N-92026-2027 GRA Appendix 12 A-C - Cost of Service Study Process - Redacted
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3 5.1 Classification of Generation Costs – SLF Methodology 4 - 5 NS Power's current approach to the classification of generation-related fixed costs (e.g. - 6 depreciation, financing) is first to classify environmental and fuel conversion-...
AI summary NS Power proposes shifting from a hybrid classification method (ELCC, SLF) to a uniform SLF-based approach for all generation costs, aiming to simplify cost tracking, enhance COSS transparency, and align with decarbonization goals. This reflects system changes due to renewable integration and asset retirements.
NON-CONFIDENTIAL 1 Request DR-3: 2 3 Please indicate whether the ELCC factors relied upon by NS Power in resource planning 4 reflect resource performance during the annual peak load hour, the top three-monthly peak 5 load hours, a reliabil...
AI summary NS Power explains that its ELCC factors are based on maintaining a loss of load expectation of 0.1 days per year, considering peak load events during winter months when heating demand is highest. The ELCC values are derived from probabilistic assessments over many years of weather and load data, not just specific hours.
Cost of Service Study Process (NSUARB M11475) NSPI Responses to CA Data Requests 1 Request DR-70: 2 3 Please provide one or more estimations of the relative values for the Maritime Link benefit 4 streams as itemized in IG RIR-4, but also c...
AI summary NSPI is responding to a data request regarding the Maritime Link benefit streams, including grid support benefits, and considers methods for valuing these streams based on cost, benefit, or a hybrid approach. The response outlines potential valuation concepts such as transmission valuation and energy valuation based on system avoided costs.
Cost of Service Study Process (NSUARB M11475) NSPI Responses to PHP Data Requests 1 breakdown between fuel (34.3 percent) and non-fuel (65.75 percent) costs of other 2 biomass purchases. 3 4 • Tab "Rate Base Classification" provides classi...
AI summary The text discusses the breakdown of fuel and non-fuel costs, including biomass purchases, and provides details on how costs are classified and allocated to energy and demand. It also references the Maritime Link (ML) and the FAM Plan of Administration for costing treatment under the Nova Scotia Block.
Cost of Service Study Process (NSUARB M11475) NSPI Responses to SBA Data Requests 1 (b) WACC: 2022 NSUARB approved at 6.33 percent 2 3 (c) System Depreciation Lifetime: 35 years 4 5 (d) Fixed O&M: $18.90 KW/year (expressed in 2022 dollars)...
AI summary The document provides details from NSPI's responses to SBA data requests regarding the Cost of Service Study Process. It includes WACC, system depreciation, O&M costs, property tax, and ELCC values for new thermal units. These figures are relevant to the 2022 NSUARB approval and the 2020 IRP.
Capacity value is a key concept for both resource planning and for functionalizing generation costs - In COSS, as the average capacity value of resources on the system decreases, costs are shifted from demand to energy - In resource planni...
AI summary Capacity value is crucial for resource planning and generation cost allocation. Lower average capacity values shift costs from demand to energy, influenced by factors like climate change, gas availability, and interactions between renewable and storage technologies.
Table 4: Pros and cons of Probability of Dispatch method Pros Cons Removes a layer of subjectivity because it removes the need to classify overall fixed costs to energy and capacity. Potentially more accurate in assigning costs of resource...
AI summary The Probability of Dispatch method has pros such as reducing subjectivity in cost classification and potentially more accurate cost assignment. However, it has cons like high data requirements, not considering the rationale for investments, and volatility due to system changes. The method assigns generator costs equally across usage hours, potentially misrepresenting investment rationale.
4 Table 2 – Summary of NS Power Proposed Methodology Status Quo Change Generation • Allocation except for treatment of purchased power • No initial classification to energy for environmental and fuel conversion reasons • Use system load fa...
AI summary NS Power proposes changes to its methodology for classifying and allocating costs related to generation, transmission, and distribution. Key changes include refunctionalizing radial-to-generation, using system load factors for classification, and creating new storage sub-functions. These changes aim to improve cost allocation and align with updated regulatory practices.