Topic:"Rate Smoothing Adjustment" in M12887

Matter: Nova Scotia Power Inc. - 2025 Short Run Marginal Cost (SRMC) Test to Rates Report

5 passages 2 documents

Rate Smoothing Adjustment across all matters →

N-1Report 3 passages

DATE FILED: May 29, 2026 Page 19 of 26 p. pp. 18-20

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.

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Figure 1.2 2025 Base Cost Rate Revenues with DSM, SCRR and 2025 FAM Amounts p. p. 24

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.

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Table 1 Estimates of Electricity Price Elasticities p. p. 24

Table 1 Estimates of Electricity Price Elasticities Elasticity Estimates Short-run Long-run Residential -0.06 to -0.49 -0.45 to -1.89 Commercial -0.17 to -0.25 -1.00 to -1.60 Industrial -0.04 to -0.22 -0.51 to -{82 ) '- ,/ Most analysts ei...

AI summary The table presents estimates of electricity price elasticities for residential, commercial, and industrial consumers in the short-run and long-run. The text explains that residential consumers differ from commercial and industrial users in their response to price changes due to differing motivations and rate structures, and that consumers are expected to be more responsive to price changes over longer periods.

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N-2Report - Refiled 2 passages

Preamble p. pp. 10-12

- higher-priced peak periods to lower-priced off-peak periods, are not expected to materially affect - total customer energy consumption and therefore are not considered in the annual SRMC tests. NS - Power is of the view, however, that th...

AI summary Nova Scotia Power suggests that daily price elasticities should be monitored for time-differentiated rates under the TOU and CPP Domestic rate classes during winter months for SRMC purposes, even though they are not expected to significantly impact total customer energy consumption.

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4.3 Residential Time-of-Day Most of the energy usage in this class is consumed during the off-peak period, and the rate is designed to encourage this behaviour. Comparing the average annual unit revenue to the average annual marginal cost is not meaningful for specific Time-of-Day (TOD) periods, since the average marginal cost reflects the costs in all hours, while the unit revenues are designed around specific time periods. To make the test meaningful, individual TOD rates are compared to average marginal costs calculated for the hours in which the TOD rates are in effect. The TOD rate has passed the test under all three pricing periods. 4.4 Time-Varying Pricing The TVP Pilot Program offers two types of tariffs: CPP and TOU tariffs, available to a limited number of eligible customers in the Domestic Service, Small General, and General Classes.[17](#page-22-2) The rates in these tariffs are designed to encourage customers to shift energy consumption from peak to off-peak hours when the cost of electricity is lower and to reduce peak load thereby reducing upward pressure on system capacity. The TVP tariffs were approved for use to a limited number of customers on June 22, 2021, as a pilot program beginning November 1, 2021. The SRMC test for these classes was conducted for the first time in the 2022 Report. The Multi-Unit Residential Building Time-Of-Use (MURB TOU) available to General Class customers was approved effective November 1, 2024. The SRMC test for the MURB TOU class is conducted for the first time in the 2025 Report. As is the case with the TOD rate, comparing the average annual unit revenue to average marginal cost is not meaningful for specific time-varying periods, since the average annual marginal cost reflects the costs in all hours, while the unit revenues are designed around specific time periods. p. pp. 22-23

-varying periods, since the average annual marginal cost reflects the costs in all hours, while the unit revenues are designed around specific time periods. DATE FILED: June 5, 2026 Page 23 of 26 M09777, Board Order, June 22, 2021 and M118...

AI summary The document discusses residential Time-of-Day (TOD) and Time-Varying Pricing (TVP) programs, emphasizing how their rates are designed to shift energy consumption to off-peak hours. It highlights the Short Run Marginal Cost (SRMC) test for these programs, noting that comparing average annual unit revenue to average marginal cost is not meaningful for specific time periods. The TVP Pilot Program includes CPP and TOU tariffs, with the MURB TOU rate approved in 2024. The GRLF tariff is also discussed, with its SRMC test results for 2025.

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