Topic:"Rates And Money" in M12412

- 2 Because the NSIESO does not yet have a mechanism in place that is approved by the Nova Scotia - 3 Energy Board to recover fees from customers, the NSIESO is not seeking approval for any such - 4 fees as part of this application. As par...

AI summary The NSIESO is not seeking approval for fee recovery mechanisms in this application because it does not yet have an approved mechanism. It plans to seek approval for such a mechanism in a future rate fiscal year application.

4 B. NSPI Employee Transfers (including IRP consulting costs) ($1.61M) - 5 The NSIESO is forecasting $1.61M in expenses as part of the Transitioned Operations cost - 6 category. These expenses are the portion of NSPI operational costs that...

AI summary The NSIESO is forecasting $1.61M in expenses related to NSPI employee transfers, primarily for system planning functions. These costs, already approved by the Utility and Review Board and recovered in NSPI's rates, do not represent an incremental cost to customers as they are currently funded and continuing functions.

April 1 2025 - March 31, 2026 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Forecast Forecast Forecast Forecast Forecast Forecast Sep-25 Oct-25 Forecast Nov-25 Forecast Dec-25 Forecast Jan-26 Forecast Feb-26 Mar-26 Forecast Forecast Total Cash requir...

AI summary The document presents a financial forecast table for the period April 1, 2025, to March 31, 2026, detailing cash requirements, fees, interest costs, payroll, and accounting services. It outlines various financial obligations and one-time setup costs for transition and operational planning.

NON-CONFIDENTIAL 1 Request IR - 7 2 Reference: Exhibit B-2 (page 18 of 36, lines 3-16) 3 Please provide the underlying support for the compensation assumptions used to derive the 4 forecasted Administration Salaries and Wages, including th...

AI summary The document requests detailed support for compensation assumptions used in forecasting Administration Salaries and Wages, including peer organization comparisons, market data, fringe rate rationale, and CRA tables for 2025. The response indicates that KBRS was retained to gather compensation data for the President & CEO of NSIESO, including comparisons from Crown corporations and energy/utilities sectors across Canada.

1 Request IR - 9 - 2 Reference: Exhibit B-2 (page 15 of 36, line 16, Table 5) - 3 a) Please provide a breakdown of the $1.45 million in forecasted compensation costs. - 4 b) Please provide a breakdown of the $0.12 million in forecasted rec...

AI summary The document requests a breakdown of forecasted compensation and recruitment costs, with the response referring to another document for compensation costs and providing specific figures for recruitment costs, including KBRS search fees and travel and relocation costs.

NON-CONFIDENTIAL - Request IR 19 - Reference: Exhibit B-2 (page 23 of 36, lines 20-22)... "The costs are for travel, lodging, and meal - costs for quarterly in-person meetings for the Board of Directors. This estimates $2,500 $3,000 - per...

AI summary The document discusses the cost estimation for quarterly in-person meetings of the Board of Directors, including travel, lodging, meals, and other incidental expenses for out-of-province board members. The estimate ranges from $2,500 to $3,500 per meeting, with an example of $5,600 in expenses for a specific meeting.

NON-CONFIDENTIAL 1 Request IR - 2 2 Preamble: The NSIESO confirms the $2.68 of public funding received from the Province of 3 Nova Scotia, which will first be used to cover the one-time transition costs then the funds will be 4 applied to...

AI summary The NSIESO received $2.68 million in public funding from the Province of Nova Scotia, to be used first for one-time transition costs and then for other O&M costs. The NSIESO expects that transition costs may exceed $1.23 million, but the total is not yet known. If costs exceed the funding, a prudency review would be required.

Request IR - 5 - Reference: N-01(i), Application Exhibits, page 13, lines 13-16. - These costs are expected to be in the amount of $1.23M during the test period and be funded in - full using $2.68M of Provincial funding. The NSIESO is not...

AI summary The NSIESO states that Energy Board approval is not needed for one-time transition costs below $2.68 million, as they are funded by provincial grants. The request questions whether such costs are exempt from the Board's review and asks for legislative justification.

NON-CONFIDENTIAL 1 Request IR - 14 2 Reference: Exhibit N-1(i), p. 18 of 36 3 The NSIESO notes that forecast compensation in the Administration Salaries and Wages cost 4 category was established on the basis of several assumptions. 5 a) Pl...

AI summary The NSIESO is requested to provide details on the compensation assumptions for various positions in the revenue requirement, including base salary, bonuses, and fringe load factors. The NSIESO responds that the compensation structure is evolving and currently includes base salary only, with no annual bonus structure except for the CEO position.

NON-CONFIDENTIAL 1 Request IR - 1 2 Refer to M12412, Exhibit N-1-(i), the Application Exhibits, submitted by the NSIESO as part of 3 its Application for approval of its proposed expenditure and revenue requirements for the test 4 year endi...

AI summary The document contains a request for clarification regarding the NSIESO's proposed expenditure and revenue requirements for the test year ending March 31, 2026. It asks for details on staffing timelines, the necessity of positions in the first test year, compensation structures, salary allocations, and potential overlaps with NSPI employees.

- 4 Figure 1 Summary of findings, observations and conclusions # Section title Findings, observations, and conclusions 5. Benchmarking – administration salaries and wages Based upon our review of administration salaries and wages, we can p...

AI summary The review of administration salaries and wages found that the proposed salaries are reasonable and aligned with industry benchmarks. The 50th percentile benchmark was adopted to ensure cost-effectiveness. However, the report notes that supporting market data from NSIESO was not provided, limiting a full evaluation of the benchmark data.

1 4.3.1.3.1 IESO – Ontario - 2 Per their 2024 annual report, the IESO's actual expenses for their core operations are summarized below for 2023 3 and 2024:

AI summary The IESO's actual expenses for core operations in 2023 and 2024 are summarized in their 2024 annual report.

- Figure 10 Alberta AESO general and administrative costs (millions)[5](#page-15-1) 12 General and administrative costs ($millions) 2024 2023 Staff costs 97.7 78.1 Contract services and consultants 9.4 3.3 Facilities 5.5 4.8 Administration...

AI summary The text presents a table showing the general and administrative costs of the Alberta Electric System Operator (AESO) for the years 2023 and 2024, including categories such as staff costs, contract services, facilities, and telecommunications. The data is sourced from the AESO 2024 Annual Report.

- 15 compensation costs multiplied by 6 months (October 2025 March 2026). The total annual compensation estimate - 16 for these positions is $3,300,000 and is comprised of approximately $2,800,000 in staff compensation; $400,000 is a - 17...

AI summary The text discusses compensation costs for transferred positions, including staff compensation, fringe benefits, and employer deductions. It also mentions the expected third-party recoveries and the target date for the transfer of Phase 1 roles by December 1, 2025.

24 Figure 25 – NSIESO administration salaries and wages assumptions Compensation component NSIESO assumption Further benchmarking detail provided by the NSIESO upon inquiry Base salary - CEO role Annual salary midpoint: $400,000. Per the A...

AI summary The document discusses the NSIESO's assumption for the base salary of the CEO role, setting an annual salary midpoint of $400,000. This figure was determined based on a market scan of comparable roles in the energy/utility sector and Crown corporations across various regions, including the Maritimes, Manitoba, Saskatchewan, Ontario, Alberta, and British Columbia.

- 3 Figure 26 Doane Grant Thornton comments re. NSIESO administration salaries and wages assumptions Compensation component Doane Grant Thornton comments Base salary Although the NSIESO has stated that a market scan has been conducted by K...

AI summary Doane Grant Thornton comments on the NSIESO's administration salaries and wages assumptions, noting that while base salaries appear consistent with industry standards, supporting data from KBRS and HUB International was not provided. The firm also reviews CPP and EI contributions based on 2025 CRA tables and notes that salaries and wages make up about 40% of the NSIESO's total budgeted expenses.

Appendix A - Glossary of terms Abbreviation Term Act More Access to Energy Act AESO The Alberta Electric System Operator Application or M12412 An application by the Nova Scotia Independent Energy System Operator for approval of its propose...

AI summary This document provides a glossary of terms and abbreviations used in regulatory proceedings, including definitions of key entities, financial terms, and regulatory bodies relevant to Nova Scotia's energy sector.

- [1] On April 5, 2024, the Legislature passed the More Access to Energy Act , SNS 2024, c 2, Schedule B, establishing the new Nova Scotia Independent Energy System Operator (IESO Nova Scotia or IESO). Amongst other roles, this will result...

AI summary The More Access to Energy Act established IESO Nova Scotia, which will take over transmission system operator functions from NS Power Inc. IESO Nova Scotia applied for approval of its initial expenditure and revenue requirement, including OM&A expenses and the establishment of a deferral account. The Act allows cost recovery from ratepayers, but IESO has not yet proposed a rate recovery mechanism.

3.2 Proposed Revenue Requirement [22] IESO Nova Scotia forecasts its OM&A expenses for the test period to be $6.75 million (Ongoing OM&A). The IESO stated it will incur one-time transition costs forecast at $1.23 million, including costs t...

AI summary The IESO forecasts OM&A expenses of $6.75 million, including $1.23 million in one-time transition costs covered by a $2.68 million provincial grant. The IESO expects to recover $5.31 million in rates, with the remaining $1.44 million coming from the grant. Additional transition costs may arise in the future.

- Refer to M12412, Exhibit N-1-(i), the Application Exhibits, submitted by the NSIESO as part of - its Application for approval of its proposed expenditure and revenue requirements for the test year - ending March 31, 2026 (the "Applicatio...

AI summary The text requests clarification on the NSIESO's proposed expenditure and revenue requirements for the test year ending March 31, 2026, specifically regarding administrative salaries and wages, including timing of positions, overlap with NSPI employees, performance bonuses, and organizational structure.

The NSIESO is not yet in a position to propose a mechanism for rate recovery. It is the NSIESO's proposal to defer the approval of a rate recovery mechanism until a future application. Further, as a newly constituted corporation, the NSIES...

AI summary The NSIESO is unable to propose a rate recovery mechanism at this time and suggests deferring approval until a future application. The NSIESO lacks historical data as a new corporation, which may affect its financial forecasting and introduce unforeseen circumstances.

1 Given that the costs under this category are to pay for functions that are 2 currently carried out by NSPI, these costs have already been approved by 3 the Utility and Review Board and are recovered in NSPI's rates. - 4 (a) Does this mea...

AI summary The text discusses overlapping costs between NSPI and the NSIESO, noting that costs already approved by the Utility and Review Board are recovered in NSPI's rates. A question is raised about the expected overlap of $1.61M during the NSIESO's first six years of operation.

Non-Confidential To: The Nova Scotia Independent Energy System Operator ("NSIESO") 6. Reference: Exhibit B-2 (page 15 of 36, lines 18-20) "the forecast expenses for this cost category are based on the NSIESO's expectation that it will requ...

AI summary The document requests detailed compensation breakdowns for 13 administrative employees of the NSIESO and underlying support for compensation assumptions used in forecasting administration salaries and wages. The request includes details on peer organization roles and market comparative data for salary benchmarks.

Delivered by Email Crystal Henwood Regulatory Affairs Officer/Clerk Nova Scotia Energy Board 3rd Floor, 1601 Lower Water Street PO Box 1692, Unit "M" Halifax NS B3J 3S3 Dear Ms. Henwood: Re: M12412 – IESO NS – Proposed expenditure and reve...

AI summary The Industrial Group supports IESO-NS's initial revenue requirement and Deferral Account proposal but emphasizes the need for clear parameters and protective measures, as recommended by DGT. They also request improvements in future filings, an IRP process schedule, and ongoing transition reporting.

January 15, 2026 VIA File Transfer Ms. Crystal Henwood Clerk of the Board Nova Scotia Energy Board 1601 Lower Water Street, 3rd Floor Halifax NS B3J 3S3 Dear Ms. Henwood: Re: M12412 - Nova Scotia Independent Energy System Operator Applicat...

AI summary The Nova Scotia Independent Energy System Operator (IESO-Nova Scotia) has submitted an application to the Nova Scotia Energy Board for approval of its revenue requirement for the test year ending March 31, 2026. The application seeks to recover OM&A costs, including a revenue requirement of $6,751,287 before government funding and $5,306,824 after, as part of the transition from Nova Scotia Power Inc. and in accordance with the More Access to Energy Act and Energy Reform (2024) Act.

Provincial Funding The Application describes how the use of provincial funding impacted IESO-Nova Scotia's Application for its initial year of revenue requirement. In March 2025, the Province provided IESO-Nova Scotia with a grant of $2.68...

AI summary The Application details how provincial funding impacted IESO-Nova Scotia's revenue requirement. In March 2025, a $2.68M grant was provided, with $1.23M used for transition costs. The remaining $1.4M is expected to offset ongoing O&M costs, reducing the requested revenue requirement by $5.3M.

Table 1 Summary of OM&A Cost Categories 4 OM&A Cost Category Total O:\l&A Cost,; ($)(Millions) One-Time Transitional Costs (S) (l\Iillions) Ongoing O&:\I Costs (S) Oiillious) Administration Salaries and Wages 1.57 0.00 1.57 NSPI Employee T...

AI summary The document outlines OM&A cost categories and proposes the deferral of Net Ongoing OM&A expenses of $5.3 million into a 'Net OM&A Deferral and Variance Account' due to the lack of a mechanism for IESO-Nova Scotia to recover funds from ratepayers. Provincial funding will cover one-time transition costs, but any shortfall will also be deferred for future recovery through a rate application.

- [1] On April 5, 2024, the Legislature passed the More Access to Energy Act , SNS 2024, c 2, Schedule B, establishing the new Nova Scotia Independent Energy System Operator (IESO Nova Scotia or IESO). Amongst other roles, this will result...

AI summary The More Access to Energy Act established IESO Nova Scotia, which applied for approval of its initial expenditure and revenue requirement. The application includes OM&A expenses and the establishment of a deferral account. The Act allows cost recovery from ratepayers, and IESO proposed deferring the rate recovery mechanism to a later application.

3.2 Proposed Revenue Requirement [22] IESO Nova Scotia forecasts its OM&A expenses for the test period to be $6.75 million (Ongoing OM&A). The IESO stated it will incur one-time transition costs forecast at $1.23 million, including costs t...

AI summary IESO Nova Scotia forecasts OM&A expenses of $6.75 million, including $1.23 million in one-time transition costs covered by a $2.68 million provincial grant. The IESO expects to recover $5.31 million in rates, with the remaining $1.44 million from the grant.