Topic:"Rate Smoothing Adjustment" in M13133

NS Power Application for Financing Order to Reduce Costs for Customers Redacted 1 securitization could benefit ratepayers by lowering financing costs associated with the recovery of 2 certain costs and concluded that similar transactions h...

AI summary NS Power is proposing to securitize certain costs to reduce financing expenses and customer rate impacts. This aligns with previous findings that securitization can lower costs for ratepayers. The proposal includes the recovery of balances from thermal generation asset retirements and other regulatory assets, with consideration given to transaction size and credit requirements.

NS Power Application for Financing Order to Reduce Costs for Customers Redacted - any difference between estimated Ongoing Financing Costs financed by Securitized Bonds and the actual Ongoing Financing Costs incurred by the Company or an A...

AI summary The document outlines the calculation of Balancing Adjustments (BA) and BA riders in relation to Securitized Surcharges and Financing Orders, including formulas for determining BA(t), BA1(t), BA2(t), and the BA rider based on forecast sales and reconciliation amounts.

Effective December 1, 2025, in accordance with the Nova Scotia Energy Board (NSEB, Board) Decision[1](#page-97-0) on NS Power's Application for 2025/26 Time-varying Pricing (TVP) Tariffs (M12499): - The Interim Energy Charge applies in all...

AI summary Effective December 1, 2025, the Nova Scotia Energy Board's decision on NS Power's application for 2025/26 Time-varying Pricing (TVP) Tariffs (M12499) outlines the implementation of an Interim Energy Charge, the suspension of Critical Peak Events, and the conditions for restoring Critical Peak Pricing rates once system functionality is restored.

DEMAND CHARGE per month per kilowatt of maximum demand Effective upon the date of the Board's Order $9.809 Effective January 1, 2027 $10.697 32 cents per kilowatt reduction in demand charge where the transformer was owned by the customer p...

AI summary The document outlines the demand charge rates effective from the date of the Board's Order and January 1, 2027, along with a rebate of 32 cents per kilowatt reduction in demand charge for specific customer-owned transformers.

Effective November 1, 2025, in accordance with the Nova Scotia Energy Board (NSEB, Board) Decision[1](#page-73-0) on NS Power's Application for 2025/26 Time-varying Pricing (TVP) Tariffs (M12499): - The Interim Energy Charge applies in all...

AI summary The document outlines the implementation of the Interim Energy Charge effective November 1, 2025, following the NSEB's decision on NS Power's 2025/26 Time-varying Pricing (TVP) Tariffs (M12499). It specifies billing procedures for Small General Time of Use Tariff customers and outlines conditions for restoring TVP rates once system functionality is restored.

Effective December 1, 2025, in accordance with the Nova Scotia Energy Board (NSEB, Board) Decision[1](#page-156-0) on NS Power's Application for 2025/26 Time-varying Pricing (TVP) Tariffs (M12499): - The Interim Energy Charge applies in al...

AI summary This document outlines the implementation of an Interim Energy Charge by NS Power starting December 1, 2025, following the NSEB's decision on the 2025/26 Time-varying Pricing (TVP) Tariffs. It specifies that no Critical Peak Events will occur during this interim period and details the conditions for restoring the approved Critical Peak Pricing (CPP) rates.

recognized in the - current policy context of what we see from the provincial - government lately, but probably more immediately from the - federal government last week with their announcement of a - $2 billion investment in electric heati...

AI summary The speaker discusses the importance of avoiding significant rate increases in the near term to align with provincial and federal policy objectives, particularly those related to electrification and renewable energy. They note that growing the load base helps spread fixed costs over more customers, benefiting future users. The securitization rider is also mentioned as a new fixed cost that could be mitigated by increasing load.

u know, costs previous costs - incurred, so having that amortized over a long period at a - good interest rate is of benefit to those customers - switching. - Where we bristle at the suggestion - that now precedent has been set about finan...

AI summary The discussion highlights concerns about amortizing past fuel costs over long periods at favorable interest rates, and the potential negative impact of securitization on ratepayers. There is a disagreement over the inclusion of future fuel costs in the rate adjustment process, with one party arguing it may be inefficient and costly.

2026. So this would be very - consistent and familiar to most on the call from normal - AA/BA applications. Attachment 1 to that appendix would - include the FAM calculation model. Attachment 2 and - Attachment 3 would be the calculations...

AI summary The document discusses the treatment of the FAM balance, including the calculation model and credit application to customer classes, as well as the deferral treatment of the PHP, which impacts revenue and cost responsibility in generation and transmission functions. Cost allocation methods, such as the 3CP and annual energy requirements, are also outlined.

- representation of the true-up. - For those of you familiar with the FAM - process, very similar to the FAM process regarding the - components of the true-up, there's instead of calling - it AA and BA, though, we have it called BA-1 and B...

AI summary The discussion revolves around the securitization surcharge and the true-up process, with emphasis on the timing and structure of filings, particularly the November 1st filing. The true-up is compared to the FAM process, with components referred to as BA-1 and BA-2. The conversation also considers the impact of regulatory decisions on rate adjustments.

and the indenture trustee and are not subject to set-off; and exemptions required to the Affiliate Code of Conduct and Cost Allocation Manual arising from implementing the securitization transaction. - NS Power estimates that for 2027, the...

AI summary Nova Scotia Power Incorporated is seeking approval to securitize $1 billion in costs through a Securitization Cost Recovery Rider, which would result in a 3.3% average rate increase for FAM customer classes in 2027. The securitization is expected to generate $265.6 million in customer savings over 30 years due to 100% debt financing, eliminating shareholder returns on the assets. A paper hearing and timeline for the proceeding are outlined.

and the indenture trustee and are not subject to set-off; and exemptions required to the Affiliate Code of Conduct and Cost Allocation Manual arising from implementing the securitization transaction. - NS Power estimates that for 2027, the...

AI summary Nova Scotia Power Incorporated is seeking approval to securitize $1 billion in costs through a Securitization Cost Recovery Rider, with estimated revenue recovery from customers and an average rate increase of 3.3% for FAM customer classes. The securitization is expected to result in customer savings due to 100% debt financing. A paper hearing timetable is outlined, and more details are available online under Matter No. M13133.

13 Request IR-13: - 14 On pp. 16-17 of its application and pp. 35-36 of the technical conference transcript, NS Power 15 advances the benefits of the securitization of Fuel and Purchased Power costs, the PHP Deferral 16 and IESO Deferral f...

AI summary The document raises concerns about the securitization of Fuel and Purchased Power costs and the PHP and IESO Deferral, questioning whether transferring current costs to future customers aligns with intergenerational equity and policy objectives around electrification. It also inquires about rate increases and their impact on electrification goals.

1 Request IR-14: - 2 On p. 17 of its application, NS Power noted that, if not securitized, the September 2026 FAM - 3 balance would need to be collected through the existing FAM process resulting in an increase of - 4 about 7 8%. - 5 a) Wh...

AI summary The document outlines a series of questions regarding the securitization of the Fuel Adjustment Mechanism (FAM) balance by NS Power, including potential rate increases, customer impact, deferral of balances, and comparisons with other jurisdictions. It also asks about the scope of securitization and future rate adjustments.

- 31 (c) Please confirm: 1 (i) That it would remain open to NSPI to propose and the Board 2 to approve a smoothing of rate impacts if determined to 3 create rate shock? 4 (ii) As a term of the GRA Settlement Agreement, approved by - 5 the...

AI summary The text asks whether NSPI can propose and the Board can approve smoothing of rate impacts to avoid rate shock, and references a GRA Settlement Agreement that supports smoothing FAM rider impacts for industrial classes during the 2026-2027 test period.

21 Request IR-20: - 22 Reference: N-1, Application, page 15, lines 3-8; and Appendix A, tab "3 NSIESO - 23 Deferral." "The balance of the Nova Scotia Independent Energy System Operator (IESO-NS) Deferral account, forecast to be approximate...

AI summary The document discusses the proposed securitization of a $20.2 million IESO-NS Deferral account balance, including questions about the impact of a potential Board determination, the breakdown of the deferral balance by month, consideration of under-spend from 2025-2026, and the rationale for requiring ratepayers to pay accrued interest at 6.59%.

1 customers, identify the mechanism and explain the resulting reallocation. 2 (e) Please provide worked numerical examples showing the annual true-up 3 consequences of customer entry, customer departure, class migration and 4 a material in...

AI summary The text requests detailed numerical examples explaining the annual true-up consequences of customer entry, departure, class migration, and load changes, including over or under-collection and the customer classes responsible for adjustments.