N-52024-2025 Bates White FAM Audit Report - Redacted
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NSPI's evaluation process allows for direct comparisons of LSL with LSH offers, as it adjusts for coal quality, heat content, and environmental attributes, and does so on a fully-delivered basis (therefore accounting for transportation). A...
AI summary NSPI evaluated coal options, selecting LSH over LSL despite higher costs, citing performance and availability. The decision was approved by the FST, with NSPI providing rationale for temporary risk exposure exceedances. CROC highlighted risks associated with the transaction and NSPI's coal procurement practices.
Second Quarter 2025 NSPI reported entering into three new contracts for solid fuel supply in the second quarter of 2025. This is shown in Figure IV-21. LSL, LSH Purchases and Deferrals in Wake of CoV: On March 7, 2025, NSPI issued an RFP f...
AI summary NSPI entered into new solid fuel contracts in Q2 2025, but after receiving an SO2 CoV, adjusted its procurement strategy. The CoV allowed higher coal consumption and more use of mid-sulfur coal, reducing the need for LSH. NSPI deferred some LSH supply to 2026 and declined additional LSH procurement in 2025.
forward. This contrasts directly with FAM balances, which accrue interest at NSPI's weighted-average cost of capital. We recommend NSPI consider ways to capture the time value of these bark deficits. Our fourth concern relates to the price...
AI summary The text discusses concerns regarding the pricing of chips used by NSPI in its energy balance process and the allocation of costs when PHP's chip deficit exceeds delivered volumes. It recommends capturing the time value of bark deficits and charging PHP the blended cost of chips from NSPI's inventory for incremental volumes.
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.
X.B.3.b.i. Fuel Switching Results In a prior Audit Report, we concluded that Tufts Cove's dual-fuel units had numerous instances during the Audit Period of being limited in their ability to burn HFO.429 We concluded that limitations on the...
AI summary The audit found that Tufts Cove Unit 1 cannot fuel switch, while Units 2 and 3 successfully switched fuels multiple times during the audit period. However, external factors such as pipeline pressure limitations prevented fuel switching in some cases, potentially impacting the effectiveness of NSPI's natural gas price hedging strategy.