Topic:"Rates And Money" in M03632

- A. Background and qualifications of the sponsors - B. The effect of income tax status on COMFIT rates - C. Assumptions about capital structure and costs in the tariff modeling - D. Interconnection information provided by NSPI - E. Interc...

AI summary The document outlines various exhibits and sections related to a regulatory proceeding, including background information on sponsors, income tax status effects, tariff modeling assumptions, interconnection details, and information requests from sawmills, as well as exhibits related to different energy generation technologies.

1 INTRODUCTION 2 - 3 Q. PLEASE STATE THE NAMES, POSITIONS AND BUSINESS ADDRESSES OF EACH 4 PERSON SPONSORING THIS EVIDENCE. - 5 A. Bruce Biewald is the President of Synapse Energy Economics, a consulting firm located 6 at 22 Pearl St., Cam...

AI summary The introduction section of the proceeding provides information about the individuals and organizations submitting evidence. Bruce Biewald, Wilson Rickerson, Geoff Keith, and Susan Shaw are identified as sponsors of the evidence, with details on their roles, professional backgrounds, and contributions to the development of the proposed tariff rates.

1 escalating COMFIT rates. We found that operating costs (not including fuel costs for 2 biomass) as a percentage of total costs are approximately 10% for the types of projects 3 considered here. If an escalating approach were to be used f...

AI summary The text discusses the proposed COMFIT program in Nova Scotia, focusing on the design of tariffs, including considerations of escalating versus levelized rates. It also outlines the consulting team involved in the project and the purpose of the evidence provided, which is to propose tariffs and describe the rationale behind them.

16 Q. PLEASE DISCUSS THE UNCERTAINTIES INVOLVED IN THE PROCEES OF 17 SETTING COST-BASED COMFIT RATES. 18 A. There are large, intrinsic uncertainties involved in setting these rates. In assessing the 19 cost of projects in each resource cla...

AI summary The response discusses the uncertainties involved in setting cost-based COMFIT rates, highlighting how assumptions about project parameters such as capacity factors and project ownership significantly affect the resulting rates for different types of renewable energy projects.

4 Q. HAVE YOU COMPARED YOUR RATE FOR SMALL WIND TO THE RATE 5 RECOMMENDED BY CANWEA? 6 A. Yes. Our total project costs (including interconnection, reserves and fees) come to 7 $6,427 per kW. This assumption is roughly consistent with CANWE...

AI summary The respondent compared their small wind project rate to CANWEA's recommendation. They noted their total project cost is higher than CANWEA's due to interconnection costs. They also calculated a required rate of $405 per MWh to achieve a 12% return, which is higher than CANWEA's $350 per MWh.

Cost and Performance Assumptions in the Tariff Modeling The table below shows summary information about the calculations on which our proposed tariffs are based. Tables 2 through 6 show more detailed input assumptions for each resource cla...

AI summary The document introduces a table summarizing the calculations for proposed tariffs, with more detailed input assumptions provided in Tables 2 through 6 for each resource class.

Existing Boiler Replaced in Year 10 in Steam-Only Scenario As t io su m p n S te -O ly am n Sc io en ar C H P Sc io en ar Ca lc la t io u n $ ( /y ) Ro l ty Pa t y a y m en r $ 5 0 0 f In t a t ion la te i t h in la t ion p u ss um p es ca...

AI summary The document presents a comparison of financial and operational metrics between a steam-only scenario and a combined heat and power (CHP) scenario, focusing on the replacement of an existing boiler in year 10. It includes values such as royalty payments, residual value, and tax rates, but most entries in the CHP scenario are marked as 'int a t ion p ussum p', indicating incomplete or placeholder data.

03-01-2011 Nov a S ia C OM FIT Mo del cot Win d ≤ 50 kW Ca sh Flo w W ork she Top et: Syn e E aps xhi bit I Prop erty tax 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Tota l (3,6 52) (3,7 22) (3,7 94) (3,8 66) (3,9 41) (4,0 16) (4,0 93) (4,1 72...

AI summary The text presents a table with financial data, including property tax, total figures, EBITDA, and equity return cash. It shows a series of numerical values over time, likely related to a financial analysis or reporting context.

Total Nov a S ia C OM FIT Mod el cot Lar Win d C ge ash Flo w W ork she et: Top Syn aps e E xhi bit J Fixe d Pr ice C t omp onen ice C Esca latin g Pr t onen 100 % 0% 142 .10 0.00 142 .10 0.00 142 .10 0.00 142 .10 0.00 142 .10 0.00 142 .10...

AI summary The text presents a table with fixed price components and standard offer prices, showing consistent values across various columns, possibly related to a cost or pricing model in a regulatory proceeding.

Scenarios in $2012 Va lue fo r S On ly tea m- Gr s V alu e f CH P os or Ne t V alu e f CH P or Prop erty tax (3,5 00) (3,4 65) (3,4 30) (3,3 95) (3,3 60) (3,3 25) (3,2 90) (3,2 55) (3,2 20) (3,1 85) (3,1 50) (3,1 15) (3,0 80) (3,0 45) (3,0...

AI summary The document presents financial scenarios from 2012, including property tax values, total figures, and EBITDA metrics across different scenarios. The data highlights variations in financial outcomes under different conditions.

Pre-Tax Internal Rate of Return 13.79% Nova Scotia COMFIT Model Biomas s Cash Flo w Worksh eet: Botto m ; Synapse E Exhibit K Operating Year 0 1 2 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Debt Loan Balance 4,829, Interest 9.50% Pri...

AI summary The document presents a financial analysis of a project with a pre-tax internal rate of return of 13.79%, including a detailed table showing debt loan balances, interest rates, and principal payments over a 20-year period.

Synapse Exhibit L Assumptions: Notes: Othe r (500 ) (510 ) (519 ) (529 ) (540 ) (550 ) (560 ) (571 ) (582 ) (593 ) (605 ) (616 ) (628 ) (640 ) (653 ) (665 ) (678 ) (691 ) (704 ) (718 ) Prop erty tax (68,2 50) (67, 568) (66, 885) (66, 203)...

AI summary The document provides a table with assumptions and notes related to property tax and total EBITDA over various time periods. It includes figures for different years, indicating changes in property tax and EBITDA values.

Synapse Exhibit M Assumptions: Notes: Prop erty tax Tota l (5,8 36) (151 ,036 ) (5,7 78) (153 ,766 ) (5,7 20) (156 ,549 ) (5,6 61) (159 ,386 ) (5,6 03) (162 ,279 ) (5,5 44) (165 ,229 ) (5,4 86) (168 ,237 ) (5,4 28) (171 ,303 ) (5,3 69) (17...

AI summary This table from Synapse Exhibit M outlines assumptions related to property tax totals and EBITDA over a series of years, showing decreasing property tax totals and slightly decreasing EBITDA values across the periods listed.

PRICE The estimated price for the supply, delivery and installation of the above referenced scope is: Twelve Million Dollars .....................................................................................................................

AI summary The document provides an estimated price of $12,000,000 for the supply, delivery, and installation of a referenced scope, emphasizing that this is not an offer or binding contract. Babcock & Wilcox Canada reserves the right to finalize prices through a formal proposal process.

Earnings Statement 1 Revenue Gross Electrical Output 7,999 kw Net Electrical Power output kw 7,058 kw Hours/year operation 7,446 h Electrical energy production 52,553,868 kWh Rate 0.2130 $/KWHR Annual escalation 1.80%

AI summary The Earnings Statement outlines the electrical output and revenue details for the year, including gross and net electrical power output, hours of operation, energy production, and the rate per kilowatt-hour with an annual escalation percentage.

Secondary electrical energy production Rate Annual escalation Average Annual Steam Output MMB 12.80 Thermal energy production 95,309 Rate $/MMBTU 16.0000 Annual escalation 1.80% Carbon Credits $/tonne 0 $/tonne NSP Intensity Factor 0.80 tC...

AI summary The text provides data on secondary electrical energy production, including average annual steam output, thermal energy production, and rates. It also includes information on carbon credits, NSP intensity factor, capacity factor, initial plant availability, and annual degradation of power available.

3 Accounts receivable Collection of revenue as follows: Current 0.0% 30 days 100.0% 60 days 0.0% Provision for Bad debts 0.0%

AI summary The document outlines the accounts receivable collection process, indicating that 100% of revenue is collected within 30 days, with no revenue collected after 60 days and no provision for bad debts.

100.0% Total annual revenue - amount in A/R at end of year 50 8.3% Total 11,193,974 11,395,465 11,600,584 11,809,394 12,021,963 12,238,359 12,458,649 12,682,905 12,911,197 13,143,599 13,380,183 13,621,027 13,866,205 14,115,797 14,369,881 1...

AI summary The text presents a table with financial data, including total annual revenue and various production rates and costs over time. The data includes revenue figures, secondary electrical energy production rates, thermal energy production rates, and carbon credits and capacity payments. The information highlights financial and operational metrics for a given entity.

11 Q: Have you testified previously regarding rates for utility purchases from - 12 non-utility generators? - 13 A: Yes. I have testified in at least nineteen proceedings on non-utility purchase - 14 rates, including the following: - 15 Ma...

AI summary The witness has testified in multiple regulatory proceedings across various jurisdictions, including Massachusetts, Ontario, Texas, Maryland, New Jersey, North Carolina, and Connecticut, regarding rates for utility purchases from non-utility generators, including cogenerators and renewable energy facilities.

5 Q: What rates do you recommend for the COMFIT technology categories? - 6 A: As I explain in Section IX, I recommend the COMFIT rates shown in Table 1, - 7 based on combining the effects of the following adjustments and considerations: -...

AI summary The respondent recommends COMFIT technology rates based on adjustments such as a corrected biomass formula, realistic capacity factors for wind projects, lower-cost capital due to community support, property-tax relief for hydro projects, reduced development costs for community-supported projects, and lower expected returns for tidal projects.

6 Q: How do the proposed COMFIT rates compare to those in other jurisdictions? 7 A: Synapse's proposals are consistently priced higher than those in other 8 jurisdictions, except for the large-wind rate, which is slightly lower than the 9...

AI summary Synapse's proposed COMFIT rates are higher than those in other jurisdictions, except for the large-wind rate, which is slightly lower than Ontario's. The comparison includes rates from Ontario, British Columbia, and Vermont, with British Columbia's rates being significantly lower when interconnection costs are included.

21 Q: What levelized costs have NSPI estimated for the wind projects it owns? 22 A: The company reports that the Nuttby project will cost $84.54/MWh (Nuttby 23 Application, September 2009, p. 16) the Point Tupper Wind Project will cost 10...

AI summary NSPI estimates levelized costs for its wind projects as $84.54/MWh for Nuttby, $91.65/MWh for Point Tupper, and $86.71/MWh for Digby. Even with adjustments for the loss of ecoEnergy credits and declining turbine prices, costs remain below $100/MWh.

18 Q: How did you derive the current system-average rate? 19 A: I calculated the current system-average rate as total system revenues divided by 20 total system sales. For both total system revenues and sales, I used the 21 Company's forec...

AI summary The system-average rate was calculated by dividing total system revenues by total system sales, using the Company's 2011 forecasts for 'Above the Line' rate classes and Synapse's proposed tariff as filed in Case No. P-887(2). The derived rate is $111.73/MWh.

1 IX. Recommended Rates and Tariff Provisions

AI summary This section outlines the recommended rates and tariff provisions under consideration for regulatory approval, focusing on financial and operational aspects of utility services.

2 Q: Please summarize your recommendations regarding the COMFIT rates. 3 A: The corrections I was able to quantify in Sections III–VI are summarized in 4 Table 6. The "corrected" line is generally greater than the sum of the values 5 above...

AI summary The respondent summarizes corrections to Synapse's rate proposals, noting that the corrected line in Table 6 is generally higher than the sum of values above due to rounding and interactions of adjustments.

10 Q: Have you estimated that rate effects for the development cases you 11 described in Section VIII? 12 A: Yes. Table 7 presents the rate impacts in the same form and with the same 13 assumptions as in Table 5.

AI summary The respondent confirms that rate effects for the development cases described in Section VIII have been estimated and are presented in Table 7, using the same form and assumptions as in Table 5.

1 Table 7: First-Year Bill Effect, Corrected Rates Case Number and Description 1 2 3 4 5 Small Mostly Balanced High High Wind Wind Tidal Penetration Thousands of Dollars per Year If Avoiding Base Fuel $3,565 $24,392 $38,147 $60,755 $98,676...

AI summary Table 7 compares the first-year bill effect of corrected rates and RFP Renewables, showing smaller increases in customer bills with corrected COMFIT rates compared to Synapse's proposed tariffs.

implementation, modeling of investment balances, income, and return to shareholders. 48. New Mexico PSC 1833, Phase II; El Paso Electric Rate Case; New Mexico Attorney General; December 23 1985. Nuclear decommissioning fund design. Interna...

AI summary The text lists various regulatory proceedings and cases involving utility rate cases, nuclear decommissioning fund design, and prudence reviews related to generation planning. These cases include evaluations of rate effects, performance standards, and proposals for supplementary rates.

Recommended FIT Price for Community Wind (> 50 kW) CanWEA would like to reiterate the position of our initial submission on November 29th 2011. CanWEA believes that large community wind projects can contribute significantly to achieving th...

AI summary CanWEA reiterates its recommendation for a FIT price of 12.5 cents per kWh for community wind projects over 50 kW, indexed at 100% of CPI. This recommendation is based on a 2008 Helimax study and Quebec's community wind policy. Ontario's FIT program offers a higher price of 14.5 cents per kWh with 20% CPI indexing.

8.0. On Reserve Utility Usage Issues. - 8.1. For purposes of this discussion we are referring to 1.2 (g). The UARB hearings will have participants who are on both sides of the issue. Many will seek a COMFIT rate that will develop their ren...

AI summary The text discusses energy usage disparities among Mi'kmaq communities in Nova Scotia, noting significantly higher electricity consumption compared to the general population. This is attributed to substandard housing and larger family units. The Mi'kmaq are in a unique position, supporting both renewable energy development and lower utility rates to mitigate financial strain on their communities.

Financial Inputs Financial inputs include all monetary aspects of the project including: debt:equity ratios, interest rates, depreciation, term, incentives and exchange rates. In general, there is more variability in financial inputs than...

AI summary The document discusses financial inputs for a project, emphasizing their impact on rates and returns. SWFI notes that financial assumptions in the formal evidence submission are more accurate than draft submissions, with the exception of the interest rate, which is deemed unreasonable.

Q. WHAT DID ANSS RETAIN YOU TO DO? A. ANSS retained B&Co to review and assess the realism of the financing-related assumptions in the testimony prepared by Synapse Energy Economics, Inc. ("Synapse"), concerning biomass-fired combined heat...

AI summary ANSS retained B&Co to review and assess the realism of financing-related assumptions in Synapse's testimony on biomass CHP projects in a rate proceeding before the NSUARB.

Q. WHAT IS CAPM AND YOUR CAPM-RELATED EVIDENCE? A. Although it is based on strong assumptions and the subject of much controversy, the capital asset pricing model ("CAPM") is an often-employed theoretical method of estimating the cost of e...

AI summary The response explains the Capital Asset Pricing Model (CAPM), which is used to estimate the cost of equity. It notes that while CAPM is widely used, it is based on strong assumptions and is controversial. The NSUARB has previously considered CAPM-related evidence in rate approval proceedings. The speaker presents CAPM evidence for completeness but considers market-based evidence more reliable.

Market risk premium, Rp: - The risk premium is the return on the market in excess of the risk-free rate. - Ibbotson Associates' Stocks, Bonds, Bills, and Inflation, 2010 Yearbook reported the risk premium at 6.7%. - Average risk premium re...

AI summary The market risk premium, Rp, is defined as the return on the market in excess of the risk-free rate. Historical data from Ibbotson Associates' 2010 Yearbook indicates a risk premium of 6.7%, while the average reported by investment practitioners in the U.S. and Canada during 2010 was 5.1%.

Q. What are the apparent differences in the ESI capital estimate and the one provided by Synapse? A. The estimate given in the Testimony by Synapse was too general to draw many direct conclusions, but based on the four categories included...

AI summary The response outlines differences between the ESI capital estimate and Synapse's estimate, noting that Synapse's estimate was too general. The responder grouped their detailed estimate into categories to compare and identify primary differences.

Q. Did the initial draft tariff respond to those concerns? A. No. We asked IRs to flesh out the basis for the assumptions and the underlying data but we did not receive any data or any breakdown of the cost components. Attached as Appendix...

AI summary The initial draft tariff did not respond to the concerns raised, as no data or breakdown of cost components was received from the IRs. Appendix C contains the responses provided to ANSS by Synapse.

Q. What is the significance of pressure in relation to labour costs? A. Supervision of Fired Power, Boiler Plants is regulated under the Technical Safety Act and its Regulations. Boilers operating over 15 psi in the province of Nova Scotia...

AI summary The significance of pressure in relation to labour costs is discussed, focusing on the regulation of Fired Power Boiler Plants in Nova Scotia. The response outlines the need for boiler engineers to operate a 2.05 MW CHP plant and estimates the annual labour costs for these engineers.

Debt Risk Debt to finance the construction of the plant also has interest rate risk associated with it. A proponent may borrow debt from a lender with an amortization period of 20 years, however, the interest rate negotiated with the lende...

AI summary The text discusses the interest rate risk associated with debt financing for plant construction, noting that fixed interest rates may not cover the full amortization period. It suggests that the COMFIT could mitigate this risk by allowing price escalations based on the prime lending rate in Canada, and the utility model allows for rate increase applications at the NSUARB.

1. Prices - 1.1. It should be taken into consideration that price inputs used in the model (investment, expenses, tariff) should be placed in 2013-2014 timeframe , since they are currently set for 2011 (development commencement period). -...

AI summary The text discusses the need to adjust price inputs in a model to reflect the 2013-2014 timeframe rather than 2011, and highlights that current inflation in Nova Scotia (2.4% as of December 2010) exceeds the assumed rate of 1.92%, suggesting the use of a 10-year average for more accurate modeling.

7. Conclusions 7.1. The comparison with other jurisdictions (response to information requests from Synapse) should be considered with the LCOE analysis, this is, having into consideration tariff escalation for the revenue side and real pri...

AI summary The conclusion emphasizes the importance of comparing with other jurisdictions in conjunction with the LCOE analysis, considering tariff escalation and real prices for a comprehensive revenue-side evaluation.

7.2. After introducing the aforementioned considerations to the worksheet3 we would obtain the following tariff values for "Large Wind": After Tax Return (year 20) Pre-Tax Return (year 20) Feed in Tariff (year 1) Escalation as of General I...

AI summary This section discusses the calculation of tariff values for 'Large Wind' after considering various factors, including depreciation methods, feed-in tariffs, and escalation based on general inflation. It outlines assumptions related to net generator capacity, energy production, and operating expenses.

Nova Scotia Utility & Review Board FIT Model Op ting Ye era ar 0 1 2 3 4 5 6 7 8 9 10 11 12 Oth er R eve nue s 0 0 0 0 0 0 0 0 0 0 0 0 Inte t R res eve nue 4, 119 4, 119 4, 119 4, 119 4, 119 4, 119 4, 119 4, 119 4, 119 4, 119 4, 119 4, 119...

AI summary The document presents a financial table outlining revenue and expenses for the Nova Scotia Utility & Review Board FIT Model over a 13-year period, showing consistent revenue from interest and total revenue, along with operating expenses and general and administrative costs.

Proposed BIOMASS CHP tariff We would like to see an increase in the proposed rate that reflects the high labor cost associated with boiler engineers. We would like to see the proposed rate for CHP (combined heat and power) biomass generato...

AI summary The Municipality of Clare is requesting an increase in the proposed BIOMASS CHP tariff to account for the high labor costs associated with the requirement of having boiler engineers on site 24/7, suggesting a minimum increase of 2 cents/KWh.

Evidence as Prepared by E3 Analytics 1. The Board has received submissions from numerous interveners over the past months, and each intervener is bringing forward different concerns. Some of these concerns have to do with the access to cap...

AI summary The document discusses concerns raised by interveners regarding access to capital, rate insufficiency, and technical provisions like the fuel adjustment mechanism. It highlights the tradeoff between standardization and customization in feed-in tariff rate design and notes that while the Consultant's submissions are balanced, there are areas for improvement in rates and their design.

Scenarios in $2012 Scenarios in $2012 Value for Steam-Only Shared Value Steam Gross Value for CHP Net Value for CHP $0 $0 $315,790 $0 $0 $3,712,100 $0 $0 $594,138 $0 $0 $57,450 $11,858,678 $592,934 $12,451,612 $655,348 $254,115 $1,161,833...

AI summary The document presents various financial scenarios in 2012, including values for steam-only, shared value steam, and gross and net values for CHP (Combined Heat and Power). The data includes a range of figures, but lacks detailed explanations or context for their significance.

the steps, to the results ofsimilar ratemaking exercises in other jurisdictions and to other concerns such as interest coverage, using the spreadsheet model and inputs to it discussed in our evidence. Each ofthe three steps introduces subs...

AI summary The text discusses the uncertainties in the ratemaking process for COMFIT programs, emphasizing the need for a review of the COMFIT program due to uncertainty about project types and costs. It outlines the challenges in developing representative COMFIT projects, such as biomass CHP, and the difficulty in defining CHP without clear guidelines.

Provide the recommended ANSS rate for biomass CHP As noted in Exhibit B-15, the capital cost estimate, parasitic power and other non-O&M items in the "Value of Steam Only Scenario" were omitted or underestimated. Fully accounting for these...

AI summary The ANSS recommends a final rate of $320/MWh for biomass CHP after revising capital cost estimates and including additional O&M items, which resulted in a lower rate compared to initial estimates. The revised modeling is attached as U-1, Attachment.

Biomass CHP (condensing turbine; new boiler in steam-only scenario in year 10) Assumptions Notes: , Total After-Tax Equity Return After-Tax Internal Rate of Return Debt Loan Balance Interest 9.509 Principal Annual payment Debt Service Cove...

AI summary The document presents a detailed financial analysis table related to a biomass CHP project, focusing on assumptions, debt service coverage ratios, maintenance reserves, and cash flow projections. The data appears to be part of a regulatory proceeding, highlighting financial metrics for evaluation.

Nova Scotia COMFIT Model O tin Ye pe ra g ar Ca le nd Y ar ea r 0 20 10 1 20 11 2 20 12 3 20 13 4 20 14 Oc 3 cu rre nc e Oc 4 cu rre nc e 0 0 0 0 0 0 0 0 0 0 0 0 Bo ok D ci io at ep re n Ca r C sif len da r Y r D cia tio las ica ea ep re n...

AI summary The document presents a table related to the Nova Scotia COMFIT Model, showing financial data across multiple years, including percentages and dollar amounts. The data appears to be related to classifications and categories, such as 'Book Dcioat epren' and 'Calendar Year Dciation Classif eeprenpe 20 r SL -y'.

Scenarios in $2012 r S On Va lue fo ly tea m- Sh e S d V alu tea are m Gr CH s V alu e f P os or CH Ne t V alu e f P or Co t mp on en Sc ari en o On ly Sc ari en o Sc ari en o Sc ari en o Pro jec t d elo t ev pm en $ 42 13 4 , $ 28 0, 28 0...

AI summary The text presents a table with financial data related to scenarios in 2012, including various project development costs, equipment installation, maintenance reserves, and debt servicing. The table includes figures for different scenarios but lacks detailed explanations or context for the data.

Understanding Valuation Metrics for Equity Securities A discussion of various valuation metrics, their practical applications, and their limitations By Terrence Burgess 1 Offered only through certain dealers. 1 Past performance is no guara...

AI summary The text discusses valuation metrics for equity securities, focusing on their practical applications and limitations. It highlights that metrics are most useful for relative comparisons rather than absolute valuations. It also notes that not all companies have earnings, and earnings can be influenced by accounting practices and international differences.

Managing Costs for Ratepayers The current electricity path leaves Nova Scotia dependent on rising international coal and oil prices. This plan seeks to make life more affordable by stabilizing electricity rates over the medium and long-ter...

AI summary The current electricity path makes Nova Scotia dependent on rising international coal and oil prices. This plan aims to stabilize electricity rates over the medium and long-term to make life more affordable for families and businesses.

Utility and Review Board (UARB) The UARB already has responsibility for approving cost recovery for renewable energy projects through the setting of electricity rates. Under the Renewable Electricity Plan, it will take on responsibility fo...

AI summary The UARB is responsible for approving cost recovery for renewable energy projects through electricity rates and will also set and periodically review FIT rates under the Renewable Electricity Plan based on government-established criteria.

Costs and Benefits he transition from imported fuels to renewable electricity and cleaner local fuels will increase power bills in the short term, but offer lower and more stable rates in the long run. Not making this transition would shac...

AI summary The transition to renewable energy and cleaner local fuels will increase power bills in the short term but lead to lower and more stable rates in the long run. Continuing with current practices would expose ratepayers to volatile energy prices and rising costs associated with coal-fired power plants.

4.1 Synapse Model - [29] Synapse led the consultative process with the formal intervenors. Synapse proposed the adoption of a discounted cash flow model used to set feed-in tariffs in Vermont, USA in 2009. Under this model (the "FIT model"...

AI summary Synapse proposed using a discounted cash flow model, similar to one used in Vermont in 2009, to set feed-in tariffs for COMFIT projects. The model was adjusted to fit Nova Scotia's context after stakeholder consultations, and was generally well-received by intervenors despite some challenges to specific assumptions.

5.3 Typical costs for most likely developments [42] In its Closing Submission, the Consumer Advocate characterized the task before the Board in this hearing: The Board has been given a difficult and challenging assignment. It has been inst...

AI summary The Consumer Advocate highlights the challenge of setting fair tariffs for various renewable energy sources, while Synapse outlines its approach to balancing cost and policy objectives in the COMFIT program. Assumptions about typical projects are necessary due to uncertainties in setting fixed tariffs for each resource class.

[189] ANSS, in analyzing these operating costs, made the following comments: 3. Parasitic power losses appear to be absent from the COMFIT calculation and need to be included. ESI has provided these losses as 14% of the gross energy of the...

AI summary ANSS raised concerns regarding the COMFIT calculation, noting the absence of parasitic power losses and suggesting their inclusion. They also challenged Synapse's interpretation of boiler engineer regulations and operating expenses. Synapse acknowledged the 14% parasitic power loss estimate as reasonable but did not delve deeper into the specifics.

ffs. [283] While some of the intervenors challenged a number of the specific input assumptions made by Synapse, the FIT modeling adopted by Synapse was generally viewed favourably by all intervenors. [284] Taking into account the legislati...

AI summary The intervenors generally supported Synapse's FIT modeling, though some challenged specific assumptions. The Board determined FIT and COMFIT tariffs should balance low tariffs with encouraging development. The Board used comparisons to other jurisdictions to assess reasonableness, adopting Synapse's recommended tariffs with some modifications.

Large Wind 8-2-11 no tax Page 1 Nova Scotia COMFIT Model Large Wind (Over 50 kW) Lan d Le ase (14, 400 ) (14 ,676 ) (14 ,958 ) (15 ,245 ) (15 ,538 ) (15 ,837 ) (16 ,141 ) (16 ,450 ) (16 ,766 ) (17 ,088 ) (17 ,416 ) (17 ,751 ) (18 ,092 ) (1...

AI summary The document presents financial data related to the Nova Scotia COMFIT Model and Large Wind (Over 50 kW) projects, including land lease costs, property tax totals, and EBITDA figures over multiple years.

Page 2 Large Wind 8-2-11 no tax Nov a S ia C OM FIT Mo del cot Ca sh Flo w W ork she Bot et: tom Syn e C aps lian om p ce Lar Win ge d n o ta x Res Ac nts erve cou Res s Fu nde d As Pa rt of Ca pita l Co st erve Beg innin g Ba lanc e Up- F...

AI summary The document contains a table with financial data related to the Nova Scotia Community Based Feed-in Tariffs (COMFIT) model, including reserve balances, capital costs, debt service reserves, and other financial metrics. The table appears to outline various financial accounts and their associated figures.

Page 2 Large Wind 8-2-11 taxed Nov a S ia C OM FIT Mo del cot Ca sh Flo w W ork she Bot et: tom Syn e C aps lian om p ce Lar Win ge d, Tax abl e O wn er Ope ratin g Ye 0 ar 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

AI summary The text presents a table titled 'Page 2 Large Wind 8-2-11 taxed' which includes columns related to financial modeling, cash flow, and tax information for a large wind project. The table spans multiple years and includes entities such as Nova Scotia Power (NSP).

Nova Scotia COMFIT Model Depreciation Worksheet: Bottom Synapse Compliance Large Wind, Taxable Owner Ope ratin Yea g r 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 /( s) ome t/( ) Tax Be nefi Liab ility (33, ) (64 ,868 ) (16 ,268 )...

AI summary This document presents a depreciation worksheet related to the Nova Scotia COMFIT Model for a large wind project owned by a taxable entity. It includes financial data over a 20-year period, with figures showing changes in tax benefits and liabilities.

Page 2 Small Wind 8-2-11 no tax Sc CO No otia MF IT M ode l va Ca sh Flo w W ork she et: Bo tto m Sy nap Co se mp Sm lian ce all Wi nd Tax no Inte Res rest on erve s 343 343 343 343 343 343 343 343 343 343 106 106 106 106 106 106 106 106 1...

AI summary The document contains a table with financial data, including interest on reserves and cash flow figures. The table appears to be part of a financial model related to small wind projects, with entries indicating no tax applied.

Page 2 Small Wind 8-2-11 taxed a S ia C Nov cot OM FIT Mo del Ca sh Flo w W ork she et: Bot tom Syn e C aps lian om p ce Sm Win all d T ble axa Ow ner Ope ratin g Ye ar 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

AI summary The text presents a table titled 'Cash Flow Worksheet: Bottom Syn e Capps lian om pce Sm Win all d Tble axa Ow ner' with operating years from 0 to 20. It appears to be related to financial planning for a small wind project, but lacks detailed explanations or context.

Nova Scotia COMFIT Model Depreciation Worksheet: Top Synapse Compliance Small Wind Taxable Owner Ope ratin Yea g r 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Operating Year Calendar Year 0 2010 1 2011 2 2012 3 2013 4 2014 5 2015...

AI summary The document presents a depreciation worksheet for the COMFIT model, specifically for a small wind taxable owner in Nova Scotia. It outlines the operating years from 2010 to 2030, providing a framework for financial tracking and tax compliance.

Page 2 Biomass 8-2-11 85% availability no fuel Nova Scotia COMFIT Model Cash Flo w worksh eet: Botto om Synapse Complian ice 85% A vailability No Fuel Occ 3 urre nce 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Occ 4 urre nce 0 0 0 0 0 0 0...

AI summary The document presents a table related to the Nova Scotia COMFIT Model, focusing on financial data for biomass with 85% availability and no fuel. It includes figures for occurrences, net book value, beginning balance, original book value, and major maintenance costs.

Biomass CHP Cost Scenarios Synapse Compliance 85% Availability No Fuel Capacity I act 013. EBIT DA Less : Int t eres 1,12 7,97 7 (472 ,577 1,12 4,04 7 ) ( 457 ,103 1,12 0,02 8 ) ( 440 ,159 1,11 5,91 6 ) ( 421 ,605 1,11 1,70 9 ) ( 401 ,289...

AI summary The text presents a table with financial data related to biomass CHP cost scenarios under Synapse Compliance with 85% availability and no fuel. The table includes metrics such as EBIT, interest, taxes, and taxable income across different capacity levels.

Page 2 Biomass 8-2-11 90% availability no fuel Nova Scotia COMFIT Model Cash Flov w workshe et: Botton n Synaps e Complia ance 90% / Availabilit / no Fuel Occ 1 urre nce Occ 431 ,441 431 ,020 0 0 0 0 0 0 0 0 0 0 215 ,721 107 ,860 53,9 30 2...

AI summary The text includes a table from the Nova Scotia COMFIT Model related to a biomass project with 90% availability and no fuel, showing various financial figures and cash flow data. The table appears to be part of a regulatory proceeding analysis.

Provide the spreadsheet showing the offsetting adjustments to calculations in the Biomass CHP tariff The purpose of this undertaking is to show our calculations of the effects of two errors in the biomass rate calculations. The first error...

AI summary The document details two errors in the biomass CHP rate calculations. The first error involves the levelized fuel cost, which was corrected from $62 to $56 per MWh. The second error pertains to the heat content of steam, which was adjusted from 1,100 to 1,190 Btu per pound for the steam-only scenario and from 1,100 to 1,240 Btu per pound for the CHP scenario. These corrections resulted in a revised proposed rate of $158 per MWh.

4/12/11 Exhibit K with corrected heat content of steam Nova Scotia COMFIT Model Biomass CHP (condensing turbine; new b ranc e Land Lea se (29, 752) 0 (30, 323) 0 (30, 906) 0 (31, 499) 0 (32, 104) 0 (32, 720) 0 (33, 348) 0 (33, 989) 0 (34,...

AI summary The text presents a table with financial data related to the Nova Scotia COMFIT Model and Biomass CHP (condensing turbine; new b). The table includes figures for land lease, other expenses, property tax, total, and EBITDA across multiple years. This data may be used for analysis and forecasting purposes.

After-Tax Internal Rate of Return 13.03% Nova Scotia COMFIT Model C ash Flow workshee t: Bottom Syr apse U-2 Beginning Balance 0 1,064,394 1,064,394 1,064,394 1,064,394 1,064,394 1,064,394 1,064,394 1,064,394 1,064,394 1,064,394 1,064,394...

AI summary The document presents a financial model related to the After-Tax Internal Rate of Return of 13.03%, including details on reserves and cash flows from the Nova Scotia COMFIT Model. It outlines the breakdown of various reserve funds, such as the Up-Front Maintenance Reserve, Working Capital, and Debt Service Reserve, over multiple periods.

6.1 Allocating the Cost of Steam Production ANSS recommends allocating half the cost of steam production to electricity ratepayers. We have analyzed the impact of this change in the Excel file "Synapse U-6 Steam Cost Allocation." In the st...

AI summary ANSS suggests allocating half the cost of steam production to electricity ratepayers, with a detailed analysis provided in an Excel file. This allocation changes various cost components and results in a total 2012 tariff rate of $217 per MWh.

Table 1. The Impacts of the Changes Analyzed in U-2, U-6 and U-6(a) Change Analyzed Fixed Component ($/MWh) Variable Component ($/MWh) Full 2012 Rate ($/MWh) $/M Stan dard Off er P rice ( Wh) Fixe d Pr ice C nt omp one 100 % 227 .90 227 .9...

AI summary Table 1 presents the impacts of changes analyzed in U-2, U-6, and U-6(a), detailing fixed and variable components of costs and revenues for 2012. The table shows a standard offer price and associated revenue figures, but lacks detailed analysis or argumentation.

Nova Scotia COMFIT Model Synapse U-6 Capital Structure Fixe d Pr ice C nt omp one 100 % 127 .90 127 .90 127 .90 127 .90 127 .90 127 .90 127 .90 127 .90 127 .90 127 .90 127 .90 127 .90 127 .90 127 .90 127 .90 127 .90 127 .90 127 .90 127 .90...

AI summary The document presents a table related to the Nova Scotia COMFIT Model, detailing various financial components such as fixed price contracts, escalating price components, revenue from energy production, and interest revenue across different time periods. It includes numerical data and structures for analysis.

Scenarios in $2012 fo r S On Va lue tea ly m- Gr e f CH s V alu P os or e f CH Ne t V alu P or Rev es F Ene Prod uctio enu rom rgy n Oth 2,08 6,25 3 2 ,086 ,253 2,08 6,25 3 2 ,086 ,253 2,08 6,25 3 2 ,086 ,253 2,08 6,25 3 2 ,086 ,253 2,08 6...

AI summary The text presents a table of revenue and expenses for a scenario in 2012, including figures for revenue from energy production, interest revenue, and total revenue under different scenarios. The data appears to be part of a financial analysis or planning process.

4/12/11Synapse U-6 Parasitic Loads 14% Nova Scotia COMFIT Model Cash Flo w worksh eet: Botto m Synapse e U-6 Para sitic Load s at 14% , , .,000,012 .,000,0.2 .,000,012 .,000,012 .,000,0.2 .,000,012 .,000,012 .,000,012 .,000,012 .,000,012 ....

AI summary The document presents a table related to the Nova Scotia COMFIT Model, focusing on parasitic loads at 14% and financial data. It includes various categories and values, though the exact context and implications of the data are not clearly explained.

Nova Scotia COMFIT Model Depreciation worksheet: Bottom Synapse U-6 Parasitic Loads at 14% Ope ratin g Ye ar 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Cale r Cla ssific ndar Yea r De iatio prec n pe 20-y r SL 30-y r SL r SL 37-y...

AI summary The document presents a depreciation worksheet for the COMFIT Model, focusing on Bottom Synapse U-6 Parasitic Loads at 14%. It provides detailed financial data over a 20-year period, including classifications, depreciation rates, and annual values.

Scenarios in $2012 fo r S On Va lue tea ly m- Gr e f CH s V alu P os or e f CH Ne t V alu P or Rev enue ce ($ Stan dard Offe r Pri /MW h) ice C Fixe d Pr nt omp one 100 % 178 .00 178 .00 178 .00 178 .00 178 .00 178 .00 178 .00 178 .00 178...

AI summary The text presents a table with revenue and cost-related data from 2012, including fixed and escalating components of a standard offer price. The data shows fixed costs at 100% with a value of 178.00 and escalating costs at 0% with a value of 0.00 across various scenarios. The table appears to be part of a financial analysis or regulatory proceeding related to energy pricing.

Produce a Synapse model using Neal Livingston's assumptions – payback in years 15-20 Mr. Livingston requested that Synapse examine what COMFIT electricity rate would be needed to provide CEDIF shareholders with a 13% return and outside inv...

AI summary Mr. Livingston requested a Synapse model using his assumptions to determine the COMFIT electricity rate required to provide a 13% return to CEDIF shareholders and a 20% return to outside investors. The model assumes a 50-50 equity split, leading to a weighted average return on equity of 16.5%, which corresponds to a COMFIT rate of $160 per MWh, $21 higher than the previously proposed rate.

Nova Scotia COMFIT Model Large Wind (Over 50 kW) Synapse U-7 Nova Scotia Comfit Model Large wind (Over 50 kw) 1 Synapse U-7 Rev es F Ene Prod uctio enu rom rgy n 651 ,540 651 ,540 651 ,540 651 ,540 651 ,540 651 ,540 651 ,540 651 ,540 651 ,...

AI summary The document presents a Nova Scotia COMFIT Model for Large Wind (Over 50 kW) using Synapse U-7. It includes revenue and expense data, with revenue primarily derived from energy production and interest, while expenses related to fuel cost are listed as zero.

After-Tax Internal Rate of Return 16.50% Nova Scotia COMFIT Model Cash Flow worksheet: Bottom Sy Synapse U-7 Debt Service Coverage Ratio EBITDA Less: Major Maintenance Reserve Funding Cash Available for Debt Service P&I - 574,809 0 574,809...

AI summary The document presents a financial analysis with an after-tax internal rate of return of 16.50% and includes a table from the Nova Scotia COMFIT Model focusing on the Debt Service Coverage Ratio and related financial metrics over time.

Capital Structure (Sources of Funds 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000...

AI summary The document presents a table focusing on capital structure, with repeated entries of '1,000' across multiple columns. It appears to be part of a financial analysis or modeling exercise related to the COMFIT Model for large wind energy projects in Nova Scotia.

After-Tax Internal Rate of Return 25.00% Nov a S ia C OM FIT Mo del cot Cas h F low rks hee wo t: B otto m Syn e U -8 aps Ope ratin g Ye ar 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

AI summary The document presents an after-tax internal rate of return of 25.00% and includes a table from the COMFIT model, which is used for forecasting and impact tracking. The table outlines cash flows across multiple years, indicating a focus on financial modeling and long-term projections.

Nova Scotia COMFIT Model Depreciation worksheet: Top Synapse U-8 Ope ratin g Ye ar Cale nda r Ye ar 0 2010 1 2011 2 2012 3 2013 4 2014 5 2015 6 2016 7 2017 8 2018 9 2019 10 2020 11 2021 12 2022 13 2023 14 2024 15 2025 16 2026 17 2027 18 20...

AI summary The document presents a depreciation worksheet under the Nova Scotia COMFIT Model, specifically for the Top Synapse U-8. It includes a table spanning from 2010 to 2030, detailing operating and calendar years, though the data within the table is not fully populated.

Provide the recommended ANSS rate for biomass CHP As noted in Exhibit B-15, the capital cost estimate, parasitic power and other non-O&M items in the "Value of Steam Only Scenario" were omitted or underestimated. Fully accounting for these...

AI summary The ANSS rate for biomass CHP is recommended at $320/MWh after adjusting for omitted capital costs, parasitic power, and other O&M items, which were not fully considered in the initial estimate. The revised calculation includes a higher boiler capital cost and additional operational expenses.

Biomass CHP (condensing turbine; new boiler in steam-only scenario in year 10) Assumptions Notes: , G&A Insurance 0 (68,927) 0 (70,250) 0 (71,599) 0 (72,974) 0 (74,375) 0 (75,803) 0 (77,258) 0 (78,742) 0 (80,254) 0 (81,794) 0 (83,365) 0 (8...

AI summary The text presents financial data related to a biomass CHP project, including assumptions for general and administrative expenses, insurance, land lease, property tax, and total EBITDA over multiple years. It also includes details on equity return cash, EBITDA, and various reserve-related financial items.

Scenarios in $2012 r S On Va lue fo ly tea m- Sh e S d V alu tea are m Gr CH s V alu e f P os or CH Ne t V alu e f P or

AI summary The text presents a table labeled 'Scenarios in $2012' with columns that appear to be related to financial or economic modeling, though the content is incomplete and not fully interpretable due to formatting issues.

Darren Hartlen P.Eng Direct: 902 421 7241 E-Mail: [email protected] Nova Scotia Utility & Review Board FIT Model Biomass CHP condensing turbine; Biomass CHP condensing turbine Assumptions Notes: Assumptions: Notes: General Inflation Factor (...

AI summary The document presents a financial model for a biomass combined heat and power (CHP) condensing turbine project, including assumptions about inflation, capital costs, operating expenses, and fuel costs. It outlines the project's net generator capacity, energy production, and various financial inputs such as debt and equity closing costs, interest during construction, and annual operating expenses.

Initial Reserve Account Sizing Property Tax

AI summary The text presents a table header related to the Initial Reserve Account Sizing and Property Tax, indicating the context of financial planning and allocation within a regulatory proceeding.

1 Undertaking U-13: 2 To provide a spreadsheet showing the positive rate of return calculated for CEDIF investors.

AI summary The document requests a spreadsheet showing the positive rate of return calculated for CEDIF investors as part of Undertaking U-13.

Inputs Us d in e Sy na p se L iv ing to s n Ex le am p Ca i ty p ac 1. 5 2 1. 5 M W Ca i Fa ty to p ac c r 3 1 % 3 1 % 3 1 % En er g y 4, 0 3. 4 7 4 3 1. 2 5, 4, 0 3. 4 7 M W h Ra te $ 1 4 2. 1 $ 1 4 2. 1 $ 1 4 2. 1 / M W h Re se rv es $ 1...

AI summary The table presents financial and operational data, including energy usage, rates, reserves, debt rates, and other financial metrics. It includes figures related to capacity, energy consumption, reserves, debt, and other financial parameters. The data appears to be part of a regulatory proceeding related to utility operations and financial planning.

Final calculation of: - Total annual return ($) - Internal Rate of Return (%)

AI summary The text outlines the final calculation of total annual return and internal rate of return, which are key financial metrics used in evaluating investment performance.

Introduction to Feed-in Tariff Rate Setting Approaches Wilson Rickerson Meister Consultants Group

AI summary This document introduces various approaches to setting feed-in tariff rates, authored by Wilson Rickerson of Meister Consultants Group. It provides an overview of methodologies used in determining rates for renewable energy projects.

Rate setting review process - Review of rate setting process - What is the process by which rates are proposed and then implemented? - How are stakeholders consulted during the process of rate setting? - How transparent is the process? - R...

AI summary The text outlines a review of Nova Scotia's rate setting process and models, focusing on stakeholder consultation, transparency, model analysis, inputs, complexity, data utilization, and whether existing models could serve as a starting point for the province.

Rate setting process transparency

AI summary The document discusses the rate setting process transparency, including a figure referenced on page 11. It does not provide specific details about the arguments or entities involved in the proceeding.

Rate setting models: A few examples - Germany. Considered the gold-standard of FIT design. Employs a complex model in a comparatively non-transparent process. - Ontario. Draws on lessons from European feed-in tariffs and shares design char...

AI summary The text compares rate-setting models in Germany, Ontario, and Vermont, highlighting differences in transparency and design. Germany uses a complex, non-transparent model; Ontario uses a confidential model based on European FITs; and Vermont employs a transparent, publicly available model developed through a regulatory process.

Rate setting methodology Ontario Vermont Germany Methodology Discounted cash flow Discounted cash flow Fixed charge rate ("Annuity method") Discounted cash flow:

AI summary The document compares rate setting methodologies across Ontario, Vermont, and Germany, focusing on the use of discounted cash flow and the fixed charge rate (annuity method). The section introduces the discounted cash flow methodology.

The Presentation Outline - A. Feed-in tariffs around the world - B. Rate Setting Process and Methodology - C. A Potential Starting Point

AI summary The presentation outline includes sections on feed-in tariffs globally, the rate-setting process and methodology, and a potential starting point for discussion. It sets the stage for an analysis of international practices and local rate-setting approaches.

Wind Pricing Model Assumptions: Notes: General Inflation Factor (revenue and expenses) 2.50%

AI summary The document outlines the Wind Pricing Model, which includes a General Inflation Factor of 2.50% applied to both revenue and expenses. This factor is a key assumption in the model and is noted in the accompanying table.

• Adjournment Request With respect to the adjournment, this request is not made lightly. However, from the perspective ofthe ANSS, it is more important to get the tariffs right than get them done quickly. All ofthese projects will take som...

AI summary The ANSS requests an adjournment of the hearing to allow for more time to discuss and refine tariff assumptions with Synapse and to address concerns regarding the proposed particulate matter standard for the Biomass CHP COMFIT. The request emphasizes the need for accuracy over speed and highlights the complexity of the issues involved.

File No: BRD-E-R-10 - Matter No. M03632 EXHIBIT LIST UNDERTAKINGS Subject to verification by Chair DATE U# DESCRIPTION BY WHOM FOR WHO DATE DUE April 4, 2011 U-1 To produce the work papers used to analyze Mr. Cherick's Submission. Synapse...

AI summary This document outlines a list of undertakings related to a regulatory proceeding in Nova Scotia. It includes various tasks and deadlines for producing documents and information, such as work papers, spreadsheets, engagement contracts, and equipment estimates, all related to the analysis of submissions and the Biomass CHP Tariff.

- 13. The following rates developed by Synapse formed the basis of the COMFIT proceeding: Generation Facility Proposed Tariff Rate ($/MWh) Wind (50 kW or less) $452/MWh Wind (greater than 50kW) $139/MWh Biomass $156/MWh2 This is the rate p...

AI summary The text outlines proposed tariff rates for various generation facilities developed by Synapse for the COMFIT proceeding in 2012, including fixed and variable components for biomass CHP projects and rates for wind, biomass, run-of-the-river hydroelectricity, and small-scale tidal arrays.

Q. PLEASE DESCRIBE THE PROJECT TEAM'S OVERALL APPROACH TO THE BALANCING OF COSTS AND POLICY OBJECTIVES? A. The regulations governing the development of the COMFIT rates clearly call for them to be cost-based. However, the development of su...

AI summary The project team's approach to balancing costs and policy objectives involves using a cost-based method for COMFIT rates, ensuring they are low enough to encourage development while maintaining financial viability. A three-step ratemaking process was applied, considering capital costs, required revenues, and electric output.

THE PROPOSED BIOMASS TARIFF RATE - 21. While NSDOE does not wish to endorse any particular rate for the proposed tariffs, there are certain aspects of the proposed biomass tariff that it believes warrant additional comment. - 22. First, th...

AI summary NSDOE acknowledges the significant difference between the biomass rate proposed by Synapse and the Alliance's suggested cost-based rate, with extensive evidence and cross-examination on the issue. The Chair of the Board questioned Synapse about potential changes to their rate recommendations based on new information.

Merrick Jamieson Sterns Washington & Mahody BARRISTERS John Merrick, Q.C. Direct Line: (902)429-3178 [email protected] April 29, 2011 VIA EMAIL 25475 Ms. Nancy McNeil Regulatory Affairs Officer/Clerk Nova Scotia Utility and Review Board 1...

AI summary The Consumer Advocate submits that setting tariffs for renewable energy generation in Nova Scotia presents a challenge, as the Board must balance reasonable inducements for generators with fair rates for ratepayers. The submission highlights concerns about selecting a tariff within a range of reasonableness and the potential risks of overcompensation or discouraging participation.

JURISDICTION OF THE BOARD The jurisdiction and obligation of the Board in setting tariffs is to ensure that the tariffs are just. The Board may make from time to time such orders as it deems just in respect to the tolls, rates and charges...

AI summary The document discusses the Nova Scotia Utility and Review Board's (NSUARB) responsibility to ensure that tariffs are just and reasonable. It references a court decision emphasizing that all rates must be fair and not discriminatory. The amendments to the Electricity Act are noted, but the requirement for just rates remains unchanged.

1. Tidal Power Generation Tidal power is still in its developmental stage and the technology is evolving. Proponents for tidal projects accept the necessity to incur developmental costs and must be prepared to absorb the risk of those cost...

AI summary Tidal power is in its developmental stage, and proponents argue that ratepayers should not bear the costs and risks associated with developing the technology. A proposed tidal tariff should be low enough to avoid transferring these costs and risks to electricity ratepayers.

1)RE: Undertaking U-13- Cherniak Consumer Advocate and potential for returns to CEDIF shareholders: As per my written evidence, oral evidence and questions to this witness and Synaspe, we consider the matter of tax breaks for investing in...

AI summary The witness disputes Mr. Cherniak's claims about CEDIF returns, emphasizing that tax rebates are separate from returns and that CEDIFs must be profitable, not just have positive cash flow, to issue dividends. The witness also questions the assumption of continued profitability from years 16-20 without major rebuilds.

Labour Costs - 45. Synapse has estimated that the labour to operate in the steam only scenario is $300,000 and that labour to operate in the CHP scenario is $350,000 resulting in a net labour cost of $50,000. As explained by Mr. Travis, al...

AI summary The document discusses discrepancies in labour cost estimates for boiler operations in Nova Scotia. Synapse estimated higher costs than what is experienced by ANSS members, who operate boilers at lower pressures with a lower annual labour cost. Adjustments to the labour cost estimates are recommended based on local operational realities.

then the sawmill stands to lose money. - 54. If this Board is looking to implement the government's plan by getting shovels in the ground, it is imperative that real costs and accurate costs be used. Ms. Rubin: Would you agree that the clo...

AI summary The document discusses the importance of using real costs in setting rates for feed-in tariffs, emphasizing that accurate capital cost inputs are essential for successful project development. Witnesses stress that cost-based rates are necessary to ensure projects are financially viable and that using theoretical costs rather than practical ones can hinder development.

A LAST THOUGHT: THE NEED FOR A COST-BASED RATE

AI summary This section emphasizes the importance of implementing a cost-based rate to ensure fair and accurate pricing that reflects actual costs, promoting transparency and equitable service delivery.

ANSSSTEAM-ONLYARGUMENT In its submission at paragraphs 47 - 52, ANSS disputes Synapse's inclusion in the biomass rate of only the additional costs of a cogeneration system, above the cost of a steam-only system to meet the sawmill's heat r...

AI summary ANSS disputes Synapse's biomass rate model, arguing that it incorrectly allocates steam generation costs. ANSS claims that Synapse only allocates 55% of steam costs to the steam host, not 100% as misrepresented. ANSS also argues that the proposed biomass COMFIT rate is based on an inconsistent hypothetical scenario that violates COMFIT regulations.

 Cancel or determine by order the correction of rates when they are unjust, unreasonable, insufficient, unjustly discriminatory or preferential (87.1)  Determine and substitute other regulations, time schedules, services or acts to make...

AI summary The text outlines regulatory authority over rate corrections and the Board's interpretive powers. It also notes the Ecology Action Centre's support for Black River Wind Ltd.'s assertion that the Government of Nova Scotia did not adequately participate in the COMFIT proceedings.

The Tariffs Should be Cost-Based - 8. The Consumer Advocate submits that tariffs are not to be "simply" based on recovery of all costs and urges the Board to set the tariffs "low enough to 'squeeze out the fat'" to discourage inefficient o...

AI summary The Consumer Advocate argues that tariffs should be set low enough to discourage inefficient generators and ensure cost recovery, while ANSS counters that setting rates based on real costs is essential for project development and aligns with the Renewable Electricity Plan.

esire to foster the development of COMFIT projects. To balance the two we have proposed the lowest rates that we believe will result a reasonable level of development activity in each resource class. In page 7 of his Closing Argument the C...

AI summary The Consumer Advocate argues that community organizations may benefit from reduced costs through mechanisms like property tax relief or in-kind contributions, suggesting lower tariffs for large wind projects. However, no evidence was provided to support these claims, and the argument is dismissed in favor of Synapse's proposed rates.

4.2 Findings [34] Based on the Board's review, and the model's universal acceptance by the parties in this proceeding, the Board accepts the adoption of the FIT model to determine COMFIT tariffs in Nova Scotia. [35] A number of intervenors...

AI summary The Board accepts the FIT model for determining COMFIT tariffs in Nova Scotia, based on universal agreement among parties. Some intervenors provided feedback on Synapse's proposed tariffs and inputs used in the FIT model, which will be addressed in the remainder of the Decision. The Board has accepted several inputs from Synapse without material challenge.

5.3 Typical costs for most likely developments [42] In its Closing Submission, the Consumer Advocate characterized the task before the Board in this hearing: The Board has been given a difficult and challenging assignment. It has been inst...

AI summary The Consumer Advocate highlights the challenge of setting fair tariffs for diverse renewable energy sources. Synapse emphasizes balancing cost-based COMFIT rates with the need to encourage project development. Assumptions about typical projects are necessary but involve significant uncertainties.

ffs. [283] While some of the intervenors challenged a number of the specific input assumptions made by Synapse, the FIT modeling adopted by Synapse was generally viewed favourably by all intervenors. [284] Taking into account the legislati...

AI summary The Nova Scotia Utility and Regulatory Board (NSUARB) adopts Synapse's FIT modeling approach, balancing low tariffs with encouraging COMFIT project development. The Board sets COMFIT tariffs based on comparisons with other jurisdictions, acknowledging the lack of precedent for assessing their reasonableness.

Large Wind 8-2-11 no tax Page 1 Nova Scotia COMFIT Model Large Wind (Over 50 kW) Lan d Le ase (14, 400 ) (14 ,676 ) (14 ,958 ) (15 ,245 ) (15 ,538 ) (15 ,837 ) (16 ,141 ) (16 ,450 ) (16 ,766 ) (17 ,088 ) (17 ,416 ) (17 ,751 ) (18 ,092 ) (1...

AI summary The document presents a table showing financial data for the Nova Scotia COMFIT Model related to Large Wind (Over 50 kW), including land lease, property tax, and EBITDA figures over time.

Page 2 Large Wind 8-2-11 no tax Nov a S ia C OM FIT Mo del cot Ca sh Flo w W ork she Bot et: tom Syn e C aps lian om p ce Lar Win ge d n o ta x Dou ble D eclin ing 30% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

AI summary This document page contains a table titled 'Page 2 Large Wind 8-2-11 no tax' with a section labeled 'COMFIT Model cot' and other columns, including 'Cash Flow Workshe' and 'Syn e Capps'. The only data provided is a row with 'Double Declining 30%' followed by a series of zeros.

Page 2 Large Wind 8-2-11 taxed Nov a S ia C OM FIT Mo del cot Ca sh Flo w W ork she Bot et: tom Syn e C aps lian om p ce Lar Win ge d, Tax abl e O wn er Maj or M aint Res Fun ded Thr h O tion ena nce erve oug pera s

AI summary The document contains a table with headings related to financial and operational data for a wind energy project in Nova Scotia. It includes terms such as 'Cash Flow,' 'Work She,' 'Botet:tom,' and 'Lar Win ge d, Taxabl e Own er,' suggesting financial modeling and ownership details for a large wind project.

Nova Scotia COMFIT Model Depreciation Worksheet: Bottom Synapse Compliance Large Wind, Taxable Owner Ope ratin Yea g r 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Occ 1 urre nce Occ 2 urre nce Occ 3 urre nce Occ 4 urre nce Expe ns...

AI summary The document presents a depreciation worksheet for a large wind project in Nova Scotia, focusing on the COMFIT Model. It outlines depreciation amounts over a 20-year period, likely for regulatory compliance purposes.

Page 2 Small Wind 8-2-11 no tax Sc CO No otia MF IT M ode l va Ca sh Flo w W ork she et: Bo tto m Sy nap Co se mp Sm lian ce all Wi nd Tax no Ave rage Min imu m 1.72 1.69

AI summary The text appears to be a portion of a financial or accounting table related to small wind energy projects, specifically referencing a 'no tax' scenario. It includes columns such as 'Cash Flow', 'Work Sheet: Bottom', 'Synap Cosemp', 'Smlian ce', 'all Wind', and 'Taxno', with numerical values indicating average minimums. However, the content is sparse and lacks detailed discussion or context.

Nova Scotia COMFIT Model Depreciation Worksheet: Top Synapse Compliance Small Wind Taxable Owner Ope ratin Yea g r 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 State/Provincial Tax 2 0

AI summary The document presents a depreciation worksheet for the COMFIT model related to a small wind taxable owner in Nova Scotia. It includes a table with years and tax information, though the content is sparse and incomplete.

Page 2 Biomass 8-2-11 85% availability no fuel Nova Scotia COMFIT Model Cash Flo w worksh eet: Botto om Synapse Complian ice 85% A vailability No Fuel Inte Du ing Co ion t nst t res r ruc $ 8 6, 6 3 2 $ 3 3 0, 4 25 $ 2 4 3, 9 3 7 Bo i ler...

AI summary The text presents a table from the Nova Scotia COMFIT Model, focusing on financial and operational data related to biomass with 85% availability and no fuel. It includes figures for various costs and efficiencies associated with the biomass project.

Biomass CHP Cost Scenarios Synapse Compliance 85% Availability No Fuel Capacity I act 013. Cas h EBIT DA 1,12 7,97 7 1,12 4,04 7 1,12 0,02 8 1,11 5,91 6 1,11 1,70 9 1,10 7,40 7 1,10 3,00 8 1,09 8,50 8 1,09 3,90 7 1,08 9,20 3 1,08 4,39 3 1,...

AI summary The document presents a table with financial data related to biomass CHP cost scenarios under Synapse Compliance with 85% availability and no fuel considerations. It includes metrics such as cash, EBITDA, and various reserve and maintenance-related figures.

Nancy McNeil - Feed-in Tariffs - Written Submissions fYIO 3G:, 3d- From: Nancy McNeil To: [email protected]; [email protected]; [email protected]; austen [email protected]; bbiewald@synapse-energy .com; [email protected]...

AI summary Nancy McNeil has submitted written submissions regarding feed-in tariffs to a range of stakeholders, including representatives from various organizations and government officials in Nova Scotia.

- THE CHAIR : Thank you. Page 6 NSUARB-BRD-E-R.10 13 from Synapse? 14 MR. REYNOLDS: Mr. Chairman, excuse 15 me; I had two questions I wanted to raise before we have 16 begun. Because I have attended all of the preliminaries 17 to this, tha...

AI summary The Chair acknowledges Mr. Reynolds' questions about the regulatory process for setting rates, referencing Synapse' evidence and the Electricity Act regulations that direct the Board to set rates in certain categories.

proposals we received input from stakeholders in two technical sessions in written comments and in more informal discussions. As a result, the rates we developed changed substantially. We've also reviewed the evidence filed by intervenors...

AI summary The entity provided input from stakeholders through technical sessions, written comments, and informal discussions, leading to significant changes in the proposed rates. They remain confident in their modelling results and urge the Panel to adopt their recommendations based on market data and evidence from intervenors.

DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS THE CHAIR: I think we'll mark the 1 NSUARB-BRD-E-R.10 Page 27 Opening Statement as Exhibit B-16. 2 EXHIBIT NO. B-16: 3 Opening Statement of the Synapse 4 Consulting Team 5 MR. OUTHOUSE: Mr. Cha...

AI summary The document outlines a portion of a regulatory proceeding involving the Synapse Consulting Team's opening statement, with cross-examination initiated by Mr. Merrick, the Consumer Advocate, focusing on the team's report and the concept of a 'reasonable level of activity'.

projects costs that we've seen in the province and 1 NSUARB-BRD-E-R.10 Page 33 that wasn't my understanding of our the job that was 2 presented to us. The government asked for the Board 3 the Act and the regulations call for the Board to d...

AI summary The discussion revolves around the NSUARB's responsibility to set a tariff for each resource class under the Act and regulations, with consideration of reasonable ranges and uncertainties in input assumptions. The dialogue explores whether alternative numbers within a reasonable range could have been selected for the tariff.

- Community Feed-in Tariff? Page 36 NSUARB-BRD-E-R.10 11 Yeah, I wanted to ask MR. MERRICK: 12 the same questions, whether the panel any of the other 13 panel members have any experience in these areas. 14 No? 15 MS. SHAW: No. 16 MR. MERRI...

AI summary The discussion revolves around the panel's experience with capital funding sources, particularly municipal debt and grants, and their involvement in projects related to energy initiatives. Panel members express limited direct experience with financing and contract negotiations.

- all you can think of? Page 64 NSUARB-BRD-E-R.10 5 there would not be large uptake on a COMFIT tariff by 6 municipalities. 7 And then we looked at the government's 8 target of 100 megawatts and we said, you know, setting the 9 rate at a c...

AI summary The discussion revolves around the feasibility of a COMFIT tariff for municipalities and the challenges of achieving a 100 megawatt government target. Concerns are raised about setting rates at a premium to entice participation and the risks involved in community-led energy projects.

based organization? 1 MR. BIEWALD: Well, I think we 2 3 4 subsidies and so on. That's indeed different from 5 Heritage Gas. 6 7 8 9 commercially viable, but is subject to all sorts of 10 11 12 that it's completely apples and apples. 13 MR....

AI summary The text contains a partial transcript of a regulatory proceeding with participants discussing financial viability, subsidies, and the availability of capital. Key discussion points include the need for reasonable financial returns and the commercial viability of projects.

- THE CHAIR: Sure. We'll take a 15- - minute break. So it's just past 11:00, so we'll come back - at just after 11:15. - Upon recessing at 11:01 a.m. - Upon resuming at 11:24 a.m. - THE CHAIR : Mr. Merrick, the fact that - Ms. Rubin is the...

AI summary The discussion involves the potential impact of tidal power projects on electricity rates, with Mr. Merrick referencing calculations by Mr. Chernick that suggest a significant increase in ratepayer costs if many tidal projects are implemented.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS or $210 per megawatt hour, and Cape Breton Explorations NSUARB-BRD-E-R.10 Page 121 - has said that our proposed rate of 156 is perfectly

AI summary The document references a proposed rate of 156, which has been discussed in the context of a regulatory proceeding, likely involving cost considerations and rate design. The mention of 'NSUARB-BRD-E-R.10' suggests a formal regulatory process is underway.

- acceptable. - And so if we need to go back and - revisit the tariff we would certainly look into this and - adjust a number of our assumptions. But we don't think - that we'd end up coming out with a rate that was radically - different b...

AI summary The discussion revolves around revisiting a feed-in tariff, considering market data from Vermont, Ontario, and Nova Scotia Power Inc.'s biomass projects in 2010. The speaker mentions adjusting assumptions based on new data and suggests that the rate would not be significantly different from existing rates.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MS. RUBIN: Right. Because that risk Page 126 NSUARB-BRD-E-R.10 1 MS. RUBIN: Okay. Now, that table is 2 a capital cost comparison of the condensing extracting 3 facility that has been costed b...

AI summary The discussion revolves around a capital cost comparison of a condensing extracting facility, with differing opinions on the feasibility and cost-effectiveness of the project. Ms. Shaw admits to not thoroughly analyzing the table, while Mr. Keith argues that market metrics support the current rate and that the Marwood project is too expensive to base a feed-in tariff on.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MR. KEITH: That's correct. 1 NSUARB-BRD-E-R.10 Page 161 MS. RUBIN: changed the one 2 variable? 3 MR. KEITH: That's correct. 4 And then we looked at the labour cost, 5 the change in labour cos...

AI summary The discussion revolves around the calculation of a feed-in tariff rate, which was determined to be $330 per megawatt hour based on assumptions and market data. However, this rate is compared to lower rates in other regions, such as Ontario and Vermont, raising concerns about its feasibility.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS reasons for doing so; what are the other policy factors to Page 188 NSUARB-BRD-E-R.10 14 overpayment that we had just done by simply making an 15 assumption that all of the projects in Vermon...

AI summary The discussion revolves around the rate-setting process in Nova Scotia, with a focus on the costs in the jurisdiction rather than comparing rates in other regions. The conversation also touches on biomass power bids and tariff negotiations in Ontario, particularly involving CHP projects.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS fact to inquire about? When size of the project is a risk 1 NSUARB-BRD-E-R.10 Page 201 factor, would you not inquire about the size of the 17 has ample record before it on what Heritage has a...

AI summary The discussion revolves around Heritage Gas's construction cost risks, its duty to serve the entire province, and the potential risks associated with serving large industrial loads first. The conversation also touches on the company's past failures and the need for a thorough understanding of risk factors in determining a return on equity.

into small wind were reliable. 1 NSUARB-BRD-E-R.10 Page 225 So in the model that I developed, it 22 MR. LIVINGSTON: And I think what I 1 Page 232 NSUARB-BRD-E-R.10 said to you is most of the in the conversation I had 2 with both of you I t...

AI summary The discussion revolves around a model developed by Mr. Livingston, which estimates costs and revenue for small wind projects. He mentions using a 20% figure in his calculations, which he acknowledges may be difficult to achieve. Mr. Rickerson notes he has not had the opportunity to compare the numbers side by side in the spreadsheets.

face of that uncertainty, we could do one of two things. we felt was a reasonable level that we thought would We could set the rates at sort of what

AI summary The text discusses the uncertainty in setting rates and mentions considering a reasonable level for setting them.

probably produce projects, or we could bump the rates up 1 NSUARB-BRD-E-R.10 Page 239 much higher in an effort to be certain that we produce a 7 of set suggested rates in a theoretical world. They have 8 to match the real world of what it'...

AI summary The discussion highlights challenges in securing equity for projects in Nova Scotia compared to other regions like Vermont, emphasizing differences in capital culture and the difficulty of raising funds in Nova Scotia.

- But as from the rate setting side, - I don't see that we have any other option to address the - question of whether SDIFs are will work or not, than to - simply establish what we believe is our reasonable rate - that's right in line with...

AI summary The discussion centers on the feasibility of Small Developer Incentive Funds (SDIFs) and the potential risks to small shareholders if the Board sets rates that do not account for the true cost of outside equity. Concerns are raised about whether SDIFs can be viable under current rate structures.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS it. SDIFs are great." They've been holding, you know, 1 public information sessions before this hearing, but 20 directions within the range of what seemed reasonable, our 21 final rate seemed...

AI summary The discussion centers on the feasibility of borrowing money at high interest rates and the cost of equity for a project. Mr. Livingston suggests running a model based on assumptions that include a 20% interest rate during construction and a cost of equity between 20% and 30%, despite disagreements with these assumptions.

we're actually not clear what government's ultimate plan Page 262 NSUARB-BRD-E-R.10 8 Board is being asked to do whether or not this is going to 9 make have any kind of viability for the SDIF investor 10 because the SDIF investor is a very...

AI summary The text discusses uncertainty regarding the government's ultimate plan and highlights concerns about the impact of rate-setting on SDIF investors. The Board is not being asked to assess the viability of the SDIF investor, which operates under different rules than typical investors.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS However, that biomass project would be 1 significantly less expensive than a 50-kilowatt wind 2 turbine, which was the small wind that we modeled. 3 Okay, thanks. MR. SIMPSON: 4 Again, accord...

AI summary The discussion centers on the cost comparison between a biomass project and a 50-kilowatt wind turbine in Nova Scotia. The proposed biomass electricity rate is higher than in Ontario and Vermont, but the speaker argues that the rate is consistent when accounting for economies of scale and subsidies in other jurisdictions.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS You know, I'm a fisherman. You want 1 NSUARB-BRD-E-R.10 Page 301 to find good bait, you want to cast it out there and get 2 groups may be bringing to the table are being addressed, 3 vis-à-vi...

AI summary The discussion centers on the NSUARB's consideration of entities involved in projects and the evaluation of Mi'kmaq issues, including economic, social, and political factors, prior to setting rates. The conversation also touches on the importance of understanding potential project structures and financing challenges.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MR. RICKERSON: A pull of capital. 1 NSUARB-BRD-E-R.10 Page 311 MR. CHRISTMAS: Okay. And a 2 rate? 3 MR. RICKERSON: Correct. These are 4 all per megawatt hour. 5 MR. CHRISTMAS: Yeah, that's ri...

AI summary The discussion revolves around the impact of rate-setting on Mi'kmaq participation in large wind projects, with Mr. Christmas questioning how a marginal rate improvement can serve as a game changer without additional support like loan guarantees. Mr. Rickerson responds that setting rates to guarantee participation is outside their purview and highlights differences in assumptions between Nova Scotia and Ontario.

Development Corporation? 1 Page 336 NSUARB-BRD-E-R.10 Minas Basin Pulp & Power? 17 It's not becoming clear to me, from what Mr. Biewald was 18 saying, whether or not you did have that conversation with 19 government to clarify that this re...

AI summary The discussion revolves around whether the Development Corporation had conversations with the government regarding the scope of its activities. It also touches on the possibility of setting more tariff rates, with the responsibility seemingly resting with the government.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS individual shareholder is there some projection of how 1 NSUARB-BRD-E-R.10 Page 353 much that might result in for that individual? 2 MR. RICKERSON: I guess it goes back 3 to our discussion ye...

AI summary The text includes a portion of a regulatory proceeding involving the NSUARB, where a discussion takes place about the impact of a wind project on individual shareholders and the conversion of operating expenses to annual required revenues, referencing Exhibit C and the Renewal Electricity Plan.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS service is generally comprised of the power to run pumps 1 NSUARB-BRD-E-R.10 Page 361 and fans. I don't believe that for 100 megawatt oil fired 17 your statement, you repeat the Renewable Ene...

AI summary The text discusses a legal discussion involving rate-setting authority and concerns about potential challenges to the Supreme Court's authority in Nova Scotia. It references a proceeding involving the NSUARB and mentions concerns raised by Mr. Reynolds regarding the impact of legal actions by external counsel.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS factor of one of their turbines whether they're talking Page 380 NSUARB-BRD-E-R.10 1 say, may want to have a chat about this. 2 MR. RICKERSON: I just with the 3 adjustment suggested of that g...

AI summary The discussion revolves around a rate adjustment calculation, with a 6% difference leading to a $36 per megawatt hour change. There is also a mention of small wind turbines and metering on the low or high voltage side, though details are not fully explored.

- Bloomberg New Energy Finance Index, turbine index. 1 Page 416 NSUARB-BRD-E-R.10 MR. PYNN: Okay. So you didn't speak 11 MR. RICKERSON: where a lot of 12 these questions seems to be leading is couldn't 13 ultimately, I'll take a step back...

AI summary The discussion revolves around the final rate for turbines, considering various inputs that can influence the rate within a reasonable mid-range. The speaker references Ken Wheeler's comments on the small wind rate and suggests that the large wind rate could be slightly lower. Sensitivity analyses were conducted on multiple variables within the model.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS So if someone has a field of four 12 1 NSUARB-BRD-E-R.10 Page 449 and a half kilowatts is that or let's say a field of 8 THE CHAIR: I did that. I'm sorry. 9 MR. BIEWALD: That it doesn't that...

AI summary The discussion centers on regulatory arbitrage opportunities between projects under 50 kW and larger ones, referencing evidence from the Ecology Action Centre and E3 Analytics. The Chair refers to a rate solution proposed in Exhibit B-14, which is being reviewed by Mr. Rickerson.

- administrative burden. Page 486 NSUARB-BRD-E-R.10 22 MR. DEVEAU: Tariff terms. It talks DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS NSUARB-BRD-E-R.10 Page 489 1 here about terms and conditions under which payments are

AI summary The text includes a reference to 'tariff terms' and mentions 'DICTUM DIGITAL INC.' and 'CERTIFIED COURT REPORTERS' in the context of a regulatory proceeding. It also includes page numbers and a document identifier.

- tariff. Page 490 NSUARB-BRD-E-R.10 9 MR. DEVEAU: And that's one issue 10 in particular, they're saying that they'd like to see an 11 increase for the higher labour costs associated with the 12 boiler engineers in relation to CHP. And the...

AI summary The discussion centers on the need to increase rates to account for higher labour costs related to boiler engineers required to be on-site 24/7 under legislative requirements for CHP systems. The Sawmillers Association has raised concerns about the classification of facilities and the applicability of these requirements to existing steam-only plants.

anything that has been put to you that would cause you to 1 NSUARB-BRD-E-R.10 Page 511 change your overall recommendation in any of this rates? 2 MR. KEITH: No, and I think on the 3 specifically on the point of biomass, if we were to go 4...

AI summary The discussion revolves around the biomass rate and the need to revisit it based on market data. The speaker emphasizes the importance of considering evidence from various stakeholders and the need to ensure the rate aligns with market realities, particularly in contrast to the clearer cost picture for large wind technologies.

Page 534 NSUARB-BRD-E-R.10 1 project financing assumptions. 18 are very confident that we have provided strong and 19 reputable information to assist the Board in making its 20 decision for the biomass CHP COMFIT rate. 21 Thank you. 22 MS....

AI summary The text discusses the biomass CHP COMFIT rate and includes a cross-examination regarding the distinction between COMFIT and FIT. The discussion involves a question about whether biomass qualifies as a FIT and the lack of differentiation in treatment between sawmill operators and wind energy.

- percent. 1 Page 570 NSUARB-BRD-E-R.10 If you'd set it back in January of 12 MR. SIMPSON: The 9.5 percent. 13 MR. TRAVIS: Well, you're talking 14 about debt and equity. We're suggesting that there can't 15 be any debt in the project at al...

AI summary The discussion revolves around the equity and debt structure of a project, with a focus on the 13 percent equity assignment proposed by Synapse. There is a concern about fuel supply risk and its impact on ratepayers and developers, with suggestions for a mechanism to adjust costs based on market conditions.

- bit of a variability there. - And like Mitch said, the rate that - we're proposing here is based on 60 percent, which is - pretty well max when you include you consider the fact - that we've got to take the kilns out of the kiln, unload...

AI summary The speaker discusses the proposed COMFIT rate based on 60% utilization, acknowledging that going below this level could have negative financial impacts. They argue that the rate should be set for normal operations rather than worst-case scenarios, ensuring it is fair for ratepayers.

n of a recommended rate - accounting for the adjustments. - And maybe that's a question you can - DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS ask the panel. I don't know. Having heard it takes eight - weeks to do a study I don't know if...

AI summary The discussion revolves around the lack of a recommended rate and the challenges in accounting for adjustments. There is concern about the timeline for completing studies and the limited time available for the proceeding. An extension was requested but was denied, contributing to the current gap in information.

- evidentiary issues. 1 Page 604 NSUARB-BRD-E-R.10 THE CHAIR: Yeah, but we started this 2 process in October. 3 MS. RUBIN: But we didn't have the 4 capital cost information because the first draft came in 5 based on an EPA study from 2007,...

AI summary The discussion revolves around evidentiary issues in a regulatory proceeding, specifically the lack of capital cost information due to delays in retaining experts and reliance on outdated studies. The Chair requests an approximation of the new proposed tariff to replace the existing rate of $339/MWh.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS some cases you have to a million dollars on a system NSUARB-BRD-E-R.10 Page 615 impact study, you can identify these kinds of constraints 19 It's a factor. I think the specific 20 list that y...

AI summary The discussion focuses on the challenges and risks associated with grid connection in biomass rate analysis, with the speaker acknowledging the existence of such risks but stating that they did not lead to significant adjustments in the analysis. The conversation also touches on the distinction between equity and debt considerations in project financing.

April 4, 2011 Hearing opens 1 B-22 Opening Statement of Paul Chernick 834 April 4, 2011 PAGE NO. U-1 To provide the work papers used to analyze Mr. Chernick's Submission 59 U-2 Revised - To provide the spreadsheet showing the offsetting ad...

AI summary The document outlines various exhibits and submissions related to a regulatory proceeding on April 4, 2011, including work papers, contracts, equipment estimates, and Synapse models used in the analysis of a Biomass CHP Tariff and related submissions.

recourse financing. Page 638 NSUARB-BRD-E-R.10 8 MR. OUTHOUSE: Well, I'll try again; I 9 put it badly. 10 My understanding of your evidence 11 and I'm referring in particular to page 9 and because 12 there are no lines but there's a paragr...

AI summary The discussion revolves around the effectiveness of an index, specifically the CPI diesel combined index, in supporting a 15-year loan. The speaker argues that the index is ineffective and not a material means of supporting such a long-term loan, citing B&CO's experience and providing an analogy from a current project with an indexed power price.

- exciting to see that it's community-based. I mean your - intent is to make sure that you know, you're not trying - to get the lowest cost per kilowatt, you're trying to get - a reasonable cost per kilowatt but incentivize the - community...

AI summary The discussion highlights concerns about setting rates for community-based energy projects, emphasizing the need to balance cost-effectiveness with community benefits. There is a caution against setting rates too low, which could lead to negative consequences for the community if plants are built at low rates. The speaker also clarifies that the CHP rate is not community-based, despite some assumptions.

- biomass tariff I'm aware of, and I'm trying to think of a - reason why, if that's the only type of project that's - available, the ratepayers in the province should be asked - to pay that sort of a price. - MR. HAYES: Yes, sir. I underst...

AI summary The discussion revolves around the potential risks of setting a biomass tariff based on rates from other provinces like Vermont and Ontario, with concerns that low rates could lead to project failures, which would negatively impact the local community.

primarily - what Mr. Bodington's business is, is taking ownership of - those businesses that fail, I think that's dangerous for - the community just as much as putting in a rate which is - very high. - And let me just say one more thing -...

AI summary The discussion highlights concerns about the impact of high rates on failing businesses and the need for cost-based rates. It mentions the cost implications of small-scale energy projects and the higher rates for small wind and tidal energy compared to proposed rates.

- there's no question that those were markers that were - used. - Synapse, as you know, also looked at - the Nova Scotia scenario and what has been bid here and - large project being executed, others not so large that are - still under con...

AI summary The discussion refers to Synapse's analysis of Nova Scotia's energy scenario, including bids and projects, and mentions a comparison to Vermont and Ontario rates. Mr. Hayes notes he only looked at these numbers in passing and that Synapse used them for reference in setting rates.

cost per megawatt, we've got a problem here because this isn't going to be it. THE CHAIR : What you're telling us is that this technology cannot be built for what regulators and governments in other jurisdictions have decided is a fair pri...

AI summary The discussion highlights concerns about the cost of technology relative to what regulators and governments consider a fair price for ratepayers. The Chair questions whether the technology can be built at an affordable cost.

- about that because you did use a large company. 1 Page 678 NSUARB-BRD-E-R.10 MR. BODINGTON: AES is one of the 7 higher valuation ratio that I think brings it into the 8 zone of what's realistic in this situation. 9 And then also falls in...

AI summary The discussion revolves around the use of the enterprise ratio in calculating the cost of capital for power plants. Mr. Bodington defends its frequent use, citing its presence in finance textbooks and its application in determining the value of power plants based on EBIDA multiples.

need? 1 NSUARB-BRD-E-R.10 Page 681 minutes. 2 THE CHAIR: Okay, 20 minutes. We'll 3 be back at 20 past 10. 4 Thank you. MS. RUBIN: 5 Upon recessing at 10:01 a.m. 6 Upon resuming at 10:20 a.m. 7 Mr. Outhouse? THE CHAIR: 8 MR. OUTHOUSE: Thank...

AI summary The text includes a portion of a regulatory proceeding with a discussion on the enterprise ratio and its use in calculating the cost of capital. The testimony involves Mr. Bodington and Mr. Outhouse, with Mr. Bodington offering to provide algebraic details on the enterprise ratio and referencing his published work in the Appraisal Journal.

around somewhere in the 14 cent range. 1 Page 698 NSUARB-BRD-E-R.10 export? 15 owner is actually sitting in the back of the room, Mr. 16 Creelman. 17 MR. OUTHOUSE: And the Alliance 18 Yes. MR. TRAVIS: 19 MR. OUTHOUSE: Nova Scotia 20 Sawmil...

AI summary The text discusses a proceeding involving Nova Scotia Utility and Review Board (NSUARB) and the formation of an alliance by sawmills to ensure FIT rates are set at a level that makes electricity production and sale worthwhile. The discussion includes references to cross-examination and evidence related to granularity.

hearing. Page 706 NSUARB-BRD-E-R.10 2 you said yesterday, that under a rate like that your 3 estimate is that four of the six members of the Alliance 4 would probably develop projects. 5 MR. TRAVIS: Yeah. I mean, it's 6 really difficult fo...

AI summary The text discusses a hearing where Mr. Travis estimates that three or four out of six members of the Alliance might develop projects under a certain rate, though he acknowledges the speculation due to uncertainty around the mill's status in Nova Scotia.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS include the purchase of that parasitic power load. And so 1 I just put that caveat to that. 2 MR. OUTHOUSE: Okay. Would it be 3 close to 12,600? 4 MR. TRAVIS: Yes. Provided you, you 5 know, t...

AI summary The discussion revolves around the financial implications of a parasitic power load purchase, with estimates of a $2 million annual difference per plant and potential long-term impacts of $40 million per plant over the project's lifetime.

- adjust that. You should be able to see that competition - coming in year two. You get to adjust it, so you should - see that when the prices come in and you see what the - average rate is coming in, that should be built in there. - That...

AI summary The text discusses the importance of adjusting rates to account for competition and market fluctuations, referencing a pulp chip price index and the risks of fixing prices over long periods without adequate compensation for changes in wood prices. It also mentions the potential consequences for projects if adjustments are not made.

- MR. TRAVIS : I tried very hard to find - I tried to do that. I called suppliers and I tried - because I wanted to present something that was better. - But at the end of the day, I couldn't find anything that - was sufficient to be able t...

AI summary The speaker discusses the challenges of finding adequate data to cover risk in biomass cost reporting, emphasizing the need for a formula to adjust rates based on market costs and the potential value of establishing a biomass index for future reference.

- be. Page 750 NSUARB-BRD-E-R.10 1 MR. TRAVIS: Yes. 2 MS. RUBIN: Mr. Chair, we could take 3 that as an undertaking. 4 MR. TRAVIS: Yeah, we certainly could. 5 I mean, I'd be happy to do that. I don't think the 6 formula's going to be overly...

AI summary The text includes a dialogue between Mr. Travis and the Chair regarding an undertaking to provide a formula for reopener of the Biomass Tariff. The discussion concludes with appreciation for the presentation and the excusal of participants.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS that got that changed into a feed-in tariff which removed 1 NSUARB-BRD-E-R.10 Page 779 the CEDIF restrictions. I just wondered if you or the 22 DICTUM DIGITAL INC. THE CHAIR: Nova Scotia Powe...

AI summary The text discusses a regulatory proceeding involving Nova Scotia Power and various interveners, including questions about a proposed rate of 21.3 cents per kilowatt hour. The discussion includes references to COMFIT and the limitations of evidence presented, as well as the late intervention status granted to a party.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS energy problems, which most of them had. And St. F.X. has 1 Page 798 NSUARB-BRD-E-R.10 we've looked at that. We are going to move the plant out 12 the edge of town. 13 MR. COADY: Yeah. 14 THE...

AI summary The discussion involves the relocation of a plant to the edge of town and clarification on revenue streams, specifically the electricity production and steam revenue, with adjustments made to electric rates based on sensitivity analysis at different biomass and kilowatt-hour prices.

Page 812 NSUARB-BRD-E-R.10 NSUARB-BRD-E-R.10 Page 813 Page 816 NSUARB-BRD-E-R.10 1 MR. GIROUX: Well, we could have an 2 off the page discussion about that, but I guess you could 3 say that, you know, when you look at the newspaper every 4...

AI summary The discussion highlights community concerns about equitable treatment in utility returns, suggesting that communities expect similar returns on investment as seen in other utilities. The speaker argues that communities should be offered comparable returns, along with benefits like increased tax base, job creation, and energy security.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS On page 15 in line 9 to 11, you 1 suggested that lower interest rates are available than 16 because you're talking about individual investors don't 17 seem to be in that category, from our vi...

AI summary The discussion revolves around the argument that lower interest rates may not be available to individual investors and the impact of tax breaks on investment decisions. The speaker suggests that the portrayal of how investments work may not align with the actual situation and emphasizes the need for justification beyond statements to influence the Board's decisions on rates.

- will rise and fall, and you want to have a certain amount - in there because there will be rainy days. - There will be times when a bill comes - in. There will be times when the wind doesn't blow as - much and you have to pay your debt p...

AI summary The discussion highlights the need for a reserve fund to manage financial fluctuations in a small wind project, particularly due to variations in revenue from wind generation and the need to cover debt payments during low-revenue periods. It compares this to standard cash working capital practices.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS is, if I were to tell you that I agreed with Mr. Pynn's 1 NSUARB-BRD-E-R.10 Page 883 comment that outside equity is looking for in the range of 2 20 to 30 percent, do you see that as being cr...

AI summary The text is a transcript excerpt from a regulatory proceeding, discussing equity percentages in a project and referencing a filing by E3 Analytics on behalf of the EAC and NovaSea. Mr. Chernick comments on the credibility of equity percentages mentioned by Mr. Pynn and references a previous project's return rate.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS By NSPI new construction I was talking 1 NSUARB-BRD-E-R.10 Page 911 about construction of wind or possibly small hydro. And 2 for the wind, we have three projects that NSPI has 3 completed, e...

AI summary The discussion centers on the COMFIT rate eligibility and potential unfair damages to stakeholders. Mr. Chernick notes that eligible groups face significant barriers to participation, including lack of capital for Bands, high costs for universities, and disinterest from municipalities.

April 7, 2011 Questions from Mr. Doehler 1014 Questions from Mr. Deveau 1017 Questions from The Chair 1022 Further Cross-Examination by Mr. Outhouse 1029 Further Cross-Examination by Mr. Reynolds 1035 Further Cross-Examination by Mr. Towse...

AI summary The document outlines various questions and requests raised during a regulatory proceeding on April 7, 2011, including requests for engagement contracts, equipment estimates, spreadsheet calculations, and Synapse models related to ANSS and biomass CHP. It also includes requests for corrected documents and tariff approximations.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS Christmas' point, it is in our budget today, a Mi'kmaq 1 ecological knowledge study. Not particularly relevant to 9 on walking filings through the permitting process, some of 10 that can be d...

AI summary The text discusses the financial aspects of tidal energy projects, including cost components, return on equity, and financing mechanisms. It also touches on community involvement, taxation jurisdiction, and the role of municipal support in the project.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS at Watts is 8 percent lower than the Synapse proposed 1 rate, would that be not accurate now, with that new 2 information? 3 MR. CHERNICK: Well, the rate 4 comparison is still the same. Given...

AI summary The discussion revolves around rate comparisons, the potential financial impact of a successful green energy program on Nova Scotia ratepayers, and the economic benefits of installing 100 megawatts of green energy. The witness, Mr. Chernick, provides insights on rate differences and acknowledges not having calculated the economic benefits of the green energy projects.

membership first. 1 Page 1054 NSUARB-BRD-E-R.10 Scotian Windfields, Mr. Roscoe? 2 within caucuses and, you know, directly with members. 3 MR. ROSCOE: Okay. The 2.7 cent per 4 kilowatt hour, can you comment on what that what is 5 included i...

AI summary The text discusses a conversation between Mr. Roscoe and Mr. Levy regarding the components of a 2.7 cent per kilowatt hour rate, including routine O&M, insurance, land lease, and the distinction between hard and soft costs. Mr. Levy explains that the data provided likely only covers hard costs and not soft costs, which vary by region and owner.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS Upon resuming at 2:03 p.m. 1 NSUARB-BRD-E-R.10 Page 1077 MR. OUTHOUSE: Mr. Chair, during the 13 MR. VOGEL: tariffs in general, 14 yeah. 15 THE CHAIR: Associated issues? 16 MR. VOGEL: Exactly....

AI summary The document contains a portion of a regulatory proceeding in Nova Scotia, featuring an opening statement by Mr. Toby Couture, who has submitted comments on the tariff submitted by consultants and is prepared to answer questions on various issues related to the analysis and financing of the tariffs.

- is of a risk adjusted rate of return. - If I'm investing in a GIC in Canada, I - can currently expect about 3.3 percent over 10 years for a - 10-year GIC. - Now, compare that to the risk involved - in pulling together the financial resou...

AI summary The discussion highlights the higher risk associated with renewable energy projects compared to low-risk investments like GICs, arguing that a 4% rate of return for CEDIF is too low given the risks involved. The speaker emphasizes that returns should reflect the level of risk taken.

- prepared to allow states to set cost-based rates. And - they've recently made a ruling on that. - But as I mentioned, it's a fairly new - development and by and large, states have not been doing - that. - MS. RUBIN : Would you agree that...

AI summary The discussion focuses on the importance of setting rates based on costs to encourage successful project development, particularly in the context of feed-in tariffs and biomass CHP projects. Accurate input costs, especially capital costs, are highlighted as essential for deriving cost-based rates.

they're currently structured, they should be adequate - DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS to attract investors to the market, both community-based and other individuals in municipalities. - MR. LIVINGSTON: In respect to your -...

AI summary The discussion focuses on concerns regarding tidal power's higher tariff and the potential risk to ratepayers due to the technology's unproven longevity. Mr. Livingston questions the Board's jurisdiction and the appropriateness of including tidal power in rate decisions, while Mr. Couture highlights the higher costs and doubts about the technology's durability.

- the moment CB Explorations and it came under that - the Board tended to say that there was significant rate - risks and that they should come back once they had it - figured out better. - That's I guess my reference for making - my point...

AI summary The discussion revolves around the legal considerations of setting tariffs under the regulations, with a focus on the risks involved for ratepayers due to the small scale and limited impact of electricity production from small turbine units.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS So there's significantly higher risk, 1 and that risk means that the investors that are investing 11 regulated utilities that have the right to bring that 12 forward as evidence when they mak...

AI summary The discussion highlights the risk associated with regulated utilities presenting evidence for rate increases, specifically referencing Nova Scotia Power's potential need to increase procurement costs. It also clarifies the current structure where municipalities generate their own power but primarily purchase from Nova Scotia Power.

April 7, 2011 U-14 To provide the success rate of the RFP Projects (NSPI); also to indicate which Mr. Chernick understands failed and to identify which projects were completed by NSPI 975 U-15 To confirm from data on Capacity Factor from N...

AI summary The document discusses a proceeding on April 7, 2011, involving a request to provide the success rate of RFP Projects by NSPI and to identify which projects failed or were completed. It also includes a discussion about handling confidential information from wind proponents during the hearing.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS wind producers is how they structured their project, 1 NSUARB-BRD-E-R.10 Page 1223 whether they did it by a debt or equity and, if so, what 2 ratios, what their cost of debt was, what their r...

AI summary The discussion centers on the need for the NSUARB to understand the debt structure and projected returns of wind producers, as this information is crucial for determining rates that support economic development and activity. The confidentiality of this data is a concern.

the project will actually make a return. - entertain that, has turned down applications that we've - put forward in that. I know that they've turned down - other people in a similar way. NSPI won't entertain those - kind of applications. -...

AI summary The discussion revolves around equity considerations in rate-setting, with Mr. Livingston arguing that equity is tied to the cost of equity, which influences rates. Mr. Doehler challenges the relevance of equity to the rates proceeding, questioning the evidence provided.

- go down because of the cost of equity going down, one of - those drivers can come from government playing a role. - I also wanted to say that I find - Mr. Pynn's evidence very interesting because our situation - as Black River Wind is th...

AI summary The speaker discusses the impact of government involvement on the cost of equity and highlights alignment with Mr. Pynn's evidence regarding financial realities. They emphasize the importance of a strong renewable energy policy to foster economic development and reduce risk for ratepayers, suggesting the province is not currently getting it right.

may have, and to encourage and stimulate community 1 organization ownership, then arguably it may require a 2 higher tariff. But then how does the Board do that 3 without giving such a high tariff that the lambs the 4 wolves come in and ea...

AI summary The text discusses concerns about the Board's ability to set appropriate tariffs without creating incentives for market exploitation, and highlights the lack of government involvement in policy development. It suggests that government should take an equity role through industrial finance funds to ensure fair outcomes.

- there's a significant upside to investing in the cutting - edge of something new, just as an outside equity party - thinks that they have the right to have a large upside as - well. - I mean, I was personally kind of - shocked when I got...

AI summary The speaker expresses surprise at the high return expectations (30-50%) from outside equity investors in energy projects, noting that such high returns are often not justified. The discussion highlights concerns about the financial structure of projects and the need for realistic return expectations.

April 7, 2011 U-14 To provide the success rate of the RFP Projects (NSPI); also to indicate which Mr. Chernick understands failed and to identify which projects were completed by NSPI 975 3 stated, and that to that effect they were satisfi...

AI summary The text is a transcript of a hearing where Mr. Christmas provides evidence regarding the success rate of RFP Projects by NSPI and clarifies which projects failed or were completed. There is also discussion about cross-examination and the involvement of other parties in the proceeding.

- the intellectual challenge of trying to bring a hydro - project online where there really hasn't been one in about - 50 years or 40-odd years almost. I don't know, maybe - Morgan Falls was in the eighties, wasn't it, something - like tha...

AI summary The speaker discusses the challenges of initiating a hydro project in Nova Scotia after a long hiatus, referencing past projects like Morgan Falls. They mention using the Synapse hydro model for rate setting and consulting with bankers on debt/equity ratios and interest rates. Environmental concerns related to fish populations are also noted.