Topic:"Regulatory Approval Processes" in M03154

APPROVAL PROCESS - 01 The NSPI Controller will be responsible for the creation of financial policy for the Company. - 02 All new accounting policy, and significant changes to existing policy, will be presented to the UARB for its approval,...

AI summary The NSPI Controller oversees financial policy creation, requiring UARB approval and external auditor review for new or changed accounting policies. The NSPI Controller and Director of Internal Audit enforce policies, with suggestions for changes directed to the NSPI Controller.

ADMINISTRATION - 05 To exercise control over the contents and use of this manual, the following procedures will be followed: - a. This manual will be published on the NSPI intranet as read-only under Corporate Controller's Policies – "NSPI...

AI summary The document outlines procedures for managing the NSPI accounting policy manual, requiring UARB approval for updates and annual review by external auditors.

REORGANIZATION AND PRIVATIZATION - 08 During 1992, the Province of Nova Scotia passed legislation to facilitate the reorganization and privatization of the business of Nova Scotia Power Corporation (NSPC). In effecting the reorganization,...

AI summary The Province of Nova Scotia reorganized and privatized Nova Scotia Power Corporation (NSPC) in 1992 by transferring its assets and liabilities to Nova Scotia Power Inc. (NSPI) in exchange for shares and notes. NSPC was renamed Nova Scotia Power Finance Corporation (NSPFC) and retained long-term debt.

DEFINITION - 01 Rate base is comprised of the net value of certain assets upon which NSPI can earn a specified rate of return. The rate base and rate of return are approved by the UARB in compliance with the Public Utilities Act. - 02 The...

AI summary The rate base, defined as the net value of assets upon which NSPI can earn a specified rate of return, is approved by the UARB under the Public Utilities Act. The UARB periodically reviews both the rate base and the allowed rate of return.

DEFINITION 01 Purchase price discrepancy is the excess of the cost of acquired assets over the net amount assigned to the assets acquired and liabilities assumed as approved by the UARB.

AI summary The document defines 'purchase price discrepancy' as the difference between the cost of acquired assets and the net amount assigned to assets and liabilities approved by the UARB in a Nova Scotia regulatory proceeding.

CAPITAL CONTRIBUTIONS IN AID OF CONSTRUCTION - 6220

AI summary The document discusses capital contributions in aid of construction, focusing on the financial and regulatory aspects related to infrastructure development in Nova Scotia. It includes references to regulatory processes and entities involved in the proceedings.

POLICY - 02 Certain large operating expenditures incurred by NSPI may be considered material , and eligible for deferral and amortization, subject to the approval of the UARB. These costs are deferred and amortized over the approved period...

AI summary NSPI may defer and amortize certain large operating expenditures over an approved period, rather than expensing them in the year incurred, with the approval of the UARB. Materiality levels for major expenditures are outlined in Section 1560A.

June 30, 2010 Nancy McNeil Regulatory Affairs Officer/Clerk Nova Scotia Utility and Review Board 1601 Lower Water Street, 3 rd Floor Halifax, NS B3J 3S3 Re: NSPI Accounting Policy 6960 – Accounting for Financial Instruments and Hedges Dear...

AI summary This document is a letter from NSPI to the Nova Scotia Utility and Review Board regarding Accounting Policy 6960 – Accounting for Financial Instruments and Hedges, dated June 11, 2010.

Introduction of the Fuel Adjustment Mechanism The Fuel Adjustment Mechanism ("FAM") which came into effect January 1, 2009, governs the recovery of NSPI's fuel related costs. Subsequently, the Board approved an amendment to NSPI's Accounti...

AI summary The Fuel Adjustment Mechanism (FAM) was introduced in 2009 to govern the recovery of NSPI's fuel costs. An amendment to NSPI's accounting policy was approved in 2009 to align fuel costs with hedge settlements. NSPI proposes extending this policy to all hedges and requests the Board's approval by September 1, 2010.

July 9, 2010 Nancy McNeil Regulatory Affairs Officer/Clerk Nova Scotia Utility and Review Board 1601 Lower Water Street 3 rd Floor Halifax, NS B3J 3S3 Re: NSPI Accounting Policy and Procedures Manual Dear Ms. McNeil, On May 14, 2010, a cop...

AI summary Nova Scotia Power Inc. (NSPI) submitted an updated Accounting Policy and Procedures Manual to the Nova Scotia Utility and Review Board, incorporating changes to align with US GAAP effective January 1, 2011. KPMG is assisting with the transition, and Grant Thornton is reviewing the revised policies. NSPI plans to make three batch filings as the audit review progresses.

APPROVAL PROCESS - 01 The Nova Scotia Power Inc. ("NSPI") Controller will be responsible for the creation of financial policy and procedures for the Company. - 02 All new accounting policies, and significant changes to existing policies, w...

AI summary The approval process for financial policies at Nova Scotia Power Inc. involves the Controller, who is responsible for creating and approving policies, and the UARB, which must approve new or changed policies. The Director of Internal Audit also plays a role in enforcement.

REGULATION - 06 NSPI is regulated by the Nova Scotia Utility and Review Board ("UARB") pursuant to the Public Utilities Act. - 07 The Act gives the UARB supervisory powers over NSPI's operations and expenditures. Electricity rates in each...

AI summary NSPI is regulated by the Nova Scotia Utility and Review Board under the Public Utilities Act, which grants the UARB supervisory powers over NSPI's operations and expenditures. Electricity rates are subject to UARB approval.

PURCHASE PRICE DISCREPANCY - 6250

AI summary The document discusses a purchase price discrepancy related to a Nova Scotia Power Inc. (NSPI) transaction, likely involving accounting standards and regulatory oversight. It includes references to US GAAP and Nova Scotia Utility and Review Board (UARB) processes, suggesting a regulatory review of financial practices.

DEFINITION Purchase price discrepancy is the excess of the cost of acquired assets over the net of the amount assigned to assets acquired and liabilities assumed as approved by the Nova Scotia Utility and Review Board ("UARB") .

AI summary The document defines 'purchase price discrepancy' as the difference between the cost of acquired assets and the net value of assets and liabilities approved by the Nova Scotia Utility and Review Board.

POLICY 03 Common equity, defined as common shares and retained earnings, should be used to maintain an overall capital structure that is within the range(s) approved by the Nova Scotia Utility and Review Board ("UARB").

AI summary The text states that common equity, including common shares and retained earnings, should be used to maintain a capital structure within the range approved by the Nova Scotia Utility and Review Board.

BACKGROUND The Nova Scotia Utility and Review Board ("UARB") approved Nova Scotia Power Inc.'s ("NSPI's") Return on Equity ("ROE") range and common equity ratio for rate making purposes.

AI summary The Nova Scotia Utility and Review Board (UARB) approved Nova Scotia Power Inc.'s (NSPI) Return on Equity (ROE) range and common equity ratio for rate-making purposes, establishing parameters for determining fair returns in regulatory proceedings.

DEFINITION O1 Purchase price discrepancy is the excess of the cost of acquired assets over the net of the amount assigned to assets acquired and liabilities assumed as approved by the Nova Scotia Utility and Review Board ("UARB").

AI summary The purchase price discrepancy refers to the difference between the cost of acquired assets and the net value of assets acquired and liabilities assumed, as approved by the Nova Scotia Utility and Review Board.

GENERAL - 02 The present value of this estimated future expenditure is recognized as a liability with an equivalent amount added to the carrying amount of the associated fixed asset consistent with FASB ASC 410-20. - The Nova Scotia Utilit...

AI summary The text discusses the recognition of future expenditures related to asset removal as a liability and the adjustment of fixed assets under FASB ASC 410-20. It also mentions the UARB's depreciation order from 2004 and the treatment of differences between UARB-approved depreciation and GAAP calculations as a regulated asset.

POLICY - O5 Assets that are not both used and useful should be classified in one of the following categories: - a. Not used and not useful; - b. Not used but useful for standby purposes; or - c. Not used but useful for future service. Dele...

AI summary The policy outlines the classification of assets that are not both used and useful, and discusses depreciation practices for regulated assets. It also mentions the handling of significant write-offs and the deferral of operating costs for assets out of service, subject to UARB approval.

PREFERRED DIVIDENDS - 7320

AI summary The document discusses preferred dividends under matter 7320, including financial details and regulatory considerations. It includes references to Nova Scotia Power Inc. and the Nova Scotia Utility and Review Board, highlighting the importance of accounting standards and regulatory oversight in dividend calculations.

WORK ORDER PROCESS - 02 The following steps portray the capital asset cycle at Nova Scotia Power Inc. ("NSPI"). - a. Prepare budget item and enter into Power Plant 1 ("PP") as a Capital Item ("CI"); - Review and revise the CI item (if nece...

AI summary This section outlines the work order process at Nova Scotia Power Inc. (NSPI), detailing steps for preparing and approving capital items, including budgeting, internal approvals, and regulatory oversight by the Utility and Review Board (UARB).

IN THE MATTER OF THE PUBLIC UTILITIES ACT - and- IN THE MATTER OF A REQUEST by NOVA SCOTIA POWER INCORPORATED for Approval of changes to its Accounting Policy and Procedures Manual BEFORE: Murray E. Doehler, CA, P.Eng., Member DECISION DAT...

AI summary Nova Scotia Power Incorporated requested approval for changes to its Accounting Policy and Procedures Manual. The request was considered under the Public Utilities Act, and the changes were approved by Murray E. Doehler on December 20, 2010.

III ANALYSIS [13] Board approval is required for any changes to NSPl's accounting standards and policies before the amendments become effective. According to the Public Utilities Act, Chapter 380, s. 27, the Board may prescribe the form of...

AI summary The UARB requires Board approval for changes to NSPI's accounting standards and policies before they take effect, as stipulated by the Public Utilities Act, Chapter 380, s. 27.

Form of Books and records of utility 27 The Board may prescribe the forms of all books, accounts, papers and records required to be kept by any public utility and every public utility is required to keep and render its books, accounts, pap...

AI summary The document discusses the regulatory requirements for the form of books and records kept by public utilities, including Nova Scotia Power Inc.'s (NSPI) use of U.S. GAAP for financial reporting. It outlines the Board's approval of NSPI's exemption under Board Regulatory Rule 32 and highlights potential differences in accounting practices between U.S. GAAP and Canadian GAAP that may affect future reporting.

V COMPLIANCE FILING - [26] NSPI is requested to file the complete revised Manual for final review by the Board as soon as possible. - [27] An Order will issue upon receipt and approval of the compliance filing. DATED at Halifax, Nova Scoti...

AI summary The Nova Scotia Utility and Review Board requests NSPI to submit the revised Manual for final review. An order will be issued upon receipt and approval of the compliance filing.

ORDER WHEREAS Nova Scotia Power Incorporated ("NSPI"), by letter dated May 14, 2010, sought approval from the Nova Scotia Utility and Review Board (the "Board") for an Order approving amendments to NSPI's current accounting policies and pr...

AI summary Nova Scotia Power Incorporated (NSPI) sought approval to amend its accounting policies to align with US-GAAP starting in 2011. The Board reviewed the amendments, consulted a financial expert, and ultimately approved the changes. NSPI was ordered to file compliance filings and compare financial statements under both US-GAAP and C-GAAP for 2009 and 2010, but not for 2011, due to cost and clarity concerns.

APPROVAL PROCESS - 01 The Nova Scotia Power Inc. ("NSPI") Controller will be responsible for the creation of financial policy and procedures for the Company. - 02 All new accounting policies, and significant changes to existing policies, w...

AI summary The document outlines the approval process for financial policies at Nova Scotia Power Inc. (NSPI), including the roles of the Controller, the Utility and Review Board (UARB), and the Director of Internal Audit in creating, approving, and enforcing these policies.

COMPLIANCE 06 NSPI applies ASC 980 for specific rate regulated accounting policies which are approved by the UARB. Where there is no specific accounting policy identified in the Accounting Policy and Procedures Manual, NSPI will follow the...

AI summary NSPI applies ASC 980 for specific rate regulated accounting policies approved by the UARB, and follows U.S. GAAP for non-regulated entities when no specific policy is identified.

DEFINITION - 01 Rate base is comprised of the net value of certain assets upon which Nova Scotia Power Inc. ("NSPI") can earn a specified rate of return. The rate base and rate of return are approved by the Nova Scotia Utility and Review B...

AI summary The rate base is defined as the net value of certain assets upon which NSPI can earn a specified rate of return, approved by the UARB under the Public Utilities Act. The UARB periodically reviews both the rate base and the allowed rate of return.

BACKGROUND 01 The Nova Scotia Utility and Review Board ("UARB") approves Nova Scotia Power Inc.'s ("NSPl's") Return on Equity ("ROE") range and common equity ratio for rate making purposes.

AI summary The UARB is responsible for approving NSPI's ROE range and common equity ratio for rate-making purposes.

POLICIES - 02 NSPI files with the UARB its actual regulated return on equity and regulated average common equity ratio annually. - 03 The annual regulated return on equity is calculated by dividing the regulated net earnings for the curren...

AI summary NSPI files its regulated return on equity and average common equity ratio annually with the UARB. These metrics are calculated based on regulated financial statements, using specific definitions of equity and capitalization over the previous five quarters.

POLICY - 01 The Audit Committee of the Board of Directors should be comprised of a minimum of three Directors, none of whom are officers or employees of the Company. - 02 As directed by the Nova Scotia Utility and Review Board ("UARB") in...

AI summary The text outlines the composition and responsibilities of the Audit Committee of Nova Scotia Power Inc. (NSPI), including requirements for independence from Emera Inc. and compliance with audit directives from the Nova Scotia Utility and Review Board (UARB). It also details the committee's role in financial oversight and reporting.

POLICY 05 Section 6.11 of the affiliate Code of Conduct which is approved by the Nova Scotia Utility and Review Board ("UARB") states that the costs of corporate support services will be fairly allocated between NSPI and its affiliates. Th...

AI summary Section 6.11 of the affiliate Code of Conduct, approved by the Nova Scotia Utility and Review Board, outlines the fair allocation of corporate support service costs between NSPI and its affiliates based on the nature of the service.

INTRODUCTION - 01 The Chart of Accounts is updated on a regular basis and posted on the Nova Scotia Power Inc. ("NSPI") intranet. It is filed with the Nova Scotia Utility and Review Board ("UARB") annually. - 02 The Chart of Accounts is in...

AI summary The Chart of Accounts is regularly updated and posted on NSPI's intranet, with an annual filing to the UARB. It serves as a reference document containing definitions of segments and valid segment values for divisional expenditures.

GENERAL 01 Generic accounts simply provide a higher level summary of Nova Scotia Power Inc.'s ("NSPl's or the Company's") asset accounts than the break down furnished by the capital and intangible activities. The format conforms to the acc...

AI summary The text discusses the use of generic accounts by Nova Scotia Power Inc. (NSPI) for summarizing asset accounts, aligning with FERC standards in the U.S., and references a cross-reference table in NSPI's Accounting Policy and Procedures Manual for reporting to the UARB.

APPLICATION OF ADMINISTRATIVE OVERHEAD (CONTRACTED ASSETS) - 6235

AI summary The document discusses the application of administrative overhead to contracted assets within a regulatory proceeding. It includes financial and accounting-related considerations, such as cost recovery, capital expenditures, and regulatory compliance.

DEFINITION 01 Purchase price discrepancy is the excess of the cost of acquired assets over the net of the amount assigned to assets acquired and liabilities assumed as approved by the Nova Scotia Utility and Review Board ("UARB").

AI summary The document defines 'purchase price discrepancy' as the difference between the cost of acquired assets and the net amount assigned to assets acquired and liabilities assumed, as approved by the Nova Scotia Utility and Review Board.

POLICY - 01 Rate-regulated enterprises such as Nova Scotia Power Inc. ("NSPI") have to consider the impact of accounting decisions on revenue requirements and rate stability. If a regulatory authority approves the recovery of certain costs...

AI summary The text discusses how Nova Scotia Power Inc. (NSPI) accounts for costs and revenue requirements under regulatory oversight. It outlines the deferral and amortization of large operating expenditures, the use of a Fuel Adjustment Mechanism (FAM), and the application of ASC 980 for rate-regulated accounting policies approved by the Nova Scotia Utility and Review Board (UARB).

LIABILITIES INCOME TAXES PAYABLE - 8300 01 Includes all income taxes payable to both levels of government. 1 Deleted: August 10, 2006 & lt;sup>1 Please refer to NSPI Accounting Policy and Procedures Manual Section 5900. September 23,2010 M...

AI summary This document discusses the review of Nova Scotia Power Inc.'s accounting policies and procedures by Grant Thornton LLP under US GAAP for regulated entities. The review confirms that the policies align with US GAAP standards as of the date of the letter, with a note that future changes may require updates to the Manual.

rence. Included in the 24 sections listed in Appendix A (attached) is a copy of Accounting Policy 6960 Accounting for Financial Instruments and Hedging which was filed with the Board on June 30, 2010. The second and third submissions were...

AI summary Nova Scotia Power Inc. submitted updates to its Accounting Policy and Procedures Manual, aligning with US GAAP. A consultant from BOO Canada is finalizing a report incorporating all submissions, expected by October 22, 2010. The Board seeks confirmation on the process and has questions about the submitted materials.

December 16, 2010 Nancy McNeil Regulatory Affairs Officer/Clerk Nova Scotia Utility and Review Board 1601 Lower Water Street, 3 rd Floor PO Box 1692, Unit "M" Halifax, NS B3J 3S3 Re: Request Board Approval for Amendments to the Accounting...

AI summary NSPI is seeking approval from the Nova Scotia Utility and Review Board for amendments to the Accounting Policy and Procedures Manual to transition to US GAAP. The company argues that the transition is necessary to meet external auditor requirements and has received regulatory confirmation that the change does not conflict with the Public Utilities Act.

Introduction - Basis for use of US GAAP NSPI is entitled to prepare its financial statements in accordance with U.S. GAAP under applicable Canadian securities laws and under the Nova Scotia Companies Act (the "Companies Act") provided it i...

AI summary NSPI is permitted to use US GAAP for financial reporting under Canadian securities laws and the Nova Scotia Companies Act, as it is subject to U.S. securities laws. NSPI registered debt securities in the U.S. via a shelf registration statement under the Multijurisdictional Disclosure System.

u.s. Securities Act Registration On July 15,2010, NSPI registered certain of its debt securities under the U.S. Securities Act, by filing a shelf registration statement on Form F-9 with the SEC under the MJDS. Form F-9 is a form which allo...

AI summary NSPI registered certain debt securities under the U.S. Securities Act on July 15, 2010, by filing a shelf registration statement on Form F-9 with the SEC. The filing was accepted and can be viewed on the SEC's EDGAR system.

FINDINGS & CONCLUSIONS We would like to thank members of NSPI management for their cooperation and responsiveness to our questions in assessing the proposed changes. We reviewed the submissions and discussed the proposed changes to the Man...

AI summary The review of NSPI's proposed changes to the Accounting Manual found the Cost Allocation Policy to be comprehensive. Differences between CGAAP and US GAAP in areas like income taxes, employee benefits, and termination costs were noted. The report confirms that no unreasonable practices or unfair advantages were identified.

IN THE MATTER OF THE PUBLIC UTILITIES ACT - and- IN THE MATTER OF A REQUEST by NOVA SCOTIA POWER INCORPORATED for Approval of changes to its Accounting Policy and Procedures Manual BEFORE: Murray E. Doehler, CA, P.Eng., Member DECISION DAT...

AI summary Nova Scotia Power Incorporated requested approval for changes to its Accounting Policy and Procedures Manual. The request was considered under the Public Utilities Act, and the changes were approved by Murray E. Doehler on December 20, 2010.

III ANALYSIS [13] Board approval is required for any changes to NSPl's accounting standards and policies before the amendments become effective. According to the Public Utilities Act, Chapter 380, s. 27, the Board may prescribe the form of...

AI summary The UARB requires Board approval for changes to NSPI's accounting standards and policies, as stipulated by the Public Utilities Act, Chapter 380, s. 27, which allows the Board to prescribe the form of all books and accounts.

Form of Books and records of utility 27 The Board may prescribe the forms of all books, accounts, papers and records required to be kept by any public utility and every public utility is required to keep and render its books, accounts, pap...

AI summary The document outlines the Board's authority over the form of books and records for public utilities, referencing an Order from 2010 that exempted NSPI from certain regulatory rules related to U.S. GAAP. It also discusses the implications of NSPI's SEC registration and the Board's findings regarding US GAAP financial reporting, including potential differences in accounting treatments and recommendations for future monitoring.

IV FINDINGS [19] The publication of IFRS is under the authority of the International Accounting Standard Board ("IASB"). Regulated entities, such as NSPI, have the ability to recognize those assets and liabilities ("regulated assets and li...

AI summary The document discusses the regulatory and accounting challenges faced by Nova Scotia Power Inc. (NSPI) due to the transition from C-GAAP to IFRS. It highlights the lack of clarity on recognizing regulated assets and liabilities under IFRS, leading to potential financial statement inconsistencies. The UARB has approved NSPI's request for an exemption from C-GAAP and ordered the filing of annual financial statements under both C-GAAP and US-GAAP for the next two years.

V COMPLIANCE FILING - [26] NSPI is requested to file the complete revised Manual for final review by the Board as soon as possible. - [27] An Order will issue upon receipt and approval of the compliance filing. DATED at Halifax, Nova Scoti...

AI summary NSPI is required to file a complete revised Manual for final review by the Board. An order will be issued upon receipt and approval of the compliance filing.

January 11, 2011 Ms. Nancy McNeil Regulatory Affairs Officer/Clerk Nova Scotia Utility and Review Board 1601 Lower Water Street, 3 rd Floor PO Box 1692, Unit "M" Halifax, NS B3J 3S3 Re: UARB Approval of Amendments to NSPI's Accounting Poli...

AI summary This document is a submission by NSPI to the Nova Scotia Utility and Review Board, providing an updated version of their Accounting Policy and Procedures Manual following a Board decision dated December 20, 2010. The submission includes a copy of the revised manual and contact information for further inquiries.

APPROVAL PROCESS - 01 The Nova Scotia Power Inc. ("NSPI") Controller will be responsible for the creation of financial policy and procedures for the Company. - 02 All new accounting policies, and significant changes to existing policies, w...

AI summary The document outlines the approval process for financial policies at Nova Scotia Power Inc. (NSPI), including the roles of the NSPI Controller, the Utility and Review Board (UARB), and external auditors in approving and reviewing new or revised policies.

REGULATION - 06 NSPI is regulated by the Nova Scotia Utility and Review Board ("UARB") pursuant to the Public Utilities Act. - 07 The Act gives the UARB supervisory powers over NSPI's operations and expenditures. Electricity rates in each...

AI summary NSPI is regulated by the Nova Scotia Utility and Review Board under the Public Utilities Act, which grants the UARB supervisory powers over NSPI's operations and expenditures, including the approval of electricity rates.

DEFINITION - 01 Rate base is comprised of the net value of certain assets upon which Nova Scotia Power Inc. ("NSPI") can earn a specified rate of return. The rate base and rate of return are approved by the Nova Scotia Utility and Review B...

AI summary The rate base refers to the net value of certain assets upon which Nova Scotia Power Inc. can earn a specified rate of return, as approved by the Nova Scotia Utility and Review Board in accordance with the Public Utilities Act. The rate base and allowed rate of return are periodically reviewed by the UARB.

INTRODUCTION - 01 The Chart of Accounts is updated on a regular basis and posted on the Nova Scotia Power Inc. ("NSPI") intranet. It is filed with the Nova Scotia Utility and Review Board ("UARB") annually. - 02 The Chart of Accounts is in...

AI summary The Chart of Accounts is regularly updated and made available on NSPI's intranet, with an annual filing to the UARB. It serves as a reference document detailing segment definitions and valid values for divisional expenditures.

GENERAL 01 Generic accounts simply provide a higher level summary of Nova Scotia Power Inc.'s ("NSPI's or the Company's") asset accounts than the break down furnished by the capital and intangible activities. The format conforms to the acc...

AI summary The document explains that generic accounts provide a high-level summary of NSPI's asset accounts, following FERC standards. A cross-reference table in NSPI's Accounting Policy and Procedures Manual 3350A maps these accounts to internal tracking activities for the UARB.

POLICIES - 03 Differences between actual fuel costs and amounts recovered from customers accumulate in the FAM Regulatory Asset (Liability) included in "Other Assets" or "Other Liabilities" on the Balance Sheet and subsequently become an a...

AI summary This section outlines the accounting and regulatory treatment of the Fuel Adjustment Mechanism (FAM) in Nova Scotia. It describes how differences between actual and recovered fuel costs are tracked in a FAM Regulatory Asset or Liability, how interest is applied, and how future income tax impacts are recorded. The FAM balance is adjusted annually and approved by the UARB for rate changes.

Coal Pier (082)

AI summary The document pertains to the Coal Pier (082) proceeding, which involves regulatory matters related to Nova Scotia's energy sector. It includes references to utility and review board processes, financial accounting standards, and energy regulation.

WORK ORDER PROCESS - 02 The following steps portray the capital asset cycle at Nova Scotia Power Inc. ("NSPI"). - a. Prepare budget item and enter into Power Plant 1 ("PP") as a Capital Item ("CI"); - b. Review and revise the CI item (if n...

AI summary This section outlines the work order process at Nova Scotia Power Inc. (NSPI), detailing the steps for preparing and approving capital items, including budgeting, review by the Investment Review Team (IRT), and regulatory approval by the Nova Scotia Utility and Review Board (UARB).

PURCHASE PRICE DISCREPANCY - 6250

AI summary The document references a purchase price discrepancy matter numbered 6250, potentially involving Nova Scotia Power Inc. and the Nova Scotia Utility and Review Board. The context suggests a regulatory proceeding, though the detailed content is not provided in the text.

DEFINITION 01 Purchase price discrepancy is the excess of the cost of acquired assets over the net of the amount assigned to assets acquired and liabilities assumed as approved by the Nova Scotia Utility and Review Board ("UARB"). .

AI summary The text defines 'purchase price discrepancy' as the difference between the cost of acquired assets and the net amount assigned to assets acquired and liabilities assumed, as approved by the Nova Scotia Utility and Review Board.

POLICY 02 Preferred shares could be issued in series to maintain an overall capital structure that is within the ranges approved by the Nova Scotia Utility and Review Board ("UARB").

AI summary The text discusses the potential issuance of preferred shares in series to maintain a capital structure within the ranges approved by the Nova Scotia Utility and Review Board.

ncial numbers will be available in both C-GAAP and US-GAAP for the Board and interested parties. That should provide the opportunity for parties to gain assurance that the adjustments are transparent. Tracking and recording only US-GAAP ba...

AI summary Nova Scotia Power Inc. (NSPI) requests the Board to accept restated 2009 and 2010 financial statements under US-GAAP as sufficient for comparability, arguing that maintaining C-GAAP for 2011 would create confusion and increase costs. NSPI highlights the benefits of full US-GAAP adoption for transparency and understanding of regulated statements.

Via Email: [email protected] Mr. Eric Ferguson Director, Regulatory Affairs Nova Scotia Power Inc. 14th Floor, Barrington Tower P. O. Box 910, Scotia Square Halifax, NS B3J 2W5 Dear Mr. Ferguson: Nova Scotia Power Inc. - Accounting...

AI summary Nova Scotia Power Inc. submitted a compliance filing for its Accounting Policy and Procedures Manual, which the Board reviewed and identified several discrepancies. The Board accepts some changes but requests revisions to specific sections, particularly regarding terminology and tolerance levels, and seeks further comments from NSPI before issuing an order.

RECEIVED FEB 0 4 2011 February 4, 2011 Ms. Nancy McNeil Regulatory Affairs Officer/Clerk Nova Scotia Utility and Review Board 1601 Lower Water Street, 3 rd Floor Halifax, NS B3J 3P6 Nova Scotia Utility and Review Board Dear Ms. McNeil: Re:...

AI summary The document discusses the Nova Scotia Power Inc. (NSPI) submission of corrected accounting policy sections (5300 and 6200) in response to the Nova Scotia Utility and Review Board's (UARB) concerns regarding capital project approval tolerances and final cost approvals. NSPI confirms the corrected versions of the policies and explains that overspending on projects under $1 million will be reported quarterly, while larger projects require final cost approval.

ORDER WHEREAS Nova Scotia Power Incorporated ("NSPI"), by letter dated May 14, 2010, sought approval from the Nova Scotia Utility and Review Board (the "Board") for an Order approving amendments to NSPI's current accounting policies and pr...

AI summary Nova Scotia Power Incorporated (NSPI) sought approval to amend its accounting policies to align with US-GAAP. After a review by a Consultant and responses to information requests, the Board approved the amendments and required NSPI to file compliance filings comparing US-GAAP and C-GAAP for 2009 and 2010. NSPI requested an exception for 2011 to reduce costs and avoid market confusion.

APPROVAL PROCESS - 01 The Nova Scotia Power Inc. ("NSPI") Controller will be responsible for the creation of financial policy and procedures for the Company. - 02 All new accounting policies, and significant changes to existing policies, w...

AI summary The document outlines the approval process for financial policies at Nova Scotia Power Inc., specifying the Controller's role in creating and enforcing policies, and the need for approval from the Nova Scotia Utility and Review Board and external auditors.

ADMINISTRATION - 05 To exercise control over the contents and use of this manual, the following procedures will be followed: - a. This manual will be published on the NSPI intranet as read-only under Corporate Controller's Policies - "NSPI...

AI summary The administration section outlines procedures for controlling and updating the NSPI Accounting Policy & Procedures Manual, including publication on the NSPI intranet, approval by the UARB, and annual review by external auditors.

DEFINITION - 01 Rate base is comprised of the net value of certain assets upon which Nova Scotia Power Inc. ("NSPI") can earn a specified rate of return. The rate base and rate of return are approved by the Nova Scotia Utility and Review B...

AI summary The rate base is defined as the net value of assets upon which NSPI can earn a specified rate of return, approved by the UARB under the Public Utilities Act. The UARB periodically reviews both the rate base and the allowed rate of return.

POLICIES - 02 NSPI files with the UARB its actual regulated return on equity and regulated average common equity ratio annually. - 03 The annual regulated return on equity is calculated by dividing the regulated net earnings for the curren...

AI summary NSPI annually files its regulated return on equity and average common equity ratio with the UARB. These metrics are calculated using regulated financial statements, with equity defined as common shares plus regulated retained earnings, excluding preferred shares and AOCI.

POLICY - 01 The Audit Committee of the Board of Directors should be comprised of a minimum of three Directors, none of whom are officers or employees of the Company. - 02 As directed by the Nova Scotia Utility and Review Board ("UARB") in...

AI summary The text outlines the composition and responsibilities of the Audit Committee of Nova Scotia Power Inc. (NSPI), as directed by the UARB. It specifies that the committee must be composed of at least three non-officer Directors, use a different audit firm than Emera Inc., and meet regularly with key management and auditors to ensure financial controls and reporting standards are maintained.

POLICY 05 Section 6.11 of the affiliate Code of Conduct which is approved by the Nova Scotia Utility and Review Board ("UARB") states that the costs of corporate support services will be fairly allocated between NSPI and its affiliates. Th...

AI summary Section 6.11 of the affiliate Code of Conduct, approved by the Nova Scotia Utility and Review Board, outlines the fair allocation of corporate support service costs between NSPI and its affiliates, with the allocation factor depending on the nature of the service.

INTRODUCTION - 01 The Chart of Accounts is updated on a regular basis and posted on the Nova Scotia Power Inc. ("NSPI") intranet. It is filed with the Nova Scotia Utility and Review Board ("UARB") annually. - 02 The Chart of Accounts is in...

AI summary The document discusses the Chart of Accounts used by Nova Scotia Power Inc., which is regularly updated and filed with the Nova Scotia Utility and Review Board annually. It serves as a reference for segment definitions and valid values.

GENERAL 01 Generic accounts simply provide a higher level summary of Nova Scotia Power Inc.'s ("NSPl's or the Company's") asset accounts than the break down furnished by the capital and intangible activities. The format conforms to the acc...

AI summary The document discusses the use of generic accounts by Nova Scotia Power Inc. (NSPI) for summarizing asset accounts, which aligns with the Federal Energy Regulatory Commission's (FERC) format. A cross-reference table in NSPI's Accounting Policy and Procedures Manual 3350A is mentioned for reporting to the Nova Scotia Utility and Review Board (UARB).

COST COMPONENTS AND ELEMENTS .. 6140

AI summary The text discusses cost components and elements related to a regulatory proceeding, focusing on financial and operational aspects of utility services. It includes references to accounting standards, regulatory bodies, and cost adjustment mechanisms.

Computer Hardware &Operating Software (072)

AI summary The section titled 'Computer Hardware & Operating Software (072)' outlines the accounting and regulatory considerations related to computer hardware and operating software used in the utility sector, including references to accounting standards and regulatory bodies.

APPLICATION OF ADMINISTRATIVE OVERHEAD (CONTRACTED ASSETS) - 6235

AI summary The document pertains to the application of administrative overhead for contracted assets, likely involving Nova Scotia Power and the Nova Scotia Utility and Review Board. It references accounting standards, financial systems, and regulatory processes relevant to the management and evaluation of capital expenditures and asset-related costs.