Topic/Matter Intersection

Topic:"Revenue Requirement" in M08929

Matter: P-884 - Nova Scotia Power Inc. (NSPI) - Integrated Resource Planning (IRP) and M08059--Generation Utilization and Optimization
70 passages 8 documents

Revenue Requirement across all matters →

N-4Draft Terms of Reference 3 passages
Section 20
risk weighting, risk assessment)? input on how NS Power’s IRP might be informed by the HalifACT initiative. AREA Objectives The Objectives suggest a preference for Objective 1 on page 3 refers to a “affordable” rates, but the Developing “r...

AI summary The document discusses a tension between 'affordable' rates and a 'least-cost' electricity strategy in Nova Scotia's Integrated Resource Plan (IRP), influenced by the HalifACT initiative. It highlights the need to prioritize minimizing cumulative present value of annual revenue requirements over the planning horizon, with the Energy and Analysis Committee (EAC) incorporating this into the Analysis Plan outlined in the Terms of Reference (TOR).

Section 27
NS Power will address this comment in Assumptions Atlantic Clean Energy Initiative and the its Assumptions and Analysis Plan. Clean Power Roadmap for Atlantic Canada will be considered in the IRP. E1 Constraints / The TOR should explain ho...

AI summary NS Power will address comments on the Atlantic Clean Energy Initiative and Clean Power Roadmap in its Assumptions and Analysis Plan for the IRP. The TOR outlines how carbon costs will be modeled, including consideration of revenue from carbon credit sales in revenue requirement calculations.

Section 59
be accounted for in the revenue requirement calculation for each scenario? 16. The ToR should indicate whether NS Power plans to do any stochastics and if so, on which variables. 17. The ToR should indicate whether Short Term runs will be...

AI summary The text discusses the need for the Integrated Resource Planning (IRP) Terms of Reference (ToR) to clearly define secondary metrics for evaluating resource plans, such as flexibility and robustness, to avoid inconsistent interpretations by stakeholders. The primary metric is the cumulative present value of annual revenue requirements, which is quantifiable and easily understood.

N-7NSPI's Response to Comments from Interested Parties 2 passages
Section 2
, on behalf of its clients, stated that it had reviewed the proposed Terms of Reference and is generally satisfied with the wording and approach and 1 Exhibit N-4. January 17, 2020 D. Friis provided a few additional comments for considerat...

AI summary NS Power and Natural Forces discuss the Terms of Reference (TOR) for the Integrated Resource Plan (IRP). Natural Forces criticizes NS Power's focus on minimizing revenue requirements in IRP modeling, arguing that greenhouse gas emissions reduction should be a primary criterion. NS Power reaffirms using revenue requirements as the primary metric but acknowledges other considerations.

Section 4
ting units). These portfolios will be evaluated for operational feasibility using appropriate electricity system modeling tools, and iterative analysis will be conducted as required. Natural Forces’ comment recognizes and reflects that giv...

AI summary The document discusses the evaluation of portfolios using electricity system modeling tools within the IRP process. Natural Forces emphasizes the need for broader criteria in dynamic energy environments, while NS Power prioritizes minimizing long-term cumulative revenue requirement. Envigour suggests incorporating uncertainty around technology price declines in resource plans.

N-8NSPI Letter update on IRP process 1 passage
Party Question/Comment & Response
criteria against which potential plans and resource portfolios will evaluated under each scenario, as shown in Table 6 below: Metric Description Minimization of the cumulative present value of 25 year NPV Revenue Requirement the annual rev...

AI summary The document outlines evaluation criteria for resource plans and portfolios under different scenarios, including metrics such as revenue requirement NPV, reliability requirements, grid services provision, plan robustness, GHG emission reductions, and flexibility of future decisions.

N-92020 Integrated Resource Plan 5 passages
1.8 Overview of Key Findings p. p. 23
e cumulative present value of the annual revenue requirement of the 25-year planning horizon (adjusted for end effects) is 2.0C (Low Electrification / Base DSM / Net-Zero 2050 / Regional Integration). The model considered coal retirements...

AI summary The text evaluates the cumulative present value of revenue requirements under different coal retirement timelines (2030 vs. 2040) within Nova Scotia Power's 25-year Integrated Resource Plan (IRP). Earlier coal retirements (2030) increase near-term costs due to resource replacement, while delaying to 2040 reduces NPV costs. The analysis recommends monitoring opportunities for economically viable coal transitions.

5.3.4 Assessing Relative Rate Impacts p. p. 73
ad changes associated with electrification, distributed resource assumptions, and energy efficiency measures. Nova Scotia Power took the following approach: Nova Scotia Power took following approach: - 1. Begin with the forward looking sup...

AI summary Nova Scotia Power outlines a method for assessing relative rate impacts by starting with revenue requirements from the Integrated Resource Plan and adding fixed costs from the 2014 General Rate Application Test Year. A system rate is calculated by dividing total revenue requirements by total sales, and annual rate changes are determined and averaged over the analysis period.

6.4 Resource Plan Cost p. pp. 92-93
6.4 Resource Plan Cost The NPV of partial revenue requirement for the IRP key scenarios is summarized in Figure 51 below. Results for scenarios are grouped based on their load level; the revenue requirements should only be compared across...

AI summary The document discusses the NPV of revenue requirements for different Integrated Resource Plan (IRP) scenarios, noting that scenarios with regional integration are lower cost than others. It also highlights the higher costs associated with retiring coal plants earlier, and notes that the cost of distributed energy resources is not included in the NPV calculations for certain scenarios.

6.8.1 DSM Levels p. pp. 94-99
6.8.1 DSM Levels Nova Scotia Power recognizes that DSM is an important component of the overall resource plan development and, accordingly, completed a robust analysis of the four DSM levels developed by EfficiencyOne (Low, Base, Mid, and...

AI summary Nova Scotia Power evaluated four Demand Side Management (DSM) levels (Low, Base, Mid, Max) developed by EfficiencyOne, analyzing their impact on costs, coal retirement, gas capacity, and emissions. The Base DSM profile was found to be more economically viable under various scenarios, particularly in terms of NPV and relative rate impact.

7.1 Key Findings p. pp. 104-108
in all cases, particularly for a long-lived hydro asset like the Mersey system; accordingly, additional economic analysis will be provided in any capital applications for Mersey system refurbishment. 2e DSM energy efficiency programs and c...

AI summary The document highlights the economic benefits of DSM energy efficiency programs, particularly the 'Base' profile, in reducing revenue requirements and GHG emissions. It emphasizes the need for future DSM planning to incorporate various sensitivities and metrics, and notes the importance of firm capacity resources for Nova Scotia Power's system in the near and long term.

N-9-(i)Appendices A-N 51 passages
Section 181
• Develop an opening bundled service rate for comparison purposes; and • Recognize the additional fixed cost contribution provided by additional sales from higher levels of electrification. • The Company has taken the following approach: •...

AI summary The Company is developing an opening bundled service rate by incorporating forward-looking supply-side and demand-side revenue requirements from the Integrated Resource Plan (IRP) and adding fixed costs from the 2014 Test Year. Additional fixed cost recovery from increased electrification sales is calculated using an FCR/MWh factor, and annual rate changes are determined based on the net revenue requirement and total sales.

Section 183
Nova Scotia Power IRP Final Report Appendix D Page 2 of 3 IRP Relative Rate Scenarios Planning Period Year Electrification Scenario 1 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040...

AI summary This section of the Nova Scotia Power Integrated Resource Plan (IRP) Final Report presents revenue requirement scenarios for the planning period from 2020 to 2045, showing projected figures for the IRP Revenue Requirement, 2014 Non-fuel revenue requirement, and Total Revenue Requirement Pre-incremental FCR recovery in millions of dollars.

Section 188
941 946 983 996 978 1,002 1,018 1,054 1,080 1,093 1,103 1,140 1,174 1,255 1,317 1,303 1,345 1,354 1,394 2014 Non-fuel revenue requirement ($M) 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800...

AI summary The text presents numerical data related to non-fuel revenue requirements and fixed cost recovery (FCR) recovery over time, including cumulative incremental sales in gigawatt-hours (GWh) and incremental FCR costs in dollars per megawatt-hour (MWh) and dollars (M). The data spans multiple years, indicating financial planning and cost recovery mechanisms.

Section 192
1,100 1,132 1,153 1,141 1,142 1,178 1,211 1,253 1,273 1,325 1,376 1,405 1,510 1,572 1,572 1,612 1,641 1,679 2014 Non-fuel revenue requirement ($M) 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800...

AI summary The document presents a series of numerical data points related to non-fuel revenue requirements and incremental FCR over multiple years, with values increasing over time. The data includes cumulative incremental sales in gigawatt-hours and incremental FCR in dollars per megawatt-hour and dollars.

Section 196
907 934 946 914 902 936 963 972 968 1,015 1,034 1,073 1,148 1,188 1,191 1,219 1,222 1,230 2014 Non-fuel revenue requirement ($M) 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 Total...

AI summary The text presents financial data related to non-fuel revenue requirements and incremental FCR recovery over multiple years, with figures indicating trends and changes in revenue and cumulative incremental sales.

Section 200
1.5% Average Rate Change 2021-2030 Planning Period Year Electrification Scenario 5 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 IRP Revenue Requirement (P...

AI summary The text presents financial data related to revenue requirements and rate changes over a planning period from 2020 to 2045, including the Integrated Resource Plan (IRP) revenue requirement, non-fuel revenue requirements, and FCR recovery figures. The data outlines projections for Nova Scotia Power's financial obligations under different scenarios.

Section 201
1,759 1,872 1,927 1,914 1,910 1,939 1,963 1,976 1,999 2,010 2,037 2,068 2,075 2,117 2,121 2,160 2,197 2,210 Incremental FCR-Base Cumulative Incremental Sales (GWh) - 10 28 72 133 203 262 320 375 425 472 517 562 608 653 700 750 799 847 893...

AI summary The document provides numerical data on incremental FCR-Base, cumulative incremental sales in GWh, incremental FCR in $/MWh and $M, and net revenue requirement in $M over a series of years. The data appears to be related to financial and operational metrics for a utility or regulatory proceeding.

Section 205
2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 IRP Revenue Requirement (Partial) ($M) 858 914 977 968 982 1,045 1,050 1,079 1,094 1,147 1,127 1,107 1,109 1,146 1,191 1,233 1,238 1,303 1,350 1,394 1,489 1,558 1,548 1,589 1,615 1,651 2014...

AI summary The text presents financial data on revenue requirements and FCR recovery over several years, showing projections and figures for different years, which are likely part of a regulatory proceeding related to utility planning and financial forecasting.

Section 212
ios 2.2A and 2.2C (indicated Base DSM, corrected to Max DSM) • Updated rate model metric title for clarity and consistency with IRP Final Report (replaced “partial rate” with “relative rate”) I R P U P D AT E D M O D E L I N G R E S U LT S...

AI summary The document discusses updates to the Integrated Resource Plan (IRP) modeling results, including changes to DSM metrics, revised rate model titles, and the presentation of final portfolio study results from PLEXOS simulations. It highlights scenario results, energy mix, capacity installation, emissions compliance, and partial NPV of revenue requirements.

Section 213
costs (i.e. production, O&M, abatement, sustaining capital, and capital investment) and specific costs considered outside of the long-term model optimization (e.g. energy efficiency costs) I R P U P D AT E D M O D E L I N G R E S U LT S –...

AI summary The document outlines the metrics used to evaluate portfolios in the Integrated Resource Plan (IRP) final report, focusing on minimizing the cumulative present value of annual revenue requirements over a 25-year planning horizon, including adjustments for end-effects.

Section 214
l revenue requirements 25 year NPV Revenue Requirement over the planning horizon (with and without end-effects adjustment) Average Annual Relative Rate Impact - 25-yr Magnitude and timing of electricity rate effects 10 year NPV Revenue Req...

AI summary The text outlines various criteria for evaluating electricity plans, including revenue requirements, reliability requirements, grid services, plan robustness, emissions reductions, and flexibility. These factors are analyzed over different planning horizons and involve quantitative and qualitative assessments.

Section 599
2020 IRP ASSUMPTIONS SET 3 Nova Scotia Power IRP Final Report Appendix H Page 23 of 321 FINANCIAL ASSUMPTIONS Weighted Average Cost of Capital (WACC): Pre‐tax = 6.62% After‐tax = 5.64% Inflation Rate: 25-year Average = 2% Based on Conferen...

AI summary The document outlines the 2020 Integrated Resource Plan (IRP) assumptions, including the Weighted Average Cost of Capital (WACC) at 5.64% after-tax, an inflation rate of 2% based on the Conference Board of Canada's forecast, and revenue requirement profiles for supply-side options. Exchange rates for USD/CAD are also provided for the years 2021 to 2024.

Section 673
gulation signals will help off-set any generation/load imbalance in the NS Power system. Such imbalances could be from rapid changes in wind and solar generation or any generation surplus or shortage. The IRP presents a series of assumptio...

AI summary The document discusses the importance of regulation signals in balancing generation and load in the NS Power system, particularly with renewable sources. It highlights the Integrated Resource Plan (IRP) assumptions on technology costs and their impact on Levelized Cost of Energy (LCOE) and revenue requirement profiles. CanWEA suggests using price benchmarks to assess the reasonableness of these assumptions and recommends more explicit LCOE values for transparency.

Section 682
would like to better understand these assumptions or see them aligned with other sources. 8 National Renewable Energy Laboratory, Annual Technology Baseline: Electricity, Natural Gas Plants (2019). John D. Wilson and Paul Chernick • Resour...

AI summary The text discusses the inclusion of distributed energy resources (DERs) in modeling, emphasizing the need to account for both full costs and non-energy benefits such as reduced line losses and backup service, or alternatively, just the costs paid by NS Power reduced by T&D benefits if non-energy benefits cannot be estimated.

Section 882
1 EfficiencyOne’s comments on specific evaluation criteria as proposed by NS Power are as follows: 2 I. Minimization of NPV of the annual revenue requirements over 25 years (slide four, row 3 one) 4 EfficiencyOne agrees that this is an app...

AI summary EfficiencyOne provides feedback on NS Power's proposed evaluation criteria for the Integrated Resource Plan (IRP), agreeing with the minimization of NPV of annual revenue requirements over 25 years but questioning the use of a 10-year NPV metric for assessing rate effects. EfficiencyOne also recommends eliminating CRPs that do not meet reliability requirements and requests clarification on the metrics used for reliability screening.

Section 891
1 EfficiencyOne requests clarification on the following questions regarding NS Power’s 2 environmental assumptions: 3 • Does NS Power expect to sell excess GHG credits resulting from lower emissions? If yes, 4 how will the cost of carbon (...

AI summary EfficiencyOne seeks clarification from NS Power on environmental assumptions, including the handling of GHG credits, CO2 emission caps, and the calculation of DSM avoided costs in the Integrated Resource Plan (IRP). The discussion focuses on how environmental compliance costs and revenue from carbon credits are incorporated into the modeling process.

Section 922
Nova Scotia Power IRP Final Report Appendix H Page 228 of 321 energyfuturesgroup.com the modeling. In order to ensure clarity on the meaning of the metrics we also seek more information regarding the 10 year NPV Revenue Requirement to look...

AI summary The text discusses concerns regarding the Integrated Resource Planning (IRP) process, including the need for more detailed revenue requirement analysis, the importance of modeling avoided costs for DSM, and the need for flexibility in modeling supply-side additions. It also raises questions about natural gas pricing assumptions in the 2020 IRP draft.

Section 929
any related utility costs. The electrification scenarios developed in E3’s 26 Decarbonization study are essentially “scenarios” within which NS Power will explore different 27 generation, energy efficiency (EE) and demand response (DR) res...

AI summary The document discusses the development of electrification scenarios by NS Power in their Decarbonization study, highlighting that utility costs of electrification are not included in the Revenue Requirement. This makes quantitative comparison of revenue requirements between different CRPs inappropriate. EfficiencyOne agrees with Synapse on this point.

Section 931
1 problematic across different electrification scenarios, as the partial revenue requirements will 2 exclude any electrification program administration and incentive costs as well as transmission and 3 distribution costs, which are expecte...

AI summary EfficiencyOne highlights that comparing revenue requirements across different electrification scenarios is problematic due to varying costs, including administration, transmission, distribution, and external incentives. It recommends avoiding quantitative comparisons and selecting a single lowest-cost plan for DSM purposes, emphasizing the importance of a single Preferred Resource Plan (PRP) for IRP activities.

Section 932
, there will essentially be three PRPs, with each representing the highest- 25 ranking Candidate Resource Plan within each of the three electrification scenarios. NS Power has 26 committed to ultimately choosing a single 25-year Revenue Re...

AI summary EfficiencyOne raises concerns about the lack of clarity in Nova Scotia Power's decision-making criteria for selecting a single 25-year Revenue Requirement minimized plan among three PRPs, which are based on different electrification scenarios.

Section 1015
portfolio optimization process, but rather the DSM sc_enarios that change the load that will be used as inputs to the model used to develop the portfolios. The concern of using this approach is that: I. It does not test the economics of th...

AI summary The text discusses concerns with the methodology used in Nova Scotia Power's Integrated Resource Plan (IRP) regarding Demand Side Management (DSM) scenarios and their impact on portfolio optimization. It highlights issues with the economics of DSM, differences in focus among DSM options, and the dynamic effects of DSM penetration on avoided costs. The text also raises questions about revenue requirements for multi-year amortization.

Section 1047
umptions slides as may yield revenue requirement profiles unsupported by this is not an input to the modeling tool. market data

AI summary The text discusses assumptions slides that may yield revenue requirement profiles unsupported by market data, indicating a potential misalignment between modeled outcomes and actual market conditions.

Section 1100
which candidate resource plans are scored for a particular modeling scenario. NS Power also considers other factors to be important which is why additional metrics have been proposed for qualitative consideration during the preparation of...

AI summary The document discusses how candidate resource plans are scored under specific modeling scenarios and mentions that NS Power considers additional metrics for qualitative evaluation in the Roadmap and Action Plan. It also references the evaluation criteria used in the 2020 Integrated Resource Plan (IRP), including the 10-year Net Present Value (NPV) revenue requirement.

Section 1113
NS Power has included in the Evaluation scenarios (reliance on new/unproven technology, Criteria in order to provide a mechanism to ambitious DSM) - additional implementation risk and consider the risks associated with a particular risk of...

AI summary NS Power has included evaluation criteria to address risks associated with resource plans, including reliance on unproven technology and ambitious DSM. A participant commented that quantitative comparisons of revenue requirements across electrification scenarios are inconsistent due to differing assumptions.

Section 1136
SENSITIVITY ANALYSIS Increase in Low capital Renewable Energy cost of Standard policy wind Low capital Low pricing of import cost of energy storage High High pricing of pricing of natural gas import energy Carbon Fuel security tax/pricing...

AI summary The document outlines a sensitivity analysis focusing on renewable energy standards, capital costs, and pricing of imported energy, as well as carbon tax and fuel security. It also proposes evaluation criteria for an integrated resource plan, emphasizing the minimization of revenue requirements and rate impacts over a 25-year period.

Section 1213
present value of revenue requirement as this is not currently modeled as a utility cost. E1-9 Electrification Confirmation that NS Power will avoid cost comparisons NS Power recognizes that comparisons of NPV across across differing electr...

AI summary The document discusses Nova Scotia Power's approach to modeling revenue requirements and their commitment to avoiding misleading cost comparisons in electrification scenarios. It also outlines the engagement process for the Integrated Resource Plan (IRP) modeling results, including workshops and participant comments from various stakeholders.

Section 1266
ary Nova Scotia Power IRP Final Report Appendix J Page 41 of 245 Net Zero, High Elec./Max DSM, Distributed Resources Key Observations Metric 2035 2045  The addition of DER’s mitigates the capacity and energy GHG Emissions (MMT) 3.2 1.4 ne...

AI summary The addition of DERs reduces capacity and energy needs under a high electrification scenario, but increases average generation costs. GHG emissions decrease from 2035 to 2045, and the NPV increases significantly when considering 20-year end effects. However, the cost of DER resources is not included in the NPV calculations, which ranges from $1.6B to $2.5B.

Section 1322
age 52 of 245 INITIAL PORTFOLIO STUDY RESULTS Nova Scotia Power IRP Final Report Appendix J Page 53 of 245 INITIAL PORTFOLIO STUDY • The following slides provide the Initial Portfolio Study results from PLEXOS LT for the key scenarios as w...

AI summary The document discusses the Initial Portfolio Study results from PLEXOS LT, including key scenarios and sensitivities. It outlines the comparison of near-term and long-term resource portfolios up to 2026 and 2045, and presents partial revenue requirement NPVs considering various costs such as production, O&M, abatement, and energy efficiency.

Section 1323
Nova Scotia Power IRP Final Report Appendix J Page 56 of 245 N PV PA RT I A L R E V E N U E R EQ U I R E M E N T CO M PA R I S O N Low Electrification Mid Electrification High Electrification Low Electrification Mid Electrification High El...

AI summary The document presents partial revenue requirement comparisons under different electrification scenarios, noting that differences in forecast system load affect production costs and that comparisons across scenarios should be made with caution. It also includes financial metrics such as 25-year and 10-year NPVRR values for various scenarios, including the replacement of coal capacity with new gas CCGT and CT units.

Section 1349
15 Nova Scotia Power IRP Final Report Appendix J Page 92 of 245 LONG TERM RESOURCE CHANGES (2045) MW From L to R 16 Nova Scotia Power IRP Final Report Appendix J Page 93 of 245 N PV PA RT I A L R E V E N U E R EQ U I R E M E N T CO M PA R...

AI summary The document discusses long-term resource changes by 2045 and compares partial revenue requirements across different electrification scenarios. It highlights that differences in forecast system load affect production costs and cautions against comparing partial revenue requirements across scenarios.

Section 1362
firm load. We are unable to locate any documentation for the conclusion that reliable supply requires capacity with a cumulative ELCC of 109% of peak load. We suggest that NS Power should provide that derivation and identify what drives th...

AI summary The text raises concerns about the methodology used by NS Power in calculating end effects, particularly the use of a 25-year present value of revenue requirements. It argues that this approach may distort cost comparisons between different portfolios and suggests a shorter end effect period for more accurate analysis.

Section 1365
incorporate some BTM costs into its reported cost metric, we suggest using a modest placeholder value. If Plexos produces marginal hourly energy costs, those could be used for the assumed DER load shape. Otherwise, NS Power might use some...

AI summary The text discusses the challenges of incorporating bottom-of-the-meter (BTM) costs, the limitations of using NPVRR and partial generation cost metrics for comparing energy plans, and the need for a more meaningful bill metric. It also highlights the importance of considering T&D cost sensitivities and the need for more detailed computation methods for capital investments in the long-term Plexos model.

Section 1366
etail on the manner in which the “revenue requirement profiles” for the “supply‐side options that represent a capital investment” are computed in the objective function of the long-term Plexos model (2020 IRP: Financial Assumptions, March...

AI summary The text requests detailed information on how revenue requirement profiles for capital investments are computed in the long-term Plexos model used in the 2020 IRP. It specifically asks about the use of annual, nominally-levelized, or real-levelized revenue requirements and how income taxes are reflected in these calculations. Additionally, it suggests four changes to the scenarios or sensitivities that will be run for the IRP.

Section 1521
ELCC analysis)? • If the costs of offshore wind come down considerably over the study period, are there planning decisions (such as transmission investments or conventional capacity additions) included in this IRP that would be rendered un...

AI summary The text raises questions about the sensitivity of offshore wind costs and their impact on transmission investments and conventional capacity additions in the Integrated Resource Plan (IRP). It also requests stakeholder input on metrics used for evaluating portfolios, including revenue requirement minimization and GHG production metrics.

Section 1539
July 2020 Category Comment # Comment NS Power Response T&D CA-05 NS Power staff explained that the projection of revenue The Avoided T&D cost estimates, being developed requirements excludes T&D costs, which would be affected in parallel t...

AI summary The document includes comments from the Consumer Advocate regarding the exclusion of T&D costs in revenue requirement projections and requests for more detail on how revenue requirements for supply-side options are computed in the long-term Plexos model. NS Power responds by noting that Avoided T&D cost estimates are being developed in parallel with the IRP.

Section 1540
n the revenue requirements computation, in addition to book depreciation and return (which we assume is included at the 6.62% pre-tax rate). A display of the assumed revenue requirements from a combustion turbine, a wind installation and t...

AI summary The text discusses the computation of revenue requirements, specifically mentioning the inclusion of book depreciation and return at a 6.62% pre-tax rate, and requests a display of revenue requirements for various energy sources to ensure clarity.

Section 1663
Current proposed metrics appear to be revenue requirement NS Power uses nominal input values, and thus a minimization over a long horizon since the modeling nominal discount rate when calculating NPVRR. calculated PVRR utilizing a real lev...

AI summary The text discusses proposed metrics for revenue requirement, GHG production, and affordability, highlighting concerns about the use of nominal versus real discount rates and the need for more detailed and consistent accounting treatment. The text also mentions the inclusion of GHG metrics and the need for annual production data.

Section 1731
wer IRP Final Report Appendix K Page 81 of 264 RESOURCE PORTFOLIO CHANGES (2045) MW From L to R I R P D R A F T F I N D I N G S , R O A D M A P, & A C T I O N P L A N 14 Nova Scotia Power IRP Final Report Appendix K Page 82 of 264 QUESTION...

AI summary The document discusses the evaluation of resource portfolio changes by 2045, focusing on metrics such as the minimization of the cumulative present value of annual revenue requirements over a 25-year planning horizon. The metrics are part of an ongoing study informed by stakeholder feedback and updates from the Scenarios and Modeling Plan.

Section 1732
al revenue requirements 25 year NPV Revenue Requirement over the planning horizon (with and without end-effects adjustment) Average Annual Partial Rate Impact - 25-yr Magnitude and timing of electricity rate effects 10 year NPV Revenue Req...

AI summary The text discusses various aspects of electricity planning and regulation, including revenue requirements, reliability and grid stability, plan robustness, greenhouse gas emissions reductions, and flexibility in decision-making. Key topics include the evaluation of resource capacity, essential grid services, and the impact of assumptions on plan outcomes.

Section 1735
18 Nova Scotia Power IRP Final Report Appendix K Page 86 of 264 N PV PA RT I A L R E V E N U E R EQ U I R E M E N T CO M PA R I S O N Low Electrification Mid Electrification High Electrification Low Electrification Mid Electrification High...

AI summary The document compares revenue requirements and rate impacts across different electrification scenarios. Higher electrification with DSM investments reduces customer rates over time, while significant DER penetration increases rate pressure. Coal closures in 2030 and 2040 have similar long-term impacts, but the 2030 closure creates additional pressure in the 2030s without mitigation.

Section 1744
costs (i.e. production, O&M, abatement, sustaining capital, and capital investment) and specific costs considered outside of the long-term model optimization (e.g. energy efficiency costs) I R P U P D AT E D M O D E L I N G R E S U LT S –...

AI summary The document discusses the evaluation metrics used in the Integrated Resource Plan (IRP) update, focusing on minimizing the cumulative present value of annual revenue requirements over a 25-year planning horizon, including considerations of end-effects adjustment and average annual partial rate impact.

Section 1745
al revenue requirements 25 year NPV Revenue Requirement over the planning horizon (with and without end-effects adjustment) Average Annual Partial Rate Impact - 25-yr Magnitude and timing of electricity rate effects 10 year NPV Revenue Req...

AI summary The text outlines key evaluation criteria for assessing electricity plans, including revenue requirements, reliability, grid services, plan robustness, emissions reduction, and flexibility. It emphasizes quantitative and qualitative assessments of various aspects such as supply adequacy, essential grid services, and sensitivity to changes in assumptions.

Section 1824
d by total sales. There is no reason to exclude a portion of revenues from the average rate calculation. Our first case – “Correction” – presents just the impact of removing this portion of the model. Treatment of existing non-fuel revenue...

AI summary The document discusses the treatment of non-fuel revenues in the context of revenue requirement calculations. It suggests that sunk costs of existing generation, T&D capital investment, and utility operating costs should be adjusted, with a proposed annual reduction of 1.5% in these revenues. The analysis includes scenarios such as 'Correction' and 'Sensitivity' to evaluate the impact of these adjustments.

Section 1947
purposes. investments that are captured within the IRP revenue requirement. Accordingly, there should be some downward adjustment. T&D capital investment: These costs will depreciate but will be replaced by investments that are not capture...

AI summary The text discusses adjustments to revenue requirements based on T&D capital investments and utility operating costs, noting the need for downward adjustments and potential increases under higher load scenarios. It also mentions the need for electrification programs and the lack of detailed cost analysis for electrification in the IRP exercise.

Section 1988
Further, the IRP provides the only opportunity for analysis of the long-term revenue requirement associated with the NS electricity system. This long-term view is critical in determining the lowest cost electricity system into the future,...

AI summary The Integrated Resource Plan (IRP) is crucial for analyzing the long-term revenue requirements of Nova Scotia's electricity system and determining the lowest cost electricity system. The UARB emphasized the importance of the IRP in utilizing both supply-side and demand-side resources to reliably serve Nova Scotia's electrical needs at the lowest long-term cost to ratepayers.

Section 2136
on of the model, and is illustrated below. RII recommends that NS Power revise the rate impact model and correct its application throughout the Draft IRP Report and in its modeling results slide deck. Treatment of existing non-fuel revenue...

AI summary RII recommends that NS Power revise its rate impact model and correct its application in the Draft IRP Report and modeling results. RII questions the assumption that non-modeled costs remain consistent during the planning horizon and argues that a more complex model is needed to distinguish rate impacts by customer class.

Section 2137
and documents. RII does not agree that this adjustment accomplishes the stated goal. A significantly more complex model would be required to appropriately distinguish rate impacts by customer class. John D. Wilson and Paul Chernick • Resou...

AI summary Resource Insight, Inc. disagrees with the adjustment proposed by NSP, arguing that a more complex model is needed to distinguish rate impacts by customer class. They also recommend including a sensitivity analysis to account for uncertainty in NSP’s rate impact forecast.

Section 2149
2. Enables better grid management; and 3. Reduces negative environmental impacts. As well, RAP’s four key principles for maximizing electrification benefits should be followed. 3. EfficiencyOne is well-positioned to administer initiatives...

AI summary The document outlines the benefits of electrification, the role of EfficiencyOne in administering electrification initiatives, the importance of consistency in IRP secondary metrics, and the economic benefits of DSM energy efficiency programs. It also emphasizes the need for stakeholder-driven processes and the use of RAP principles.

Section 2219
hich is a win-win scenario. This is certainly mentioned within the report, but is somewhat buried in the text. It is a key point which should be highlighted in any summary of findings or conclusions. Key Finding 4 (page 22) The SDGA-compli...

AI summary The report highlights that the SDGA-compliant scenario 2.0C minimizes the cumulative present value of the annual revenue requirement over a 25-year horizon. However, the report argues that this metric does not fully capture the importance of maintaining affordability, as scenarios with higher electrification tend to lower rates and support emissions reduction goals. Scenario 2.1B, which uses a Distributed Resources strategy, is noted to have a significantly higher rate impact.

Section 2264
Category Participant Comment NS Power Response Incremental fixed cost recovery should not be deducted from the revenue requirement when forecasting system rates. Correct its application throughout the Draft IRP Report and in its modeling r...

AI summary The Consumer Advocate requests that NS Power not deduct incremental fixed cost recovery from the revenue requirement and to include a sensitivity analysis on the decline of non-fuel costs. NS Power responds by adjusting its approach to focus on long-term NPVRR metrics. The discussion involves DSM program investments and the IRP report.

Section 2420
JFS Hydrostor No comment n/a Natural See comments on overall Finding 1. Forces PHP Supportive of use of rate impact analysis: 2020-09-18; p.2/2 ‘In its Updated Modeling Results and Draft Findings, NS Power developed a rate impact calculati...

AI summary The document discusses feedback from various stakeholders on NS Power's rate impact analysis and long-term strategy. PHP and SBA support the use of rate impact models to assess the implications of different energy portfolios, emphasizing the importance of rate stability for industrial customers.

N-11Comments - Synapse 2 passages
Section 18
aluation of “Overcompliance” Carbon Emission Reduction on NPVRR Comparison – Scenario 2.1C vs. Scenario 2.1C Low Wind Cost Value of "overcompliance" CO2 reduction at current SDGA auction market price Scenario 2.1C vs. 2.1C "Low Wind" cost...

AI summary The analysis compares CO2 emission reductions and their financial impact on NPVRR between Scenario 2.1C and Scenario 2.1C Low Wind Cost. Overcompliance in the latter scenario results in significant emission savings (14.3 million tons by 2045) valued at $249.5 million (NPV 2022-2045) at $24/ton. Emission reductions peak in 2025 (2.2 million tons saved) and decline slightly by 2045.

Section 22
8 Figure 1 below reproduces the emission trajectory results shown in Tables 1 and 2 above. It shows the different CO2 trajectories for three Scenarios: 2.1C, 2.1C low wind cost, and 3.1C. Figure 1. Carbon Emissions by Selected Scenarios –...

AI summary The text presents emission trajectory scenarios (2.1C, 2.1C low wind cost, 3.1C) and links lower CO2 emissions to potential revenue requirement reductions via carbon credit monetization. It also highlights that demand-side management (DSM) can reduce energy needs and emissions when compared across scenarios.

N-15Comments - SBA 1 passage
B. Metrics - NPV Partial Revenue Requirements, Rate Impacts p. p. 0
B. Metrics - NPV Partial Revenue Requirements, Rate Impacts The primary metric of partial revenue requirement minimization over a long horizon was calculated PVRR utilizing a real levelized capital cost recovery factor in modeling. The SBA...

AI summary The text discusses metrics for partial revenue requirements and rate impacts, emphasizing the need for clarity on capital cost recovery methods (nominal vs. levelized). The SBA requests additional metrics, including affordability analysis via kWh costs, long-term capital investment breakdowns, and imported power reliance. NSPI acknowledges limitations in current rate impact metrics and highlights the importance of financial viability assessments.

N-18Response to Comments - NSPI 5 passages
General Comments on the Stakeholder Process, Approach to the Analysis, and Reasonability of NS Power's Long-term Electricity Strategy p. pp. 2-3
sues. The Board may wish to recognize that Nova Scotia Power's level of engagement and efforts to resolving issues raised by stakeholders is well above average for the utility industry. [8](#page-3-1) RII further stated that NS Power had c...

AI summary The text highlights NS Power's above-average stakeholder engagement and a credible carbon-reduction plan with multiple pathways. It emphasizes electrification's impact on utility costs and calls for collaboration between NS Power, regulators, and officials. The IRP analysis shows earlier coal retirement leads to higher near-term rates and cumulative revenue requirements.

Provision of Avoided Costs of DSM p. pp. 9-13
Provision of Avoided Costs of DSM As a final step in the closure of the 2020 IRP process, NS Power is required to deliver its avoided costs of energy and capacity for DSM. Per the Terms of Reference, a Reference Plan for the use of avoided...

AI summary NS Power must deliver avoided costs of energy and capacity from demand-side management (DSM) as part of the 2020 IRP process, using the Difference-in-Revenue-Requirements method. The Board confirmed this requirement, and no parties have objected to the methodology or reference plan selection. NS Power will provide calculations for scenarios 2.0C (Reference Plan) and 2.1C, inviting stakeholder review.

IRP Final Report Comments – Bates White p. pp. 13-35
greenhouse gas emissions quickly in order to mitigate impacts on customer electric rates. NS Power's primary objective during the IRP analysis has been to identify resource portfolios that minimize the net present value of revenue requirem...

AI summary NS Power aims to minimize the net present value of revenue requirement while adhering to greenhouse gas emissions targets through its Integrated Resource Plan (IRP) analysis. The scenarios developed represent the minimum cost to achieve these targets under various assumptions.

DIFFERENCE IN REVENUE REQUIREMENT METHOD p. pp. 127-128
DIFFERENCE IN REVENUE REQUIREMENT METHOD - The DRR method calculates the Difference in Partial Revenue Requirement With and Without new DSM - Partial Revenue Requirement are those costs that have been included in the Plexos IRP modeling. T...

AI summary The DRR method calculates the difference in partial revenue requirement with and without new demand-side management (DSM). It considers production costs, generation O&M, abatement, and capital costs, while netting out common costs. System costs are determined using Plexos for two cases: with and without DSM effects. Total avoided costs are calculated and allocated between energy and capacity costs using a Load Factor or ELCC approach.

DIFFERENCE IN REVENUE REQUIREMENT – SUMMARY p. p. 129
DIFFERENCE IN REVENUE REQUIREMENT – SUMMARY SCENARIO 2021 NPV REVENUE REQUIREMENT PARTIAL – 25 YEAR ($000) REV. REQ. DELTA ($000) 2.0C $11,536,823 $1,758,272 2.0C No New DSM $13,295,095 2.1C $12,443,726 2.1C No New DSM $14,356,235 $1,912,5...

AI summary The table presents the revenue requirement differences for various scenarios, including the 2.0C and 2.1C scenarios, both with and without new demand-side management (DSM) programs. The figures highlight the financial impact of including or excluding DSM initiatives in the revenue requirement calculations.

Disclaimer: These summaries were generated by AI from the filings they describe. We take care to make them accurate, but errors are possible - and they aren't advice. Only the filings themselves are the record: if you're relying on something here, confirm it against the source documents or the Nova Scotia Energy Board's own record. Full disclaimer →