Nova Scotia Utility and Review Board. Sections 3-6

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1 Nova Scotia Utility and Review Board IN THE MATTER OF The Public Utilities Act, R.S.N.S. 1989, c.380, as amended - and - IN THE MATTER OF an Application by Nova Scotia Power Incorporated for Approval of Certain Revisions to its Rates, Charges and Regulations Sections 3-6 Section 3: FOR Financial Outlook RB Rate Base DA Depreciation & Amortization Section 4: Section 5: Section 6: OR Operating Revenues OE Operating Expenses CS Capital Structure PR Proposed Rates & Regulations Volume 3 of 3 May 2008 REDACTED

2 FOR/RB/DA/OR/OE/CS/PR List of Contents Sections 3 to 6 SECTION 3 FOR Financial Outlook FOR-01 Regulated Statement of Earnings FOR-02 Regulated Balance Sheet FOR-03 Regulated Statement of Retained Earnings FOR-04 Regulated Statement of Cash Flows FOR-05 Electric Revenue Details FOR-06 GWh Production and Sales FOR-07 Details of Fuel and Purchased Power FOR-08 Breakdown of OM&G Expenses FOR-09 Breakdown of Revenue Requirement and Rate Increase FOR-10 Average Capital and Cost of Capital FOR-11 Interest Charges FOR-12 Average Rate Base Assets FOR-13 Average Rate Base Charges / Credits FOR-14 Average Rate Base Materials / Supplies FOR-15 Average Rate Base Working Capital RB Rate Base RB-01 Plant Continuity Schedule RB Rate Base Details and Pension Expense DA Depreciation and Amortization Expense and Accumulated Reserves DA-01 Depreciation Rates DA-02 Accumulated Reserve for Depreciation DA-03 Amortization Expense DA-04 Asset Retirement Obligations (ARO) Reserve DATE FILED: May 27, 2008 Page 1 of 3

3 FOR/RB/DA/OR/OE/CS/PR SECTION 4 OR Operating Revenues OR-01 Proof of Revenues OR-02 Miscellaneous Revenues OR-03 Unbilled Revenues OR-04 Unregulated Revenues OR-05 Uncollectibles OR-06 Sharing Mechanisms OR-07 Deferred Cost Recovery Mechanisms OR-08 Sales of Natural Gas OE Operating Expenses OE-01A Fuel Forecast OE-01B Forecast of Fuel Burn Levels OE-01C Fuel Costs per MWh OE-01D History of Fossil Fuel Usage OE-01E Summary of Fuel Contracts OE-01F Fuel Procurement Manual OE-01G Fossil Fuel Projection to Replace Natural Gas OE-01H Solid Fuel Costs OE-01I Solid Fuel Transportation Details OE-01J Fuel Hedging Programs OE-01K Forecasted Solid Fuel Prices OE-01L Natural Gas Details OE-01M Fuel-Related Affiliate Transactions OE-01N Latest Fuel Supply / Transportation Studies OE-01O Export / Import Power Calculations OE-01P Force Majeure Issues OE-01Q Fuel for Resale Cost / Recoveries OE OM&G Details DATE FILED: May 27, 2008 Page 2 of 3

4 FOR/RB/DA/OR/OE/CS/PR OE OE-12 OE-13 Taxes Foreign Exchange Hedging Dues and Professional Association Charges SECTION 5 CS Capital Structure CS Capital Structure and Ratios SECTION 6 PR Proposed Rates and Regulations PR-01 Proposed Tariffs PR-02 Proposed Miscellaneous Charges PR-03 Proposed Regulation Changes DATE FILED: May 27, 2008 Page 3 of 3

5 FOR Requirement: Regulated statement of earnings. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1

6 REDACTED FOR-01 Attachment 1 Page 1 of 1

7 FOR Requirement: Regulated balance sheet. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1

8 REDACTED FOR-02 Attachment 1 Page 1 of 1

9 FOR Requirement: Regulated statement of retained earnings. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1

10 REDACTED FOR-03 Attachment 1 Page 1 of 1

11 FOR Requirement: Regulated statement of cash flows. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1

12 REDACTED FOR-04 Attachment 1 Page 1 of 1

13 FOR Requirement: Electric revenue details. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1

14 REDACTED FOR-05 Attachment 1 Page 1 of 1

15 FOR Requirement: GW/h production and sales. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1

16 REDACTED FOR-06 Attachment 1 Page 1 of 1

17 FOR Requirement: Details of Fuel and Purchased Power as per Appendix A, Table 8, P-886 filing. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1

18 REDACTED FOR-07 Attachment 1 Page 1 of 1

19 FOR Requirement: Operating, maintenance, and general expenses breakdown (by major component) in current and constant dollars for the test year and five historic years. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1

20 REDACTED FOR-08 Attachment 1 Page 1 of 1

21 FOR Requirement: Revenue requirement and rate increase breakdown. Submission: Please refer to Direct Evidence Section 11 Figure DATE FILED: May 27, 2008 Page 1 of 1

22 FOR Requirement: Estimated average capital and cost of capital. Submission: Please refer to Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1

23 FOR-10 Attachment 1 Page 1 of 1 Nova Scotia Power Inc. Estimated Average Capital and Cost of Capital Years Ended December 31st Millions of Dollars FOR Financial Outlook 1 (1) (2) (3) (4) (5) (6) (7) (8) Cost Cost Weighted Weighted Opening Closing Average Capital Capital Ratio Pre-tax Factor After-tax Factor Pre-tax Cost After-tax Cost 2 Estimated Cost of Capital 3 Short-term debt $186.8 $227.8 $ % 6.08% 3.95% 0.44% 0.28% 4 5 Long-term debt 1, , , % 8.16% 5.32% 3.78% 2.46% 6 Total debt $1,521.5 $1,561.9 $1, % 14.24% 9.27% 4.22% 2.74% 7 8 Preferred shares % 5.42% 5.11% 0.49% 0.46% 9 10 Common equity 1, , , % 9.35% 9.35% 3.50% 3.51% Total $2,850.6 $2,915.2 $2, % 8.21% 6.71% Notes: 15 1) Figures presented reflect whole numbers which may cause $0.1M in rounding differences on some line items. 16 2) Calculation based on 2009 Test Year Forecast - Proposed Rates. 17 3) Short-term debt cost factor includes account receivable securization fees accounted for in Other Revenue. 18 4) Pre-tax equity cost excludes the income tax gross-up factor 19 5) Average capital reflects average of year-end balances Forecasts are compiled for purposes of this rate application and are not intended to be relied upon for other purposes.

24 FOR Requirement: Details of Interest Charges. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1

25 REDACTED FOR-11 Attachment 1 Page 1 of 1

26 FOR Requirement: Average rate base, supporting schedule capital assets. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1

27 REDACTED FOR-12 Attachment 1 Page 1 of 1

28 FOR Requirement: Average rate base, supporting schedule deferred charges & credits. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1

29 REDACTED FOR-13 Attachment 1 Page 1 of 1

30 FOR Requirement: Average rate base, supporting schedule allowance for materials & supplies. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1

31 REDACTED FOR-14 Attachment 1 Page 1 of 1

32 FOR Requirement: Average rate base, supporting schedule allowance for working capital. Submission: Please refer to Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1

33 FOR-15 Attachment 1 Page 1 of 1 Nova Scotia Power Inc. Average Rate Base Supporting Schedule - Allowance for Working Capital Years Ended December 31st Millions of dollars 2009 Financial Outlook FOR Test Year Proposed Rates - Cash Working Capital Requirement 2 Category Lag Days (a) Net Lag Days (b) [49.9 days - (a)] % of Year (c) [(b) / 365] Annual Cost (d) CWC [(c) x (d)] 3 4 Revenue Lag Labour $ Non-Labour Operating $ Fuel & Purchased Power $ Grants In Lieu of Taxes (135.4) $ Total Taxes $ HST and Energy Rebate TOTAL Less Consumer Deposits (12.2) 14 CWC Requirement RB-02-16, Line Notes: 16 1) Figures presented reflect whole numbers which may cause $0.1M in rounding differences on some line items. Forecasts are compiled for purposes of this rate application and are not intended to be relied upon for other purposes.

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