variance accounts and construction work in progress are also set, with annual and quarterly updates required. Utilities must report on new long-term debt exceeding $50 million.

reen-mountain-power-multi-year-regulation-plan.pdf.](https://puc.vermont.gov/sites/psbnew/files/doc_library/green-mountain-power-multi-year-regulation-plan.pdf) - Gwin, Carl R. 2009. "Asymmetric Price Adjustment: Cross-Industry Evidence."...

AI summary The text lists several academic references related to energy regulation and pricing mechanisms, including studies on asymmetric price adjustment, bill smoothing, and the impact of transmission lines on corporate profits. These references are cited in a document related to a multi-year regulation plan.

14.1.3 Initial Recommendations In order to assess the implications of adding or deleting a rate class at the rate class level, it is recommended that distributors be required to file a supplemental cost of service study with the new rate c...

AI summary The initial recommendations suggest that distributors file a supplemental cost of service study when modifying rate classes and capture rate and bill impacts at both the rate class and customer levels using typical load profiles, with guidelines to be discussed during the consultation process.

the attached Directions. Any distributor seeking to depart from the common load data collection procedures will be required to provide a full explanation of the circumstances justifying the request. Distributors planning to apply for a new...

AI summary The document outlines directions for load data collection procedures, requiring distributors to justify any deviations from standard procedures. It also notes that financial data considerations should be addressed when planning new rate classes and during cost allocation studies.

5.1 Background As an initial step in a cost allocation study, a distributor should identify any significant distribution facilities that are dedicated exclusively to only one customer rate classification. The costs of such a facility, and...

AI summary The document discusses the principles and criteria for direct allocation of distribution costs to specific customer rate classifications. It emphasizes that direct allocation should only apply when facilities are exclusively used by a single classification and addresses scenarios involving redundancy and backup services. The Board prefers the 100% use test for direct allocation and rejects the use of a 'predominant' (90%) test due to complexity in cost allocation.

11.5.3.1 Background From a distribution system perspective, LDG service includes a commitment by the distributor to have sufficient conductor and transformation capacity available to meet the load displacement customer's total load require...

AI summary The document outlines the background and methodology for determining distribution rates for LDG (Load Displacement Generation) customers. It emphasizes using cost-based rate information from similar customers and highlights the need to consider additional savings or costs through separate charges or credits. Stakeholders are advised to provide best-efforts estimates and note concerns about data reliability.

REVENUE TO EXPENSE COMPARISON (1) TOTAL (2) TOTAL (3) UNIT COST (4) TOTAL (5) (6) (7) (310) INTEREST CHARGES 141,804 Interest & Other Exp 144,090 23,800.0 0.000 0.00 Corporate Income Tax -17,933 8,097 0.00 0.000 (311) PREFERRED DIVIDENDS (...

AI summary The document presents a revenue to expense comparison, highlighting various financial categories such as interest charges, corporate taxes, retained earnings, and allocations for customer solutions. It includes percentages and monetary figures related to different cost categories and adjustments.

DETAILED LISTING OF C.O.S.S. INPUT INFORMATION FOR THE YEAR ENDING DECEMBER 31, 2027 (227) POWER PRODUCTION - FUEL (228) POWER PRODUCTION - OPERATING & MAINT. 366,094.3 (313) RETAINED EARNINGS 212,356 0.000 Net 154,075 Settlement Adj. 0 (3...

AI summary The document presents a detailed listing of C.O.S.S. input information for the year ending December 31, 2027, covering various financial and operational categories such as power production, retained earnings, interruption costs, and customer solutions allocators. It outlines percentages and figures related to different cost allocations and adjustments.

EKs^Kd/WKtZ/E͘Ͳ,zZKWZKhd/KE ^/dKDD/^^/KE/E'^d/Dd^hDDZz&KZ^^dZd/ZDEdK>/'d/KE^;ZKͿ^dhz;LJ^LJƐƚĞŵͿ - x ŝƐƉŽƐĂůŽĨĐŽŶƐƚƌƵĐƚŝŽŶĂŶĚĚĞŵŽůŝƚŝŽŶĚĞďƌŝƐʹƚƌƵĐŬƐĞůĞĐƚĞĚŵĂƚĞƌŝĂůƐ ƚŽĂĚĞƐŝŐŶĂƚĞĚĐŽŶƐƚƌƵĐƚŝŽŶ ĚĞďƌŝƐĚŝƐƉŽƐĂůĨĂĐŝůŝƚLJ͕ǁŚŝůĞƐƵŝƚĂďůĞŽƚŚĞƌŵĂƚĞƌŝĂ...

AI summary The document discusses the need for regulatory oversight in energy management, emphasizing the importance of accurate cost recovery mechanisms and the challenges associated with aligning base rates with actual costs. It highlights the role of energy efficiency programs and the need for stakeholder engagement in the regulatory process.

NON-CONFIDENTIAL 1 Undertaking U-5: 2 - 3 To take the cost changes from NSEB IR-128 and go through the stepwise exercise to - 4 produce new RC ratios and new resulting rates for the customer classes. 5 6 Response U-5: 7 - 8 NS Power has co...

AI summary NS Power is proposing to replace the Minimum System Method with the Basic Customer Method for classifying distribution feeder costs, resulting in changes to rate classes and smoothed rate increases as shown in Attachment 4, Figure 14-1.

15 Proposed COSS Methodology Modified COSS Methodology as per U-5 Variance Smoothed Smoothed Smoothed Customer Class 2026 2027 2026 2027 2026 2027 Domestic 3.8 4.1 2.2 2.8 (1.6) (1.3) Small General 3.6 3.9 1.7 2.4 (1.9) (1.4) General (0.2)...

AI summary The table compares the proposed and modified COSS Methodology for different customer classes in 2026 and 2027, showing variances between the two approaches. The total variance for both years is zero, indicating that the modifications resulted in no overall change in the total COSS Methodology.

REDACTED 1 Undertaking U-6: 2 - 3 To take cost changes from NSEB IR-128 and NSP credit each customer class with 1.5 - 4 kilowatts per customer, applying the credit to the NCP demands used for determining the - 5 Minimum System demand alloc...

AI summary The document discusses an undertaking (U-6) involving the application of a 1.5 kW per customer credit to each rate class' NCP demand for determining minimum system demand allocators. NS Power conducted a rate analysis incorporating recalibration of below-the-line rate costs to evaluate the impact of this credit on proposed rate increases.

NON-CONFIDENTIAL 1 Undertaking U-15: 2 3 To provide an order of magnitude impact of the AA/BA FAM riders and DSM rider on each 4 individual customer class rate impact as a comparison to Figure 2-1. 5 6 Response U-15: 7 8 Please refer to th...

AI summary The response to Undertaking U-15 provides an overview of the impact of the AA/BA FAM riders and DSM rider on customer class rates in 2026, referencing specific figures and attachments. It also notes that the settlement agreement includes smoothing or mitigating the impacts of the AA/BA riders, which may lower increases for some classes in 2026 by deferring recovery to 2027.

1 3.10.2 DSM Cost Recovery Rider (DCRR) - 2 On March 31, 2026, the Board issued its Order approving the 2026 DCRR (M12521) effective - 3 January 1, 2026. The DCRR Tariff has been updated to reflect the 2026 rates and the revised - 4 method...

AI summary The Nova Scotia Energy Board approved the 2026 DCRR effective January 1, 2026, with updates to the tariff reflecting revised cost-of-service study methods. NS Power plans to implement both DCRR and GRA rate changes simultaneously to avoid multiple rate increases. True-up adjustments will be addressed in a future DCRR Application.

Significant FAM Changes Where, in the absence of a General Rate Application, an increase for any customer class of more than 10 percent compared with the rate payable in the prior year is caused by the application of the FAM procedures, th...

AI summary The document outlines measures the Board may take to assist customers if the Fuel Adjustment Mechanism (FAM) causes a rate increase of more than 10% for any customer class. The Board will monitor the FAM and may defer part of the increase if it deems the increase unacceptable or not in the public interest.

Significant FAM Changes Where, in the absence of a General Rate Application, an increase for any customer class of more than 10 percent compared with the rate payable in the prior year is caused by the application of the FAM procedures, th...

AI summary The Board will closely monitor the Fuel Adjustment Mechanism (FAM) and may intervene if it causes excessive rate increases for customer classes, considering measures to assist customers, including deferring part of the increase for future collection.

cents per kilowatt-hour Interim Energy Charge During a Critical Peak Event Non-critical Peak Hours Effective upon the date of the Board's Order n/a 18.324 ENERGY CHARGE cents per kilowatt-hour During a Critical Non-critical Peak Event Peak...

AI summary The document outlines energy charge rates during critical peak events and non-critical peak hours, with specific rates effective on different dates starting from January 1, 2024, through January 1, 2027. A critical peak event is defined as a four-hour period between 6:00 AM and 11:00 PM during the winter period.

The minimum monthly charge shall be as follows: per month Effective February 2, 2023 $19.17 Effective January 1, 2024 $19.17 Effective upon the date of the Board's Order $20.08 Effective January 1, 2027 $21.04 AVAILABILITY

AI summary The document outlines the minimum monthly charge for a service, with different rates effective on specific dates, including a rate that becomes effective upon the Board's Order.

INTERIM ENERGY CHARGE Effective December 1, 2025, in accordance with the Nova Scotia Energy Board (NSEB, Board) Decision[1](#page-137-0) on NS Power's Application for 2025/26 Time-varying Pricing (TVP) Tariffs (M12499): - The Interim Energ...

AI summary The Interim Energy Charge, effective December 1, 2025, applies during both winter and non-winter periods and is set to standard offer rates while system functionality is unavailable. Critical Peak Events will not be scheduled during this period. NS Power must notify customers once functionality is restored, with specific grace periods depending on the restoration date.

MAXIMUM PER KWH CHARGE/MINIMUM BILL The maximum charge per kWh, applying to that portion of the bill which is not concerned with determination of the cost of the Critical Peak Events, will be that for a billing load factor of 10% except th...

AI summary The text outlines the maximum charge per kWh and the minimum monthly bill, specifying that the maximum charge applies to portions of the bill not related to Critical Peak Events, with a billing load factor of 10% and a minimum monthly bill threshold.

DEMAND CHARGE As follows, per month per kilovolt ampere of the higher of: - (a) maximum actual demand of the current month; or - (b) the maximum actual demand of the previous December, January, or February occurring in the previous eleven...

AI summary The demand charge is calculated monthly based on the higher of the current month's maximum actual demand or the highest demand from the previous eleven months, excluding peak demands during the first two hours after outage restoration. Customers are expected to manage demand peaks following outages.

1 Balance Adjustment for 2023 will come into effect on January 1, 2025 and will be based on the revenue collected between February 2, 2023, and December 31, 2023. The revenue will be compared to the DSM costs incurred in that same period....

AI summary The Balance Adjustment (BA) for 2023 will be effective from January 1, 2025, and is based on revenue collected between February 2, 2023, and December 31, 2023, compared to DSM costs incurred during the same period. The Approved DSM Term refers to the full DSM Plan period in effect, such as 2023-2026 or 2027-2031.

OINCIDENT LINE COIN. PEAK COINCIDENT SALES LOSSES REQUIREMENT DMD. (KW) FACTOR DMD. (KW) LOSSES DMD. (KW) L/D FACTOR ( 1) DOMESTIC 431,585 8.60% 468,686 1,111,549 82.8% 920,296 11.77% 1,028,601 63.29% ( 2) SMALL GENERAL 28,882 8.54% 31,350...

AI summary The document presents a detailed breakdown of electricity sales, losses, and demand factors across various customer categories in Nova Scotia, including domestic, industrial, and municipal sectors, along with specific programs such as PHP and ELIADC.

NON-CONFIDENTIAL 1 Request IR-1: 2 3 Section 4.6 of the Board's decision in this matter expressed concern about implementing the 4 rate increase through prorating in the context of the potential for prorating over a period 5 that was longe...

AI summary The document discusses concerns raised about NS Power's meter reading and billing processes following a cybersecurity breach, specifically regarding prorating a rate increase. NS Power responds that its processes have returned to normal, citing restored data connections and system integrations.

NON-CONFIDENTIAL It is important to bear in mind that relative to the costs that would be incurred and ultimately recovered from customers to change the Company's proration methodology, the likely effect of proration on customers is small....

AI summary The document discusses the impact of proration methodology on customer bills when rate changes occur mid-billing period, using an example of a 900 kWh customer. It notes the small effect of proration and acknowledges that fuel and DSM costs are trued up later, reducing future recovery. The Company is exploring alternatives to prorating bills as part of a new billing system.

3.1 Should the Settlement Agreement be Approved? [36] On September 2, 2025, NS Power wrote to the Board to advise that it would be filing a general rate application for the 2026 and 2027 test years. It stated that it had reached a consensu...

AI summary NS Power advised the Board on September 2, 2025, of its intent to file a general rate application for 2026 and 2027, supported by customer representatives. However, the application was not filed until September 18, 2025, and the settlement agreement was only submitted on November 5, 2025, following information requests from Board staff.

3.2.1 Base Cost of Fuel [46] Fuel and purchased power costs comprise the largest portion of NS Power's revenue requirement. During the two-year test period, NS Power has forecast those costs to be $918.6 million for 2026 and $918.4 million...

AI summary NS Power's application for new Base Cost of Fuel (BCF) amounts for 2026 and 2027 is under review. The proposed BCF adjustments aim to smooth rate increases for each rate class during the 2026-2027 GRA period, resulting in over-collection in 2026 and under-collection in 2027. Board Counsel engaged Bates White to review the application, and NS Power applied for an extension of the AA/BA riders on an interim basis.

nt agreement itself, there is nothing in the current evidentiary record before the Board to provide support to exclude inflation costs beyond 2024 from generation Plant decommissioning cost estimates. [176] The Board also has other concern...

AI summary The document highlights concerns about the settlement agreement adjustments to net salvage rates for NS Power's production Plant assets, noting a significant reserve deficiency. This deficiency implies that depreciation rates have been too low, leading to potential future rate increases and intergenerational inequity.

was recently mentioned in Deirdre Sheehan et al, The Push for Electrification and a Net-Zero Grid: Developments, Reactions, and Implications, 2024 62-2 Alberta Law Review 424, 2024 CanLII Docs 3091: Consideration of the retirement of coal-...

AI summary NS Power is retiring coal-fired assets by 2030 due to legal decarbonization obligations, which may result in undepreciated costs of up to $757 million. To manage rate impacts, NS Power proposed transferring these costs to a Decarbonization Deferral Account (DDA), which was approved by the Nova Scotia Utility and Review Board (NSURB) with modifications to ensure rate stability and affordability.

[581] The parties to the settlement agreement included the following terms relating to cost-of-service methodology used to determine rates for 2026 and 2027: Cost of Service ("COS") a) The COS as set out in the Draft GRA will be included i...

AI summary The settlement agreement outlines terms related to the cost-of-service methodology for determining rates in 2026 and 2027. It specifies that the Draft GRA will be included in the 2026-2027 GRA and subject to future proceedings, including data collection on PHP's use of the High Voltage transmission system and apportionment of assessment costs from the Maritime Link.

y record. This record should clearly demonstrate to the Board that issues have been fully and appropriately addressed and satisfy the public that the application has been fully and carefully reviewed. As usual, Board staff and Board Counse...

AI summary The Board is preparing to review a general rate application by NS Power, emphasizing the need for a thorough review process. The Board will engage consultants to file evidence, and the process cannot be shortened even if NS Power has reached an agreement with customer representatives. The Board has opened a matter but faces challenges in initiating processes before the application is filed.

Transcript, pages 976-979. 8 N-27, NSPI (NSEB) RIR-1, Attachment 1, Appendix B, page 15/21. 9 Transcript, page 975. Another key term of the Consensus Agreement relates to depreciation. As agreed, NSPI reduced its proposed depreciation amou...

AI summary The Consensus Agreement includes a depreciation adjustment based on evidence-based positions and a provision for rate smoothing for the Industrial Group ahead of the 2026 FAM AA/BA proceeding. The depreciation reduction was made on a principled basis, not as a compromise. The agreement acknowledges the forecasted impacts of the 2026 FAM AA/BA filing.

not, and should not, cover any and all variables relating to PHP's service as an ATL customer. [ 33 ](#page-8-1) Matter M12661, N-1, ELID Application, pages 14-15. The anticipated deferral amount for 2026 is significant. Response to Undert...

AI summary The PHP Tariff Application is under scrutiny for differing from settled terms, particularly concerning the deferral of costs. The anticipated deferral for 2026 is significant, and there is confusion over the scope of the deferral. NSPI's position on the matter has shifted during the hearing, raising concerns about transparency and consistency.

enue and cost impacts, the need for a deferral mechanism is both evident and prudent.[63](#page-33-6) As noted by Bates White in its evidence, given the DATE FILED: January 30, 2026 Page 34 of 55 Transcript, January 7, 2026, pages 66-72 (P...

AI summary The text discusses concerns regarding the potential impact on the GRA if PHP does not take service under an above-the-line tariff in 2027, with NS Power explaining that PHP would take service either below-the-line or above-the-line. It also highlights the forecast PHP Deferral amount and the importance of a deferral mechanism due to uncertainty and potential revenue and cost impacts.

11 NS Power's response: - 12 The GRA process began with the fulsome Cost-of-Service-Study (COSS) process initiated in - 13 December of 2023 and this aspect of the GRA continues today with these submissions. NS Power - 14 also engaged subst...

AI summary NS Power defended its GRA process, emphasizing that it was thorough and involved extensive consultation with customer representatives, leading to significant customer savings. It refuted claims that the process was rushed or led to higher costs, citing a Settlement Agreement and savings of approximately $60 million. The Liberal Caucus criticized the utility's approach to rate applications and highlighted its forecasting capabilities.

tions ; - The denial of NS Power's proposed deferral of general rate application OM&G costs (GRA deferral) for collection over the 2026-2027 period; - A reduction of $1.8 million in fuel and purchased power costs in 2026 to reflect the pre...

AI summary The document outlines several adjustments and denials related to rate applications and cost allocations, including the denial of GRA deferral, a reduction in fuel and purchased power costs, a peak load carrying capability adjustment, and the denial of an AMI opt-out fee. It also discusses potential impacts of changing depreciation treatments and cost-of-service procedures on rate increases for different customer classes.

3.1 Should the Settlement Agreement be Approved? [36] On September 2, 2025, NS Power wrote to the Board to advise that it would be filing a general rate application for the 2026 and 2027 test years. It stated that it had reached a consensu...

AI summary NS Power informed the Board on September 2, 2025, that it would file a general rate application for 2026 and 2027, supported by customer representatives. However, it delayed filing until September 18, 2025, and only submitted the settlement agreement on November 5, 2025, after being requested by Board staff.

3.2.1 Base Cost of Fuel [46] Fuel and purchased power costs comprise the largest portion of NS Power's revenue requirement. During the two-year test period, NS Power has forecast those costs to be $918.6 million for 2026 and $918.4 million...

AI summary NS Power is seeking approval for new Base Cost of Fuel (BCF) amounts of $927.3 million for 2026 and $850.9 million for 2027, which would result in rate smoothing by over-collecting fuel costs in 2026 and under-collecting in 2027. Board Counsel engaged Bates White to review NS Power's fuel and purchased power costs, including the BCF and commodity price forecasts. NS Power also applied for an extension of the existing AA/BA riders on an interim basis, which was granted in Matter M12640.

update to the rates, which could potentially negatively impact the nature and status of the Settlement Agreement reached by the parties in this proceeding. [Emphasis added] [Exhibit N-35, pp. 14-15] [53] In reviewing NS Power's load foreca...

AI summary The text discusses the use of the September 2024 GRA Forecast in NSPI's rate updates and its potential impact on the Settlement Agreement. Bates White notes that while using the 2025 Load Forecast would be optimal, updating rates could negatively affect the Settlement Agreement, and no major changes were observed between the 2024 and 2025 forecasts.

nt agreement itself, there is nothing in the current evidentiary record before the Board to provide support to exclude inflation costs beyond 2024 from generation Plant decommissioning cost estimates. [176] The Board also has other concern...

AI summary The document highlights concerns about the settlement agreement adjustments to net salvage rates for NS Power's production Plant assets. A significant reserve deficiency of $572 million has been identified, indicating that past depreciation rates were too low, which may lead to future rate increases and intergenerational inequity.

was recently mentioned in Deirdre Sheehan et al, The Push for Electrification and a Net-Zero Grid: Developments, Reactions, and Implications, 2024 62-2 Alberta Law Review 424, 2024 CanLII Docs 3091: Consideration of the retirement of coal-...

AI summary NS Power faces potential rate increases due to early retirement of coal-fired assets by 2030. To manage this, costs were transferred to a Decarbonization Deferral Account (DDA) to ensure rate stability and affordability. The NSURB approved this approach with modifications.

Decarbonization Deferral Account NS Power considers its approved decarbonization deferral account to be a rate stabilization tool and proposes that it be classified and allocated in the same manner as other rate stabilization tools. [580]...

AI summary NS Power proposes classifying its decarbonization deferral account as a rate stabilization tool. The proposed changes to cost-of-service methodologies negatively impact residential customers, increasing their costs by approximately $26 million in 2026 and $25.3 million in 2027.

this is kind of a middle route. I've acknowledged it's an approximation and that it will be superior to have Nova Scotia Power's analysis when available. [Transcript, January 13, 2026, pp. 1311-1312] [621] In response to Undertaking U-6, N...

AI summary The document discusses the impact of a peak load carrying capability adjustment on distribution system costs, shifting about $7 million in costs from the residential class to other rate classes, particularly the general service class. The adjustment would reduce proposed rate increases for some classes but increase them for others, with some classes still seeing overall rate reductions.

3.9.2 Residential and Small General Customer Charges [649] In its last general rate application, NS Power proposed to increase customer charges for the domestic service and small general customer classes to align those charges with costs u...

AI summary NS Power proposed increasing customer charges for residential and small general customers to align with cost-of-service study findings. Other parties raised concerns, leading to a settlement where charges were set at 75% of the proposed amounts. In the current proceeding, NS Power seeks to increase these charges in line with smoothed non-fuel cost revenue increases.

tomers who have opted out of using AMI meters' functionality. Therefore, 95% of accounts to be billed in May would have true reads at the start and end of the billing period reflected on the May bill. NS Power maintained there were no long...

AI summary NS Power argues that proration is the most feasible method for implementing rate changes due to legacy system limitations and the minimal impact on customers. The Board agrees, noting that proration has been traditionally used and that the impact on customers is not significant.

OPENING STATEMENT 25 NOVA SCOTIA LIBERAL CAUCUS 1 households and businesses with predictable electricity 2 costs allowing for better budgeting and long-term 3 planning. It would give businesses confidence to invest 4 and expand and would i...

AI summary The Nova Scotia Liberal Caucus emphasizes the need for predictable electricity costs to aid households and businesses in budgeting and long-term planning. They urge the Board to minimize rate increases, recognize the financial burden on Nova Scotians, and adopt a five-year multiyear rate plan for stability and fairness.

NSP COST OF SERVICE PANEL 45 Questions, (Deveau) 1 evidence but did not go to an oral hearing, 2 But you were a consultant, but Q. 3 not you didn't testify as an expert. 4 (Blair) To clarify, there were A. 5 two times I've testified 6 Okay...

AI summary The text discusses a witness's involvement in regulatory proceedings, including testimony before the Ontario Energy Board and involvement in matters related to cost allocation, load forecasts, and regulatory accounts in New Brunswick. The witness was not qualified as an expert in these matters.

NSP COST OF SERVICE PANEL 107 Cr-ex, (Mahody) 1 material to the Application. I believe every aspect that 2 is or I would view as material was included and 3 described in the filing itself. So I don't believe the 4 filing would have been mi...

AI summary The speaker asserts that all material information was included in the filing and suggests that the Settlement Agreement should have been filed as part of the Application. The discussion refers to the draft GRA and mentions a future proceeding related to the minimum system methodology after the 2026/2027 test period.

NSP COST OF SERVICE PANEL 173 Questions, (Chair) because that's what the parties agreed to in the Settlement Agreement? A. (Willett) No, I think it's fair, and it's our expectation, I think that's why we're here today, that the Board would...

AI summary The discussion revolves around the Settlement Agreement and the Minimum System Study, with the parties suggesting that the Board consider the trade-offs made in the agreement. There is a focus on rate stability and the potential negative impact on domestic customers, as well as the timing of implementing changes to the cost of service model.

1 integrated. And each of these vertically integrated 7 probably brings Nova Scotia Power closer to how other 8 utilities have generation fleets, but and the 9 composition of those fleets. But no, we didn't make any 10 downward adjustment...

AI summary The text discusses Nova Scotia Power's transition to integrated generation fleets and the potential benefits of securitization for customers through lower rates. It also references the 2022 GRA business risk assessment and the percentage of energy generated by Nova Scotia Power in future years.

1 JONATHAN MacINTOSH, Previously Affirmed: 15 is that would relate to the incentives that would be in 16 place to fund or pay for some of those and changes to 17 those programs. 18 The elimination of those Q. 19 incentives. Okay. INTERNATI...

AI summary The text discusses the impact of reducing heat pump programs on load forecasts and rates, as well as the fuel cost smoothing mechanism, including over-collection in 2026 and under-collection in 2027. These topics are part of a regulatory proceeding involving rate adjustments and program evaluations.

A. (Williams) Yes, there was a form of a GRA that would have had the components for discussion included, but it was, as you indicated, provided as a draft. 1 Q. And are you able to tell me when 2 that would have been provided to ratepayer...

AI summary The discussion revolves around the timeline for providing a draft GRA and the handling of revenue variances in the Settlement Agreement. Nova Scotia Power indicates that any future General Rate Application for 2028 is yet to be determined and would depend on circumstances at that time.

1 for Goose Harbour does not specify any penalty if PHP 2 fails to reach commercial operations by the contractually 3 specified date. Is this because the Province did not 4 include that protection in the PPA that Nova Scotia Power 5 was re...

AI summary The text discusses concerns about the lack of penalties in a PPA for PHP if commercial operations are not met by a specified date, and the impact of rate smoothing on fuel cost recovery, including over-recovery in 2026 and under-recovery in 2027, with a planned reset of the base cost of fuel in 2028.

NSP GENERAL/REGULATORY PANEL 1039 Questions, (Chair) 1 finish this last question and then we can break for 15 13 on the formula for four more years after that, and every 14 fifth year, as I understand it, they reset the base. Any 15 reason...

AI summary The discussion focuses on the feasibility of adopting a rate formula model similar to Alberta's, which resets the base every five years. The speaker notes that this model applies only to distribution utilities and raises questions about the predictability of costs for vertically integrated utilities.

In-ch, (Mahody) 1 DUSTIN MADSEN, Solemnly Affirmed: 2 EXAMINATION ON QUALIFICATIONS BY MR. MAHODY 3 Q. Mr. Madsen, could we begin by 4 confirming that you filed evidence in this matter that's 5 been marked as Exhibit N-34? 6 Confirmed. A....

AI summary Dustin Madsen, President of Emrydia Consulting Corporation, outlines his professional qualifications and experience, including his work in regulatory finance, consulting for regulated entities, and teaching in the field of accounting and regulatory finance.

Questions, (Chair) 1 then used the growth rate that I've seen for Nova Scotia 2 Power over the last three years, which has been averaging 3 roughly 3 percent since close to 2024, the rate of growth 4 in that cost increases quite significan...

AI summary The discussion highlights concerns about the growth rate of Nova Scotia Power's costs, the impact of income tax on revenue calculations, and discrepancies in depreciation rates between the ELG and ALG procedures. It also notes that using net present value analysis reveals a significant financial disadvantage to the ELG procedure.