Proposal Details In Brief Here are the results of the last four years for Nova Scotia Power.

Figures are in millions of dollars; $1,000 therefore equals $1 billion. Links showing the Operating Revenue (OR) and Net Income figures are provided in Links. Calculations for other figures are shown in Affordable Power Proposal.

NS Power Revenue, Expenses, and Net Income (millions) Operating Revenue NSP-Paid Expenses Net Income Percentage

2012

2011

2010

2009

$1,367.6 $1,246.5 $121.1 8.9%

$1,233.0 $1,109.5 $123.5 10.0%

$1,191.4 $1,072.2 $119.2 10.0%

$1,211.8 $1,101.0 $110.8 9.1%

In 2012 NS Powers Operating Revenue was about $1.37 billion. Increases in its expenses along with its big profit margins drive its rates high. In 2013 If the profit margin is set at 5% and the government covers 2 years of expense increases: 2013 Operating Revenue = $1.31 billion* 2013 Operating Revenue = $1.28 billion (2013 dollars figures here are rounded). (2012 dollars. Inflation of 2.15%)

*Calculations are shown in NS Power Presenting Materials

Using 2013 dollars: 2013 OR would be cut by $55.5 million or 4.1%. Rate cut = 4.1% Using 2012 dollars: 2013 OR would be cut by $83.1 million, or 6.1%. Rate cut = 6.1% With the government covering expense increases for 2013 and 14, Operating Revenues are the same in both years (explained in Affordable Power Proposal). In 2014 2014 Operating Revenue = $1.31 billion 2014 Operating Revenue = $1.26 billion (2014 dollars) (2012 dollars annual inflation of 2.15%)

Using 2014 dollars: 2014 OR would be cut by $55.5 million or 4.1%. Rate cut = 4.1% Using 2012 dollars: 2014 OR would be cut by $110.1 million, or 8.1%. Rate cut = 8.1%