Topic:"Return On Equity" in M12619

2026 ACE Plan Appendix D Page 35 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Summary Document 8.0 Financial Parameters The capital program is financed through a combina on of debt and equity. Th...

AI summary This section discusses the financial parameters used by Nova Scotia Power Inc. (NSPI) in its capital planning, including the weighted average cost of capital (WACC) and its use in calculating the Allowance for Funds Used During Construction (AFUDC). It emphasizes the importance of financial factors such as cost of capital, depreciation, inflation, and investment risk in economic analysis.

, or can be incorporated within a proceeding, such as the Annual Capital Expenditure Plan. Month DD, 2025 Page 30 of 113 Date: December 12, 2025 Page 549 of 782 REDACTED REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Appendix D...

AI summary Nova Scotia Power Inc. outlines its capital financing through debt and equity, emphasizing the use of weighted average cost of capital (WACC) to calculate Allowance for Funds Used During Construction (AFUDC). WACC is approved by the Nova Scotia Energy Board (NSEB), and capital projects must consider factors like cost of capital, depreciation, inflation, taxes, and investment risk in economic analysis.

NS Power Capitaliza on Structure The mid-point of capital structure ranges approved by the NSEB is used as the basis for calcula on of Cost of Capital. Long Term Debt Structure The debt structure is based on the target structure accepted b...

AI summary The document outlines NS Power's capital structure, including long-term debt and equity components, and explains the calculation of the weighted average cost of capital (WACC) based on the NSEB-approved mid-point range. It emphasizes the annual revision of WACC, its use in AFUDC rate approvals, and integration into the ACE Plan's economic models.

e market, its economic life has ended for the organiza on as soon as the manufacturer ceases to produce the product, market the product, or provide spares and services. Month DD, 2025 Page 40 of 113 Date: December 12, 2025 Page 559 of 782...

AI summary The document outlines Nova Scotia Power Inc.'s approach to calculating Net Present Value (NPV) for capital expenditure decisions, emphasizing the time value of money, discounting future costs to the present, and using the cost of capital as the discount rate to ensure investment recovery and return. It highlights the importance of revenue requirements in investment decisions, independent of financing methods.

tes submitting CI 39472 HYD – Mersey Redevelopment 13 Phase 1 only once the IRP process has concluded and a full-scope review confirms the 14 redevelopment remains the best value for customers. Page 17 of 17 Date: December 12, 2025 Page 64...

AI summary The Mersey Redevelopment Phase 1 is contingent on the completion of the Integrated Resource Plan (IRP) process and a full-scope review confirming its value to customers. A WACC rate of 5.08% is noted in the 2026 ACE Plan Appendix E.

2026 ACE Plan Appendix E Attachment 1 Page 1 of 4 NON-CONFIDENTIAL WACC Rate 5.08%

AI summary The 2026 Annual Capital Expenditure (ACE) Plan Appendix E specifies a Weighted Average Cost of Capital (WACC) rate of 5.08%, reflecting a key financial parameter in the plan's cost modeling and investment analysis.

190,000 2015-2024 average Mersey production (MWh) 2% Inflation rate (matches HIP) Marginal cost of elec $ 81.57 $ 84.15 $ 87.07 $ 105.19 $ 107.29 $ 109.44 $ 111.63 $ 113.86 $ 116.14 $ 118.46 $ 120.83 $ 123.25 $ 125.71 Marginal cost of capa...

AI summary The text presents marginal cost data for electricity and capacity from 2015-2024, showing increasing costs over time, and references a 5.08% WACC rate. It also mentions the 2026 ACE Plan Appendix E Attachment 1, indicating financial planning context.

2026 ACE Plan Appendix E Attachment 1 Page 2 of 4 NON-CONFIDENTIAL WACC Rate 5.08%

AI summary The document appendix includes a weighted average cost of capital (WACC) rate of 5.08% as part of the 2026 Annual Capital Expenditure (ACE) Plan.

Marginal cost of elec $ 128.23 $ 130.79 $ 133.41 $ 136.07 $ 138.80 $ 141.57 $ 144.40 $ 147.29 $ 150.24 $ 153.24 $ 156.31 $ 159.43 $ 162.62 Marginal cost of capacity $ 146.00 $ 149.00 $ 152.00 $ 155.00 $ 158.00 $ 161.00 $ 164.00 $ 167.00 $...

AI summary The document presents marginal cost data for electricity and capacity from 2025 to 2026, showing increasing trends. It references the 2026 ACE Plan Appendix E and includes a WACC rate of 5.08%. Portions of the text are redacted as confidential.

2026 ACE Plan Appendix E Attachment 1 Page 3 of 4 NON-CONFIDENTIAL WACC Rate 5.08%

AI summary The 2026 ACE Plan Appendix E Attachment 1 specifies a weighted-average-cost-of-capital (WACC) rate of 5.08%, a key financial metric for capital expenditure planning and cost-of-capital proceedings.

192.08 $ 195.92 $ 199.84 $ 203.84 $ 207.91 $ 212.07 $ 216.31 $ 220.64 $ 225.05 $ 229.55 $ 234.14 $ 238.83 Date: December 12, 2025 Page 652 of 782 REDACTED REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Appendix E Attachment 1 Pa...

AI summary The document includes a WACC rate of 5.08% and appears to be part of the 2026 ACE Plan Appendix E. The text contains numerical data and references to a non-confidential section of a regulatory proceeding.

2026 ACE Plan Appendix E Attachment 1 Page 4 of 4 NON-CONFIDENTIAL WACC Rate 5.08%

AI summary The 2026 Annual Capital Expenditure (ACE) Plan Appendix E Attachment 1 specifies a Weighted Average Cost of Capital (WACC) rate of 5.08%, reflecting the financial benchmark for capital project evaluations.

1 Incorporated (WTI) was formed in Nova Scotia as an ownership arrangement pursuant to the 2 Prescribed Projects Regulations made under the NS Public Utilities Act, to facilitate a low-cost 3 equity investment in the Project by the Canada...

AI summary WTI, a deemed utility under the Public Utilities Act, submitted an application for project cost approval and rate base establishment for the NS-NB Reliability Intertie Project. The NSEB approved the project in November 2025, directing WTI to update progress on the Path to 2030 timeline and participate in NS Power’s ACE Plan proceedings. Land acquisition and right-of-way clearing in Nova Scotia and New Brunswick are progressing ahead of schedule.

WACC Rate 5.08% WACC Rate 5.08% Sustaining Total Capital Investment $ 16,325,526 $ 72,841 $ 668,676 $ 75,783 $ 77,299 $ 78,845 $ 201,055 $ 82,030 $ 251,013 $ 85,344 $ 87,051 $ 88,792 $ 2,400,054 $ 92,379 $ 94,227 $ 96,112 $ 98,034 $ 99,994...

AI summary The document presents a table with financial data related to capital investments and net present values (NPV) for various projects and locations. The weighted average cost of capital (WACC) is listed at 5.08%, and the table includes figures for sustaining total capital investment and NPV for different regions and projects.

Mr. Chair and Board Members: I'm writing this because, frankly, the math coming out of ns power financials just doesn't sit right with the people actually paying the bills. We've watched this utility's "Property, Plant, and Machinery" more...

AI summary The writer criticizes Nova Scotia Power's financial practices, highlighting the increase in property, plant, and machinery values and the growth of Emera's equity without new green power investments. They argue that the utility is using public money through debt and depreciation to generate returns that are ultimately paid by ratepayers.

6.2 Regulatory Compact [179] Any analysis of what affordability means in the public utility context starts with the regulatory compact enshrined in the Public Utilities Act . In essence, in return for fulfilling an obligation to provide re...

AI summary The regulatory compact under the Public Utilities Act establishes that public utilities must provide safe, reliable service and can recover prudently incurred costs and a reasonable return on equity. Affordability in this context relates to selecting the least costly option to meet service requirements, as outlined in cost of service and rate of return frameworks.

please identify the jurisdiction, the applicable cap, and whether the cap applies generally or only in the absence of a risk matrix. Reference: Exhibit N-9, Evidence of John D. Wilson, pages 21 – 24. Preamble: Mr. Wilson reviewed NSPI’s pr...

AI summary Mr. John D. Wilson discusses concerns with NSPI’s proposed scope change, noting significant ambiguity and suggesting a two-step process for filing changes that may exceed a Board-specified threshold. The process includes submitting a letter with details on the change, budget impact, alternatives, and plans for revised applications.