Topic:"Revenue Requirement" in M13133

NS Power Application for Financing Order to Reduce Costs for Customers Redacted 1 recovery of these costs in exchange for the overall net present value benefit to customers and stable 2 rates that will assist in the energy transition. 3 4...

AI summary NS Power is applying for a financing order to securitize stranded FAM balances, which is expected to result in $265.6 million in customer savings and reduce the number of regulatory proceedings. This approach is supported by market responses, such as lower bond yields, and is discussed in the context of the 2026-2027 GRA Decision.

5 6.4 IESO-NS Deferral 6 - 7 The total 2027 revenue requirement associated with the securitization of the IESO-NS Deferral is - 8 allocated to customer classes based on each class's forecast 2027 share of sales. This methodology - 9 is con...

AI summary The text discusses the allocation of the 2027 revenue requirement from the securitization of the IESO-NS Deferral to customer classes based on their forecasted share of sales. It references Appendix H for detailed allocation information.

1 8.0 RATE IMPACT 2 - 3 The four securitization components have an estimated total revenue requirement of approximately - 4 $67.2 million in 2027. Recovery of the portion allocated to the FAM customer classes, totaling - 5 approximately $6...

AI summary The estimated total revenue requirement for the four securitization components is approximately $67.2 million in 2027, with an average rate increase of 3.3 percent for FAM customer classes. Appendix E provides detailed impacts on class revenues for each component.

20 Figure 1 – Increases in Class Revenues due to FAM Riders under Full Recovery 2027 FAM Riders – Percentage Increase Customer Class AA BA FAM AA/BA Domestic Service 2.4 0.1 2.6 Small General 4.3 0.7 5.0 General 5.9 7.8 13.7 Large General...

AI summary The document presents a table showing the percentage increase in class revenues due to FAM Riders under full recovery for various customer classes in 2027. The data highlights significant increases across different categories, including Domestic Service, General, and Large Industrial.

Appendix C: 2027 FAM AA/BA 2027 FAM Riders – Percentage Increase Customer Class AA BA FAM AA/BA Fuel & Purchased Power Securitization Rider Total Large General 0.0 0.0 0.0 1.6 1.6 Small Industrial 0.0 0.0 0.0 0.9 0.9 Medium Industrial 0.0...

AI summary This section outlines the repayment of $117 million to Invest Nova Scotia, likely related to a financial agreement or investment. The table presents the percentage increases for various customer classes under the 2027 FAM AA/BA riders, with the Fuel & Purchased Power Securitization Rider being the only non-zero value.

11 later years of the collection period to ensure the 10-year requirement is met. - 4 NS Power is proposing to maintain the BA Rider approved in M11393 such that the revenue 5 requirement required to fund the Invest Nova Scotia purchase co...

AI summary NS Power proposes maintaining the BA Rider approved in M11393 to collect the $117 million balance over a 10-year period as required by the Purchase and Sale of Customer Receivable Agreement with Invest Nova Scotia. Adjustments to the rider may be needed in the future.

9 Customer class 10 [Figure 7](#page-64-1) below presents the proposed collection of the 2027 revenue requirement associated with 11 the securitization of Fuel and Purchased Power balance. The total 2027 revenue requirement of 12 approxima...

AI summary The text discusses the proposed 2027 revenue requirement of approximately $14.1 million related to the securitization of Fuel and Purchased Power balance, including both the existing balance as of September 30, 2026, and the forecasted balance expected from October 1, 2026, to December 31, 2027.

Currency: CND FAM Calc Model KWh Sales Medium Industrial 37,335,017 41,514,345 43,106,375 44,516,203 36,261,431 39,902,149 44,355,994 41,457,147 44,178,138 37,132,664 38,642,181 38,638,022 487,039,667 FAM Calc Model KWh Sales Large Industr...

AI summary The document presents detailed tables with KWh sales data across various sectors and classes, including Medium Industrial, Large Industrial, Municipal, Unmetered, and BUTU, as well as revenue forecasts for GRLF and 1P-RTP. The data spans multiple months and years, likely used for regulatory analysis and forecasting.

ery - tight timelines that the Board's working under here. - INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS MS. RUBIN: We can send it - immediately. - MR. WILLIAMS: Okay. Any other - questions on what was intended to be the intro?...

AI summary The discussion focuses on the securitization of costs, including thermal assets and PHP deferral, as part of a bond transaction. The timeline for the financing transaction is highlighted, with deferred financing costs considered from May to November 2025. This is related to the General Rate Application and the GRA decision.

w you developed that monthly - number and how it compares to their budget that they - submitted. - MR. WILLETT: Yeah. Melissa, it's - Mike Willett here. - So those numbers are coming directly - from the IESO's application. So there was a l...

AI summary The discussion centers on revenue requirement collection mechanisms and fuel and purchase power costs, including the use of a Financial Accountability Mechanism (FAM) to address forecasted under-recoveries and the decision to issue a $1 billion bond to secure the best interest rates for customers.

ost benefit from an - NPV and revenue requirements perspective and, as you can - see there, every one of these components, including them, - provides a reduced revenue requirement to customers on a - net present value basis with the inclus...

AI summary The discussion outlines a structure where Nova Scotia Power forms a limited partnership to securitize regulatory assets, issuing bonds and loaning proceeds to Nova Scotia Power. This approach is designed to defer taxes and avoid adverse consequences for customers. Revenue requirements and NPV are considered, with the FAM cost reducing revenue requirements by over $20 million.

uld then use that money to pay bondholders. - The other pieces of the cashflow here - INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS relate to the intercompany loan, and so Nova Scotia Power - would pay interest to the limited part...

AI summary The discussion centers on the securitization process, focusing on the allocation of financing and ongoing costs to different components, and the treatment of revenue requirements for thermal assets using existing methodologies, including the 2027 total system coincident load factor and the 3 CP methodology for cost allocation.

2026. So this would be very - consistent and familiar to most on the call from normal - AA/BA applications. Attachment 1 to that appendix would - include the FAM calculation model. Attachment 2 and - Attachment 3 would be the calculations...

AI summary The document discusses the treatment of the FAM balance, including the calculation model and credit application to customer classes, as well as the deferral treatment of the PHP, which impacts revenue and cost responsibility in generation and transmission functions. Cost allocation methods, such as the 3CP and annual energy requirements, are also outlined.

ts for 2027 for each class is used to - allocate the various costs to customer classes. - For the transmission related portion - that's 100 percent demand and would utilize the 3 CP - methodology. - And the last component is the IESO - Nov...

AI summary The document discusses the allocation of costs to customer classes using the 3CP methodology and the IESO's approach for revenue requirement distribution. It also outlines rate impacts, including a 3.3% increase in 2027 for FAM classes and separate treatment of OATT Munis.

by the Board for collection); and - v. $12.5 million for Financing Costs for the issuance and administration of the Securitized Bonds, including Upfront Financing Costs and Ongoing Financing Costs. - The imposition of irrevocable Securitiz...

AI summary The document outlines the imposition of securitized surcharges to recover financing and securitization costs from customers, including a formula-based true-up mechanism for adjustments. NS Power estimates a 3.3% average rate increase for FAM customer classes in 2027 through an interim rider.

by the Board for collection); and - v. $12.5 million for Financing Costs for the issuance and administration of the Securitized Bonds, including Upfront Financing Costs and Ongoing Financing Costs. - The imposition of irrevocable Securitiz...

AI summary The document outlines the approval of a securitization transaction by the Board, including the imposition of Securitized Surcharges to recover costs from customers, the allocation of surcharges based on cost-of-service analysis, and the establishment of a True-up Mechanism for periodic adjustments. NS Power estimates a 3.3% average rate increase for FAM customer classes in 2027.

ved by the Board for collection); and - $12.5 million for Financing Costs for the issuance and administration of the Securitized Bonds, including Upfront Financing Costs and Ongoing Financing Costs. - The imposition of irrevocable Securiti...

AI summary The Nova Scotia Energy Board has approved a securitization transaction, including the imposition of a Securitized Surcharge to recover costs from customers. The surcharge will be set annually based on revenue requirements and sales forecasts, with a 3.3% average rate increase for FAM customer classes in 2027.

by the Board for collection); and - v. $12.5 million for Financing Costs for the issuance and administration of the Securitized Bonds, including Upfront Financing Costs and Ongoing Financing Costs. - The imposition of irrevocable Securitiz...

AI summary The document outlines the imposition of Securitized Surcharges to recover costs from all customers, the allocation based on cost-of-service analysis, and the approval of a True-up Mechanism for adjustments. NS Power estimates a 3.3% average rate increase for FAM customer classes in 2027.

by the Board for collection); and - v. $12.5 million for Financing Costs for the issuance and administration of the Securitized Bonds, including Upfront Financing Costs and Ongoing Financing Costs. - The imposition of irrevocable Securitiz...

AI summary Nova Scotia Power Incorporated seeks approval to securitize $1 billion in costs through a Securitization Cost Recovery Rider. The application includes the imposition of surcharges, allocation based on cost-of-service analysis, and a true-up mechanism. The Board is requested to allow the transaction, including exemptions and flexibility in setting terms for the securitized bonds.

by the Board for collection); and - v. $12.5 million for Financing Costs for the issuance and administration of the Securitized Bonds, including Upfront Financing Costs and Ongoing Financing Costs. - The imposition of irrevocable Securitiz...

AI summary Nova Scotia Power Incorporated seeks approval to securitize $1 billion in costs through a Securitization Cost Recovery Rider. The proposal includes the imposition of surcharges, a true-up mechanism for adjustments, and exemptions from certain regulations to facilitate the transaction.

Request IR-3: - Reference: Sections 2.0 and 3.1; Figure 3; Appendix A, Summary; Appendix B, "Balances to - Securitize". - Please reconcile the references to financing fees. Appendix A and Section 2.0 describe $12.5 - million as 1.25 percen...

AI summary The text requests clarification on discrepancies in financing fees referenced in Appendix A and Section 2.0 of Request IR-3, noting a difference between 1.25% and 1.35% of $1 billion. It asks for confirmation of the correct percentage, explanation of the discrepancy, identification of affected schedules, and whether other financial or accounting conclusions are impacted.

Request IR-4: Please refer to Exhibit N-1 the Application, Page 20 of 51, Figure 3, Estimate of Upfront Financing Costs which includes a Capital Reserve Account Funding of 0.5% of the principal amount of $12,500,000, or $5,000,000. This fi...

AI summary The text discusses the Capital Reserve Account Funding of $5,000,000, held in cash and classified as Restricted Cash, and seeks clarification on title ownership, access processes, and potential changes to the reserve amount over time.

Request IR-12: a) Please refer to Exhibit N-1, the Application, Page 22 of 51, Lines 12-13 and confirm that the statement "In future GRAs, NS Power will include a revenue credit of the servicing fees that NS Power collects as a servicer of...

AI summary The request seeks clarification on whether NS Power will reduce future revenue requirement applications by $500,000 annually while securitization bonds are in place, based on a statement in Exhibit N-1 of the Application.

10 Request IR-22: - 11 Reference: N-1, Application, Section 6.4, page 28, lines 7-10; and M13007, IESO-NS (IG) - 12 IR-1, Attachment 1 (Illustrative NS Power Bill Impact Model). "The total 2027 revenue requirement associated with the secur...

AI summary The document discusses the allocation methodology for the IESO-NS Deferral securitization revenue requirement, referencing the illustrative NS Power Bill Impact Model. It requests NSPI to confirm agreement with the fee recovery calculation and clarify IESO-NS's current responsibilities.

12 Reference: N-1 Application, page 21, Figure 4 and page 22, lines 4-13 "NS Power proposes an annual servicing fee of 0.05 percent of the initial principal amount of the Securitized Bonds to cover costs and expenses in servicing the Secur...

AI summary NS Power proposes a 0.05% annual servicing fee on Securitized Bonds to cover costs of servicing, which includes billing and collecting the Securitized Surcharge. The Board is asked to confirm if these functions overlap with current activities, whether the fee is justified, and how it will be accounted for in future GRAs.

7 Reference: N-1, Confidential Appendix B (Net Present Value Calculations). - 8 (a) Please provide, in Excel format, a version of Appendix B, for with and 9 without securitization benefits, that splits the NPV customer savings 10 benefits...

AI summary The text requests detailed explanations and modifications to Appendix B of a regulatory proceeding, focusing on securitization benefits, recovery periods, income tax assumptions, and cost deferrals. It asks for Excel versions of the appendix with and without securitization benefits, different recovery periods, and explanations of tax-related assumptions.

2 Request IR-28: - 3 (a) Absent securitization, please identify the recovery period NSPI would 4 expect to seek for each of: (i) the thermal asset balance; (ii) existing 5 unrecovered fuel and purchased power costs; (iii) forecast fuel and...

AI summary The request asks NSPI to identify recovery periods for various cost components, explain how these periods were determined, and provide financial impacts. It also asks for quantification of credit metric effects and supporting materials for credit-rating benefits from proposed securitization.

(NSUARB M13133) PHP Information Requests to NS Power 1 2 IR-1 Reference: Section 6.0, Cost of Service Treatment, page 26. "Consistent with the allocation methodologies applied to generation rate base, depreciation expense, and production O...

AI summary The document discusses the allocation methodology for the Demand-classified and Energy-classified portions of a component in the 2026/27 GRA, based on forecast 2027 shares of losses-adjusted coincident demand and annual energy requirements for customer classes.

Question: With respect to the Thermal Assets, please confirm that NS Power intends to calculate the annual class-specific revenue requirement of the Securitization Cost Recovery Rider each year based on the class's share of demand and ener...

AI summary The question asks NS Power to confirm whether it intends to calculate the annual class-specific revenue requirement of the Securitization Cost Recovery Rider based on the class's share of demand and energy expenses forecast for each year.

NOVA SCOTIA ENERGY BOARD IN THE MATTER OF: THE PUBLIC UTILITIES ACT - and - IN THE MATTER OF: THE FINANCING ORDERS AND SECURITIZED BONDS REGULATIONS -and- IN THE MATTER OF: AN APPLICATION by NOVA SCOTIA POWER INCORPORATED for approval of a...

AI summary Nova Scotia Power Inc. has applied for a Financing Order to securitize $1 billion in costs through a Securitization Cost Recovery Rider. Morrison Park Advisors has been requested to provide information by October 29, 2026, as part of the regulatory process.