Topic:"Rates And Money" in M13007

and IN THE MATTER OF an application by the Independent Energy System Operator of Nova Scotia ("IESO Nova Scotia") made pursuant to Section 29 of the MAEA for the review of its Fee Recovery Mechanism.

AI summary This document pertains to an application by the Independent Energy System Operator of Nova Scotia (IESO Nova Scotia) under Section 29 of the MAEA for the review of its Fee Recovery Mechanism.

IESO Nova Scotia Fee Recovery Mechanism Application July 31, 2026

AI summary The document outlines the IESO Nova Scotia Fee Recovery Mechanism Application submitted on July 31, 2026. It pertains to the process of recovering fees associated with the Independent Energy System Operator of Nova Scotia.

The Independent Energy System Operator of Nova Scotia ("IESO Nova Scotia") applies to the Nova Scotia Energy Board ("NSEB", "Board") pursuant to subsection 29(1) of the More Access to Energy Act , SNS 2024, c 2, Sch B, ("MAEA") for approva...

AI summary IESO Nova Scotia seeks approval from the NSEB to implement a new fee recovery mechanism to recover its revenue requirement from applicable LSEs. The mechanism includes a fixed monthly charge and options for annual true-up adjustments. The proposal is based on expert advice and stakeholder engagement, with a four-step cost recovery framework identified by FTI.

12 Figure 1 – Fees to Market Participants Market Participant # Months of Revenue Collection Monthly Fees NSPI 4 $ 2,591,500 Berwick Electric Commission 4 $ 18,785 Riverport Electric Light Commission 4 $ 4,483 Town of Mahone Bay 4 $ 6,882 T...

AI summary Figure 1 outlines the fees charged to various market participants in Nova Scotia, with NSPI and other entities listed along with the number of months of revenue collection and monthly fees. The total fees amount to $2,664,236.

1 Figure 2 - Monthly Fees with 2025/26 True-Up in a Compliance Filing Market Participant # Months of Revenue Collection Monthly Fees with 2025/26 True-Up NSPI 4 $ 2,514,164 Berwick Electric Commission 4 $ 18,494 Riverport Electric Light Co...

AI summary Figure 2 presents monthly fees with a 2025/26 true-up in a compliance filing, listing various market participants and their associated fees. NSPI and other entities are included, with total monthly fees amounting to $2,585,776.

1 IESO Nova Scotia has conducted a thorough regulatory stakeholder engagement process during 2 the various stages of the fee recovery mechanism's development, as outlined in IESO Nova 3 Scotia's progress update letter to the NSEB on July 6...

AI summary IESO Nova Scotia has conducted stakeholder engagement during the development of a fee recovery mechanism and seeks Board approval to replace the temporary fee mechanism. The mechanism involves calculating fees based on a methodology and seeking annual approval for future fees and adjustments. The Maritime Electric Act (MAEA) does not specify how fees should be calculated or charged.

- IESO Nova Scotia engaged FTI to conduct a jurisdictional scan of cost recovery mechanisms used - by other ISOs to inform the development of IESO Nova Scotia's fee recovery mechanism. Please - refer to Appendix 1 for a copy of the jurisdi...

AI summary IESO Nova Scotia engaged FTI to research cost recovery mechanisms used by other ISOs, resulting in a four-step framework for revenue requirement determination, allocation, fee setting, and collection. The report defines ISO Core Costs and distinguishes between inseparable and direct costs.

Lunenberg takes fully bundled service from NSPI, are not registered as accredited market participants, and are therefore not directly subject to the Proposed Mechanism. 1 As noted, at present IESO Nova Scotia's services include system plan...

AI summary Lunenberg is not directly subject to the Proposed Mechanism as it takes fully bundled service from NSPI and is not registered as an accredited market participant. IESO Nova Scotia's current responsibilities do not include OATT management, and a direct charge to market participants is proposed as the best fit for fee recovery until Phase 2 operations are fully implemented.

4. IESO NOVA SCOTIA FEE RECOVERY MECHANISM FTI's final recommendations on the Proposed Mechanism were grounded in the Jurisdictional Report, FTI's understanding of the electricity sector in Nova Scotia, and discussions with IESO Nova Scoti...

AI summary FTI's final recommendations on the IESO Nova Scotia Fee Recovery Mechanism are based on the Jurisdictional Report and discussions with IESO Nova Scotia and stakeholders. The Proposed Mechanism aims to provide stable monthly fees for IESO Nova Scotia while reducing administrative burdens on NSPI and municipal utilities.

4.1. Option Evaluation The recommended fixed direct charge, described in further detail in section 4.2 below, was chosen after considering several options and determining this design is best suited to the current state of IESO Nova Scotia...

AI summary The recommended fixed direct charge was selected after evaluating multiple options, including two tariff-based and two direct charge options, to determine the most suitable design for IESO Nova Scotia and the Nova Scotia electricity market. FTI Consulting LLP provided a detailed analysis and recommendation based on the Jurisdictional Report.

8 Evaluation Criteria Each of the options was evaluated using common criteria. Because the Jurisdictional Report identified that fee recovery mechanisms for ISOs vary by jurisdiction and do not follow a single predominant methodology, FTI...

AI summary The evaluation criteria for fee recovery mechanisms for ISOs were developed by FTI, as the Jurisdictional Report indicated that these mechanisms vary by jurisdiction and lack a single predominant methodology.

Administrative simplicity - Clear for stakeholders to understand - Less ongoing administrative burden on IESO and NSEB - Potentially lower audit and accounting costs

AI summary The text highlights the benefits of administrative simplicity, including clarity for stakeholders, reduced administrative burden on the IESO and NSEB, and potentially lower audit and accounting costs.

The Proposed Mechanism allows for minimal set-up costs because it allows for an initial filing for a relatively straightforward application using straightforward allocation methods (annual load) and 1 clearly defined market participants (L...

AI summary The Proposed Mechanism offers minimal set-up costs and administrative simplicity by using straightforward allocation methods and avoiding modifications to the OATT. It is also flexible for future changes as it is independent of the OATT and NSPI.

4.1.2. Conclusion Overall, Option 2a is believed to be the most appropriate fee recovery mechanism for Nova Scotia considering the evaluation criteria applied and the current state of IESO Nova Scotia's Phase 1 operations. The Proposed Mec...

AI summary Option 2a is recommended as the most appropriate fee recovery mechanism for Nova Scotia, as it allows IESO Nova Scotia to directly charge Market Participants (LSEs) without relying on NSPI or OATT processes. This model is considered less administratively burdensome and provides flexibility for future adjustments in Phase 2.

1 2 4.2. The Proposed Fee Recovery Mechanism 3 The resulting Proposed Mechanism is based broadly on the following: 4 • A monthly charge based on IESO Nova Scotia's NSEB-approved revenue requirement 5 • Calculated by allocating IESO Nova Sc...

AI summary The Proposed Fee Recovery Mechanism involves a monthly charge based on IESO Nova Scotia's revenue requirement, allocated proportionally to each LSE based on forecast load, with an annual true-up adjustment for actual costs and load served.

1 5. FEE CALCULATION AND MODEL - 2 Power Advisory was engaged by IESO Nova Scotia to create a model for the calculation of its fees - 3 to the LSEs, and the corresponding annual revenue true-up mechanism and load allocation - 4 adjustment,...

AI summary The document outlines the fee calculation model developed by Power Advisory for IESO Nova Scotia, based on annual revenue requirements and load allocation adjustments. The model uses forecasted consumption volumes to determine each LSE's share of the revenue requirement and includes a true-up mechanism to adjust for variances between forecast and actual figures.

5 Total 2025/26 and 2026/27 Revenue Calculation Total Monthly Fee Market Participant Total Fees (2025/26 + 2026/27) Interim Fee Recovered before Implementation: Feb-2026 to Nov-2026 Total Unrecovered Fees # Months of Revenue Collection Mon...

AI summary The text presents a table detailing the total fees and revenue calculations for various market participants in Nova Scotia for the 2025/26 and 2026/27 periods, including interim fees recovered before implementation and monthly fees for each participant.

- 8 Charges due to be paid for each month from December 2026 to March 2027, based on True-Up - 9 Option 2 via compliance filing, are as follows: - 10 NSPI = $2,514,164 - 11 Berwick Electric Commission = $18,494 - 12 Riverport Electric Ligh...

AI summary The document outlines charges to be paid by various entities from December 2026 to March 2027 based on a True-Up calculation. These charges include amounts for NSPI, Berwick Electric Commission, Riverport Electric Light Commission, and several towns.

6 adjustment applicable to fees in future fiscal year. The model is capable of adjustments to any 7 aspect of the fee calculation inputs and assumptions, including the timeframe over which fees may 8 be spread, and the potential impact, if...

AI summary The document discusses the method for calculating IESO Nova Scotia fees to be charged to LSEs, based on annual revenue requirement and fees applications. It references Section 29(3) of the MAEA and outlines the process if the NSEB does not approve new fees for the 2027/28 fiscal year.

4 Figure 16 – Continuation of Fees to LSEs Post March 31, 2027 Total Monthly Fee Calculation Market Participant Proposed Annual Fee 2026/27 # Months of Revenue Collection Monthly Fees NSPI $ 14,635,202 12 $ 1,219,600 Berwick Electric Commi...

AI summary Figure 16 outlines the continuation of fees to Load Serving Entities (LSEs) after March 31, 2027, including proposed annual fees and monthly calculations for various market participants such as NSPI and local electric commissions.

9 Figure 17 - Continuation of Fees to LSEs Post March 31, 2027 with 2025/26 True-Up Total Monthly Fee Calculation Market Participant Proposed Annual Fee 2026/27 Before True-Up 2025/26 True-Up Proposed Annual Fee 2026/27 with True-Up # Mont...

AI summary Figure 17 presents the continuation of fees to Load Serving Entities (LSEs) post March 31, 2027, with a 2025/26 true-up adjustment. The table shows the proposed annual fees for various entities, including NSPI and others, before and after the true-up, along with monthly fees and the number of months of revenue collection.

IESO Nova Scotia respectfully requests that the Board approve: - 1. The Proposed Mechanism, including the applicable market participants and the billing - determinants, as the fee recovery mechanism to be used by IESO Nova Scotia in collec...

AI summary IESO Nova Scotia is requesting the Board's approval for a new fee recovery mechanism, including a fixed monthly charge to Load Serving Entities (LSEs) based on their proportion of actual load served, with an annual revenue true up and load allocation adjustment. Specific monthly fee amounts are proposed for various entities, including NSPI and several smaller electric commissions.

- Town of Mahone Bay = $6,776 1 • Town of Antigonish = $41,929 2 3 3. An effective date of December 1, 2026, or as soon as the Board's decision may reasonably 4 permit, and an end date of March 31, 2027; and 5 4. The proposed regulatory ap...

AI summary The document outlines a regulatory approach for annual approval of fees, revenue true ups, and load allocation adjustments by IESO Nova Scotia under the Maritime Electric Act. It specifies an effective date of December 1, 2026, and an end date of March 31, 2027, with continuation of fees post-March 31, 2027, if NSEB approval is not received.

ISO Cost Recovery Mechanism Jurisdictional Scan A report from FTI Consulting for IESO Nova Scotia

AI summary This document introduces the ISO Cost Recovery Mechanism, presented in a report by FTI Consulting for IESO Nova Scotia. It includes a jurisdictional scan, indicating an analysis of the regulatory and legal context relevant to the mechanism.

Disclaimer This report has been prepared by FTI Consulting LLP ("FTI") for the Nova Scotia Independent Energy System Operator ("IESO NS") under the terms of IESO NS's engagement letter with FTI dated 1 May 2026 (the "Contract"). This repor...

AI summary This disclaimer outlines the terms under which FTI Consulting LLP prepared a report for the Nova Scotia Independent Energy System Operator (IESO NS) regarding the assessment of cost recovery mechanisms. The report is not to be used without prior approval and contains information from various sources without verification.

ISO Costs While there are important benefits from the IESO transition, it must be acknowledged that certain costs are inherent to running the IESO in Nova Scotia. These include: - Capital, operating, maintenance and administrative costs (r...

AI summary The IESO transition in Nova Scotia involves inherent costs such as core operational and procurement expenses. These costs are not incremental for consumers and are currently recovered through a temporary mechanism. IESO NS is seeking an enduring cost recovery mechanism and has engaged FTI Consulting LLP to assess international approaches to cost recovery.

Market Participants The costs of running an ISO are recovered from market participants ("MPs") who directly benefit from the ISO. The MPs applicable to our analysis can be split into four key categories:[3](#page-8-0) - Load : Load Serving...

AI summary The costs of running an ISO are recovered from market participants, primarily Load Serving Entities (LSEs), with fees on other participants ultimately passed on to customers through increased electricity costs.

Process Figure 2: Summary of typical process for setting tariffs and recovering costs The process for setting ISO tariffs to recover Core Costs typically involves four steps: - 1) Determining the revenue requirement : Typically, the revenu...

AI summary The process for setting ISO tariffs to recover Core Costs involves four steps: determining revenue requirements, allocating costs to market participants, setting tariff rates, and collecting tariffs with periodic true-ups. The methodology varies by jurisdiction and includes energy-based, demand-based, and hybrid approaches.

[Table 1](#page-10-0) [below](#page-10-0) summarizes the different charge structures used by the benchmarking ISOs to recover Core Costs. 7 Note that of all considered ISOs NESO is the only ISO (jointly with IESO NS) that does not operate...

AI summary The text discusses how different ISOs recover Core Costs through various charge structures, highlighting differences in billing determinants, true-up mechanisms, and the number of charges by ISO and format. NESO is noted as the only ISO that does not operate a wholesale energy market in GB.

3.Cost recovery approaches for benchmarked ISOs This section consists of four subsections that (1) describe the four-step process that ISOs use to determine their Core Costs and recover these costs from MPs, (2) discuss the approaches by w...

AI summary This section outlines the four-step process used by ISOs to determine and recover Core Costs from market participants, discusses cost recovery approaches across benchmarked ISOs, lists the number of charges used for cost recovery, and considers the relevance of these findings to Nova Scotia.

Overview of process Most ISOs operate on a cost recovery basis rather than for profit, that is, they aim to recover their approved costs through regulated[11](#page-11-1) tariffs and fees with no ability to earn a profit.[12](#page-11-2) [...

AI summary Most ISOs operate on a cost recovery basis, aiming to recover approved costs through regulated tariffs and fees without earning a profit. The typical process for setting tariffs and recovering costs is illustrated in Figure 3.

Table 2: Entities that propose and approve tariffs ISO Proposed by Approved by Assessment frequency Charge type General ISO Federal or provincial regulator Generally annual Varies ISO-NE ISO-NE FERC, reviewed and commented on by six NE sta...

AI summary This table outlines entities that propose and approve tariffs, detailing the frequency of assessment and charge types. It includes various ISOs and their respective regulatory bodies, highlighting the processes and timelines for tariff approvals and assessments.

Table 3: Summary of true-up process, assessment frequency and billing frequency by ISO ISO Billing Frequency True-up process General Daily, weekly or monthly Most ISO tariff frameworks include true-up mechanisms ISO-NE Monthly in arrears I...

AI summary The table summarizes the true-up process and billing frequency across various ISOs, highlighting differences in how revenue requirements are adjusted and billed. This information is relevant to understanding ratepayer recovery mechanisms and tariff frameworks.

For LSEs there is a final step consisting of how they recover the ISO costs that they are charged. Each LSE will have its own unique ratemaking process, to determine how its share of the ISO's revenue requirement is recovered from end user...

AI summary The text discusses how Load Serving Entities (LSEs) recover ISO costs from end users through their ratemaking processes, highlighting that some ISO charges, like capacity-based ones, cannot be directly passed through due to non-simultaneity of peak usage. Examples from New England and California are referenced to illustrate this.

Types of ISO charges to recover Core Costs Each ISO in our benchmarking group adopts a different approach to recovering its internal costs, as set out in [Table 4](#page-18-0) below. These typically account for which MPs benefit from syste...

AI summary The document discusses how different ISOs recover internal costs, highlighting the distinction between 'integrated' and 'ISO-only' charges. It notes that Ontario IESO and NESO use a single charge for shared ISO costs, while other ISOs use multiple charges. The text also explains the roles of retailers and outlines that some ISOs have additional internal costs beyond Core Costs.

Types of Charges - Charges that also recover non-Core Costs are marked ( ) Load Generation Intertie traders Transmission owner 40 ISO-NE ISO Administrative Expenses : Not a separate charge, but category that recovers the ISO's internal cos...

AI summary The document outlines various types of charges related to grid management and administrative expenses, including ISO-NE and CAISO-specific charges. These include scheduling, energy administration, reliability administration, and grid management charges, which recover internal costs and are categorized under different load and generation types.

49 NESO, Connection Charges, Summary Effective 1 April 2024, [(link)](https://www.neso.energy/document/148276/download). Types of Charges - Charges that also recover non-Core Costs are marked ( ) Load Generation Intertie traders Transmissi...

AI summary The text outlines the types of charges imposed by the National Energy System Operator (NESO) in the Australian Energy Market Operator (AEMO) system, including core costs, electricity retail markets, IT upgrades, NEM reforms, and cyber security initiatives. These charges are categorized based on load, generation, intertie traders, and transmission owners.

Certain ISOs also levy a fixed membership fee on MPs, regardless of size or volume of market activity. This is summarized in [Table 5](#page-23-0) below. Table 5: Participation fee per ISO ISO-NE CAISO IESO AESO NESO AEMO Frequency Annual...

AI summary The text discusses how certain Independent System Operators (ISOs) impose fixed membership fees on Market Participants (MPs), regardless of their size or level of market activity. These fees vary by ISO and are summarized in a table, which includes details on frequency, types of participants, and costs.

IESO Enduring Fee Recovery Mechanism FTI Recommendation A report from FTI Consulting for IESO Nova Scotia

AI summary This document introduces the IESO Enduring Fee Recovery Mechanism, as recommended by FTI Consulting for IESO Nova Scotia. It outlines a proposed approach for recovering enduring fees, though the specific details of the mechanism are not provided in the excerpt.

Disclaimer This report has been prepared by FTI Consulting LLP ("FTI") for the Nova Scotia Independent Energy System Operator ("IESO NS") under the terms of IESO NS's engagement letter with FTI dated 1 May 2026 (the "Contract"). This repor...

AI summary This disclaimer outlines the terms under which FTI Consulting LLP prepared a report for the Nova Scotia Independent Energy System Operator (IESO NS) regarding the Assessment of fee recovery mechanisms. The report is not to be used in legal or regulatory proceedings without prior approval and is not a substitute for professional advice.

for the IESO while aligning with best practice cost allocation principles, as observed in other jurisdictions; and - Align with economic principles, which seek to limit distortionary behaviours. The recommendation for the fee recovery mech...

AI summary The report outlines a recommended fee recovery mechanism for the IESO, considering it does not own the OATT or perform system operation functions. It aligns with economic principles and best practices in cost allocation, and suggests revisiting the decision if the OATT or system operation functions are transferred to the IESO. The report is structured into sections defining core costs, the cost recovery process, and the recommended mechanism, with supporting appendices.

Core Costs An ISO's Core Costs are the costs inherent to running the organisation, which include capital, operating, maintenance and administrative costs. These are all the internal costs related to ISO staff, control room operating and ca...

AI summary Core Costs refer to the inherent operational costs of an ISO, including capital, operating, and administrative expenses. These costs are not incremental for consumers and are often attributed to functions that would otherwise be handled by a VIU. The IESO's procurement of capacity and ancillary services from third parties is noted as significantly larger than Core Costs.

Market Participants The costs of running an ISO are recovered from MPs who benefit from the functions performed by the ISO. The potential MPs applicable to our analysis can be split into three key categories: [3](#page-6-0) - Load : Load S...

AI summary The document outlines the classification of market participants (MPs) in Nova Scotia, focusing on Load Serving Entities (LSEs), intertie traders, and generators. It discusses how ISO core costs are primarily recovered from LSEs, with potential indirect impacts on customers through increased electricity costs. It also references a jurisdictional scan comparing ISO cost recovery mechanisms.

3.Revenue requirement process and options for Nova Scotia Nearly all ISOs operate on a cost recovery basis rather than for profit, that is, they aim to recover their approved costs through regulated [t](#page-7-1)ariffs and fees with no ab...

AI summary This section discusses how ISOs typically operate on a cost recovery basis, aiming to recover approved costs through regulated tariffs and fees without earning a profit. It outlines the typical process for setting tariffs and recovering costs, with a focus on implementing this process in Nova Scotia for the IESO.

Steps 3 and 4 considerations for Nova Scotia The primary decision for steps 3 and 4 is to determine the process behind fee setting. The Jurisdictional Scan has demonstrated two main processes that can be considered to recover these insepar...

AI summary The document outlines two main processes for recovering inseparable costs from transmission system users in Nova Scotia: incorporating recovery into the OATT or levying a Direct Charge to Market Participants. It also discusses integrated and standalone charge options, referencing the Demand Side Management model and the need for further decisions on billing determinants and relevant MPs.

1.a. New schedule in OATT MPs: A charge levied via the OATT would most likely charge the same MPs as the current Nova Scotia Power System Operator ("NSPSO") [21](#page-14-1) OATT, which are domestic (network 21 NSPSO is a department within...

AI summary The document discusses the introduction of a new schedule in the Open Access Transmission Tariff (OATT), outlining potential changes in how Market Participants (MPs) are charged, including the possibility of volumetric, peak, or fixed charges. It also describes a true-up mechanism for adjusting future rates based on forecast and actual revenue differences, drawing from practices used by other ISOs and NSP's DSM rider.

1.b. Integrated into transmission revenue requirement MPs: A charge levied via the OATT schedule for transmission service would charge the same MPs as the existing OATT schedule, which are domestic (network integration) and export (point-t...

AI summary The document discusses the integration of transmission revenue requirements into the OATT schedule, affecting MPs such as NSP, OATT MEUs, and intertie traders. Billing determinants are based on firm reservation quantity and peak load, with potential for over- or under-recovery of revenue. Adjustments and true-up considerations align with Option 1.a.

2.a. Custom Direct Charge to each MP MPs: A charge outside of the OATT, invoiced directly from the IESO to MPs, would allow the IESO to tailor the fee charging mechanism. While there are no restrictions with regards to what MPs to select u...

AI summary This section discusses a custom direct charge to Market Participants (MPs) outside the Open Access Transmission Tariff (OATT), proposed to be invoiced directly by the IESO. It suggests targeting Load Serving Entities (LSEs) serving Nova Scotia and highlights billing determinants such as volumetric charges, non-coincident peak charges, and fixed charges, with a preference for a hybrid approach.

2.b. Consolidated Direct Charge MPs: A charge outside of the OATT that follows the existing framework established by EfficiencyOne [33](#page-19-1) would instead have a simpler billing structure than Option 2.a. The entire IESO revenue req...

AI summary The consolidated direct charge involves billing the entire IESO revenue requirement to NSP, who then allocates these costs to MPs. This approach simplifies billing compared to other options, but requires decisions on allocation among MPs. True-up adjustments would be based on budget variations. EfficiencyOne's costs are recovered through charges billed to NSP, and RtR suppliers will also be charged DSM fees.

4. FTI's recommendation – Direct Charge to each MP FTI performed a qualitative review of the four key options under consideration as described in the previous section. Based on five criteria explained below, we believe Option 2.a., a custo...

AI summary FTI Consulting evaluated four options for a Direct Charge to each Market Participant (MP) and recommends Option 2.a., a custom Direct Charge, as the most suitable for the IESO Nova Scotia based on five criteria.

Ranking considerations FTI developed five criteria to illustrate the key concerns of the IESO. This is not a comprehensive list of all potential concerns of the IESO, but provides a high-level suite of considerations. The factors here are...

AI summary FTI outlined five key considerations for the IESO, focusing on administrative simplicity, clarity for stakeholders, and integration with existing frameworks. These criteria aim to reduce administrative burdens and audit costs for the IESO and NSEB while ensuring straightforward implementation.

Revenue stability - Ability to adjust charges to ease volatility in cash flows - Allows for quicker reaction to changes in billing determinants (demand/usage), in internal costs, or exogenous factors (inflation, interest rates, regulations...

AI summary The text discusses revenue stability, focusing on the ability to adjust charges to manage cash flow volatility and respond to changes in demand, costs, and external factors. It emphasizes the application of cost causation and non-distortionary economic principles to minimize market distortions and charge fees based on demand elasticity.

Allocation adjustment: Difference of forecast and actual MP load share In Year 3, Year 2 load per MP is known, hence the difference between the forecast load share in Year 2 and actual load share for each MP can be determined. Source: FTI...

AI summary The document discusses an allocation adjustment mechanism in Year 3, based on the difference between forecast and actual load share for Market Participants (MPs). It outlines how revenue instability caused by MPs exiting or entering during the year can be addressed through adjustments to monthly fixed charges or collateral requirements. The adjustments ensure that charges are reconciled among MPs, with the total sum of adjustments equaling zero.

Actual load below forecast (overcharged) Figure 18 below illustrates an example Year 3 charge for MP3. MP3 was overcharged in Year 2 because its forecast load was higher than its actual load, relative to other MPs, so its monthly bill is l...

AI summary The document discusses an example where MP3 was overcharged in Year 2 due to a forecast load that was higher than the actual load, resulting in a lower monthly bill compared to the sum of the current year's base allocation and the two years' prior true-up.

Appendix 2: Background to the Jurisdictional Scan IESO NS engaged FTI to conduct an international benchmarking exercise on ISO approaches to cost recovery.[36](#page-29-1) This scan has provided background and understanding of how other IS...

AI summary IESO Nova Scotia commissioned FTI Consulting to conduct an international benchmarking exercise on ISO approaches to cost recovery. The scan reviewed various ISOs, including AESO, IESO Ontario, ISO-NE, CAISO, NESO, and AEMO, to understand how they recover their fees and operate within different jurisdictions.

Table 1: Number of Core Costs charges by ISO and format by market participant ISO Number of charges1 Load (LSE and Tx connected load)2 Generation Intertie traders Charge type General Varies Energy consumption (sometimes includes fixed fees...

AI summary Table 1 outlines the number of Core Costs charges by various ISOs and the formats used by market participants. It notes differences in how ISOs recover costs, such as through energy consumption, fixed fees, or integrated charges. A 2022 determination by the Australian Energy Regulator highlights incentive-based regulation for TNSPs related to AEMO's participant fees.

Administrative simplicity The administrative simplicity criterion reflects i) the ease with which the new recovery mechanism can be integrated into existing operations; ii) the limited administrative burden on the IESO and NSEB; and iii) t...

AI summary The administrative simplicity criterion evaluates how easily a new recovery mechanism can be integrated into existing operations, the burden it places on the IESO and NSEB, and potential audit cost reductions. Ease of recurring filings is highlighted as a key concern due to potential costs associated with regulatory processes.

Economic principles The economic principles criterion assesses i) the extent to which the recovery mechanism applies cost causation effectively, and ii) whether it encompasses non-distortionary economic principles, such as the introduction...

AI summary The economic principles criterion evaluates the recovery mechanism's ability to apply cost causation effectively and incorporate non-distortionary principles. The assessment is positive ('green') for all options due to the relatively small IESO fee compared to other electricity system charges. NSP uses SAE models to forecast load and develop energy forecasts for the province.

NOVA SCOTIA ENERGY BOARD NOTICE OF PAPER HEARING The Independent Energy System Operator of Nova Scotia (IESO Nova Scotia) applied to the Nova Scotia Energy Board on July 31, 2026, for approval of a fee recovery mechanism and corresponding...

AI summary The Nova Scotia Energy Board is considering a fee recovery mechanism proposed by IESO Nova Scotia to recover its revenue requirement from market participants. The current interim fees, approved under Interim Order M12663, will be replaced. The Board invites public comments and requests for intervenor status.

Rate Class Characteristics Energy Allocator Demand Allocator Custom er Count Billed MWh 12C P 2027 Forecast MWh (with losses) % 3СР % Customers % 2027 Forecast Billed MWh % 12CP % Residential 5,601,352 49.68% 4,351,189 65.06% 486,363 90.51...

AI summary The document provides a detailed breakdown of rate class characteristics, including energy and demand allocation across different customer categories, such as residential, industrial, and municipal. It includes forecasted MWh, percentages of total load, and customer counts for each category.

Fee Allocation Options Option 1: Energy Allocator 2027 Forecast MWh (with losses) MWh % Allocated Revenue Requirement 2027 Forecast Billed MWh ¢/kWh Residential 5,601,352 49.68% 9,875,194 5,174,286 0.19085 Small General 385,414 3.42% 679,4...

AI summary The document presents a table outlining fee allocation options under the Energy Allocator framework for 2027, showing forecasted MWh, revenue requirements, and billing rates across different customer segments. The 'Pros' section suggests there are advantages to this allocation approach, though details are not provided.

1 Total 11,273,881 100.00% 19,875,875 10,526,824 0.18881 Below the Line 718,273 6.37% 1,266,317 700,774 0.18070 Unmetered 83,268 0.74% 146,802 77,000 0.19065 Municipal - Lunenbur 28,991 0.26% 51,112 28,085 0.18199 PHP 311,353 2.76% 548,916...

AI summary The text presents a detailed table of energy usage and revenue requirements across various customer categories, including residential, industrial, and municipal sectors, with percentages and financial figures for the year 2027. It includes forecasts, load factors, and allocated revenue requirements.

Option 1: Energy Allocator Options Summ ary ¢/kWh Option 1: Energy Allocator Option 2: System Load Factor Option 3: Demand Allocator Option 4: 12CP (OATT) Option 5: SLF for Gen , Demand for Tx Option 6: Billed MWh Residential 0.191 0.219 0...

AI summary The document presents a comparison of six energy allocation options, detailing their impact on different customer categories and total bills. The options include Energy Allocator, System Load Factor, Demand Allocator, and others, with varying costs per kilowatt-hour and total bill amounts. The comparison highlights differences in cost and potential impacts on various sectors.

NON-CONFIDENTIAL under-allocation of ISO Costs to MPs would have a significantly smaller impact on the total financial balance of that MP. In contrast, the impact of forecast errors in annual energy consumption on the financial balance of...

AI summary The document discusses the financial implications of different charging mechanisms on IESO Nova Scotia and MPs, noting that a fixed charge has a smaller impact compared to a volumetric charge. It also addresses concerns about cross-subsidization and suggests that cost recovery mechanisms should be handled by LSEs.

20 a) The total and monthly fees to be collected from NS Power are summarized below. NS Power Fees Total Unrecovered Fees Monthly Fees Option 1 (before true up) $10,366,000 $2,591,500 Option 2 (with true up) $10,056,655 $2,514,164 21 These...

AI summary The text outlines the total and monthly fees to be collected from NS Power under two options, with Option 1 totaling $10,366,000 and Option 2 totaling $10,056,655. These figures are referenced in Application Figures 14 and 15.

Market Participant Monthly Fees - Option 1 4 Months 12 Months 24 Months NSPI $2,591,500 $868,889 $438,045 Berwick Electric Commission $18,785 $6,298 $3,175 Riverport Electric Light Commission $4,483 $1,503 $758 Town of Mahone Bay $6,882 $2...

AI summary The document presents a table of monthly fees for various market participants under Option 1, with different timeframes (4, 12, and 24 months). It also references responses from the Nova Scotia Independent Energy System Operator (IESO Nova Scotia) to information requests from the Industrial Group (IG).

NON-CONFIDENTIAL Market Participant Monthly Fees - Option 2 4 Months 12 Months 24 Months NSPI $2,514,164 $842,959 $424,973 Berwick Electric Commission $18,494 $6,201 $3,126 Riverport Electric Light Commission $4,413 $1,480 $746 Town of Mah...

AI summary The document presents a table showing monthly fees for various market participants under Option 2, with different timeframes. It also notes that the timeframe for NS Power to recover costs from customers is independent of IESO Nova Scotia's cost recovery from NS Power.

2026/27 Load Allocation Adjustment 2026/27 Forecast % Annual Base Fee 2026/27 2026/27 Actual % 2026/27 Annual Fee Based on Actual Energy % 2026/27 Allocation Adjustment Monthly Load Allocation Adjustment NSPI 98.55% $14,635,202 97.55% $14,...

AI summary The 2026/27 Load Allocation Adjustment table presents forecast and actual load percentages and corresponding fees for various entities, including NSPI, Berwick, Riverport, Mahone Bay, and Antigonish, with adjustments calculated based on differences between forecast and actual energy usage.

NON-CONFIDENTIAL - Request IR - 2 - Reference: IESO Nova Scotia – Fee Recovery Mechanism Progress Update (letter dated July - 6, 2026) - IESO Nova Scotia states the following: - "…Progress to date includes the following: - On May 5, 2026,...

AI summary IESO Nova Scotia provided updates on progress with the fee recovery mechanism, including stakeholder engagement sessions and distribution of reports and presentations. Requests for specific documents related to stakeholder feedback and responses are made.

Mark 1. In the jurisdictional scan, did FTI Consulting note what occurred in the event that an IESO incurred costs that were later deemed imprudent or where an overspend occurred that was not subsequently approved by the Board? FTI has not...

AI summary The text discusses questions raised during a regulatory proceeding regarding the IESO's cost recovery mechanisms, rate design, and stakeholder engagement. FTI Consulting's responses indicate that certain aspects, such as the impact of overspending and rate design considerations, will be addressed in their fee recovery mechanism recommendation.

Microsoft Teams meeting Join: [https://teams.microsoft.com/meet/245338598436625?](https://can01.safelinks.protection.outlook.com/ap/t-59584e83/?url=https%3A%2F%2Fteams.microsoft.com%2Fmeet%2F245338598436625%3Fp%3DDLAy4lkexw3OhSrSUT&data=05...

AI summary This document provides the details for a Microsoft Teams meeting related to the Fee Recovery Mechanism Settlement Agreement by the Nova Scotia Independent Energy System Operator. The meeting includes a link, ID, and passcode for joining.

Nova Scotia Energy Board IN THE MATTER OF AN APPLICATION by NOVA SCOTIA INDEPENDENT ENERGY SYSTEM OPERATOR for approval of a fee recovery mechanism

AI summary The Nova Scotia Energy Board is considering an application by the Nova Scotia Independent Energy System Operator for approval of a fee recovery mechanism.

NOW THEREFORE, the Parties agree as follows: - 1. The Parties have reached an agreement on the fee recovery mechanism that will result from the Fee Recovery Mechanism Application as represented by the terms set out in Schedule "A" attached...

AI summary The Parties have reached an agreement on the fee recovery mechanism, which will be filed with the Nova Scotia Energy Board. The Stakeholders reserve the right to request information and submit evidence if the application is inconsistent with the Settlement Agreement. The agreement includes a collaborative process and mutual support for the outcomes of the Fee Recovery Mechanism Application.

Terms of Settlement IESO Fee Recovery Settlement Terms Mechanism Element Overall Methodology The Parties agree to the methodology of the fee recovery mechanism in principle. That is: • fees will be calculated based on IESO NS's NSEB approv...

AI summary The document outlines the terms of settlement for IESO fee recovery, detailing the methodology for calculating and apportioning fees to market participants based on their proportional load served in Nova Scotia. The agreement includes provisions for future market participants, such as Renewable to Retail Licensed Retail Suppliers, who will be subject to fees once they are confirmed to be in-service.

- 19 b), c) and d) IESO Nova Scotia does not have this information as it is out of scope for the - 20 proposed fee recovery mechanism and not necessary as an input for calculation of fees.

AI summary The IESO Nova Scotia does not possess the required information as it falls outside the scope of the proposed fee recovery mechanism and is not necessary for the calculation of fees.

Response IR - 6 As explained by AEMO in its Participant fee structures consultation: Since AEMO's costs are not completely variable and include significant fixed operational expenses, a two-part tariff provides better allocative efficiency...

AI summary AEMO explains that a two-part tariff for participant fees improves allocative and productive efficiency by ensuring fixed costs are shared fairly and providing predictable revenue for AEMO. This approach also prevents unfair discrimination against participants based on usage levels.

Nova Scotia Independent Energy System Operator (IESO Nova Scotia) Responses to London Economics International LLC (LEI) Information Requests 28 29 30 under a fully fixed structure, lower usage customers would end up cross subsidising the h...

AI summary The document discusses the potential issue of cross-subsidization in a fully fixed structure, where lower usage customers subsidize higher usage customers. AEMO supports a 50:50 split approach for simplicity and reduced complexity in implementation.

- Request IR - 10 - Reference: Appendix 1 – Jurisdictional scan (PDF page 27, Table 6) - Table 6 indicates that IESO Nova Scotia serves approximately 1 million people, with 5,200 km of - transmission, 3 GW of installed capacity, 2 GW of pe...

AI summary The document requests an explanation of how the size of a market affects the appropriateness of ISO comparators for IESO Nova Scotia's fee recovery mechanism and the transferability of their charge structures. Table 6 provides comparative data on market size and operating costs for various ISOs, highlighting significant differences in scale.

a) Please see the table below, which aligns with Figure 16 of the Application. Total Monthly Fee Calculation tion Market Participant Proposed Annual Fee 2026/27 # Months of Revenue Collection М onthly Fees NSPI $ 14,635,202 12 $ 1,219,600...

AI summary The text presents a table outlining the calculation of total monthly fees for various market participants in 2026/27, including NSPI, Berwick Electric Commission, and others, as part of the Application aligned with Figure 16. It also references responses from IESO Nova Scotia to information requests from Municipal Electric Utilities.

38 Figure 1 (Option 1 without true-up) Market Participant # Months of Revenue Collection Monthly Fees NSPI 12 $ 553,554 Berwick Electric Commission 12 $ 6,335 Riverport Electric Light Commission 12 $ 1,512 Town of Mahone Bay 12 $ 2,321 Tow...

AI summary The text presents two figures comparing revenue collection and monthly fees for various market participants under two different options. Option 1 shows higher monthly fees compared to Option 2, which includes a 'true-up' adjustment. The figures highlight differences in financial obligations for Nova Scotia Power Inc. and other local entities.

- 48 but is not proposing to apply carrying charges to true-up balances. Option 1 Option 2 Market Participant 1 Annual ۲ lonthly 1 Annual M lonthly Interest Interest Interest Interest NSPI $ 76,644 $ 6,387 $ 79,748 $ 6,646 Berwick Electric...

AI summary The text references a regulatory proceeding where carrying charges are not being applied to true-up balances. It includes a table with interest amounts for various market participants under two options, showing annual and monthly figures.

NON-CONFIDENTIAL be LSEs and accredited market participants. This was deemed the clearest and most methodologically sound approach to identifying entities eligible for IESO Nova Scotia fees. While the Town of Lunenberg falls under the defi...

AI summary The document discusses the eligibility of the Town of Lunenberg for IESO Nova Scotia fees, noting that while it is a LSE, it is not an accredited market participant. IESO Nova Scotia assumes some costs will be passed on to the Town via NS Power's cost of service treatment, as the Town takes fully bundled service from NS Power.

- Retail Supplier (LRS) as part of the proposed fees, but that IESO Nova Scotia will apply for - adjustments to fees at the next opportunity to do so after the LRS is operational. - a) Given that IESO Nova Scotia is proposing a fixed month...

AI summary The document contains a series of questions regarding the proposed fixed monthly direct charge by IESO Nova Scotia to load serving entities, including potential impacts of changes in the LRS's operational date, assignment of load to NS Power, prorated fees, and discussions with the LRS.

NON-CONFIDENTIAL They are tailored to IESO Nova Scotia with the aim of ensuring revenue predictability and stability, which were deemed particularly important given the nascent state of the organization and its potential vulnerability to r...

AI summary The document discusses the importance of revenue predictability and stability for IESO Nova Scotia, highlighting the introduction of a fixed charge for energy consumption to ensure consistent revenue regardless of seasonal variations in energy use. This approach is intended to benefit both the ISO and market participants by providing stable and predictable costs.

f) It is well-known that levying non-cost reflective charges on price elastic grid users (such as intertie traders), whether they intend to recover ISO Core Costs or any other costs such Appendix 1, Jurisdictional Scan, Table 1. One of the...

AI summary The text discusses how Nova Scotia Independent Energy System Operator (IESO Nova Scotia) does not charge ISO Core Costs to intertie traders due to agreements with neighboring ISOs, highlighting jurisdictional considerations in cost recovery.

Nova Scotia Independent Energy System Operator (IESO Nova Scotia) Responses to Small Business Advocate (SBA) Information Requests Pr t oc ur em en 9 85 84 4 , 1, 04 4, 64 7 1, 04 4, 64 7 5 8, 8 0 3 6 % Le al d R ula to g an eg ry 8 13 12 1...

AI summary The text presents a table of financial and operational data from the Nova Scotia Independent Energy System Operator (IESO Nova Scotia) in response to the Small Business Advocate (SBA) information requests. The data includes various categories such as legal, governance, finance, and transition and amortization expenses, along with percentages and totals.

2027/28 Fee Recovery Calculation Total Fees Dec-2026 to Mar-2027 $ 10,375,875 NSPI Interm Fee (Feb-2026 to Nov-2026) $ 9,500,000 Fees Apr-2027 to Mar-2028 NSPI Recovery $ 19,875,875

AI summary This document outlines the calculation for the 2027/28 fee recovery, including total fees from December 2026 to March 2027 and the projected fees from April 2027 to March 2028, with a specific mention of NSPI recovery.

Rate Class Characteristics Energy Alloca itor Demand Demand Allocator er Count Billed MWh 120 CP 2027 Forecast MWh (with losses) % ЗСР % Customers % 2027 Forecast Billed MWh % 12CP % Residential 5,601,352 49.68% 4,351,189 65.06% 486,363 90...

AI summary The document provides a detailed breakdown of rate class characteristics, including energy allocation, demand, customer counts, billed MWh, and other metrics for various customer segments in Nova Scotia. The data includes forecasts for 2027 and percentages for different categories.

Fee Allocation Options Option 1 Energy Allocato r 2027 Forecast MWh (with losses) MWh % Allocated Revenue Requirement 2027 Forecast Billed MWh ¢/kWh Residential 5,601,352 49.68% 9,875,194 5,174,286 0.19085 Small General 385,414 3.42% 679,4...

AI summary The document presents a table outlining fee allocation options for different customer classes in 2027, including forecasted MWh, allocated revenue requirements, and billed MWh with associated rates per kWh. The table includes categories such as residential, industrial, and municipal customers.

1 Option 2: Syste m Load Factor 2027 Forecast MWh (with losses) MWh % ЗСР 3CP % System Load Factor-Weighted Allocated Revenue Requirement 2027 Forecast Billed MWh ¢/kWh Residential 5,601,352 49.68% 4,351,189 65.06% 57.09% 11,347,878 5,174,...

AI summary The document presents a detailed table with various load factors and revenue requirements across different customer segments for 2027. It includes data on forecasted MWh, percentages, and allocated revenue requirements, providing a comprehensive overview of energy distribution and billing.

Energy % (SLF) Demand % 51.81% 48.19% Option 3: Demand Allocat or 3CP 3CP % Allocated Revenue Requirement 2027 Forecast Billed MWh ¢/kWh Residential 4,351,189 65.06% 12,931,101 5,174,286 0.24991 Small General 230,332 3.44% 684,513 356,341...

AI summary The text presents two options for allocating revenue requirements and demand percentages across various customer classes, including residential, industrial, and municipal, with detailed numerical data for each category. The tables compare different allocation methods and their financial implications.

- Inconsistent with method IESO allocates costs to MPs Opti on 5: System Loa d Factor for Ger neration , Demand 1 for Transmission 2027 Forecast MWh (with losses) MWh % ЗСР 3CP % Generation/Tran smission Weighted Allocated Revenue Requirem...

AI summary The text highlights a discrepancy between the method used by the Independent Electricity System Operator (IESO) to allocate costs to Market Participants (MPs) and a proposed approach. It includes detailed tables comparing different options for allocating revenue requirements and billing rates across various customer segments in 2027.

- Does not consider cost causality Residential Customer Charge $ 21.04 $ 21.04 Energy Charges $ 176.04 $ 176.04 $ 1.2% Energy Charges $ 176.04 $ 176.04 $ 1.2% Energy Charges $ 176.04 $ 1.2% Energy Charges $ 176.04 $ 1.2% Energy Charges $ 2...

AI summary The text presents a table with various charges and percentages related to residential energy costs, including customer charges and energy charges, with some percentages indicating increases. However, it does not consider cost causality, suggesting a lack of analysis on how costs are incurred.

Option 5: SLF for Gen , Demand for Tx Options Summary ¢/kWh Option 1: Energy Allocator Option 2: System Load Factor Option 3: Demand Allocator Option 4: 12CP (OATT) Option 5: SLF for Gen , Demand for Tx Option 6: Billed MWh Residential 0.1...

AI summary The document presents a comparison of different options for SLF (System Load Factor) and demand allocation, including rates per kWh for various customer categories and related charges. It provides a detailed breakdown of costs and variance percentages for different years, focusing on fuel and non-fuel charges.

Review of IESO Nova Scotia's fee recovery mechanism application prepared for the Nova Scotia Energy Board by London Economics International LLC October 13th, 2026 London Economics International LLC ("LEI") was engaged by the Nova Scotia En...

AI summary The document reviews IESO Nova Scotia's fee recovery mechanism and finds it reasonable as an interim measure. However, it recommends a more detailed cost allocation and a shift to a usage-based fee post-Phase 2 transition, considering the operator's evolving role.

LEI was retained by the NSEB to provide an independent expert assessment of the fee recovery mechanism application filed by IESO Nova Scotia on July 31st, 2026 (Matter M13007). This report presents the results of LEI's review of key aspect...

AI summary LEI was retained by the NSEB to assess IESO Nova Scotia's fee recovery mechanism application. The report reviews the fixed nature of IESO's costs and suggests that revenue should be allocated based on MWh load served by LSEs, with a recommendation for more detailed cost allocation in Phase 2.

ase 1 mandate. Once Phase 2 is implemented, the NSEB may wish to direct IESO Nova Scotia to undertake a more granular, function-level cost allocation exercise, including explicit treatment of exports. - iii. Flat monthly fee (as opposed to...

AI summary The text discusses interim measures for fee recovery during Phase 2 implementation, suggesting a flat monthly fee based on load served as a temporary solution. It also recommends re-evaluating the fee recovery mechanism, including potential changes to the Open Access Transmission Tariff (OATT), after Phase 2 steady-state operation.

ESO Nova Scotia committed to develop a permanent fee recovery mechanism, informed by jurisdictional research and stakeholder engagement, and to submit it for the NSEB's approval in 2026.[3](#page-5-3) On July 31st, 2026, IESO Nova Scotia f...

AI summary IESO Nova Scotia has proposed a fee recovery mechanism to recover its revenue requirement through fixed monthly charges to LSEs, with approval sought from the NSEB. The mechanism includes interim payments, a true-up process, and future fee approvals as part of annual revenue applications.

er 2026 to March 2027. The charges total approximately $2.66 million per month, of which approximately $2.59 million would be payable by NS Power, with the remainder allocated among the four municipal 1 IESO Nova Scotia was established by...

AI summary The document outlines the establishment of IESO Nova Scotia under the More Access to Energy Act and references several regulatory proceedings related to fee recovery and revenue requirements. It includes details on charges, parties involved, and documents filed in these matters.

utilities in proportion to load served. IESO Nova Scotia's proposed flat monthly fees are shown in [Figure 2](#page-6-0) below. Figure 2. IESO Nova Scotia's proposed fees for LSEs (applicable between December 2026 and March 2027) Market pa...

AI summary The text discusses IESO Nova Scotia's proposed flat monthly fees for Load Serving Entities (LSEs) between December 2026 and March 2027, with specific amounts listed for various utilities and the total fee. The data is sourced from a regulatory proceeding document.

The application is supported by three expert submissions: Appendix 1, a jurisdictional scan by FTI Consulting LLP ("FTI") of ISO fee recovery mechanisms in other North American jurisdictions; Appendix 2, FTI's recommendation report, which...

AI summary The application for a fee recovery mechanism is supported by expert submissions from FTI Consulting LLP and Power Advisory LLC. IESO Nova Scotia engaged stakeholders during the proposal development. LEI has reviewed the application and will assess its key elements in Section 5.

3 Underlying principles for cost allocation and rate design Cost allocation and rate design determine allocation and collection of the revenue requirement among various customer groups. Three broad steps are key to the process: (i) functio...

AI summary This section outlines the principles for cost allocation and rate design, emphasizing financial sustainability, cost allocation between customer groups, and minimizing cross-subsidies. It references the Bonbright framework and various Canadian and US regulatory bodies that have adopted these principles.

4.1 Statutory mandate under the MAEA The MAEA's purposes include increasing competition and innovation in the energy sector, ensuring a reliable and economical energy supply, providing for competitive procurement of new resources, and prov...

AI summary The text discusses the statutory mandate under the More Access to Energy Act (MAEA), outlining the IESO's responsibilities in planning, system operation, and market facilitation. It also explains the two cost recovery pathways for IESO Nova Scotia, including the submission of revenue requirements to the NSEB and the recovery of energy resource supply contract costs through a mechanism established by the NSEB.

5.3 Is a flat monthly fee charged to each LSE reasonable? IESO Nova Scotia has proposed a flat monthly fee to be charged to each LSE, primarily based on the following reasons:[34,](#page-15-6)[35](#page-15-7) - Revenue predictability and s...

AI summary IESO Nova Scotia proposes a flat monthly fee for LSEs to ensure revenue predictability and stability, citing fixed costs and administrative simplicity. LEI agrees with this as an interim measure but notes it may not capture all transmission customers, such as exports and LRSs, which could complicate future adjustments.

5.4 Is the proposed recovery mechanism (direct invoicing vis-à-vis other options) appropriate? For recovering its costs, IESO Nova Scotia (based on FTI recommendations) proposed four potential mechanisms, grouped into two OATT-based proces...

AI summary The document evaluates the appropriateness of the proposed cost recovery mechanism, specifically direct invoicing, compared to other options. IESO Nova Scotia has proposed four mechanisms, including introducing a new schedule in the OATT and embedding costs in the transmission revenue requirement. A usage-based fee is suggested to align customer payments with long-term system costs.

5.6 Review of fee calculation methodology IESO Nova Scotia has provided its fee calculation model as Appendix 3 to the fee recovery application (prepared by Power Advisory). [Figure 5](#page-22-0) illustrates the mechanics of that model. T...

AI summary The document discusses the fee calculation methodology used by IESO Nova Scotia, including adjustments for over-recovery and carrying costs. It outlines the revenue requirements for 2025/26 and 2026/27, the deduction of interim fees collected from NS Power, and the calculation of monthly fees for the remaining balance. LEI calculated carrying costs for two options, with Option 1 having higher costs.

7 Appendix A – List of works consulted - Alberta Utilities Commission. AESO Bulk and Regional Rate Design Application . 2022. - Bonbright, James C., Albert L. Danielsen, and David R. Kamerschen. Principles of Public Utility Rates (2nd edit...

AI summary This appendix lists various documents and resources consulted in a regulatory proceeding, including legal acts, industry publications, regulatory manuals, and responses to information requests by multiple stakeholders. It includes references to energy-related legislation, utility cost allocation principles, and fee recovery mechanisms.

Q: What is the proposed structure for the fee recovery mechanism? A: IESO NS proposes a fixed monthly direct charge to Load Serving Entities (LSEs). Its principal arguments in favor of this approach are revenue stability and administrative...

AI summary IESO NS proposes a fixed monthly direct charge to Load Serving Entities (LSEs) as the structure for the fee recovery mechanism, citing revenue stability and administrative simplicity as key advantages.

Q: Is there an alternative to a true-up mechanism? A: There is not a good alternative in the case of a non-profit entity such as IESO NS. FTI correctly lays out the case for a true-up mechanism, as follows: True-up mechanisms are required...

AI summary The response discusses the necessity of a true-up mechanism for non-profit entities like IESO NS, explaining that alternatives such as a future test year do not eliminate the need for true-up due to cost uncertainty and rate variability.

Q: Is it necessary to implement new rates in Q2 of the fiscal year as proposed by IESO NS? A: No. There is no particular advantage cited by IESO NS to implementing new rates at some point in Q2 (e.g., August or September), rather than at e...

AI summary The response indicates that implementing new rates in Q2 of the fiscal year as proposed by IESO NS is not necessary, as there is no significant advantage to doing so compared to implementing them at the start of the fiscal year or the calendar year.

s and Practices," Volumen 1, with Gretchen Kershaw, Rob Gramlich, and Sophie Meyer, Grid Strategies LLC, prepared for the Electricity Customer Alliance and Americans for a Clean Energy Grid, May 2026. "Federal Transmission Pricing: Options...

AI summary Two reports by Grid Strategies LLC, prepared for the Electricity Customer Alliance and Americans for a Clean Energy Grid, were published in 2026. The first, titled 'Electricity Market Design, Regulation, and Practices,' and the second, 'Federal Transmission Pricing: Options for Ensuring Affordability and Reliability in an Era of High Load Growth,' address market design, regulation, and transmission pricing strategies.

from Maritime Link transmission project. Regional joint dispatch. Accounting issues related to coal supplies and wind farm tax credits. Impact of demand response and time-varying rates on fuel costs. Nova Scotia UARB Matter No. M11009, dir...

AI summary Expert testimony discusses the Maritime Link transmission project, its benefits, and the disposition of Nova Scotia Power's Holdback. It also covers capital expenditure plans, reliability investments, and the retirement of fossil-fueled generation units in Kentucky, including economic and resource adequacy considerations.

HEARING ORDER The Independent Energy System Operator of Nova Scotia (IESO Nova Scotia) applied to the Nova Scotia Energy Board on July 31, 2026, for approval of a fee recovery mechanism and corresponding fees to recover its Board-approved...

AI summary The Independent Energy System Operator of Nova Scotia (IESO Nova Scotia) has applied for approval of a new fee recovery mechanism to recover its revenue requirement from market participants, replacing a temporary financial relief measure. The proceeding will initially be a paper hearing, with the possibility of conversion to an oral hearing if needed.

NOTICE OF PAPER HEARING _____________________________________________________________________________ The Independent Energy System Operator of Nova Scotia (IESO Nova Scotia) applied to the Nova Scotia Energy Board on July 31, 2026, for ap...

AI summary The Independent Energy System Operator of Nova Scotia (IESO Nova Scotia) has applied for approval of a new fee recovery mechanism to recover its revenue requirement from market participants. The current temporary financial relief, approved under Interim Order M12663, will be replaced by this proposed mechanism. The Nova Scotia Energy Board will conduct a paper hearing and is inviting public participation and evidence submissions.

HEARING ORDER The Independent Energy System Operator of Nova Scotia (IESO Nova Scotia) applied to the Nova Scotia Energy Board on July 31, 2026, for approval of a fee recovery mechanism and corresponding fees to recover its Board-approved...

AI summary The Independent Energy System Operator of Nova Scotia (IESO Nova Scotia) has applied for approval of a new fee recovery mechanism to recover its revenue requirement from market participants. The current temporary financial relief under an interim order will be replaced. The proceeding will be conducted as a paper hearing with written submissions, though it may be converted to an oral hearing if needed.

NOTICE OF PAPER HEARING _____________________________________________________________________________ The Independent Energy System Operator of Nova Scotia (IESO Nova Scotia) applied to the Nova Scotia Energy Board on July 31, 2026, for ap...

AI summary The Independent Energy System Operator of Nova Scotia (IESO Nova Scotia) has applied for approval of a new fee recovery mechanism to recover its revenue requirement from market participants, replacing the current temporary financial relief. The Nova Scotia Energy Board will hold a paper hearing to consider this matter, with opportunities for public comment and intervenor participation.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: The More Access to Energy Act - and - IN THE MATTER OF: An Application by the Independent Energy System Operator of Nova Scotia made pursuant to Section 29 of the More Access to Energy Act for the...

AI summary The Nova Scotia Energy Board is reviewing the Fee Recovery Mechanism of the Independent Energy System Operator of Nova Scotia under the More Access to Energy Act.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: The More Access to Energy Act IN THE MATTER OF: An Application by the Independent Energy System Operator Of Nova Scotia made pursuant to Section 29 of the More Access to Energy Act for the review...

AI summary The Nova Scotia Energy Board is reviewing the Fee Recovery Mechanism of the Independent Energy System Operator under Section 29 of the More Access to Energy Act.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: AN APPLICATION BY THE INDEPENDENT ENERGY SYSTEM OPERATOR OF NOVA SCOTIA made pursuant to Section 29 of the More Access to Energy Act for the review of its Fee Recovery Mechanism.

AI summary The Nova Scotia Energy Board is reviewing the Fee Recovery Mechanism of the Independent Energy System Operator of Nova Scotia, as required under Section 29 of the More Access to Energy Act.

NOTICE OF INTERVENTION Take Notice that Nova Scotia Power Inc. ("NS Power") requests to intervene in this proceeding in accordance with Rule 11(1) of the Board Regulatory Rules. NS Power is a regulated public utility engaged in the generat...

AI summary Nova Scotia Power Inc. (NS Power) has requested to intervene in a regulatory proceeding, citing potential obligations to pay the IESO Nova Scotia revenue requirement and recover these costs from its customers. NS Power is a public utility providing electricity to approximately 500,000 customers in Nova Scotia.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF the More Access to Energy Act , 2024, c. 2, Sch. B, s. 1 - and – IN THE MATTER OF an application by the Independent Energy System Operator of Nova Scotia made pursuant to section 29 of the More Acc...

AI summary The Nova Scotia Energy Board is reviewing the Fee Recovery Mechanism of the Independent Energy System Operator of Nova Scotia under the More Access to Energy Act, 2024, as part of a regulatory proceeding.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: The More Access to Energy Act – and – IN THE MATTER OF: An Application by the Independent Energy System Operator of Nova Scotia made pursuant to Section 29 of the More Access to Energy Act for the...

AI summary The Nova Scotia Energy Board is reviewing the Fee Recovery Mechanism of the Independent Energy System Operator of Nova Scotia under the More Access to Energy Act. This proceeding involves an application for review of the operator's fee structure.

NOTICE OF INTERVENTION TO: The Nova Scotia Energy Board ("Board") AND TO: The Independent Energy System Operator of Nova Scotia ("IESO") - 1. The BERWICK ELECTRIC COMMISSION , the RIVERPORT ELECTRIC LIGHT COMMISSION , the TOWN OF MAHONE BA...

AI summary The Berwick Electric Commission, Riverport Electric Light Commission, Town of Mahone Bay, and Town of Antigonish (MEUs) seek intervenor status in the proceeding, as they purchase power from Nova Scotia Power Inc. and are impacted by the Spill Tariff rates and charges.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: The More Access to Energy Act – and – IN THE MATTER OF: An Application by the Independent Energy System Operator of Nova Scotia made pursuant to Section 29 of the More Access to Energy Act for the...

AI summary The Nova Scotia Energy Board is reviewing the Fee Recovery Mechanism of the Independent Energy System Operator of Nova Scotia under the More Access to Energy Act. This proceeding involves an application for the review of the fee structure.

NOTICE OF INTERVENTION OF: CONSUMER ADVOCATE TAKE NOTICE that the Consumer Advocate hereby intervenes in the above Application and proceeding. The Consumer Advocate represents the interests of residential ratepayers, who may be impacted by...

AI summary The Consumer Advocate intervenes in the proceeding, representing residential ratepayers who may be affected by the application. The Advocate will address issues raised by the Energy Board and any other issues that arise during the process. Counsel for the Consumer Advocate includes David Roberts and Michael Murphy from Pink Larkin, and John Wilson from Grid Strategies LLC.

NOTICE OF INTERVENTION Take Notice that NSP Maritime Link Incorporated (NSPML, Company) requests to intervene in this proceeding in accordance with Rule 11(1) of the Board Regulatory Rules. NSPML is a regulated public utility operating a 5...

AI summary NSP Maritime Link Incorporated (NSPML) is requesting to intervene in the proceeding, as it is directly affected by changes to the Open Access Transmission Tariff. NSPML is a regulated public utility operating a 500 MW transmission facility between Nova Scotia and Newfoundland and Labrador, and it seeks intervenor status in the hearing.

Request IR-1: - Please confirm that IESO intends to file its revenue requirement applications and proposed fees - and charges to recover its revenue requirement by the December 31st immediately preceding the - April 1st to March 31st fisca...

AI summary The request seeks confirmation from the IESO regarding its intention to file revenue requirement applications and associated fees by December 31st, prior to the start of the fiscal year from April 1st to March 31st.

Request IR-6: - Reference: Footnote 9 on pg.15 - IESO Nova Scotia notes that nothing is proposed to be charged to the Renewable to Retail - Licensed Retail Supplier (LRS) as part of the proposed fees, but that IESO Nova Scotia will apply -...

AI summary The document outlines several questions regarding the proposed fees for the Renewable to Retail program, focusing on how changes in the LRS's operational date may affect cash flow, assignment of load to NS Power, proration of fees, future applications, and discussions with the LRS.

Request IR-8: - Reference: Section 3.4 Set ISO Fees - On pg. 16, IESO Nova Scotia says it "will reevaluate the fee recovery mechanism once it is under - Phase 2 steady state operation, including consideration of whether tariffs under the O...

AI summary The document references a request (IR-8) regarding the reevaluation of the fee recovery mechanism by IESO Nova Scotia once the system reaches Phase 2 steady state operation, including consideration of whether existing tariffs are appropriate for fee recovery after ownership and operational control transfer.

Request IR-9: - Reference: Section 3.4 Set ISO Fees - On pg. 17 the IESO states: - The use of peak load (MW) aligns with current OATT practices for transmission asset cost recovery because the major cost driver for the transmission system...

AI summary The document outlines questions posed to the IESO regarding its future billing determinants once it takes over system operator functions, including whether peak load or a hybrid approach will be used, and how it plans to handle previously treated IRP and long-term planning costs from NS Power.

Request IR-10: - Reference: 4.1.1. A Note on Option 2b - The IESO notes that some stakeholders opposed option 2b (a consolidated charge to NS Power). - Is the IESO aware of why some stakeholders opposed option 2b?

AI summary The IESO is being asked if it is aware of the reasons some stakeholders opposed option 2b, which involves a consolidated charge to NS Power.

Request IR-13: - Reference: 4.2. The Proposed Fee Recovery Mechanism Load Allocation Adjustment - IESO Nova Scotia states: Given the Proposed Mechanism calculates its charges to LSEs based on their forecast proportional load served to Nova...

AI summary IESO Nova Scotia proposes a load allocation adjustment mechanism to ensure LSEs pay their proportional share of charges based on actual load served data. Questions are raised about the use of NS Power's fiscal year versus IESO's, potential misalignment in load allocation, revenue requirement changes, and data verification processes.

Request IR-14: - Reference: 4.2. The Proposed Fee Recovery Mechanism Annual Filing Framework - On pg. 36, IESO Nova Scotia states that it "has used actual load in 2025 to allocate the 2025/26 - revenue requirement and forecast 2026 loads t...

AI summary The text requests clarification on the proposed fee recovery mechanism annual filing framework, including the timing of the application, definition of 'actual load in 2025', methodology for forecasting 2026 loads, and whether the forecast will be adjusted based on actual loads served.

Request IR-16: - Reference: Section 5 Fee Calculation and Model - On pg. 42, IESO Nova Scotia says it believes it would be reasonable, if new fees for fiscal year - 2027/2028 are not approved by the Energy Board by March 31, 2027, to conti...

AI summary The IESO Nova Scotia requests that the Energy Board continue using 2026/2027 revenue requirement fees for the 2027/2028 fiscal year if new fees are not approved by March 31, 2027. The request asks why this approach is not premature and whether the proposed process would change if the application is delayed beyond December 1, 2026.

Request IR-17: - Reference: Appendix 1 ISO Cost Recovery Mechanism Jurisdictional Scan - On pg. 6, FTI states, "A significant portion of the ISO's costs are not incremental for consumers - as a result of having an ISO; rather, many of thes...

AI summary The text requests information from FTI regarding the incremental costs of having an IESO in Nova Scotia and FTI's understanding of NS Power's need for a control centre post-Phase 2 of the IESO transition. It references a jurisdictional scan and highlights concerns about non-incremental costs.

Request IR-21: - Reference: Appendix 2 IESO Enduring Fee Cost Recovery Recommendation Report - The report notes three end-use customers for option 1a or 1b: NS Power, the OATT MEUs, and - intertie traders. - a) Does this indicate that Inte...

AI summary The text presents a series of questions regarding the recovery of IESO enduring fee costs, focusing on whether intertie traders would bear these costs under different options and the potential impacts of charging them, including the possibility of welfare loss. It also requests clarification on how other ISOs handle intertie traders and whether FTI Consulting has studied the implications for Nova Scotia.

19 Request IR-7: - 20 (a) When the IESO-NS assumes ownership of the OATT and system 21 operation/dispatch functions in Phase 2, is it anticipated that (i) the billing 22 determinant used to allocate IESO-NS's revenue requirement to LSEs wi...

AI summary Request IR-7 asks whether the IESO-NS's billing determinant for revenue allocation will shift from energy consumption to peak load in Phase 2 and whether fee recovery should be integrated into the OATT or transmission revenue process rather than remaining a direct ISO-only charge.

1 Request IR-8: - 2 Reference: Application, Section 3.4, p.18, lines 1-7 and Section 4.2, p.27, lines 21-23. - 3 Preamble: The Proposed Mechanism allocates the fixed monthly charge among LSEs - 4 based on each LSE's proportionate share of...

AI summary Request IR-8 seeks analysis on the allocation of fixed monthly charges among LSEs based on annual energy consumption (MWh) rather than peak demand. It asks whether this approach produces different results, confirms the rationale for revenue predictability, and discusses the implications of a fixed charge versus volumetric approaches for LSEs and customers.

1 Request IR-1: 2 3 Please elaborate on Figures 10-13 by: - 4 (a) Providing an illustrative schedule for a future year for Options 1 and 2. It is suggested that 5 Fiscal Year 2027/28 be used to avoid complications involving the decision in...

AI summary The request asks for elaboration on Figures 10-13, including an illustrative schedule for future years, a timeline for filing and decision-making processes, and an explanation of the rationale for setting fees in specific fiscal quarters.

Request IR-2: Up (Compliance). Refer to M13007, Exhibit N-1, Application, Section 1, Executive Summary, page 3 of 48, lines 10-16, which states: IESO Nova Scotia proposes a fixed monthly direct charge to load serving entities ("LSEs") in N...

AI summary The document outlines a request (IR-2) concerning the allocation of a fixed monthly direct charge to load serving entities (LSEs) by IESO Nova Scotia, with questions about the methodology for allocating charges based on annual load served and discrepancies in credit calculations for Berwick Electric Commission.

Request IR-6: - Refer to M13007, Exhibit N-1, Application, Section 4.2 The Proposed Fee Recovery Mechanism, - which includes Figures 10 and Figure 12, illustrating the timeline for Revenue Requirement True- - Up Option 1 and Option 2, on p...

AI summary The text outlines several regulatory inquiries regarding the proposed fee recovery mechanism, load allocation adjustments, and ISO core costs. It asks about the impact of missed deadlines, verification methods, penalties for non-compliance, and the classification of interconnection study costs under core costs.

Request IR-9 Refer to M13007, Exhibit N-1, Application, Page 31 of 48, Lines 12-15 a) There is reference to carrying costs for under-recovery, but what would happen if there was over-recovery? Request IR-10 Refer to M13007, Exhibit N-1, Ap...

AI summary The text outlines several regulatory requests related to over-recovery, fiscal year references, true-up mechanisms, and discrepancies between requests in a proceeding. It raises questions about carrying costs, timing of payments, and references to figures and options in the application.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: THE PUBLIC UTILITIES ACT - and - IN THE MATTER OF: AN APPLICATION by the NOVA SCOTIA INDEPENDENT ENERGY SYSTEM OPERATOR made pursuant to Section 29 of the More Access to Energy Act for the review...

AI summary The Nova Scotia Energy Board is reviewing the Fee Recovery Mechanism of the Nova Scotia Independent Energy System Operator under the More Access to Energy Act, Section 29.

Request IR-1: - Reference: IESO Nova Scotia fee recovery mechanism application (page 4 of 48) - Independent Energy System Operator of Nova Scotia ("IESO Nova Scotia") states the following: - "At this stage, IESO Nova Scotia is responsible...

AI summary IESO Nova Scotia is seeking clarification on the costs and revenue requirements for its core activities, including system planning, energy resource procurement, and interconnection, while noting it does not yet have operational control of the grid or ownership of the Open Access Transmission Tariff.

Request IR-5: - Reference: IESO Nova Scotia fee recovery mechanism application (page 23 of 48) - IESO Nova Scotia states the following: "…IESO Nova Scotia will reevaluate its fee recovery - mechanism once it is under Phase 2 steady state o...

AI summary The document discusses IESO Nova Scotia's intention to reevaluate its fee recovery mechanism upon entering Phase 2 steady state operation, considering the OATT for fee recovery. It asks whether IESO Nova Scotia will file a separate application or address the matter in its annual revenue requirement application.

Request IR-9: - Reference: Appendix 1 Jurisdictional scan (PDF page 25) - FTI Consulting ("FTI") states the following: "As comparisons to Nova Scotia's power system being - composed primarily (currently, almost entirely) of a VIU, we have...

AI summary FTI Consulting references grids with large, privately-owned VIUs in its analysis of Nova Scotia's power system. The request asks to identify specific VIUs within ISO-NE and explains why NYISO's cost recovery mechanism was not reviewed.

Request IR-10: - Reference: Appendix 1 Jurisdictional scan (PDF page 27, Table 6) - Table 6 indicates that IESO Nova Scotia serves approximately 1 million people, with 5,200 km of - transmission, 3 GW of installed capacity, 2 GW of peak lo...

AI summary The text requests an explanation of how market size affects the selection of appropriate ISO comparators for designing IESO Nova Scotia's fee recovery mechanism and whether differences in scale impact the transferability of charge structures from comparator ISOs.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: THE MORE ACCESS TO ENERGY ACT and IN THE MATTER OF: An Application by the Independent Energy System Operator of Nova Scotia made pursuant to Section 29 of the More Access to Energy Act for the rev...

AI summary This document pertains to a regulatory proceeding under the More Access to Energy Act, involving the Independent Energy System Operator of Nova Scotia's application for the review of its Fee Recovery Mechanism.

From: [Karlie MacPherson](mailto:[email protected]) To: [Henwood, Crystal D](mailto:[email protected]); [Painting-MacLean, Kimberly](mailto:[email protected]) Cc: [Alissa Whalen](mailto:awhalen@...

AI summary This email is from Karlie MacPherson to several individuals and organizations regarding the refiled attachment for M13007 - IESO Nova Scotia - Fee Recovery Mechanism. The email includes a subject line and date, but no further details are provided about the content of the attachment or the context of the proceeding.

KARLIE MACPHERSON LEGAL ASSISTANT, GENERAL COUNSEL & CORPORATE SECRETAR Y c. (902) 940-6589 e. [email protected] w. [www.ieso-ns.ca](https://can01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.ieso-ns.ca%2F&data=05%7C02...

AI summary Karlie MacPherson, Legal Assistant at IESO Nova Scotia, sends a response to Information Requests related to the Fee Recovery Mechanism under matter M13007. The response was submitted to the Board by the deadline of September 22, 2026, and includes Excel versions for Industrial Group IRs 1 and 5.

October 13, 2026 VIA EMAIL 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: M13007 - Independent Energy System Operator of Nova Scotia Application f...

AI summary The Small Business Advocate (SBA) has reviewed materials related to the Independent Energy System Operator of Nova Scotia's application for the review of its Fee Recovery Mechanism and intends to participate in the remaining aspects of the hearing schedule without filing evidence.