Topic:"Revenue Requirement" in M08059

Planning Reserve Requirements – Capacity Resource Balance .............................................. 23 Plant Optimization ‐ Model Retirements and Builds ............................................................... 23 3.2. Wholesale...

AI summary The document outlines sections related to capacity resource balance, wholesale revenue requirements, and energy balances. Key topics include planning reserve requirements, plant optimization, cost components (e.g., Maritime Link, DSM, transmission), and NPV/revenue results. It emphasizes capacity factors, energy by fuel type, and cost exclusions in a regulatory context.

ization and Optimization M08059 1 Final Report Major Findings The results of our analyses indicate the following specific major findings:  The net present value of wholesale1 system revenue requirements (NPVRR, 2018‐2042 period) across th...

AI summary The analysis shows that scenarios with moderate demand-side management (DSM) and wind capacity credits yield the lowest net present value of revenue requirements (NPVRR), outperforming reference scenarios. Wind and energy efficiency are highlighted as cost-effective alternatives to fossil fuels and imports, with medium DSM levels achieving 2% annual energy efficiency gains. Scenarios with 20% wind capacity credits and additional wind generation show the greatest cost reductions.

ergy Economics (Synapse) with undertaking a modeling exercise to shed light on the overall economic implications of continued reliance on the existing thermal fleet to meet electric load requirements. Based on the Terms of Reference and th...

AI summary Synapse Energy Economics conducted a modeling exercise using Plexos to analyze the economic impacts of relying on existing thermal generation. The study involved data from NSPI, scenario modeling, and revenue requirement analysis to evaluate system scenarios.

evaluated. Synapse Energy Economics, Inc. NSPI Thermal Generation Utilization and Optimization M08059 9 Final Report capacity and generation, or overall operating costs of the system—as well as more detailed, unit or plant‐specific results...

AI summary Synapse Energy Economics evaluates NSPI's thermal generation utilization and optimization, using Plexos to model system costs, including fuel, O&M, and DSM expenses, and calculating annual revenue requirements for different scenarios.

https://www.nrel.gov/docs/fy17osti/68371.pdf and “Evaluating the Technical and Economic Performance of PV Plus Storage Power Plants,” available at https://www.nrel.gov/docs/fy17osti/68737.pdf. Synapse Energy Economics, Inc. NSPI Thermal Ge...

AI summary The document discusses the modeling of sustaining capital costs and wind capacity credits in the context of NSPI's thermal generation and renewable resources. It highlights the treatment of sustaining capital expenditures and the use of different wind capacity credit values in various scenarios.

NSPI Thermal Generation Utilization and Optimization M08059 29 Final Report 3.2. Wholesale Revenue Requirements Overview ‐ Revenue Requirement Proxy The Plexos environment as structured does not directly compute a revenue requirements metr...

AI summary The document discusses the development of a proxy for revenue requirements in the Plexos environment, excluding certain costs related to transmission, distribution, and downstream factors. This proxy is used to estimate revenue requirements associated with system production, including new builds and retirements.

ollecting revenue for existing transmission and distribution and excludes other downstream costs not associated with the wholesale production and delivery of energy and firm peak loading requirements.

AI summary The text discusses the collection of revenue for existing transmission and distribution, noting that it excludes other downstream costs not associated with wholesale energy production and delivery or firm peak loading requirements.

Table 8. Revenue Requirement Proxy Computation Component Description/Definition Comment Computed/Accounted for within Plexos Fuel Coal, Oil, Gas burn costs Plexos Dispatch Cost. Variable O&M Based on per MWh for Most of VOM costs reflect t...

AI summary The table outlines the components of the revenue requirement proxy computation, distinguishing between those calculated within Plexos and those accounted for outside of it. It details costs such as fuel, variable and fixed O&M, net interchange purchases, and incremental DSM and transmission costs.

Build Costs Annualized fixed costs Per assumptions memo (see Table 5 above). Sustaining Capital Costs Annualized fixed costs Per assumptions memo (see Table 6 above). Plexos Production Cost ‐ Fuel, VO&M, FO&M, Startup, and Net Interchange...

AI summary The text discusses the composition of revenue requirements, highlighting that a majority of costs come from fixed and variable operating costs, fuel costs, and Maritime Link Surplus and New Brunswick net imports purchase costs as modeled in Plexos. Maritime Link costs are estimated to account for 14-16% of the total NPVRR and are based on the Maritime Link Interim Cost Assessment case.

nits (in a 253 MW block), and battery energy storage systems (in 20 MW blocks). Fuel, fixed O&M, and variable O&M for new build units are incorporated in the Plexos unit commitment and dispatch costs. Cost Exclusions Excluded from the comp...

AI summary The document discusses the inclusion of new generation and battery energy storage systems in the Plexos unit commitment and dispatch costs. It also highlights the exclusion of additional transmission system support investment from the revenue requirement proxy and outlines the costs associated with reactive power support devices, noting the need for a more robust transmission system as NSPI increases its reliance on renewable energy.

adroom” that ranges between $90 million and $570 million (NPVRR) exists between the reference scenario costs, and the costs indicated for the higher wind scenarios 13, 14, 16, and 17. See footnote 4. 3.3. NPV and Revenue Requirements Resul...

AI summary The text discusses the range of net present value of revenue requirements (NPVRR) between $90 million and $570 million for different wind scenarios. It also describes figures and tables showing NPVRR across various scenarios and sensitivities, including battery costs and gas prices, as well as revenue requirement streams over time.

Final Report Figure 6b. NPV of Revenue Requirements by Scenario and by Component, 2018‐2042, Gas Price Sensitivities and TC3/Tr5 Forced Retirement Sensitivities NPV of Revenue Requirement ($2018 billions ) by Component by Scenario 18.00 Ga...

AI summary The figure presents the NPV of revenue requirements by scenario and component, considering gas price sensitivities and forced retirement sensitivities for Tufts Cove 3 and Trenton 5. It includes various components such as fuel, VOM, RE cost, fixed O&M, and others.

nc. NSPI Thermal Generation Utilization and Optimization M08059 35 Final Report Table 9a. Data for Figure 6 ‐ NPV of Revenue Requirements by Component ($2018 billions) – Main Scenarios and Low Battery Cost Sensitivities Sc17 NBTx Low Batte...

AI summary The table presents the NPV of revenue requirements by component across various scenarios and low battery cost sensitivities in the NSPI Thermal Generation Utilization and Optimization proceeding. It includes data for different scenarios such as Sc17, Sc8, Sc16, and others, highlighting variations in fuel costs under different conditions.

p+NB Imp 1.46 1.36 1.52 1.35 1.63 1.35 1.05 0.83 1.13 0.87 0.99 0.94 1.47 1.32 1.05 0.96 Start/Shutdw n 0.04 0.03 0.04 0.03 0.04 0.03 0.04 0.04 0.04 0.04 0.05 0.04 0.05 0.03 0.05 0.03 Total 14.59 13.90 14.82 14.18 14.32 13.83 14.25 13.79 1...

AI summary The text presents data from Synapse Energy Economics, Inc. regarding revenue requirements calculations for NSPI Thermal Generation Utilization and Optimization, including NPV values and gas price sensitivities. It includes tables with various metrics such as Imp, Start/Shutdw, Total, and Change from Sc 1 and Sc 2.

0.9% 0.9% RE Cost 21.0% 22.0% 20.7% 21.6% 21.4% 22.2% 21.1% 21.6% 21.4% 21.6% 20.6% 20.7% 21.0% 22.1% 20.9% 21.0% Fixed O&M 8.4% 8.5% 8.1% 8.4% 8.4% 8.5% 8.5% 8.5% 8.3% 8.4% 7.5% 7.6% 8.3% 8.5% 8.3% 7.6% SustCap 8.6% 8.6% 9.6% 10.4% 8.6% 8...

AI summary The text presents a table showing various cost percentages related to revenue requirements, including RE cost, fixed O&M, SustCap, New Build, Inc DSM, NB Transm, NS ML Costs, ML Surp+NB Imp, and Start/Shutdw n. The data spans multiple years and highlights fluctuations in different cost categories.

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Source: Synapse Revenue Requirement Calculations Synapse Energy Economics, Inc. NSPI Thermal Generation Utilization and Optimization M08059 38 Final Report Table 10...

AI summary The table presents the share of NPV RR by component and by scenario, focusing on gas price sensitivities and forced retirements of Tufts Cove 3 and Trenton 5. The data shows the percentage distribution of fuel costs across various scenarios, indicating the impact of different gas prices and forced retirements on the revenue requirement.

3% 16.0% ML Surp+NB Imp 10.0% 9.8% 8.2% 7.3% 8.0% 6.0% 10.9% 11.0% 7.5% 10.4% 10.0% 8.7% Start/Shutdwn 0.3% 0.2% 0.4% 0.3% 0.3% 0.3% 0.4% 0.4% 0.4% 0.3% 0.4% 0.3% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Source: Sy...

AI summary The text presents a table and figure showing revenue requirements by scenario from 2018 to 2042, focusing on nominal wholesale revenue requirements in millions of dollars. It includes percentages for ML Surp+NB Imp and Start/Shutdwn, along with a reference to Synapse Energy Economics, Inc. and a document titled 'NSPI Thermal Generation Utilization and Optimization M08059.'

dequacy contribution from wind. This exercise will test whether or not use of a higher value results in material differences for consideration of thermal fleet retention. o The exercise is not intended to capture all rate effects, such as...

AI summary The analysis evaluates wind capacity contributions, thermal fleet retention, and natural gas price impacts on revenue requirements over 2018-2042. NSPI emphasizes scenario comparisons using NPV metrics without selecting a preferred plan, focusing on cost variations under different resource formulations.

~ Blackburn Law July 17, 2017 VIA EMAIL Ms. Doreen Friis Regulatory Affairs Officer/Clerk Nova Scotia Utility and Review Board 1601 Lower Water Street, 3rd Floor Halifax NS B3J 3S3 Dear Ms. Friis: Re: M08059 - Generation Utilization and Op...

AI summary The Small Business Advocate (SBA) critiques Synapse's Terms of Reference for the Thermal Fleet Study, emphasizing concerns about limited scope, undefined cost minimization, and insufficient metrics. The SBA proposes additional metrics, including revenue requirement minimization, annual electricity pricing, and environmental/emissions factors, to better align with stakeholder needs and short-term business timelines.

te that our analysis was not an IRP, it is impossible to untangle the assessment of thermal fleet economics from resource planning assumptions, the Small Business Advocate’s comments notwithstanding.4 The SBA notes concern over our analysi...

AI summary The analysis, not an IRP, integrates thermal fleet economics with resource planning. The SBA criticizes reliance on long-term metrics and common costs, while the response emphasizes long-term capital recovery and revenue requirements across scenarios, noting that excluding common costs would exaggerate cost savings for low-cost scenarios.

Addendum to Final Report - M08059 Generation Utilization and Optimization - DSM Avoided Costs Memorandum TO: M08059 GENERATION UTILIZATION AND OPTIMIZATION STAKEHOLDERS FROM: BOB FAGAN – SYNAPSE ENERGY ECONOMICS DATE: OCTOBER 19, 2018 RE:...

AI summary This memo calculates avoided energy and capacity costs from DSM resources in Scenario 2 of the Generation Utilization and Optimization Study. It uses a differential revenue requirements approach, analyzing fixed (capacity-related) and variable (energy-related) costs between Scenario 1 (reference) and Scenario 2 (medium DSM) across 2018–2042. Results show per-MWh and per-kW avoided costs for each study year.

rastructure under the medium DSM scenario. We also included a third, “Total – energy basis” computation, that provides a single stream of avoided (energy + capacity) costs, on a per MWh basis. The results reflect the build and dispatch pat...

AI summary The text analyzes avoided energy and capacity costs under the Medium DSM scenario, comparing it to the reference scenario. It highlights the impact of the Maritime Link and a new combined cycle resource on cost trends, noting that DSM displaces more expensive energy sources rather than coal. The study discusses these dynamics in the context of revenue requirements.