Topic:"Regulatory Oversight" in M13007

1 IESO Nova Scotia has conducted a thorough regulatory stakeholder engagement process during 21 fee recovery mechanism in conjunction with expert consultants FTI and Power Advisory. FTI 22 conducted jurisdictional research and developed th...

AI summary IESO Nova Scotia has developed a fee recovery mechanism with input from consultants FTI and Power Advisory. The mechanism is based on the NSEB-approved revenue requirement, allocated by forecast annual proportionate load served by each LSE, and includes a true-up based on actual costs. The application details the mechanism's attributes and how jurisdictional research influenced its design.

1 Figure 3 – ISO Core Costs Flow Chart 2 - Source: FTI Consulting Analysis.[6](#page-10-0) 3 - 4 Notes: DTS = Demand Transmission Service, BSUoS = Balancing Services Use of System, - 5 GMC = Grid Management Charge, NEM National Electricity...

AI summary Figure 3 presents an ISO Core Costs Flow Chart, which outlines the flow of costs within the energy system. The chart is based on FTI Consulting's analysis and includes notes on terms such as DTS, BSUoS, and GMC. The research conducted by FTI has influenced the design of the Proposed Mechanism.

- 2 known as the Municipal Electric Utilities (MEUs)). MEUs registered as accredited market - 3 participants in Nova Scotia are as follows: - 4 Town of Berwick Electric Commission - 5 Town of Mahone Bay - 6 Town of Antigonish - 7 Riverport...

AI summary The text lists the Municipal Electric Utilities (MEUs) registered as accredited market participants in Nova Scotia, including the Town of Berwick Electric Commission, the Town of Mahone Bay, the Town of Antigonish, and the Riverport Electric Light Commission. NSPI and the MEUs collectively serve all load in Nova Scotia and pass their costs on to all other end-users.

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.

4.1. 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.

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.

Flexibility for future changes Adaptable to changes, such as: - Competitive transmission - More IESO roles (energy/capacity markets) - Shift in MP landscape (e.g. more RtR participation, or special PPAs)

AI summary The text discusses flexibility for future changes in the energy sector, including competitive transmission, expanded roles for the Independent Energy System Operator (IESO), and shifts in the market participant (MP) landscape such as increased participation in real-time retail (RtR) or special power purchase agreements (PPAs).

Figure 7 – Options Evaluation 3 Source: FTI Analysis. IESO Nova Scotia has not yet transitioned to 'Phase 2' operation functions, meaning that it does not yet have operational control of the grid nor ownership of the OATT until certain sec...

AI summary IESO Nova Scotia has not transitioned to 'Phase 2' operations and therefore cannot implement certain methodologies independent of the OATT or NSPI. It will reassess its fee recovery mechanism once it reaches Phase 2 steady state operations.

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.

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.

Benchmarking While a primary, underlying purpose of an ISO is to independently operate the bulk electricity system as a non-profit entity, the roles and responsibilities of an ISO are not rigidly defined, and the range of functions an ISO...

AI summary The document discusses the benchmarking of the Nova Scotia Independent Energy System Operator (IESO NS) against various ISOs globally, highlighting that no existing ISO is entirely comparable but several share certain characteristics. It outlines the selection of Canadian, US, and international ISOs for comparison based on four key characteristics.

CHARACTERISTIC STRUCTURE JURISDICTION AGE RESOURCE MIX Large Incumbent(s) Single Province within a Nation Newly Restructured High Renewables Source: FTI Analysis, logos from ISO websites. 2 We describe the roles and responsibilities of a r...

AI summary The document discusses the structure and jurisdiction of a large incumbent in a newly restructured province with a high renewable resource mix, referencing an FTI Business Case Report that details the roles and responsibilities of existing ISOs and their costs compared to IESO NS.

[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.

42 Grid management charges are based on scheduled + RT instructed volumes for market services charges, but delivered volumes for system operations charges. Types of Charges - Charges that also recover non-Core Costs are marked ( ) Load Gen...

AI summary Grid management charges (GMC) are calculated by the CAISO based on volumes and activity, with different components recovering various costs such as system operations, balancing services, and wholesale market fees. These charges apply to load, generation, and intertie traders, while transmission owners are not directly charged.

Relevance to Nova Scotia The market participants in [Figure 5](#page-22-0) represent those applicable across the various benchmarking group ISOs described above. Because many of those grids run wholesale energy and other markets not presen...

AI summary The document discusses the relevance of market participants from various ISOs to Nova Scotia, noting that not all are applicable due to differences in market structures. It highlights the need for the IESO in Nova Scotia to design its own charging mechanism based on these considerations.

Appendix 2: Overview of ISOs selected for benchmarking In this appendix, we provide an overview of the ISOs that were selected for benchmarking in this jurisdictional scan. The ISOs selected for benchmarking were chosen to represent a vari...

AI summary This appendix outlines the ISOs selected for benchmarking in a jurisdictional scan, highlighting IESO NS's defining characteristics and how they influence the selection of peer ISOs for comparison, as detailed in Figure 6.

1) Utility structure: As comparisons to Nova Scotia's power system being composed primarily (currently, almost entirely) of a VIU, we have included several grids with large incumbent structures. The CAISO and ISO-NE have large, privately-o...

AI summary The text compares Nova Scotia's vertically integrated utility (VIU) structure to other regions, noting that CAISO, ISO-NE, and Ontario's OPG have similar structures. It explains that in some jurisdictions, legal or functional separation of asset classes has occurred, though transmission planning remains with the utility.

emains primarily with the utility. 56 Most VIUs in Canada are government-owned, e.g., BC Hydro, Manitoba Hydro, SaskPower, New Brunswick Power and Hydro-Québec.

AI summary The text discusses the structure of vertically integrated utilities (VIUs) in Canada, noting that most are government-owned, with examples such as BC Hydro, Manitoba Hydro, and Hydro-Québec.

- 2) Jurisdictional footprint: Spanning one province, IESO NS is similar to the AESO and IESO Ontario, each of which can focus on the policy objectives of one provincial government with minimal federal involvement. In contrast, federal pol...

AI summary The text discusses the jurisdictional footprint, age, and resource mix of the Nova Scotia Independent Energy System Operator (IESO NS), comparing it with other ISOs like AESO, IESO Ontario, CAISO, and AEMO. It highlights the differences in governance, the transition from coal to renewables, and the challenges of managing inverter-based resources.

1.Introduction Nova Scotia Independent Energy System Operator ("IESO NS" or the "IESO") was recently established as the independent system operator ("ISO") of Nova Scotia, taking over the system planning and procurement functions of the in...

AI summary The IESO NS, newly established as Nova Scotia's independent system operator, needs an enduring mechanism to recover its Core Costs. FTI Consulting has been engaged to recommend a long-term solution, considering cross-jurisdictional benchmarks and existing arrangements in Nova Scotia. Four potential mechanisms are proposed, including introducing a new schedule in the OATT, embedding costs in the transmission revenue requirement, introducing a Direct Charge, or a direct fee to NSP.

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.

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.

Flexibility for future changes - Adaptable to changes, such as: - Competitive transmission - More IESO roles (energy/capacity markets) - Shift in MP landscape (e.g. more RtR participation, or special PPAs)

AI summary The text discusses the need for adaptability in the energy sector, highlighting the importance of flexibility in response to changes such as competitive transmission, expanded IESO roles, and shifts in the market participant landscape, including increased Renewable-to-Retail participation and special Power Purchase Agreements.

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.

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.

Nova Scotia Independent Energy System Operator (IESO Nova Scotia) Responses to Consumer Advocate (CA) Information Requests

AI summary This document outlines the responses provided by the Nova Scotia Independent Energy System Operator (IESO Nova Scotia) to information requests from the Consumer Advocate (CA). It details the information shared in response to inquiries related to energy system operations and consumer interests.

Date Filed: September 22, 2026 IESO Nova Scotia (IG) IR - 9 Page 3 of 3

AI summary The document is a regulatory proceeding filing from September 22, 2026, involving the IESO Nova Scotia (IG) IR - 9. It appears to be a continuation of a proceeding, though no specific details or arguments are provided in the text.

Nova Scotia Independent Energy System Operator (IESO Nova Scotia) Responses to London Economics International LLC (LEI) Information Requests

AI summary The document outlines the responses provided by the Nova Scotia Independent Energy System Operator (IESO Nova Scotia) to information requests made by London Economics International LLC (LEI). It contains details related to the energy system operations and regulatory processes in Nova Scotia.

Terms of Settlement IESO Fee Recovery Settlement Terms Co t A l lo t io s ca n G I 4. W t t ha t: e re q ue s O ) N S P I ( I E S i t h l ic i t a t w i t h a or w ex p g re em en N S P I ) be ire d, te ly i t h re q c on m p or an eo us u...

AI summary The document outlines terms of settlement regarding the IESO fee recovery, specifying that the IESO's licensing agreement with NSP includes provisions for fee recovery from customers. It also mentions that the IESO's licensing agreement includes time-based assessments and that the SS O had prepared an indicative NP I rate model based on the IESO's costs.

- 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.

NON-CONFIDENTIAL 15 Response IR – 10 a) FTI does not consider the size of a market to play a role in determining whether a given ISO is an appropriate comparator. As shown in FTI's Jurisdictional Scan, [1](#page-45-0) the Benchmarking Grou...

AI summary FTI Consulting argues that the size of a market is not a factor in selecting appropriate ISO comparators for IESO Nova Scotia, emphasizing shared characteristics such as structure, jurisdiction, age, and resource mix with the Benchmarking Group.

Nova Scotia Independent Energy System Operator (IESO Nova Scotia) Responses to Municipal Electric Utilities (MEU) Information Requests

AI summary Nova Scotia Independent Energy System Operator (IESO Nova Scotia) has responded to information requests from Municipal Electric Utilities (MEU), providing details related to energy system operations and regulatory matters.

Request IR - 2 - Reference: Section 3.1 Jurisdictional Research - On pg. 10, lines 21-22, it refers to other system charges as "transmission or energy balancing costs". - Please confirm that ancillary services are also included.

AI summary The text requests clarification on whether ancillary services are included in other system charges, which are described as 'transmission or energy balancing costs' on page 10, lines 21-22.

- On pg. 13, IESO Nova Scotia states that "…the most common type of market participant charged - ISO fees was LSEs." Please confirm that while all jurisdictions shown in Table 1, p.11, Appendix - 1 show charges to load serving entities and...

AI summary The document discusses the types of market participants charged ISO fees, noting that load serving entities are the most common, while also mentioning that many jurisdictions include charges for generation and intertie traders.

Response IR - 3 Yes, based on FTI's Jurisdictional Scan, most ISOs in the Benchmarking Group charge generation and intertie traders for ISO Core Costs, in addition to charging LSEs and transmission-connected load. However, two important po...

AI summary Based on FTI's Jurisdictional Scan, most ISOs in the Benchmarking Group charge generation and intertie traders for ISO Core Costs, in addition to LSEs and transmission-connected load. However, these ISOs have additional roles beyond IESO Nova Scotia's Phase 1 role, such as running wholesale electricity markets and market surveillance, with costs typically allocated to other market participants as a small share of total ISO costs.

Response IR - 5 - a) Potential market participants were identified based on 1) FTI's jurisdictional research - identifying Load Serving Entities (LSEs) as the most common market participant charged - IESO fees and 2) the Nova Scotia Power...

AI summary The document outlines the identification of potential market participants for IESO Nova Scotia's fees, based on FTI's jurisdictional research and the Nova Scotia Power System Operator's list of Accredited Market Participants. Load Serving Entities (LSEs) are noted as the most commonly charged participants.

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.

Response IR - 8 Directionally, IESO Nova Scotia anticipates Phase 2 steady state operation to be reached for sometime in the 2028/2029 fiscal year. The in-service date of IESO Nova Scotia's Phase 2 Control Centre, for example, is anticipat...

AI summary IESO Nova Scotia anticipates reaching Phase 2 steady state operation by 2028/2029, with the Phase 2 Control Centre expected to be in service in March 2028. Once ownership of the Open Access Transmission Tariff (OATT) is obtained, IESO Nova Scotia plans to reevaluate the OATT and explore its use as a basis for a fee recovery mechanism.

proposal to use historical actuals as a proxy instead. Nova Scotia Independent Energy System Operator (IESO Nova Scotia) Responses to Nova Scotia Energy Board (NSEB) Information Requests

AI summary The Nova Scotia Independent Energy System Operator (IESO Nova Scotia) has responded to information requests from the Nova Scotia Energy Board (NSEB), proposing the use of historical actuals as a proxy for certain data.

Nova Scotia Independent Energy System Operator (IESO Nova Scotia) Responses to Nova Scotia Energy Board (NSEB) Information Requests

AI summary This document outlines the responses provided by the Nova Scotia Independent Energy System Operator (IESO Nova Scotia) to information requests from the Nova Scotia Energy Board (NSEB). It reflects the exchange of information between these two entities in a regulatory context.

Nova Scotia Independent Energy System Operator (IESO Nova Scotia) Responses to Nova Scotia Energy Board (NSEB) Information Requests

AI summary This document outlines the responses provided by the Nova Scotia Independent Energy System Operator (IESO Nova Scotia) to information requests from the Nova Scotia Energy Board (NSEB). It reflects the exchange of information between regulatory bodies in the context of energy system operations.

NON-CONFIDENTIAL burden (and cost) of introducing new entity(ies) to collect load forecasts from, and issue invoices to. Additionally, as noted previously, intertie traders will still be captured for certain operational costs and transmiss...

AI summary The text discusses the potential burden and cost of introducing new entities to collect load forecasts and issue invoices, noting that intertie traders are already subject to certain operational costs under the existing OATT. It also considers the implications of charging intertie traders for ISO Core Costs, suggesting that while this may be justified on 'fair burden-sharing' grounds, it may not be economically efficient.

NON-CONFIDENTIAL 97 d) As shown in the FTI Jurisdictional Scan, many of the benchmarked ISOs (including ISO 98 NE, CAISO, IESO Ontario and the AESO) charge ISO Core Costs to intertie traders.6 For 99 more detail, see Table 4 of Appendix 1,...

AI summary The text discusses how ISOs in various jurisdictions, including IESO Ontario and AESO, charge intertie traders for ISO Core Costs. It suggests that not charging these traders may shift costs to domestic load and could be politically less acceptable. The text also speculates that if export volumes increase or IESO Nova Scotia takes on additional functions, charging intertie traders could become more relevant.

37 Figures 10 and 11 provided as follows: 38 Nova Scotia Independent Energy System Operator (IESO Nova Scotia) Responses to Nova Scotia Energy Board (NSEB) Information Requests

AI summary The document presents responses from the Nova Scotia Independent Energy System Operator (IESO Nova Scotia) to information requests from the Nova Scotia Energy Board (NSEB). The context involves regulatory proceedings and the exchange of information related to energy system operations.

Nova Scotia Independent Energy System Operator (IESO Nova Scotia) Responses to Small Business Advocate (SBA) Information Requests

AI summary This document outlines the responses provided by IESO Nova Scotia to information requests from the Small Business Advocate (SBA). It highlights the information shared in response to queries regarding energy system operations and related matters.

Nova Scotia Independent Energy System Operator (IESO Nova Scotia) Responses to Small Business Advocate (SBA) Information Requests

AI summary The document outlines the responses provided by the Nova Scotia Independent Energy System Operator (IESO Nova Scotia) to information requests made by the Small Business Advocate (SBA). It highlights the interaction between these two entities in the context of regulatory proceedings.

Nova Scotia Independent Energy System Operator (IESO Nova Scotia) Responses to Small Business Advocate (SBA) Information Requests

AI summary The document outlines IESO Nova Scotia's responses to information requests made by the Small Business Advocate (SBA). It reflects the regulatory process and stakeholder engagement in addressing concerns raised by the SBA regarding energy system operations.

IESO Nova Scotia is the recently established independent system operator for Nova Scotia.[1](#page-5-1) Under Phase 1 of the transition contemplated by the More Access to Energy Act ("MAEA"), IESO Nova Scotia has assumed the system plannin...

AI summary IESO Nova Scotia, the new independent system operator, has assumed system planning and procurement functions from NS Power but does not yet control the transmission grid. It currently recovers revenue through temporary fees charged to NS Power, approved by the NSEB in Matter M12663, and plans to submit a permanent fee recovery mechanism in 2026.

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.

ent proving that the rate design is fair. Transparent rate methodologies facilitate stakeholder engagement and regulatory oversight, also ensuring that the basis for rates is clear and evidence based. Stability in rates benefits both IESO...

AI summary The text outlines underlying principles for cost allocation and rate design, emphasizing fairness, transparency, stability, cost causation, compatibility with incentives, nondiscrimination, and simplicity. These principles aim to ensure equitable treatment of customers and support regulatory oversight and stakeholder engagement.

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.

4.2 Current mandate under Phase 1 Under Phase 1, which is currently in effect, IESO Nova Scotia is responsible for system planning, energy resource procurement, and interconnection functions. Responsibility for system operation and dispatc...

AI summary Under Phase 1, IESO Nova Scotia manages system planning, energy procurement, and interconnection, while NS Power retains system operation and OATT ownership. These responsibilities will transfer to IESO Nova Scotia under Phase 2 once the MAEA is proclaimed, though some provisions remain unproclaimed.

ciples criterion to be effectively neutral across all four options, as the fees are small relative to other electricity cost components and are therefore unlikely to distort behaviour[.43](#page-18-2) In assessing whether direct invoicing...

AI summary The document discusses the appropriateness of direct invoicing as a recovery mechanism compared to an OATT-based mechanism. It highlights that the OATT provides non-discriminatory access to the transmission system and is the established method for levying transmission-related charges. LEI argues that FTI overstates the administrative burden and understates the flexibility of the OATT-based mechanism.

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.

I. Identification & Qualifications - Q: Mr. Wilson, please state your name, occupation, and business address. - A: I am John D. Wilson. I am the Vice President of Grid Strategies LLC, Bethesda, MD. - Q: Summarize your professional educatio...

AI summary John D. Wilson, Vice President of Grid Strategies LLC, provides his background, including education and experience in energy and environmental policy, regulatory work with utilities, and expertise in cost-effectiveness, prudency review, and ratemaking.

Q: Have you testified previously in utility proceedings? - A: Yes. I have testified more than eighty times before utility regulators in twelve U.S. states and Nova Scotia, and appeared numerous additional times before various regulatory an...

AI summary The witness has extensive experience testifying in utility proceedings across multiple jurisdictions and has previously provided evidence in numerous matters before the Board on behalf of the Consumer Advocate and the Minister of Energy.

Q: Did IESO NS consider other options? A: Yes. IESO NS considered different timescales and also considered a usage-based fee rather than a fixed monthly direct charge. Alternatives to a monthly timescale are discussed in the FTI Jurisdicti...

AI summary IESO NS considered alternatives to a fixed monthly direct charge, including usage-based fees and different timescales such as daily and weekly. However, IESO NS opted for a fixed fee due to administrative simplicity, acknowledging that a usage-based model may be feasible in the future.

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.

Document: 332353 Filing of Letters of Comment by the Public Tuesday, October 13, 2026 Evidence by Intervenors and Board Counsel Consultants (if any) Tuesday, October 13, 2026 Requests for an Oral Hearing Tuesday, October 20, 2026 The remai...

AI summary The document outlines the timeline for the regulatory proceeding, including key dates for evidence submissions, information requests, rebuttal evidence, and written submissions. It also references the application of the Board's Regulatory Rules, particularly Rule 7(3), which specifies a deadline for filings.

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.

Document: 332353 Filing of Letters of Comment by the Public Tuesday, October 13, 2026 Evidence by Intervenors and Board Counsel Consultants (if any) Tuesday, October 13, 2026 Requests for an Oral Hearing Tuesday, October 20, 2026 The remai...

AI summary The document outlines the timeline for the regulatory proceeding, including key dates for filing letters of comment, evidence submission, information requests, and written submissions. It also references the application of the Board's Regulatory Rules, specifically Rule 7(3), for document filing deadlines.

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.

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.

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-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-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-19: - Reference: Appendix 1 ISO Cost Recovery Mechanism Jurisdictional Scan - On pg. 17, FTI states: - Even for LSEs that are levied a usage-based charge (per MWh, which could theoretically be linearly passed through to customer...

AI summary The text discusses the challenges of passing through ISO fees to customers via load serving entities (LSEs), noting that differing customer classes may contribute unevenly to ISO costs. It raises questions about whether any jurisdiction passes ISO Core Costs as a linear usage-based charge and references Ontario's 2026 Interim Usage Fees approved by the Ontario Energy Board.

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.

Request IR-3: Refer to M13007, Exhibit N-1, Application, Section 3.3 Allocation of Revenue Requirement to Market Participants, page 16 of 48, at lines 7-22. a) What changes does the transition to Phase 2 entail in terms of employee assignm...

AI summary Request IR-3 and IR-4 seek clarification on changes in employee assignments during Phase 2, the functions performed by IESO-NS under the Open Access Transmission Tariff, and the relevance of jurisdictional scan findings to Nova Scotia. They also ask about the entities served by IESO-NS, the applicability of the More Access to Energy Act, and financial assurance requirements for market participants.

INFORMATION REQUESTS To: The Independent Energy System Operator ("IESO") Mark Peachey Director, Regulatory Affairs From: The Berwick Electric Commission, the Riverport Electric Light Commission, and the Towns of Mahone Bay and Antigonish (...

AI summary The Berwick Electric Commission, Riverport Electric Light Commission, and the Towns of Mahone Bay and Antigonish have submitted an information request to the Independent Energy System Operator, seeking responses by September 22, 2026, regarding regulatory matters.