Topic:"Return On Equity" in M13133

NOVA SCOTIA ENERGY BOARD NOTICE OF PUBLIC HEARING Application by Nova Scotia Power Incorporated For Approval of a Financing Order authorizing the securitization of $1 billion in costs, collected through a Securitization Cost Recovery Rider...

AI summary Nova Scotia Power Incorporated has applied for approval to securitize $1 billion in costs through a Securitization Cost Recovery Rider, including costs related to thermal generation asset retirement, fuel and purchased power under-recoveries, and deferral accounts. The request is made under the Public Utilities Act and Financing Orders and Securitized Bonds Regulations.

- (b) NPV analysis assumes NSPI equity ratio applies to the full amount of securitization (i.e. $1 billion) under the traditional recovery approach. - i. Please explain whether NSPI earns return on equity on all other items proposed for in...

AI summary The text discusses the NPV analysis of securitization, specifically whether NSPI earns return on equity on various deferrals in addition to unrecovered Thermal Assets. It also asks for the regulatory basis for this approach instead of charging interest expenses.

Request IR-7: - References: Application page 25 and Appendix B (Confidential) - Nova Scotia Power has calculated a Net Present Value difference as between the proposed plan - and the assumed "Traditional Recovery" of more than $265 Million...

AI summary Nova Scotia Power has calculated a $265 million Net Present Value difference between a proposed plan and the 'Traditional Recovery' approach. The request asks for an analysis of how much of this difference is due to the lower cost of capital and the longer 30-year term of the Securitized Financing, as well as a comment on the inter-generational fairness implications of the term choice.