Topic:"Utility Governance" in M12412

="page-5-2"> 2 More Access to Energy Act , SNS 2024, c 2, Sch B; See Section 7. 3 More Access to Energy Act , SNS 2024, c 2, Sch B, Section 2. - 1 f. to provide for a phased transition of the system operator from Nova Scotia Power 2 Incorp...

AI summary The More Access to Energy Act mandates a phased transition from Nova Scotia Power Inc. to the Nova Scotia Independent Energy System Operator (NSIESO), outlining NSIESO's responsibilities, including grid reliability, market coordination, power system planning, and ensuring bulk electricity system adequacy.

17 Table 6: FTE Positions under the Administration Salaries and Wages Cost Category Positions Description Vice President of Regulatory Compliance, & Stakeholder Engagement/Chief Legal Counsel This senior leadership position is responsible...

AI summary The text presents Table 6, which outlines FTE positions under the Administration Salaries and Wages Cost Category. It describes roles such as the Vice President of Regulatory Compliance, the EA/Board Secretary, and the HR Manager, highlighting their responsibilities in regulatory compliance, administrative support, and human resources management.

1 Request IR - 3 - 2 Reference: Exhibit A-1 (page 5 of 36, lines 23-26)..."The NSIESO intends to pursue a phased - 3 transition of the System Operator functions from NSPI to the NSIESO, commencing with the - 4 energy procurement, system pl...

AI summary The NSIESO plans a phased transition of System Operator functions from NSPI, starting with energy procurement, planning, and transmission interconnection in Q4 2025, followed by grid and dispatch operations in Q2 2027. The request seeks details on the full transition plan for Q2 2027.

5.0 CONFLICT OF INTEREST - 5.01 The IESO shall avoid situations that might cause a conflict of interest and shall immediately notify the Province if any such conflict does or might appear to arise as it relates to the Transition of Work in...

AI summary The IESO must avoid conflicts of interest related to the Transition of Work in Progress, notify the Province if any arise, adhere to the Code of Conduct for Public Servants, and develop its own conflict-of-interest code. The IESO confirms compliance with the public servant code available online.

Specifically: - System operator technical advisory services will offer essential support as the IESO builds its operational plan and coordinates with Nova Scotia Power to transition system operator functions during its startup phase. - Adv...

AI summary The IESO and Nova Scotia Power are collaborating on transitioning system operator functions, with advisory services and energy procurement processes tied to the 2030 Clean Power Plan. Advisory services support the IESO's operational planning and procurement process during its startup phase.

5.0 CONFLICT OF INTEREST - 5.01 The IESO shall avoid situations that might cause a conflict of interest and shall immediately notify the Province if any such conflict does or might appear to arise as it relates to the Startup Phase. - 5.02...

AI summary The IESO must avoid conflicts of interest during the Startup Phase and notify the Province if any arise. It must adhere to the Code of Conduct for Public Servants and develop its own code of conduct to address conflicts of interest.

Request IR - 37 - Reference: Exhibit B-2 (page 16 of 36, lines 14-16)…" The following table outlines the roles - expected to be filled within the Administration Salaries and Wages cost category, and are subject - to change as the NSIESO bu...

AI summary Request IR-37 seeks information on the NSIESO's organizational structure, including a staffing chart, the basis for the structure, and comparisons to industry best practices and other jurisdictions. The NSIESO's planning is subject to change as its management team develops.

1. Introduction This Terms of Reference ("ToR") outlines the framework for cooperation between the Nova Scotia Independent Energy System Operator ("IESO Nova Scotia") and Nova Scotia Power Incorporated ("NS Power")(together the "Parties" a...

AI summary The Terms of Reference outline the transition of system operator functions from NS Power to IESO Nova Scotia under the More Access to Energy Act, establishing a Joint Transition Committee (JTC) with equal representation to oversee the process, review plans, resolve disputes, and engage experts.

5. Scope of Work The JTC will identify and coordinate activities necessary to complete transition of system operator functions to IESO Nova Scotia. This may include: - Sharing relevant information to support IESO Nova Scotia's assumption o...

AI summary The JTC will coordinate the transition of system operator functions to IESO Nova Scotia, including sharing information, coordinating timelines, clarifying roles, identifying facilities, and addressing operational impacts. Each party must participate in good faith within legal and operational constraints.

- a) The NSIESO states: "For the purpose of preparing its expenditure forecast, the NSIESO has assumed a start date of September 1, 2025, for the CEO, and October 1, 2025, for the balance of the employees." The Board notes that the CEO was...

AI summary The NSIESO has provided a timeline for employee onboarding, with the CEO starting in mid-August and the rest by October 1, 2025. The Board is asking if this timeline is on track and the financial impacts of any deviations. Additionally, the Board requests an organizational chart of employees as of March 31, 2026, assuming full FTEs from the application.

Response IR – 13 a) The CEO started on August 18th , 2025. The planning for Phase 1 and Phase 2 continues to evolve as do the transition plans in order to maintain flexibility. The roles expected to be filled are subject to change as the N...

AI summary The CEO's start date is August 18, 2025, with ongoing planning for Phase 1 and 2, and evolving transition plans. NSIESO's organizational structure and roles remain flexible, with nine new positions to be filled between November 3 and December 1, 2025, contingent on candidate availability. Financial impacts of delayed hiring will be addressed through Net OM&A and Variance Deferral Accounts.

NON-CONFIDENTIAL The Phase 1 transitioning NS Power non-union employees will begin to transition to the NSIESO as transition plans are confirmed. The current target date for the transfer of Phase 1 roles is December 1, 2025. Under the More...

AI summary The transition of non-union NS Power employees to NSIESO is planned for December 1, 2025, under the More Access to Energy Act , s. 40. NSIESO must offer employment, but employees are not obligated to accept. Recruitment delays may occur if roles remain vacant. The organization chart is evolving and will be updated as NSIESO builds Phase 1, with recruitment for 12–14 roles expected to begin by January 2026.

1.1 Purpose and scope - Doane Grant Thornton LLP ("we", "us", "our", or "Doane Grant Thornton") has been engaged by the Nova Scotia - Energy Board ("NSEB" or the "Board"). The purpose of our engagement was to present our observations, find...

AI summary Doane Grant Thornton LLP was engaged by the Nova Scotia Energy Board to review the Nova Scotia Independent Energy System Operator's (NSIESO) application for expenditure and revenue approval. The review focused on the test year budget, benchmarking of administrative salaries, organizational structure, and deferral account reasonableness for the period ending March 31, 2026 (M12412).

2 2.1 Good Utility Practice overview - 3 Good Utility Practice ("GUP") serves as a foundational framework, including commonly accepted techniques, - 4 processes, and standards used across the utility industry to ensure effective, safe, and...

AI summary Good Utility Practice (GUP) is a foundational framework ensuring safe, reliable utility operations across electricity, water, and natural gas sectors. It guides decision-making, system planning, asset management, and emergency response, emphasizing adherence to regulations and operational excellence to minimize risks and maintain public trust.

ime zones or more. - o The Board will initially have 2 standing committees; the Human Resources and Governance Committee, and the Audit and Risk Committee. The Board on the recommendation of the Chair

AI summary The Nova Scotia Energy Board (NSEB) and Nova Scotia Independent Energy System Operator (NSIESO) are establishing two initial standing committees: the Human Resources and Governance Committee, and the Audit and Risk Committee. The Board will form these committees based on the Chair's recommendation.

6. Organizational structure and transition plan

AI summary The section outlines the organizational structure and transition plan, though no specific details or content are provided in the text. The heading indicates the focus of the regulatory proceeding on these aspects.

6.1 Scope - Review and analyze the organizational structure and size in comparison to the proposed first-year work plan. - 6.2 Procedures - Our review of NSIESO's organizational structure included the following specific procedures: - Revie...

AI summary The document outlines the review of NSIESO's organizational structure, comparing it to other entities and analyzing its transition from NSPI. Key phases include system planning and procurement transfer by Q4 2025, followed by real-time dispatch operations transfer by Q2 2027.

6.3.1.3 Transition committee - 18 Per the Application, to implement the transition, the NSIESO and NSPI are in the process of developing a Transition - 19 Committee to facilitate coordination between the two organizations. Further specific...

AI summary The document outlines the formation of a Joint Transition Committee between NSIESO and NSPI to coordinate the transition. The committee, structured with 8 core members and additional experts, has informal meetings but lacks formal agendas or minutes. Its duties include oversight, dispute resolution, and engaging experts. No Transfer Orders under the Act have been issued yet.

13 6.3.1.5 NSIESO organizational chart - 14 The organizational chart attached in Appendix B has been provided by the NSIESO in their response to NSEB-IR- - 15 13. However, the NSIESO notes that the roles outlined in the Appendix B will con...

AI summary The NSIESO provided an organizational chart in Appendix B as part of their response to NSEB-IR-13. The chart reflects current roles as of October 2025 but will evolve during Phase 1 and be revisited regularly to ensure alignment with organizational needs. A summary of the proposed executive team is also outlined.

6.3.3 Comparison of executive structure and responsibility areas - While we recognize that an expert is to be engaged for review of the technical FTE level, we have noted that the - following core areas are similar and consistent between t...

AI summary The NSIESO's executive structure and responsibility areas are compared to other Canadian ISOs, highlighting similarities in core functions like planning, market operations, and IT. However, the NSIESO's proposed 45 FTEs are smaller than other ISOs (e.g., IESO, AESO), attributed to Nova Scotia's grid size. The board structure aligns with other ISOs but differs in scale.

6.4 Conclusion - While our review has not covered a detailed analysis at the organizational FTE level, we are able to offer the following observations regarding the NSIESO's proposed organizational structure: - The executive functions and...

AI summary The NSIESO's proposed organizational structure is deemed comparable to other Canadian ISOs in terms of executive functions and governance. The structure aligns with budgeted needs as outlined in Section 4. A reference is made to the Alberta Electric System Operator's board structure.

7.3.1.2.1 Purpose and functionality

AI summary The section '7.3.1.2.1 Purpose and functionality' outlines the objectives and operational roles of entities involved in Nova Scotia's energy regulation. Key stakeholders include the Nova Scotia Energy Board (NSEB) and Nova Scotia Independent Energy System Operator (NSIESO), with references to broader energy infrastructure and regulatory frameworks.

Doane Grant Thornton Evidence DGT's submission covers several areas of the Application and includes comments and recommendations regarding the test year budget, benchmarking administration salaries and wages, organizational structure, and...

AI summary DGT's submission addresses the Application's test year budget, salary benchmarking, organizational structure, and Net OM&A Deferral Account. IESO Nova Scotia agrees with many recommendations but notes the need to consider its early developmental stage. DGT recommends setting cost recovery thresholds for the Net OM&A Deferral Account to prevent uncontrolled overruns, which IESO acknowledges but emphasizes ongoing implementation plans for 2026.

3.1 Proposed Organizational Structure - [16] As a newly constituted corporation, IESO Nova Scotia had to determine its organizational structure and staffing needs. The forecast revenue requirement includes salaries and benefits for 36 empl...

AI summary IESO Nova Scotia's proposed organizational structure includes 36 employees, with 13 new executive/administrative roles and 23 non-unionized technical roles transitioning from NS Power. Doane Grant Thornton reviewed the structure, finding it comparable to other Canadian ISOs and aligned with budgeted expenses. No intervenors raised concerns about the structure.

3.1.1 Findings [20] The above discussion about the IESO's organizational structure is not intended as the Board's review and endorsement of the governance-related activities of the IESO. That is the sole purview of IESO Nova Scotia's board...

AI summary The Board clarifies its review of the IESO's organizational structure focuses solely on cost reasonableness, not governance. It agrees with Doane Grant Thornton's analysis, finding the structure aligns with Canadian ISOs and budgeted needs.

3.6 Reporting on the Transition from NS Power [78] IESO Nova Scotia stated that it will assume the system operator responsibilities under the More Access to Energy Act in a two-phased transition. In the first phase of the transition, it wi...

AI summary IESO Nova Scotia outlined a two-phase transition from NS Power, with Phase 1 (system planning, procurement) to begin in Q4 2025 and Phase 2 (real-time dispatch) in Q2 2027. The IESO proposed monthly transition reports, but the Industrial Group requested expanded details on costs and milestones. The IESO argued that Phase 1 was largely complete and that cost reporting would increase regulatory burden.

3.6.1 Findings [84] The Board agrees that reporting should occur to update the Board and interested parties on the status of the transition, generally, including the transfer of responsibilities from NS Power to the IESO and various initia...

AI summary The Board agrees that quarterly reports from IESO Nova Scotia are necessary to update stakeholders on the transition from NS Power to the IESO, including progress on the IRP, procurement, and rate recovery mechanisms. Reports must cover transition phases, financial controls, and material operational changes, starting May 15, 2026, with Phase 2 of the transition expected in Q2 2027.

Request IR-7: - Reference: Exhibit N-1(i), p. 8 of 36, lines 1-6 - a) Please confirm the status of the Transition Committee which includes representatives from the NSIESO and NS Power. - b) Please list the membership of the Transition Comm...

AI summary Request IR-7 seeks information about the Transition Committee's status, membership, Terms of Reference, and whether Terms of Reference will be prepared. Involves the NSIESO and NS Power.

Request IR-13: - Reference: Exhibit N-1(i), p. 14 of 36 - a) The NSIESO states: "For the purpose of preparing its expenditure forecast, the NSIESO has assumed a start date of September 1, 2025, for the CEO, and October 1, 2025, for the bal...

AI summary The NSIESO's expenditure forecast assumes employee onboarding by October 1, 2025, but the Board questions if this is feasible given the CEO's appointment in mid-August. It requests clarification on onboarding timelines and financial impacts, as well as an organizational chart for March 31, 2026.

pecific guidelines and accounting policies describing the operation of the Deferral and Variance Account. This must be filed no later than the IESO's application for its 2027/2028 revenue requirement. [7] No later than its next revenue req...

AI summary The Board directs IESO Nova Scotia to submit guidelines, financial controls, and quarterly reports, including updates on system operator transition phases, staffing, and compliance. Minimum filing requirements include audited statements, projections, and a business plan.

3.1 Proposed Organizational Structure - [16] As a newly constituted corporation, IESO Nova Scotia had to determine its organizational structure and staffing needs. The forecast revenue requirement includes salaries and benefits for 36 empl...

AI summary IESO Nova Scotia's proposed organizational structure includes 36 employees, with 13 new executive/administrative roles and 23 technical roles transitioning from NS Power. Doane Grant Thornton reviewed the structure, finding it comparable to other Canadian ISOs and aligned with budgeted needs. No intervenors raised concerns about the structure.

3.1.1 Findings [20] The above discussion about the IESO's organizational structure is not intended as the Board's review and endorsement of the governance-related activities of the IESO. That is the sole purview of IESO Nova Scotia's board...

AI summary The Board agrees with Doane Grant Thornton's assessment that IESO Nova Scotia's organizational structure and associated costs are reasonable and consistent with Canadian ISOs. The review focuses on cost reasonableness, not governance, which remains under the IESO's board's purview per the More Access to Energy Act .

3.6.1 Findings [84] The Board agrees that reporting should occur to update the Board and interested parties on the status of the transition, generally, including the transfer of responsibilities from NS Power to the IESO and various initia...

AI summary The NSEB mandates quarterly reporting by IESO Nova Scotia starting May 15, 2026, to update the Board and stakeholders on the transition from NS Power, including rate recovery mechanisms, financial controls, and system operator function transfers. Reports must address new costs, operational changes, and progress on minimum filing requirements, with Phase 2 grid operations expected by Q2 2027.