N-6Second Filing of Revisions - NSPI Accounting Policy and Procedures Manual 9/15/2010
5 passages
l auditor review are completed. NSPI filed the first batch with the Board on July 9, 2010 which included 24 policies. NSPI met with the Board's consultants on August 4, 2010 to review the first batch. Please find attached NSPI's second fil...
AI summary Nova Scotia Power Inc. (NSPI) submitted revised accounting policies to the Board, including new sections on the Fuel Adjustment Mechanism and Regulated Return on Equity, and removed sections on Greenhouse Gas Emission Credits. NSPI requests the Board's review and offers to meet with the Board or its consultants during the process.
DEFINITION - Rate base is comprised of the net value of certain assets upon which Nova Scotia Power Inc. ("NSPI") can earn a specified rate of return. The rate base and rate of return are approved by the Nova Scotia Utility and Review Boar...
AI summary Defines rate base as the net asset value upon which NSPI can earn a return, approved by UARB under the Public Utilities Act, with periodic reviews.
REGULATED RETURN ON EQUITY- 1530
AI summary The document pertains to the Regulated Return on Equity proceeding (1530), involving Nova Scotia Power Inc. (NSPI) and the Nova Scotia Utility and Review Board (UARB). It references accounting principles and regulatory oversight related to equity returns.
BACKGROUND The Nova Scotia Utility and Review Board ("UARB") approved Nova Scotia Power Inc.'s ("NSPI's") Return on Equity ("ROE") range and common equity ratio for rate making purposes.
AI summary The Nova Scotia Utility and Review Board (UARB) approved Nova Scotia Power Inc.'s (NSPI) Return on Equity (ROE) range and common equity ratio for rate-making purposes, establishing parameters for determining fair returns in regulatory proceedings.
POLICIES - NSPI files with the UARB their actual regulated return on equity and regulated average common equity annually. - The regulated return on equity is calculated quarterly based on actual equity and actual net earnings as per NSPl's...
AI summary NSPI annually submits regulated return on equity and average common equity figures to the UARB. Calculations use quarterly financial data, including prior year's last quarter, to determine regulated net earnings and capitalization ratios.
N-7Third Filing of Revisions - NSPI Accounting Policy and Procedures Manual 9/24/2010
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REGULATED RETURN ON EQUITY- 1530
AI summary The document discusses the Regulated Return on Equity (ROE) for Nova Scotia Power Inc. (NSPI), focusing on financial performance and regulatory considerations. The text includes a reference to a picture, which may provide additional context not included in the textual content.
BACKGROUND The Nova Scotia Utility and Review Board ("UARB") approves Nova Scotia Power Inc.'s ("NSPI's") Return on Equity ("ROE") range and common equity ratio for rate making purposes. Deleted: approved
AI summary The Nova Scotia Utility and Review Board (UARB) approves Nova Scotia Power Inc.'s (NSPI's) Return on Equity (ROE) range and common equity ratio for rate making purposes.
POLICIES NSPI files with the UARB its actual regulated return on equity and regulated average common equity ratio annually. Deleted: their The annual regulated return on equity is calculated by dividing the regulated net earnings for the c...
AI summary Nova Scotia Power Inc. (NSPI) submits its annual regulated return on equity (ROE) and regulated average common equity ratio to the Nova Scotia Utility and Review Board (UARB). These metrics are calculated using NSPI's regulated financial statements, including regulated net earnings and average equity over specific periods.
EMPLOYEE FUTURE BENEFITS - 2400
AI summary The document provides information on employee future benefits, likely related to pension or retirement plans, under the Nova Scotia Power Inc. (NSPI) context. It includes details on financial obligations and accounting standards.
APPLICATION OF ADMINISTRATIVE OVERHEAD (CONTRACTED ASSETS) - 6235
AI summary The document discusses the application of administrative overhead for contracted assets, likely involving financial and regulatory considerations related to Nova Scotia Power Inc. and the Nova Scotia Utility and Review Board.
PREFERRED DIVIDENDS - 7320
AI summary The document discusses preferred dividends under matter 7320, including financial details and regulatory considerations. It includes references to Nova Scotia Power Inc. and the Nova Scotia Utility and Review Board, highlighting the importance of accounting standards and regulatory oversight in dividend calculations.
POLICY - O1 Long-term debt issued by the Company is reported net of long-term debt payable in one year, as long-term debt on the balance sheet of its financial statements. Detail of the long-term debt issued by the Company are reported in...
AI summary The text discusses the accounting treatment of long-term debt issued by the Company, including commercial paper and debentures, and mentions the deferring of debt defeasance costs by the Company with the approval of the Nova Scotia Utility and Review Board. It also references the reorganization and privatization of Nova Scotia Power Corporation in 1992.
06394Board Order 2/16/2011
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DEFINITION - 01 Rate base is comprised of the net value of certain assets upon which Nova Scotia Power Inc. ("NSPI") can earn a specified rate of return. The rate base and rate of return are approved by the Nova Scotia Utility and Review B...
AI summary The rate base is defined as the net value of certain assets upon which NSPI can earn a specified rate of return, approved by the UARB under the Public Utilities Act. The UARB periodically reviews both the rate base and the allowed rate of return.
BACKGROUND 01 The Nova Scotia Utility and Review Board ("UARB") approves Nova Scotia Power Inc.'s ("NSPl's") Return on Equity ("ROE") range and common equity ratio for rate making purposes.
AI summary The UARB is responsible for approving NSPI's ROE range and common equity ratio for rate-making purposes.
POLICIES - 02 NSPI files with the UARB its actual regulated return on equity and regulated average common equity ratio annually. - 03 The annual regulated return on equity is calculated by dividing the regulated net earnings for the curren...
AI summary NSPI files its regulated return on equity and average common equity ratio annually with the UARB. These metrics are calculated based on regulated financial statements, using specific definitions of equity and capitalization over the previous five quarters.
CAPITALIZATION LIMITS -1560A
AI summary The document discusses capitalization limits under the heading 'CAPITALIZATION LIMITS -1560A', likely involving accounting standards and regulatory considerations related to capital expenditures and return on equity.
POLICIES - 05 Pension obligations and obligations associated with non-pension post-retirement benefits such as health benefits to retirees and retirement awards, are actuarially determined using the projected benefit method prorated on ser...
AI summary The text outlines Nova Scotia Power Inc.'s policies for actuarially determining pension obligations, handling adjustments, calculating pension fund asset values, and accounting for surpluses and deficits. It also mentions the adoption of US accounting standards for employee future benefits.
FINANCIAL REPORTING SYSTEM ORACLE SYSTEM OVERVIEW - 3000
AI summary The document provides an overview of the Oracle financial reporting system used by Nova Scotia Power Inc. (NSPI) for financial reporting purposes. It includes information on accounting standards, financial systems, and regulatory compliance.
ACCOUNT STRUCTURE - 3100
AI summary The document discusses the account structure under the heading 'ACCOUNT STRUCTURE - 3100', which includes a reference to a picture on page 27. The content appears to be related to financial accounting and regulatory matters, though the specific details are not provided in the text.
FINANCING CHARGES - 5800
AI summary The document discusses financing charges under the Nova Scotia Power Inc. (NSPI) regulatory proceeding, focusing on accounting standards and financial mechanisms such as the Fuel Adjustment Mechanism (FAM) and Return on Equity (ROE). It also references regulatory bodies like the Nova Scotia Utility and Review Board (UARB) and accounting standards such as US-GAAP and C-GAAP.
COST COMPONENTS AND ELEMENTS - 6140
AI summary The document provides an overview of cost components and elements related to utility operations, including accounting standards, capital expenditures, and regulatory considerations. It outlines various financial and operational aspects that are relevant to regulatory proceedings.
Computer Hardware &Operating Software (072)
AI summary The section titled 'Computer Hardware & Operating Software (072)' outlines the regulatory context and technical considerations related to computer systems and software used in utility operations, including references to accounting standards and regulatory bodies.
CAPITAL CONTRIBUTIONS IN AID OF CONSTRUCTION - 6220
AI summary The document discusses capital contributions in aid of construction, focusing on financial and regulatory considerations related to infrastructure projects in Nova Scotia. Key themes include accounting standards, capital expenditures, and regulatory oversight.
APPLICATION OF ADMINISTRATIVE OVERHEAD (CONTRACTED ASSETS) - 6235
AI summary The document discusses the application of administrative overhead for contracted assets, focusing on accounting and financial considerations related to Nova Scotia Power Inc. and other relevant entities. It includes references to accounting standards and financial mechanisms.
GENERAL - 01 The cost-of-capital invested in construction work in progress is included in an allowance for funds used during construction 1 ("AFUDC") as an addition to the cost of property constructed using a weighted average cost-of-capit...
AI summary The text discusses the inclusion of the cost of capital in construction work in progress through an allowance for funds used during construction (AFUDC), which is added to the cost of property and recovered through depreciation and future revenues. This ensures equitable recovery of financing costs over the asset's service life.
POLICY - 04 Allowance for funds used during construction should be capitalized at the effective cost-of-capital rate, compounded semi-annually, except in the following circumstances: - a. Projects that will be under construction for less t...
AI summary The text discusses the capitalization of Allowance for Funds Used During Construction (AFUDC) at the effective cost-of-capital rate, compounded semi-annually, with exceptions for short-duration projects, long delays due to extraordinary circumstances, and projects where capitalization would exceed economic value or future benefits.
ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION .. 6240
AI summary The document discusses the Allowance for Funds Used During Construction (AFUDC), which is a financial accounting method used to calculate the cost of capital during the construction of power plants and other capital projects. It involves considerations such as Return on Equity (ROE), Weighted Average Cost of Capital (WACC), and regulatory oversight by the Nova Scotia Utility and Review Board (UARB).
08 Calculation of AFUDC Rate The rate used to capitalize AFUDC is the Company's weighted average cost ofcapital before tax. The rate is calculated annually, in advance, by dividing the forecasted annual interest expense, preferred dividend...
AI summary The AFUDC rate is calculated using the Company's weighted average cost of capital before tax, determined annually by dividing forecasted interest expense, preferred dividends, and net earnings by forecasted average debt and equity. The annual rate is then divided by twelve to obtain the monthly rate.
PURCHASE PRICE DISCREPANCY - 6250
AI summary The document discusses a purchase price discrepancy under matter 6250, likely related to accounting or financial practices involving Nova Scotia Power Inc. (NSPI) and Nova Scotia Power (NSP). The context includes references to accounting standards and regulatory oversight.
ASSETS - NOT USED AND USEFUL - 6350 - 16 No cost of capital (neither return nor interest) is to be capitalized on the existing cost base during the out of service period. Any related cost of capital is to be recovered from customers and ex...
AI summary The document outlines rules for handling costs associated with assets that are out of service, specifying that no cost of capital should be capitalized during this period and that maintenance and mothballing costs should be expensed or deferred with UARB approval.
ACCOUNTING FOR FINANCIAL INSTRUMENTS AND HEDGES - 6960 POWia
AI summary The document discusses the accounting for financial instruments and hedges under Nova Scotia Power Inc. (NSPI), referencing the Nova Scotia Utility and Review Board (UARB) and accounting standards such as US-GAAP and C-GAAP. It includes terms like Fuel Adjustment Mechanism (FAM), Return on Equity (ROE), and Weighted Average Cost of Capital (WACC).
POLICY 01 Dividends to preferred shareholders and the associated income tax expense (benefit) are accrued as declared and the dividends are paid based on approved Board of Directors' resolutions. - 02 Preferred dividends are accrued as dec...
AI summary The text outlines the accounting treatment for preferred shareholder dividends, including accruals based on declared dividends and adjustments for tax expenses and benefits associated with these dividends.
05338Letter request Board review Batch 3 revisions. 9/24/2010
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BACKGROUND The Nova Scotia Utility and Review Board ("UARB") approves Nova Scotia Power Inc.'s ("NSPI's") Return on Equity ("ROE") range and common equity ratio for rate making purposes. Deleted: approved
AI summary The Nova Scotia Utility and Review Board approves Nova Scotia Power Inc.'s Return on Equity range and common equity ratio for rate making purposes.
POLICIES NSPI files with the UARB its actual regulated return on equity and regulated average common equity ratio annually. Deleted: their The annual regulated return on equity is calculated by dividing the regulated net earnings for the c...
AI summary NSPI submits its annual regulated return on equity and regulated average common equity ratio to the UARB. These metrics are calculated based on NSPI's regulated financial statements, using the previous five quarters' equity and capitalization data.
GENERAL - Overhead expenses are integral costs associated with the construction of capital assets. As per NSPI's Accounting Policy & Procedure Manual Section 6100 Cost, the cost of a capital asset not only includes direct construction or d...
AI summary Overhead expenses are considered integral to the construction of capital assets, and their allocation to specific projects is necessary despite their inability to be directly tied to individual expenditures. The Nova Scotia Utility and Review Board has historically approved the allocation of overhead costs based on direct labour costs, as established in a 1982 ruling by the Public Utilities Board.
APPLICATION OF ADMINISTRATIVE OVERHEAD (CONTRACTED ASSETS) - 6235
AI summary The document discusses the application of administrative overhead related to contracted assets, likely involving Nova Scotia Power Inc. and the Nova Scotia Utility and Review Board. It includes references to accounting principles and regulatory processes.
ASSET RETIREMENTOBLIGATIONS (ARO) - 6320
AI summary The document discusses Asset Retirement Obligations (ARO) under the Nova Scotia Power Inc. (NSPI) context, focusing on accounting standards and regulatory considerations related to long-term liabilities for asset retirement.
PROCEDURES Proceeds from the issue of preferred shares are recorded in general ledger account 770 - Preferred Shares. Deleted: should Deleted: 03 Deleted: The UARB, in a March 1993 decision, has stated preferred equity should comprise 8% t...
AI summary The document discusses the accounting treatment of proceeds from preferred shares, referencing a 1993 UARB decision that preferred equity should make up 8% to 10% of the total capital structure, with the relevant general ledger account being 770 - Preferred Shares.
06100Compliance Filing - Accounting Policy and Procedures Manual 1/11/2011
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DEFINITION - 01 Rate base is comprised of the net value of certain assets upon which Nova Scotia Power Inc. ("NSPI") can earn a specified rate of return. The rate base and rate of return are approved by the Nova Scotia Utility and Review B...
AI summary The rate base refers to the net value of certain assets upon which Nova Scotia Power Inc. can earn a specified rate of return, as approved by the Nova Scotia Utility and Review Board in accordance with the Public Utilities Act. The rate base and allowed rate of return are periodically reviewed by the UARB.
REGULATED RETURN ON EQUITY- 1530
AI summary The document appears to be a section from a regulatory proceeding related to the Regulated Return on Equity, likely involving Nova Scotia Power Inc. and the Nova Scotia Utility and Review Board. However, the content is not visible as it is represented by an image placeholder.
BACKGROUND The Nova Scotia Utility and Review Board ("UARB") approves Nova Scotia Power Inc.'s ("NSPI's") Return on Equity ("ROE") range and common equity ratio for rate making purposes.
AI summary The Nova Scotia Utility and Review Board approves Nova Scotia Power Inc.'s Return on Equity range and common equity ratio for rate making purposes.
POLICIES - NSPI files with the UARB its actual regulated return on equity and regulated average common equity ratio annually. - The annual regulated return on equity is calculated by dividing the regulated net earnings for the current year...
AI summary NSPI annually files its regulated return on equity and average common equity ratio with the UARB. The return on equity is calculated using regulated net earnings and average equity over the previous five quarters. The average common equity ratio is determined by dividing average equity by average capitalization amounts from the same period.
CAPITALIZATION LIMITS - 1560A
AI summary The document discusses capitalization limits under the heading 'CAPITALIZATION LIMITS - 1560A', though the content is not fully visible due to the image reference. It likely involves regulatory considerations related to capital expenditures and financial accounting standards.
POLICIES - 05 Pension obligations and obligations associated with non-pension post-retirement benefits such as health benefits to retirees and retirement awards, are actuarially determined using the projected benefit method prorated on ser...
AI summary The text outlines the accounting and actuarial methods used by Nova Scotia Power Inc. for pension obligations and post-retirement benefits. It describes how obligations are determined, adjusted, and amortized, as well as the recognition of plan surpluses and deficits on financial statements.
ACCOUNT STRUCTURE - 3100
AI summary The document discusses the account structure related to Nova Scotia Power Inc. and includes a reference to a visual element, likely a chart or table, that provides further details on the accounting structure.
GENERIC ACCOUNT DESCRIPTIONS
AI summary This section outlines the generic account descriptions relevant to the regulatory proceeding, focusing on financial and accounting standards applicable to utility companies in Nova Scotia.
11 Defeasance Earnings These earnings are generated through the management of the portfolio of investments related to the defeased debt.
AI summary Defeasance earnings are derived from the management of investments tied to defeased debt, which involves the use of specific financial instruments and accounting standards to ensure proper handling and reporting of such earnings.
COST COMPONENTS AND ELEMENTS - 6140
AI summary The document outlines the cost components and elements related to utility operations, focusing on financial accounting standards, regulatory considerations, and cost recovery mechanisms. It includes discussions on capital expenditures, depreciation, and return on equity.
APPLICATION OF ADMINISTRATIVE OVERHEAD (CONTRACTED ASSETS) - 6235
AI summary The document pertains to the application of administrative overhead for contracted assets, likely involving financial and regulatory considerations related to Nova Scotia Power Inc. and the Nova Scotia Utility and Review Board.
ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION - 6240
AI summary The document discusses the Allowance for Funds Used During Construction (AFUDC), a financial accounting method used in utility projects. It involves considerations related to capital expenditures, return on equity, and regulatory oversight. The AFUDC is a key component in the financial planning and reporting of infrastructure projects.
08 Calculation of AFUDC Rate The rate used to capitalize AFUDC is the Company's weighted average cost of capital before tax . The rate is calculated annually, in advance, by dividing the forecasted annual interest expense, preferred divide...
AI summary The AFUDC rate is calculated using the Company's weighted average cost of capital before tax, determined annually by dividing forecasted interest expense, preferred dividends, and net earnings by average debt and equity. The annual rate is then divided by twelve to obtain the monthly rate.
ASSET RETIREMENTOBLIGATIONS (ARO) - 6320
AI summary The document discusses Asset Retirement Obligations (ARO) under the Nova Scotia Utility and Review Board (UARB). It includes references to accounting standards and regulatory frameworks applicable to Nova Scotia Power Inc. (NSPI) and Nova Scotia Power Corporation (NSPC).
NEW BUSINESS COSTS - 6940
AI summary The document discusses new business costs related to Nova Scotia Power Inc. (NSPI) and includes references to financial and regulatory processes. It involves topics such as return on equity, fuel adjustment mechanisms, and capital expenditures.
DEFERRED CHARGES
AI summary The section discusses deferred charges, which are financial obligations that have been recognized but not yet paid. These charges are typically related to long-term assets and liabilities, and their treatment is governed by accounting standards and regulatory requirements.
DEFERRED CHARGES
AI summary The section discusses deferred charges, which are financial obligations that have been recognized but not yet paid. These charges are typically related to long-term assets and liabilities, and their treatment is governed by accounting standards and regulatory requirements.
POLICY 02 Retained earnings should be sufficient to maintain the Company's overall capital structure within the ranges prescribed by the Nova Scotia Utility and Review Board ("UARB"). 1 1 Please refer to NSPI Accounting Policy and Procedur...
AI summary The text states that retained earnings should be sufficient to maintain the Company's overall capital structure within the ranges prescribed by the Nova Scotia Utility and Review Board (UARB).
PREFERRED DIVIDENDS - 7320
AI summary This section of the document, titled 'Preferred Dividends - 7320,' appears to be part of a regulatory proceeding related to Nova Scotia's utility sector, specifically addressing financial and accounting matters involving Nova Scotia Power Inc. and the Nova Scotia Utility and Review Board.
LONG-TERM DEBT - 8100
AI summary The document section 'LONG-TERM DEBT - 8100' appears to be a regulatory proceeding chunk related to long-term debt, potentially involving Nova Scotia Power Inc. and other entities, though the specific content is not visible due to the image link.
ACCOUNTS PAYABLE AND ACCRUED CHARGES - 8220
AI summary The document discusses accounts payable and accrued charges related to Nova Scotia Power Inc. and other entities, highlighting financial obligations and accounting standards relevant to the regulatory proceeding.