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-01 15 Financial Outlook RB-01 16 Rate Base DA-01 04 Depreciation & Amortization Section 4: Section 5: Section 6: OR-01 08 Operating Revenues OE-01 13 Operating Expenses CS-01 03 Capital Structure PR-01 03 Proposed Rates & Regulations Volume 3 of 3 May 2008 REDACTED
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-02 16 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
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-02 09 OM&G Details DATE FILED: May 27, 2008 Page 2 of 3
FOR/RB/DA/OR/OE/CS/PR OE-10 11 OE-12 OE-13 Taxes Foreign Exchange Hedging Dues and Professional Association Charges SECTION 5 CS Capital Structure CS-01 03 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
FOR-01 1 2 3 4 5 6 7 Requirement: Regulated statement of earnings. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1
REDACTED FOR-01 Attachment 1 Page 1 of 1
FOR-02 1 2 3 4 5 6 7 Requirement: Regulated balance sheet. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1
REDACTED FOR-02 Attachment 1 Page 1 of 1
FOR-03 1 2 3 4 5 6 7 Requirement: Regulated statement of retained earnings. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1
REDACTED FOR-03 Attachment 1 Page 1 of 1
FOR-04 1 2 3 4 5 6 7 Requirement: Regulated statement of cash flows. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1
REDACTED FOR-04 Attachment 1 Page 1 of 1
FOR-05 1 2 3 4 5 6 7 Requirement: Electric revenue details. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1
REDACTED FOR-05 Attachment 1 Page 1 of 1
FOR-06 1 2 3 4 5 6 7 8 Requirement: GW/h production and sales. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1
REDACTED FOR-06 Attachment 1 Page 1 of 1
FOR-07 1 2 3 4 5 6 7 8 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
REDACTED FOR-07 Attachment 1 Page 1 of 1
FOR-08 1 2 3 4 5 6 7 8 9 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
REDACTED FOR-08 Attachment 1 Page 1 of 1
FOR-09 1 2 3 4 5 6 7 8 Requirement: Revenue requirement and rate increase breakdown. Submission: Please refer to Direct Evidence Section 11 Figure 11.5. DATE FILED: May 27, 2008 Page 1 of 1
FOR-10 1 2 3 4 5 6 7 8 Requirement: Estimated average capital and cost of capital. Submission: Please refer to Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1
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-10 2009 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 $207.2 7.2% 6.08% 3.95% 0.44% 0.28% 4 5 Long-term debt 1,334.7 1,334.1 1,334.4 46.3% 8.16% 5.32% 3.78% 2.46% 6 Total debt $1,521.5 $1,561.9 $1,541.6 53.5% 14.24% 9.27% 4.22% 2.74% 7 8 Preferred shares 260.0 260.0 260.0 9.0% 5.42% 5.11% 0.49% 0.46% 9 10 Common equity 1,069.1 1,093.3 1,081.3 37.5% 9.35% 9.35% 3.50% 3.51% 11 12 Total $2,850.6 $2,915.2 $2,882.9 100.0% 8.21% 6.71% 13 14 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.
FOR-11 1 2 3 4 5 6 7 8 Requirement: Details of Interest Charges. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1
REDACTED FOR-11 Attachment 1 Page 1 of 1
FOR-12 1 2 3 4 5 6 7 8 Requirement: Average rate base, supporting schedule capital assets. Submission: Please refer to Confidential Attachment 1. DATE FILED: May 27, 2008 Page 1 of 1
REDACTED FOR-12 Attachment 1 Page 1 of 1
FOR-13 1 2 3 4 5 6 7 8 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
REDACTED FOR-13 Attachment 1 Page 1 of 1
FOR-14 1 2 3 4 5 6 7 8 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
REDACTED FOR-14 Attachment 1 Page 1 of 1
FOR-15 1 2 3 4 5 6 7 8 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
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-15 1 2009 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 49.9 5 Labour 21.3 28.6 7.8 $ 125.7 9.8 6 Non-Labour Operating 30.2 19.7 5.4 $ 95.8 5.2 7 Fuel & Purchased Power 26.5 23.5 6.4 $ 625.4 40.2 8 Grants In Lieu of Taxes (135.4) 185.3 50.8 $ 34.8 17.7 9 Total Taxes 14.7 35.2 9.6 $ 74.2 7.2 10 HST and Energy Rebate 2.6 11 12 TOTAL 82.7 13 Less Consumer Deposits (12.2) 14 CWC Requirement - 2009 RB-02-16, Line 18 70.5 15 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.