N-52024-2025 Bates White FAM Audit Report - Redacted
4 passages
were based on forecasted total fuel and purchased power costs for 2020, 2021, and 2022.23 NSPI referred to this three- 16 NSPI, "2020-2022 Fuel Stability Plan Application," June 27, 2019, page 22-23. 17 NSUARB, "Decision," In the Matter of...
AI summary The Fuel Adjustment Mechanism (FAM) for Nova Scotia Power (NSPI) involves recovery of fuel and purchased power costs over a three-year period, with adjustments made annually to reconcile imbalances. A new Rate Stability Plan was introduced in 2022, approved in 2023, which defers AA and BA adjustments until 2025. The FAM includes recovery of various fuel types and purchased power costs.
XII.B.1.c.i.1. Economic Imports We begin here with economic imports. Deciding to import power into Nova Scotia is not always based on a simple comparison of the cost of energy at the external source and . There are several other costs invo...
AI summary The document discusses the economic considerations of importing power into Nova Scotia, including transmission costs, fees, and the use of tools to evaluate the full cost of imports. NSPI's traders acted prudently, with most transactions providing economic benefits to customers, though one exception resulted in a loss due to unexpected price increases.
XIII.B.1.c.x. Portfolio-Level Regression Analysis Our first portfolio-level look at the effectiveness of NSPI's hedging activities was to consider how closely changes in the value of NSPI's hedge portfolio—comprised of both physical and fi...
AI summary The document discusses NSPI's portfolio-level regression analysis to evaluate the effectiveness of its hedging activities in offsetting fuel consumption costs during the Audit Period. While the R-squared metric indicates a strong fit in all quarters, the slope metric falls outside the acceptable range, suggesting the hedge was not effective in offsetting costs.
XV.B.4.e. Cause Code 5: PDN Deviations – PHP Decision to Vary From Schedule NSPI identifies in its ELIADC annual reports the hours in which Cause Code 5: PDN deviations occur and the magnitude of those deviations. The cost or "penalty" for...
AI summary This section discusses the calculation and application of penalties for Cause Code 5: PDN deviations under the ELIADC Tariff. NSPI calculates penalties based on price differences and has reduced the penalty in 2025, but this reduction is criticized as not supported by the tariff and potentially weakening incentives for PHP to follow the schedule. The document also highlights a correction recommendation for the penalty calculation.