Topic:"Return On Equity" in M12780

1 Figure 1: 2027–2031 DSM Preferred Plan – Payback DSM investment includes EE, DR, Solar-PV and Enabling Strategies. Green bars are nominal investment. Blue bars are nominal avoided cost. Yellow line is a 2027 net present value (NPV) of th...

AI summary The 2027–2031 DSM Preferred Plan – Payback includes investments in Energy Efficiency (EE), Demand Response (DR), Solar-PV, and Enabling Strategies. Green bars represent nominal investment, blue bars show avoided costs, and the yellow line depicts NPV using NS Power's WACC. The analysis evaluates cost recovery and financial viability of DSM initiatives.

1 Table 6: 2029 Alternate Scenario Savings and Investment by Program Component 2029 Investment ($ million) Lifetime Benefits ($ million) First Year Energy Savings (GWh) Lifetime Energy Savings (GWh) Peak Demand Savings (MW) Available Deman...

AI summary The text presents a table titled '2029 Alternate Scenario Savings and Investment by Program Component' with columns related to investment, benefits, energy savings, and other metrics. However, no data is provided under the 'Residential EE Programs' row, leaving the content incomplete.

Figure 1: Glossary of Terms Term Definition Nova Scotia Energy Board Approved Cost effectiveness testing In the Board's Order on a new Benefit-Cost-Analysis Test (BCA) Test for Evaluating Demand-Side Management (DSM) Plans, the Board direc...

AI summary The Nova Scotia Energy Board directed E1 to use the Program Administrator Cost (PAC) test for evaluating the cost-effectiveness of its Demand Side Management (DSM) Plan starting in 2027. The Board also mandated the use of NS Power's Weighted Average Cost of Capital (WACC) as the discount rate. Strategic electrification must reduce both greenhouse gas emissions and electricity costs for customers.

America's energy commodity market. NSPI holds a 50 per cent indirect voting interest in Wasoqonatl Transmission Incorporated ("WTI"), for further details refer to the "Outlook – Developments" section. NSPI is a public utility as defined in...

AI summary NSPI operates as a regulated public utility under the Public Utilities Act in Nova Scotia, with rates approved by the NSEB. NSPI uses a Fuel Adjustment Mechanism to recover fluctuating fuel costs, and its return on equity is set within a specific range. The energy industry is seasonal, and quarterly results may not reflect annual trends.

Operations NSPI's earnings are most directly impacted by the range of ROE and capital structure approved by the NSEB, the prudent management and approved recovery of operating costs, electric sales volumes, weather, the approved recovery o...

AI summary NSPI's earnings in 2026 are expected to be at the low end of its allowed ROE range, with higher sales volumes and increased capital investment of approximately $720 million. These projections are based on the assumption that new base rates are approved by the NSEB in the GRA and are consistent with the settlement agreement.

Interest Rate Risk: NSPI utilizes a combination of fixed and floating rate debt financing for operations and capital expenditures, resulting in an exposure to interest rate risk. The allowed range of ROE will generally follow the direction...

AI summary NSPI uses a mix of fixed and floating rate debt, exposing it to interest rate risk. The allowed return on equity (ROE) range is influenced by interest rates, with a lag due to the regulatory process. 75% of NSPI's debt is fixed rate with an average term of 17 years. Inflation may increase operating costs, capital investment, and fuel costs relative to customer rates.

General Rate Application ("GRA"): On April 30, 2026, the NSEB approved the GRA with changes effective on May 1, 2026. This results in an average annual customer rate increase of 1.2 per cent, and a further average annual increase of 2.5 pe...

AI summary The NSEB approved the GRA on April 30, 2026, effective May 1, 2026, with a 1.2% annual rate increase and a further 2.5% increase in 2027. The approved rates will increase annual revenue by $31 million in 2026 and $97 million in 2027. Fuel cost adjustments will be managed via the FAM process, and NSPI's ROE range remains at 8.75% to 9.25%. The depreciation study and storm rider were also approved, and NSPI plans to recover deferred costs through securitization, pending provincial support.

1 passed and yields around $200 million more in PAC net benefits compared to E1's 2 Preferred Scenario. The PAC already accounts for the cost of capital at NS Power's 3 WACC of 6.65%, meaning it already prices in the time value of money an...

AI summary The document discusses the financial benefits of a proposal, noting that it yields around $200 million more in PAC net benefits compared to E1's Preferred Scenario. It also mentions that the PAC already accounts for the cost of capital at NS Power's WACC of 6.65%, which includes the time value of money and cost recovery through the DCRR.

Request IR-46: - Regarding Appendix A, Attachment 1: worksheet PAC Assumptions: - a. Do the costs provided by NS Power for energy, capacity, transmission and distribution align with the recently approved Cost of Service Study approved by t...

AI summary Request IR-46 contains three questions regarding NS Power's alignment with a Board-approved cost study, inflation adjustments in Program Administration costs, and annual updates to the weighted average cost of capital. The questions seek clarification on cost assumptions, inflation adjustments, and capital update practices.

rding the quote above: a. Does E1 anticipate an updated IRP between 2027 and 2031? If so, when would this process begin and when would it conclude? b. Does E1 anticipate updated avoided costs between 2027 and 2031? If so, when would these...

AI summary The document contains three non-confidential information requests related to E1's 2027-2031 DSM Plan, including updates to the IRP, avoided costs, and BCA analysis. Requests also address NS Power's provision of long-run marginal emissions rates and the application of WACC and social discount rates in BCA calculations. References to Matter 12282 and the BCA Test Order are included.

The Industrial Group submitted: …NSPI's ratepayers have an interest in whether NSPI's executives and management team are appropriately compensated (not excessively or inadequately compensated) to attract and retain talent, and they are pro...

AI summary The Industrial Group emphasizes the importance of appropriate executive compensation for NSPI to attract talent and act in ratepayers' best interests, especially within the Emera Group. The Consumer Advocate links NS Power's request for increased ROE and equity thickness to potential executive compensation, arguing that without evidence of reasonableness, ratepayers cannot fully assess the justification for these increases.

on by NS Power. Having reviewed all the submissions, the Board concludes that the Mercer Reports are relevant and should be available to the Intervenors who have signed a confidentiality undertaking. At the very least, as noted by Ms. Rubi...

AI summary The Board has concluded that the Mercer Reports, which detail executive compensation at NS Power, are relevant and should be made available to intervenors who have signed a confidentiality agreement. The Board supports the public interest in transparency regarding executive pay, emphasizing that ratepayers have a right to know whether compensation is justified. NS Power agrees in principle but argues that disclosure should only occur if the compensation is being recovered in rates.

15 Request IR-6: 16 Reference: E-21, Page 23, lines 15-17. 17 … However, customers are already paying a DCRR, and even the IRP level 18 of DSM spending barely impacts the DCRR that customers are already 19 paying. - 20 (a) Please quantify...

AI summary The text requests a quantification of the impact of increased investment in demand-side management (DSM) on the Discounted Cash Flow Return Rate (DCRR) under different scenarios, including the Preferred Plan and the IRP-aligned scenario, and asks for an explanation of the basis for the conclusion that the impact is limited or immaterial.

8 Request IR-7: - 9 Preamble : At pages 24-25 of Mr. Love's evidence (Tables 2 and 3), he presents the 10 change in non-participant bills for the IRP-aligned scenario compared to E1's Preferred 11 Plan. For the plan years 2027-2031, he sho...

AI summary The request seeks clarification on the incremental cost of the IRP-aligned scenario compared to E1's Preferred Plan for Large and Medium Industrial classes from 2027 to 2031, including the absolute dollar value and methodology. It also asks whether the analysis uses the Preferred Plan or a no-DSM counterfactual as the baseline.