Topic:"Revenue Requirement" in M12249

1.1 2026 DSM EXTENSION SNAPSHOT E1 seeks Energy Board approval to invest the legislated $63,750,000 to achieve the following targets under the four categories that were approved through the 2023-2025 DSM Plan: a) Incremental annual net ene...

AI summary E1 requests approval to invest $63.75 million under the 2026 DSM Extension to meet revised energy efficiency targets, including cumulative annual net energy savings of 528.7 GWh and net peak demand savings of 97.7 MW. The extension also includes dedicated low-income and equity programs with specific savings targets. The total investment from 2023–2026 is expected to reach $236.8 million.

ot been modelled. Users can also adjust the Avoided Cost Scenario relative to the DSM Benchmark avoided cost assumptions in tab 'COSS Outputs 1". Users have the option to select cost scenarios of 75%, The savings presented in the NS Power...

AI summary The NS Power rate model allows adjusting the Avoided Cost Scenario relative to the DSM Benchmark. Savings in the 'Total-Savings(Added)' tab depend on selected DSM resources in the 'E1 Data Inputs' tab. If all DSM resources are selected, no savings are shown, but avoided costs from unselected resources are added to NS Power's revenue requirement.

7. CONCLUSION - Highlights from the 2026 DSM Extension RBIA analysis include: - Over the 16 years of the study period, participants in DSM programs see average annual bill reductions ranging from a low of 0.1 percent (typical Municipal par...

AI summary The 2026 DSM Extension RBIA analysis highlights that DSM programs lead to significant bill savings for participants, with Nova Scotian ratepayers expected to save $74 million over 16 years. Non-participants experience minimal rate increases, while higher participation reduces the number of customers facing rate hikes without bill savings. The analysis also notes that societal benefits like reduced emissions and local economic investment are not fully captured in the RBIA model.

his graph shows estimated rate impacts of DSM by individual DSM resource, all relative to the no-DSM scenario. This graph shows bill impacts of all DSM resources combined, as percentage differences relative to the no-DSM scenario. 'Partici...

AI summary The document presents graphical analyses of the estimated rate and bill impacts of Demand-Side Management (DSM) resources, relative to a no-DSM scenario. It includes participation rates for different DSM resources, distinguishing between 'Annual' and 'Active' participation, and highlights the impact of DSM on customer energy use and costs.

Revenue Requirement Ordinarily, the base cost rate setting process used in rate case applications requires a great amount of detailed cost inputs to determine revenue requirement. Annual rate base data needs to be collected on a variety of...

AI summary The document explains that the RBIA does not require detailed annual cost data for rate base calculations, as it only assesses DSM-induced changes while keeping other costs constant. This avoids the need for a full rate case analysis, focusing instead on directional and relative rate/bill changes due to DSM programs.

Rates and Revenues There is little that can be inferred about the cost causation process from the rate structures used by the utility to generate customers' bills. The rates are bundled and therefore do not allow tracking of cost recovery...

AI summary The document critiques NS Power's bundled rate structures, which obscure cost recovery tracking by functional areas (generation, transmission, distribution). Residential and small general classes recover demand-related costs via energy charges, while other classes use combinations of demand and energy charges. Misalignments exist between revenue streams and cost categories for customer and demand charges, as noted in the Cost-of-Service Study (COSS).

3.3 Unit Revenue Determination For the directional purposes of the RBIA model, it is not considered necessary to develop annual rates with all charges under the "With DSM" and "No DSM" cases. Rather, it is sufficient for NS Power to provid...

AI summary NS Power determines class unit blended revenues for residential and small general rate classes without customer charges, adjusted for line losses. Factors like fuel cost true-ups and rate smoothing are excluded, as they have no material effect on relative unit revenue changes between 'With DSM' and 'No DSM' cases.

Changes in total Revenue Requirement

AI summary The document heading 'Changes in total Revenue Requirement' indicates a regulatory proceeding section addressing revenue adjustments. No substantive content is provided in the text, as the entry consists solely of the heading.

Performance Targets at the end of the Term shall be reported to the UARB/NSEB and refunded to NSPI[1](#page-181-0) unless EfficiencyOne is directed to do otherwise by the UARB/NSEB. The 2019 surplus[2](#page-181-1) of $273,174 will be refu...

AI summary The document outlines that performance targets must be reported to the UARB/NSEB and any surplus, including interest, must be refunded to NSPI unless directed otherwise. The 2019 surplus of $273,174 will be refunded in 2023, and the 2024 Net Contract Amount will be adjusted to reflect surplus from the 2020-2022 DSM Plan.

The figure below identifies the Contract Price to be paid by NSPI allocated for each year of the Term. 2023 2024 2025 2026 Total UARB /NSEB Approved Investment Amount 53,000,000 57,500,000 62,500,000 63,750,000 236,750,000 173,000,000 Refu...

AI summary The document outlines the Contract Price to be paid by Nova Scotia Power Inc. (NSPI) for each year of the Term, including approved investment amounts, refunds, and net contract amounts. It also mentions that any surplus realized by EfficiencyOne in meeting Performance Targets will be refunded to NSPI, with a reference to a 2019 surplus to be refunded in 2023.

E1 does not have enough information to draw firm conclusions about the basis for, or implications of these differences on avoided costs; however, we expect there could be material impacts on the avoided costs. These results warrant a more...

AI summary E1 lacks sufficient information to determine the basis or implications of differences in avoided costs between scenarios. Questions are raised about resolution levels, assumption differences, documentation of results, resource selection changes, revenue requirements, and steps to reduce emissions in the Base DSM scenario.

E1 Responses to Synapse Energy Economics (Synapse) Information Requests NON-CONFIDENTIAL Request IR-10: Please refer to Table 5: 2026 Program Savings and Investment on page 23 of the Evidence. (a) Under the Demand Response (DR) Program sub...

AI summary The response to Request IR-10 asks for an updated version of Table 5 with a breakdown of Lifetime Benefits for the Residential Demand Response and BNI Demand Response program components and confirms that Lifetime Benefits represent the net present value of total benefits associated with the TRC.

Technical Assistance Provider U.S. Department of Housing and Urban Development (HUD) (January 2025 – Present) - Worked as part of a team with Capital Access Inc. to provide a Multi-State Needs Assessment for a "Program-in-a-box" concept to...

AI summary The U.S. Department of Housing and Urban Development (HUD) collaborated with Capital Access Inc. from January 2025 to present on a Multi-State Needs Assessment for a 'Program-in-a-box' concept, aiming to leverage CDBG funding alongside federal, state, and local resources.

Green Energy states: Over three years, the residential sector will see unit costs for first year savings go up nearly three times higher, and lifetime savings unit costs rise over five times higher. In that same time span, low-income savin...

AI summary Over three years, residential energy costs for first-year and lifetime savings are projected to increase significantly, with low-income savings rising over four times. Green Energy highlights these rapid increases as concerning.

4. Maintenance Issue The Peach Report states as follows in relation to the customer's lack of ongoing maintenance of compressed air leaks: [41](#page-44-2) It is not clear why an organization with multiple similar sites located worldwide w...

AI summary The Peach Report criticizes the customer's failure to maintain compressed air leaks, suggesting that corporate policies and existing standards should have addressed the issue without ongoing DSM funding. It references successful integration of practices in other DSM programs and corporate sectors, emphasizing the need for evaluators to review client policies.