Topic:"Return On Equity" in M12914

s incorporated the Nova Scotia Energy Board's (NSEB, Board) recently 24 determined return on equity of 8.75 percent and a debt-to-equity ratio (DER) of 70/30 25 for undepreciated capital expenditures. 1 For clarity throughout this Applicat...

AI summary NSPML discusses the inclusion of the NSEB's determined return on equity and debt-to-equity ratio in its application. It outlines the distinction between the Placeholder Marine Survey cost and the Contracted Marine Survey cost, and mentions stakeholder consultations regarding the marine survey approach and regulatory process.

Date Filed: June 25, 2026 Page 18 of 28 1 associated cost recovery rights. Of note is that, at this time, none of the lenders were 26 costs incurred. In the Final Cost Decision, the NSEB confirmed the prudence of 27 NSPML's hedging arrange...

AI summary The document discusses the Deferred Financing Charges (DFC) related to the Maritime Link project, including the amortization period and recovery schedule. It notes that the NSEB confirmed the prudence of NSPML's hedging arrangements and outlines the remaining DFC to be recovered in 2027 and 2028. An 8.75% return on equity (ROE) is applied for 2027 and 2028, consistent with the 2026 Assessment Decision.

2 From the hypothetical example, the blended debt rate at NSPML remains lower than NS 3 Power's after incorporation of the new debt but the overall cost to customers of the new 4 debt is higher when NSPML borrows the funds. 5 6 This trend...

AI summary The text discusses the blended debt rate at NSPML and compares it to NS Power, noting that while NSPML's rate remains lower, the overall cost to customers increases with new debt. It also highlights how different borrowing mechanisms affect interest rate spreads and mentions the forecasted WACC for NSPML in 2027 and 2028.

1 (vii) recovery based on the approach described in the 2 Application with a true-up adjustment once the actual 3 Contracted Marine Survey cost is known, with the amount 4 recovered where actual costs are lower than the 5 Placeholder; and...

AI summary The text outlines a recovery approach based on the actual Contracted Marine Survey cost, with adjustments made once the true-up cost is known. It also mentions a table of scenarios that includes cumulative amounts collected from ratepayers, WACC impacts, and net present value of customer payments over the recovery period.

Request IR-4: Refer to the Application, Section 2.5 2027 and 2028 Equity Financing Costs, page 19 of 28, lines 16-27, which states: For the 2027 and 2028 Assessment, NSPML has applied an ROE of 8.75 percent, consistent with the Board's 202...

AI summary The document requests detailed schedules showing the return on equity (ROE) and cost of capital allocations and financing costs for 2027 and 2028, separated in spreadsheet format with formulas intact, based on NSPML's application of an 8.75% ROE and 30% equity thickness to its average rate base.

Request IR-5: Refer to the Application, Section 4.0 Marine Survey Cost Recovery (In Year Or Smoothed), page 21 of 28, lines 17-24, and page 22 of 28, lines 4-14: - a) Please provide the evidence that supports NSPML's claim that its current...

AI summary Request IR-5 asks Nova Scotia Power Marine Limited (NSPML) to provide evidence regarding its borrowing rates, costs incurred due to debt-to-equity ratios, and estimated compliance costs with smoothing, compared to customer cost increases based on WACC differences.