N-52024-2025 Bates White FAM Audit Report - Redacted
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VI – Biomass Procurement and Supply Planning Conclusion VI-8: Given the low turnout to the June 2024 biomass supply RFP, NSPI could improve its RFP process by removing the stated preference for biomass supply contracts with terms that are...
AI summary The document discusses issues with NSPI's biomass procurement and supply planning, including low participation in RFPs due to contract term preferences, missing execution dates on contracts, and concerns with the energy balance process. It recommends revising RFP terms, clarifying moisture targets, and addressing inventory adjustments post-cyber event.
XI – Commitment and Dispatch Conclusion XI-2: The processes that NSPI uses for committing, scheduling, and dispatching units were not changed during the period before the cyber event, January 1, 2024 through April 25, 2025. The concerns th...
AI summary The audit findings highlight that NSPI's commitment and dispatch processes remained unchanged during the 2024-2025 period, with frequent manual adjustments to optimization plans. The low capacity factors of generation units suggest inefficiencies, and a new Economic Dispatch Optimization Solution is expected in 2026. Lingan 2 was kept online for extended periods for system security, and the Board is recommended to establish criteria for its operation.
101 NSPI, "Preliminary Outage Report for February 3-5, 2023 Cold Weather Event," M10987, February 21, 2023. 102 NSPI, "Preliminary Outage Report for February 3-5, 2023 Cold Weather Event," M10987, February 21, 2023, page 4. 103 2022-2023 B...
AI summary The document discusses NSPI's Smart Grid Nova Scotia Project, its testing of distributed energy resource management systems, and the impact of various programs on load management and peak demand reduction. It also highlights the cost challenges of residential batteries and the results of the Time Variable Pricing pilot, including load reduction percentages and factors influencing them.
Figure III-6: PLEXOS Assumptions - Q4 2025 Fuel and Purchased Power Forecast Group PLEXOS Assumptions Update Required Notes Update Received Date Generating unit start-up costs / shut down penalties No Updated from the unit performance mode...
AI summary Figure III-6 outlines PLEXOS assumptions for Q4 2025 fuel and purchased power forecasts, including updates to generating unit parameters, wind and tidal energy profiles, fuel prices, and market constraints. Some assumptions require quarterly updates, while others are permanent or unchanged.
There were contributing factors to these deviations that were outside of NSPI's control. For example, Surplus Energy from Muskrat Falls was lower than forecasted. This can be seen in the "Imports" row of the following two figures. In 2024,...
AI summary The text discusses deviations in energy supply forecasts due to factors outside NSPI's control, including lower-than-expected surplus energy from Muskrat Falls and underperformance of renewable resources. These deviations required replacement energy from other sources, and the text references specific reports and figures for further details.
IV.C. Conclusions Conclusion IV-1: Consumption of solid fuel was 26.9% higher than the base cost of fuel forecast, due largely to lower than forecasted Surplus Energy, changes in fuel blends, and the sulfur emissions CoV. NSPI's Audit Peri...
AI summary NSPI's solid fuel consumption was 26.9% higher than forecast, driven by lower surplus energy and changes in fuel blends. NSPI relies heavily on imported coal, with South American coal increasing to 52% of total consumption. NSPI has no domestic coal sources and adjusted fuel blends at its plants to meet SO2 emissions constraints. Coal prices moderated during the 2024-2025 audit period.
VI.A. Background In this chapter, we review and assess NSPI's procurement and supply management of biomass fuel. We begin by explaining NSPI's biomass fuel-fired generator, the Port Hawkesbury Biomass Unit ("PHB"). Next, we look at NSPI's...
AI summary This section provides an overview of NSPI's biomass fuel procurement and supply management during the Audit Period. It covers topics such as the PHB generator, fuel consumption, supply contracts, procurement process, and inventory adjustments, as well as actions taken in response to prior audit recommendations.
VI.B.1. The Port Hawkesbury Biomass Unit Biomass fuel is consumed in a single power plant in NSPI's fleet. PHB is a 43 MW251 biomass fuelfired generator located in Port Hawkesbury that also has the capability to burn natural gas. The boile...
AI summary The Port Hawkesbury Biomass Unit (PHB) is a 43 MW biomass-fired generator located in Port Hawkesbury, capable of burning natural gas. It is co-located with the Port Hawkesbury Paper plant, and biomass fuel is sourced from both the paper plant and NSPI. Steam is first used by PHP for operational needs, and the remainder is used for electricity generation.
VI.B.2. Biomass Fuel Consumption NSPI consumed green metric tonnes ("GMT") of biomass fuel during the Audit Period.252 Figure VI-1 provides this data in more detail, as broken down between 2024 and 2025. Consumption in 2025 was than in 202...
AI summary NSPI consumed a historically high amount of biomass fuel during the Audit Period, leading to increased PHB output and OBPS credits. The high consumption was driven by the OBPS program and PHB's strong availability factors. Biomass fuel consumption was a small portion of the total fuel and cost serving FAM customer load.
Figure VI-6: NSPI Solid Fuel Suppliers During Audit Period265 Supplier Product Sawmill bark/biomass roundwood/fuel log chips/chips and grindings Sawmill bark/chips Fuel log chips/forest fuel chips/bark Sawmill bark/chips Sawmill bark 264 &...
AI summary Figure VI-6 lists the solid fuel suppliers for NSPI during the audit period, including various types of wood products such as sawmill bark, chips, and fuel logs. These suppliers are part of the fuels contracts and biomass-related activities.
VI.B.7. New Biomass Supply Agreements during the Audit Period During the Audit Period, NSPI entered into several new contracts for solid fuel supply. We reviewed each of these contracts and the process by which those contracts were execute...
AI summary During the Audit Period, NSPI signed new solid fuel supply contracts. The audit highlights increased forecasted output from PHB in 2025 and 2026, which influenced higher procurement targets. The review includes how suppliers were selected and the rationale for seeking additional supply.
VI.B.1.b. First Quarter 2024 NSPI entered into one new contract for biomass supply in the first quarter of 2024. NSPI also materially amended one other. This is shown in Figure VI-7. 266 " 20231015 Biomass Purchase Sale Agreement." 26...
AI summary In the first quarter of 2024, NSPI entered into one new biomass supply contract and materially amended another. This is referenced in Figure VI-7 and related documents such as the 20231015 and 20230122 Biomass Purchase Sale Agreements, as well as the 20231231 First Amending Agreement.
Figure VI-7: NSPI new biomass supply contracts (Q1 2024) Supplier Product Quantity (GMT) Term Sawmill Bark Biomass Roundwood Fuel Logs — Extra Volume (Amending Agreement) On January 30, 2024, NSPI received approval from the FST to negotiat...
AI summary The document references a new biomass supply contract negotiation by NSPI with approval from the FST in January 2024, though specific supplier and product details are not fully provided in the excerpt.
VI.B.1.e. Fourth Quarter 2024 The fourth quarter of 2024 was particularly active for NSPI regarding biomass supply procurement. NSPI extended supply agreements with suppliers ( ) and entered into one new contract ( ). NSPI also materially...
AI summary In the fourth quarter of 2024, NSPI engaged in significant biomass supply procurement, including extending agreements, entering new contracts, and amending existing ones. The RFP process faced challenges, including unreasonable minimum contract terms and a lack of specificity about supply needs. NSPI also sought FST approval for a new agreement involving biomass fuel delivery in 2025.
Figure VI-11: NSPI new biomass supply contracts (Q4 2025) Supplier Product Quantity (GMT) Term Sawmill Bark Biomass Roundwood/ Chips and Grindings Sawmill Chips Sawmill Bark Sawmill Chips Sawmill Bark NSPI issued an RFP for biomass supply...
AI summary NSPI issued an RFP for biomass supply in July 2025 to secure fuel for 2026. Suppliers submitted offers for primary biomass fuel and bark, with bark offers bundled with primary fuel. NSPI evaluated offers using a bundled pricing methodology. In December 2025, NSPI recommended contracting for GMT of primary biomass fuel and GMT of bark.
VI.B.8. Other Biomass Fuel Contracts and Procurement Forest Sustainability Agreement DNRR Funding under Forests Act : NSPI entered into two separate agreements with the Minister of Natural Resources and Renewables ("DNRR") under the Forest...
AI summary NSPI entered into Forest Sustainability Agreements with DNRR under the Forests Act to receive funding for a silviculture program. In 2024, NSPI received funds that were allocated to FAM customers in early 2025. Additionally, PHP raised concerns about bark pile combustion at NSPI's facility, proposing a $26,000 mitigation plan, which NSPI quickly approved.
assess the damaged structure and develop options. put forth three options ranging from refurbishment to demolition and complete replacement, with an estimated cost ranging from $ million to $ million. NSPI has explained that liquidated dam...
AI summary NSPI explained that their biomass fuel supply contracts lack liquidated damages clauses for underdelivery due to the nature of biomass as a byproduct. Despite underdeliveries in 2024 and 2025, NSPI claimed the underdeliveries were excused by contract terms covering events beyond their control.
Figure VI-15: Port Hawkesbury Biomass Inventory Adjustments Quarter Blended Pile (MT) Chips (MT) Total Q1 2024 829 (5,515) (4,686) Q2 2024 (9,640) 4,181 (5,459) Q3 2024 (7,137) 2,223 (4,914) Q4 2024 10,206 (691) 9,515 Q1 2025 109 10,011 10...
AI summary The document presents inventory adjustments for biomass at Port Hawkesbury from Q1 2024 to Q4 2025, showing fluctuations in blended pile and chips. NSPI noted that adjustments were pending agreement with PHP, and retroactive changes were made due to the energy balance process. A recommendation was made for NSPI to update the Board with the final results.
VI.C. Conclusions efficiency of the PHB boiler. NSPI stated that the risk associated with long periods of storage was limited to logs on the outside of the pile (the portion exposed to the elements). NSPI also stated that the logs were hel...
AI summary The document discusses NSPI's biomass procurement challenges and the impact of surplus fuel purchases on FAM customers. It highlights the need for NSPI to revise its RFP process and notes the value of the PHB unit under the OBPS regime, which generates credits and reduces costs for customers.
VI.D. Recommendations Recommendation VI-1: NSPI should consider revising future biomass supply RFPs to reduce or remove preference for supply contracts of 2-years or greater, given the inability or unwillingness of suppliers to offer such...
AI summary The recommendations focus on revising biomass supply RFPs, clarifying contract terms, and improving the energy balance process to better reflect supply realities and economic dynamics, aiming to enhance participation and fairness in biomass procurement and energy management.
VII.B. Findings NSPI evaluated various firm and interruptible pipeline transportation options and made decisions on whether to contract for pipeline capacity based on short-term analyses that corresponded to the terms of the contracts. It...
AI summary NSPI evaluated pipeline transportation options, including a 10-year firm transportation offer from Dawn to Westbrook, but did not adequately consider potential economic offsets or alternate scenarios. NSPI properly evaluated and supported its decision to renew and expand a transportation contract on M&NE-CA and participated in pipeline regulatory proceedings regarding rates.
reduce the price of physical gas at Empress all things being equal, however NS Power would not be able to avail itself of that lower cost gas because it's physical pipeline path is to Union-Parkway). Bates White reviewed this analysis as w...
AI summary The text discusses NSPI's analysis of the MN365 FT Contract, including assumptions about unused capacity and gas price spreads. Bates White notes that NSPI's conclusions and decision to reject the offer are not aligned with their analysis, as some assumptions do not reflect normal wholesale gas operations and economic considerations are overlooked.
VII.C. Conclusions Conclusion VII-1: NSPI does not appear to have completed the analyses made in Recommendation VII-1 from the previous FAM audit, which recommended that "[t]his quantification should include a quantification of risk mitiga...
AI summary The conclusions highlight that NSPI did not complete risk mitigation analyses as recommended, excluded such analyses in evaluating FT contracts, and appropriately managed some FT contracts and tariff negotiations. NSPI also expects reduced reliance on natural gas due to environmental changes and has an evolving philosophy on long-term FT contracts.
VII.D. Recommendations Recommendation VII-1: NSPI should conduct the analysis described in Recommendation VII-1, that was accepted by NSPI, from the 2022 – 2023 FAM Audit. 331 Bates White's February 21, 2025, Rebuttal Evidence, page 9 line...
AI summary The recommendations outline actions for NSPI, including re-analyzing Freepoint FT capacity offers, formalizing ERM positions on FT capacity, and clarifying risk allocation related to over-paying for unneeded FT capacity and mitigation strategies.
The Effect of Contracting for Firm Term Gas The term gas purchases were generally firm, which meant that NSPI could not contractually vary its daily gas purchases. Failure to take the gas would not necessarily be a breach of the base North...
AI summary The document discusses the implications of NSPI's firm term gas contracts, including the inability to vary daily gas purchases and the potential for selling unneeded gas at higher prices in other markets. It also mentions the tax issues and delivery points associated with gas sales and highlights the economic benefits of selling gas at high prices.
2/15/2024 11/19/2025 11/20/2025 12/20/2025 12/23/2025 1/29/2024 3/14/2024 3/21/2024 3/25/2024 5/19/2024 5/24/2024 5/26/2024 6/30/2024 7/19/2024 7/24/2024 7/25/2024 8/15/2024 8/27/2024 9/11/2024 9/14/2024 12/9/2024 1/17/2025 1/30/2025 2/19/...
AI summary The text contains a list of dates and a table header related to 'Late Day Trades delivered to Baileyville,' with references to 'NG Next Day BAILEYVILLE Emera Energy L.P.' and 'Point.' The content appears to be related to energy trading and does not contain detailed analysis or discussion.
Figure X-1: NSPI's Thermal Generation Fleet382 Max Net Power Plant Capacity Primary Fuel Secondary Fuel In-Service Year Trenton 5 150 Coal Petcoke 1969 Trenton 6 154 Coal Petcoke 1991 Lingan 1 153 Coal Petcoke 1979 Lingan 2 148 Coal Petcok...
AI summary The document outlines NSPI's thermal generation fleet, including details on power plants, their capacities, fuels, and in-service years. It also notes NSPI's ownership of hydro and wind resources, as well as tax benefits related to these assets.
X.B.1. Refreshing our Contextual Analysis of NSPI's Thermal Generation Fleet NSPI's generation mix includes a high – and growing – penetration of wind capacity coupled with a thermal fleet that is not optimal for addressing the operational...
AI summary NSPI's thermal generation fleet is not optimal for managing the operational challenges of a wind-heavy resource portfolio. The fleet is largely inflexible, with most units having low ramp rates, unlike modern gas-fired generators. This necessitates the maintenance of thermal plants for reliability, increasing costs.
391 2024 FAM Annual Report A-2; 2025 FAM Annual Report A-2. 392 2014-2015 Liberty FAM Audit Report, page VIII-12. Figure X-5 compares Audit Period capacity factors across the thermal units, renewable units, and total fleet to recent histor...
AI summary This text discusses the performance of energy generation units during the Audit Period, noting that thermal and wind capacity factors rebounded after declines in previous years, while hydroelectric output was significantly below historical averages due to weather patterns and outages. Precipitation levels in Halifax also dropped during the Audit Period.
Figure X-6: Thermal Units' Average Load (MW) 395 Thermal Plant Max Net Capacity Average Load 2024 (MW) Average Load 2025 (MW) Lingan 1 153 86 106 Lingan 2 153 76 46 Lingan 3 148 84 104 Lingan 4 153 82 94 Tufts Cove 1 78 68 34 Tufts Cove 2...
AI summary The text presents data on the average load of various thermal units in Nova Scotia from 2024 to 2025, highlighting the performance of different power plants. It also discusses the economic minimum dispatch levels of these units, indicating how often they were operated at or below this level, which is unusual for baseload units.
Figure X-7: Percentage of Hours NSPI's Thermal Units Operated at Economic Minimum (or Lower) During Audit Period 398 Thermal Plant Economic Minimum (MW) % of Hours Operating at Eco Min or Below Lingan 1 60 37.3% Lingan 2 60 82.3% Ligan 3 6...
AI summary The data in Figure X-7 shows that NSPI's thermal generators operated below economic minimum levels for a significant portion of the audit period. The text discusses the implications of this, noting that NSPI continues to generate less energy due to the rise of wind generation in Nova Scotia. NSPI maintains various operating reserves to ensure reliability, and surplus reserves were observed during the audit period, except for a period affected by a cyber event.
X.B.2.a.v. Heat Rate The next performance metric we considered was Heat Rate, which is a measure of a generating unit's efficiency. It divides fuel burned (in MMBtu)—or energy "in"—by electricity produced (in kWh)—or 416 For the Tufts Cove...
AI summary The document discusses the Heat Rate as a performance metric for generating units, highlighting its importance in measuring efficiency. It references data for Tufts Cove units and provides information on how NERC does not calculate average heat rates in GADS. The text also references audit reports and training materials.
Figure X-15: 2025 Utilization Factors (Actual vs. Forecast)428 Unit Starts Net Capacity Factor Operating Hours UF Actual UF Forecast Lingan 1 20 52% 6,544 High Medium Lingan 2 5 19% 2,516 Medium - Lingan 3 22 48% 6,046 High Medium Lingan 4...
AI summary Figure X-15 compares actual and forecast utilization factors for various units in 2025, showing discrepancies in performance across different facilities. The section highlights unit-specific issues identified during the audit period, emphasizing the need for analysis of operational data and capacity factors.
Figure X-20: DAFOR, Availability Factors of NSPI's Seven Combustion Turbines (2024-2025)444 Unit DAFOR (2024) DAFOR (2025) GADS EFOR Standard Availability Factor (2024) Availability Factor (2025) GADS AF Standard Burnside 1 93.9% 8.2% 23.2...
AI summary The document presents availability factors for NSPI's seven combustion turbines in 2024 and 2025, showing significant variations between actual and expected performance. It also notes discrepancies between NSPI's PLEXOS modeling forecasts and actual generation output from the turbines.
443 2020-2021 Audit Report, pages 204 to 205. 444 NERC GADS data, https://view.officeapps.live.com/op/view.aspx?src=https%3A%2F%2Fwww.nerc.com%2Fglobalassets%2Fprograms%2Frap a%2Fgads%2Freports%2Fgenerating-unit-statistical-brochure-2-2024...
AI summary The 2020-2021 Audit Report indicates that actual output during the Audit Period was 35,367 MWh, which is similar to the prior Audit Period of 33,855 MWh. The data is compared to forecasts and visualized in Figure X-21, with NERC GADS data referenced for generating unit statistics.
X.B.3.d.ii. Status and Operation of Lingan 2 The Board considered the issue of the retirement of Lingan 2 and its relation to the commencement of the NS Block volumes in a February 8, 2022 Decision.446 The Board noted that in NSPI's integr...
AI summary The Board addressed the retirement of Lingan 2 in a February 2022 decision, noting that NSPI planned to keep the unit operational until one year after the NS Block commenced. The Board disallowed recovery of Lingan 2 operating costs beyond August 15, 2022, without further approval. NSPI phased out economic dispatch after that date but kept the unit in cold reserve. The IESO forecasts Lingan 2's retirement until 2029/2030, requiring NSPI to maintain the unit for 2-3 additional years.
X.B.3.e.ii. 2024 Forced Outages for expansion joint failures On three separate occasions in 2024, Point Aconi was forced offline due to failures of an expansion joint on the air supply to a combustor return leg. Collectively, the three out...
AI summary In 2024, Point Aconi experienced three forced outages due to expansion joint failures linked to coal blend testing. The failures were caused by material buildup from higher coal blends, which NSPI addressed by adjusting fuel sizing. The outages highlight potential challenges from experimental fuel strategies under tightening emissions constraints.
Figure X-36: Opacity Exceedances, by NSPI Generator Unit 2024 Exceedances 2025 Exceedances Total Exceedances Lingan 33 32 65 Point Tupper 3 2 5 Point Hawkesbury 35 15 50 Total 71 49 120 X.B.7.d. NSPI's Compliance with Renewable Energy Stan...
AI summary Figure X-36 outlines the number of opacity exceedances by NSPI generators in 2024 and 2025, with a total of 120 exceedances across three units. The section discusses NSPI's compliance with renewable energy standards, highlighting potential regulatory and environmental implications.
NSPI met its RES compliance requirements in both 2024 and 2025. NSPI received renewable energy equal to 40.5 percent and 40.2 percent of its net electricity sales in 2024 and 2025, respectively, exceeding the RES requirement of 40 percent....
AI summary NSPI met its Renewable Energy Standard (RES) compliance requirements in 2024 and 2025, achieving 40.5% and 40.2% renewable energy use, respectively, which exceeded the 40% RES requirement. Audit Period data is presented in Figure X-37.
Figure X-37: NSPI's RES Compliance by Year (2024-2025) 2024 2025 Total 2024-2025 Sales (net of losses) (GWh) 10,581 10,705 21,286 Renewable energy (GWh) 4,286 4,302 8,588 RES Percentage 40.5% 40.2% 40.3% 511 2022-2023 Bates White Audit Rep...
AI summary Figure X-37 presents Nova Scotia Power Inc.'s compliance with the Renewable Energy Standard (RES) for the years 2024 and 2025, showing the percentage of renewable energy in total sales. The RES compliance rate was 40.5% in 2024 and 40.2% in 2025, averaging 40.3% over the two-year period.
Figure X-37: PHB Steam Turbine Performance (in MW) Across Different Steam Production, PHP OM Scenarios. 519 PB3 Average Steam Flow (kg/s) PHP OM Mode Range Steam Turbine Output Range (MW Gross) 60 1 - 9 36 - 40 50 1 - 9 28 - 40 40 1 - 9 19...
AI summary The document presents a table showing the performance of PHB steam turbines under different steam flow and PHP OM scenarios. NSPI conducted further testing with 100% biomass fuel between September 2024 and February 2025, examining fuel moisture levels of 50%, 55%, and 60%.
Figure X-38: PHB Boiler Steam Flow Across Different Fuel Moisture Content. 524 Test Date Moisture Target (%) Actual Avg Steam Flow (kg/s) 2024-09-25 50.38 55.6 2025-01-30 55 42 2025-02-04 60 38 These are insightful results that finally ach...
AI summary The PHB boiler steam flow results demonstrate the unit's ability to maintain steam supply under varying fuel moisture conditions. NSPI has addressed prior audit recommendations and presented these findings to the FAM SWG. However, challenges remain in predicting output and economic dispatch due to factors outside NSPI's control, such as fuel moisture content and PHP's OMs.
One additional data point we would wish to highlight is the unit's ability to produce generation on biomass fuel alone. The tests show that if it is able to achieve a moisture content of 50.38%, the unit can produce 55.6 kg/s of steam.527...
AI summary The document discusses the performance of a biomass generation unit at the Port Hawkesbury Biomass Plant, highlighting its capacity to produce electricity based on steam output and moisture content. The data indicates that the unit's performance does not support its current nameplate rating of 48 MW when operating on biomass fuel alone.
ant 2024-2025 Biomass Performance Testing Results," September 26, 2025, slide 8. 529 NSPI, "Port Hawkesbury Biomass Plant 2024-2025 Biomass Performance Testing Results," September 26, 2025, slide 12. unit can produce a maximum of 28 MW.530...
AI summary The document discusses the results of biomass performance testing for NSPI's Port Hawkesbury Biomass Plant, highlighting discrepancies between test results and declared values. It also notes NSPI's progress on implementing recommendations from a root cause analysis, with most recommendations completed and the rest in progress.
oach to wind curtailment reporting,537 and we noted that in some jurisdictions, wind curtailment data is reported on an hourly basis, a level of granularity NSPI should strive to achieve over time.538 NSPI has introduced wind curtailment d...
AI summary The document discusses NSPI's reporting of wind curtailment data in its FAM Annual Reports and the introduction of monthly wind curtailment estimates. It also mentions NSPI's engagement with the SWG to refine reporting formats and the handling of a damages claim related to the South Canoe wind farm.
performance came in response to our findings related to a damages claim by NSPI against one of its vendors following an extended deration of the South Canoe wind farm. We concluded, in relevant part: South Canoe, however, was derated durin...
AI summary The text discusses NSPI's pursuit of damages from Nordex USA, Inc. following an extended deration of the South Canoe wind farm due to defective ladders/lift systems. NSPI has recovered some damages but continues to pursue additional compensation under the warranty agreement. The Board is advised to monitor the outcome and update on the wind farm's capability status.
wever, that during the Audit Period, the highest hourly output achieved by South Canoe was 90.9 MW, about 11 percent below its nameplate capacity of 102 MW.542 Our recommendation specifically stated: Recommendation X-7: NSPI should continu...
AI summary The document discusses NSPI's efforts to pursue damages from Nordex following the underperformance of the South Canoe wind project, which achieved only 90.9 MW during the Audit Period, below its 102 MW nameplate capacity. NSPI settled with Nordex in August 2025 and provided updates on turbine availability, with 33 of 34 turbines available by April 2026.
anoe turbines were available, with the remaining turbines expected to be available in the first quarter of 2026. NSPI later provided an update that by April 10, 2026, 33 of 34 turbines were available. As a refresher on the timeline, NSPI o...
AI summary NSPI, as a minority owner of the South Canoe project, worked with Nordex and Oxford Frozen Foods Ltd. to restore 34 turbines to full service after issues with lift and ladder systems. Nordex completed the repairs under warranty, and NSPI did not incur direct costs. The project is now expected to be fully operational by April 2026.
X.C. Conclusions Conclusion X-1: NSPI's resource portfolio is a mix of wind, hydro, and thermal generating assets. As currently constituted, NSPI's portfolio is not optimal for providing the necessary operational characteristics to balance...
AI summary NSPI's resource portfolio consists of wind, hydro, and thermal generating assets, but the high wind penetration has led to lower capacity factors for thermal units, affecting their operational efficiency. While availability factors and DAFORs were above industry averages, forced outage hours and derate durations have increased, with Trenton 5 experiencing the highest forced outage hours.
XI.B.3. The Port Hawkesbury Biomass Generator NSPI jointly optimizes PT Biomass with the other units in its portfolio using PortOps. The PT Biomass unit is included in the day ahead and intra-day schedules, and in the merit order dispatch...
AI summary The Port Hawkesbury Biomass Generator (PT Biomass) is jointly optimized with other units by NSPI using PortOps. It is included in day-ahead and intra-day schedules and is subject to real-time redispatching by NSPSO for various operational reasons. The capacity of PT Biomass is estimated and affected by steam usage by PH Paper, with average output levels provided for 2024 and 2025.
Figure XI-7: Operating Intervals during Audit Period, Lingan 2 Event No. Start Date End Date Number of Days Net Generation (MWh) 1 1/23/24 6:00 PM 2/1/24 1:00 AM 8 21,631 2 2/6/24 8:00 PM 2/14/24 1:00 AM 7 16,765 3 2/21/24 3:00 AM 2/28/24...
AI summary Figure XI-7 presents the operating intervals of Lingan 2 during the audit period, showing the start and end dates, number of days, and net generation for each event. Lingan 2 was used more heavily than in the prior audit period due to large supply deficiencies, with system margins ranging between 80 MW and 275 MW. It was dispatched economically through the PortOps model or Plexos during different periods.
XI.B.7. Out-of-Merit Dispatch of Solid Fuel Units In many hours during 2024, all the solid fuel units (Lingan, Pt Aconi, Pt Tupper, and Trenton) were scheduled out-of-merit. This largely coincides with the period that the SO 2 adder was in...
AI summary In 2024, solid fuel units were frequently scheduled out-of-merit, coinciding with the inclusion of SO2 adders in marginal cost equations. This led to discrepancies between unit marginal costs and day-ahead system marginal costs, suggesting that the day-ahead system marginal costs may have been understated.
audit period because limited SO2 allowances were managed with an additional fuel cost adder on solid fuel units that worked to raise the cost of solid fuel units relative to those run on natural gas. Under OBPS, the Port Hawkesbury Biomass...
AI summary The document discusses how Nova Scotia Power Inc. manages GHG emissions through the OBPS system, including the use of GHG OBPS Performance Credits and cost adders on fossil units to reflect emissions costs, impacting dispatch decisions and merit order reordering.
Figure XI-11: CO2eq emissions in tonnes572 Units 2021 2022 2023 2024 2025 Unit 1 Lingan Unit 2 2,637,870 2,110,642 1,541,267 1,643,685 2,100,732 Unit 3 Unit 4 Point Aconi Unit 1 589,431 978,708 876,703 876,083 756,838 Point Tupper Unit 2 7...
AI summary The table shows CO2eq emissions from various units between 2021 and 2025. Emissions from Lingan units increased by 36% from 2023 to 2025, while emissions from Tufts Cove units decreased by 18%. The increase in output and emissions at Lingan, Point Tupper, and Trenton is partially attributed to carbon pricing in the OBPS mechanism.
Figure XI-12: Annual Generation (MWh)573 Units 2022 2023 2024 2025 Unit 1 Unit 2 Lingan Unit 3 2,180,119 1,532,900 1,559,503 2,195,760 Unit 4 Point Aconi Unit 1 908,652 782,620 782,438 670,857 Point Tupper Unit 2 625,187 480,727 563,036 69...
AI summary Annual generation data across various units in Nova Scotia from 2022 to 2025 is presented, with significant fluctuations in output influenced by natural gas prices and OBPS adders. Higher gas prices in 2025 led to reduced dispatch of gas-fired units like TUC-1 and TUC-3, while solid fuel units were favored due to the OBPS adders.
XI.B.10.a. Unit Loading Levels and Start-up Costs NSPI's coal and gas-fired units achieve their lowest average cost when operated near maximum output. Operating fewer units at higher levels, when possible, can reduce costs to FAM customers...
AI summary NSPI's coal and gas-fired units operate most efficiently at maximum output. However, capacity factors for some units have decreased, potentially indicating inefficiencies. Data glitches were identified during the audit period, and the use of the new Economic Dispatch Optimization Solution may improve efficiency.
XI.C. Conclusions Conclusion XI-1: NSPI, to its credit, was able to keep its system running reliably through the period following the cyber event. However, the loss of automation and information required for scheduling and dispatch would h...
AI summary The document highlights NSPI's ability to maintain system reliability post-cyber event but notes inefficiencies and increased costs due to lost automation. It identifies issues with scheduling processes, RTED functionality, and dispatch of PH Biomass. There are concerns about understated system marginal costs and increased GHG emissions. A new Economic Dispatch Optimization Solution is expected to address some inefficiencies.
XI.D. Recommendations Recommendation XI-1: NSPI should be required to comply with 2022-2023 Recommendation XI-1 and provide a detailed and comprehensive report that explains how the new functionality in the Economic Dispatch Optimization a...
AI summary The recommendations focus on NSPI's need to report on new system functionalities and establish criteria for maintaining Lingan 2's operation. The first recommendation requires a detailed report on how new solutions address system issues, while the second calls for criteria to be approved by the Board for Lingan 2's continued operation.
XII.A. Background NSPI's owned generation has historically provided the vast majority of power to NSPI's customers. For example, from 2013 through 2015, NSPI's generating fleet provided about 87.4% of all energy to NSPI's customers.580 The...
AI summary NSPI's power supply historically relied heavily on its own generation, but recent years have seen increased reliance on third-party sources, including imports from Muskrat Falls. Power purchases vary in terms and can be driven by economic, reliability, or policy factors such as the Renewable Electricity Standard.
Figure XII-1: Ownership of Generation Serving NSPI Customers585 Generation Serving NSPI Customers (MWh) 2024 2025 NSPI-Owned Thermal Generation 6,309,911 6,520,644 NSPI-Owned Renewables 932,274 855,113 Third-Party Power 4,084,135 4,097,853...
AI summary The table shows the generation serving NSPI customers from 2024 to 2025, with NSPI-owned thermal and renewable generation, and third-party power. The percentage share of third-party power has increased significantly over the past ten years, reaching 35.7% in 2025.
Figure XII-3: Output, Cost of COMFIT Resources (by project) 602 Canacity l Total Cost Counterparty Location Capacity (MW) 2024 MWh 2025 MWh Cost (2024) Cost (2025) ($/MWh) Colchester-Cumberland Wind Field Spiddle Hill (Large Wind) COMFIT 0...
AI summary The table presents the output and cost of COMFIT resources by project, including capacity, energy production, and associated costs for various locations in Nova Scotia. It includes details for wind fields, municipalities, and other entities involved in the COMFIT program.
<sup>602 2024 FAM Annual Report, A5; 2025 FAM Annual Report, A5. In some cases, the "Total Cost" column differs slightly from the provincially established PPA price, due to rounding. totaling 3.85 MW, all of which produced at least some...
AI summary The text discusses renewable energy projects under Power Purchase Agreements (PPAs) with varying prices, administered by the Clean Nova Scotia Foundation. Total output from these projects was 3.85 MW, with prices ranging between $ /MWh and nearly $ /MWh. No force majeure events or terminated PPAs were reported during the audit period.
Figure XII-4: Output, Cost of COMSOLAR Resources (by project) 606 Cost (2024) Cost (2025) Plymouth Community Plymouth Community 0.02 Hospice Halifax Hospice Halifax 0.01 Glooscap Energy Glooscap Landing 0.02 Glooscap Energy Glooscap Energy...
AI summary Figure XII-4 presents the output and cost of COMSOLAR resources by project, listing various community solar initiatives across Nova Scotia with their respective costs, locations, and capacities. The data includes information on multiple organizations and locations involved in these solar projects.
606 2024 FAM Annual Report, A5; 2025 FAM Annual Report, A5. 607 2024 FAM Annual Report, A5 and A5(2); 2025 FAM Annual Report, A5.and A5(2). During the Audit Period, there were three non-wind projects which NSPI either executed new PPAs or...
AI summary During the audit period, NSPI executed new and extended existing PPAs for non-wind projects, including a new PPA with New Dawn Enterprises under the Community Solar Program and an extension of an existing PPA. These actions were taken in response to directives from the Minister of Natural Resources and Renewables.
h, for a total forecasted cost of $ over that 33-month term. The original PPA, which had a 30-year term, was set to expire on August 31, 2024. The extension continues the terms of the original PPA.609 - • PPA Extension: On September 17, 20...
AI summary NSPI extended its PPA with a biomass CHP plant for 10 years at a fixed price, comparing it to alternatives like COMFIT and replacement capacity. The extension was justified through alternatives analysis, though it was noted that competitive procurement should be handled by the IESO to benefit FAM customers.
Figure XII-7: New Wind PPAs Wind PPA Counterparty Schedule COD Expiration Date Project Size (MW) Cost per MWh December 15, 2026 25 years from commencement date 130.5 December 31, 2028 25 years from commencement date 150 December 31, 2028 2...
AI summary The text presents a table of new wind power purchase agreements (PPAs), including details such as counterparty, schedule COD, expiration date, project size, and cost per MWh. The table includes multiple entries with varying project sizes and expiration dates.
Term RFPs NSPI has historically relied in part upon RFPs for imported power across the New Brunswick-Nova Scotia intertie. With the energization of the Maritime Link in 2018, power could also be imported over that intertie with Newfoundlan...
AI summary NSPI has used RFPs for imported power via the New Brunswick-Nova Scotia intertie and the Maritime Link since 2018. RFPs are typically issued one month in advance and have a term of one month. During the Audit Period, RFPs were issued to comply with the EAA, and results are discussed in section XII.B.1.d.iii.
XII.B.1.c.i.2. Reliability Imports In our review of import transaction samples, we noted days during the Audit Period when NSPI imported energy for system reliability purposes. As NSPI has explained to us in the past, all reliability impor...
AI summary During the audit period, NSPI imported energy for system reliability, with transactions sourced from New Brunswick, ISO New England, and Newfoundland and Labrador. The highest-priced reliability import occurred in Allegro at $ /MWh, though the transaction ultimately saved USD $ due to system conditions and real-time pricing.
XII.B.1.d. Transactions over the Maritime Link This section addresses all power imported from Newfoundland and Labrador. Throughout this report, we may refer to this power as "Muskrat Falls" energy or generation, which refers to the 824 MW...
AI summary This section discusses the import of power from Newfoundland and Labrador, specifically from the Muskrat Falls hydroelectric generating station and the Maritime Link HVDC transmission line. It outlines the contractual arrangements between NSPI and NLH for energy and capacity purchases.
ly, the ECA calls for the delivery of 0.986 TWh/year of Base Block644 for the 35-year contract term, and approximately 0.240 TWh/year of Supplemental Block for the first five years of the contract.645 The second key contractual document is...
AI summary The document outlines the Energy and Capacity Agreement (ECA) and the Energy Access Agreement (EAA), which govern the delivery of energy from NLH to NSPI. The ECA specifies the quantity of Base Block and Supplemental Block energy to be delivered over a 35-year period, while the EAA allows NSPI to purchase Surplus Energy at market prices, with guaranteed right of first refusal. The agreements were key components of the Board's approval of the Maritime Link project in 2013.
XII.B.1.d.iii.1. 2024 EAA RFP NSPI issued its first of two EAA RFPs of the Audit Period on April 24, 2024, with responses due by May 24, 2024. NSPI sought offers for up to 150 MW of firm energy (with greater or lesser volumes being conside...
AI summary NSPI issued a 2024 EAA RFP seeking up to 150 MW of firm energy for the period September 1, 2024, through September 1, 2025. The RFP was sent to four recipients and received offers from counterparties. The RFP considered both standard and nonstandard energy products.
Figure XII-14: Summary of 2024 EAA RFP NLH Offer type Month On-Peak offer (MWh/month) Off-peak offer (MWh/month) Price (USD) Selected? Winning Volume (MWh) Total Contract Value (USD) NBEM Offer type Month On-Peak offer (MWh/month) Off-peak...
AI summary The document presents a summary table for the 2024 Electricity Act Request for Proposal (EAA RFP), including details such as offer types, months, on-peak and off-peak offers, prices, and contract values. It also mentions a section related to the 2025 EAA RFP.
Figure XII-17: Actual Flows vs. Accepted Volumes (Surplus Energy, 2025 EAA RFP) Month On-Peak EAA Offer (GWh) On-peak Deliveries (GWh) % Delivered Off-Peak EAA Offer (GWh) Off-peak Deliveries (GWh) % Delivered Total EAA Offer (GWh) Total D...
AI summary Figure XII-17 compares actual energy flows with accepted volumes under the 2025 EAA RFP. The table is empty, and a reference to Schedule 1, section 3.2 (a) of EAA is provided, though no details are included in the chunk.
XII.B.1.e. Final Audit Period Data for Imported Power 704 2025 Maritime Link Benefits Reports (Q1-Q4). 705 EAA, section 4.1 (a). Looking deeper at the data, the flows on the LIL were less than the hourly output of Muskrat Falls in about %...
AI summary The audit period data for imported power from Muskrat Falls shows that flows on the Labrador-Island Link (LIL) were less than the hourly output of Muskrat Falls in most hours. NSPI argues that the LIL's capacity limitation has not hindered energy imports, though increased capacity may help during peak demand. High power testing was completed in March 2026, and the LIL is expected to be upgraded to a higher rating soon.
XII.B.2. Power Exports NSPI's energy marketers also export power on a short-term basis—i.e., day-ahead or real-time. In general, these export opportunities fall into two categories, but both categories are based on economics. One set of tr...
AI summary NSPI's energy marketers export power on a short-term basis when prices elsewhere are higher or during periods of high wind output. Exports during the Audit Period were minimal, totaling 4.5 GWh, or 0.02% of total system requirements, with limited revenue and gains.
ws: Recommendation XII-4: NSPI should consider pursuing the long-term capacity value of the undelivered quantities of NS Block from NLH, conservatively estimated at the carrying cost of Lingan 2. NSPI accepted this recommendation and state...
AI summary The document discusses NSPI's response to a recommendation regarding the long-term capacity value of undelivered NS Block quantities from NLH. NSPI stated it would consider approaches to recover this value but did not agree with the view that there was a loss of value. The text highlights that NSPI's planned approach does not fully deliver the long-term capacity value of the NS Block due to frequent capacity reductions.
XII.C. Conclusions Conclusion XII-1: The sources of power that serve FAM customers continue to become more diverse and regionally-integrated as evidenced by continued increases in imports and third-party purchases, totaling 35.9% during th...
AI summary The document outlines conclusions regarding the diversification of power sources for FAM customers, NSPI's PPAs with renewable generators, and the increase in imported power, particularly from the Muskrat Falls project via the Maritime Link.
XIII.B.1.c.v. 2025 (First Quarter) NSPI completed its quarterly rebalance for the first quarter of 2025 in March. NSPI noted no material changes to expectations regarding the timing of EAA Surplus Energy deliveries and made only modest reb...
AI summary NSPI completed its Q1 2025 rebalancing with minimal changes, unwound on-peak power hedges, and adjusted marine freight exposure. The CoV for SO2 emissions allowed higher emissions limits, making solid fuel consumption more economic. NSPI is expected to emit the maximum allowed SO2 in 2025.
XIII.C. Conclusions Conclusion XII-1: The hedging program as executed during the Audit Period generally conformed with the objectives of the Fuel Hedging Plan. Conclusion XIII-2: Our review shows that NSPI conducted quarterly rebalancing a...
AI summary The hedging program executed by NSPI during the Audit Period generally aligned with the Fuel Hedging Plan. Quarterly rebalancing was consistent with plan requirements, though impacted by liquidity issues and SO2 compliance verification. NSPI's success in shielding FAM ratepayers depends on the accuracy of fuel consumption forecasts, and changes in energy flows from NLH on the Maritime Link also influenced hedging activities.
XV.B.5. Co-optimization Benefits of ADC The core of ADC benefits arises from the ability of NSP to schedule and dispatch PHP load across the year, both on a daily and seasonal basis, to reduce demand in high-cost periods and increase deman...
AI summary ADC benefits stem from NSP's ability to schedule and dispatch PHP load across different periods to optimize costs. PHP load can be adjusted based on wind output and FAM load, allowing for reduced demand during high-cost periods and increased demand during low-cost periods.