N-52024-2025 Bates White FAM Audit Report - Redacted
10 passages
Fuel Manual NSPI's 700+ page Fuel Manual remains a useful tool for NSPI to hold its employees accountable to its policies and for the Board to hold NSPI accountable for its decisions related to fuel and power purchasing. Revision 13 of the...
AI summary The Fuel Manual, now in its 14th revision, serves as a key tool for NSPI to ensure accountability in fuel and power purchasing. It outlines policies, guidelines, and risk management practices, providing a framework for employees and stakeholders to assess NSPI's performance during the Audit Period.
O of Emera has delegated responsibility for the overall risk management program for Emera to the Executive Vice President Enterprise Risk, who is also the President and CEO of Peoples Gas System, Inc. Within the enterprise risk umbrella, N...
AI summary The document outlines the risk management structure at NSPI and Emera, including the delegation of responsibilities to various executives and committees, such as the Executive Vice President Enterprise Risk and the Credit Risk Oversight Committee (CROC). It also mentions updates to the Fuel Manual and the role of the Board of Directors in approving risk management policies.
In our prior audit report, we explained that tracking error is the primary cause of the need for inventory adjustments, particularly because NSPI's fuel is commingled with PHP's fuel in the boiler.309 We included a recommendation that NSPI...
AI summary The audit report highlights that tracking error is the main cause of inventory adjustments due to the commingling of NSPI's fuel with PHP's fuel in the boiler. NSPI responded by reviewing its inventory processes and expanding storage areas, and engaged with PHP to move inventory in response to specific events.
X.B.3.a. A Note About Root Cause Analyses This section includes discussion of several Root Cause Analyses, which were conducted by NSPI personnel (and occasionally supplemented by third-party experts/vendors). Root Cause Analyses explore t...
AI summary This section discusses the importance of Root Cause Analyses conducted by NSPI, highlighting their role in identifying issues and opportunities for improvement. It notes that these analyses are typically thorough and recommends that NSPI continue providing updates on the status of recommendations from these analyses to the Board.
X.B.3.g.i. Performance Test Results at Unit 6 During the Audit Period, NSPI conducted a performance test at Unit 6. The tests assessed the unit's real power capabilities at full load pursuant to NERC Standard MOD-025-2. The tests showed th...
AI summary During the audit period, NSPI conducted a performance test at Unit 6, revealing that its gross and net real power outputs were below the NPCC declared values, as per NERC Standard MOD-025-2.
Findings We provide our findings below, separated into four areas. We begin with purchased power, which includes long-term purchases, term RFPs, and short-term purchases (i.e., day-ahead and real-time transactions). We next discuss power e...
AI summary The findings are divided into four areas: purchased power, power export sales, affiliate transactions, and previous audit recommendations. The purchased power section covers long-term purchases, term RFPs, and short-term transactions. Power export sales are all short-term. Affiliate transactions include those with several entities. Previous audit recommendations are also discussed.
Quarter Slope Coefficient R-Squared Q1 2024 - 0.98 Q2 2024 - 0.89 Q3 2024 - 0.81 Q4 2024 - 0.87 Q1 2025 Q2 2025 - 0.96 Q3 2025 - 0.95 Q4 2025 - 0.87 Figure XIII-7: Portfolio-Level Regression Analysis Output 789
AI summary Figure XIII-7 presents a portfolio-level regression analysis output with slope coefficients and R-squared values for various quarters from 2024 to 2025, indicating the statistical relationship between variables over time.
XIV.A. Background A 2009 NSEB order approved the implementation of NSPI's Fuel Adjustment Mechanism ("FAM"). The FAM provides for an annual adjustment to recover fuel and purchased power costs on a more current basis, in order to address t...
AI summary The document discusses the Fuel Adjustment Mechanism (FAM) implemented by Nova Scotia Power Inc. (NSPI) in 2009, its accounting review by BDO for 2024 and 2025, and the impact of a 2025 cybersecurity incident on NSPI's financial reporting systems. The incident led to the loss of access to Oracle EBS and the use of alternative processes for financial reporting, including manual records and a new ERP system.
XIV.C. Conclusions Conclusion XIV-1: While the April 2025 cybersecurity incident increased the complexity and risk associated with the audit, it did not materially impair BDO's ability to perform the planned audit procedures or reach its c...
AI summary The audit by BDO concluded that the April 2025 cybersecurity incident did not significantly impact the audit of Nova Scotia Power Inc.'s Fuel Adjustment Mechanism (FAM). NSPI's accounting systems and processes for fuel and purchased power were found to be sufficient and compliant with policies. However, BDO recommended improving the audit trail for cash disbursements.
XV.B.4.c. The Identification of PHP Deviations from Schedule Under the ELIADC tariff, NS Power/NSPSO is required to track the timing, magnitude, and reason for deviations,844 In the case of NS Power or PHP's inability to follow the dispatc...
AI summary The document discusses the responsibility for tracking deviations from the schedule under the ELIADC tariff. It highlights that PHP, rather than NS Power/NSPSO, tracked these deviations, creating a conflict of interest and violating the tariff, particularly with Cause Code 5 (PDN), which penalizes PHP for deviations. The recommendation is that PHP should not be allowed to determine and record off-schedule deviations.