Topic:"Revenue Requirement" in M12780

4.5 RATE AND BILL CONSIDERATIONS & RATE AND BILL IMPACT ANALYSIS (RBIA) FOR 2027–2031 E1's RBIA for the Preferred Plan demonstrates that participants in DSM benefit from bill savings. The reductions in energy use and demand achieved by par...

AI summary E1's Rate and Bill Impact Analysis (RBIA) for the Preferred Plan shows that DSM participants benefit from bill savings, with energy efficiency and demand response having positive effects on rates, and solar-PV having minimal impact. These findings are consistent with historical data from 2011 to 2026.

4.5.1 HISTORICAL RBIA - 24 E1's 2026 Historical RBIA indicates that ratepayers are already positioned to accrue aggregate bill savings - in excess of $2.5 billion between 2011 and 2041 as a result of past DSM activities between 2011 and 20...

AI summary E1's 2026 Historical RBIA indicates that past Demand-Side Management (DSM) activities between 2011 and 2026 will result in over $2.5 billion in aggregate bill savings for ratepayers from 2011 to 2041. Figure 5 illustrates average rate and bill impacts by rate class.

10. CONCLUSION - Based on the supporting Evidence and Appendices, E1 respectfully requests approval from the Energy - Board for the Preferred Plan and related Purchase Agreement with NS Power. 27 M06733, NSUARB Order, E1 2016–2018 DSM Plan...

AI summary E1 requests approval for the Preferred Plan and related Purchase Agreement with NS Power, emphasizing its affordability and cost-effectiveness. The plan includes energy savings, demand reduction, and system benefits, with a total investment of $318.75 million over five years. E1 claims the application meets the mandatory approval test under the Public Utilities Act.

13.4.4 AUDITED FINANCIAL STATEMENTS - E1 will retain the services of an external financial auditor to prepare audited annual financial statements. - These will be filed with the Energy Board in the second quarter of the following year, no...

AI summary E1 is required to prepare audited annual financial statements, filed with the Energy Board by April 28 in the second quarter of the following year. This follows the NSUARB's Revised Filing Dates letter from 2018, ensuring compliance with regulatory deadlines.

1 2. INTRODUCTION 2 The forward-looking RBIA is an analysis of the rate and bill impacts associated with the proposed DSM - 3 investment only. It compares the impacts of the proposed DSM investment to a scenario where there is - 4 no DSM i...

AI summary The document discusses the forward-looking and historical Rate and Bill Impact Analysis (RBIA) for Demand Side Management (DSM) investments in Nova Scotia. It highlights E1's proposal to eliminate historical RBIA filings except during DSM Plan Application years, and the NSUARB's acceptance of this approach. The analysis informs DSM investment levels and considers non-participant impacts.

DATE FILED: March 31, 2026 Page 8 of 8 Attachment 4: Results by Rate Class 2026 Historical Line# Rate and Bill Impacts of DSM on the Residential Class 1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2...

AI summary The document presents historical data on the rate and bill impacts of Demand Side Management (DSM) on the residential class from 2011 to 2055. It includes metrics such as net incremental energy savings, total annual energy savings, DSM expenditures, and participant activity over time.

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 revenue requirement process typically requires detailed cost data, but for the RBIA, only DSM-induced avoided costs are considered while keeping other costs constant. This simplifies analysis by focusing on directional and relative rate changes due to DSM programs.

3.1 Revenue Requirement The annual revenue requirements under the "With DSM" scenario are kept consistent with the test year information from the preceding rate cases. The non-FAM costs in the years following the 2014 test year from the 20...

AI summary The document outlines revenue requirements under 'With DSM' and 'No DSM' scenarios, adjusting costs for inflation and DSM impacts. FAM and non-FAM costs are modified based on test year data and avoided fuel costs. Historic cost true-ups are excluded due to minimal impact, lack of rigor, and complexity. The analysis uses data from 2011-2035 and references prior rate proceedings.

3.2.2 Classification of System Costs Costs within each area are classified into appropriate services. Generation and transmission costs are classified into energy and demand. Distribution costs are classified between demand and customer. R...

AI summary System costs are classified into energy, demand, and customer categories. Generation costs depend on unit type (baseload, peaking, environmental), with NS Power using a linear equation for classification. Transmission costs align with load factors, while distribution and retail costs remain static except for inflation. DSM impacts reclassification but does not alter customer numbers.

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 unit revenues for rate classes by providing blended revenues in cents per kWh, excluding customer charges for residential and small general classes. Factors like fuel cost adjustments, deferrals, rate smoothing, and revenue-to-cost ratios are excluded, but this has no material effect on relative changes between 'With DSM' and 'No DSM' cases.

Changes in total Revenue Requirement

AI summary The document discusses changes in total revenue requirement, a key metric in utility regulation, though specific details of the changes are not provided in the text. It is part of a regulatory proceeding in Nova Scotia.

4.8.3 Audited Financial Statements E1 will file audited annual financial statement in Q2 of the following year.

AI summary E1 is required to submit audited annual financial statements in Q2 of the following year as part of regulatory compliance under the Nova Scotia regulatory proceeding.

3.4 Re alization Rate 22

AI summary The document discusses the realization rate under section 3.4, which is a key metric in regulatory proceedings related to financial performance and cost recovery.

17 Table 1: Rate and Bill Impacts by Rate Class as a Result of 2027 - 2031 DSM Alternate Scenario Activities. Rate Class Rate Codes Average Rate Impact (%) Average Rate Impact (cents/kWh) Participant Average Bill Impact Non Participant Ave...

AI summary The table shows rate and bill impacts by rate class due to DSM activities from 2027 to 2031. E1 corrected an error in the Municipal rate class and emphasized the significance of savings in industrial customers, attributing lower percentage bill reductions to the concentration of industrial electricity use in complex processes.

BIA) for the same 2 purpose, to convert impacts between at meter and at generator. 5 14 3 i) Line losses are a direct input to the modelling software and are applied within the 4 modelling process. (b) Table 1 of this IR response provides...

AI summary The document discusses the impact of line losses on the 2026 General Rate Application (GRA) and the 2027–2031 DSM Plan. It notes that the estimated impact was calculated manually by EfficiencyOne using line loss factors from the 2014 COSS and the 2026 GRA, rather than through the Guidehouse ProCESS or DRSim model. This method is described as an approximation.

Benefits (Avoided Costs) In the societal test, the Energy Trust will include the following benefits: - 1. The value of the electrical and/or gas energy saved based on the avoided cost forecasts of the utilities whose customers are served b...

AI summary The Energy Trust includes benefits such as avoided energy costs, non-energy benefits, line losses, and natural gas capacity benefits in its societal test. These are based on forecasts from utilities and PUC approvals, with specific considerations for environmental and efficiency-related factors.

FUTURE TARGETS The 2015-2017 period has a savings target of 321,800 MWh, with an associated electricity savings resource acquisition budget of just over $130 million. The total budget for Efficiency Vermont's budget which included revenues...

AI summary The 2015-2017 period has a savings target of 321,800 MWh with a budget of over $130 million for electricity savings. Efficiency Vermont's total budget includes revenues from the efficiency charge, Regional Greenhouse Gas Initiative, ISO-NE Forward Capacity market, and performance fee, totaling $174 million.

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AI summary The text discusses the minimal review of late claim dates within the distributor late claims process, highlighting the need for proper identification and handling of late claims, including claim dates and submission ranges.

re po g a mo un an ( Ap lica tio n R eb s) ult ha mb ine d w ith in mb the ed in th ab le AR by in ad dit ion th bin ed ate s t t a nts e t to p res re co nu ers am ou us pr og ram e c om , , the Bo ard O ing R . O P M wi ll ed th e B rd b...

AI summary The text discusses the integration of application rebates within the table AR and the Board's role in reviewing and approving rebate programs. It highlights the importance of accurate reporting and the challenges in ensuring transparency and consistency in rebate calculations and program performance.

Net cash provided by operating activities decreased $801 million to $118 million in 2025 compared to $919 million in 2024. Operating cash flow before change in working capital decreased $538 million primarily due to increased fuel for gene...

AI summary Net cash from operating activities dropped significantly in 2025 compared to 2024, mainly due to increased fuel and purchased power costs, higher OM&G expenses, and changes in working capital, partially offset by increased electric revenues and tax recoveries.

Energy Consumption Risk NSPI is affected by demand for energy based on changing customer patterns due to fluctuations in a number of factors including general economic conditions, weather events, customers' focus on energy efficiency, chan...

AI summary NSPI faces energy consumption risk due to fluctuating customer demand influenced by economic conditions, weather, energy efficiency, and new technologies like solar and electric vehicles. Government policies promoting energy efficiency and distributed generation may also impact electricity demand, load, and revenue, potentially leading to a Material Adverse Effect on NSPI's operations and financials.

Q1 2025 compared to Q1 2024 Q1 2025 net income increased by $53 million compared to Q1 2024. The increase is due to decreased income tax expense due to recognition of clean technology investment tax credits in 2025 and increased operating...

AI summary Q1 2025 net income increased by $53 million compared to Q1 2024 due to decreased income tax expense from clean technology investment tax credits and increased operating revenues from higher sales volumes driven by favorable weather.

The following table sets forth selected annual consolidated financial information of the Company for the three years ended December 31: millions of dollars 2025 2024 2023 Operating revenues $ 1,944 $ 1,855 $ 1,671 Net income $ 141 $ 160 $...

AI summary The table presents the Company's annual consolidated financial information for the years 2023, 2024, and 2025, including operating revenues, net income, total assets, and total long-term debt.

General Rate Application ("GRA"): On April 30, 2026, the NSEB approved the GRA with changes effective on May 1, 2026. This results in an average annual customer rate increase of 1.2 per cent, and a further average annual increase of 2.5 pe...

AI summary The NSEB approved the GRA on April 30, 2026, effective May 1, 2026, with a 1.2% annual rate increase and a further 2.5% increase in 2027. The approved rates will increase annual revenue by $31 million in 2026 and $97 million in 2027. Fuel cost adjustments will be managed via the FAM process, and NSPI's ROE range remains at 8.75% to 9.25%. The depreciation study and storm rider were also approved, and NSPI plans to recover deferred costs through securitization, pending provincial support.

gly expressed within climate change framework, but they are currently not identical with climate missions. It is likely that disaster preparedness and climate resiliency will eventually be authorized 10 One of the almost universal adaptati...

AI summary The text discusses the need for adapting climate change frameworks in utility operations, particularly in calculating weather adjustments for energy use projections. Traditional methods based on historical weather data are becoming inadequate due to increasing temperatures, leading to challenges in evaluating weatherization programs and adjusting bills under revenue decoupling plans.

SELECTED CONSULTING EXPERIENCE - Impact Evaluation of Time-of-Use (TOU) Pilot. Assisted three utilities in Maryland in quantifying the residential load impacts over the first summer of a three-year TOU pricing pilot. Conducted econometrics...

AI summary The text details consulting experience related to energy rate design, demand response programs, and transmission network analysis. It includes evaluations of time-of-use pricing pilots, peak time rebate programs, net energy metering rate structures, and revenue cap mechanisms for electric transmission. Econometric models were used to assess customer behavior and productivity trends.

Response to Request IR-4: Refer to M12780, Exhibit E-24, SNS Evidence, Section 4.1, New Controllable Load is a Demand Response Resource, page 10 of 16, 2nd paragraph of this section. (a) Please provide the support for the statement "…at th...

AI summary The response to Request IR-4 discusses the growth of controllable residential load and the capacity value of devices like heat pumps and water heaters. It highlights that while these devices are being deployed through efficiency programs, their capacity value is not secured due to limited demand response enrollment, potentially leading to higher costs for ratepayers.

3. REQUESTED APPROVALS DSM costs are included in the revenue requirement that provides the basis for NB Power's proposed rate increase (NBEUB IR-116d on page 209). NB Power is requesting approval of its DSM Plan costs that do not qualify f...

AI summary NB Power is requesting approval for DSM Plan costs totaling $7.9 million in 2024/25 and $9.3 million in 2025/26, which are included in the revenue requirement for its proposed rate increase.

Sources: - Revenues for 2020/21, 2021/22, 2022/23 from NBEUB IR-123d, page 235. - Revenues for 2024/25, 2025/26, 2026/27 from NBEUB IR-116b, page 209. - Synapse estimated 2023/24 in-province revenues as the midpoint between 2022/23 and 202...

AI summary The text compares NB Power's proposed DSM spending with that of other Canadian and U.S. jurisdictions. NB Power's spending per capita is the third highest among Canadian provinces, and it proposes the highest low-income DSM spending as a percentage of total DSM spending. The data is based on the proposed 2024/25 DSM Plan and other sources.

Request IR-2: 2 Reference: E-23, Pages 11-13. 3 Preamble: Synapse concludes E1's Preferred Plan will deliver approximately 215 GWh 4 less in annual energy efficiency savings than the IRP assumes by 2031, and approximately 5 9 MW less in pe...

AI summary The document requests clarification from Synapse regarding the assumptions in the IRP's DSM savings, whether a RBIA was conducted to close the energy efficiency savings gap, and the methodology for allocating incremental investment. It also asks why NSPI's EE contributions were excluded from the comparison in Table 1.

4.2.2 FLEXIBILITY At PDF page 24 – 25, Brattle states: E-22, PDF page 31. Successful cost-effectiveness outcomes within the existing Board-approved framework can be achieved by designing proposed electrification programs around flexibility...

AI summary Brattle argues that E1's electrification programs should be redesigned to incorporate flexibility and load control to improve grid utilization and reduce costs and emissions. They suggest focusing on measures that include fossil-fuel displacement, weatherization, and targeted deployment in parts of the grid with headroom for distribution capacity.

4 The impact on non-participant bills for the "High DR" scenario was very close to the "Preferred 5 Plan" DR scenario that was ultimately presented by E1 but not exactly the same. E1 did not provide 6 a corresponding cost estimate for the...

AI summary The document compares different demand response (DR) and solar PV scenarios, noting minimal cost differences between the 'High DR' and 'Preferred Plan' DR scenarios. It also highlights a significant cost difference between the 'IRP DR' scenario and the preferred plan, with a total cost difference of $195.1 million. Supporting tables and workpapers are referenced.

Salary and compensation recoverable from rates, charges or fees - 3 For the purpose of subsection 64B(8) of the Act, Nova Scotia Power Incorporated may recover the following remuneration from its rates, charges or fees approved by the Boar...

AI summary The document outlines the maximum salary and compensation that Nova Scotia Power Incorporated may recover from its rates, charges, or fees, as approved by the Board, under subsection 64B(8) of the Act. This includes specific percentages for the Chief Executive Officer and other executives.

SELECTED CONSULTING EXPERIENCE - Impact Evaluation of Time-of-Use (TOU) Pilot. Assisted three utilities in Maryland in quantifying the residential load impacts over the first summer of a three-year TOU pricing pilot. Conducted econometrics...

AI summary The text outlines selected consulting experiences involving impact evaluations of time-of-use and peak time rebate programs, alternative rate design for net energy metering, and analysis of revenue cap mechanisms and transmission networks for ratemaking purposes.

1 Request IR-3: 2 Reference: E-24, Pages 9, and Table 2. In the illustrative example above, full DSM funding could forfeit up to roughly $18,675 in federal support that could otherwise be brought into Nova Scotia. A cost-share model, suppo...

AI summary The text discusses the potential for leveraging federal incentives like the Clean Technology Investment Tax Credit (ITC) and accelerated Capital Cost Allowance (CCA) to reduce the DSM contribution for industrial customers in Nova Scotia. It raises questions about eligibility, budget implications, and legal considerations for implementing a cost-share model.

- 26 (a) Does Synapse consider the IRP's DSM savings assumptions to be a 27 binding target or a directional planning assumption for the purposes of 28 evaluating E1's Preferred Plan? Please explain. 1 (b) Please confirm whether Synapse con...

AI summary The document includes questions about Synapse's evaluation of the Integrated Resource Plan (IRP) DSM savings assumptions, whether they are binding targets or directional planning assumptions, and requests for a Rate and Bill Impact Analysis (RBIA) for scenarios closing the energy efficiency savings gap. It also asks about the impact of lower DSM spending on electricity affordability and the recommended annual DSM investment level for the 2027–2031 Plan.