Topic:"Revenue Requirement" in M03632

Scenarios in $2012 Va lue fo r S On ly tea m- Gr s V alu e f CH P os or Ne t V alu e f CH P or Steam energy 117852.1344 Electric Energy 43115 Fuel Use 313045 Biomass CHP ( (condensinc ı turbine: : new boiler in steam-onl v scenario in vear...

AI summary The document presents a table with various financial and operational data related to energy scenarios in 2012, including steam energy, electric energy, fuel use, and biomass CHP. It includes assumptions such as general inflation factors, capital costs, reserves, financing details, and project cost calculations, all net of a steam-only scenario.

Synapse Exhibit L Assumptions: Notes: Operating Inputs Net Generator Capacity (MW) 1.00 Energy Production: Net Capacity Factor Net of plant availability and other loss factors Net Output in MWhs 4,818 Annual Operating Expenses Annual Fuel...

AI summary This exhibit outlines financial and operational assumptions for a project, including net generator capacity, annual operating expenses, revenue assumptions, and tax rates. It includes details on fuel costs, maintenance, and tax implications, as well as metrics such as the 20-year equity IRR and debt service coverage ratio.

Synapse Exhibit M Assumptions: Notes: Operating Inputs Net Generator Capacity (MW) 0.50 Energy Production: Net Capacity Factor 37% Net of plant availability and other loss factors. Net Output in MWhs 1,621 The of plant availability and oth...

AI summary This exhibit outlines operating inputs and assumptions for a project, including net generator capacity, energy production, annual operating expenses, and revenue assumptions. It includes metrics such as net capacity factor, annual fuel cost, and return on investment metrics like 20-year equity IRR.

2nd model example: - ! If"outside"equity"sourced"@15%"! (which"is"impossible"to"find) ="$150,000"year" - ! then"CEDIF gets"$50,000,"minus"admin."costs,"taxes"etc."which"will"be"a"minimum" $20,000."year,"so"$30,000"can"be"given"to"sharehold...

AI summary This example illustrates a financial model where CEDIF's investment generates returns for shareholders, factoring in administrative costs, taxes, and dividend distribution, resulting in a 2% return on a $1.1 million investment.

100.0% Total annual revenue - amount in A/R at end of year 50 8.3% Revenue Electrical energy production Rate 0.2130 0.2168 0.2207 0.2247 0.2288 0.2329 0.2371 0.2413 0.2457 0.2501 0.2546 0.2592 0.2638 52,553,868 52,553,868 52,553,868 52,553...

AI summary The document presents a table showing the total annual revenue and rate percentages over a period. The data includes figures for electrical energy production and rate details, with consistent values across multiple years.

6 For community renewables projects, major parts of the installation process 7 are likely to be beyond the capabilities of local firms, but grading access roads, 8 erecting utility poles and stringing conductor for the customer portion of...

AI summary The text discusses the potential for local involvement in community renewables projects, noting that certain tasks can be handled by local organizations and volunteers, which can reduce development costs. It also references Synapse's estimate of development cost reductions and their impact on revenue requirements for large wind and tidal projects.

ance types, commercial specifications, industrial data manipulation and trending, sales and resale. 12. MDPU 243; Eastern Edison Company Rate Case; Massachusetts Attorney General; August 19 1980. Rate design: declining blocks, promotional...

AI summary The text lists various regulatory proceedings and cases from Massachusetts and Texas, involving topics such as rate design, revenue allocations, conservation expenses, PURPA regulations, and forecasting. These cases include testimony from the Massachusetts Attorney General and other entities.

NOTE: Green Fields are the assumptions differences which we believe to bee more reasonable. TEMPLATE COMPARISON TO CBCL ST> FX BIOMASS REPORT CBCL MODEL CBEX MODEL EXHIBIT-B-5 REVENUE & EXPENSES: Revenue: Electricity $/KWH $ 52,553,868 0.2...

AI summary The text presents a comparison of revenue and expenses between the CBCL model and the CBEX model, including figures for electricity and steam revenue, as well as gross revenue and availability percentages. The differences in assumptions are highlighted as being more reasonable.

Electrical Loses and Availability Scotian WindFields Inc believes that Synapse has neglected availability and electrical loses in their calculations. While net capacity factors have been considered, the figures assumed are more in line wit...

AI summary Scotian WindFields Inc. argues that Synapse's calculations for wind projects have overlooked availability and electrical losses, which significantly impact revenue and ROE. They recommend reducing output by 6% for both large and small wind classes to account for these factors.

Finance & Energy "Flying Through Turbulence", Public Utilities Fortnightly , April 2008, pp 26-27, 66. "Going to the Bank", Public Utilities Fortnightly , deal log for M. Burr, June 2005. "Ratepayers Back At Risk", Public Utilities Fortnig...

AI summary The text is a collection of articles and deal logs from various publications focusing on finance and energy topics, including merchant power deals, project financings, and utility asset sales over multiple years. It highlights trends and market dynamics in the energy sector, particularly in the context of generation sales and project valuations.

Why a Condensing Turbine with Extraction Makes Sense In order for sawmills to participate and for projects to be able to attract debt the operation of the power plant has to be decoupled from the operation of the sawmill. A condensing turb...

AI summary A condensing turbine with extraction allows sawmills to decouple power plant operations from sawmill activities, providing flexibility during shutdowns or low production periods. This design supports revenue generation during difficult market conditions, reduces financial strain, and enables participation from community organizations with lower heat load demands.

Debt Service Reserve 3.5. Debt Reserve amount to be calculated from the complete Principal + Interest payment, instead of solely for principal repayments. Current excel file takes first year principal payment only [revised in model].

AI summary The Debt Service Reserve calculation should be based on the full Principal + Interest payment, rather than just principal repayments. The current Excel model only considers the first year's principal payment, but this has been revised in the updated model.

7. Conclusions 7.1. The comparison with other jurisdictions (response to information requests from Synapse) should be considered with the LCOE analysis, this is, having into consideration tariff escalation for the revenue side and real pri...

AI summary The conclusion emphasizes the importance of comparing with other jurisdictions in conjunction with the LCOE analysis, considering tariff escalation and real prices for a comprehensive revenue-side evaluation.

b) remove the system-wide subscription limit of 20 MW as well as the Class 1 limit of 5 MW and the Class 2 limit of 15 MW. - [48] In addition, the Board accepts NSPI's requested day implementation delay in order to provide sufficient time...

AI summary The Board accepts a delay in implementing a decision to remove subscription limits on net metering and requires NSPI to submit annual reports and revised regulations by specific deadlines.

OPENING STATEMENT OF THE SYNAPSE CONSULTING TEAM Good morning Mr. Chairman, members ofthe Panel, other parties. We appear before you today to propose Community Feed-In Tariffs (COMFIT's). Our prefiled evidence presents our specific proposa...

AI summary Synapse Consulting proposes Community Feed-In Tariffs (COMFITs) with specific rates for wind, biomass CHP, hydro, and in-stream tidal projects. They developed the rates using a three-step utility ratemaking process, considering capital costs, operating expenses, and required revenues, and aligned their approach with relevant legislation and the Renewable Electricity Plan.

eflect our assessment that hydro projects will be perceived as least risky, that wind and biomass projects will be perceived as more risky and that in-stream tidal projects will be seen as most risky. The final step in the development of o...

AI summary The text discusses the risk perception of different hydro projects and the selection of capacity factors for COMFIT projects. It highlights the importance of choosing appropriate capacity factors to ensure the economic viability of wind and other COMFIT projects across the province.

these considerations into account, we selected factors for wind and the other COMFIT's that we believe convert required revenues to rates in a way that will reasonably facilitate project development. The second issue raised was the treatme...

AI summary The document discusses the treatment of year-to-year changes in COMFIT rates, particularly for CHP, and the rationale behind setting fuel payments based on inflation and diesel costs. It also mentions stakeholder input and confidence in the proposed rates.

NON-CONFIDENTIAL Request IR-33: 2 3 Please provide all NSPI and NPPH estimates of replacement cost and market value for the 4 existing facilities and any portion thereof conducted in the past 10 years, and identify the 5 vintage, methods,...

AI summary NSPI did not conduct a market value or replacement cost analysis for existing facilities. NPPH notes that a true fair market value analysis is difficult due to the unique nature of the facilities, citing a recent 50 MW project by We Energies at the Domtar Rothschild mill with a total cost of $250 million.

Biomass CHP (condensing turbine; new boiler in steam-only scenario in year 10) Assumptions Notes: , Annual O&M (expensed) Escalates at inflation. Site Maintenance 010,574 Escalates at inflation. General & Administrative 0 Escalates at infl...

AI summary The text outlines financial and operational assumptions for a biomass CHP project, including O&M costs, tax rates, depreciation classifications, and return metrics such as IRR and debt service coverage ratios. It details revenue assumptions, tax structures, and maintenance costs over a 20-year period.

8.2 Findings [130] With respect to the capacity factor, Synapse proposed a rate of 23%. The Board considers Seaforth's comments to be reasonable in terms of supporting the 23% recommendation. Based on its review of the evidence, the Board...

AI summary The Board accepts Seaforth's support for a 23% capacity factor for small wind projects. It adjusts Synapse's interconnection cost from $13,300 to $21,550 based on evidence from Scotian WindFields. The Board also increases Routine O&M costs from $1,642 to $4,500 annually, citing evidence from small wind operators. These changes are to be addressed in the Compliance Filing.

Large Wind 8-2-11 no tax Page 1 Nova Scotia COMFIT Model Large Wind (Over 50 kW) Tota l Re ven ue 558 ,451 558 ,451 558 ,451 558 ,451 558 ,451 558 ,451 558 ,451 558 ,451 558 ,451 558 ,451 558 ,451 558 ,451 558 ,451 558 ,451 558 ,451 556 ,3...

AI summary The document presents a financial table related to the Nova Scotia COMFIT Model and Large Wind (Over 50 kW) projects. It shows total revenue, expenses, fuel costs, O&M site maintenance, finance G&A, and insurance costs over time. The table highlights increasing expenses and consistent revenue for the projects.

Page 2 Large Wind 8-2-11 no tax Nov a S ia C OM FIT Mo del cot Ca sh Flo w W ork she Bot et: tom Syn e C aps lian om p ce Lar Win ge d n o ta x Revenue Assumptions

AI summary The document appears to be a table related to financial modeling, specifically focusing on revenue assumptions and cash flow for a project named 'Large Wind 8-2-11 no tax'. The context suggests it is part of a regulatory proceeding in Nova Scotia.

Nova Scotia COMFIT Model Depreciation Worksheet: Bottom Synapse Compliance Large Wind, Taxable Owner Ope ratin Yea g r 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Fixe d P rice Co t mpo nen 100 % 489 .00 489 .00 489 .00 489 .00 48...

AI summary The document presents a depreciation worksheet for a large wind project under the Nova Scotia COMFIT Model, showing a fixed price component of $489.00 per year over a 20-year period. The worksheet is related to Bottom Synapse Compliance and is taxable to the owner.

Nova Scotia COMFIT Model Depreciation Worksheet: Top Synapse Compliance Small Wind Taxable Owner Ope ratin Yea g r 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Tota l Ca sh (470 ,097 450 ,667 ) ( ,704 446 ,738 ) ( ,849 442 ,718 ) (...

AI summary The document presents a depreciation worksheet for a small wind taxable owner in Nova Scotia using the COMFIT Model. It outlines total cash flows over a 20-year period, showing initial negative cash flows followed by positive returns starting in year 19.

Summary of Engagement B&Co is pleased to provide consulting services to Client concerning biomass-fired power project costs, financing, risks, and revenue requirements (the "Project"). B&Co will complete various tasks, to be requested by a...

AI summary B&Co is providing consulting services to a client regarding a biomass-fired power project in Nova Scotia, including evaluating markets, reviewing materials, and preparing testimony on costs, financing, risks, and revenue requirements.

Table 1. The Impacts of the Changes Analyzed in U-2, U-6 and U-6(a) Change Analyzed Fixed Component ($/MWh) Variable Component ($/MWh) Full 2012 Rate ($/MWh) Working Capital Net of steam-only scenario Fuel Required per Year (mmBtu) 268 056...

AI summary Table 1 outlines the financial and operational impacts of various changes analyzed in U-2, U-6, and U-6(a). It includes fixed and variable components, fuel requirements, initial fuel prices, operating and maintenance costs, and other financial metrics related to a project. The table also highlights inflation-related escalations and assessed value details.

Scenarios in $2012 fo r S On Va lue tea ly m- Gr e f CH s V alu P os or e f CH Ne t V alu P or Debt Service Reserve (months of P&I) 0 Assessed Value ($) 100,000 Capital Structure (Sources of Funds) Annual Decline in Assessed Value 1.00% Am...

AI summary The text presents financial scenarios from 2012, including details on debt service reserve, capital structure, assessed value, property tax rates, revenue assumptions, and return metrics such as the 20-year equity IRR and debt service coverage ratios. It outlines the financial structure and assumptions used in the analysis.

Scenarios in $2012 fo r S On Va lue tea ly m- Gr e f CH s V alu P os or e f CH Ne t V alu P or Net Generator Capacity (MW) 2.05 1.55 MW at full extraction, 2.05 MW at full condensing Energy Production: Net Capacity Factor 60% of time at fu...

AI summary The text presents a 2012 scenario analyzing a power generation project, including net generator capacity, energy production, annual operating expenses, fuel costs, and financial metrics such as return on equity and debt service coverage ratios.

Include the full amount of parasitic power in the calculations as well as a separate calculation using the differential of approximately 5 percent As part of U-6, we added in the cost of electricity associated with parasitic loads, using A...

AI summary The text discusses the inclusion of parasitic power in cost calculations, using both total and incremental estimates. It explains that parasitic loads add $55,600 annually to operating costs, with a fixed rate component of $99 per MWh and a full 2012 rate of $163 per MWh after adding fuel costs.

Beginning Balance 0 7,702,001 7,296,632 6,891,264 6,485,895 6,080,527 5,675,158 5,269,790 4,864,421 4,459,053 4,053,685 3,864,037 3,350,808 2,891,509 2,459,176 2,040,325 1,628,215 1,219,476 812,422 406,211 Original Book Value 8,107,369 000...

AI summary The text provides a financial overview of the Nova Scotia COMFIT Model for a biomass CHP (condensing turbine) project, including details on annual operating expenses, fuel costs, project hard costs, assessed value, and revenue assumptions.

Biomass CHP (condensing turbine; new boiler in steam-only scenario in year 10) Assumptions Notes: , Annual O&M (expensed) Escalates at inflation. Site Maintenance 010,574 Escalates at inflation. General & Administrative 0 Escalates at infl...

AI summary The document outlines financial and operational assumptions for a biomass CHP project, including O&M costs, project hard costs, tax rates, depreciation classifications, and return metrics such as 20-year equity IRR and debt service coverage ratios. It also includes assumptions about inflation, property taxes, and maintenance schedules.

Page 5 of 6 NS_COMFIT_Biomass_45% Cost Allocation.xls Component Scenario Scenario Scenario Project development $0 $275,000 $275,000 Boiler installed cost ($) $20,298,000 $36,818,000 $16,520,000 Turbine installed cost ($) $0 $0 $0 Emission...

AI summary The document provides a detailed breakdown of costs associated with a biomass project, including components such as boiler and turbine installed costs, maintenance reserves, debt service reserves, and annual fuel use. It outlines various scenarios with differing financial figures and capacity factors, highlighting the economic considerations of the project.

3 sections that calculate: - Revenue (from energy sales) - Expenses (O&M, insurance, taxes) - Debt repayment

AI summary The text outlines three key sections for calculation: revenue from energy sales, expenses including O&M, insurance, and taxes, and debt repayment. These sections are likely used for financial reporting or regulatory analysis.

Wind Pricing Model Assumptions: Notes: Income Tax Basis Adjustment Factor 50.0%

AI summary The document presents a Wind Pricing Model with an Income Tax Basis Adjustment Factor set at 50.0%. This factor is likely used to adjust financial calculations related to wind energy projects, potentially affecting cost recovery or revenue requirements.

Q. PLEASE DESCRIBE THE PROJECT TEAM'S OVERALL APPROACH TO THE BALANCING OF COSTS AND POLICY OBJECTIVES? A. The regulations governing the development of the COMFIT rates clearly call for them to be cost-based. However, the development of su...

AI summary The project team's approach to balancing costs and policy objectives involves using a cost-based method for COMFIT rates, ensuring they are low enough to encourage development while maintaining financial viability. A three-step ratemaking process was applied, considering capital costs, required revenues, and electric output.

f the program to promote renewable energy as in either this scenario or the Synapse scenario, one user benefits unfairly from the base cost of the plant built by the other user. - 52. Mr. Travis explained in evidence that he sought an elec...

AI summary The text discusses the allocation of capital and fuel costs between electricity and steam in CHP facilities, emphasizing the need for fair cost distribution and the importance of using real and accurate costs for implementation. It also highlights the ANSS's position that CHP facilities should be incentivized to operate efficiently, with potential financial losses if they do not meet expected steam usage levels.

ANSSSTEAM-ONLYARGUMENT In its submission at paragraphs 47 - 52, ANSS disputes Synapse's inclusion in the biomass rate of only the additional costs of a cogeneration system, above the cost of a steam-only system to meet the sawmill's heat r...

AI summary ANSS disputes Synapse's biomass rate model, arguing that it incorrectly allocates steam generation costs. ANSS claims that Synapse only allocates 55% of steam costs to the steam host, not 100% as misrepresented. ANSS also argues that the proposed biomass COMFIT rate is based on an inconsistent hypothetical scenario that violates COMFIT regulations.

[86] This was explored by Keith Tawse, who in his reply argument stated: ...However, in cross-examination, (transcript of Hearings April 7th, 2011, pages 946-947), the Consumer Advocate was unable to provide any evidence as to the existenc...

AI summary Keith Tawse argues that without mechanisms to provide capital at below-market rates, Synapse's proposed rates should be accepted. Toby Couture suggests a return on equity of 13% is appropriate to attract investment in community-based and municipal projects.

Large Wind 8-2-11 no tax Page 1 Nova Scotia COMFIT Model Large Wind (Over 50 kW) EBIT DA 478 ,304 476 ,825 475 ,317 473 ,780 472 ,213 470 ,616 468 ,987 467 ,327 465 ,635 463 ,909 462 ,150 460 ,357 458 ,530 456 ,666 454 ,767 450 ,711 448 ,7...

AI summary The document presents a financial table related to the Nova Scotia COMFIT Model for Large Wind (Over 50 kW), showing EBITDA and various reserve-related financial figures over time, including the release of debt service reserves and other maintenance reserves.

Page 2 Large Wind 8-2-11 no tax Nov a S ia C OM FIT Mo del cot Ca sh Flo w W ork she Bot et: tom Syn e C aps lian om p ce Lar Win ge d n o ta x Revenue Assumptions

AI summary The text appears to be a table from a regulatory proceeding document related to Nova Scotia Power's Large Wind project, with headings indicating financial modeling and cash flow analysis. The table includes sections such as 'Revenue Assumptions' and references to 'no tax'.

Page 2 Small Wind 8-2-11 no tax Sc CO No otia MF IT M ode l va Ca sh Flo w W ork she et: Bo tto m Sy nap Co se mp Sm lian ce all Wi nd Tax no Assessed Value Minimum % 0.00% Property Tax Rate 0.00% Based on Wind Turbine Facilities Municipal...

AI summary The document presents a cash flow worksheet related to small wind energy projects in Nova Scotia, with a focus on property tax rates and revenue assumptions, including a levelized energy price of $508.20 per MWh.

Nova Scotia COMFIT Model Depreciation Worksheet: Top Synapse Compliance Small Wind Taxable Owner Ope ratin Yea g r 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Rev es F Ene Prod uctio enu rom rgy n 1,34 8,29 3 1,34 8,29 3 1,34 8,29...

AI summary The document presents a COMFIT Model Depreciation Worksheet for a Top Synapse Compliance Small Wind Taxable Owner in Nova Scotia. It outlines revenue from energy production over a 20-year period, with consistent figures of $1,348,293 annually.

Scenarios in $2012 $ Sc ios in 2 0 1 2 en ar Inte Du ing Co ion t tru t res r ns c $ 8 6, 6 3 2 $ 3 3 0, 4 2 5 $ 2 4 3, 7 9 3 Bo i ler f f ic ien ( ) % e cy 7 0 % 7 0 % $ /y Ro ine Ma inte ( ) t na nce r u $ 1 3 0, 5 5 7 $ 1 7 3, 2 6 4 $ 4...

AI summary The table presents financial and operational data from 2012, including figures for boiler efficiency, maintenance costs, insurance, property taxes, and fuel usage in British Thermal Units (Btu). These details provide insight into operational performance and expenditures during that year.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS MS. RUBIN: A revenue allocation. NSUARB-BRD-E-R.10 Page 195 1 MS. SHAW: M'hm. 2 MS. RUBIN: Can you elaborate on that? 3 MS. SHAW: So there is a revenue 4 stream that is driven by the electric...

AI summary The discussion revolves around revenue allocation between electricity generation and heat/steam sales, as well as the team effort involved in determining the debt/equity split and cost of equity, particularly for biomass CHP. Experts discuss their qualifications and experience in utility finance and risk assessment.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS million BTU, if I understand it Page 792 NSUARB-BRD-E-R.10 10 profit of around $2 million 11 MR. COADY: Yes. 12 MR. DOEHLER: which would give you 13 a 13 percent return on equity per your sch...

AI summary The discussion revolves around financial figures, return on equity, and the impact of revenue changes on profitability. It also references the need for a COMFIT assessment and reassessment of assumptions related to technology and size to determine a new equilibrium.

looked at other issues. I was trying to make a statement 1 they would be disappointed and that and I did not 2 interpret your exhibit as saying that this would be a good 3 way to finance it. 4 But I think that there were some 5 arithmetic...

AI summary The discussion highlights a disagreement over the financial assumptions in an analysis, specifically regarding the long-term return to CEDIF investors. The speaker points out arithmetic errors and differing expectations about equity returns over time, which could impact the CEDIF's profitability.

- DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS So there's significantly higher risk, 1 and that risk means that the investors that are investing DICTUM DIGITAL INC. CERTIFIED COURT REPORTERS Page 1158 NSUARB-BRD-E-R.10 1 Department of Ene...

AI summary The text discusses a regulatory proceeding involving risk assessment and the impact of feed-in tariffs on utility rates, with a focus on the Nova Scotia Utility and Review Board. A retired utility executive is questioning an individual about the influence of these tariffs on revenue requirements.