Topic:"Revenue Requirement" in M12943

14 Response: - 15 TOLEU understands this question as raising the issue that a rate change, and specifically a 16 change of the FAM rate, which went into effect before approval of the past GRA, is not - 17 included in the "existing" cost of...

AI summary The Utility acknowledges that the FAM rate change was not included in the existing cost of power computation for the flow-through application. It argues that the 'existing' cost of power should be computed based on the same basis as the GRA, even if there were forecast variances or errors, to properly adjust retail rates to reflect new wholesale rates.

29 Response: - 30 (a) This is correct. The growth factor is estimated as the average of the approved forecast 31 growth rates from the GRA and the most current actual year over year growth rate. - 32 (b) In submitting this forecast for pur...

AI summary The Utility explains its approach to forecasting growth rates for a flow through application, balancing the need for accuracy with the desire to expedite rate adjustments. It uses a compromise method that averages approved growth rates from the GRA with recent actual data, avoiding a full forecast analysis which would be costly and time-consuming.

16 Response: 17 a) The Utility understands that year over year and over a longer term, consumption per 18 customer and individual load factors change due to many factors. The Utility has not 19 conducted any study to analyze such changes....

AI summary The Utility acknowledges that customer load factors change over time but has not conducted a study on these changes. For the GRA, recent billing data and forecasts were used to estimate load factors and customer growth, and TOLEU considers this approach reasonable for a few years, with a review planned in the next GRA.

July 3, 2026 119 Cumberland Street P.O. Box 129 Lunenburg, Nova Scotia Canada BOJ 2C0 Crystal Henwood Regulatory Affairs Officer/Clerk Nova Scotia Utility and Review Board PO Box 1692, Unit "M" Halifax, NS B3J 3S3 Dear Crystal Henwood: www...

AI summary The Town of Lunenburg Electric Utility (TOLEU) is requesting rate changes due to increased costs of purchased power from NSPI. The Board approved changes in M12451, effective April 30, 2026, with further changes effective January 1, 2027. TOLEU calculates an annualized revenue requirement of $185,071, resulting in a 2.30% weighted average rate increase for retail customers.

- 4. To forecast kWh purchases, the sales figure was increased by 4.63% to adjust for system losses. This is the average of recent years. - 5. For the forecast 2026/27 wholesale billing demand, the peak established in January 2026 was used...

AI summary The document details methods for forecasting kWh purchases, wholesale billing demand, and cost of power for 2026/27. It also highlights a $185,071 differential due to unit price changes and discusses the removal of a rate cap by TOLEU, which may affect revenue allocation and rate calculations.

- 5. For the forecast 2026/27 wholesale billing demand, the peak established in January 2026 was used. For calendar 2027, a historic load factor was applied. - 6. No allocation to supply sources was required, as TOLEU purchases 100% of its...

AI summary The document outlines the methodology for forecasting wholesale billing demand and computing the cost of power for 2026/27. It notes that TOLEU purchases all its supply from NSPI and that the cost differential is due to unit price changes. TOLEU also communicated its intention to remove a rate cap, which will affect revenue allocation and rate calculations.