Topic:"Revenue Requirement" in M12619

of 782 REDACTED REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan CONFIDENTIAL (Attachments Only) 1 Pursuant to Section 6.1 of the CEJC, NS Power’s generation, transmission and distribution capital 2 projects are rated according to...

AI summary The 2026 ACE Plan outlines NS Power’s project rating methodology for capital expenditures, emphasizing health and safety, environmental compliance, business sustainability, and technical justification. Projects are rated using a matrix based on criticality and condition, resulting in a risk score from 1 to 25.

TUC3 Continuous Ash Hauling System Continuous Ash Hauling System Avoided Applicable Year Total Revenue Operating Costs Expenses Capital CCA UCC CFBT Taxes CFAT PV of CF Discount Factor CNPV 2025 - (227,519.0) - - - - (227,519.0) 65,980.5 (...

AI summary The document presents a financial analysis of the TUC3 Continuous Ash Hauling System from 2025 to 2033, including revenue, operating costs, capital expenditures, and net present value (NPV) calculations over time.

TUC3 Continuous Ash Hauling System Do Nothing Avoided Applicable Year Total Revenue Operating Costs Expenses Capital CCA UCC CFBT Taxes CFAT PV of CF Discount Factor CNPV 2025 - (287,795.0) - - - - (287,795.0) 83,460.6 (204,334.5) (204,334...

AI summary The table presents a financial analysis of the TUC3 Continuous Ash Hauling System over the years 2025 to 2033, including operating costs, expenses, capital expenditures, taxes, and net present value (NPV) calculations. The analysis shows increasing costs and negative net present values, indicating potential financial challenges.

REDACTED 2026 ACE Plan C0068888 Page 11 of 11 COMPARATIVE CUMULATIVE REVENUE REQUIREMENT 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 Continuous Ash Hauling System Do Nothing 2,000,000 0 0 1,500,000 1,000,000 500,000 0 2025...

AI summary The document presents a comparative cumulative revenue requirement chart for the 2026 ACE Plan, showing projections for the Continuous Ash Hauling System and the Do Nothing scenario across the years 2025 to 2032.

7 Approved Transmission C0052055 2023/2024 Transmission Right-of-Way Widening 69kV P&A OTQ - December 5, 2022 $ - $ 5,332,315 $ 4,826,689 Approved Distribution C0052056 New Distribution Rights-of-Way Phase 8 P&A OTQ - December 5, 2022 $ -...

AI summary The document lists several approved capital expenditures related to transmission, distribution, and generation in Nova Scotia, including project names, approval dates, and associated costs. These projects are part of the 2023 ACE Plan and other initiatives, with some costs related to unbundled usage and purchases.

2023 ACE Plan (Less than $1M) Q1 - May 13, 2024 $ 913,947 $ 1,225,491 $ 1,291,556 Date: December 12, 2025 Page 448 of 782 REDACTED REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Appendix C Page 5 of 9 NS Power Capital Item Statu...

AI summary This document provides an overview of the 2023 and 2026 Annual Capital Expenditure (ACE) Plans, including funding amounts and project status updates. It highlights the current status of capital items submitted to the Nova Scotia Energy Board (NSEB) as of September 30, 2025.

REDACTED (CONFIDENTIAL INFORMATION REMOVED) 2026 ACE Plan Appendix D Page 9 of 179 New Updates - Other • Removed “Revenue Requirement in ACE Plan” section, in alignment with 2022 ACE Plan Decision (M10366) • Addition of Retirement Informat...

AI summary The 2026 ACE Plan has been updated to remove the 'Revenue Requirement in ACE Plan' section in alignment with the 2022 ACE Plan Decision (M10366). Additional changes include the addition of Retirement Information and Contingency Information under Capital Application Requirements, in line with Board direction under Revised Accounting Policies (M09229) and the 2022 ACE Plan (M10366). Clarifications have been made regarding Routine ATO applications for sub-routines under $1 million, and minor edits in Thermal and Routines sections.

Section Summary CEJC Detailed CEJC Substantive/ Revision Description (Summary/Detailed) Page # Page # Non-Substantive Definitions (1.0) 5-6 of 54 6 of 113 Substantive Modification of FIN definition and addition of Scope and Scope Change de...

AI summary The document outlines modifications to the FIN definition and the addition of Scope and Scope Change definitions in the Definitions section. It also notes the removal of the Revenue Requirement section from the Annual Capital Expenditure Plan, as per the Board's 2022 ACE Plan Decision, with the Board reserving the right to seek this information in future proceedings.

information on the revenue requirement in a future proceeding.

AI summary The text refers to information on the revenue requirement that will be addressed in a future proceeding, indicating that the discussion of revenue requirements is pending.

This section is therefore outdated, and has been removed. Capital Application Requirements 27-28 of 54 45-46 of 113 Substantive Addition of Retirement Information and Contingency (11.2) Information as required information for capital appli...

AI summary The text outlines updates to capital application requirements, including the addition of retirement information and contingency details in line with accounting policies and the 2022 ACE Plan. It also mentions formatting improvements and clarifications on routine capital ATO applications.

1.0 Defini ons ......................................................................................................................... 4 2.0 Introduc on .......................................................................................

AI summary The document outlines the capital planning process for NS Power, including budgeting, execution, ranking, and economic analysis. It also discusses financial criteria, parameters, and the types of capital applications submitted for NSEB approval, along with the requirements for such approvals.

). Discounted Payback Period: This is a measure of economic value. It represents the number of years required to pay back the ini al capital cost of a project. It measures the levered payback period. DiscreƟonary Project: Investments that...

AI summary The text discusses the Economic Analysis Model (EAM) used by Nova Scotia Power Inc. to calculate the present value of revenue requirements and economic value of projects. It also defines terms such as 'Discounted Payback Period' and 'Discretionary Project'.

s of the capital approval process. This begins during the development and submi al of the ACE Plan and con nues un l the project is complete and receives final cost approval. NS Power is commi ed to: • Delivering effec ve and efficient servic...

AI summary The Capital Expenditure Justification Criteria (CEJC) ensures NS Power uses consistent economic, financial, and technical standards to justify capital spending, aiming to maximize customer benefits and minimize rate impacts. The process begins with the submission of the ACE Plan and continues until final cost approval.

rained by a number of factors including the ability to effec vely execute the annual program with the available me and resources, the maintenance cycle of the genera ng facili es and company cash flow. The NS Power Execu ve approval process...

AI summary The document outlines the process for developing and submitting the Annual Capital Expenditure (ACE) Plan by NS Power, including executive approval, project ranking, and submission to the NSEB. It emphasizes the flexibility of the capital program and the criteria used for project ranking.

• Major safety incident leading to • Corporate environmental target JOHSC actions and controllable exceedence. by internal resources. • Major reportable environmental incident Major 4 4 8 12 16 20 • Lost time Injury with off-site or off-fa...

AI summary The text outlines a risk categorization framework for incidents, including safety and environmental events, with associated criticality rankings and factors such as replacement energy costs, regulatory requirements, and project economics.

wing are typical inputs into the model: • Capital investment profile • Opera ng cash flows, including avoided costs The model calculates the following: • Revenue requirement • Income tax associated with the capital expenditures • Discounte...

AI summary The document outlines a model used to evaluate capital investments, including revenue requirements, income tax, discounted net cash flow, and economic indicators like NPV and IRR. Avoided costs are calculated using probabilities of failure, capacity factors, and replacement energy costs, with inflation used as an escalator for future years.

Deleted: 6.3.2 Revenue Requirement DirecƟve in 6.3.3 Total Cost of Ownership Annual Capital Expenditure Plan¶ ¶ In the Board’s 2011 ACE Plan decision, the Board provided In the Board’s 2022 ACE Plan decision, the Board provided the followi...

AI summary The document discusses the 2011 and 2022 ACE Plan decisions by the Board, which direct NSPI to use Total Cost of Ownership (TCO) for IT projects over $1 million when an Economic Analysis Model (EAM) is not available. It also outlines the requirement for NSPI to provide an approximate calculation of how the ACE Plan affects revenue requirements.

ses over its expected useful life. It accounts for all the capital pursuant to the 2016 ACE Plan Terms of Consensus, NS Power also provides a version of the overall revenue and opera ng costs, including the upfront capital costs. In addi o...

AI summary The document discusses the Total Cost of Ownership (TCO) as a tool for evaluating capital investments, emphasizing the alignment of the TCO timeframe with the useful life of IT software or hardware. It highlights that when capital expenditures match depreciation expenses, there is minimal impact on the rate base or customer revenue requirement.

eturn mul plied by the por on of equity to total capital of the incremental rate base.¶ • Addi onal fixed cost recovery received from customer growth achieved through capital investment to serve these customers.¶ Deprecia on expense and ad...

AI summary The text discusses the calculation of revenue requirements in the context of the 2026 ACE Plan, highlighting depreciation expense and additional fixed cost recoveries. It notes that the method used does not fully account for certain factors, as indicated by the ellipsis.

2026 ACE Plan Appendix D Page 36 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Summary Document 9.0 Economic Analysis of AlternaƟves The guiding principle of economic analysis is to seek the most...

AI summary This document outlines the economic analysis of alternatives for capital projects under the 2026 Annual Capital Expenditure Plan (ACE Plan). It emphasizes the need to evaluate alternatives based on cost-effectiveness and value for customers and Nova Scotia Power Inc. (NSPI). The document also details the types of capital applications submitted to the Nova Scotia Energy Board (NSEB) for approval, including planned and unforeseen projects.

provisions of the Public UƟliƟes Act (the Act). NS Power is subject to general supervisory oversight of the NSEB. Sec on 35 and Sec on 35AA (effec ve October 30, 2019) of the Act provide the following: 35 No public u lity shall proceed with...

AI summary The Public Utilities Act provisions outline capital expenditure thresholds requiring Board approval for NS Power. Section 35 mandates Board approval for projects exceeding $250,000, while Section 35AA exempts large-scale utilities (annual revenue ≥ $100M) from this requirement for projects ≤ $1M. The Board may approve, modify, or reject applications through various review processes, with NS Power retaining discretion to defer/cancel projects based on reassessment.

specific ini a ves; • A prohibi on against specific third-party ini a ves; or • A review of regulatory or accoun ng treatment for NS Power assets or costs. 17.2 InnovaƟon JusƟficaƟon Criteria Innova on capital projects are jus fied on the...

AI summary The text outlines criteria for justifying innovation capital projects, emphasizing their potential to reduce revenue pressure, enhance reliability, ensure compliance, and improve customer experience through innovative technology deployment. Sub-criteria include testing scalability, data collection, and business case development.

• Major safety incident leading to • Corporate environmental target JOHSC actions and controllable exceedence. by internal resources. • Major reportable environmental incident Major 4 4 8 12 16 20 • Lost time Injury with off-site or off-fa...

AI summary The text outlines a risk categorization framework for incidents, including safety and environmental events, with associated criticality rankings and factors such as replacement energy costs, regulatory requirements, and project economics.

efit to customers while allowing NS Power to meet its objec ves. The capital planning cycle for any given year typically begins early in the preceding year and concludes at the filing of the ACE Plan. Although the oversight and management...

AI summary Nova Scotia Power Inc. (NS Power) outlines its capital planning process, emphasizing centralized oversight and annual ranking of projects based on health and safety, regulatory compliance, customer reliability (SAIDI, SAIFI), requirement to serve, and economic factors (NPV, ACHI). Projects are reviewed to align with strategic goals and ensure justification.

I, CAIDI • Requirement to Serve • Economics: Based on Revenue Requirement, Net Present Value of the Project, Levelized Cost Analysis, $/ Avoided Customer Hours of Interrup on (ACHI) Each year, the capital program includes those projects wh...

AI summary The document outlines Nova Scotia Power Inc.'s capital expenditure justification categories, emphasizing projects essential for health, safety, regulatory compliance, and service delivery. Economic evaluation methods include revenue requirement analysis, net present value, and levelized cost analysis. Capital decisions are influenced by factors like resource availability, maintenance cycles, and cash flow constraints.

Deleted: 6.7.2 Revenue Requirement DirecƟve in The benefits of the model are that it is rela vely simple to use, promotes consistency of Annual Capital Expenditure Plan¶ capital analysis across the organiza on and provides immediate inform...

AI summary The document discusses the Revenue Requirement Directive in the context of the Annual Capital Expenditure (ACE) Plan, emphasizing a model's simplicity and consistency in capital analysis. It references the Board's 2011 ACE Plan decision, requiring NSPI to assess the ACE Plan's impact on revenue requirements, with adjustments beginning in 2012 and 2017 under the 2016 ACE Plan Terms of Consensus.

pursuant to the 2016 ACE Plan Terms of Consensus, NS Power also provides a version of the overall revenue With respect to various alterna ves considered within an EAM, project developers will requirement table based on stakeholder assump o...

AI summary NS Power's revenue requirement table, based on stakeholder assumptions and EAM, includes administrative overhead. Capital expenditures equaling depreciation do not affect rate base or revenue requirement, as rate base remains stable when capital spending matches depreciation. Developers must clarify alternative cost structures in EAM.

imal effect on rate base or associated revenue requirement and therefore it is examine further those projects where elimina on of the AO credit from the revenue excluded from the calcula on.¶ requirement analysis could affect the recommended...

AI summary The document discusses the impact of removing the Administrative Overhead (AO) credit from revenue requirement analysis on economically justified projects, emphasizing NS Power's need to assess effects on rate base, revenue requirement, and project recommendations. It also references the Production Costing Model for fleet dispatch forecasts.

in the calcula on of taxable income or cash flows. It is recognized in the calcula on of revenue requirement. Capital Cost Allowance CCA is deprecia on for tax purposes. CCA is a deduc on against taxable income. Capital Cost Allowance is b...

AI summary The text explains Capital Cost Allowance (CCA) as a tax depreciation method distinct from plant depreciation. It emphasizes NS Power's need to secure investment capital by maintaining investor confidence and ensuring financial soundness of capital projects through rigorous analysis.

ACE Plan Appendix D Page 102 of 179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document 9.0 Economic Analysis of AlternaƟves 9.1 IntroducƟon The guiding principle of economic analysis is to s...

AI summary Nova Scotia Power Inc. outlines its approach to economic analysis of alternatives for capital expenditures, emphasizing cost-effectiveness and value for customers. The analysis includes evaluating traditional and non-traditional options, estimating revenue contributions, and using methods like net present value and sensitivity analysis to identify the least costly alternatives.

The es mate of the costs and benefits of a capital project should show the difference in revenue requirement as a result of undertaking the project. 9.1.3.2 Cost EsƟmates Reliable es mates and forecasts are vital to the capital investment d...

AI summary The text outlines principles for estimating capital project costs and benefits, emphasizing accurate revenue requirement differences. Guidelines stress focusing on future post-tax revenues, differential costs, and opportunity costs to ensure realistic capital expenditure decisions.

e market, its economic life has ended for the organiza on as soon as the manufacturer ceases to produce the product, market the product, or provide spares and services. Month DD, 2025 Page 40 of 113 Date: December 12, 2025 Page 559 of 782...

AI summary The document outlines Nova Scotia Power Inc.'s approach to calculating Net Present Value (NPV) for capital expenditure decisions, emphasizing the time value of money, discounting future costs to the present, and using the cost of capital as the discount rate to ensure investment recovery and return. It highlights the importance of revenue requirements in investment decisions, independent of financing methods.

179 Nova ScoƟa Power Inc. Capital Planning & Capital Expenditure JusƟficaƟon Criteria Detailed Document 17.0 Capital Expenditure JusƟficaƟon Criteria 17.1 IntroducƟon – General ConsideraƟons The following considera ons are used to evaluate...

AI summary Nova Scotia Power Inc. outlines capital expenditure justification criteria, emphasizing evaluation of alternatives, technology suitability, cost analysis, compliance with reliability standards, and selection of the least-cost option meeting requirements. The Integrated Resource Plan (IRP) is referenced as a framework for decision-making.

data and learnings, or aid in the development of business cases where applicable. Sub-JusƟficaƟon Criteria Innova on capital projects may be jus fied under one or more of the following sub-criteria: • reduce upward pressure on revenue requ...

AI summary The text outlines sub-justification criteria for innovation capital projects, focusing on reducing revenue requirement pressure, enhancing grid reliability, and improving customer experience. It emphasizes deploying proven technologies to lower operational costs, manage renewable integration challenges, and address reliability risks from weather events and power quality issues.

REDACTED 2026 ACE Plan CA IR-16 Attachment 2 Page 7 of 7 REDACTED (CONFIDENTIAL INFORMATION REMOVED) SE-38.4-2010 Quantities & Prices (Schedule "C") Currency CAD Transformer Duty Freight and Offloading (FOB Destination) TRANFORMER SUB-TOTA...

AI summary The document outlines transformer replacement projects and their associated costs, including approved budgets, contingency amounts, and total spend figures. It references various projects with specific approval mechanisms and statuses, such as 'Partially Complete' or 'Under budget.' The ACE Plan is mentioned, along with the Nova Scotia Energy Board (NSEB) and the 2026 Annual Capital Expenditure (ACE) Plan (NSEB M12619).

2026 ACE NSDoE IR-001 Attachment 1 Status CI Number Title First Approval Year Original Approved Project Cost 2026 ACE Project Total Variance ($) Variance % 10 (b) The remaining useful life of the asset prior to the project and the expected...

AI summary The document outlines information requests related to the 2026 Annual Capital Expenditure (ACE) Plan, focusing on asset life extension, levelized cost of energy (LCOE), alternative generation resources, and the impact on rate base and revenue requirements. Two projects exceeding $5 million are listed for approval.

2026 Annual Capital Expenditure (ACE) Plan (NSEB M12619) NSPI Responses to NSEB Information Requests

AI summary The document outlines NSPI's responses to information requests from the NSEB regarding the 2026 Annual Capital Expenditure (ACE) Plan. It focuses on the capital expenditure planning process and related financial and operational considerations.

8.14 COMMERCIAL/PRICE PROPOSAL REQUIREMENTS NSPI-Ruth Falls Dam Refurbishment Submitted in separate document.

AI summary The commercial/price proposal requirements for the NSPI-Ruth Falls Dam Refurbishment project are submitted in a separate document, as indicated in the regulatory proceeding text.

hern California Edison's 2021 general rate case (track 2) on behalf of the Small Business Utility Advocates. Reasonableness of remedial software costs to be included in authorized revenue requirement. Georgia PSC Docket Nos. 4822, 16573 an...

AI summary The text outlines expert testimony in various regulatory proceedings, focusing on rate cases, fuel adjustment mechanisms, and compliance with regulatory orders. It includes matters in Nova Scotia and California, discussing topics such as fuel contract costs, rate design, and modifications to load management programs.

he state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the state of the st...

AI summary The text mentions a project originally forecast to be completed for less than $1M, and references a Board approval threshold of $1,000,000, effective October 30, 2019. The text is repetitive and contains a formatting error.

DATE FILED: April 8, 2026 Page 11 of 19 1 2.10 Recommendation 10 – Accept NS Power's Clarification of "Scope Change" 29 30 31 32 33 34 The Board should direct NS Power to include in its annual report, beginning in 2027, an estimate of how...

AI summary The Board is recommended to direct NS Power to include in its annual report, starting in 2027, an estimate of how quantified benefits apply to specific capital projects and operating expenses, providing context for cost control in the Five-Year Reliability Plan and other areas.

3.0 CONCLUSION Consistent with prior ACE Plans, NS Power's 2026 ACE Plan reflects the Company's focus on providing customers with safe and reliable electrical service in the most cost-effective manner possible. NS Power appreciates the gui...

AI summary NS Power's 2026 ACE Plan emphasizes cost-effective, reliable electrical service and reflects stakeholder collaboration. The company asserts that its Rebuttal Evidence addresses concerns raised in the Wilson Evidence and requests the Board's approval of the plan and revised CEJC.

Call for Regulatory Rigour and Accountability - The Department requests that the Board scrutinize the 2026 ACE Plan; seeing it not as a - collection of routine repairs, but rather recognizing it as potentially yet another round in - the sy...

AI summary The Department of Energy requests the Board to rigorously scrutinize the 2026 ACE Plan, questioning its potential to inflate asset purchases and urging the cancellation or deferral of expenditures without proper justification. It also calls for disallowing ratepayer funding for projects that would represent a 'double recovery' for system failures already covered by the utility.

tions that appear in annual ACE Plans, or a continued lack of quantifiable benefits over time related to the Five-Year Reliability Plan, for example, could cause the Board to reevaluate this position. [174] The foregoing discussion does no...

AI summary The document discusses the impact of increasing capital expenditures on rate pressures and the need for careful review of capital approvals. It highlights that while current capital costs are already included in 2026 and 2027 rates, there is a limit to how much rate increases and deferral accounts can be tolerated before affecting financial flexibility and fairness to future ratepayers.

A Direction for Comprehensive Reporting Is Warranted The Industrial Group submits that the Board should direct NSPI to file, alongside each future ACE Plan, a ratepayer cost exposure reporting that includes: - NSPI's ACE capital program (a...

AI summary The Industrial Group (IG) urges the Board to require NSPI to provide detailed ratepayer cost exposure reporting in future ACE Plans, including capital program costs, reliability intertie costs, and IESO-NS-related expenses. NS Power argues that such analysis is not feasible due to uncertainties and complexities in estimating revenue requirements. The Board previously questioned the usefulness of this information and may reconsider based on recent developments and the Energy and Regulatory Boards Act.

6.4 NS Power's Position About Rate Affordability and Capital Projects [183] The concept of affordability has been raised in different ways, when addressing concerns about the significant costs of the Five-Year Reliability Plan, and the 202...

AI summary NS Power argues that affordability should be assessed within the GRA framework, emphasizing that capital expenditures are necessary and prudent if they align with performance standards and least cost principles. The Board acknowledges the need for flexibility in capital programs but warns against deferring maintenance, citing risks to rate impacts.

6.5 Need to Consider Rate Impacts and A Potential Framework [187] The Board still has some concerns about the utility of a rate impact analysis, where the full set of studies and data available in a GRA are not readily reproduced on an ann...

AI summary The Board acknowledges concerns about the utility of rate impact analysis but emphasizes its importance in the context of increasing capital expenditures for decarbonization and reliability. It directs NS Power to provide a rate impact analysis for the 2027 ACE Plan, focusing on the impact of capital expenditures on rates for 2028-2030. The analysis should be done by rate class and include proposed ACE Plan capital expenditures, excluding the NB Intertie project.

ant cost categories. For Routines using internal labour the information should also include a breakdown of labour costs (regular and overtime labour, budgeted costs and hours, actual costs and hours). - 3. NS Power must provide sufficient...

AI summary The document outlines requirements for NS Power to provide detailed cost breakdowns and explanations for changes in routine expenditures, including labor, materials, and contractor costs. It also mandates monitoring of planned versus reactive replacement activities and the inclusion of Routine Expenditure provisions in the 2028 ACE Plan.

- 1. NS Power will provide Designated Confidential Information, as defined herein, to the Designated Recipient as defined in the undertaking to which this schedule is attached. - 2. Designated Confidential Information shall consist of mate...

AI summary NS Power outlines the types of information designated as confidential in its 2026 ACE Plan filing, including engineering studies, commercial quotations, and proprietary third-party information, which are confirmed as confidential by the Nova Scotia Energy Board.

in how forecast volumes and costs were developed for each routine. Provide actual expenditure for projects that would be classified under each new routine for 2022-2025. D061 and D062 – New Customers 1. Please update the attachment provide...

AI summary The document requests updated financial and operational data for new customer routines, including actual expenditures and forecasts from 2022 to 2026, and a comparison of capital project funding sources and forecasting methodologies. It also asks for an explanation of budget variances and a table comparing IRP and ACE Plan spending per unit.

n Work Plan by Region[[2]](#footnote-3) Figure 34: 2026 Distribution Corridor Widening with Managed Rights-of-Way (ROW)[[3]](#footnote-4) 1. What is the total amount of investment planned for 2026 for the ROW projects shown in Figure 33 an...

AI summary The text presents a series of questions related to NS Power's 2026 investment plans for distribution corridor widening and managed rights-of-way (ROW), including the share of investment relative to total capital projects, reliability improvements, customer classes impacted, and methodology for forecasting customer changes.

1 2 3 Given the noted additional scope items, and stated potential impact to the "direction" and "timeline" for this project, does NSPI anticipate filing a scope change application for the C0021835 - IT – CIS Replacement project? If so, wh...

AI summary The text includes regulatory requests related to a scope change application for a project and an affordability analysis for the 2026 ACE Plan. It references the Five-Year Reliability Plan Update and asks NSPI to provide details about projects, their budgets, and reliability enhancements.

Request IR-2: For each generation project included in the ACE 2026 having project total $5M and above, please provide: a) The primary purpose of the project (e.g., life-extension, reliability, compliance, capacity, energy, operational flex...

AI summary Request IR-2 asks for detailed information on generation projects in the ACE 2026 with a total cost of $5M or more, including their purpose, impact on asset life, LCOE, comparison with alternatives, planning framework assessment, and effects on rate base and revenue requirements.

Power to contain costs and mitigate the increase in project costs and associated rate impacts. For each generation project included in the ACE 2026 having project total $5M and above, please provide: 1. The primary purpose of the project (...

AI summary The document requests detailed information on generation projects included in the ACE 2026 with a total cost of $5M or more, focusing on their purpose, cost, impact on rate base, and alignment with least-cost planning. It emphasizes the need for transparency in project evaluation and cost containment.

6. The expected impact of the project on rate base and annual revenue requirement over the remaining and extended life of the asset. Reference: Exhibit N-1: Application - Section 8.0 Distribution 1. Please explain how Distribution capital...

AI summary The document requests detailed explanations and justifications related to NS Power's distribution capital planning, spending, and cost-containment measures. It focuses on linking capital planning to customer additions, benchmarking with other utilities, and implementing cost controls to manage rate base and revenue requirements.

34 Request IR-15: 35 36 With respect to Appendix I, CIs for transmission replacement and upgrade projects C0080110 and 37 C0080109, and 2024 ACE Plan Rebuttal Evidence (p. 22): 38 39 (a) Please confirm that NS Power's policy remains, "In t...

AI summary The proceeding requests Nova Scotia Power to confirm its policy on risk registers for transmission projects, explain the absence of risk registers for projects over budget, and justify the use of contingency budgets over ATO filings. It also asks about the impact of increased replacement structures on procurement and the Board's concerns regarding contingency amounts.

ghts; and 4. External factors driving costs, including supply chain issues, shifts in the regular/overtime labour breakdown due to other utility programs. 2. In the referenced RIR, NS Power stated: NS Power has data on single-family and mu...

AI summary The text discusses NS Power's data tracking challenges, specifically regarding residential additions and internal work orders. It requests information on changes to work orders since 2025, updates on a continuous improvement initiative, and plans for future system upgrades.

1690 Hollis Street, Joseph Howe Building, 11th Floor, PO Box 2664, Halifax, Nova Scotia, Canada B3J 3P7 April 15, 2026 Nova Scotia Energy Board 3rd Floor, Summit Place 1601 Lower Water Street Halifax, Nova Scotia B3J 3P6 RE: Interim Guidan...

AI summary The Minister of Nova Scotia emphasizes that the IESO must lead competitive procurements for new transmission and electricity system resources, ensuring bulk system adequacy, reliability, and cost-effective solutions for ratepayers.

Summary - 15 Ratepayers are facing significant financial hardships, both from electricity cost increases and - 16 general inflation as well as external pressures. The SBA respectfully submits that all of NS - 17 Power's expenditures should...

AI summary The SBA highlights the financial hardships faced by ratepayers due to rising electricity costs and inflation, urging NS Power to ensure cost savings through efficient management. It notes that a matter before the Board reviewing NS Power's 5-year Reliability Plan may assist in evaluating improvements.

B. Asset Growth vs. Declining Generation & Stagnant Capacity The most significant concern regarding NS Power's long-term capital strategy is the apparent divergence between growth in the utility's asset base and the underlying evolution of...

AI summary The document highlights a growing mismatch between NS Power's asset growth and declining generation capacity and stagnant energy sales. Key indicators show a significant drop in internal generation contribution and capacity utilization, while total assets have grown steadily. This raises concerns about whether ratepayers are receiving value for these investments and suggests the need for better alignment between capital expenditures and actual system needs.

Cumulative Ratepayer Impact A key consideration in assessing long-term regulatory prudence is the cumulative impact of utility investment decisions on customer affordability. Over the past two decades, NSPI's capital investment program has...

AI summary The document discusses the cumulative impact of NSPI's capital investments on electricity rates and affordability over the past 20 years. Despite limited growth in transmission infrastructure and generation capacity, average customer rates have increased significantly. The Department urges the Board to evaluate the affordability and value of future capital expenditures.

Distribution The Distribution portfolio demonstrates some of the most significant cumulative escalation levels within the reviewed sample. Of particular concern is the extent to which routine and recurring - programs have expanded into ver...

AI summary The Distribution portfolio shows significant capital expenditure increases without clear justification related to customer growth or reliability outcomes. Items such as Provincial Distribution ROW and New Customers Residential Routine have seen massive escalations, raising concerns about prudence, forecasting assumptions, and the classification of expenses as capital versus operating costs.

Request to the Board - The review of projects contained in Appendix A representing projects with escalation levels of - 50% or greater indicates significant increases across Generation, Transmission, Distribution, - Hydro, and General Plan...

AI summary The document requests the Board to conduct enhanced scrutiny of projects with significant cost escalations across various categories. It argues that these increases are not solely due to external factors but reflect broader issues like scope expansion and misclassification of expenses. The Department recommends procedural reviews to ensure proper governance and ratepayer protection.

The Actual 2025 Spend confirmed in Undertaking U-5 In 2025, the first year of the Reliability Plan, the investment level was $206 million. NSPI confirmed that it did, in fact, invest the $206 million both within the Update,[11](#page-2-8)...

AI summary In 2025, NSPI confirmed it invested $206 million as part of the Reliability Plan, but the actual spend was $179.4 million, an underspend of over $17.2 million and a total variance of about $26.6 million from the planned amount. This discrepancy is discussed in the context of the 2025 Annual Capital Expenditure Plan and the response to Undertaking U-5.

No Rate Impact or Affordability Analysis NSPI confirmed that when developing its capital program, "specific rate impacts are not calculated" at the program level.[57](#page-15-0) Instead, rate impacts related to the capital program are sai...

AI summary NSPI stated that rate impacts are not calculated at the program level but included in the GRA. Affordability considerations are addressed at the individual asset level and through the GRA process. However, there is no evidence of a rate impact assessment or affordability analysis for the Reliability Plan or its Year 2 implementation.

ACE Plan is individually justified based on current condition assessments; NS Power does not work backward from predetermined spending targets. Where condition assessments indicate that projects can safely be deferred or require revised sc...

AI summary NS Power's 2026 ACE Plan is based on a risk-based, bottom-up approach to capital planning, ensuring investments align with asset condition and statutory obligations. Affordability is addressed through least-cost risk mitigation and the General Rate Application process. NS Power opposes caps on capital expenditures, arguing they could compromise service reliability and safety.

7.0 CONCLUSION - Consistent with prior ACE Plans, NS Power's 2026 ACE Plan reflects the Company's focus on - providing customers with safe and reliable electrical service in the most cost-effective manner - possible. NS Power is confident...

AI summary NS Power's 2026 ACE Plan aligns with prior plans and emphasizes cost-effective, reliable service. The company asserts that its responses to information requests, rebuttal evidence, and hearing inputs address the Wilson Evidence and provide the NSEB with necessary information to approve the plan. NS Power requests the Board's approval of the plan and revised CEJC.

General Rate Applications (GRA), where a complete and integrated set of assumptions is applied to determine rates by class based on a full revenue requirement framework. These studies are significant

AI summary The document discusses General Rate Applications (GRA) and their role in determining rates by class using a full revenue requirement framework, highlighting their significance in the regulatory process.

6.0 CONCLUSION In this proceeding, NS Power has demonstrated that the investments proposed in the 2026 ACE Plan are prudent, necessary, and aligned with the Company's statutory obligation to provide safe and adequate service to customers....

AI summary NS Power argues that the 2026 ACE Plan investments are prudent and necessary, aligning with statutory obligations. They claim the investments are appropriately developed and assessed, with no material gaps in the regulatory framework. NS Power emphasizes affordability and the need to maintain safe, reliable service while keeping rates low. They recommend the Board approve the plan and reject additional directives.

A Direction for Comprehensive Reporting Is Warranted The Industrial Group submits that the Board should direct NSPI to file, alongside each future ACE Plan, a ratepayer cost exposure reporting that includes: - NSPI's ACE capital program (a...

AI summary The Industrial Group (IG) argues that the Board should require NSPI to provide detailed ratepayer cost exposure reports with each future ACE Plan, including capital programs, reliability intertie costs, and IESO-NS-related costs. NS Power opposes this, citing the complexity and uncertainty in estimating such impacts. The Board previously questioned the usefulness of including revenue requirement estimates in ACE Plans and may revisit the issue in light of new developments and the Energy and Regulatory Boards Act.

6.4 NS Power's Position About Rate Affordability and Capital Projects [183] The concept of affordability has been raised in different ways, when addressing concerns about the significant costs of the Five-Year Reliability Plan, and the 202...

AI summary NS Power argues that affordability should be assessed in the GRA forum, emphasizing that capital expenditures are prudent and necessary if they meet performance standards and least cost principles. The Board acknowledges the need for flexibility in capital programs but warns against deferring maintenance to avoid rate impacts.

6.5 Need to Consider Rate Impacts and A Potential Framework [187] The Board still has some concerns about the utility of a rate impact analysis, where the full set of studies and data available in a GRA are not readily reproduced on an ann...

AI summary The Board acknowledges concerns about the utility of rate impact analysis but believes it could provide useful context for the Five-Year Reliability Plan and annual ACE Plans. It directs NS Power to provide a rate impact analysis for the 2027 ACE Plan, focusing on the projected impact of capital expenditures on rates for 2028–2030. The analysis should address proposed ACE Plan capital expenditures, excluding the NB Intertie project, which is already approved.

ant cost categories. For Routines using internal labour the information should also include a breakdown of labour costs (regular and overtime labour, budgeted costs and hours, actual costs and hours). - 3. NS Power must provide sufficient...

AI summary The document outlines requirements for NS Power to provide detailed cost breakdowns and explanations for changes in routine expenditures, including labor, materials, and contractor costs, and to assess the use of existing systems for monitoring productivity and cost trends. It also mandates the inclusion of Routine Expenditure provisions in the stakeholder review for the 2028 ACE Plan.

I N D E X O F P R O C E E D I N G S April 21, 2026 PAGE NO. 14 appending deadlines relating to environmental emissions 15 legislation, we must also deal with the significant cost 16 burden faced by ratepayers, both with respect to energy 1...

AI summary The text discusses the financial and regulatory challenges related to ratepayer costs, including the impact of the General Rate Application and anticipated Fee Recovery Application from IESO Nova Scotia. It emphasizes the need for careful assessment of expenditures and the importance of ensuring that investments lead to reliability and resiliency without increasing the burden on ratepayers.

NS POWER PANEL 541 Questions, (Chair) 1 put the page number on this one. So it's IR-182, Board 2 IR-182. Okay. And it's (a). 3 BY THE CHAIR: 4 And the question was: Q. 5 6 7 8 9 Given that the Plan is projected to cost approximately $1.3 [...

AI summary The Chair of the NS Power Panel 541 questions whether NS Power has calculated the impact on rates from the Five-Year Reliability Plan, which is projected to cost approximately $1.3 billion over five years. The answer indicates that the investment is included in the General Rate Application (GRA) before the NSEB in matter M12451 and that the plan follows a least-cost approach to meet performance standards by 2029.