[Rev. 8/6/2022 6:00:23 PM]

[NAC-704 Revised Date: 6-20]

CHAPTER 704 - REGULATION OF PUBLIC UTILITIES GENERALLY

GENERAL PROVISIONS

704.005        Definitions.

704.0052      “Access line” defined.

704.0054      “Basic network service” defined.

704.0055      “Basic service” defined.

704.0056      “Business line service” defined.

704.006        “Commission” defined.

704.0065      “Competitive service” defined.

704.0066      “Competitive supplier” defined.

704.0068      “Deregulated service” defined.

704.007        “Deregulation” defined.

704.0075      “Discretionary service” defined.

704.0076      “Energy efficiency contract” defined.

704.00765    “Energy efficiency measure” defined.

704.0077      “Essential service” defined.

704.0079      “Exchange” defined.

704.008        “Exemption from tariff” defined.

704.0085      “Flexibility of pricing” defined.

704.00861    “Incumbent local exchange carrier” defined.

704.00862    “Interexchange carrier” defined.

704.00863    “Interruptible irrigation sales” defined.

704.00864    “Intraexchange carrier” defined.

704.00868    “Local area of transport and access” and “LATA” defined.

704.0087      “Operator service” defined.

704.00872    “Other essential service” defined.

704.008723  “Portfolio energy credit” defined.

704.008727  “Portfolio energy system or efficiency measure” defined.

704.00873    “Presiding officer” defined.

704.00876    “Provider of last resort” defined.

704.0088      “Reseller” defined.

704.00882    “Small-scale provider of last resort” defined.

704.00883    “Telecommunication” defined.

704.008835  “Telecommunication provider” and “telephone company” defined.

704.00884    “Telecommunication service” and “telephone service” defined.

704.009        “Uniform System of Accounts” defined.

704.0097      Deviation from provisions of chapter.

DEFERRED ACCOUNTING

704.023        Definitions.

704.024        “Adjustment date” defined.

704.030        “Amortization period” defined.

704.031        “Annual rate adjustment application” defined.

704.032        “Base tariff energy rate” defined.

704.035        “Deferred energy accounting” defined.

704.037        “Deferred energy accounting adjustment” defined.

704.039        “Deferred energy application” defined.

704.045        “Deferred energy balance” defined.

704.048        “Electric utility” defined.

704.050        “Energy costs” defined.

704.055        “FERC account” defined.

704.056        “Gas utility” defined.

704.058        “Off-system sales” defined.

704.061        “Purchased gas” defined.

704.063        “Test period” defined.

704.075        Applicability; notice by gas utility of its intent to use deferred energy accounting.

704.090        Gas utilities: Termination of deferred energy accounting.

704.095        Deferred energy accounts: General requirements.

704.101        Deferred energy accounts: Required entries.

704.105        Account for energy cost adjustments.

704.111        Clearing deferred energy accounts; calculation and application of deferred energy accounting adjustment.

704.116        Deferred energy applications; calculation and effective period of base tariff energy rate and deferred energy accounting adjustment.

704.117        Gas utilities: Application to revise base tariff energy rate.

704.1172      Gas utilities making quarterly adjustments to base tariff energy rate: Application to make quarterly adjustments to deferred energy accounting adjustment.

704.1174      Gas utilities: Application to discontinue making quarterly adjustments to deferred energy accounting adjustment and to establish deferred energy accounting adjustment pursuant to NAC 704.111 and 704.116.

704.1176      Electric utilities: Application to make quarterly adjustments to deferred energy accounting adjustment.

704.1178      Electric utilities: Application to discontinue making quarterly adjustments to deferred energy accounting adjustment and to establish deferred energy accounting adjustment pursuant to NAC 704.111 and 704.116.

704.118        Notice of certain applications, hearings thereon and quarterly adjustments to base tariff energy rate and, if applicable, deferred energy accounting adjustments.

704.120        Adoption by reference of certain accounts from Uniform System of Accounts of Federal Energy Regulatory Commission.

704.135        Gas utilities: Calculation of certain base tariff energy rates and recommendation of preferred base tariff energy rate.

704.145        Additional requirements for deferred energy accounts; accounts relating to income taxes.

704.150        Carrying charges.

704.161        Gas utilities: Application to make quarterly adjustments to base tariff energy rate.

704.166        Gas utilities: Application to terminate quarterly adjustments to base tariff energy rate and to establish base tariff energy rate.

704.195        Monthly reports.

RECOVERY OF VARIABLE INTEREST EXPENSE OR DIVIDENDS

704.210        Definitions.

704.211        “Amortization period” defined.

704.212        “Deferred energy accounting adjustment” defined.

704.213        “FERC account” defined.

704.214        “Test period” defined.

704.215        “Weighted average variable interest or dividend rate” defined.

704.216        “Utility” defined.

704.217        Application to recover deferred variable interest expense or dividends: Filing and contents.

704.218        Calculation of revenues and expenses related to allowable variable interest expense or dividends.

704.219        Calculation of revenues and expenses related to accumulation of deferred variable interest or dividends.

704.220        Computation of carrying charge.

704.221        Limit on recovery of debit balance in subaccount for deferred variable interest expense.

704.222        Effective date of change in rate.

ANNUAL REPORTS

704.225        Submission; contents.

REPORTS OF ACCIDENTS

704.228        Definitions.

704.230        “Accident” defined.

704.231        “Estimated property damage” defined.

704.232        “Pipeline” defined.

704.235        Exemptions.

704.240        Initial report: Submission; designated employee.

704.245        Initial report: Contents; confidentiality.

704.250        Submission of final report and additional information; rescission of initial report.

REPORTS OF SIGNIFICANT SERVICE OUTAGES

704.2555      Definitions.

704.256        “Pipeline” defined.

704.2565      “Significant service outage” defined.

704.257        Annual certification of population by Commission.

704.2575      Initial report: Submission; designated employee.

704.258        Initial report: Contents; confidentiality.

704.2585      Submission of final report and additional information; rescission of initial report.

704.259        Electric utilities: Quarterly reports.

704.2595      Water utilities: Notification of certain scheduled maintenance.

DISCLOSURES TO CUSTOMERS BY CERTAIN ELECTRIC UTILITIES

704.2761      Definitions.

704.2763      “Biofuel” defined.

704.2765      “Biomass” defined.

704.2767      “Electric utility” defined.

704.2769      “Excluded sale” defined.

704.2771      “Generation asset” defined.

704.2773      “Heavy metal” defined.

704.2775      “Native generation” defined.

704.2777      “Purchased power” defined.

704.2783      Distribution and formatting of disclosure statements.

704.2785      Contents of disclosure statement: Information relating to certain sales, energy sources and emissions.

704.2787      Contents of disclosure statement: Information relating to certain products, services and programs.

ADVERTISING BY CERTAIN ELECTRIC AND GAS UTILITIES

704.280        Definitions.

704.285        Applicability.

704.290        Promotional or political advertising.

704.295        Exemptions.

RIGHTS AND OBLIGATIONS OF CUSTOMERS OF CERTAIN ELECTRIC AND GAS UTILITIES

704.302        Definitions.

704.3022      “Advanced service delivery meter” defined.

704.3023      “Advanced service delivery meter customer” defined.

704.303        “Customer” defined.

704.304        “Deposit” defined.

704.3055      “Division” defined.

704.3065      “Elderly” defined.

704.307        “Especially dangerous to health” defined.

704.309        “Guarantor” defined.

704.3105      “Person with a disability” defined.

704.313        “Rule” defined.

704.314        “Satisfactory credit” defined.

704.315        “Termination of service” defined.

704.316        “Timely payment” defined.

704.317        “Utility” defined.

704.320        Records of utility.

704.321        Terms of agreement with customer.

704.322        Form for complaint by customer.

704.323        Transmittal of information to customers.

704.326        Application for service; provision of range of historical energy use at location of service.

704.327        Establishment of credit.

704.328        Deposit: Generally.

704.329        Deposit: Alternatives.

704.330        Deposit: Additional amount.

704.331        Deposit: Notification of requirement.

704.332        Deposit: Payment in installments.

704.333        Deposit: Return.

704.334        Guarantors.

704.336        Basis and contents of bill for service.

704.337        Billing based upon estimated usage.

704.338        Program for equalized billing for service.

704.339        Billing and payment for service.

704.341        Program for deferred payment of delinquent bill.

704.342        Program to pay bills of customers under financial hardship; coordination with other entities providing assistance to lower-income customers.

704.3425      Visits for service and repair.

704.343        Testing meters for accuracy.

704.344        Adjustment of bill when meter inaccurate.

704.346        Resolution of dispute regarding bill, charge or service.

704.348        Refusal to provide service.

704.350        Termination of service: No prior notice.

704.355        Termination of service: Prior notice.

704.360        Termination of service: Provision of notice.

704.365        Termination of service: Designation and notification of third person.

704.370        Termination of service: Postponement when dangerous to health.

704.372        Termination of service: Postponement upon agreement to pay delinquent bill.

704.375        Termination of service: Miscellaneous restrictions.

704.380        Termination of service: Restrictions regarding certain delinquent bills.

704.383        Resumption of service.

704.385        Written notice to customers and outreach concerning elderly persons and persons with disability.

704.390        Notice of termination of service to customer who is elderly or who is person with disability.

TERMINATION OF RESIDENTIAL WATER SERVICE

704.391        Definitions.

704.3912      “Customer” defined.

704.3914      “Division” defined.

704.3916      “Especially dangerous to health” defined.

704.3918      “Landlord” defined.

704.392        “Termination of service” defined.

704.3922      “Utility” defined.

704.3924      Terms of agreement with customer.

704.3926      Termination without prior notice.

704.3928      Termination after notice.

704.393        Provision of notice of termination.

704.3932      Program of deferred payments.

704.3934      Postponement of termination during forecasted period of extreme heat.

704.3936      Postponement of termination when dangerous to health.

RIGHTS AND OBLIGATIONS OF CUSTOMERS OF CERTAIN TELECOMMUNICATION PROVIDERS

704.395        Definitions.

704.3955      “Connection fee” defined.

704.396        “Cosigner” defined.

704.3965      “Customer” defined.

704.397        “Deposit” defined.

704.3975      “Division” defined.

704.398        “Elderly” defined.

704.3985      “Especially dangerous to health” defined.

704.399        “Guarantor” defined.

704.3995      “Person with a disability” defined.

704.401        “Satisfactory credit” defined.

704.4015      “Termination of service” defined.

704.402        “Third person” defined.

704.4025      “Unsatisfactory credit” defined.

704.403        “Utility” defined.

704.404        Applicability; purpose.

704.4045      Records of utility.

704.4051      Dissemination of information concerning customers.

704.406        Availability of information to customers.

704.4065      Notice of programs for customers with special needs.

704.407        Terms of agreement with customer.

704.408        Application for service.

704.4085      Establishment of credit.

704.409        Deposit: Generally.

704.4095      Payment of deposit and connection fee.

704.4105      Deposit: Return.

704.411        Cosigners and guarantors.

704.412        Contents of bill for service.

704.4125      Payment of bill for service.

704.413        Agreement for deferred payment of bill.

704.4135      Apportionment of partial payment of bill.

704.414        Credit to account of customer.

704.4145      Resolution of dispute regarding bill, charge or service.

704.4151      Furnishing local service to customer who fails to pay disputed toll charges and files complaint; action upon resolution of complaint.

704.4155      Continuation of certain services upon temporary suspension of basic service because of nonpayment.

704.416        Grounds for termination of service.

704.4165      Notice of intended termination of service.

704.417        Special notice of proposed termination when dangerous to health.

704.4175      Designation and notification of third persons.

704.418        Refusal of service and termination without notice.

704.4185      Postponement of termination when dangerous to health.

704.419        Postponement of termination upon agreement to pay delinquent bill.

704.4195      Restrictions on termination: Certain delinquent bills; weekends and holidays.

704.4205      Contesting propriety of termination.

704.421        Resumption of service.

REGULATIONS CONCERNING CERTAIN TELECOMMUNICATION SERVICES

Interstate Pay-Per-Call Service

704.423        Adoption by reference of standards of Federal Communications Commission.

Intrastate Long-Distance Service

704.424        Resale of service.

Basic Network Service and Business Line Service

704.4244      Applicability.

704.4247      “Promotional service” defined.

704.42472    Limitations on types of promotional service that may be offered.

704.42474    Restrictions on offers of promotional service.

704.42476    Written notice of certain offers of promotional service.

704.42478    Application for inclusion of promotional service as tariffed service.

Change of Preferred Long Distance Carrier

704.426        Slamming rules and remedies of Federal Communications Commission: Adoption by reference; administration and enforcement.

ELECTRICAL SAFETY CODE

704.450        Adoption by reference of National Electrical Safety Code.

INTRASTATE TRANSPORTATION OF GAS

704.455        Applicability.

704.460        Adoption by reference of certain federal regulations.

704.461        Adoption by reference of certain standards of National Fire Protection Association.

704.465        Certain reports and notifications required to be made concurrently to United States Department of Transportation and Commission.

CURTAILMENT OF DISTRIBUTION OF NATURAL GAS

704.471        Definitions.

704.473        “Boiler fuel” defined.

704.477        “Capability of using an alternative fuel” defined.

704.479        “Commercial use” defined.

704.481        “Correctional facility” defined.

704.483        “Firm requirement” defined.

704.487        “Hospital” defined.

704.489        “Industrial use” defined.

704.491        “Interruptible requirement” defined.

704.493        “School” defined.

704.497        Purpose; applicability.

704.499        Duty to deliver continuous supply and avoid shortages, interruptions.

704.501        Priorities in curtailment of service.

704.503        Lower level of priority to be fully curtailed before higher level; partial curtailments.

704.507        Curtailment in emergencies.

704.509        Distribution of new supply made available by customer.

704.511        Information to be furnished to suppliers and obtained from customers.

NATURAL GAS SUPPLIED TO GENERATING, INDUSTRIAL AND LARGE COMMERCIAL CUSTOMERS

704.516        Definitions.

704.517        Applicability.

704.518        Rates and charges: Schedule; contract for special services; customer subject to schedule or contract; establishment by utility; exemption from certain provisions.

704.519        Schedule of rates and charges: Effective date.

704.521        Schedule of rates and charges: Written justification.

704.522        Procedure for changing level of rate.

704.524        Notification of customers of change in rates and charges.

704.526        Filing of list identifying schedule and affected customers; notice to customers.

704.527        Filing copy of lists with Consumer’s Advocate.

704.528        Violations: Action by Commission.

SYSTEMS FOR DISTRIBUTION OF LIQUEFIED PETROLEUM GAS

704.531        Definitions.

704.5315      Applicability.

704.532        Certificate of public convenience and necessity.

704.533        Duties of operator.

704.534        Annual report.

704.535        Procedure for reporting emergencies.

704.536        Allowable charges; application to Commission to use alternative method; refund of overcharge.

704.5364      Application for approval of margin rates by operator who uses alternative method: Annual submission to Commission; contents.

704.5366      Application for approval of margin rates by operator who uses alternative method: Analysis, determinations and recommendations of Regulatory Operations Staff of Commission; response or request for hearing by operator or interested person; hearing; written order by Commission; actions by operator if margin rates not just and reasonable.

704.537        Complaints and inquiries.

WATER SERVICE AND SEWAGE SERVICE

General Provisions

704.561        Adoption by reference of Uniform System of Accounts for certain water and wastewater utilities.

Resource Planning

704.565        Definitions.

704.5651      “Action plan” defined.

704.5652      “Conservation plan” defined.

704.5653      “Funding plan” defined.

704.5654      “Resource plan” defined.

704.5655      “Utility” defined.

704.5656      “Wastewater treatment” defined.

704.5657      “Water supply and wastewater treatment plan” defined.

704.5658      “Water year” defined.

704.566        Provision of overview of resource plan to certain entities before filing.

704.5661      Resource plan: Summary.

704.5662      Resource plan: General requirements.

704.5663      Resource plan: Identification of inapplicable regulatory provisions.

704.5664      Resource plan: Written testimony.

704.5665      Resource plan: Integrated analysis.

704.5666      Resource plan: Technical appendix.

704.5667      Resource plan: Forecasts; inconsistent water sources; changes in methodology of forecasting.

704.5668      Resource plan: Information concerning entire system of utility for 10 previous years.

704.5669      Resource plan: Assessment of projected reliability of water service; population estimates.

704.567        Conservation plan: General requirements.

704.5671      Conservation plan: Analysis for potential water shortages.

704.5672      Conservation plan: Information about reclaimed water.

704.5673      Water supply and wastewater treatment plan: Options for meeting demand for water and wastewater treatment.

704.5674      Water supply and wastewater treatment plan: Preferred plan.

704.5675      Water supply and wastewater treatment plan: Description of system and separate components; map of facilities; description of deficiencies.

704.5676      Funding plan: Requirement for certain items identified in conservation plan or water supply and wastewater treatment plan.

704.5677      Funding plan: Information concerning costs utility will incur during term of action plan.

704.5678      Funding plan: Options for defraying expenditures.

704.5679      Funding plan: Estimates of financial information; assumptions.

704.568        Action plan: General requirements.

704.5681      Action plan: Budget of planned expenditures.

704.5682      Action plan: Action by Commission.

704.5683      Action plan: Deviation from plan by utility.

704.5684      Action plan: Monitoring; conditions requiring amendment.

704.5685      Amendment to action plan: Provision of overview of proposed amendment to certain entities.

704.5686      Amendment to action plan: Required provisions.

704.5687      Amendment to action plan: Action by Commission.

704.5688      Accrual of expenses to develop resource plan in deferred account; recovery of expenses.

Maintenance of Fire Hydrants

704.569        General requirements; adoption by reference of certain publications.

Utilities That Service Limited Number of Customers: Rates and Service

704.570        Definitions.

704.5705      “Affiliate” defined.

704.5712      “General rate change” defined.

704.5713      “Gross domestic product deflator” defined.

704.5714      “Gross domestic product deflator advice letter” defined.

704.5725      “Regulatory Operations Staff” defined.

704.575        Applicability.

704.581        Annual notification of gross domestic product deflator.

704.582        Range of reasonable returns on equity: Annual filing and service; contents; use in application for adjustments in rates.

704.583        Calculation of amount of allowance for cash working capital.

704.584        Gross domestic product deflator advice letter: Filing and contents; memorandum of recommendations.

704.586        Application for general rate change: Filing, contents and service.

704.587        Gross domestic product deflator advice letter or application for general rate change: Notice to customers; affidavit to Commission.

704.595        Application to recover increased costs of fuel or power: Filing and contents.

704.600        Financing for additions or improvements to plant or providing cash reserve for certain repairs, maintenance or replacements: Surcharge.

704.605        Financing for additions or improvements to plant or providing cash reserve for certain repairs, maintenance or improvements: Written plan.

704.615        Application for general rate change: Action by Commission’s Division of Consumer Complaint Resolution and Regulatory Operations Staff.

704.622        Application for general rate change or request submitted concurrently with assistance of Regulatory Operations Staff.

704.625        Disclosure of transactions.

704.6265      Placement of utility in receivership.

704.627        Inspection; survey of customers; report of findings and recommendations; utility’s response.

704.628        Standards of service.

Utilities That Service Limited Number of Customers: Real Property and Goods

704.6321      “Essential real property and goods” defined.

704.6323      Applicability.

704.6325      Requirements concerning essential real property and goods.

704.6327      Application for sale, transfer or other disposal of essential real property and goods and for sale or transfer of water rights; notice of application and hearing.

Recovery of Certain Costs by Certain Utilities

704.633        Definitions.

704.6331      “Carrying costs” defined.

704.63315    “Cost of service” defined.

704.6332      “Customer class” defined.

704.63325    “Depreciation expense” defined.

704.6333      “Distribution system” defined.

704.63335    “Eligible project” defined.

704.6334      “Eligible project regulatory asset account” and “regulatory asset account” defined.

704.63345    “Large utility” defined.

704.6335      “Production system” defined.

704.63355    “Resource plan” defined.

704.6336      “System improvement rate” defined.

704.63365    “System improvement rate revenue requirement” defined.

704.6337      “Transmission system” defined.

704.63375    “Utility” defined.

704.6338      “Wastewater system” defined.

704.63385    Request for recovery of certain amounts and costs; requirements; concurrent submission with request for assistance of Regulatory Operations Staff; approval; alternative rate design.

704.6339      Request or application for designation as eligible project; requirements; action by Commission.

704.63395    Notice of request or application for designation as eligible project.

704.634        Commission to provide approved budget estimate.

704.6341      Calculation of eligible project regulatory asset account.

704.63415    Costs must be accounted for and readily identifiable.

704.6342      Calculation of carrying costs, annual system improvement rate revenue requirement, authorized pretax rate of return and weighted average return.

704.63425    System improvement rate: Filing deadline for application; requirements; recalculation and modification.

704.6343      System improvement rate: Approval of application; authority to limit system improvement rate revenue requirement; deadline.

704.63435    System improvement rate: Annual application for continuation or adjustment; requirements; deadline for approval.

704.6344      Applicability of certain provisions.

704.63445    Test year data for unadjusted water consumption; cost of service study.

704.6345      Considerations of Commission in establishing requirements for revenue generated from certain customer classes.

704.63455    Alternative methods for analyzing results of cost of service study.

ACCOUNTING PRACTICES AND RATE MAKING FOR CERTAIN UTILITIES

Uniform System of Accounts

704.640        Natural gas companies.

704.645        Telephone companies.

704.650        Electric power companies.

Adjustment of Rates in Conformity With Federal Tax Reform

704.6502      Definitions.

704.6504      “Allowance for funds used during construction” defined.

704.6506      “Average rate assumption method” defined.

704.6508      “Contributions” defined.

704.651        “Excess tax reserve” defined.

704.6512      “Income tax gross up” defined.

704.6514      “P.S.C.N. Account 107” defined.

704.6516      “Reverse” defined.

704.6518      “Reverse South Georgia method” defined.

704.6522      “Vintage” and “vintage group” defined.

704.6524      Provisions obtainable from Internal Revenue Service.

704.6526      Rules for rate making.

704.6528      Determination of rate base.

704.653        Calculation of allowance for funds used during construction; inclusion of deferred income tax as component of rate base.

704.6532      Contributions to corporate capital.

704.6534      Normalization of timing differences.

704.6536      Net operating loss carrybacks and carryovers.

704.6538      Capitalization and inclusion in inventory costs of certain expenses.

704.6542      Alternative minimum tax.

704.6544      Environmental tax.

704.6546      Use of separate-entity method by utility members of consolidated group.

Rate Design for Certain Electric Utilities

704.655        Applicability.

704.660        Consideration of marginal cost of service in determining class revenue requirements.

704.662        Rate design based on marginal cost of service.

704.665        Special rate for interruptible service.

Rate Design for Certain Natural Gas Utilities

704.6671      Definitions.

704.6673      Applicability.

704.6675      Considerations for determination of rates for classes of customers.

704.6677      Rates to be designed to conserve energy.

704.6679      Filing requirements for proceeding to establish or change rates.

Rates for Interruptible Service

704.673        Establishment of rate.

704.675        Schedule; annual charges.

704.680        Recovery of deficiency.

ADDITIONAL REGULATIONS CONCERNING CERTAIN TELECOMMUNICATION SERVICES

General Requirements and Exemptions for Certain Providers and Services

704.6802      Designation of companies as providers of last resort.

704.68026    Certain exemptions for provider of commercial mobile radio services.

704.68028    Confirmation of certain orders for change of telecommunication service.

Performance Standards and Penalties to Encourage Competition and Discourage Discrimination

704.6803      “Nonrural incumbent local exchange carrier” defined.

704.680301     Applicability; purpose.

704.680302     Authority of certain providers to file petition for exemption from requirements relating to performance standards and penalties.

704.680303     Plans for reporting and auditing performance measures and establishing performance incentives: Request for approval; hearing; issuance of order; period of validity; request for modification.

704.680305     Plan for measuring performance.

704.680307     Requirements for performance measurements; exemption from performance measurements and reporting requirements.

704.680309     Plan for establishing reporting requirements; monthly report of performance measurements; confidential information; access to data.

704.680311     Plan establishing auditing requirements: Request for approval; minimum requirements.

704.680313     Plan establishing performance incentives.

704.680315     Plan for system of penalties.

Complaints to Resolve Disputes Between Telecommunication Providers

704.68035    Definitions.

704.680351     Applicability.

704.680353     Authority to file complaint; certification required.

704.680355     Contents and filing of complaint; protective agreement regarding discovery.

704.680357     Answer.

704.680359     Mediation.

704.680361     Discovery; service.

704.680363     Hearing; final decision of Commission.

704.680365     Request for interim relief.

Fund to Maintain the Availability of Telephone Service

704.6804      Definitions.

704.6804105 “County telephone line or system” defined.

704.6804107 “Eligibility Administrator” defined.

704.6804109 “Eligibility responsibility party” defined.

704.680411  “Eligible library” defined.

 

 

704.680412  “Eligible school” defined.

704.680413  “Eligible telecommunications carrier” defined.

704.680414  “Eligible telecommunications service” defined.

704.6804143 “Eligible voice telephony services” defined.

704.6804147 “Fund Administrator” defined.

704.680415  “Fund to maintain the availability of telephone service” defined.

704.6804153 “High-cost area” defined.

704.6804157 “Insular area” defined.

704.680416  “Lifeline” defined.

704.6804166 “National Lifeline Eligibility Verifier” defined.

704.680417  “Provider of health care” defined.

704.6804175 “Provider of telecommunication services” defined.

704.680418  “Qualifying low-income subscriber” defined.

704.680419  “Rural area” defined.

704.680421  “Service area” defined.

704.6804213 “Small-scale provider of last resort” defined.

704.6804215 “Toll blocking service” defined.

704.680423  “Toll limitation service” defined.

704.6804235 “Tribal Link Up” defined.

704.680424  “Universal service” defined.

704.68043    Purpose of fund.

704.680435     Selection of and contract with Eligibility Administrator and Fund Administrator; termination of Eligibility Administrator.

704.680439     Duties of Eligibility Administrator.

704.68044    Duties of Fund Administrator.

704.68046    General eligibility requirements to qualify for disbursement from fund.

704.680461     Designation as eligible telecommunications carrier: Requirements; exception; issuance of order by Commission approving or denying application.

704.6804615 Designation as eligible telecommunications carrier: Provision of Lifeline services to qualifying low-income subscribers.

704.680463     Designation as eligible telecommunications carrier: Establishment of service areas.

704.680464     Designation as eligible telecommunications carrier: Eligibility to receive certain reimbursements.

704.680465     Designation as eligible telecommunications carrier: Affirmation to be filed with annual report.

704.680466     Designation as eligible telecommunications carrier: Application for relinquishment in certain service areas.

704.680467     Designation as eligible telecommunications carrier: Revocation.

704.680468     Application from eligible school or library for discounted rates for intrastate telecommunication service.

704.680469     Conditions for provision of discounted rates for eligible school or library.

704.68047    Application for disbursement from fund to provider of discounted rates for eligible school or library.

704.680471     Application from provider of health care for discounted rates or discounted service.

704.680472     Conditions for provision of discounted rates or discounted service for public or private nonprofit provider of health care serving persons in rural area.

704.680473     Application for disbursement from fund to provider of discounted rates or discounted service for provider of health care.

704.680474     Criteria for eligibility as qualifying low-income subscriber; documentation of qualification; duties of eligibility responsibility party; determination of eligibility and enrollment of subscriber if National Lifeline Eligibility Verifier is implemented in this State.

704.6804742 Maintenance and provision of lists by Department of Health and Human Services of persons eligible to receive benefits from certain federal programs; exception.

704.6804743 Recertification of continued eligibility as qualifying low-income subscriber.

704.6804745 Certification of compliance with procedures for Lifeline and Tribal Link Up programs.

704.680475     Offering of Lifeline and Tribal Link Up services by eligible telecommunications carrier.

704.6804755 Offering of toll limitation service by eligible telecommunications carrier.

704.680476     Termination of Lifeline service; de-enrollment of subscriber; enrollment of eligible subscriber with unpaid toll charges into Lifeline or Tribal Link Up program; waiver of requirements; notice to Eligibility Administrator; effect of inconsistent eligibility determinations.

704.680477     Charging of service deposit for initiation of Lifeline service.

704.680478     Request for disbursement from fund to eligible telecommunications carrier for reimbursement of costs of providing discount in rate for Lifeline service.

704.680479     Information to be filed with administrator of federal universal service support by eligible telecommunications carrier.

704.68048    Small-scale provider of last resort: Qualification for disbursement from fund; request for money from fund; disputes regarding qualification; audit.

704.680481     Small-scale provider of last resort: Determination of qualification for and amount of annual disbursement from fund.

704.680482     Small-scale provider of last resort: Petition for waiver from requirement to file new request for money from fund after 5 years.

704.680483     Small-scale provider of last resort: Requirements for adjustment application in amount of disbursement from fund.

704.6805      Disbursement from fund to competitive supplier that is provider of last resort.

704.68051    Request by competitive supplier that is provider of last resort for proceedings to determine whether funding is required to ensure that rates charged do not adversely affect universal service.

704.68054    Assessment for support of fund; quarterly remittance to Fund Administrator.

704.68056    Procedure for disbursement from fund; report of Fund Administrator regarding assessment for fund; deviation from or waiver of deadlines for filings.

Classification and Provision of Services of Certain Small-Scale Providers of Last Resort

704.6806      Applicability.

704.68062    Request for classification or reclassification of service.

704.68064    Time for action upon request and for filing of protest.

704.68066    Maintenance of separate accounting records for competitive and deregulated services.

704.68068    Classification of service as discretionary.

704.6807      Classification of service as competitive.

704.68072    Classification of service as discretionary or competitive based on classification of comparable service.

704.68074    Classification of service as deregulated.

704.68076    Approval of rates, terms and conditions for discretionary service.

Additional Requirements for Certain Providers and Services

704.68085    Geographic averaging of rates.

704.6809      Provision of interconnection and access to certificated telecommunication providers.

704.68092    Availability of components of essential service to certificated telecommunication providers.

704.68094    Assignment of numbers, portability and administration.

704.68096    Directory listings.

Inside Wiring for Telephone Equipment

704.681        Definitions.

704.6813      Applicability.

704.6815      Services required for simple inside wiring.

704.682        Rates for services.

704.6825      Billing for services.

704.683        Location of point of demarcation.

Shared Tenant Service

704.689        Definitions.

704.68903    “Contiguous property” defined.

704.68906    “End user” defined.

704.6891      “Point of demarcation” defined.

704.68913    “Provider” defined.

704.68916    “Shared tenant service” defined.

704.6892      “Transient apartment” defined.

704.68922    Applicability.

704.68923    General requirements for provision of shared tenant service.

704.68926    Subscription to services; facilities.

704.6893      Responsibility for service; response to service calls.

704.68933    Telephone directory listings; access to other services.

704.68936    Written acknowledgment from subscriber: Contents; retention.

704.6894      Routing of local calls; resale of intrastate long distance service.

704.68943    Requirements for switches; private line service; hard wiring.

704.68946    Extensions of service.

704.6895      Provision of copies of regulations and tariff to prospective providers.

704.68953    Responsibilities of provider.

704.68956    Compliance with regulations and conditions of service applicable to business customers.

704.6896      Responsibilities of local exchange company.

704.68963    Charges for special constructions.

704.68966    Rates for shared tenant service; applicability.

704.6897      Use of inside wiring; provision of alternate pathways.

Relief of Incumbent Local Exchange Carriers From Obligations of Providers of Last Resort

704.711        Definitions.

704.7112      Request for per se relief from obligations in regard to certain property: Authorization.

704.7114      Request for per se relief from obligations in regard to certain property: Procedure; notice; protest; when relief is deemed granted.

704.7116      Request for waiver of obligations in regard to certain property: Authorization.

704.7118      Request for waiver of obligations in regard to certain property: Procedure; petition.

704.712        Scheduling of waiver proceeding and issuance of order; order granting petition for waiver or per se relief.

704.7122      Excuse from obligations does not affect obligations under federal law or regulation.

704.7124      Notification by owner or developer regarding certain facilities, equipment and payment information.

704.7126      Discontinuation of voice service provided after incumbent local exchange carrier is relieved of obligations.

704.7128      Action by Commission upon receipt of notice or evidence of possible discontinuation of voice service.

704.713        Reinstatement proceeding: Duties of Commission.

704.7132      Payment of certain compensation to person discontinuing voice service or to incumbent local exchange carrier.

704.7134      Request by incumbent local exchange carrier for more time to construct, retrofit or install necessary facilities and equipment.

Competitive Suppliers

704.741        Application by small-scale provider of last resort to be regulated as competitive supplier.

704.743        Discontinuance of basic network service by competitive supplier that is provider of last resort: Application; notification.

704.744        Discontinuance of basic network service by competitive supplier that is provider of last resort: Scope and timing.

Discretionary and Competitive Services

704.7472      Application for certificate of public convenience and necessity filed by competitive supplier: Contents; applicable provisions.

704.7473      Application for certificate of public convenience and necessity filed by competitive supplier: Protests.

704.7475      Discretionary services: Schedule of rates, charges, terms and conditions.

704.7477      Discretionary services: Establishment or change of schedule of minimum and maximum rates or terms and conditions; protests; changes within approved range.

704.7483      Annual reports of certain financial information and information regarding provision of services.

704.7485      Discontinuance of single offering or feature of service.

704.7487      Discontinuance of total service to geographic area.

704.74935    Applicability of certain provisions.

704.7494      Change of name, address or telephone number of telecommunication provider; change of address of Internet website of competitive supplier.

Operator Services for Prison Inmate Phones

704.7499      Adoption by reference of standards of Federal Communications Commission.

Adjustment of Intrastate Charges and Rates by Telephone Companies

704.7501      Definitions.

704.7505      “Exchange” defined.

704.7509      “Interexchange carrier’s charges for access” defined.

704.7513      “Intrastate line for access” defined.

704.7519      “Rate per unit” defined.

704.7521      “Subscriber” defined.

704.7523      “Subscriber’s charges for access” defined.

704.7527      “Unit” defined.

704.7529      “Universal service” defined.

704.75295    Competitive suppliers: Provisions inapplicable; filing and approval of letter of advice.

704.7531      General rate application not precluded by filing.

704.7533      Application to establish or adjust charges or rates.

704.7535      Information to be indexed and to accompany application; request for additional information.

704.7537      Recorded data and adjustments.

 

 

704.7539      Additional data.

704.7541      Data supporting proposed rates; working papers; material available for verification.

704.7543      Required statements and schedules.

704.7545      Statement A.

704.7547      Statement B.

704.7549      Schedule B-1.

704.7551      Schedule B-2.

704.7553      Schedule B-3.

704.7555      Statement C.

704.7557      Statement D.

704.7559      Statement E.

704.7561      Statement F.

704.7563      Statement that material constitutes complete case; burden of proof.

704.7565      Provision of documents to Commission; service upon Consumer’s Advocate.

704.7567      Service of copies of application excluding working papers.

704.7569      Notice to subscribers.

704.7571      Procedure for filing tariffs.

704.7573      Time for filing application for adjustment.

704.7575      Charges for subscribers’ access.

704.7591      Variances.

Payphone Service

704.75911    Definitions.

704.75912    “Payphone” defined.

704.75913    “Payphone service” defined.

704.75914    “Public telephone” defined.

704.75915    “Semipublic telephone” defined.

704.75916    Access to service without charge.

704.75917    Display of information at or near payphone.

704.75918    Correction of failures in market for service.

Deregulation of Service Provided by Local Exchange Company

704.7592      “Long-run incremental costs” defined.

704.75925    Applicability.

704.7593      Application for approval to deregulate service.

704.75935    Time for action upon application.

704.7594      Maintenance of separate accounting records.

704.7595      Factors for determining whether service is discretionary or competitive.

704.7596      Factors for determining whether flexibility, exemption or total deregulation is in public interest.

704.7597      Information to be filed with annual report.

704.7598      Rate charged for service exempted from tariff.

704.75983    Maintenance of quality of deregulated service.

704.7599      Adjustment of extent of deregulation.

Determination of Wholesale Rates by Incumbent Local Exchange Carriers

704.75991    Definitions.

704.759915  “All other services” defined.

704.75992    “Avoided cost study” defined.

704.759925  “Avoided retail costs” defined.

704.75993    “Incumbent local exchange carrier” defined.

704.759935  “Wholesale discount factor” defined.

704.75994    “Wholesale rate” defined.

704.759945     Determination of wholesale discount factors.

704.75995    Formula for determining wholesale rate.

704.759955     Conduct of avoided cost studies.

704.75996    Requirements for avoided cost study.

SALE OF GEOTHERMAL ENERGY

704.760        Purpose.

704.762        Applicability.

704.764        Definitions.

704.766        Operating permit required.

 

 

704.768        Application for operating permit.

704.770        Description of service area.

704.772        Description of operating system.

704.774        Description of geothermal resource.

704.776        Confidentiality of exploration and subsurface information.

704.778        Statement of economic feasibility.

704.780        Additional information to be submitted with application.

704.782        Addendum to contract between utility and customer.

PROVIDERS OF COMMERCIAL MOBILE RADIO SERVICE

704.786        “Commercial mobile radio service” defined.

704.7862      Information to be filed with Commission.

704.7864      Requirement to file information before initiating service; notification of changes.

COMPETITIVE NATURAL GAS SERVICE

Distribution Companies and Affiliates

704.789        Definitions.

704.7891      “Affiliate” defined.

704.7892      “Customer” defined.

704.7893      “Distribution company” defined.

704.7894      “Noncompetitive service” defined.

704.7895      “Potentially competitive service” defined.

704.7896      Applicability.

704.7897      Provision of potentially competitive service or discretionary service.

704.7898      Business relationship between distribution company and affiliate: Requirements; restrictions.

704.7899      Distribution company: Designation of officer to evaluate and certify compliance with certain provisions.

704.7901      Distribution company: Standards of conduct when dealing with affiliate.

704.7902      Distribution company: Conditions for provision of information concerning specific customers to affiliate and nonaffiliated entity.

704.7903      Distribution company: Conditions for provision of general information to affiliate.

704.7904      Distribution company: Restriction on providing list of alternative sellers.

704.7905      Distribution company: Restriction on offering or providing advice or assistance to customer concerning affiliate or other service provider.

704.7906      Distribution company: Maintenance of certain records; availability for review by third parties.

704.7907      Distribution company: Duties related to provision of services to affiliate or nonaffiliated entity.

704.7908      Provision of discount, rebate or other waiver of charge or fee to affiliate by distribution company: Notice; contents.

704.7909      Provision of discount, rebate or other waiver of charge or fee to affiliate by distribution company: Requirements for maintenance of records.

704.791        Audit of distribution company with affiliate: Requirements.

704.7911      Audit of distribution company with affiliate: Access to certain records.

704.7912      Requirements for pricing goods or services transferred by distribution company or affiliate.

704.7913      Affiliate: Standards of conduct.

704.7914      Affiliate: Conditions for offering goods or services.

704.7915      Violations: Generally.

704.7916      Violations: Procedures for processing complaints.

704.7917      Violations: Investigation of complaint; notice and hearing.

704.7918      Enforcement of provisions or order of Commission.

704.7919      Penalties: Generally.

704.792        Penalties: Repeated violations.

Potentially Competitive Services

704.793        Definitions.

704.7931      “Effective competition” defined.

704.7933      “Person” defined.

704.7935      “Potentially competitive service” defined.

704.7937      Applicability.

704.7939      Requirements for classification of natural gas service as potentially competitive service.

704.794        Classification of natural gas service as potentially competitive service limited to certain boundaries.

704.7941      Natural gas service is classified as potentially competitive service under certain circumstances.

704.7943      Natural gas service is noncompetitive service under certain circumstances.

704.7945      Establishment of alternative plan of regulation.

704.7947      Determination of effective competition in market for natural gas service.

Alternative Sellers

704.79501    Definitions.

704.79503    “Affiliate” defined.

704.79505    “Alternative seller” defined.

704.79507    “Discretionary service” defined.

704.79509    “End-use customer” defined.

704.79511    “Generating customer” defined.

704.79513    “Industrial customer” defined.

704.79515    “Large commercial customer” defined.

704.79517    “Local distribution company” defined.

704.79519    “Potentially competitive service” defined.

704.79521    “Residential and small commercial customer” defined.

704.79523    Application for license of certain alternative sellers of discretionary services.

704.79525    Applicability of provisions.

704.79527    Application for license as alternative seller of potentially competitive service.

704.79529    Bond rating or security deposit requirement; amount of security deposit.

704.79531    Acceptable securities: Amounts; adjustments.

704.79533    Documentation required before requesting payment or providing service.

704.79535    Contract with customer conditioned on compliance with provisions.

704.79537    Compliance with certain rules, procedures and obligations.

704.79539    Compliance with generally accepted technical protocols and regulations.

704.79541    Certain changes in application information to be reported to Commission; prior authorization required for change of business name.

704.79543    Grounds for denial, revocation, suspension or limitation of license; notification; hearing; determination of Commission; summary suspension; reapplication for license.

704.79545    Application signed by authorized officer of applicant attesting to truth of information contained therein.

Cost Recovery for Replacement of Existing Natural Gas Pipelines and Related Infrastructure

704.796        Definitions.

704.7961      “Early-vintage plastic pipe” defined.

704.7962      “Early-vintage steel pipe” defined.

704.7963      “Gas infrastructure replacement” defined.

704.7964      “Gas infrastructure replacement advance application” and “advance application” defined.

704.7965      “Gas infrastructure replacement mechanism” and “replacement mechanism” defined.

704.7966      “Gas infrastructure replacement project” and “replacement project” defined.

704.7967      “Gas infrastructure replacement project revenue requirement” and “revenue requirement” defined.

704.7968      “Gas infrastructure replacement rate” and “replacement rate” defined.

704.7969      “Gas infrastructure replacement rate application” and “rate application” defined.

704.797        “Gas infrastructure replacement regulatory asset account” and “regulatory asset account” defined.

704.7971      “Master meter system” defined.

704.7975      Applicability.

704.7976      Advance application: Dates on which deemed filed or denied.

704.7977      Advance application: Required provisions.

704.7978      Advance application: Calculation of regulatory asset account.

704.7979      Advance application: Costs proposed must be accounted for and readily identifiable.

704.798        Rate application: General provisions.

704.7981      Replacement rate: Effective date.

704.7982      Rate application: Statement regarding deviations from replacement projects approved in advance application.

704.7983      Request for waiver of requirement to file rate case.

704.7984      Requirements for seeking determination of prudency.

704.7985      Collection of replacement rate from customers; negotiated rate customers; exemptions.

ENERGY UTILITIES: AUTHORIZATION OF MERGERS, ACQUISITIONS OR CHANGES IN CONTROL

704.79971    Definitions.

704.79973    “Applicant” defined.

704.79975    “Energy utility” defined.

704.79977    “Parties to the proposed transaction” defined.

704.79979    “Transaction” defined.

704.79981    Requirement to submit application.

704.79983    Application for authorization of proposed transaction: General contents.

704.79985    Application for authorization of proposed transaction: Inclusion of information on effect on costs and rates.

704.79987    Application for authorization of proposed transaction: Inclusion of information on effect on competition.

704.79989    Application for authorization of proposed transaction: Inclusion of information on facilities.

704.79991    Order from Commission for changes or additions.

CONSERVATION OF ENERGY IN RESIDENCES

704.800        Applicability.

704.802        Definitions.

704.803        Adoption by reference of certain publications.

704.804        Announcements to eligible customers: Distribution; contents.

704.806        Announcements to eligible customers: List of measures to conserve energy.

704.808        Announcements to eligible customers: List of practices to conserve energy.

704.810        Announcements to eligible customers: Estimates of savings in cost of energy.

704.812        Announcements to eligible customers: Limitation on advertisements.

704.814        Inspections by utility; exceptions.

704.816        Time for inspection; quarterly report.

704.818        Qualifications of inspectors.

704.820        Proposed methodology for performing inspections.

704.822        Alternatives to actual measurements and inspection.

704.824        Written assessment of appropriate practices.

704.826        Measures for conservation: Determination of whether recommendation is appropriate.

704.828        Measures for conservation: Suggestion; evaluation upon customer’s request.

704.830        Inspection if primary source of energy not sold by utility.

704.832        Offer to supply certain equipment and to explain adjustment of thermostats to customer; restriction on supplying or installing material or equipment.

704.834        Results of inspection; duties of inspector.

704.836        Retention of data and results.

704.838        Provision of information and assistance concerning bids, goods and services.

704.856        Supply and installation of material or equipment by utility: General requirements.

704.858        Supply and installation of material or equipment by utility: Duties of utility.

704.860        Prohibited discrimination.

704.862        Determination of levels of R-values for insulation of ceilings and appropriateness of thermal windows.

704.870        Annual reports.

704.872        Accounting for amounts received or expended.

704.874        Crediting of amounts received as reimbursement for expenses.

704.876        Operating expenses of utility; recovery of expenses.

COGENERATION AND SMALL POWER PRODUCTION

704.8771      “Small power production facility” defined.

704.8773      Applicability.

704.8775      Adoption by reference of certain federal regulations.

704.8777      Proposed contract for purchase of capacity or energy: Contents; requirement for bond or other security; application for approval of contract.

704.8779      Proposed contract for purchase of capacity or energy: Consistency with plan to increase supply of or decrease demand for electricity.

704.8781      Submission of information.

704.8783      Requirements for reporting data: Short-term avoided costs; analyses and calculations for determining proposed rates.

704.8785      Requirements for reporting data: Information relating to design, operations and safety; efficiency of generation of power.

704.8787      Interconnection costs.

704.8789      System emergency.

704.8791      Contracts and short-term rates for purchase of power; rates for sales.

704.8793      Resolution of disputes.

ELECTRIC SERVICE

Renewable Energy Zones

704.880        Designation; request for revision.

Master Meters

704.8805      Definitions.

704.8806      Applicability.

704.8807      Restricted use.

Net Metering Systems

704.881        Definitions.

704.8811      “Customer-generator” defined.

704.8812      “Interconnection” defined.

704.8813      “Metering” defined.

704.8814      “Net metering” defined.

704.8815      “Net metering system” defined.

704.8816      “Solar Energy Program” defined.

704.8817      “Third-party system owner or operator” defined.

704.8818      “Waterpower Demonstration Program” defined.

704.8819      “Wind Demonstration Program” defined.

704.882        Net metering tariffs: Application for approval; contents.

704.8821      Standard net metering contracts: Creation; provision to customers; negotiation of alternative arrangements.

704.8822      Dissemination of certain information and forms to customers.

704.8823      Duties of utility upon receipt of application for net metering and upon installation of net metering system; provision of certain contact information.

704.8824      Designation by customer-generator of third-party system owner or operator to work with utility.

704.8825      Limitation on relationship or agreement between customer-generator and third-party system owner or operator.

Portfolio Standard

704.8831      Definitions.

704.8833      “Biogas” defined.

704.8835      “Biomass” defined.

704.8837      “Bureau of Consumer Protection” defined.

704.8839      “Compliance year” defined.

704.88395    “Energy efficiency contract” defined.

704.88411    “Long-term portfolio energy credits contract” defined.

704.88412    “Long-term renewable energy contract” defined.

704.8842      “New renewable energy project” defined.

704.8843      “Nonutility provider” defined.

704.8845      “Portfolio standard” defined.

704.8849      “Provider of electric service” and “provider” defined.

704.8851      “Regulatory Operations Staff” defined.

704.8853      “Renewable energy” defined.

704.8855      “Renewable energy contract” defined.

704.8857      “Renewable energy system” defined.

704.8859      “Retail customer” defined.

704.886        “Short-term portfolio energy credits contract” defined.

704.8862      “Short-term renewable energy contract” defined.

704.8863      “Solar thermal system” defined.

704.8865      “SRCC” defined.

704.8866      “Temporary renewable energy development charge” and “TRED charge” defined.

704.88663    “Temporary renewable energy development program” and “TRED program” defined.

704.88665    “Temporary renewable energy development trust” and “TRED trust” defined.

704.8867      “Utility provider” defined.

704.8869      Adoption by reference of certain ratings, certification standards and performance estimates.

704.8871      Compliance with portfolio standard.

704.8872      Transfer of portfolio energy credits to aggregator of portfolio energy credits.

704.8873      Authority of Commission to require provision of certain information.

704.8875      Calculations concerning compliance with portfolio standard: Eligibility of kilowatt-hours.

704.8877      Calculations concerning compliance with portfolio standard: Submission of information; estimates; effect of equaling or exceeding estimates.

704.8879      Annual reports.

704.8881      Determination of whether provider complied with portfolio standard; carry forward of excess kilowatt-hours; notice of noncompliance; hearing; resolution of deficiency; administrative fines and other administrative action.

704.8883      Petition for exemption from administrative fine or other administrative action.

704.8885      Long-term portfolio energy credits contracts, long-term renewable energy contracts and energy efficiency contracts: Review by Commission; criteria for approval.

704.8887      Long-term portfolio energy credits contracts, long-term renewable energy contracts and energy efficiency contracts: Determination of whether price for electricity is reasonable.

704.88875    Long-term portfolio energy credits contracts, long-term renewable energy contracts and energy efficiency contracts: Mitigation for impact of imputed debt on capital structure of utility provider.

704.88877    Short-term portfolio energy credits contracts and short-term renewable energy contracts: Evaluation by Commission.

704.8888      Renewable energy systems and energy efficiency measures: Establishment of rebate program for customers.

704.8889      Renewable energy systems: Metering and verification of electric output.

704.8891      Renewable energy systems: Use of fossil fuel.

704.8893      Renewable energy systems: Use of solar thermal systems.

704.8894      Temporary renewable energy development program: Authority of Commission; factors for consideration.

704.8895      Temporary renewable energy development program: Orders of Commission.

704.8896      Temporary renewable energy development program: Designation of new renewable energy projects eligible for participation.

704.8897      Temporary renewable energy development program: Duties of utility provider regarding TRED trust; duties and rights of TRED trust.

704.8898      Temporary renewable energy development program: Powers and duties of utility provider regarding TRED charge; determination of TRED charge.

704.8899      Temporary renewable energy development program: Closure to new renewable energy projects; termination of participation by all new renewable energy projects.

System of Portfolio Energy Credits

704.8901      Definitions.

704.8903      “Administrator” defined.

704.8905      “Designated representative” defined.

704.8907      “Net metering system” defined.

704.8908      “Portfolio energy credit” defined.

704.8909      “Provider of electric service” defined.

704.891        “Regulatory Operations Staff” defined.

704.8911      “Renewable energy” defined.

704.8915      “Renewable energy system” defined.

704.8917      “Utility provider” defined.

704.8919      Use of credits to comply with portfolio standard.

704.8921      Application for participation in system.

704.8923      Quarterly reports by participants in system and utility providers.

704.8925      Awarding of credits generated pursuant to certain contracts made before December 8, 2003.

704.8927      Measurement of applicable energy; certification and allocation of credits.

704.8929      Identification of credits; annual statement of credits.

704.8931      Maintenance of certain information on website.

704.8932      Sale of credits by utility provider: Application; notice; approval; exemption.

704.8933      Transfer of credits; monthly statement of account.

704.8935      Retirement of credits.

704.8937      Responsibilities of utility provider; adoption by reference and revision of certain federal regulations.

704.8938      Participation in alternate system by certain categories of portfolio energy systems: Authority of Regulatory Operations Staff to file petition; order by Commission; compliance with requirements set forth in order.

Capacity Allocation for New Commercial and Industrial Businesses

704.895        Definitions.

704.8951      “Base tariff energy rate” defined.

704.8952      “Electric utility” defined.

704.8953      “Participant” defined.

704.8954      “Program” defined.

704.8955      Discounted electric rates to be charged.

704.8956      Allocation of capacity to new customers.

704.8957      Duties of electric utility that provides discounted electric rates.

704.8958      Requirements for annual report to be submitted by electric utility.

Resource Planning

704.9005      Definitions: Terms used in regulation or resource plan.

704.9006      “Action plan” defined.

704.9007      “Affiliate” defined.

704.9015      “Analysis of sensitivity” defined.

704.9023      “Capacity” defined.

704.9024      “Coal-fired electric generating capacity” defined.

704.90243    “Coal-fired electric generating plant” defined.

704.90247    “Coal-fired electric generating unit” defined.

704.9025      “Cogeneration” defined.

704.904        “Conservation” defined.

704.9055      “Demand” defined.

704.9057      “Demand side plan” defined.

704.9058      “Distributed generation” defined.

704.90583    “Distributed resources” defined.

704.90585    “Distributed resources plan” defined.

704.9059      “Electric utility that primarily serves densely populated counties” defined.

704.90593    “Eliminate” and “elimination” defined.

704.90595    “Emissions reduction and capacity replacement action plan” defined.

704.90597    “Emissions reduction and capacity replacement plan” defined.

704.906        “End-use” defined.

704.90605    “Energy efficiency” defined.

704.9061      “Energy supply plan” defined.

704.9063      “Environmental costs and economic benefits to the State” defined.

704.9067      “Financial commitment” defined.

704.9069      “Financial plan” defined.

704.9075      “Forecast of base growth” defined.

704.9085      “Forecast of high growth” defined.

704.9095      “Forecast of low growth” defined.

704.9099      “Fuel procurement plan” defined.

704.9101      “Grid needs assessment” defined.

704.9102      “Hosting capacity analysis” defined.

704.9103      “Independent power producer” defined.

704.9107      “Intermittent energy resources” defined.

704.9109      “Locational net benefit analysis” defined.

704.9111      “Long-term avoided cost” defined.

704.9113      “Long-term purchased power obligation” defined.

704.9115      “Losses” defined.

704.9133      “Non-wires alternative” defined.

704.9135      “Normalized” defined.

704.9147      “Planning capacity” defined.

704.915        “Pooling of power” defined.

704.9152      “Preferred plan” defined.

704.9153      “Purchased power procurement plan” defined.

704.9154      “Renewable energy” defined.

704.91541    “Renewable energy facility” defined.

704.91542    “Renewable energy zone transmission action plan” defined.

704.91543    “Renewable energy zone transmission plan” defined.

704.91544    “Renewable energy zones” defined.

704.9156      “Resource plan” defined.

704.91565    “Retire” and “retirement” defined.

704.9157      “Risk management strategy” defined.

704.9161      “Staff” defined.

704.9163      “Substantially accurate data” defined.

704.9166      “Supply plan” defined.

704.9173      “Year” defined.

704.9212      Goals for energy savings resulting from energy efficiency programs; modification of goal.

704.9215      Summary of resource plan.

704.922        Technical appendix to resource plan.

704.9225      Forecasts of peak demand and annual energy consumption: General requirements.

704.923        Periods to be covered by resource plan.

704.9235      Formats for information included in resource plan.

704.9237      Requirements and contents of distributed resources plan; identification and justification of certain changes of methodology; public posting of update to hosting capacity analysis.

704.9238      Deviation from and amendment of distributed resources plan.

704.9239      Update of distributed resources plan: Filing; requirements.

704.9241      Update of distributed resources plan: Action by Commission.

704.9245      Normalizing forecast values of peak demand and energy consumption to account for normal weather conditions.

704.925        Resource plan: Inclusion, contents and evaluation of forecasts of energy consumption and peak demand; consideration of certain impacts; identification of change in methodology of forecasting.

704.9281      Resource plan: Contents of data relating to peak demand and energy consumption.

704.9321      Resource plan: Reliability of assumptions, forecasts, conclusions and information; adjustments to forecasts; maps of covered areas; supportive testimony.

704.934        Preparation, contents and submission of demand side plan; annual analyses regarding programs for energy efficiency and conservation.

704.9355      Analyses of options for supply.

704.9357      Analysis of net economic benefits to State.

704.9359      Determination of environmental costs to State.

704.9361      Elimination or modification of environmental factors, emission rates and environmental costs.

704.937        Inclusion in supply plan of alternative plans and list of options for supply of capacity and electric energy; criteria for selection of options; comparison of and requirements for alternative plans; identification of preferred plan.

704.9378      Supply plan: Time-line graphs for proposed resources for supply.

704.9385      Supply plan: Contents; tables; transmission plan; information regarding purchase of power; maps; conceptual renewable energy zone transmission plan; list of assets.

704.9395      Resource plan: Information on financial and economic characteristics of planned facilities.

704.9401      Financial information and assumptions used to develop financial plan.

704.944        Supply plan: Discussion of alternative strategies.

704.945        Resource plan: Inclusion of certain tables and graphs.

704.9453      Inclusion of emissions reduction and capacity replacement plan in supply plan of electric utility that primarily serves densely populated counties; contents.

704.9457      Acceptance or modification of emissions reduction and capacity replacement plan.

704.9465      Integrated analysis to establish priorities among options; consideration of results as basis for preferred plan.

704.9475      Analysis of sensitivity for major assumptions and estimates used in resource plan.

704.948        Analysis of decisions.

704.9482      Requirements for energy supply plan, purchased power procurement plan, fuel procurement plan and risk management strategy; consistency with action plan; annual filings.

704.9484      Critical facility: Procedure and purpose for designation; financial incentives.

704.9486      Performance-based methodology for recovery of costs for natural gas used as fuel for generation: Proposal for establishment; report of results.

704.9489      Requirements for action plan.

704.94893    Requirements for emissions reduction and capacity replacement action plan.

704.94895    Renewable energy zone transmission action plan: Acceptance of action items.

704.9492      Rates for long-term avoided cost: Inclusion of certain information in resource plan; estimation; specification of proposed limits concerning availability.

704.9494      Approval or modification of action plan; determination that elements of energy supply plan and distributed resources plan are prudent; recovery of costs to carry out approved plans.

704.9496      Estimated rates for long-term avoided cost: General requirements; action by Commission; solicitation of proposals; report.

704.9497      Approval or modification of emissions reduction and capacity replacement action plan; consequences if utility provides untrue or false information.

704.9498      Report on progress of action plan: Filing; service; contents; form; hearing.

704.9503      Monitoring and amendment of action plan.

704.95035    Monitoring and amendment of emissions reduction and capacity replacement action plan.

704.9504      Deviation from and amendment of energy supply plan.

704.9506      Update of energy supply plan: Filing; requirements.

704.9508      Update of energy supply plan: Action by Commission.

704.9512      Submission to Commission of certain purchased power obligations; disclosure of certain affiliate relationships.

704.9514      Preapproval of certain fuel and purchased power agreements.

704.9516      Contents of amendment to action plan.

704.9517      Contents of amendment of emissions reduction and capacity replacement action plan.

704.9518      Approval or modification of amendment to action plan or energy supply plan.

704.9519      Approval or modification of amendment to emissions reduction and capacity replacement action plan.

704.952        Sessions for reviewing plans; procedure for resolving issues during sessions; summary of topics and conclusions; public meeting to provide overview of anticipated filing or amendment of resource plan.

704.9522      Measurement and verification protocol for energy efficiency and conservation measures: Duties of utility provider.

704.95225    Recovery of certain amounts based on measurable and verifiable effects of implementation of programs for energy efficiency and conservation.

704.9523      Accounting for and recovery of costs of implementing programs for energy efficiency and conservation.

704.95245    Accounting for and recovery of costs of new utility facilities constructed or acquired and owned pursuant to emissions reduction and capacity replacement plan.

704.9525      Severability.

RESOURCE PLANNING AND ENERGY CONSERVATION FOR CERTAIN NATURAL GAS UTILITIES

General Provisions

704.953        Definitions.

704.9534      “Base tariff general rate” defined.

704.954        “Conservation” defined.

704.9541      “Conservation and energy efficiency plan” defined.

704.9543      “Customer class” defined.

704.9545      “Demand” defined.

704.95455    “Energy efficiency” defined.

704.95457    “Equity adder methodology” defined.

704.9555      “Forecast of base growth” defined.

704.9557      “Forecast period” defined.

704.9559      “Gas utility” defined.

704.9561      “Gas year” defined.

704.9562      “General revenue” defined.

704.9563      “General revenue decoupling methodology” defined.

704.9566      “Informational report” defined.

704.957        “Load management” defined.

704.9575      “Major facilities for the supply of gas” defined.

704.958        “Normal weather conditions” defined.

704.9587      “Sources of natural gas” defined.

704.959        “Storage facilities” defined.

704.9595      “Substantially accurate data” defined.

704.9596      “Substantive conservation and energy efficiency program” defined.

704.9597      “Total resource cost test” defined.

704.9598      “Tracking period” defined.

704.960        “Unaccounted for gas” defined.

704.9605      “Weather at maximum design conditions” defined.

704.9608      Adoption by reference of FERC Account No. 182.3 from Uniform System of Accounts of Federal Energy Regulatory Commission.

Informational Reports

704.961        Submission of informational report and updates.

704.9615      Comprehensive summary of informational report.

704.963        Maps of major facilities for supply of gas and sources of natural gas.

704.964        Projection of future prices.

704.9645      Forecasts of sales volumes and annual peak demand.

704.9655      Forecast for base growth; assessments of base conservation; levels of energy savings or reduction in demand.

704.966        Information regarding major facilities; consideration of options for major facilities.

704.9665      Criteria for retirement of major facilities.

704.9675      Discussion of alternative strategies.

704.968        Plan for supply of gas; long-term arrangements for supply, storage and transportation of gas.

704.9687      Order accepting informational report or specifying inadequacies.

Conservation and Energy Efficiency Programs

704.9702      Purpose; applicability.

704.9704      Implementation of substantive programs using equity adder methodology for cost recovery.

704.9706      Conservation and energy efficiency plan: Submission; periodic filing; eligibility of programs to recover costs; order accepting plan or specifying inadequacies.

704.9708      Conservation and energy efficiency plan: Development and contents.

704.9712      Annual conservation and energy efficiency plan reports and analyses.

704.9714      Costs of implementing substantive programs: Accounting; recovery of costs.

704.9716      Use of general revenue decoupling methodology in lieu of equity adder methodology.

704.9718      Recovery or refund of deferred general revenue; general revenue decoupling adjustment rate.

GAS INFRASTRUCTURE EXPANSION RELATED TO PROGRAM OF ECONOMIC DEVELOPMENT

704.974        Definitions.

704.9741      “Alternative cost-recovery methodology” defined.

704.9742      “Direct benefits” defined.

704.9743      “Gas infrastructure” defined.

704.9744      “Gas infrastructure expansion activity” defined.

704.9745      “Gas infrastructure expansion application” defined.

704.9746      “Gas infrastructure expansion costs” defined.

704.9747      “Gas infrastructure expansion rates” defined.

704.9748      “Indirect benefits” defined.

704.9749      “Program of economic development” defined.

704.975        “Revenue requirement” defined.

704.9751      “Underserved” defined.

704.9752      “Unserved” defined.

704.9753      Gas infrastructure expansion application: Requirements and contents; written order by Commission.

704.9754      Utility may amend certificate of public convenience and necessity for infrastructure expansion activity; conditions.

704.9755      Utility applying for infrastructure expansion must provide notice to benefitting customers; contents; requirements.

704.9756      Adoption of alternative cost-recovery methodologies; factors for consideration by Commission; accounting standards for public utility collecting gas infrastructure expansion rate; conditions and limitations on collecting such rate.

704.9757      Commission order relating to infrastructure expansion application is not a determination of prudency of such activity; public utility shall seek determination of prudency in general rate application; requirements of application.

704.9758      Utility required to file annual report with Commission; contents; termination of requirement.

UTILITY SERVICE PROVIDED TO MOBILE HOME PARKS

704.980        Definitions.

704.981        “Common area” interpreted.

704.982        Lines and equipment: Adoption of federal safety standards; reporting of recommendations resulting from examination and testing.

704.983        Service charge: Deposit and use of money received; disposition of interest.

704.984        Service charge: Approval required for withdrawal; application for approval; notice of application.

704.985        Determination of charge to tenants for utility service when landlord is billed by utility or alternative seller.

704.986        Maintenance of records by landlord.

704.987        Annual report: Filing; contents.

704.988        Assessment and collection of late charge.

704.989        Notice of proposed increase in utility rates; notice of increase in charge for service.

704.990        Refunds to tenants and former tenants.

704.991        Termination of landlord’s interest in mobile home park: Duty of landlord to file evidence of transfer of money in certain accounts.

 

GENERAL PROVISIONS

      NAC 704.005  Definitions. (NRS 703.025, 704.210)  As used in this chapter, unless the context otherwise requires, the words and terms defined in NAC 704.0052 to 704.009, inclusive, have the meanings ascribed to them in those sections.

     [Pub. Service Comm’n, Gen. Order 19 Rule 101, eff. 6-9-77]—(NAC A 1-11-91; 10-25-95; A by Pub. Utilities Comm’n by R010-05, 9-7-2005; R167-05, 2-23-2006; R136-07, 1-30-2008; R070-07, 4-17-2008)

      NAC 704.0052  “Access line” defined. (NRS 703.025, 704.210)  “Access line” means any connection between a customer and a carrier that provides the customer with access to telecommunication in Nevada.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.0054  “Basic network service” defined. (NRS 703.025, 704.210)  “Basic network service” has the meaning ascribed to it in NRS 704.006.

     (Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

      NAC 704.0055  “Basic service” defined. (NRS 703.025, 704.210)  “Basic service” means the provision to a customer of telephone service that provides access to the public switched telephone network, which includes a single-party access line or trunk, dial tone, touch tone, local usage, expanded local calling where available, access to emergency 911 service, and single-line directory listing. Basic service includes services provided through an alternative voice service, as that term is defined in subsection 4 of NRS 704.68881.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A 10-25-95; A by Pub. Utilities Comm’n by R006-09, 10-27-2009)

      NAC 704.0056  “Business line service” defined. (NRS 703.025, 704.210)  “Business line service” has the meaning ascribed to it in NRS 704.008.

     (Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

      NAC 704.006  “Commission” defined. “(NRS 703.025, 704.210)  “Commission” means the Public Utilities Commission of Nevada.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91)

      NAC 704.0065  “Competitive service” defined. (NRS 703.025, 704.210)  “Competitive service” means a service which is provided by a small-scale provider of last resort and which has been classified as a competitive service pursuant to NAC 704.6806 to 704.68076, inclusive.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.0066  “Competitive supplier” defined. (NRS 703.025, 704.210)  “Competitive supplier” has the meaning ascribed to it in NRS 704.011.

     (Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

      NAC 704.0068  “Deregulated service” defined. (NRS 703.025, 704.210)  “Deregulated service” means a service which is provided by a small-scale provider of last resort and which is:

     1.  Determined by the Commission to be fully exempt from regulation; or

     2.  Exempt as a matter of law.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.007  “Deregulation” defined. (NRS 703.025, 704.210)  “Deregulation” means partial or total exemption from regulation by the Commission of a service that the Commission determines to be competitive and includes exemption from tariff.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91)

      NAC 704.0075  “Discretionary service” defined. (NRS 703.025, 704.210)  “Discretionary service” means a service which is provided by a small-scale provider of last resort and has been classified as a discretionary service pursuant to NAC 704.6806 to 704.68076, inclusive.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.0076  “Energy efficiency contract” defined. (NRS 703.025, 704.210)  “Energy efficiency contract” has the meaning ascribed to it in paragraph (a) of subsection 9 of NRS 704.7821.

     (Added to NAC by Pub. Utilities Comm’n by R167-05, eff. 2-23-2006)

      NAC 704.00765  “Energy efficiency measure” defined. (NRS 703.025, 704.210)  “Energy efficiency measure” has the meaning ascribed to it in NRS 704.7802.

     (Added to NAC by Pub. Utilities Comm’n by R167-05, eff. 2-23-2006)

      NAC 704.0077  “Essential service” defined. (NRS 703.025, 704.210)  “Essential service” means a service which is not classified as discretionary, competitive or deregulated.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95)

      NAC 704.0079  “Exchange” defined. (NRS 703.025, 704.210)  “Exchange” means a geographic unit approved by the Commission for the administration and pricing of a telecommunication service in a specified area.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95)

      NAC 704.008  “Exemption from tariff” defined. (NRS 703.025, 704.210)  “Exemption from tariff” means the partial or full exemption from the requirement of approval by the Commission of changes in the terms, conditions, and pricing decisions for a service that the Commission determines to be competitive.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91)

      NAC 704.0085  “Flexibility of pricing” defined. (NRS 703.025, 704.210)  “Flexibility of pricing” means flexibility to establish and maintain a schedule of rates and charges which contains the minimum and maximum rates for each type of service provided and to change a rate within the approved range pursuant to the procedures of NAC 704.7475 and 704.7477.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A by Pub. Utilities Comm’n by R211-03, 4-5-2004)

      NAC 704.00861  “Incumbent local exchange carrier” defined. (NRS 703.025, 704.210)  “Incumbent local exchange carrier” has the meaning ascribed to it in NRS 704.0135.

     (Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

      NAC 704.00862  “Interexchange carrier” defined. (NRS 703.025, 704.210)  “Interexchange carrier” has the meaning ascribed to it in NRS 704.0137.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.00863  “Interruptible irrigation sales” defined. (NRS 703.025, 704.210)  “Interruptible irrigation sales” means the sale of electricity which is used for the sole purpose of pumping water to irrigate land for agricultural purposes and which is subject to the rate for interruptible service established pursuant to NAC 704.673.

     (Added to NAC by Pub. Utilities Comm’n by R070-07, eff. 4-17-2008)

      NAC 704.00864  “Intraexchange carrier” defined. (NRS 703.025, 704.210)  “Intraexchange carrier” means a person providing intrastate service for a fee within an exchange.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95)

      NAC 704.00868  “Local area of transport and access” and “LATA” defined. (NRS 703.025, 704.210)  “Local area of transport and access” or “LATA” means an area within which Nevada Bell may operate pursuant to the order in United States v. American Telephone and Telegraph Co., 552 F. Supp. 131 (D.C. 1982). The term is equivalent to “local access and transport area” as used in that order.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95)

      NAC 704.0087  “Operator service” defined. (NRS 703.025, 704.210)  “Operator service” means live or automated long distance operator service accessible from a public telephone or semipublic telephone in this State and provided by a telecommunication provider which provides credit card, collect, information or other operator services.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.00872  “Other essential service” defined. (NRS 703.025, 704.210)  “Other essential service” means an essential service other than service which is a basic service.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95)

      NAC 704.008723  “Portfolio energy credit” defined. (NRS 703.025, 704.210)  “Portfolio energy credit” has the meaning ascribed to it in NRS 704.7803.

     (Added to NAC by Pub. Utilities Comm’n by R167-05, eff. 2-23-2006)

      NAC 704.008727  “Portfolio energy system or efficiency measure” defined. (NRS 703.025, 704.210)  “Portfolio energy system or efficiency measure” has the meaning ascribed to it in NRS 704.7804.

     (Added to NAC by Pub. Utilities Comm’n by R167-05, eff. 2-23-2006)

      NAC 704.00873  “Presiding officer” defined. (NRS 703.025, 704.210)  “Presiding officer” has the meaning ascribed to it in NAC 703.090.

     (Added to NAC by Pub. Utilities Comm’n by R010-05, eff. 9-7-2005)

      NAC 704.00876  “Provider of last resort” defined. (NRS 703.025, 704.210)  “Provider of last resort” has the meaning ascribed to it in NRS 704.018.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.0088  “Reseller” defined. (NRS 703.025, 704.210)  “Reseller” means a telecommunication provider who does not own any facilities for transmission, and whose primary business involves subscribing to services from another telecommunication provider and reselling those services for profit.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.00882  “Small-scale provider of last resort” defined. (NRS 703.025, 704.210)  “Small-scale provider of last resort” has the meaning ascribed to it in NRS 704.023.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.00883  “Telecommunication” defined. (NRS 703.025, 704.210)  “Telecommunication” has the meaning ascribed to it in NRS 704.025.

     (Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

      NAC 704.008835  “Telecommunication provider” and “telephone company” defined. (NRS 703.025, 704.210)  “Telecommunication provider” or “telephone company” means any person required to obtain from the Commission a certificate of public convenience and necessity pursuant to NRS 704.330 to provide telecommunication service. The term does not include hotels, motels, hospitals or other aggregators of telecommunication service for transient customers.

     (Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

      NAC 704.00884  “Telecommunication service” and “telephone service” defined. (NRS 703.025, 704.210)  “Telecommunication service” or “telephone service” has the meaning ascribed to it in NRS 704.028.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R211-03, 4-5-2004; R136-07, 1-30-2008)

      NAC 704.009  “Uniform System of Accounts” defined. (NRS 703.025, 704.210)  “Uniform System of Accounts” means the Uniform System of Accounts prescribed for public utilities and licensees, classes A, B, C and D, published by the Federal Communications Commission and adopted by reference in NAC 704.645.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91)

      NAC 704.0097  Deviation from provisions of chapter. (NRS 703.025, 704.210)  The Commission or presiding officer may allow deviation from any provision of this chapter if:

     1.  Good cause for the deviation appears;

     2.  The person requesting the deviation provides a specific reference to each provision of this chapter from which the deviation is requested; and

     3.  The Commission finds that the deviation is in the public interest and is not contrary to statute.

     (Added to NAC by Pub. Utilities Comm’n by R047-02, eff. 10-24-2002; A by R010-05, 9-7-2005)

DEFERRED ACCOUNTING

      NAC 704.023  Definitions. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)  As used in NAC 704.023 to 704.195, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.024 to 704.063, inclusive, have the meanings ascribed to them in those sections.

     (Supplied in codification; A by Pub. Service Comm’n, eff. 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R116-03, 10-30-2003; R084-05, 10-31-2005; R202-05, 11-13-2006; R076-11, 5-30-2012)

      NAC 704.024  “Adjustment date” defined. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)  “Adjustment date” means the end of the calendar year for an electric utility for the purposes of a deferred energy application, or the end of the calendar month selected by a gas utility for the purposes of a deferred energy application or an annual rate adjustment application.

     (Added to NAC by Pub. Service Comm’n, eff. 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R071-07, 10-31-2007; R076-11, 5-30-2012)

      NAC 704.030  “Amortization period” defined. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)  “Amortization period” means:

     1.  For an electric utility not making quarterly adjustments to its deferred energy accounting adjustment, such period, not to exceed 12 months, after the end of the prior related test period, as determined by the Commission.

     2.  For a gas utility not making quarterly adjustments to its deferred energy accounting adjustment, such period, not to exceed 12 months, after the end of the prior related test period, as determined by the Commission.

     [Pub. Service Comm’n, Gen. Order 21 part § 2.2, eff. 11-8-79]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R071-07, 10-31-2007; R076-11, 5-30-2012)

      NAC 704.031  “Annual rate adjustment application” defined. (NRS 703.025, 704.110, 704.185, 704.210)  “Annual rate adjustment application” means an application filed pursuant to subsection 9 of NRS 704.110 by a gas utility making quarterly adjustments to its base tariff energy rate.

     (Added to NAC by Pub. Utilities Comm’n by R202-05, eff. 11-13-2006; A by R076-11, 5-30-2012)

      NAC 704.032  “Base tariff energy rate” defined. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)  “Base tariff energy rate” means:

     1.  For an electric utility, the rate determined by dividing the cost of fuel for electric generation and purchased power, reduced by any revenue from off-system sales for the test period, by the total megawatt-hours that have been sold, exclusive of off-system sales, for the test period, except that if a regulation of the Commission or a specific fuel or purchased power contract so specifies, the costs and benefits must be treated in accordance with the regulation or the terms and conditions of the contract;

     2.  For a gas utility that does not make quarterly adjustments, the rate determined by dividing the cost of purchased gas by applicable sales as described in NAC 704.135; or

     3.  For a gas utility that makes quarterly adjustments, the rate determined pursuant to the methodology determined by the Commission pursuant to NAC 704.161.

     (Added to NAC by Pub. Service Comm’n, eff. 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R084-05, 10-31-2005; R202-05, 11-13-2006; R071-07, 10-31-2007; R076-11, 5-30-2012)

      NAC 704.035  “Deferred energy accounting” defined. (NRS 703.025, 704.185, 704.187, 704.210)  “Deferred energy accounting” means an accounting practice which provides for the monthly deferral of increased or decreased energy costs experienced during a specific period and the amortization of those costs during a subsequent period to the extent that:

     1.  An electric utility does not collect more or less than its actual cost of fuel for electric generation and purchased power which is prudently incurred; or

     2.  A gas utility does not collect more or less than its actual cost of purchased gas which is prudently incurred.

     [Pub. Service Comm’n, Gen. Order 21 § 2.6, eff. 11-8-79]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001)

      NAC 704.037  “Deferred energy accounting adjustment” defined. (NRS 703.025, 704.185, 704.187, 704.210)  “Deferred energy accounting adjustment” means the rate determined by dividing the deferred energy balance for the test period by the total Nevada jurisdictional kilowatt-hours, exclusive of interruptible irrigation sales, or therms which have been sold during the test period as described in NAC 704.101 and 704.111.

     (Added to NAC by Pub. Service Comm’n, eff. 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R070-07, 4-17-2008)

      NAC 704.039  “Deferred energy application” defined. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)  “Deferred energy application” means an application filed by:

     1.  An electric utility pursuant to subsection 11 of NRS 704.110 and NRS 704.187; or

     2.  A gas utility to clear its deferred energy accounts pursuant to NAC 704.023 to 704.195, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R100-01, eff. 12-17-2001; A by R071-07, 10-31-2007; R076-11, 5-30-2012)

      NAC 704.045  “Deferred energy balance” defined. (NRS 703.025, 704.110, 704.185, 704.187, 704.210, 704.7881)  “Deferred energy balance” means the amount contained in, for electric operations, FERC Account Nos. 182.3 and 254 and, for gas operations, FERC Account No. 191, and represents:

     1.  The difference between revenue received from the base tariff energy rate and the jurisdictional allocation of the amounts contained in the appropriate accounts listed in paragraphs (a), (b), (c), (d) and (g) of subsection 2 of NAC 704.120, which must be adjusted by the amounts contained in the appropriate subaccounts of the accounts set forth in paragraphs (e) and (h) of subsection 2 of NAC 704.120;

     2.  The amount resulting from the application of the deferred energy accounting adjustment to sales, as contained in the appropriate revenue accounts;

     3.  Revenues from interruptible irrigation sales;

     4.  The Nevada jurisdictional portion of refunds from suppliers, including any interest earned thereon;

     5.  Carrying charges as described in NAC 704.150;

     6.  The amount of any provided discount resulting from participation in the Economic Development Electric Rate Rider Program established pursuant to NRS 704.7875; and

     7.  Any amount recovered by order of the Commission pursuant to NRS 704.7879.

     [Pub. Service Comm’n, Gen. Order 21 § 2.5, eff. 11-8-79]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R071-07, 10-31-2007; R070-07, 4-17-2008; R076-11, 5-30-2012; R043-12, 11-1-2012; R072-13, 12-23-2013)

      NAC 704.048  “Electric utility” defined. (NRS 703.025, 704.187, 704.210)  “Electric utility” means an electric utility that is required to use deferred energy accounting pursuant to NRS 704.187.

     (Added to NAC by Pub. Utilities Comm’n by R100-01, eff. 12-17-2001)

      NAC 704.050  “Energy costs” defined. (NRS 703.025, 704.185, 704.187, 704.210)  “Energy costs” means expenses associated with the acquisition of fuel for electric generation, purchased power and purchased gas as those expenses are defined in the Uniform System of Accounts of the Federal Energy Regulatory Commission and in the accounts which have been created by NAC 704.023 to 704.195, inclusive.

     [Pub. Service Comm’n, Gen. Order 21 § 2.7, eff. 11-8-79]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001)

      NAC 704.055  “FERC account” defined. (NRS 703.025, 704.185, 704.187, 704.210)  “FERC account” means an account contained in the Uniform System of Accounts created by the Federal Energy Regulatory Commission.

     [Pub. Service Comm’n, Gen. Order 21 § 2.8, eff. 11-8-79]—(NAC A 11-3-87)

      NAC 704.056  “Gas utility” defined. (NRS 703.025, 704.110, 704.185, 704.210)  “Gas utility” means a gas utility that elects to use deferred energy accounting pursuant to NRS 704.185, including a gas utility that is authorized to make quarterly adjustments to its base tariff energy rate pursuant to subsection 8 of NRS 704.110.

     (Added to NAC by Pub. Utilities Comm’n by R100-01, eff. 12-17-2001; A by R202-05, 11-13-2006; R076-11, 5-30-2012)

      NAC 704.058  “Off-system sales” defined. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)  “Off-system sales” means the short-term sale of energy or the capacity to produce energy, or both, where there is no commitment of the continuous availability of the energy. The term includes the short-term sale of energy provided pursuant to a tariff offering energy imbalance service.

     (Added to NAC by Pub. Service Comm’n, eff. 11-3-87; A by Pub. Utilities Comm’n by R076-11, 5-30-2012)

      NAC 704.061  “Purchased gas” defined. (NRS 703.025, 704.185, 704.210)  “Purchased gas” means natural gas purchased for resale.

     (Added to NAC by Pub. Utilities Comm’n by R100-01, eff. 12-17-2001)

      NAC 704.063  “Test period” defined. (NRS 703.025, 704.185, 704.187, 704.210)  “Test period” means the 12 calendar months ending on the adjustment date.

     (Added to NAC by Pub. Service Comm’n, eff. 11-3-87)

      NAC 704.075  Applicability; notice by gas utility of its intent to use deferred energy accounting. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)

     1.  The provisions of NAC 704.023 to 704.195, inclusive, apply to:

     (a) Each electric utility that is required to use deferred energy accounting pursuant to NRS 704.187; and

     (b) Each gas utility that elects to use deferred energy accounting pursuant to NRS 704.185.

     2.  Before a gas utility institutes procedures for the use of deferred energy accounting, the gas utility must notify the Commission in writing of its intent to do so. The notice must include the base tariff energy rate and all supporting data required to calculate the rate according to the formulas provided in NAC 704.023 to 704.195, inclusive.

     [Pub. Service Comm’n, Gen. Order 21 § 1.21, eff. 11-8-79]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R076-11, 5-30-2012)

      NAC 704.090  Gas utilities: Termination of deferred energy accounting. (NRS 703.025, 704.185, 704.210)

     1.  A gas utility that uses deferred energy accounting pursuant to NAC 704.023 to 704.195, inclusive, may apply to the Commission for authority to terminate those accounting procedures. The gas utility may cease using those accounting procedures upon authorization from the Commission.

     2.  An application filed pursuant to this section must contain a report showing the Nevada jurisdictional earned rate of return for the specific operating department applying for termination for the most current 12 calendar months.

     3.  Within 45 days after the date on which the Commission authorizes termination, the gas utility shall file for the specific operating department which applied for termination a report containing:

     (a) The Nevada jurisdictional earned rate of return for the 12 calendar months ending on the date of termination.

     (b) A statement of the cumulative balance as of the date of termination. The Commission will issue an appropriate order for the disposition of this balance.

     [Pub. Service Comm’n, Gen. Order 21 § 1.23, eff. 11-8-79]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001)

      NAC 704.095  Deferred energy accounts: General requirements. (NRS 703.025, 704.185, 704.187, 704.210)  Deferred energy accounts:

     1.  May be used only to carry out deferred energy accounting procedures and are not amendments to any other regulation of the Commission; and

     2.  Must be consistent with the provisions of NAC 704.023 to 704.195, inclusive.

     [Pub. Service Comm’n, Gen. Order 21 § 3.1, eff. 11-8-79]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001)

      NAC 704.101  Deferred energy accounts: Required entries. (NRS 703.025, 704.110, 704.185, 704.187, 704.210, 704.7881)

     1.  Each electric utility and gas utility using deferred energy accounting shall maintain a deferred energy account. Entries must be made to the deferred energy account at the end of each month as follows:

     (a) For electric operations:

          (1) A debit entry or credit entry, if negative, to a subaccount of FERC Account No. 182.3, if the cumulative month-end balance is a debit, or a subaccount of FERC Account No. 254, if the cumulative month-end balance is a credit, equal to the cost of both fuel for electric generation and purchased power, reduced for revenues from off-system sales, distributed to the applicable jurisdiction by the ratio of the jurisdiction’s contribution to the output to lines, less the amount of revenue derived by applying the base tariff energy rate to that month’s applicable jurisdictional sales exclusive of interruptible irrigation sales.

          (2) A separate credit entry or debit entry, if negative, equal to the amount of revenue derived by applying the appropriate deferred energy accounting adjustment to that month’s applicable jurisdictional sales, exclusive of interruptible irrigation sales.

          (3) A credit entry equal to the amount of revenue from interruptible irrigation sales.

          (4) A credit entry equal to the jurisdictional amount of any cash refund, including interest if applicable, received from suppliers of fuel or purchased power.

          (5) A separate debit entry or credit entry, if negative, equal to the product of the ending balance multiplied by one-twelfth of the authorized rate of return as provided in NAC 704.150.

          (6) A debit entry equal to the amount of any provided discount resulting from participation in the Economic Development Electric Rate Rider Program established pursuant to NRS 704.7875.

          (7) A credit entry equal to any amount recovered by order of the Commission pursuant to NRS 704.7879.

     (b) For gas operations:

          (1) A debit entry or credit entry to FERC Account No. 191, if negative, equal to the cost of purchased gas for the month distributed to applicable jurisdictional sales by the ratio of those jurisdictional sales to total sales, less the amount of the revenue derived by applying the base tariff energy rate to that month’s applicable jurisdictional sales.

          (2) A credit entry or debit entry, if negative, equal to the amount of revenue derived by applying the appropriate deferred energy accounting adjustment to that month’s applicable jurisdictional sales.

          (3) A credit entry equal to the jurisdictional amount of any cash refund, including interest if applicable, received from suppliers of purchased gas.

          (4) A debit entry or credit entry, if negative, equal to the product of the ending balance multiplied by one-twelfth of the authorized rate of return as provided in NAC 704.150.

     2.  As used in this section, “output to lines” means the net generation by the system’s own generation, plus purchased power and less energy applicable to off-system sales.

     (Added to NAC by Pub. Service Comm’n, eff. 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R071-07, 10-31-2007; R070-07, 4-17-2008; R051-09, 1-28-2010; R076-11, 5-30-2012; R043-12, 11-1-2012; R072-13, 12-23-2013; R117-13, 6-23-2014)

      NAC 704.105  Account for energy cost adjustments. (NRS 703.025, 704.185, 704.187, 704.210)  An account for energy cost adjustments must:

     1.  Contain contra entries to:

     (a) FERC Account No. 182.3 or 254, whichever is applicable, for electric operations; or

     (b) FERC Account No. 191, for gas operations.

     2.  Be debited or credited with the amount of the amortized energy cost differential for each month of each period of amortization.

     3.  Be maintained in a manner consistent with:

     (a) FERC Account No. 182.3 or 254, whichever is applicable, for electric operations; or

     (b) FERC Account No. 191, for gas operations.

     [Pub. Service Comm’n, Gen. Order 21 § 3.12, eff. 11-8-79]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R071-07, 10-31-2007; R051-09, 1-28-2010)

      NAC 704.111  Clearing deferred energy accounts; calculation and application of deferred energy accounting adjustment. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)

     1.  For each electric utility not making quarterly adjustments to its deferred energy accounting adjustment:

     (a) The electric utility shall clear annually any debit balance in the subaccount of FERC Account No. 182.3 or credit balance in the subaccount of FERC Account No. 254 over an approved period by dividing the cumulative debit or credit balance by the total Nevada jurisdictional kilowatt-hours which have been sold, exclusive of interruptible irrigation sales, during the test period. The resulting positive or negative deferred energy accounting adjustment must be applied to each Nevada jurisdictional customer’s monthly use of energy, exclusive of interruptible irrigation sales, expressed in kilowatt-hours.

     (b) The electric utility shall not bill or credit the deferred energy accounting adjustment to the customers of the electric utility until authorized by the Commission after a proper deferred energy application is made therefor.

     2.  For each gas utility not making quarterly adjustments to its deferred energy accounting adjustment:

     (a) The gas utility shall clear annually any debit or credit balance in FERC Account No. 191 by dividing the cumulative debit or credit balance by the total Nevada jurisdictional therms which have been sold during the test period. The resulting positive or negative deferred energy accounting adjustment must be applied to each Nevada jurisdictional customer’s monthly use of energy expressed in therms.

     (b) The gas utility shall not bill or credit the deferred energy accounting adjustment to the customers of the gas utility until authorized by the Commission after a proper deferred energy application or annual rate adjustment application is made therefor.

     (Added to NAC by Pub. Service Comm’n, eff. 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R202-05, 11-13-2006; R071-07, 10-31-2007; R070-07, 4-17-2008; R051-09, 1-28-2010; R076-11, 5-30-2012)

      NAC 704.116  Deferred energy applications; calculation and effective period of base tariff energy rate and deferred energy accounting adjustment. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)

     1.  Except as otherwise provided for an electric utility or a gas utility which adjusts its deferred energy accounting adjustment and its base tariff energy rate on a quarterly basis and except as otherwise provided in subsection 2 or 3, each electric utility and gas utility shall file annually with the Commission a deferred energy application for each of its jurisdictional operating departments in this State setting forth its calculations of the deferred energy accounting adjustment and the base tariff energy rate.

     2.  A gas utility that is not authorized to make quarterly adjustments to its base tariff energy rate may file with the Commission a semiannual deferred energy application if the net change in revenue necessary to clear the change in the deferred energy account balance at the end of the 6-month period exceeds plus or minus 5 percent of the total revenue at the last authorized rates for purchased gas.

     3.  A gas utility that makes quarterly adjustments to its base tariff energy rate pursuant to subsection 8 of NRS 704.110 shall file an annual rate adjustment application with the Commission for each of its jurisdictional operating departments in this State. Except for a gas utility that makes quarterly adjustments to its deferred energy accounting adjustment, the application must set forth the annual adjustment to the deferred energy accounting adjustment. The annual rate adjustment application must be filed not later than the date specified by the Commission pursuant to subsection 3 of NAC 704.161.

     4.  Each electric utility shall file its deferred energy application pursuant to subsection 3 of NRS 704.187. Each gas utility shall file its deferred energy application not later than 65 days after the adjustment date.

     5.  If an electric utility files a deferred energy application while a general rate application is pending before the Commission, the electric utility shall:

     (a) Submit with its deferred energy application information relating to the cost of service and rate design; and

     (b) Supplement its general rate application with the same information, if such information was not submitted with the general rate application.

     6.  Except for an electric utility or a gas utility that makes quarterly adjustments to its deferred energy accounting adjustment, the deferred energy accounting adjustment of an electric utility or a gas utility must be calculated pursuant to NAC 704.101 and 704.111.

     7.  The base tariff energy rate of a gas utility that is not authorized by the Commission to make quarterly adjustments to its base tariff energy rate must be calculated pursuant to NAC 704.135.

     8.  The base tariff energy rate of a gas utility that is not authorized by the Commission to make quarterly adjustments to its base tariff energy rate remains in effect until a revised rate is authorized by the Commission.

     9.  Except for an electric utility or a gas utility that makes quarterly adjustments to its deferred energy accounting adjustment, the deferred energy accounting adjustment of an electric utility or a gas utility remains in effect until the end of the designated amortization period or until an amended rate is authorized by the Commission, whichever occurs first.

     (Added to NAC by Pub. Service Comm’n, eff. 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R084-05, 10-31-2005; R202-05, 11-13-2006; R071-07, 10-31-2007; R076-11, 5-30-2012)

      NAC 704.117  Gas utilities: Application to revise base tariff energy rate. (NRS 703.025, 704.110, 704.185, 704.210)  In accordance with subsection 7 of NRS 704.110, a gas utility may file an application to revise its base tariff energy rate every 30 days unless the Commission has approved quarterly adjustments to the base tariff energy rate pursuant to NRS 704.100 and 704.110.

     (Added to NAC by Pub. Utilities Comm’n by R084-05, eff. 10-31-2005; A by R202-05, 11-13-2006; R071-07, 10-31-2007; R076-11, 5-30-2012)

      NAC 704.1172  Gas utilities making quarterly adjustments to base tariff energy rate: Application to make quarterly adjustments to deferred energy accounting adjustment. (NRS 703.025, 704.110, 704.185, 704.210)

     1.  A gas utility which makes quarterly adjustments to its base tariff energy rate must file an application with the Commission pursuant to subsection 8 of NRS 704.110 and must receive approval from the Commission before the utility may make quarterly adjustments to its deferred energy accounting adjustment.

     2.  An application to make quarterly adjustments to its deferred energy accounting adjustment submitted by a gas utility must include, without limitation:

     (a) The rationale in support of the decision of the gas utility to apply to the Commission for approval to implement quarterly adjustments to its deferred energy accounting adjustment;

     (b) The proposed adjustment dates, filing dates and effective dates for each of the proposed quarterly adjustments to the deferred energy accounting adjustment;

     (c) The methodology proposed to be used to calculate the quarterly adjustments to the deferred energy accounting adjustment and the rationale supporting the selection of the methodology; and

     (d) The amount of the proposed initial quarterly adjustment to the deferred energy accounting adjustment.

     3.  If the Commission approves an application for a quarterly adjustment to a deferred energy accounting adjustment, the Commission will specify the adjustment dates, filing dates, effective dates, methodology and amounts to be used by the applicant.

     (Added to NAC by Pub. Utilities Comm’n by R076-11, eff. 5-30-2012)

      NAC 704.1174  Gas utilities: Application to discontinue making quarterly adjustments to deferred energy accounting adjustment and to establish deferred energy accounting adjustment pursuant to NAC 704.111 and 704.116. (NRS 703.025, 704.110, 704.185, 704.210)

     1.  A gas utility may file an application pursuant to subsection 16 of NRS 704.110 requesting approval to discontinue its authority to make quarterly adjustments to its deferred energy accounting adjustment and to establish its deferred energy accounting adjustment pursuant to NAC 704.111 and 704.116. The gas utility may cease making quarterly adjustments to its deferred energy accounting adjustment upon approval from the Commission.

     2.  The application filed pursuant to subsection 16 of NRS 704.110 must include, without limitation:

     (a) The rationale supporting the request to discontinue the utility’s authority to make quarterly adjustments to its deferred energy accounting adjustment; and

     (b) The proposed effective date of the transition.

     3.  An application submitted pursuant to subsection 16 of NRS 704.110 does not authorize a gas utility to terminate deferred energy accounting pursuant to NAC 704.090.

     (Added to NAC by Pub. Utilities Comm’n by R076-11, eff. 5-30-2012)

      NAC 704.1176  Electric utilities: Application to make quarterly adjustments to deferred energy accounting adjustment. (NRS 703.025, 704.110, 704.187, 704.210)

     1.  An electric utility must file an application with the Commission pursuant to subsection 10 of NRS 704.110 and must receive approval from the Commission before the electric utility may make quarterly adjustments to its deferred energy accounting adjustment.

     2.  An application to make quarterly adjustments to its deferred energy accounting adjustment submitted by an electric utility must include, without limitation:

     (a) The rationale in support of the decision of the electric utility to apply to the Commission for approval to implement quarterly adjustments to its deferred energy accounting adjustment;

     (b) The proposed adjustment dates, filing dates and effective dates for each of the proposed quarterly adjustments to the deferred energy accounting adjustment;

     (c) The methodology proposed to be used to calculate the quarterly adjustments to the deferred energy accounting adjustment and the rationale supporting the selection of the methodology; and

     (d) The amount of the proposed initial quarterly adjustment to the deferred energy accounting adjustment.

     3.  If the Commission approves an application for a quarterly adjustment to a deferred energy accounting adjustment, the Commission will specify the adjustment dates, filing dates, effective dates, methodology and amounts to be used by the applicant.

     (Added to NAC by Pub. Utilities Comm’n by R076-11, eff. 5-30-2012)

      NAC 704.1178  Electric utilities: Application to discontinue making quarterly adjustments to deferred energy accounting adjustment and to establish deferred energy accounting adjustment pursuant to NAC 704.111 and 704.116. (NRS 703.025, 704.110, 704.187, 704.210)

     1.  An electric utility may file an application pursuant to subsection 16 of NRS 704.110 requesting approval to discontinue its authority to make quarterly adjustments to its deferred energy accounting adjustment and to establish its deferred energy accounting adjustment pursuant to NAC 704.111 and 704.116. The electric utility may cease making quarterly adjustments to its deferred energy accounting adjustment upon approval from the Commission.

     2.  The application filed pursuant to subsection 16 of NRS 704.110 must include, without limitation:

     (a) The rationale supporting the request to discontinue the utility’s authority to make quarterly adjustments to its deferred energy accounting adjustment; and

     (b) The proposed effective date of the transition.

     (Added to NAC by Pub. Utilities Comm’n by R076-11, eff. 5-30-2012)

      NAC 704.118  Notice of certain applications, hearings thereon and quarterly adjustments to base tariff energy rate and, if applicable, deferred energy accounting adjustments. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)

     1.  An electric utility or a gas utility that files a deferred energy application pursuant to NAC 704.116, a gas utility that files an application to revise its base tariff energy rate pursuant to NAC 704.117 or a gas utility that files an annual rate adjustment application pursuant to subsection 3 of NAC 704.116 shall:

     (a) Within 10 days after filing the application, make available at each of its business offices a complete copy of the application in such form and place as to be readily accessible to and conveniently inspected by the public;

     (b) Within 10 days after filing the application, print in plain type and post at each of its business offices, in such form and place as to be readily accessible to and conveniently inspected by the public, a notice stating that the application has been filed with the Commission, describing briefly the purpose of the application, indicating that the complete application is available for public inspection on the premises and setting forth the locations where additional information may be obtained; and

     (c) Within 20 days after filing the application, submit to the Commission affidavits that indicate that the application has been filed and that the utility has complied with the provisions of paragraphs (a) and (b).

     2.  After the Commission has scheduled a date for a hearing on the application, the applicant shall, at least 10 days before the scheduled date of the hearing, give notice to its customers who are affected by the proposed increase. The first paragraph of the notice must state the date, time and place of the hearing, the total amount of the proposed increase in dollars, the estimated proposed monthly increase in dollars and the proposed percentage of increase for each class of customer or class of service. The notice must also state that the Commission may set rates which may be higher or lower than the rates proposed in the application and that additional information may be obtained from the Commission or at the offices of the electric or gas utility filing the application. The notice must be given by at least two of the following methods:

     (a) Inclusion in the regular bill of charges transmitted to the applicant’s customers.

     (b) Separate mailing to each of the applicant’s customers.

     (c) Prominent presentation in one or more forms of the media, including newspapers, television and radio, so that the notice will likely reach the applicant’s customers.

     3.  At or before the hearing, the applicant must submit a verified statement to the Commission that the notice required in subsection 2 has been given. The statement must:

     (a) Set forth the means by which, and the dates and times when, the notice was mailed, published or broadcast; and

     (b) Include, as an attachment, a copy of the notice as mailed, published or transcribed.

     4.  An electric utility shall, for each quarterly adjustment to its base tariff energy rate and, if applicable, each quarterly adjustment to its deferred energy accounting adjustment, provide:

     (a) Notice to the Commission pursuant to the provisions of paragraph (a) of subsection 11 of NRS 704.110, including, without limitation:

          (1) A copy of the notice of the quarterly adjustment to its base tariff energy rate and, if applicable, the quarterly adjustment to its deferred energy accounting adjustment that the electric utility will provide to its customers;

          (2) Supporting information for all amounts shown in the notice of the quarterly adjustment to its base tariff energy rate and, if applicable, the quarterly adjustment to its deferred energy accounting adjustment that the electric utility will provide to its customers;

          (3) The calculations supporting the change in its base tariff energy rate and, if applicable, its deferred energy accounting adjustment; and

          (4) The tariff sheets reflecting the quarterly adjustment to its base tariff energy rate and, if applicable, the quarterly adjustment to its deferred energy accounting adjustment;

     (b) Notice to its customers as required pursuant to the provisions of paragraph (b) of subsection 11 of NRS 704.110; and

     (c) A copy of the notice provided pursuant to paragraph (a) to the Regulatory Operations Staff of the Commission and to the Bureau of Consumer Protection in the Office of the Attorney General.

     5.  A gas utility that is authorized to make quarterly adjustments to its base tariff energy rate and, if applicable, quarterly adjustments to its deferred energy accounting adjustment shall, for each quarterly adjustment, provide:

     (a) Notice to the Commission pursuant to the provisions of paragraph (a) of subsection 9 of NRS 704.110, including, without limitation:

          (1) A copy of the notice of the quarterly adjustment to its base tariff energy rate and, if applicable, the quarterly adjustment to its deferred energy accounting adjustment that the gas utility will provide to its customers;

          (2) Supporting information for all amounts shown in the notice of the quarterly adjustment to its base tariff energy rate and, if applicable, the quarterly adjustment to its deferred energy accounting adjustment that the gas utility will provide to its customers; and

          (3) The calculations supporting the change in its base tariff energy rate and, if applicable, its deferred energy accounting adjustment;

     (b) Notice to its customers as required pursuant to the provisions of paragraph (b) of subsection 9 of NRS 704.110; and

     (c) A copy of the notice provided pursuant to paragraph (a) to the Regulatory Operations Staff of the Commission and to the Bureau of Consumer Protection in the Office of the Attorney General.

     (Added to NAC by Pub. Utilities Comm’n by R116-03, eff. 10-30-2003; A by R084-05, 10-31-2005; R202-05, 11-13-2006; R071-07, 10-31-2007; R076-11, 5-30-2012)

      NAC 704.120  Adoption by reference of certain accounts from Uniform System of Accounts of Federal Energy Regulatory Commission. (NRS 703.025, 704.110, 704.185, 704.187, 704.210, 704.215)

     1.  The Commission hereby adopts by reference from the Uniform System of Accounts of the Federal Energy Regulatory Commission those accounts enumerated in this section as FERC accounts. These accounts are contained in 18 C.F.R. Parts 101 and 201, and the volume of the Code of Federal Regulations containing these Parts may be purchased by mail from the Superintendent of Documents, United States Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://bookstore.gpo.gov, for the price of $68. These Parts may be obtained free of charge on the Internet at http://www.gpoaccess.gov/cfr/index.html.

     2.  The following accounts are hereby adopted:

     (a) Fuel for electric generation, FERC Account Nos. 501 and 547.

     (b) Steam From Other Sources, FERC Account No. 503.

     (c) Purchased power, FERC Account No. 555.

     (d) Transmission of electricity by others, FERC Account No. 565.

     (e) Sales for resale, electric, FERC Account No. 447.

     (f) Income tax accounts, electric and gas, FERC Account Nos. 190, 236, 283, 409.1, 410.1 and 411.1.

     (g) Gas for resale, FERC Account Nos. 728, 755, 760, 777, 800 to 809.2, inclusive, 811, 812 and 858.

     (h) Sales for resale, gas, FERC Account No. 483.

     (i) Purchased gas cost adjustments, FERC Account No. 805.1.

     (j) Unrecovered purchased gas costs, FERC Account No. 191.

     (k) Interest and dividend income, FERC Account No. 419.

     (l) Other regulatory assets, electric, FERC Account No. 182.3.

     (m) Other expenses, FERC Account No. 557.

     (n) Other regulatory liabilities, FERC Account No. 254.

     (o) Other interest expense, FERC Account No. 431.

     [Pub. Service Comm’n, Gen. Order 21 § 3.2, eff. 11-8-79; A 8-21-81]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R071-07, 10-31-2007; R051-09, 1-28-2010; R076-11, 5-30-2012)

      NAC 704.135  Gas utilities: Calculation of certain base tariff energy rates and recommendation of preferred base tariff energy rate. (NRS 703.025, 704.110, 704.185, 704.210)

     1.  A gas utility that does not make quarterly adjustments to its base tariff energy rate (BTER) shall, pursuant to subsections 2 and 3, calculate a forecasted and a historic base tariff energy rate for purchased gas and recommend its preferred base tariff energy rate to the Commission.

     2.  The gas utility shall calculate a forecasted base tariff energy rate based on the following formula:

 

     Where:

     PG = Sales volumes of the gas utility, including an adjustment for projected shrinkage in the distribution system and the consumption of gas by an upstream pipeline company, used to calculate purchases necessary to support the given level of sales for the test period expressed in therms.

     UG = The projected weighted average unit price that will be paid for gas during the period in which the rate will be in effect.

     SG = Actual volumes of gas sold for the test period expressed in therms.

     FG = Fixed costs associated with the purchase of gas for the period in which the rate will be in effect as may be enumerated in the accounts specified in paragraph (g) of subsection 2 of NAC 704.120.

     VG = Variable transportation costs.

     TG = Distribution system shrinkage costs paid by transportation customers.

     Then:

                     (PG X UG) + FG + (VG – TG)

     BTER = ^{__________________________________}

                                           SG

     3.  Except as otherwise provided in subsection 4, the gas utility shall calculate a historic base tariff energy rate based on the following formula:

 

     Where:

     PG = Sales volumes of the gas utility, including an adjustment for projected shrinkage in the distribution system and the consumption of gas by an upstream pipeline company, used to calculate purchases necessary to support the given level of sales for the test period expressed in therms.

     UG = The weighted average of the latest experienced unit prices paid for gas during the test period.

     SG = Actual volumes of gas sold for the test period expressed in therms.

     FG = Annualized fixed costs associated with the purchase of gas for the test period as may be enumerated in the accounts specified in paragraph (g) of subsection 2 of NAC 704.120.

     VG = Variable transportation costs.

     TG = Distribution system shrinkage costs paid by transportation customers.

     Then:

                     (PG X UG) + FG + (VG – TG)

     BTER = ^{__________________________________}

                                           SG

 

     4.  A gas utility that makes quarterly adjustments to its base tariff energy rate shall calculate its base tariff energy rate using the methodology determined by the Commission pursuant to NAC 704.161.

     [Pub. Service Comm’n, Gen. Order 21 § 3.33, eff. 11-8-79; A 8-21-81]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R084-05, 10-31-2005; R202-05, 11-13-2006; R076-11, 5-30-2012)

      NAC 704.145  Additional requirements for deferred energy accounts; accounts relating to income taxes. (NRS 703.025, 704.185, 704.187, 704.210)

     1.  FERC Account No. 182.3 or, if appropriate, FERC Account Nos. 254 and 557 must be used in Nevada jurisdictional electric operations for deferred energy accounting to record monthly entries in the manner prescribed in NAC 704.101 and 704.105.

     2.  FERC Account Nos. 191 and 805.1 must be used in Nevada jurisdictional gas operations to record the monthly entries in the manner prescribed in NAC 704.101 and 704.105.

     3.  The contra entries to the deferred energy accounts referred to in subsections 1 and 2 must be made to a subaccount of FERC Account No. 557, for electric cost differentials, and FERC Account No. 805.1, for gas cost differentials.

     4.  The income tax effect applicable to the debit and credit entries to the deferred energy accounts set forth in NAC 704.023 to 704.195, inclusive, must be recorded in the following FERC accounts:

 

Ê These accounts must be maintained so as to separate the income tax effect between electric and gas operations. The accounts must be maintained in a manner consistent with FERC Account No. 191, for gas operations, and FERC Account No. 182.3 or 254, for electric operations.

     [Pub. Service Comm’n, Gen. Order 21 § 4.0, eff. 11-8-79; A 8-21-81]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R071-07, 10-31-2007; R051-09, 1-28-2010)

      NAC 704.150  Carrying charges. (NRS 703.025, 704.185, 704.187, 704.210)

     1.  Except as otherwise provided in subsection 3, a carrying charge must be computed on the current average monthly debit balance in the subaccount of FERC Account No. 182.3 or credit balance in the subaccount of FERC Account No. 254, for electric operations, or FERC Account No. 191, for gas operations, and must be respectively debited or credited to the account at the carrying charge rate of one-twelfth of the overall rate of return as authorized by the Commission for the particular department or division of the electric utility or gas utility, adjusted for the federal income tax applicable to the equity component of the overall rate of return computed at the applicable statutory rate. The rate of the carrying charge must be applied to the entire balance in the subaccount of FERC Account No. 182.3 or the subaccount of FERC Account No. 254, for electric operations, or FERC Account No. 191, for gas operations, net of applicable accumulated deferred income taxes, as follows:

 

Carrying charge = (carrying charge rate) x (average deferred energy balance for the month) x (1 - statutory income tax rate)

 

     2.  The contra entries for the carrying charge must be made to:

     (a) FERC Account No. 419, if a credit; or

     (b) FERC Account No. 431, if a debit.

     3.  If, in any month, the Nevada jurisdictional earned rate of return for an operating department of the electric utility or gas utility exceeds the overall rate of return last authorized by the Commission for that department, and if the average monthly balance in FERC Account No. 182.3, for electric operations, or FERC Account No. 191, for gas operations, is a debit, an adjustment amount will be calculated equal to the amount which exceeds the utility’s last authorized rate of return. The Nevada jurisdictional earned rate of return will be calculated quarterly using the 12-month period ending with the last month of the quarter and will apply to the carrying charge calculation in each month of that quarter. Carrying charges may accrue only on that portion of the debit balance which exceeds the adjustment amount.

     [Pub. Service Comm’n, Gen. Order 21 § 4.7, eff. 8-21-81; A 12-2-81]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R071-07 & R073-07, 10-31-2007; R051-09, 1-28-2010)

      NAC 704.161  Gas utilities: Application to make quarterly adjustments to base tariff energy rate. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)

     1.  Before a gas utility which purchases natural gas for resale may make quarterly adjustments to its base tariff energy rate, the utility must file an application pursuant to subsection 8 of NRS 704.110 and must receive approval from the Commission to adjust its base tariff energy rate on a quarterly basis between annual rate adjustment applications.

     2.  The application described in subsection 1 must include, without limitation:

     (a) The rationale in support of the decision of the gas utility to apply to the Commission for approval to implement quarterly adjustments to its base tariff energy rate;

     (b) The proposed filing dates and effective dates for each of the quarterly adjustments to its base tariff energy rate;

     (c) The proposed filing date and effective date for the annual rate adjustment application;

     (d) The methodology proposed to be used to calculate the quarterly adjustments to its base tariff energy rate and the rationale supporting the selection of the methodology; and

     (e) The amount of the proposed initial quarterly adjustment to the base tariff energy rate.

     3.  If the Commission approves an application described in subsection 1, the Commission will specify the filing and effective dates, methodology and amounts to be used by the applicant.

     (Added to NAC by Pub. Utilities Comm’n by R202-05, eff. 11-13-2006; A by R076-11, 5-30-2012)

      NAC 704.166  Gas utilities: Application to terminate quarterly adjustments to base tariff energy rate and to establish base tariff energy rate. (NRS 703.025, 704.110, 704.185, 704.210)

     1.  A gas utility may file an application requesting approval to terminate its authority to make quarterly adjustments to its base tariff energy rate and to establish its base tariff energy rate pursuant to NAC 704.116 or 704.117. The gas utility may cease making quarterly adjustments to its base tariff energy rate upon authorization from the Commission.

     2.  The application submitted pursuant to subsection 1 must include, without limitation:

     (a) The rationale supporting the request to terminate the utility’s authority to make quarterly adjustments to its base tariff energy rate;

     (b) The proposed effective date of the transition; and

     (c) If applicable, the proposed base tariff energy rate calculated pursuant to NAC 704.135.

     (Added to NAC by Pub. Utilities Comm’n by R202-05, eff. 11-13-2006; A by R076-11, 5-30-2012)

      NAC 704.195  Monthly reports. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)

     1.  Not later than 45 days after the end of each month in every deferred energy period, each electric utility and gas utility shall submit to the Commission a report containing all transactions and calculations affecting the deferred energy accounts. The monthly reports must include any other information or data required by the Commission to expedite or facilitate the deferred energy application or annual rate adjustment application and hearing necessary to clear the balances of deferred energy accounts.

     2.  Each electric utility shall submit in its monthly reports for electric operations the monthly cost of all energy generated and purchased, indicating:

     (a) The number of megawatt-hours generated as to quantity, cost and type of fuel used in each generating unit;

     (b) The number of megawatt-hours purchased and the cost, including demand charges, for each supplier by rate schedule or contract; and

     (c) The basis of charges and data supporting those charges.

     3.  Each gas utility shall submit in its monthly reports for gas operations the monthly cost of all gas purchased, indicating:

     (a) The quantity and cost of gas purchased from each supplier by rate schedule or contract; and

     (b) The basis of the charges and the invoices supporting the charges.

     [Pub. Service Comm’n, Gen. Order 21 § 6.1, eff. 11-8-79]—(NAC A 11-3-87; A by Pub. Utilities Comm’n by R100-01, 12-17-2001; R202-05, 11-13-2006)

RECOVERY OF VARIABLE INTEREST EXPENSE OR DIVIDENDS

      NAC 704.210  Definitions. (NRS 703.025, 704.210, 704.324)  As used in NAC 704.210 to 704.222, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.211 to 704.216, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92)

      NAC 704.211  “Amortization period” defined. (NRS 703.025, 704.210, 704.324)  “Amortization period” has the meaning ascribed to it in NAC 704.030.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92)

      NAC 704.212  “Deferred energy accounting adjustment” defined. (NRS 703.025, 704.210, 704.324)  “Deferred energy accounting adjustment” has the meaning ascribed to it in NAC 704.037.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92)

      NAC 704.213  “FERC account” defined. (NRS 703.025, 704.210, 704.324)  “FERC account” has the meaning ascribed to it in NAC 704.055.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92)

      NAC 704.214  “Test period” defined. (NRS 703.025, 704.210, 704.324)  “Test period” has the meaning ascribed to it in NAC 704.063.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92)

      NAC 704.215  “Weighted average variable interest or dividend rate” defined. (NRS 703.025, 704.210, 704.324)  “Weighted average variable interest or dividend rate” means the weighted average of the rates over the 12-month test period for all outstanding variable rate securities issued by the utility and included in the Nevada jurisdictional capital structure, as approved in the last general rate case or other proceeding if stipulated by the parties and accepted by the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92)

      NAC 704.216  “Utility” defined. (NRS 703.025, 704.210, 704.324)  “Utility” means a public utility, as defined in NRS 704.020.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92)

      NAC 704.217  Application to recover deferred variable interest expense or dividends: Filing and contents. (NRS 703.025, 704.210, 704.324)

     1.  A utility that recovers its fuel costs through either an annual rate adjustment or a deferred energy application may file an application to recover deferred variable interest expense or dividends and to update the level of variable interest expense or dividends included in the current rates within 45 days after the end of the utility’s test period or concurrent with its annual rate adjustment application, whichever is applicable. An application may not be filed more than once during a calendar year.

     2.  The application must include:

     (a) A request for approval to adopt the procedure;

     (b) A calculation of the weighted average variable interest or dividend rate;

     (c) A calculation of the net change in the base tariff general rate resulting from changes in the weighted average variable interest or dividend rate; and

     (d) A calculation of the net change in the base tariff general rate resulting from changes in accumulation of deferred interest.

     3.  The net change in the base tariff general rate (1BTGR) resulting from changes in the weighted average variable interest or dividend rate must be based on the following formula:

 

                                                          [AVIR(new) - AVIR(prior)] X RB

1BTGR = ______________________________

                                                                                   BU

 

     4.  The net change in the base tariff general rate (2BTGR) resulting from changes in accumulation of deferred interest (ADI) must be based on the following formula:

 

                                                         ADI(new)               ADI(prior)

                                    2BTGR = ___________ - ___________

                                                          BU(new)                BU(prior)

 

     5.  The cumulative adjustment to the base tariff general rate resulting from changes in the weighted average variable interest or dividend rate and changes in the accumulations of deferred interest must be based on the following formula:

 

BTGR(new) = BTGR(prior) + 1BTGR + 2BTGR

 

     6.  As used in this section:

     (a) “ADI(new)” means the balance in the subaccount of FERC Account No. 182.3 or 254, whichever is applicable, at the end of the current test period.

     (b) “ADI(prior)” means the balance in the subaccount of FERC Account No. 182.3 or 254, whichever is applicable, at the end of the prior test period.

     (c) “AVIR(new)” means the current test period’s weighted variable interest or dividend rate for all outstanding variable rate securities issued by the utility and included in the Nevada jurisdictional capital structure, as approved in the last general rate case or other proceeding.

     (d) “AVIR(prior)” means the previously approved weighted average variable interest or dividend rate.

     (e) “BU” means the billing units established in the last general rate case or other proceeding.

     (f) “BU(new)” means the billing units established during the current proceeding.

     (g) “BU(prior)” means the billing units established during the prior proceeding.

     (h) “RB” means the rate base established in the last general rate case or other proceeding.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92; A by Pub. Utilities Comm’n by R051-09, 1-28-2010)

      NAC 704.218  Calculation of revenues and expenses related to allowable variable interest expense or dividends. (NRS 703.025, 704.210, 704.324)

     1.  A utility which plans to seek recovery of variable interest expense or dividends shall calculate revenues and expenses related to allowable variable interest expense or dividends as follows:

     (a) The currently recoverable variable interest expense or dividends must be calculated each month by multiplying the last authorized rate base by one-twelfth of the last authorized weighted average variable interest or dividend rate.

     (b) The difference between the currently recoverable expense and the current month’s weighted average variable rate multiplied by the last authorized rate base must be recorded in a subaccount of FERC Account No. 182.3 or 254, whichever is applicable, with the offsetting amount recorded in FERC Account No. 407.3 or 407.4, whichever is applicable. The current month’s weighted average variable rate is the current rate for all outstanding variable rate securities issued by the utility and included in the Nevada jurisdictional capital structure, as approved in the last general rate case or other proceeding.

     (c) Whenever a new weighted average variable interest or dividend rate is authorized, revenues must be increased or decreased annually to match changes in allowable interest expense or dividends by adjusting the base tariff general rate based on the following formula:

 

1BTGR(new) = 1BTGR(prior) ± 1BTGR

 

     2.  As used in this section:

     (a) “1BTGR” means the net change in the base tariff general rate resulting from changes in the weighted average variable interest or dividend rate, calculated pursuant to subsection 3 of NAC 704.217.

     (b) “1BTGR(new)” means the base tariff general rate established in the current proceeding.

     (c) “1BTGR(prior)” means the base tariff general rate established in the last general rate case or other proceeding.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92; A by Pub. Utilities Comm’n by R051-09, 1-28-2010)

      NAC 704.219  Calculation of revenues and expenses related to accumulation of deferred variable interest or dividends. (NRS 703.025, 704.210, 704.324)

     1.  A utility which plans to seek recovery of variable interest expense or dividends shall calculate revenues and expenses related to the accumulation of deferred variable interest or dividends as follows:

     (a) Monthly amortization revenues must be credited or debited to FERC Account No. 182.3 or to FERC Account No. 254, whichever is applicable, based on the following formula:

 

2BTGR X BU(new)

 

     (b) A corresponding debit or credit must be transferred from the subaccount of FERC Account No. 182.3 or from FERC Account No. 254, whichever is applicable, to a subaccount of FERC Account No. 407.3 or 407.4, whichever is applicable.

     (c) Whenever a new accumulation of deferred interest is authorized, revenues must be increased or decreased annually to match changes in accumulation of deferred variable interest by adjusting the base tariff general rate based on the following formula:

 

2BTGR(new) = 2BTGR(prior) ± 2BTGR

 

     2.  As used in this section:

     (a) “2BTGR” means the net change in the base tariff general rate resulting from changes in the accumulation of deferred interest, calculated pursuant to subsection 4 of NAC 704.217.

     (b) “2BTGR(new)” means the base tariff general rate established in the current proceeding.

     (c) “2BTGR(prior)” means the base tariff general rate established in the last general rate case or other proceeding.

     (d) “BU(new)” means the billing units established during the current proceeding.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92; A by Pub. Utilities Comm’n by R051-09, 1-28-2010)

      NAC 704.220  Computation of carrying charge. (NRS 703.025, 704.210, 704.324)  A utility which plans to seek recovery of variable interest expense or dividends shall compute a carrying charge on the average monthly debit or credit balance in the subaccount of FERC Account No. 182.3 or in FERC Account No. 254, whichever is applicable, at the end of each month as follows:

     1.  The carrying charge must be debited or credited to the subaccount of FERC Account No. 182.3 or to FERC Account No. 254, whichever is applicable, at the rate of one-twelfth of the overall rate of the return which was last authorized by the Commission for the particular department or division of the utility, adjusted for federal income tax applicable to the equity component of the overall rate of return computed at the applicable statutory rate. The rate of carrying charge must be applied to the entire balance in the subaccount or account, net of applicable accumulated deferred income taxes, as follows:

 

Carrying charge = (carrying charge rate) X (average deferred variable interest expense balance for the month) X (1 - statutory income tax rate)

 

     2.  The contra entries for the carrying charge must be made to an appropriate subaccount of FERC Account No. 419 (Interest and Dividend Income) or FERC Account No. 431 (Other Interest Expense).

     3.  All carrying charges must be recorded in a separate subaccount entitled Carrying Charge for Recovery of Variable Interest Expense or Dividends.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92; A by Pub. Utilities Comm’n by R051-09, 1-28-2010)

      NAC 704.221  Limit on recovery of debit balance in subaccount for deferred variable interest expense. (NRS 703.025, 704.210, 704.324)  The recovery of a debit balance in the subaccount for the deferred variable interest expense must be limited to the most recently authorized Nevada jurisdictional rate of return adjusted for the changes in the weighted average variable interest or dividend rate for the specific operation of the utility. If the Nevada jurisdictional rate of return submitted for a utility’s operating department exceeds the most recently adjusted authorized rate of return for the utility, an amount equal to the amount which exceeds the utility’s last authorized rate of return or the balance in the subaccount of FERC Account No. 186, whichever is less, must be written off to the appropriate interest expense account.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92)

      NAC 704.222  Effective date of change in rate. (NRS 703.025, 704.210, 704.324)  The changes in rates authorized by NAC 704.218 and 704.219 are effective at the same time as a change in the rates resulting from a general rate case, an annual rate adjustment or a deferred energy accounting adjustment, unless the Commission authorizes a different effective date.

     (Added to NAC by Pub. Service Comm’n, eff. 3-3-92; A by Pub. Utilities Comm’n by R051-09, 1-28-2010)

ANNUAL REPORTS

      NAC 704.225  Submission; contents. (NRS 703.025, 703.191, 704.210)

     1.  Except as otherwise provided in this subsection, each entity described in subsection 1 of NRS 703.191 shall submit to the Commission an annual report on or before May 15 of the year following the year for which the annual report is filed. A telecommunication provider is not required to submit an annual report pursuant to this section and shall submit an annual report pursuant to NAC 704.7483.

     2.  An entity submitting an annual report pursuant to subsection 1 shall include in the annual report:

     (a) A statement of income;

     (b) A balance sheet;

     (c) A statement of intrastate revenue;

     (d) The number of customers served by the entity; and

     (e) Any additional information requested by the Commission pursuant to subsection 3.

     3.  The Commission may request that an entity submitting an annual report pursuant to subsection 1 include in the annual report any additional information that the Commission deems necessary for inclusion in the annual report.

     (Added to NAC by Pub. Utilities Comm’n by R062-07, eff. 10-31-2007; A by R011-15, 10-27-2015)

REPORTS OF ACCIDENTS

      NAC 704.228  Definitions. (NRS 703.025, 704.190, 704.210)  As used in NAC 704.228 to 704.250, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.230, 704.231 and 704.232 have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

     NAC 704.230  “Accident” defined. (NRS 703.025, 704.190, 704.210)

     1.  “Accident” means:

     (a) Any occurrence or condition directly or indirectly arising from or connected with the maintenance or operation of the premises, plant, instrumentality, or facilities of any public utility which has resulted in:

          (1) The loss of human life;

          (2) Injury to a person requiring inpatient hospitalization; or

          (3) Estimated property damage to utility facilities or to the property of others, or both, in the amount of $50,000 or more; and

     (b) For a gas utility, in addition to any occurrence or condition described in paragraph (a):

          (1) An evacuation:

               (I) Initiated by the personnel of the gas utility or by emergency response personnel;

               (II) Confirmed by the personnel of the gas utility through the use of a device capable of detecting and measuring the concentration of gas in the air;

               (III) Caused by the release of gas from the gas utility’s pipeline; and

               (IV) That results in a gas concentration reading inside the evacuated structure of greater than 1 percent natural gas in air or greater than 0.5 percent liquid propane gas in air, or a gas concentration reading outside of the base of the evacuated structure of greater than 2 percent natural gas in air or greater than 1 percent liquid propane gas in air;

          (2) Damage incurred to a pipeline that requires an immediate pressure reduction, repair or replacement of a pipeline section that was operating at a pressure of more than 100 pounds per square inch; or

          (3) An event that causes the pressure in a pipeline section to rise above its maximum allowable operating pressure plus twice the build-up allowed for operation of pressure-limiting or control devices.

     2.  The term does not include a motor vehicle accident unless the motor vehicle accident causes damages that otherwise meet the requirements of this section to the premises, plant, instrumentality or facilities of a public utility.

     [Pub. Service Comm’n, Gen. Order 19 Rules 102 & 103, eff. 6-9-77]—(NAC A by Pub. Utilities Comm’n by R084-10, 12-16-2010)

      NAC 704.231  “Estimated property damage” defined. (NRS 703.025, 704.190, 704.210)  “Estimated property damage” means all costs related to an accident, including, but not limited to:

     1.  Labor;

     2.  Materials;

     3.  Transportation;

     4.  Temporary paving repair; and

     5.  Lost commodity.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

      NAC 704.232  “Pipeline” defined. (NRS 703.025, 704.190, 704.210)  “Pipeline” has the meaning ascribed to it in 49 C.F.R. § 191.3, as adopted by reference in NAC 704.460.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

      NAC 704.235  Exemptions. (NRS 703.025, 704.190, 704.210)  The provisions of NAC 704.228 to 704.250, inclusive, do not apply to any common carrier engaged in the transportation of passengers or property by rail, except that:

     1.  The railroads shall provide the Commission with immediate telephonic notice of an accident involving the loss of human life; and

     2.  The railroads shall furnish to the Commission copies of accident or incident reports filed with the Federal Railroad Administration pursuant to regulations issued under the Federal Railroad Safety Act of 1970 and the Accidents Reports Act.

     [Pub. Service Comm’n, Gen. Order 19 Rule 104, eff. 6-9-77]—(NAC A by Pub. Utilities Comm’n by R084-10, 12-16-2010)

      NAC 704.240  Initial report: Submission; designated employee. (NRS 703.025, 704.190, 704.210)

     1.  At the earliest practicable moment following the discovery of an accident, but not later than 4 hours after discovery, a public utility shall submit an initial report of the accident to the person designated by the Regulatory Operations Staff of the Commission to receive such reports. The initial report must be submitted by telephone, electronic mail or a web-based reporting system established by the Regulatory Operations Staff of the Commission.

     2.  Each utility shall have at least one employee designated to report accidents and, in the event that all designated employees are unavailable, shall designate a substitute.

     3.  As used in this section, “discovery” means whenever any employee designated by the utility to report accidents to the Commission first obtains knowledge of an accident and has determined that the criteria for an accident have been satisfied.

     [Pub. Service Comm’n, Gen. Order 19 Rules 106 & 107, eff. 6-9-77]—(NAC A by Pub. Utilities Comm’n by R084-10, 12-16-2010)

      NAC 704.245  Initial report: Contents; confidentiality. (NRS 703.025, 704.190, 704.210)

     1.  The initial report required by NAC 704.240 must include the following information to the extent that the information is available to the employee of the utility making the initial report:

     (a) The name and principal business address of the utility.

     (b) The name and position of the employee of the utility making the report.

     (c) The estimated date and time of the accident.

     (d) The date and time of the discovery of the accident by the utility.

     (e) The approximate location of the accident.

     (f) A description of the accident.

     (g) The approximate number of fatalities or injuries.

     (h) A description of the apparent cause of the accident.

     (i) The estimated number of structures evacuated.

     (j) The estimated number of persons evacuated.

     (k) The estimated number of customers affected by any service outage. If the accident results in a significant service outage as defined in NAC 704.2565, the utility shall also supply all the information required in NAC 704.258 not otherwise required by this section.

     (l) A description of property damage which has occurred, or which may be anticipated, as a result of the accident.

     (m) A description of the steps being taken or contemplated by the utility to prevent further property damage or personal injury from occurring.

     (n) Any additional information deemed necessary to apprise the Regulatory Operations Staff of the Commission properly of the details of the accident.

     (o) The names and telephone numbers of the personnel of the utility who may be contacted if further information regarding the accident is required.

     2.  All information in the initial report must receive confidential treatment. The utility shall provide a general description and approximate location of the accident for public dissemination.

     [Pub. Service Comm’n, Gen. Order 19 Rule 108, eff. 6-9-77]—(NAC A by Pub. Utilities Comm’n by R084-10, 12-16-2010)

      NAC 704.250  Submission of final report and additional information; rescission of initial report. (NRS 703.025, 704.190, 704.210)

     1.  A utility shall submit a final report of each accident to the Commission within 30 calendar days after submitting the initial report required by NAC 704.240.

     2.  Except as otherwise provided in subsection 3, a utility shall submit the final report on the form entitled “Public Utility Accident Report,” which is available from the Commission.

     3.  A gas utility whose accident results in a notification to the United States Department of Transportation shall submit the final report on the form prescribed for a gas distribution pipeline system incident report (Form PHMSA F 7100.1) or the form prescribed for a gas transmission and gathering systems incident report (Form PHMSA F 7100.2) by the Pipeline and Hazardous Materials Safety Administration of the United States Department of Transportation.

     4.  If any of the information required is not readily available to the utility at the time the final report is submitted to the Commission, the utility shall briefly explain its reasons and shall submit the additional information to the Commission as soon as it becomes available to the utility.

     5.  If the information required has not been submitted to the Commission within 3 months after the date of the final report, the utility shall submit a status report in writing to the Commission setting forth the actions taken or contemplated by the utility to obtain the information and the estimated date of submission of the information. Status reports must be submitted by the utility at 3-month intervals until all of the information has been submitted to the Commission.

     6.  If the utility determines after further investigation that the incident was not an accident, the utility shall submit a rescission of the initial report to the Regulatory Operations Staff of the Commission within 7 calendar days after the discovery of the nature of the incident and in the same manner in which the utility notified the Commission of the incident. The rescission shall include an explanation of the basis for the rescission.

     [Pub. Service Comm’n, Gen. Order 19 Rule 109, eff. 6-9-77]—(NAC A by Pub. Utilities Comm’n by R084-10, 12-16-2010)

REPORTS OF SIGNIFICANT SERVICE OUTAGES

      NAC 704.2555  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.2555 to 704.2595, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.256 and 704.2565 have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

      NAC 704.256  “Pipeline” defined. (NRS 703.025, 704.210)  “Pipeline” has the meaning ascribed to it in 49 C.F.R. § 191.3, as adopted by reference in NAC 704.460.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

      NAC 704.2565  “Significant service outage” defined. (NRS 703.025, 704.210)  “Significant service outage” means:

     1.  For an electric utility, a forced outage of at least 3,000 customer hours or any outage lasting more than 10 hours that affects at least 50 customers.

     2.  For a public utility that provides telecommunication services, is a competitive supplier that owns, operates, leases or otherwise utilizes facilities in Nevada and has more than 20,000 access lines, any outage lasting more than 30 minutes that:

     (a) In a city whose population is 20,000 or more or in an unincorporated area of a county if the population of the entire unincorporated area of the county is 20,000 or more, potentially affects at least 300,000 user minutes of telecommunication service in Nevada as defined in 47 C.F.R. § 4.7(e);

     (b) In a city whose population is less than 20,000 or in an unincorporated area of a county if the population of the entire unincorporated area of the county is less than 20,000, potentially affects at least 30,000 user minutes of telecommunication service in Nevada as defined in 47 C.F.R. § 4.7(e);

     (c) Potentially affects at least 667 OC3 minutes in Nevada as defined in 47 C.F.R. § 4.7(d);

     (d) Potentially affects any special offices and facilities in Nevada as defined in 47 C.F.R. § 4.5(a) to (d), inclusive; or

     (e) Potentially affects a 911 special facility in Nevada as defined in 47 C.F.R. § 4.5(e).

     3.  For a public utility which provides telecommunication services and which is a small-scale provider of last resort, any outage lasting more than 30 minutes that:

     (a) Potentially affects at least 30,000 user minutes of telecommunication service in Nevada as defined in 47 C.F.R. § 4.7(e);

     (b) Potentially affects at least 250 OC3 minutes in Nevada as defined in 47 C.F.R. § 4.7(d);

     (c) Potentially affects any special offices and facilities in Nevada as defined in 47 C.F.R. § 4.5(a) to (d), inclusive; or

     (d) Potentially affects a 911 special facility in Nevada as defined in 47 C.F.R. § 4.5(e).

     4.  For a water utility, any unscheduled outage resulting in water pressure of less than 5 pounds per square inch in any water distribution main that affects service to 50 or more customers or lasts more than 6 hours.

     5.  For a gas utility, any unplanned outage that results in the interruption of service to 10 or more active customer accounts.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010; A by R030-18, 8-30-2018)

      NAC 704.257  Annual certification of population by Commission. (NRS 703.025, 704.210)  For the purposes of subsection 2 of NAC 704.2565, the Commission will annually certify the population of:

     1.  Each city in this State; and

     2.  The entire unincorporated area of each county in this State.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

      NAC 704.2575  Initial report: Submission; designated employee. (NRS 703.025, 704.210)

     1.  At the earliest practicable moment following the discovery of a significant service outage, but not later than 4 hours after discovery, a utility shall submit an initial report of the significant service outage to the person designated by the Regulatory Operations Staff of the Commission to receive such reports. The initial report shall be submitted by telephone, electronic mail or a web-based reporting system established by the Regulatory Operations Staff of the Commission.

     2.  Each utility shall have at least one employee designated to report significant service outages and, in the event that all designated employees are unavailable, shall designate a substitute.

     3.  As used in this section, “discovery” means whenever any employee designated by the utility to report significant service outages to the Commission first obtains knowledge of a significant service outage and has determined that the criteria for a significant service outage have been satisfied.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

      NAC 704.258  Initial report: Contents; confidentiality. (NRS 703.025, 704.210)

     1.  The initial report required by NAC 704.2575 must include the following information to the extent that the information is available to the representative of the utility making the initial report:

     (a) The name and principal business address of the utility.

     (b) The name and position of the representative of the utility making the initial report.

     (c) The approximate geographic area affected by the significant service outage.

     (d) The estimated number of customers affected by the significant service outage.

     (e) The approximate date, time and duration of the significant service outage.

     (f) The date and time of discovery of the significant service outage.

     (g) The apparent cause of the significant service outage.

     2.  All information in the initial report must receive confidential treatment. The utility shall provide an approximate geographic area and estimated number of customers affected by the significant service outage for public dissemination.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

      NAC 704.2585  Submission of final report and additional information; rescission of initial report. (NRS 703.025, 704.210)

     1.  A utility shall submit a final report of each significant service outage to the Commission within 30 calendar days after submitting the initial report required by NAC 704.2575.

     2.  A utility shall submit the final report on the form entitled “Public Utility Significant Service Outage Report,” which is available from the Commission.

     3.  If any of the information required is not readily available to the utility at the time the final report is submitted to the Commission, the utility shall briefly explain its reasons and shall submit the additional information to the Commission as soon as it becomes available to the utility.

     4.  If the information required has not been submitted to the Commission within 3 months after the date of the final report, the utility shall submit a status report in writing to the Commission setting forth the actions taken or contemplated by the utility to obtain the information and the estimated date of submission of the information. Status reports must be submitted by the utility at 3-month intervals until all of the information has been submitted to the Commission.

     5.  If the utility determines after further investigation that the service outage was not a significant service outage, the utility shall submit a rescission of the initial report to the Regulatory Operations Staff of the Commission within 7 calendar days after the discovery of the nature of the service outage and in the same manner in which the utility notified the Commission of the service outage. The rescission shall include an explanation of the basis for the rescission.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

      NAC 704.259  Electric utilities: Quarterly reports. (NRS 703.025, 704.210)

     1.  An electric utility shall submit a quarterly report to the Regulatory Operations Staff of the Commission within 90 days after the end of each calendar year quarter for all service outages, including, without limitation, a significant service outage, which occurred in that calendar year quarter.

     2.  The quarterly report must include the following information for each service outage:

     (a) The geographic area of the service outage;

     (b) The number of customers affected by the service outage;

     (c) The date, time and duration of the service outage; and

     (d) The cause of the service outage.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

      NAC 704.2595  Water utilities: Notification of certain scheduled maintenance. (NRS 703.025, 704.210)

     1.  A water utility shall notify the Regulatory Operations Staff of the Commission by telephone or electronic mail, or both, at least 24 hours before any scheduled maintenance that will:

     (a) Last more than 6 hours; or

     (b) Result in water pressure of less than 5 pounds per square inch in any water distribution main and affect service to 50 or more customers.

     2.  The notification required pursuant to subsection 1 must include:

     (a) The hours during which service will be interrupted;

     (b) The time on which service will be restored; and

     (c) The number of customers to be affected by the scheduled maintenance.

     (Added to NAC by Pub. Utilities Comm’n by R084-10, eff. 12-16-2010)

DISCLOSURES TO CUSTOMERS BY CERTAIN ELECTRIC UTILITIES

      NAC 704.2761  Definitions. (NRS 703.025, 704.210, 704.763)  As used in NAC 704.2761 to 704.2787, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.2763 to 704.2777, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2763  “Biofuel” defined. (NRS 703.025, 704.210, 704.763)  “Biofuel” means any alcohol, ether, ester or other chemical compound made from herbaceous plants, woody plants or organic waste.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2765  “Biomass” defined. (NRS 703.025, 704.210, 704.763)  “Biomass” has the meaning ascribed to it in NRS 704.007.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2767  “Electric utility” defined. (NRS 703.025, 704.210, 704.763)  “Electric utility” has the meaning ascribed to it in NRS 704.187.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2769  “Excluded sale” defined. (NRS 703.025, 704.210, 704.763)  “Excluded sale” means electricity that an electric utility sells to any person or entity other than its retail customers in this State.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2771  “Generation asset” defined. (NRS 703.025, 704.210, 704.763)  “Generation asset” means any plant, facility, equipment or system which is located within or outside this State and which converts nonelectrical energy into electrical energy or otherwise produces electrical energy.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2773  “Heavy metal” defined. (NRS 703.025, 704.210, 704.763)  “Heavy metal” means any heavy metal which is released in quantities that must be reported to the United States Environmental Protection Agency pursuant to 42 U.S.C. § 11023 and 40 C.F.R. Part 372.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2775  “Native generation” defined. (NRS 703.025, 704.210, 704.763)

     1.  “Native generation” means electricity which is generated from a generation asset that is owned by or under contract to an electric utility.

     2.  The term does not include purchased power.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2777  “Purchased power” defined. (NRS 703.025, 704.210, 704.763)  “Purchased power” means electricity that an electric utility purchases from another person or entity pursuant to a purchase agreement.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2783  Distribution and formatting of disclosure statements. (NRS 703.025, 704.210, 704.763)

     1.  On a semiannual basis before the close of the billing cycles for January and July of each calendar year, each electric utility shall provide to its retail customers a disclosure statement that discloses the information required by NAC 704.2785 and 704.2787.

     2.  Each electric utility shall:

     (a) Include the disclosure statement as an insert to the bills that the electric utility sends to its retail customers; and

     (b) If the electric utility maintains a website on the Internet or any successor to the Internet, post the disclosure statement on that website.

     3.  The information disclosed in the disclosure statement must be presented in a type size that is not smaller than 10-point type.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2785  Contents of disclosure statement: Information relating to certain sales, energy sources and emissions. (NRS 703.025, 704.210, 704.763)

     1.  The disclosure statement must disclose:

     (a) The total number of megawatt-hours sold by the electric utility to retail customers in this State, which must be calculated by taking the sum of native generation and purchased power and reducing that sum by excluded sales; and

     (b) For each energy source, the number of megawatt-hours generated from the energy source and the percentage that those megawatt-hours constitute of the total number of megawatt-hours sold by the electric utility to retail customers in this State. The energy sources must be identified in the disclosure statement as follows:

          (1) Coal.

          (2) Natural gas.

          (3) Oil.

          (4) Hydroelectric.

          (5) Geothermal.

          (6) Solar.

          (7) Nuclear.

          (8) Wind.

          (9) Biofuel.

          (10) Biomass.

          (11) Other. The number of megawatt-hours generated from other energy sources must be calculated and disclosed in an aggregate amount. Each energy source contributing to the aggregate amount must be specified in the disclosure statement.

     2.  For the purposes of subsection 1, the electric utility shall consider:

     (a) Its native generation to be consumed by its retail customers in this State, unless the electric utility identifies specific amounts of its native generation as part of its excluded sales;

     (b) Its excluded sales to be generated by an average mix of the energy sources used for its native generation; and

     (c) Its purchased power to be generated by an average mix of the energy sources used to generate electricity in the region consisting of Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming, unless the electric utility identifies specific amounts of its purchased power that are generated from specific energy sources.

     3.  The disclosure statement must disclose the average emissions of each of the following substances, as measured in pounds per megawatt-hour sold by the electric utility to retail customers in this State:

     (a) High-level radioactive waste.

     (b) Sulfur dioxide.

     (c) Carbon dioxide.

     (d) Carbon monoxide.

     (e) Particulate matter.

     (f) Volatile organic compounds.

     (g) Oxides of nitrogen.

     (h) Heavy metals.

     (i) Any other substances which the Commission, in cooperation with the Division of Environmental Protection of the State Department of Conservation and Natural Resources, determines may cause a significant health or environmental impact and for which sufficiently accurate and reliable data is available.

     4.  For the purposes of subsection 3, the electric utility shall consider:

     (a) Its native generation to be consumed by its retail customers in this State, unless the electric utility identifies specific amounts of its native generation as part of its excluded sales;

     (b) The emissions attributable to its excluded sales to be an average mix of the emissions attributable to its native generation; and

     (c) The emissions attributable to its purchased power to be an average mix of the emissions attributable to generation of electricity in the region consisting of Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming, unless the electric utility identifies specific emissions attributable to specific amounts of its purchased power.

     5.  The information disclosed in the disclosure statement pursuant to this section must be based upon data taken from a 12-month period that ends not more than 6 months before the date on which the electric utility first releases the disclosure statement to its retail customers.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002)

      NAC 704.2787  Contents of disclosure statement: Information relating to certain products, services and programs. (NRS 703.025, 704.210, 704.763)

     1.  The disclosure statement must, without limitation:

     (a) Provide a summary of any programs and information relating to energy conservation that is offered by the electric utility;

     (b) Describe the procedures for enrolling in the equal payment plan or for making alternative payment arrangements with the electric utility;

     (c) Describe any energy programs that provide assistance to retail customers with low incomes and explain how to apply for assistance from such programs;

     (d) Identify any other energy programs which may provide assistance to retail customers and which are operated by the electric utility or by other sources known to the electric utility, including, without limitation, federal, state and local governments; and

     (e) Contain information about the safe disposal and recycling of electronic waste, electrical systems and other waste, including, without limitation, compact fluorescent light bulbs.

     2.  The disclosure statement may include any other information about electric services, and any products and services relating thereto, that are being provided to or purchased for retail customers by the electric utility.

     (Added to NAC by Pub. Utilities Comm’n by R145-01, eff. 1-22-2002; A by R170-09, 7-22-2010)

ADVERTISING BY CERTAIN ELECTRIC AND GAS UTILITIES

      NAC 704.280  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.280 to 704.295, inclusive, unless the context otherwise requires:

     1.  “Advertising” means the commercial use of any medium, including the newspaper, radio or television, or printed matter, by a utility to transmit a message to its customers or to a substantial number of members of the public.

     2.  “Political advertising” means any advertising whose purpose is to influence public opinion with respect to any legislative, administrative, or electoral matter or any controversial issue of public importance.

     3.  “Promotional advertising” means any advertising whose purpose is to encourage persons to select, use, or add the service of a utility or to select or install any appliance or equipment designed to use the utility’s service.

     [Pub. Service Comm’n, Gen. Order 28 § 2.0, eff. 8-21-81]

      NAC 704.285  Applicability. (NRS 703.025, 704.210)  The provisions of NAC 704.280 to 704.295, inclusive, apply to all utilities which provide electric or gas service.

     [Pub. Service Comm’n, Gen. Order 28 § 1.2, eff. 8-21-81]

 

      NAC 704.290  Promotional or political advertising. (NRS 703.025, 704.210)  No utility which provides electric or gas service may recover from any person other than its shareholders or other owners any of its expenditures, whether direct or indirect, for promotional or political advertising.

     [Pub. Service Comm’n, Gen. Order 28 § 3.1, eff. 8-21-81]

      NAC 704.295  Exemptions. (NRS 703.025, 704.210)  The provisions of NAC 704.280 to 704.295, inclusive, do not apply to:

     1.  Advertising which informs customers how they can conserve energy or reduce peak demand for energy.

     2.  Advertising required by law, including, without limitation, advertising required by NRS 704.763 and NAC 704.2761 to 704.2787, inclusive.

     3.  Advertising regarding interruptions in service, safety measures or emergency conditions.

     4.  Advertising concerning opportunities for employment with a utility.

     5.  Any explanation of or justification for existing or proposed rate schedules, or notifications of hearings thereon.

     [Pub. Service Comm’n, Gen. Order 28 § 3.2, eff. 8-21-81]—(NAC A by Pub. Utilities Comm’n by R145-01, 1-22-2002)

RIGHTS AND OBLIGATIONS OF CUSTOMERS OF CERTAIN ELECTRIC AND GAS UTILITIES

      NAC 704.302  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.302 to 704.390, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.3022 to 704.317, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.3022  “Advanced service delivery meter” defined. (NRS 703.025, 704.210)  “Advanced service delivery meter” means a digital device for measuring usage of electricity in discrete intervals of time which is capable of remotely connecting or disconnecting electric service to a residential customer of an electric utility and which is integrated into a functional system that is capable of remote connection and disconnection.

     (Added to NAC by Pub. Utilities Comm’n by R035-11, eff. 10-26-2011)

      NAC 704.3023  “Advanced service delivery meter customer” defined. (NRS 703.025, 704.210)  “Advanced service delivery meter customer” means a residential customer of an electric utility who is provided electric service by the electric utility through an advanced service delivery meter.

     (Added to NAC by Pub. Utilities Comm’n by R035-11, eff. 10-26-2011)

      NAC 704.303  “Customer” defined. (NRS 703.025, 704.210)  “Customer” means a person:

     1.  Who receives or applies to receive residential gas or electric service from a utility;

     2.  In whose name such service is or is to be provided, as evidenced by a signature on the application or contract for such service; or

     3.  In whose name such service is or is to be provided, as may be established by other demonstrable evidence that the person requested the utility to provide such service in that person’s name.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.304  “Deposit” defined. (NRS 703.025, 704.210)  “Deposit” means security provided by a customer to ensure payment for service provided by a utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.3055  “Division” defined. (NRS 703.025, 704.210)  “Division” means the Division of Consumer Complaint Resolution of the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.3065  “Elderly” defined. (NRS 703.025, 704.210)  “Elderly” means a person who is 62 years of age or older.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.307  “Especially dangerous to health” defined. (NRS 703.025, 704.210)  “Especially dangerous to health” means a condition or event likely to cause serious impairment to the health of a person who appears to be unable, without assistance, to manage his or her own resources, carry out the activities of daily living, or protect himself or herself from neglect or a hazardous situation.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.309  “Guarantor” defined. (NRS 703.025, 704.210)  “Guarantor” means a person who assumes liability for the payment of the bill of a customer in an amount not to exceed the appropriate amount of the deposit for the account of the customer.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.3105  “Person with a disability” defined. (NRS 703.025, 704.210)  “Person with a disability” means a person who:

     1.  Is affected by any physical or mental disability as described in NRS 615.110 or a substantial impediment to employment as defined in NRS 615.130; or

     2.  Receives disability benefits from the Social Security Administration.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.313  “Rule” defined. (NRS 703.025, 704.210)  “Rule” means a provision, included in the tariff of a utility, which establishes the application of rates, charges, and standards for service and is not included in a rate schedule.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.314  “Satisfactory credit” defined. (NRS 703.025, 704.210)  “Satisfactory credit” means the payment of bills for utility service for 12 consecutive months, without a termination of service and with not more than three payments during that period made after the date of issuance of the next monthly bill. Any history of payment that does not meet these requirements is unsatisfactory credit.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.315  “Termination of service” defined. (NRS 703.025, 704.210)  “Termination of service” means the intentional cessation of service by a utility to a customer which has not been requested by the customer and which occurs pursuant to the tariff of the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.316  “Timely payment” defined. (NRS 703.025, 704.210)  Except as otherwise provided in NAC 704.339, “timely payment” means the payment of a bill for service by a customer before the date the bill is past due.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.317  “Utility” defined. (NRS 703.025, 704.210)  “Utility” means a public utility, as defined in NRS 704.020, which furnishes gas or electricity.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.320  Records of utility. (NRS 703.025, 704.210)

     1.  Each utility shall prepare and maintain records for at least 3 years. The records must contain:

     (a) For each of its customers:

          (1) His or her payment performance;

          (2) His or her usage of gas or electric energy for each billing period; and

          (3) The amount of his or her bill for each billing period.

     (b) The number and general description of written complaints filed with the utility.

     (c) The number of terminations and reconnections of service.

     (d) The number of deposits which have been collected and returned.

     2.  Upon the request of the Commission, a utility shall submit to the Commission, in writing, a summary of the information contained in these records relating to a particular customer or customers.

     3.  A utility may not provide any list of the names, addresses, or telephone numbers of its customers, or any related information about its customers, to any other person for commercial purposes.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.321  Terms of agreement with customer. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in this section, a utility may not enter into any agreement with a customer under terms that are inconsistent with the provisions of NAC 704.302 to 704.390, inclusive.

     2.  Notwithstanding the provisions of NAC 704.302 to 704.390, inclusive, a utility may enter into an agreement with a customer under terms that are more favorable to the customer than those provided by NAC 704.302 to 704.390, inclusive, if the more favorable terms are consistent with the tariffs of the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.322  Form for complaint by customer. (NRS 703.025, 704.210)  A utility shall make available a standard form to be used by its customers for the purpose of making written complaints to the utility. The form must be available at each office of the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.323  Transmittal of information to customers. (NRS 703.025, 704.110, 704.185, 704.187, 704.210)

     1.  A utility shall send to each of its customers a statement containing a clear and concise explanation of its existing rate schedules which are applicable to the customer. The statement must be sent to each customer:

     (a) At the time the customer makes application for service; and

     (b) In the next bill sent to the customer after any change applicable to that customer is made in a rate schedule, except for quarterly adjustments to its base tariff energy rate and, if applicable, for quarterly adjustments to its deferred energy accounting adjustment for which notice was provided pursuant to subsection 4 or 5 of NAC 704.118.

     2.  On each residential and small commercial customer’s bill, a utility shall include a formula which the customer may use for calculating the amount of the bill. If more than one rate is applicable to a customer during any billing period, the rate used in the formula must be a weighted average of those rates. For the purposes of this subsection, “weighted average” means an average of the applicable rates during a billing period, calculated according to the number of days each rate is in effect.

     3.  Each utility, at the request of a customer, shall send the customer a clear and concise statement of the customer’s actual consumption of gas or electric energy for each billing period during the prior year at the location where service is provided.

     (Added to NAC by Pub. Service Comm’n, 7-31-85, eff. 8-1-85; A 1-5-89; A by Pub. Utilities Comm’n by R071-07, 10-31-2007; R076-11, 5-30-2012)

      NAC 704.326  Application for service; provision of range of historical energy use at location of service. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsection 2, a customer may make an application for service by mail.

     2.  A customer who is applying for service from a utility for the first time, or who has not received service from the utility during the preceding 2 years, may be required by the utility to apply for service in person unless this will cause undue hardship.

     3.  Upon the request of a customer who has applied for service from a utility, the utility shall provide the customer, or any other person or entity designated by the customer in writing, with a range of historical energy use at the location where service is to be provided to the customer. In providing the information to the customer or the customer’s designee, the utility shall take appropriate measures to protect confidential customer information regarding all prior customers at that location.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.327  Establishment of credit. (NRS 703.025, 704.210)

     1.  A utility may require a customer to establish credit before it furnishes service.

     2.  A customer may establish credit if he or she:

     (a) Submits payment of a cash deposit to ensure the payment of a bill issued to him or her for service;

     (b) Has been a customer of the utility within the preceding 2 years and has established satisfactory credit;

     (c) Has been a customer of another municipal or regulated energy utility within the preceding 2 years and has made timely payment of each bill issued to him or her during the 12 months immediately preceding the request for service; or

     (d) Has otherwise established credit that is acceptable to the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.328  Deposit: Generally. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsections 2 and 3, a deposit for each service provided by a utility must not exceed an amount equal to 150 percent of the estimated average monthly bill of the customer for each such service. Deposits for multiple types of utility service from the same utility must be calculated separately.

     2.  If an elderly customer establishes credit by making a deposit, the deposit must not exceed 50 percent of the deposit established pursuant to subsection 1.

     3.  If service to a customer has been terminated, the deposit required by the utility for resumption of service must not exceed an amount equal to 150 percent of the estimated average monthly bill of the customer for service to be resumed.

     4.  A utility may require:

     (a) An elderly customer who has had a termination of service or made four or more payments after the issuance of the next monthly bill within a 12-month period to provide the remaining 50 percent of the deposit.

     (b) A customer, who has not been required to provide a deposit, to provide a deposit once the customer’s credit has become unsatisfactory.

     5.  By posting a deposit, the customer agrees that the deposit is a pledge to make future payments to the utility and not payment for future services that are furnished by the utility.

     6.  A utility may apply a deposit to any amounts outstanding at the time service is terminated or discontinued at the request of the customer.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.329  Deposit: Alternatives. (NRS 703.025, 704.210)

     1.  A utility may not require a customer to provide a deposit if the customer:

     (a) Has established satisfactory credit with the utility or any other municipal or regulated energy utility;

     (b) Uses a guarantor with satisfactory credit; or

     (c) Receives benefits from a retirement plan or the Social Security Administration, unless the customer has had a termination of service or has made four or more payments after the issuance of the next monthly bill within a 12-month period.

     2.  A utility:

     (a) Shall provide, at the request of a customer, a form to request the customer’s credit history from another utility or to verify employment.

     (b) May not require a customer to use a guarantor to begin service.

     3.  A utility may, in determining whether a customer will be required to provide a deposit, consider:

     (a) Whether the customer has been continuously employed with his or her employer for at least 1 year;

     (b) The payment history if the previous service was not in the name of the customer, if the customer is newly divorced or separated and is seeking service in his or her own name; and

     (c) Any other factors set forth in the tariff of the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.330  Deposit: Additional amount. (NRS 703.025, 704.210)

     1.  A utility may require a customer who is subject to the termination of service and who requests the resumption or continuation of service to provide a deposit in addition to any other deposit made by the customer pursuant to NAC 704.328 only if the initial deposit has been returned to the customer or more than one-half of the deposit has been applied to the account of the customer. In no event may the amount of a deposit held by a utility exceed the amounts specified in NAC 704.328.

     2.  If a utility requires a customer to provide a deposit pursuant to subsection 1, the deposit may be combined with any arrearage, and the customer may pay the deposit and the arrearage pursuant to an agreement for deferred payment in accordance with NAC 704.341.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.331  Deposit: Notification of requirement. (NRS 703.025, 704.210)  A utility shall notify the customer after the third late payment that a deposit will be required after the fourth late payment if the utility wishes to require a deposit pursuant to:

     1.  Paragraph (a) of subsection 4 of NAC 704.328;

     2.  Paragraph (c) of subsection 1 of NAC 704.329.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.332  Deposit: Payment in installments. (NRS 703.025, 704.210)

     1.  A customer who is required to pay a deposit must be permitted to enter into a written agreement with the utility for payment of the deposit in installments.

     2.  Except as otherwise provided in NAC 704.341, if such an agreement is entered into:

     (a) The customer may be required to pay:

          (1) An amount equal to at least one-third of the deposit, if it is more than $50, before service is provided;

          (2) The remainder of the deposit, in not more than two equal installments, not later than 30 and 60 days, respectively, after the date of the agreement; and

          (3) Interest, at a rate set forth in the tariff of the utility, on the unpaid portion of the deposit.

     (b) The service of the customer may be terminated without notice for any failure to pay the deposit as agreed and, in such a case, the customer may be required to pay the full amount of the deposit, plus any other money owed the utility, before service is restored.

     (c) The agreement must:

          (1) Specify the date on which each installment is due; and

          (2) Contain a statement of the provisions of this section. The right of the utility to terminate the service of the customer for any failure to pay the deposit must be stated in boldface type.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.333  Deposit: Return. (NRS 703.025, 704.210)  A utility shall return any deposit paid by a customer if he or she has made timely payments for 12 consecutive months.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.334  Guarantors. (NRS 703.025, 704.210)

     1.  A guarantor must be a customer of the utility providing service to the customer for whom the guarantor is acting.

     2.  The liability of a guarantor is limited to the amount of the deposit that the customer otherwise would have been required to pay and ceases after the date the deposit otherwise would have been required to be returned.

     3.  A guarantor who is required to make any payment for a customer may pay the amount owed within a period of not more than 3 months. If payment is not made within that period, the utility may terminate service to the guarantor without notice.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.336  Basis and contents of bill for service. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in NAC 704.337, each bill for service issued by a utility must be based upon a reading of the meter of the customer or the applicable flat rate.

     2.  Each bill for service must include:

     (a) Any previous balance;

     (b) The amount due for service provided during the current billing period, with the date upon which this amount is past due;

     (c) Any approved charge for late payment of a bill, with the date upon which that charge begins to accrue;

     (d) The customer charge;

     (e) The fuel adjustment cost and gas adjustment cost;

     (f) Any other authorized fee, charge, or tax;

     (g) Any unregulated charge;

     (h) The total of the preceding amounts;

     (i) The meter readings for the first and last day of the billing period;

     (j) The quantity of gas or electric energy consumed;

     (k) The date the meter was read;

     (l) The next date the meter will be read;

     (m) The summary of the provisions of NAC 704.346 required by subsection 4 of that section; and

     (n) The telephone number and address of the office of the utility where a customer may obtain information concerning his or her bill or the service provided.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.337  Billing based upon estimated usage. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsection 4, if a utility is unable, because of circumstances beyond its control, to read the meter of a customer on the date scheduled, it may bill the customer based upon the customer’s estimated usage for the billing period.

     2.  For the purposes of this section, circumstances beyond the control of a utility include:

     (a) Severe weather;

     (b) The presence of an animal on the premises of the customer which prevents an employee of the utility from reading the meter without risk of injury; or

     (c) Any other circumstance which makes it unreasonably difficult to read the meter.

     3.  A utility shall consider the following factors in calculating a bill based upon estimated usage:

     (a) The usage of the customer during the same month of the preceding year;

     (b) Any change in temperature from the preceding month;

     (c) The usage during the preceding month; and

     (d) Seasonal load factors.

     4.  A utility which issues three consecutive bills to a customer based upon estimated usage, or five such bills for a customer in the area surrounding Lake Tahoe, shall notify the customer of its right of access to the premises of the customer. Thereafter, any additional and consecutive bill based upon estimated usage may be issued only under extraordinary circumstances.

     5.  A utility shall:

     (a) Adjust the estimated usage upon the first reading of a meter after an estimated reading;

     (b) Print the word “estimate” plainly on each bill which is based upon estimated usage; and

     (c) Notify customers of its right to issue bills based upon estimated usage.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.338  Program for equalized billing for service. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in this section, a utility shall offer a program of equalized billing to any customer whose utility service is connected at the time the request is made.

     2.  If a customer requests to enter into the program of equalized billing and the customer has an arrearage when the request is made, the customer may not enter into the program unless the customer:

     (a) Pays at least 50 percent of the arrearage upon entering into the program; and

     (b) Agrees to pay, in amounts that are apportioned over the first year of participation in the program, the remaining arrearage.

     3.  If a customer enters into the program of equalized billing, the equalized billing must be calculated by dividing the total amount of estimated bills for 1 year by the number of monthly payments for that year. The utility shall, at least once each year, adjust the monthly payments to conform to the actual bills.

     4.  A utility may not adjust the amount of an equalized bill because of a change in rates before the rates become effective.

     5.  If a customer fails to make two or more consecutive timely payments while participating in the program of equalized billing, the utility may, in addition to any other rights and remedies available to the utility, remove the customer from the program. If the utility removes the customer from the program, the customer may not enter into the program again without the approval of the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.339  Billing and payment for service. (NRS 703.025, 704.210)

     1.  A utility shall deliver a bill to a customer:

     (a) By depositing the bill with the United States Postal Service, properly addressed and postage prepaid, for delivery by first-class mail to the billing address of the customer;

     (b) By another means of delivery of the bill to the billing address of the customer; or

     (c) If requested by the customer and within the capability of the utility, by sending an electronic bill via the Internet to the electronic address of the customer. The electronic bill must contain the same content and be presented in the same or a similar format as a bill delivered to the customer pursuant to paragraph (a).

     2.  A bill for service issued by a utility is due:

     (a) Upon deposit of the bill with the United States Postal Service, properly addressed and postage prepaid, for delivery by first-class mail to the billing address of the customer;

     (b) In the case of delivery by another means, upon delivery of the bill to the billing address of the customer; or

     (c) In the case of delivery via the Internet, upon sending the electronic bill via the Internet to the electronic address of the customer.

     3.  A customer may pay the bill:

     (a) By depositing payment in the form of a check or money order with the United States Postal Service, properly addressed and postage prepaid, for delivery by first-class mail to the appropriate address of the utility;

     (b) By making payment at the business office of the utility using cash, a check, a money order, a credit card, a debit card, an electronic check or, if authorized by the utility, some other form of electronic fund transfer;

     (c) By making payment to any person authorized by the utility to accept payment using cash, a check, a money order, a credit card, a debit card, an electronic check or, if authorized by the utility, some other form of electronic fund transfer; or

     (d) By making payment through a bank-by-phone system or, if authorized by the utility, by making payment through a payment terminal, an automatic withdrawal system or another system that allows for electronic fund transfers.

     4.  A utility shall authorize at least one system of payment that allows customers to make payments to the utility via the Internet.

     5.  The past due date for a bill may not be earlier than 15 days after the date that the bill is due pursuant to subsection 2.

     6.  If a utility has the capability to allow a customer to choose the past due date for each billing cycle, the utility shall:

     (a) On an annual basis, notify customers that they have such a choice; and

     (b) Upon the request of a customer, allow the customer to make such a choice.

     7.  If a utility does not have the capability described in subsection 6, the utility shall, upon the request of a customer and to the extent practicable, work with the customer to establish by mutual agreement the past due date for each billing cycle.

     8.  If the last day for payment before the past due date falls on a Sunday, legal holiday or any other day on which the office of a utility used for the payment of bills is closed, the last day for payment is the next business day. Except as otherwise provided in subsection 9, payment of a bill by first-class mail is timely if the payment is received not more than 4 days after the past due date.

     9.  Any arrearage contained in a bill for service is past due and should be paid at the business office of the utility.

     10.  A utility may charge a customer a fee, as set forth in its tariff, for:

     (a) The return of an unpaid check.

     (b) The late payment of a bill.

     (c) The use of a credit card to make a payment to the utility. The utility shall not charge the customer a fee for the use of a credit card to make a payment to the utility or enter into an agreement with a third-party credit card service which charges the customer such a fee, unless the fee has been reviewed and approved by the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.341  Program for deferred payment of delinquent bill. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in this section and NAC 704.338, a utility shall provide a program for the deferred payment of a delinquent bill for any customer who requests the program and agrees in writing to pay:

     (a) The arrearage within 90 days after the execution of the agreement, in four equal payments, with the first payment to be made upon the execution of the agreement; and

     (b) All future bills when due.

Ê The 90-day period otherwise provided for payment of the arrearage may be extended at the discretion of the utility.

     2.  If a customer who enters into an agreement for the deferred payment of an arrearage is required to pay a deposit as a condition of continuing or resuming service and:

     (a) The customer’s service has not been terminated because of the failure to comply with an existing agreement for deferred payment; or

     (b) The customer is entering into the agreement pursuant to subsection 3,

Ê the deposit and the arrearage must be included in the agreement and must be paid within 120 days, in four equal payments, with the first payment to be made upon the execution of the agreement.

     3.  If a governmental agency or another entity that provides energy assistance to lower-income customers pledges or pays money on behalf of a customer who has an arrearage, the utility shall allow the customer to enter into an agreement for the deferred payment of the remaining arrearage and any deposit owed by the customer, regardless of whether the customer has entered into any other prior agreements for deferred payment pursuant to this section.

     4.  Except as otherwise provided in subsection 3, a customer may not enter into an agreement for deferred payment pursuant to this section more than once during any 11-month period, unless the utility agrees otherwise.

     5.  The utility may terminate service to a customer who enters into an agreement for deferred payment pursuant to this section for any failure by the customer to make payment as provided by the agreement, if:

     (a) The remaining arrearage is $50 or more; and

     (b) The utility sends written notice of its intended action to the customer at least 48 hours before it terminates service.

     6.  Each agreement for deferred payment entered into pursuant to this section must:

     (a) Specify the date on which each installment is due; and

     (b) Contain a statement, in boldface type, of the right of the utility to terminate service to the customer, upon 48-hours’ notice, for any failure by the customer to make payment as provided by the agreement.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005; R035-11, 10-26-2011)

      NAC 704.342  Program to pay bills of customers under financial hardship; coordination with other entities providing assistance to lower-income customers. (NRS 703.025, 704.210)

     1.  A utility shall provide a program for the payment of bills for customers who have difficulty paying their bills because of financial hardship.

     2.  A utility shall coordinate with governmental agencies and other entities that provide energy assistance to lower-income customers and with governmental agencies and other entities that provide services for weatherization and energy efficiency to lower-income customers to enable such agencies and entities to administer efficiently and effectively their assistance and services to lower-income customers.

     3.  A utility shall disclose to the agencies and entities described in subsection 2 information concerning the energy use of a customer, if the customer signs a release authorizing the utility to disclose that information.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.3425  Visits for service and repair. (NRS 703.025, 704.210)

     1.  If a customer is required to be present at a location for a service or repair visit by a utility, the utility shall arrange with the customer, by mutual agreement:

     (a) A 4-hour time span during which the visit will be scheduled; or

     (b) An alternate method of entry to the location.

     2.  If a service or repair employee of the utility is unable to arrive at the customer’s location during the time span scheduled with the customer pursuant to subsection 1, the utility shall use its best efforts to provide telephonic notice to the customer.

     (Added to NAC by Pub. Utilities Comm’n by R198-01, eff. 2-17-2005)

      NAC 704.343  Testing meters for accuracy. (NRS 703.025, 704.210)

     1.  Each utility shall provide or have access to a facility to determine the accuracy of its meters. A utility shall test the meter of a customer upon his or her request.

     2.  No charge may be made for performing a test once during any 12-month period. A utility may charge the customer a fee, as set forth in its tariff, for any additional test conducted during that period.

     3.  The customer may be present and may request that a qualified representative of the Commission be present at the time a test is conducted.

     4.  If a meter is tested at the request of a customer, the utility shall, within a reasonable time after the test:

     (a) Provide the customer with a written statement of the results of the test; and

     (b) Notify the customer in writing if the meter is replaced or repaired.

     5.  A utility shall prepare and maintain a record of the results of each test conducted pursuant to this section. The record must include:

     (a) The name and address of the customer;

     (b) The number for identification of the meter;

     (c) The type of meter;

     (d) The type of test;

     (e) The date on which the test was conducted;

     (f) The results of the test; and

     (g) A description of any action taken as a result of the test.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.344  Adjustment of bill when meter inaccurate. (NRS 703.025, 704.210)

     1.  If a meter is tested pursuant to NAC 704.343 and is found to be inaccurate by more than 2 percent, the bill for service of any customer affected must be adjusted as provided in this section.

     2.  Except as otherwise provided in subsection 3, if the meter has:

     (a) Under-recorded the usage of gas or electric energy, the adjustment must be made only for the period of the most recent 3 months of usage.

     (b) Over-recorded usage, the adjustment must be made only for the period of the most recent 6 months of usage.

     3.  If the utility establishes that the meter has been tampered with or used without its authorization, the adjustment must be calculated for a period not to exceed the most recent 6 months of usage or the date on which the tampering or unauthorized use began, whichever is greater.

     4.  A customer who, because of an adjustment to his or her bill, owes the utility money for service may pay that amount over a 3-month period.

     5.  The utility shall credit the account of a customer who was overcharged because of an inaccurate meter not later than 30 days after the overcharge is determined.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.346  Resolution of dispute regarding bill, charge or service. (NRS 703.025, 704.210)

     1.  If a customer disputes any bill, charge, or service, the utility shall promptly investigate the matter and report its determination to the customer. If the customer so requests, the report must be made in writing. Whether or not a written report is requested, the utility shall inform the customer of the right to file a complaint with the Division.

     2.  If the customer is not satisfied with the determination made by the utility, the customer may file a complaint with the Division.

     3.  If a complaint is filed, unless the utility agrees to waive the requirement at the request of the Division, the customer may be required by the utility to pay any disputed amount to the utility pending resolution of the complaint.

     4.  A summary of the provisions of this section must be printed on the back of each bill or notice issued by a utility. The summary must include the mailing address, telephone number, and toll-free telephone number of the Division.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.348  Refusal to provide service. (NRS 703.025, 704.210)  Except as otherwise provided in NAC 704.383, a utility may refuse service or refuse to resume service to a customer:

     1.  Until the customer complies with the requirements of the Commission and set forth in the tariff of the utility;

     2.  If the customer has obtained or attempted to obtain service by fraudulent means, unless the conditions constituting the fraud have been corrected; or

     3.  If there exists any of the conditions described in NAC 704.350.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.350  Termination of service: No prior notice. (NRS 703.025, 704.1835, 704.210)  A utility may terminate electric or gas service without prior notice only:

     1.  If an unsafe or hazardous condition related to electric or gas service is found to exist on the customer’s premises;

     2.  If the use of electric or gas service on the customer’s premises is found to be detrimental or damaging to the facilities or services of the utility or its customers;

     3.  Upon the order of any court or the Commission;

     4.  If the acts of the customer or the conditions upon the customer’s premises are such as to indicate to the utility that the customer intends to defraud it;

     5.  If the utility has tried diligently to meet the requirements for notice set forth in NAC 704.360 and 704.365 but has not been able to give such a notice;

     6.  If an event occurs which could not have been reasonably anticipated or controlled and which requires the termination of service;

     7.  If the location where service is provided has been abandoned;

     8.  If the customer obtained service without the specific credit authorization of the utility; or

     9.  If the termination without prior notice is otherwise authorized pursuant to NAC 704.302 to 704.390, inclusive.

     [Pub. Service Comm’n, Gen. Order 27 § 3.1, eff. 8-21-81]—(NAC A 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.355  Termination of service: Prior notice. (NRS 703.025, 704.1835, 704.210)

     1.  Except as otherwise provided in NAC 704.302 to 704.390, inclusive, a utility may terminate electric or gas service to a customer without the consent of the customer, after adequate notice has been given pursuant to NAC 704.360 and 704.365, for any of the following reasons:

     (a) Nonpayment of a delinquent bill.

     (b) Failure to make a security deposit, an installment payment on a delinquent bill, or a security deposit, or a guarantee, when required.

     (c) Violation of any rule of the utility.

     2.  Except as otherwise provided in NAC 704.302 to 704.390, inclusive, a utility may terminate service:

     (a) At the new location of a customer for the failure to pay a delinquent bill for residential service which the customer received at a previous location; or

     (b) If a customer receives residential service at more than one location, at any of the locations for the failure to pay a delinquent bill at any location.

     [Pub. Service Comm’n, Gen. Order 27 § 3.2, eff. 8-21-81]—(NAC A 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.360  Termination of service: Provision of notice. (NRS 703.025, 704.1835, 704.210)

     1.  If a utility has a reason for the termination of service under NAC 704.355 and intends to terminate service, the utility shall in every case send a written notice of its intended action to the customer at least 10 days before it carries out the action, except that if the customer has failed to comply with the terms of an agreement for deferred payment, the utility may terminate service upon 48-hours’ notice as provided in NAC 704.341.

     2.  If the customer is an advanced service delivery meter customer, an electric utility must include a statement with the initial notice required by subsection 1 stating that the electric utility will notify the advanced service delivery meter customer or a third person designated by the customer pursuant to NAC 704.365 in person before termination of service if:

     (a) The advanced service delivery meter customer is elderly or is a person with a disability, or whose household includes a person who is elderly or a person with a disability; and

     (b) The advanced service delivery meter customer has notified the electric utility that the advanced service delivery meter customer is elderly or is a person with a disability, or whose household includes a person who is elderly or a person with a disability.

Ê As used in this subsection, “in person” means a method of notice provided by an electric utility in which a representative of the electric utility visits the premises where an advanced service delivery meter is located and makes a reasonable attempt to contact the customer at the premises.

     3.  If the utility receives no response to the initial notice, it shall send a second notice to the customer using:

     (a) A method required by NAC 704.390, if the customer is subject to the provisions of that section; or

     (b) A method which ensures that the notice is delivered to the customer or the customer’s premises at least 48 hours before it terminates service.

     4.  The initial notice must be served upon the customer:

     (a) By personal service;

     (b) By depositing the notice with the United States Postal Service, properly addressed and postage prepaid, for delivery by first-class mail to the customer’s last known mailing address; or

     (c) If requested by the customer and within the capability of the utility, by electronic notice sent via the Internet to the most recent electronic address provided to the utility by the customer.

     5.  Service of the initial notice shall be deemed complete on the date that the notice is:

     (a) Delivered by personal service to the customer;

     (b) Deposited with the United States Postal Service, properly addressed and postage prepaid, for delivery by first-class mail to the customer’s last known mailing address; or

     (c) Sent via the Internet to the most recent electronic address provided to the utility by the customer.

     6.  Except as otherwise provided in NAC 704.390, a second notice may be communicated to the customer:

     (a) In person;

     (b) By depositing the notice with the United States Postal Service, properly addressed and postage prepaid, for delivery by first-class mail to the customer’s last known mailing address;

     (c) If requested by the customer and within the capability of the utility, by electronic notice sent via the Internet to the most recent electronic address provided to the utility by the customer;

     (d) By telephone if the person receiving the communication is 18 years of age or older and is a resident at the address where service is being provided; or

     (e) By posting the notice on the door of that residence if no one is at home.

Ê If a utility intends to change the method it normally uses to communicate a second notice, it shall send a written notice to its customers specifying the new method and the date on which it will begin using that method.

     7.  The initial notice and any second notice of an intended termination of service must contain the following information in plain language, with the information listed in paragraphs (i), (j) and (l) presented in a larger type size than the balance of the notice:

     (a) An identification of the account affected by the intended termination.

     (b) The date on or after which the intended termination will occur.

     (c) The address of the location where service will be terminated.

     (d) The reason for the intended termination, including, if the intended termination is for nonpayment, a statement designating the bill as one for actual or estimated use and specifying the total amount owed, the period over which that amount was incurred and the minimum payment required to avoid termination.

     (e) The procedures which are available to dispute or appeal from the intended termination, specifying the address and telephone number of the utility’s office which is responsible for handling complaints or inquiries.

     (f) A statement that the utility will promptly investigate any complaint or dispute and give the customer its written decision on the matter.

     (g) A statement that if the customer wishes to dispute any fact or interpretation of a regulation relied upon by the utility in its decision to terminate service, the customer must communicate with the Division. The statement must include the mailing address, telephone number and toll-free telephone number of the Division.

     (h) A statement that service will not be terminated before a resolution of the dispute if the customer pays the questioned portion of the bill at the time the dispute arises and pays all subsequent bills.

     (i) An explanation of any arrangements for payment which the utility offers to customers who have difficulty in paying their bills.

     (j) A list of the names, addresses and telephone numbers of at least two governmental agencies or other organizations which have notified the utility that they will assist customers in paying their utility bills.

     (k) An explanation of the restrictions on the termination as set forth in NAC 704.370.

     (l) A statement that a customer should notify the utility immediately if any member of the customer’s household requires the continuing use of electric or gas appliances to maintain that member’s essential health. The statement required by this paragraph must advise the customer that the customer may obtain a postponement of the termination of service pursuant to NAC 704.370.

     (m) An explanation of the utility’s fee schedule and procedures for reconnecting service.

     8.  If a utility provides a customer with an initial notice or a second notice of an intended termination of service and the customer or another adult resident of the customer’s household communicates orally with the utility concerning the notice, the utility shall explain to the customer or other adult resident each item of information which is included in the notice pursuant to subsection 7.

     9.  If a utility has a reason for the termination of service and intends to terminate service to a mobile home park or a multiunit residential complex, the utility shall use its best efforts to notify

the occupants of each family dwelling unit located within the park or complex of the utility’s intended action. The utility shall use its best efforts to notify the occupants by posting on the door of each such unit a written notice which states:

     (a) The reason for the termination of service;

     (b) The deadline for making any delinquent payments or for taking any corrective action that is necessary to avoid the termination of service; and

     (c) The date scheduled for the termination of service in the event that any delinquent payments are not made or corrective action is not taken.

Ê The utility shall provide the notice required by this subsection to the occupants of a multiunit residential complex at the same time that the utility provides notice to the customer of record for the complex.

     [Pub. Service Comm’n, Gen. Order 27 § 4.1, eff. 8-21-81]—(NAC A 8-4-83; 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005; R035-11, 10-26-2011)

      NAC 704.365  Termination of service: Designation and notification of third person. (NRS 703.025, 704.1835, 704.210)

     1.  A utility shall:

     (a) Give written notice to each customer who is elderly or who is a person with a disability that the customer may designate a third person to receive notification of the pending termination of service. The utility shall give the written notice:

          (1) At the time the customer applies for service; or

          (2) If the customer applies for service by telephone, at the time the customer receives the first bill for service.

     (b) Upon the written request of a customer, notify a third person designated by the customer of an intended termination of service by sending the third person a duplicate notice. The third person need not pay the bill.

     (c) Make a diligent effort to notify the designated third person, but the utility does not incur any liability for a failure to notify the third person.

     2.  As used in this section, “third person” includes any guarantor of the customer making the designation and any other person or public agency, other than the customer or the utility.

     [Pub. Service Comm’n, Gen. Order 27 § 4.2, eff. 8-21-81]—(NAC A 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.370  Termination of service: Postponement when dangerous to health. (NRS 703.025, 704.1835, 704.210)

     1.  A utility shall postpone the termination of service to a customer for 30 days after the day on which it receives both of the following:

     (a) A statement from a licensed physician, public health official or advanced practice registered nurse certifying that any termination of service would be especially dangerous to the health of the customer or another person who is a permanent resident of the premises where service is being provided and would constitute an emergency affecting the health of the person. The licensed physician, public health official or advanced practice registered nurse may consider the feebleness, advanced age, physical disability, mental incapacity, serious illness or other infirmity of the person affected. Except as otherwise provided in this paragraph, the statement must be in writing and include:

          (1) The address where service is provided;

          (2) The name of the person whose health would be especially endangered;

          (3) A clear description of the nature of the emergency; and

          (4) The name, title and signature of the licensed physician, public health official or advanced practice registered nurse certifying the emergency.

Ê The statement may be made by telephone if a written statement is sent for confirmation to the utility within 5 days after the oral statement is made.

     (b) A statement signed by the customer:

          (1) That the customer is unable to pay for service in accordance with the requirements of the utility’s billing; or

          (2) That the customer is able to pay for service only in installments. The utility shall allow an installment period of up to 90 days for the customer to pay the bills of the customer.

     2.  The postponement may be extended for an additional 30 days if the utility receives a renewed medical certificate before the expiration of the original period of postponement.

     3.  If a utility again intends to terminate service after a customer has obtained a postponement pursuant to subsection 1, the utility shall give written notice of its intended action:

     (a) To the Division;

     (b) To the customer and to any other person who is required to receive notice pursuant to NAC 704.360 or 704.365; and

     (c) To governmental agencies or other organizations which have notified the utility that they will assist customers in paying their utility bills.

     4.  Before the period of postponement expires, the customer must arrange with the utility to pay the bills of the customer in accordance with its applicable rules.

     [Pub. Service Comm’n, Gen. Order 27 § 5.1, eff. 8-21-81]—(NAC A 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005; R061-17, 12-19-2017)

      NAC 704.372  Termination of service: Postponement upon agreement to pay delinquent bill. (NRS 703.025, 704.1835, 704.210)

     1.  If the service of a customer is being terminated for nonpayment of a delinquent bill or any installment due on such a bill, the utility may postpone the termination, regardless of whether the customer is qualified to make deferred payments pursuant to NAC 704.338 or 704.341, if the utility determines that the customer is able to pay the amount owed and the customer agrees to a plan for payment.

     2.  In determining whether a customer is able to pay the amount owed, the utility shall consider:

     (a) The amount owed;

     (b) The length of time the bill or installment is past due;

     (c) The date the account was established;

     (d) The history of payment maintained by the customer with the utility;

     (e) The credit history of the customer;

     (f) The period for payment;

     (g) Any extraordinary circumstances of the case; and

     (h) Any information presented to the utility by the customer.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.375  Termination of service: Miscellaneous restrictions. (NRS 703.025, 704.1835, 704.210)

     1.  Except as otherwise provided in subsections 1 and 2 of NAC 704.350, a utility may not terminate service to a customer on a weekend, on a holiday or on the day before a weekend or a holiday.

     2.  Except as otherwise provided in subsections 1 and 2 of NAC 704.350, an electric utility may terminate service to an advanced service delivery meter customer between the hours of 7:30 a.m. and 12:30 p.m. only.

     3.  Except as otherwise provided in subsections 1 and 2 of NAC 704.350, a utility may not terminate service to a customer if the utility has knowledge that the customer or a permanent resident of the customer’s household:

     (a) Is confined to the location where service is provided;

     (b) Is on a life support device which, to operate effectively at that location, requires service to be provided by the utility; and

     (c) Is likely to die without the aid of the life support device if the utility terminates service.

     4.  An electric utility may not terminate service to an advanced service delivery meter customer because of nonpayment if the outstanding amount owed by the customer is $100 or less. Sierra Pacific Power Company may not terminate service to a dual-billed gas and electric customer in its northern Nevada service territory because of nonpayment if the outstanding amount owed by the customer for electric or gas service, or for combined gas and electric service, is $100 or less.

     5.  Except as otherwise provided in subsection 4, a utility may not terminate service to a customer because of nonpayment if the outstanding amount owed by the customer is $50 or less.

     6.  If a utility intends to terminate service to a customer or a multiunit residential complex because of nonpayment, the utility shall postpone the termination if the termination would occur during a forecasted period of extreme temperature for the local geographical area which encompasses the location where service is provided and which typically experiences similar temperature conditions as the location where service is provided.

     7.  As used in this section:

     (a) “Forecasted period of extreme temperature” means any period of 24 hours for which the National Weather Service has issued a forecast predicting that, at some point during the period of 24 hours, the outside temperature:

          (1) Within the northern Nevada service territory of Sierra Pacific Power Company will be:

               (I) Ninety-five degrees Fahrenheit or higher for an electric customer who is subject to the provisions of NAC 704.390;

               (II) One hundred five degrees Fahrenheit or higher for an electric customer who is not subject to the provisions of NAC 704.390;

               (III) Twenty degrees Fahrenheit or lower for an electric customer who is subject to the provisions of NAC 704.390; or

               (IV) Fifteen degrees Fahrenheit or lower for an electric customer who is not subject to the provisions of NAC 704.390.

          (2) Within the southern Nevada service territory of Nevada Power Company will be:

               (I) One hundred degrees Fahrenheit or higher for an electric customer who is subject to the provisions of NAC 704.390 and who lives in a mobile home constructed before January 1, 2000;

               (II) One hundred three degrees Fahrenheit or higher for an electric customer who is subject to the provisions of NAC 704.390 and who does not live in a mobile home constructed before January 1, 2000;

               (III) One hundred five degrees Fahrenheit or higher for an electric customer who is not subject to the provisions of NAC 704.390;

               (IV) Twenty degrees Fahrenheit or lower for an electric customer who is subject to the provisions of NAC 704.390; or

               (V) Fifteen degrees Fahrenheit or lower for an electric customer who is not subject to the provisions of NAC 704.390.

          (3) Within the service territory of any gas utility will be, for all customers:

               (I) One hundred five degrees Fahrenheit or higher; or

               (II) Fifteen degrees Fahrenheit or lower.

     (b) “National Weather Service” means the National Weather Service of the National Oceanic and Atmospheric Administration of the United States Department of Commerce.

     [Pub. Service Comm’n, Gen. Order 27 § 5.2, eff. 8-21-81]—(NAC A by Pub. Utilities Comm’n by R198-01, 2-17-2005; R035-11, 10-26-2011)

      NAC 704.380  Termination of service: Restrictions regarding certain delinquent bills. (NRS 703.025, 704.1835, 704.210)

     1.  A utility may not terminate residential service to a customer because of the failure to pay a delinquent bill for a nonresidential class of service.

     2.  A utility may not terminate service to a customer because of delinquent bills that were incurred by the previous occupant of the location where service is provided.

     [Pub. Service Comm’n, Gen. Order 27 § 5.3, eff. 8-21-81]—(NAC A 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005)

      NAC 704.383  Resumption of service. (NRS 703.025, 704.1835, 704.210)

     1.  A utility shall resume service to a customer:

     (a) If the customer has complied with the requirements of the utility set forth in its tariff;

     (b) Upon the order of any court of competent jurisdiction or the Commission; or

     (c) If the statement conforms to the requirements of that paragraph, immediately upon its receipt of the statement described in paragraph (a) of subsection 1 of NAC 704.370.

     2.  Except as otherwise provided in subsection 3, if a utility terminates service to a customer because of nonpayment and the customer or another person or entity on behalf of the customer subsequently pays the utility in an amount that is sufficient to resume service, the utility shall resume service to:

     (a) A gas and electric customer not served through an advanced service delivery meter:

          (1) On the same day that the payment is received by the utility, if the payment is received by the utility on or before 10 a.m.; or

          (2) Within 24 hours after the time when the payment is received by the utility, if the payment is received by the utility after 10 a.m.

     (b) An advanced service delivery meter customer:

          (1) On the same day that the payment is received by the electric utility, if the payment is received by the electric utility on or before 2 p.m.; or

          (2) Within 24 hours, if the payment is received by the electric utility after 2 p.m.

     3.  If a utility terminates service to a multiunit residential complex because of nonpayment and the customer of record or another person or entity on behalf of the customer of record subsequently pays the utility in an amount that is sufficient to resume service, the utility shall resume service to each unit within the multiunit residential complex on a priority basis, subject to emergency situations, including, but not limited to, emergency situations affecting the health of a person as described in paragraph (a) of subsection 1 of NAC 704.370.

     4.  A utility may charge a fee, as set forth in its tariff, to resume service to a customer.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005; R035-11, 10-26-2011)

      NAC 704.385  Written notice to customers and outreach concerning elderly persons and persons with disability. (NRS 703.025, 704.210)

     1.  A utility shall give written notice to:

     (a) Each new customer at the time the customer applies for service; and

     (b) Each customer at least once annually by means of a notice enclosed with a bill,

Ê that special assistance is available to elderly persons and to persons with a disability who are unable to pay their bills on a timely basis and that such a person must communicate with the utility if the person wishes to benefit from that special assistance.

     2.  If the customer is an advanced service delivery meter customer, the electric utility must include a statement with the written notice given pursuant to subsection 1 stating that the electric utility will notify the advanced service delivery meter customer or a third person designated by the customer pursuant to NAC 704.365 in person before termination of service for nonpayment if:

     (a) The advanced service delivery meter customer is elderly or is a person with a disability, or whose household includes a person who is elderly or a person with a disability; and

     (b) The advanced service delivery meter customer has notified the electric utility that the advanced service delivery meter customer is elderly or is a person with a disability, or whose household includes a person who is elderly or a person with a disability.

Ê As used in this subsection, “in person” means a method of notice provided by an electric utility in which a representative of the electric utility visits the premises where an advanced service delivery meter is located and makes a reasonable attempt to contact the customer at the premises.

     3.  An electric utility shall conduct outreach to identify the number of its customers’ households that include a person who is elderly or a person with a disability.

     [Pub. Service Comm’n, Gen. Order 27 § 6.1, eff. 8-21-81]—(NAC A by Pub. Utilities Comm’n by R198-01, 2-17-2005; R035-11, 10-26-2011)

      NAC 704.390  Notice of termination of service to customer who is elderly or who is person with disability. (NRS 703.025, 704.1835, 704.210)

     1.  A utility may not terminate service to a customer who is elderly or who is a person with a disability, or whose household includes a person who is elderly or a person with a disability, unless the utility has notified the customer or another resident of the customer’s household who is 18 years of age or older at the address where service is provided at least 48 hours before the date upon which the termination would occur.

     2.  An electric utility shall make the notification required by subsection 1 in person. For the purposes of this subsection, “in person” means a method of notice provided by an electric utility in which a representative of the utility visits the premises where an advanced service delivery meter is located and makes a reasonable attempt to contact the customer at the premises.

     3.  A gas utility shall make the notification required by subsection 1 in person or by telephone.

     4.  When providing the notice required by subsection 1, the utility shall explain to the customer or other adult resident each item of information which subsection 7 of NAC 704.360 requires to be included in a written notice of intent to terminate service.

     5.  In addition to the notice required by subsection 1, the utility shall notify governmental agencies or other organizations which have notified the utility that they will assist customers in paying their utility bills.

     [Pub. Service Comm’n, Gen. Order 27 § 6.2, eff. 8-21-81]—(NAC A 1-5-89; A by Pub. Utilities Comm’n by R198-01, 2-17-2005; R035-11, 10-26-2011)

TERMINATION OF RESIDENTIAL WATER SERVICE

      NAC 704.391  Definitions. (NRS 703.025, 704.1835, 704.210)  As used in NAC 704.391 to 704.3936, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.3912 to 704.3922, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3912  “Customer” defined. (NRS 703.025, 704.1835, 704.210)  “Customer” means a person:

     1.  Who receives or applies to receive residential water service from a utility or landlord;

     2.  In whose name such service is or is to be provided, as evidenced by a signature on the application or contract for such service; or

     3.  In whose name such service is or is to be provided, as may be established by other demonstrable evidence that the person requested the utility or landlord to provide such service in that person’s name.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3914  “Division” defined. (NRS 703.025, 704.1835, 704.210)  “Division” means the Division of Consumer Complaint Resolution of the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3916  “Especially dangerous to health” defined. (NRS 703.025, 704.1835, 704.210)  “Especially dangerous to health” means a condition or event likely to cause serious impairment to the health of a person who appears to be unable, without assistance, to manage his or her own resources, carry out the activities of daily living, or protect himself or herself from neglect or a hazardous situation.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3918  “Landlord” defined. (NRS 703.025, 704.1835, 704.210)  “Landlord” means a landlord of a mobile home park:

     1.  Who is subject, in whole or in part, to the provisions of chapter 118B of NRS; and

     2.  Who pays a provider for water service and who distributes or resells the water to one or more residential tenants.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.392  “Termination of service” defined. (NRS 703.025, 704.1835, 704.210)  “Termination of service” means the intentional cessation of service by a utility or landlord to a customer which has not been requested by the customer and, in the case of a utility, which occurs pursuant to the tariffs of the utility.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3922  “Utility” defined. (NRS 703.025, 704.1835, 704.210)  “Utility” means a public utility, as defined in NRS 704.020, that furnishes residential water service to customers.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3924  Terms of agreement with customer. (NRS 703.025, 704.1835, 704.210)

     1.  Except as otherwise provided in this section, a utility or landlord may not enter into any agreement with a customer under terms that are inconsistent with the provisions of NAC 704.391 to 704.3936, inclusive.

     2.  Notwithstanding the provisions of NAC 704.391 to 704.3936, inclusive:

     (a) A utility may enter into an agreement with a customer under terms that are more favorable to the customer than those provided by NAC 704.391 to 704.3936, inclusive, if the more favorable terms are consistent with the tariffs of the utility.

     (b) A landlord may enter into an agreement with a customer under terms that are more favorable to the customer than those provided by NAC 704.391 to 704.3936, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3926  Termination without prior notice. (NRS 703.025, 704.1835, 704.210)  A utility or landlord may terminate water service without prior notice only:

     1.  If an unsafe or hazardous condition related to water service is found to exist on the customer’s premises;

     2.  If the use of water service on the customer’s premises is found to be detrimental or damaging to the facilities or services of the utility or the landlord, or to other customers;

     3.  Upon the order of any court or the Commission;

     4.  If the acts of the customer or the conditions upon the customer’s premises are such as to indicate to the utility or landlord that the customer intends to defraud it;

     5.  If the utility or landlord has tried diligently to meet the requirements for notice set forth in NAC 704.393 but has not been able to give such notice;

     6.  If an event occurs which could not have been reasonably anticipated or controlled and which requires the termination of service;

     7.  If the location where service is provided has been abandoned;

     8.  If the customer obtained service without the specific credit authorization of the utility or landlord; or

     9.  If the termination without prior notice is otherwise authorized pursuant to NAC 704.391 to 704.3936, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3928  Termination after notice. (NRS 703.025, 704.1835, 704.210)  Except as otherwise provided in NAC 704.391 to 704.3936, inclusive, a utility or landlord may terminate water service to a customer without the consent of the customer, after adequate notice has been given pursuant to NAC 704.393, for any of the following reasons:

     1.  Nonpayment of a delinquent bill for water service.

     2.  Failure to make a security deposit for water service, an installment payment on a delinquent bill or security deposit for water service, or a guarantee, when required.

     3.  Negligent or wasteful use of water on the premises of the customer.

     4.  Violation of any rule of the utility or landlord relating to water service.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.393  Provision of notice of termination. (NRS 703.025, 704.1835, 704.210)

     1.  Except as otherwise provided in NAC 704.3932, if a utility or landlord has a reason for the termination of service pursuant to NAC 704.3928 and intends to terminate service, the utility or landlord shall in every case send a written notice of its intended action to the customer at least 10 days before it carries out the action.

     2.  If the utility or landlord receives no response to the initial notice, it shall send a second notice to the customer using a method which ensures that the notice is delivered to the customer or the customer’s premises at least 48 hours before it terminates service.

     3.  The initial notice must be served upon the customer:

     (a) By personal service; or

     (b) By depositing the notice with the United States Postal Service, properly addressed and postage prepaid, for delivery by first-class mail to the customer’s last known mailing address.

     4.  Service of the initial notice shall be deemed complete on the date that the notice is:

     (a) Delivered by personal service to the customer; or

     (b) Deposited with the United States Postal Service, properly addressed and postage prepaid, for delivery by first-class mail to the customer’s last known mailing address.

     5.  The initial notice and any second notice of an intended termination of service must contain the following information in plain language, with the information listed in paragraphs (i) and (j) presented in a larger type size than the balance of the notice:

     (a) An identification of the account affected by the intended termination.

     (b) The date on which the intended termination will occur.

     (c) The address of the location where service will be terminated.

     (d) The reason for the intended termination, including, if the intended termination is for nonpayment, a statement designating the bill as one for actual or estimated use and specifying the total amount owed, the period over which that amount was incurred and the minimum payment required to avoid termination.

     (e) The procedures which are available to dispute or appeal from the intended termination, specifying the address and telephone number of the utility’s or landlord’s office which is responsible for handling complaints or inquiries.

     (f) A statement that the utility or landlord will promptly investigate any complaint or dispute and give the customer its written decision on the matter.

     (g) A statement that if the customer wishes to dispute any fact or interpretation of a regulation relied upon by the utility or landlord in its decision to terminate service, the customer must communicate with the Division. The statement must include the mailing address, telephone number and toll-free telephone number of the Division.

     (h) A statement that service will not be terminated before a resolution of the dispute if the customer pays the questioned portion of the bill at the time the dispute arises and pays all subsequent bills.

     (i) An explanation of any arrangements for payment which the utility or landlord offers to customers who have difficulty in paying their bills, including the program of deferred payments described in NAC 704.3932.

     (j) If the location where service will be terminated is in a county whose population is 50,000 or more:

          (1) The appropriate addresses and telephone numbers of the Division of Welfare and Supportive Services of the Department of Health and Human Services; and

          (2) A list of the names, addresses and telephone numbers of other organizations which have notified the utility that they will help customers who are unable to pay their bills.

     (k) An explanation of the restrictions on the termination as set forth in NAC 704.3936.

     (l) An explanation of the utility’s or landlord’s fee schedule and procedures for reconnecting service.

     6.  If a utility has a reason for the termination of service and intends to terminate service to a mobile home park or a multiunit residential complex, the utility shall use its best efforts to notify the occupants of each family dwelling unit located within the park or complex of the utility’s intended action. The utility shall use its best efforts to notify the occupants by posting on the door of each such unit a written notice which states:

     (a) The reason for the termination of service;

     (b) The deadline for making any delinquent payments or for taking any corrective action that is necessary to avoid the termination of service; and

     (c) The date scheduled for the termination of service in the event that any delinquent payments are not made or corrective action is not taken.

Ê The utility shall provide the notice required by this subsection to the occupants of a multiunit residential complex at the same time that the utility provides notice to the customer of record for the complex.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3932  Program of deferred payments. (NRS 703.025, 704.1835, 704.210)

     1.  Except as otherwise provided in this section, if a utility or landlord intends to terminate service to a customer because of nonpayment, the utility or landlord shall first offer the customer a program of deferred payments.

     2.  A program of deferred payments must require the customer to pay:

     (a) The arrearage within 60 days after the execution of the agreement, in three equal payments, with the first payment to be made upon the execution of the agreement; and

     (b) All future bills when due.

     3.  Except as otherwise provided in subsection 4, the utility or landlord shall offer the customer a program of deferred payments in each notice of intent to terminate service because of nonpayment which is provided to the customer pursuant to NAC 704.393.

     4.  The utility or landlord may terminate service to a customer who is participating in a program of deferred payments pursuant to this section for any failure by the customer to make payment as required by the program, if the utility or landlord sends written notice of its intended action to the customer at least 24 hours before it terminates service.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3934  Postponement of termination during forecasted period of extreme heat. (NRS 703.025, 704.1835, 704.210)

     1.  If a utility or landlord intends to terminate service to a customer because of nonpayment, the utility or landlord shall postpone the termination if the termination would occur during a forecasted period of extreme heat for the local geographical area which encompasses the location where service is provided and which typically experiences similar temperature conditions as the location where service is provided.

     2.  As used in this section:

     (a) “Forecasted period of extreme heat” means any period of 24 hours for which the National Weather Service has issued a forecast predicting that, at some point during the period of 24 hours, the outside temperature will be 105 degrees Fahrenheit or higher.

     (b) “National Weather Service” means the National Weather Service of the National Oceanic and Atmospheric Administration of the United States Department of Commerce.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005)

      NAC 704.3936  Postponement of termination when dangerous to health. (NRS 703.025, 704.1835, 704.210)

     1.  If a utility or landlord intends to terminate service to a customer because of nonpayment, the utility or landlord shall postpone the termination for 30 days after the day on which it receives both of the following:

     (a) A statement from a licensed physician, public health official or advanced practice registered nurse certifying that any termination of service would be especially dangerous to the health of the customer or another person who is a permanent resident of the premises where service is being provided and would constitute an emergency affecting the health of the person. The licensed physician, public health official or advanced practice registered nurse may consider the feebleness, advanced age, physical disability, mental incapacity, serious illness or other infirmity of the person affected and may also consider the necessity of cooling to maintain the health of the person affected, such as the necessity of cooling provided by an evaporative cooler or similar device. Except as otherwise provided in this paragraph, the statement must be in writing and include:

          (1) The address where service is provided;

          (2) The name of the person whose health would be especially endangered;

          (3) A clear description of the nature of the emergency; and

          (4) The name, title and signature of the licensed physician, public health official or advanced practice registered nurse certifying the emergency.

Ê The statement may be made by telephone if a written statement is sent for confirmation to the utility or landlord within 5 days after the oral statement is made.

     (b) A statement signed by the customer:

          (1) That he or she is unable to pay for service in accordance with the requirements of the utility’s or landlord’s billing; or

          (2) That he or she is able to pay for service only in installments. The utility or landlord shall allow an installment plan of up to 60 days for the customer to pay the bills of the customer. The installment plan must consist of three equal payments with the first payment to be made when the customer presents the signed statement to the utility or landlord.

     2.  The postponement may be extended for an additional 30 days if the utility or landlord receives a renewed medical certificate before the expiration of the original period of postponement.

     3.  If a utility or landlord again intends to terminate service after a customer has obtained a postponement pursuant to subsection 1, the utility or landlord shall give written notice of its intended action:

     (a) To the Division;

     (b) To the customer; and

     (c) To each governmental agency or other organization which has notified the utility or landlord that it will help customers who are unable to pay their bills.

     4.  Before the period of postponement expires, the customer must arrange with the utility or landlord to pay the bills of the customer in accordance with its applicable rules.

     (Added to NAC by Pub. Utilities Comm’n by R126-02, eff. 2-17-2005; A by R061-17, 12-19-2017)

RIGHTS AND OBLIGATIONS OF CUSTOMERS OF CERTAIN TELECOMMUNICATION PROVIDERS

      NAC 704.395  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.395 to 704.421, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.3955 to 704.403, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R059-02, 2-17-2005)

      NAC 704.3955  “Connection fee” defined. (NRS 703.025, 704.210)  “Connection fee” means the charge for establishing service to a customer, defined in the tariff of the utility as the installation or service connection charge.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.396  “Cosigner” defined. (NRS 703.025, 704.210)  “Cosigner” means a person who assumes liability for the payment for service provided by a utility if a customer fails to pay for the service.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.3965  “Customer” defined. (NRS 703.025, 704.210)  “Customer” means a person:

     1.  Who receives or applies to receive any residential telecommunication service from a utility;

     2.  In whose name such service is or is to be provided, as evidenced by a signature on the application or contract for such service; or

     3.  In whose name such service is or is to be provided, as may be established by other demonstrable evidence that the person requested the utility to provide such service in that person’s name.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R059-02, 2-17-2005)

      NAC 704.397  “Deposit” defined. (NRS 703.025, 704.210)  “Deposit” means money provided by a customer to ensure payment for service provided by a utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.3975  “Division” defined. (NRS 703.025, 704.210)  “Division” means the Division of Consumer Complaint Resolution of the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.398  “Elderly” defined. (NRS 703.025, 704.210)  “Elderly” means a person who is 60 years of age or older.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.3985  “Especially dangerous to health” defined. (NRS 703.025, 704.210)  “Especially dangerous to health” means a condition or event likely to cause serious impairment to the health of a person who appears to be unable, without assistance, to manage his or her own resources, carry out the activities of daily living, or protect himself or herself from neglect or a hazardous situation.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.399  “Guarantor” defined. (NRS 703.025, 704.210)  “Guarantor” means a person who assumes liability for the payment of a deposit if a customer fails to pay the deposit.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.3995  “Person with a disability” defined. (NRS 703.025, 704.210)  “Person with a disability” means a person who has a physical or mental disability for which he or she receives benefits from a governmental agency.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.401  “Satisfactory credit” defined. (NRS 703.025, 704.210)  “Satisfactory credit” means credit that is not unsatisfactory credit.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4015  “Termination of service” defined. (NRS 703.025, 704.210)  “Termination of service” means the intentional cessation of service by a utility to a customer that has not been requested by the customer.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.402  “Third person” defined. (NRS 703.025, 704.210)  “Third person” includes any person or public agency other than the customer making the designation or the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4025  “Unsatisfactory credit” defined. (NRS 703.025, 704.210)  “Unsatisfactory credit” means the credit of a customer who, within the preceding 12 months:

     1.  Has had his or her service terminated for nonpayment of a delinquent bill or any installment due on such a bill; or

     2.  Has had dishonored two or more checks drawn by him or her in payment for service.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.403  “Utility” defined. (NRS 703.025, 704.210)  “Utility” means a public utility, as defined in NRS 704.020, that furnishes basic service.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A 10-25-95)

      NAC 704.404  Applicability; purpose. (NRS 703.025, 704.210)  The provisions of NAC 704.395 to 704.421, inclusive:

     1.  Apply to telephone service furnished to residential customers by a telecommunication provider which provides basic service.

     2.  Provide guidance to a small-scale provider of last resort that is not a competitive supplier and which provides service through less than 10,000 access lines regarding the scope and substance of the issues which must be addressed in the tariffs that must be filed with the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A 10-25-95; A by Pub. Utilities Comm’n by R059-02, 2-17-2005; R136-07, 1-30-2008; R040-08, 9-18-2008)

      NAC 704.4045  Records of utility. (NRS 703.025, 704.210)

     1.  Each utility shall prepare and maintain records for at least 1 year.

     2.  The records must contain:

     (a) The number and accumulated amounts of deposits that have been collected and returned; and

     (b) For each of its customers:

          (1) His or her payment performance;

          (2) The amount for each billing period;

          (3) The number and general description of the written complaints filed with the utility;

          (4) The number of agreements for payment entered into by the utility; and

          (5) The number of terminations and reconnections of service.

     3.  Upon the request of the Commission, a utility shall submit to the Commission, in writing, a summary of the information contained in those records.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4051  Dissemination of information concerning customers. (NRS 703.025, 704.210)  Except for information contained in its telephone directory list, a utility may not provide any information concerning its customers to any person for commercial purposes without the approval of the Commission. Nothing in this section shall be deemed to preclude a utility from providing any person, including any other utility or telecommunication provider, with information necessary to provide utility services.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.406  Availability of information to customers. (NRS 703.025, 704.210)  Each utility shall make available to each of its customers, upon request, information describing the services it provides and specifying the rates and charges for those services.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4065  Notice of programs for customers with special needs. (NRS 703.025, 704.210)

     1.  A utility shall notify each customer that special programs may be available for customers who are elderly or persons with a disability or have other special needs.

     2.  The notice required by subsection 1 must:

     (a) Be made by means of a notice on a bill or enclosed with a bill;

     (b) Be made not less frequently than once each year;

     (c) State that information concerning these programs may be found in NAC 704.395 to 704.421, inclusive, or obtained from the business office of the utility; and

     (d) Be printed in a type size that is not smaller than 12-point type or font.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R059-02, 2-17-2005)

      NAC 704.407  Terms of agreement with customer. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsection 2, a utility may not enter into any agreement with a customer under terms that are inconsistent with the provisions of NAC 704.395 to 704.421, inclusive, unless it informs the customer of his or her rights under those sections.

     2.  Notwithstanding the provisions of NAC 704.395 to 704.421, inclusive, a utility may enter into an agreement with a customer under terms that are more favorable to the customer than those provided by NAC 704.395 to 704.421, inclusive, if the more favorable terms are consistent with the tariffs of the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R059-02, 2-17-2005)

      NAC 704.408  Application for service. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsection 2, a customer may make an application for service by mail or by telephone.

     2.  If there is reason to believe that a customer applying for service has defrauded, is defrauding, or intends to defraud the utility, or if other good cause exists, the utility may refuse to accept an application for service made by mail or by telephone.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4085  Establishment of credit. (NRS 703.025, 704.210)

     1.  A utility may require a customer to establish credit before it:

     (a) Furnishes service; or

     (b) Resumes service after a termination of service, if the customer:

          (1) Has not previously paid a deposit to the utility; or

          (2) Has paid a deposit, but it has been returned to the customer in whole or in part, applied to his or her account, or treated as part of a new deposit.

     2.  For the purposes of this section, a customer establishes credit if he or she:

     (a) Pays a deposit to the utility;

     (b) Has, during the 2 years preceding the request for service, been a customer of:

          (1) The utility and has established satisfactory credit; or

          (2) Another municipal or regulated telephone utility, has made timely payment of each bill issued to him or her during the most recent 12 months of service, and the record of payment can be verified;

     (c) Uses a cosigner or guarantor, at the option of the utility, with credit acceptable to the utility;

     (d) Receives benefits from a retirement plan or the Social Security Administration, unless he or she has unsatisfactory credit; or

     (e) Demonstrates creditworthiness in any other manner satisfactory to the utility.

     3.  Except as otherwise provided in NAC 704.409, a customer may not be required by a utility to establish credit in any particular manner described in subsection 2.

     4.  Upon the request of a customer, a utility shall provide a form to use in requesting his or her credit history from another utility.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.409  Deposit: Generally. (NRS 703.025, 704.210)

     1.  A customer may be required to pay a deposit or the balance of a deposit if the customer has unsatisfactory credit or cannot establish credit in any other manner permitted by subsection 2 of NAC 704.4085 and:

     (a) He or she has not previously paid a deposit;

     (b) He or she has paid less than the full amount of the deposit otherwise required pursuant to subsection 4; or

     (c) His or her deposit has been returned in whole or in part, applied to his or her account, or treated as part of a new deposit.

     2.  If a customer cannot establish credit in any other manner permitted by subsection 2 of NAC 704.4085 the utility may, for the purpose of determining whether the customer will be required to pay a deposit, consider:

     (a) Whether the customer has been continuously employed by the same employer for at least 1 year;

     (b) In the case of a customer who has recently been divorced or separated and is applying for service in his or her own name, the record of payment for any service previously furnished to his or her household; and

     (c) Any other factor set forth in the tariff of the utility.

     3.  Any deposit paid by a customer must be paid in cash. Unless there is reason to believe that the customer has defrauded, is defrauding, or intends to defraud the utility, or other good cause exists, a deposit may be paid by mail.

     4.  The amount of any deposit required or held by a utility may not exceed:

     (a) In the case of a customer with unsatisfactory credit for whom the utility can determine actual usage, twice the customer’s average monthly bill for service, including toll service; or

     (b) In any other case, $100 or an amount equal to twice the average estimated monthly bill for service, whichever is less.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R143-13, 10-24-2014)

      NAC 704.4095  Payment of deposit and connection fee. (NRS 703.025, 704.210)

     1.  A customer who pays a deposit or a connection fee, or both, may:

     (a) Be required to pay the entire amount of the deposit and connection fee before service is provided; or

     (b) Enter into an agreement with the utility for payment of the deposit and connection fee in installments if the customer’s credit is satisfactory and the total amount of the deposit and connection fee:

          (1) Exceeds $50; or

          (2) Is less than $50, if the customer contacts the utility and indicates the existence of circumstances that would result in hardship if the customer were required to pay the deposit and connection fee in one installment.

     2.  If there is an agreement for payment in installments:

     (a) The customer may be required to pay:

          (1) An amount equal to at least one-third of the total amount of the deposit and connection fee, before service is provided;

          (2) The remainder of the deposit and connection fee, in not more than two equal installments, not later than 30 and 60 days, respectively, after the date of the agreement; and

          (3) Interest, at a rate set forth in the tariff of the utility, on any unpaid portion of the deposit or connection fee.

     (b) The service of the customer may be terminated for a failure to pay any part of the deposit or connection fee as agreed and, in such a case, the customer may be required to pay the full amount of the deposit and connection fee, plus any other money owed the utility, before service is restored.

     (c) Service to the customer may be terminated without any further notice if:

          (1) The customer fails to pay any bill for service received or any part of the deposit or connection fee; and

          (2) The agreement is in writing and contains a statement, in boldface type, of the right of termination.

     (d) The customer must be informed of the provisions of this subsection at the time he or she enters into the agreement.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4105  Deposit: Return. (NRS 703.025, 704.210)  If a deposit has been paid by a customer and the customer has established a record of timely payments for 12 consecutive months, the utility shall return the deposit to the customer.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.411  Cosigners and guarantors. (NRS 703.025, 704.210)

     1.  A cosigner or guarantor must be a customer of the utility providing service to the customer for whom the cosigner or guarantor is acting.

     2.  The liability of a:

     (a) Cosigner ceases after the customer has made 12 consecutive timely monthly payments to the utility.

     (b) Guarantor is limited to the amount of the deposit owed by the customer and ceases after the date the deposit is required to be returned to the customer pursuant to NAC 704.4105.

     3.  A cosigner or guarantor who is required to make any payment for a customer may pay the amount owed within a period of not more than 3 months.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.412  Contents of bill for service. (NRS 703.025, 704.210)  Each bill for service issued by a utility to a customer must set forth:

     1.  Any previous balance;

     2.  The amount due for service provided during the current billing period;

     3.  Sufficient information upon which to calculate any charge for late payment;

     4.  Any other authorized charge or tax;

     5.  Any unregulated charge;

     6.  The total of the preceding amounts;

     7.  The first and last day of the billing period for local service;

     8.  The date the bill is past due;

     9.  A summary of the provisions of NAC 704.4145, as required by subsection 4 of that section; and

     10.  The telephone number of the utility where the customer may obtain information about his or her bill or the service provided.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4125  Payment of bill for service. (NRS 703.025, 704.210)

     1.  A bill for service issued by a utility is due:

     (a) Upon deposit of the bill with the United States Postal Service for delivery to the customer by first-class mail; or

     (b) In the case of delivery by other means, upon delivery of the bill to the billing address of the customer.

     2.  A customer may pay the bill:

     (a) Unless there is reason to believe that he or she has defrauded, is defrauding or intends to defraud the utility, or other good cause exists, by depositing payment with the United States Postal Service for delivery to the utility by first-class mail;

     (b) By making payment at the business office of the utility; or

     (c) By making payment to any person authorized by the utility to accept payment.

     3.  Except as otherwise provided in this subsection, the date a bill is past due may not be earlier than 15 days after its issuance. If the last day for payment before the past due date falls on a Sunday, legal holiday or any other day on which the office of a utility used for the payment of bills is closed, the last day for payment is the next business day. Payment of a bill by first-class mail is timely if the payment is received by the utility not more than 3 days after the past due date.

     4.  A utility may charge a customer a fee, as set forth in its tariff, for:

     (a) The return of an unpaid check.

     (b) The late payment of a bill.

     (c) The use of a credit card to make a payment to the utility, except a small-scale provider of last resort that is not a competitive supplier shall not charge a customer a fee for the use of a credit card to make a payment to the small-scale provider of last resort that is not a competitive supplier or enter into an agreement with a third-party credit card service which charges a customer such a fee, unless the fee has been reviewed and approved by the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R059-02, 2-17-2005; R040-08, 9-18-2008)

      NAC 704.413  Agreement for deferred payment of bill. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsection 2, if a customer is delinquent in the payment of any bill and requests that the utility accept deferred payment, the utility shall do so if the customer signs a written agreement to pay:

     (a) At least 40 percent of the delinquent amount of the bill at the time of the agreement;

     (b) The balance of the bill, in three equal monthly installments, within 90 days after the date of the agreement; and

     (c) All future bills when due.

     2.  Unless the utility otherwise agrees, a customer may not make deferred payment pursuant to this section if, during the preceding 12 months:

     (a) He or she has made another deferred payment pursuant to this section; or

     (b) His or her service has been terminated for nonpayment of a delinquent bill or any installment due on such a bill.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4135  Apportionment of partial payment of bill. (NRS 703.025, 704.210)  If a utility receives from a customer a partial payment for local and toll service, with no explanation of the manner in which the payment is to be applied, the utility shall apportion the payment in the ratio that the charge for local service bears to the charge for toll service.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.414  Credit to account of customer. (NRS 703.025, 704.210)

     1.  A utility shall, if it verifies that a credit is required under the provisions of this section, credit the account of a customer for incomplete calls, unanswered calls, wrong numbers, or poor quality of transmission.

     2.  The requirements of this section apply only to:

     (a) IntraLATA toll calls; and

     (b) InterLATA toll calls for which the utility is directed to allow a credit by the carrier or its agent.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4145  Resolution of dispute regarding bill, charge or service. (NRS 703.025, 704.210)

     1.  If a customer disputes any bill, charge or service, the utility shall promptly investigate the matter and report its determination to the customer. If the customer so requests, the report must be made in writing. Whether or not a written report is requested, upon an adverse determination by the utility, it shall inform the customer of the right to file a complaint with the Division.

     2.  If the customer is not satisfied with the utility’s determination, he or she may file a complaint with the Division.

     3.  Except as otherwise provided in NAC 704.4151, if the customer files a complaint with the Division, the customer may be required by the utility to pay any disputed amount to the utility pending resolution of the complaint unless the utility agrees to waive the requirement. If such a payment is made, the utility shall refund any money found by the Commission to have been charged improperly.

     4.  A summary of the provisions of this section must be:

     (a) Printed on the front or back of each bill or notice of termination issued by a utility; or

     (b) Set forth in a section of each telephone directory issued by a utility. If this method is used, a reference to that section of the directory must be included on the front or back of each bill or notice of termination issued by the utility.

Ê The summary must include the mailing address, telephone number and toll-free telephone number of the Division.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R059-02, 2-17-2005)

      NAC 704.4151  Furnishing local service to customer who fails to pay disputed toll charges and files complaint; action upon resolution of complaint. (NRS 703.025, 704.210)

     1.  If a customer fails to pay disputed toll charges and files a complaint with the Division, the utility shall continue to furnish local service to the customer pending resolution of the dispute if the customer brings current all outstanding charges for local service. If toll restriction is available from the utility, the customer shall pay the rates and charges for toll restriction set forth in the tariff of the utility.

     2.  If the Commission resolves the complaint in favor of the customer, the utility shall reimburse the customer for:

     (a) Any disputed charges which the customer paid to the utility and which are resolved by the complaint;

     (b) Any rates and charges for toll restriction which the customer paid to the utility and which are related to the complaint; and

     (c) Any other amounts which the customer paid to the utility and which are related to the complaint.

     3.  If the Commission resolves the complaint against the customer, the customer shall pay toll charges that the customer owes to the utility, and the utility shall transfer toll charges to the appropriate telecommunication provider that provided toll service to the customer.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A 10-25-95; A by Pub. Utilities Comm’n by R059-02, 2-17-2005; R136-07, 1-30-2008)

      NAC 704.4155  Continuation of certain services upon temporary suspension of basic service because of nonpayment. (NRS 703.025, 704.210)  If a utility temporarily suspends basic service to a customer because of nonpayment, the utility shall, if it has the technology, continue to provide the customer with access to:

     1.  Emergency 911 service;

     2.  At least one telephone number for reporting trouble to the utility; and

     3.  At least one telephone number for the business office of the utility.

     (Added to NAC by Pub. Utilities Comm’n by R059-02, eff. 2-17-2005)

      NAC 704.416  Grounds for termination of service. (NRS 703.025, 704.210)  Except as otherwise provided in NAC 704.395 to 704.421, inclusive, a utility may terminate service to a customer without the consent of the customer, after giving any notice required by NAC 704.4165 and 704.417, for any of the following reasons:

     1.  Failure of the customer or any cosigner of the customer to pay a delinquent bill or any installment due on such a bill, including a bill for service received:

     (a) At a previous location; or

     (b) If the customer receives service at more than one location, at any such location.

     2.  Failure of the customer or any guarantor of the customer to pay any required deposit or connection fee or any installment due on either.

     3.  Failure of the customer to pay toll charges appearing on the bill, except that if the customer files a complaint with the Division to dispute the toll charges and complies with the provisions of NAC 704.4151, the utility may not terminate local service under this subsection unless the Commission resolves the complaint against the customer.

     4.  Violation by the customer of any rule of the utility set forth in its tariff. As used in this subsection, “rule” means a provision that establishes the application of rates, charges and standards for service and is not included in a rate schedule.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R059-02, 2-17-2005)

      NAC 704.4165  Notice of intended termination of service. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in NAC 704.418, a utility that intends to terminate service to a customer shall give written notice of the termination to the customer and make a reasonable effort to notify any:

     (a) Cosigner or guarantor of the customer; and

     (b) Third person designated by the customer pursuant to NAC 704.4175.

     2.  Except as otherwise provided in subsection 1, the notice must be served upon each person described in that subsection at least 5 business days before the date of the termination by personal delivery or by first-class mail addressed to his or her last known mailing address. Service of the notice shall be deemed complete as of the date of mailing or personal delivery.

     3.  The notice must clearly set forth:

     (a) The account number and telephone number of the customer affected;

     (b) The date on or after which the termination will occur;

     (c) The reason for the termination;

     (d) If the termination is for nonpayment of a delinquent bill or any installment due on such a bill, the total amount of money owed to the utility by the customer and the minimum payment required to avoid termination;

     (e) The telephone number at which the customer may obtain information from the utility concerning the customer’s bill or service;

     (f) A statement that the customer may contest the termination before the Division as provided in NAC 704.4205; and

     (g) If required by that section, the statement required by NAC 704.4205.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R059-02, 2-17-2005)

      NAC 704.417  Special notice of proposed termination when dangerous to health. (NRS 703.025, 704.210)  Unless extraordinary circumstances exist, a utility which receives notice that a termination of service would be especially dangerous to the health of the customer or other person who is a permanent resident of the premises affected shall make a reasonable effort to give notice of the termination as provided in this section. This notice is in addition to the notice required by NAC 704.4165 and must be given in person or by telephone, at least 48 hours before the scheduled time of the termination, by a representative of the utility to the customer or to some adult resident of the location affected. The representative shall explain to the customer or resident each item of information required by subsection 3 of NAC 704.4165 to be included in a notice given pursuant to that section.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4175  Designation and notification of third persons. (NRS 703.025, 704.210)

     1.  A customer may, at any time, designate in writing a third person to receive notice of any pending termination of the service of the customer. A person so designated is not, because of that designation or because of any notice given pursuant to this section, liable for any obligation of the customer.

     2.  If a utility intends to terminate the service of the customer and notice of the termination is required pursuant to NAC 704.4165 or 704.417, the utility shall make a reasonable effort to notify any person designated pursuant to subsection 1. A utility that complies with the provisions of this subsection does not incur any liability because of a failure to give actual notice to the designated person.

     3.  Each customer who applies for service must be given notice by the utility of the provisions of this section if the customer gives notice to the utility that he or she is elderly or a person with a disability.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.418  Refusal of service and termination without notice. (NRS 703.025, 704.210)  A utility may refuse service, refuse to resume service or terminate service without giving the notice otherwise required by NAC 704.4165:

     1.  If an unsafe or hazardous condition related to the service exists on the premises of the customer;

     2.  If the use of the service on the premises of the customer is determined by the utility to be detrimental or damaging to the facilities or services of the utility or its customers;

     3.  Upon the order of any court of competent jurisdiction or the Commission;

     4.  Upon a written determination by a magistrate that there is probable cause to believe that the service:

     (a) Is prohibited by law; or

     (b) Is used or to be used, directly or indirectly, to violate or assist in a violation of the law;

     5.  If the utility determines, based upon the acts of the customer or the condition of the customer’s premises, that the customer has defrauded, is defrauding, or intends to defraud the utility, unless the conditions constituting the fraud have been corrected;

     6.  If an event in the nature of force majeure or vis major occurs that requires the termination of the service; or

     7.  If the location at which the service is provided has been abandoned.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4185  Postponement of termination when dangerous to health. (NRS 703.025, 704.210)

     1.  Unless extraordinary circumstances exist, if the local service of a customer is being terminated, the utility shall postpone the termination for 30 days after it receives both of the following:

     (a) A statement from a licensed physician, public health official or advanced practice registered nurse certifying that the termination would be especially dangerous to the health of the customer or other person who is a permanent resident of the premises affected. The licensed physician, public health official or advanced practice registered nurse may consider the feebleness, advanced age, physical disability, mental incapacity, serious illness, or other infirmity of the person affected. Except as otherwise provided in this paragraph, the statement must be in writing and include:

          (1) The address where service is provided;

          (2) The name of the person whose health would be especially endangered;

          (3) A clear description of the nature of the emergency; and

          (4) The name, title, and signature of the licensed physician, public health official or advanced practice registered nurse making the statement.

Ê The statement may be made by telephone if a written statement is sent for confirmation to the utility within 5 days after the oral statement is made.

     (b) A statement signed by the customer that he or she is presently unable to pay the bill or installment. Before the period of postponement expires, the customer must arrange with the utility to pay the bill or installment.

     2.  The postponement may be extended once for an additional 30 days if the utility receives a renewed medical certificate before the expiration of the original period of postponement.

     3.  The utility shall allow an installment period of up to 90 days for the customer to pay his or her bills. The utility may impose toll restriction upon the customer, for which the customer shall pay the rates and charges set forth in the tariff of the utility.

     4.  If the utility again intends to terminate service after a customer has obtained a postponement pursuant to subsection 1, the utility shall give written notice of its intended action:

     (a) To the Division; and

     (b) To the customer and any cosigner or guarantor of the customer in the manner provided by NAC 704.4165 and 704.417.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R061-17, 12-19-2017)

      NAC 704.419  Postponement of termination upon agreement to pay delinquent bill. (NRS 703.025, 704.210)

     1.  If the service of a customer is being terminated for nonpayment of a delinquent bill or any installment due on such a bill, the utility may postpone the termination, regardless of whether the customer is qualified to make deferred payments pursuant to NAC 704.413, if the utility determines that the customer is able to pay the amount owed and the customer signs a written agreement to make payment.

     2.  In determining whether a customer is able to pay the amount owed, the utility shall consider:

     (a) The amount owed;

     (b) The length of time the bill or installment is past due;

     (c) The date the account was established;

     (d) The history of payment maintained by the customer with the utility;

     (e) The credit history of the customer;

     (f) The period for payment;

     (g) Any commitment of money made on behalf of the customer by a governmental agency or an organization that assists persons unable to pay their bills, whether or not the money has actually been disbursed;

     (h) Whether the customer is elderly or a person with a disability;

     (i) Any other extraordinary circumstances of the case; and

     (j) Any information presented to the utility by the customer.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4195  Restrictions on termination: Certain delinquent bills; weekends and holidays. (NRS 703.025, 704.210)  A utility may not terminate:

     1.  The service of a customer because of his or her failure to pay a delinquent bill for another class of service.

     2.  The service of a customer:

     (a) On a weekend, a holiday, or on the day before a weekend or a holiday, unless:

          (1) Extraordinary circumstances exist; or

          (2) The operations of the utility allow it to reestablish service immediately in an emergency.

     (b) Because of a delinquent bill incurred by a previous occupant of the location, unless the customer has signed a written agreement to assume liability for the previous service.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.4205  Contesting propriety of termination. (NRS 703.025, 704.210)

     1.  A customer whose service is terminated or is scheduled to be terminated by a utility may contact the Division to contest the propriety of the termination.

     2.  A statement of the provisions of subsection 1 must be set forth:

     (a) In any notice of termination issued pursuant to NAC 704.4165; or

     (b) In a section of each telephone directory issued by a utility. If this method is used, a reference to that section of the directory must be included in the notice of termination.

     3.  The statement required by subsection 2 must be accompanied by:

     (a) The mailing address and telephone number of the office of the Division nearest the customer;

     (b) The statewide toll-free telephone number of the Division;

     (c) If a bill is in dispute, a statement that the customer may be required by the utility to pay any disputed amount to the utility pending resolution of the appeal, subject to a refund if the appeal is successful;

     (d) A statement that special arrangements for the payment of any bill may be made if the customer is unable to pay immediately the full amount of the bill; and

     (e) A statement that a fee for reconnection or a deposit, or both, may be collected if service is terminated and subsequently restored.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89)

      NAC 704.421  Resumption of service. (NRS 703.025, 704.210)

     1.  A utility shall resume service to a customer:

     (a) If he or she has complied with the requirements of the utility set forth in its tariff;

     (b) Upon the order of any court of competent jurisdiction or the Commission; or

     (c) Immediately upon a determination that failure to resume service would be especially dangerous to the health of the customer or any person who is a permanent resident of the premises where service is being provided.

     2.  If a utility temporarily suspends service to a customer because of nonpayment and the customer or another person or entity on behalf of the customer subsequently pays the utility in an amount that is sufficient to resume service, the utility shall resume service to the customer:

     (a) Within 24 hours after the time when the payment is received by the utility, if the payment is received by the utility on a day other than a Friday, Saturday, Sunday or legal holiday; or

     (b) By the end of the next business day, if the payment is received by the utility on a Friday, Saturday, Sunday or legal holiday.

     3.  A utility may charge a fee, as set forth in its tariff, to resume service to a customer.

     (Added to NAC by Pub. Service Comm’n, eff. 1-5-89; A by Pub. Utilities Comm’n by R059-02, 2-17-2005)

REGULATIONS CONCERNING CERTAIN TELECOMMUNICATION SERVICES

Interstate Pay-Per-Call Service

      NAC 704.423  Adoption by reference of standards of Federal Communications Commission. (NRS 703.025, 704.210, 704.215)

     1.  The Commission hereby adopts by reference:

     (a) The interstate pay-per-call standards of the Federal Communications Commission, 47 C.F.R. §§ 64.1501 to 64.1515, inclusive, and all definitions applicable to those sections; and

     (b) Any amendments made to those standards and definitions by the Federal Communications Commission.

     2.  The provisions of 47 C.F.R. §§ 64.1501 to 64.1515, inclusive, may be purchased by mail from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://www.bookstore.gpo.gov, for the price of $40. Those provisions are also available, free of charge, from the Government Printing Office at the Internet address http://www.gpoaccess.gov/cfr/index.html.

     (Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

Intrastate Long-Distance Service

      NAC 704.424  Resale of service. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsection 2 or as otherwise ordered by the Commission, no telephone company which provides a customer with intrastate long-distance telephone service may prohibit the customer from reselling or sharing that service, but the company may require the customer to subscribe to sufficient lines to avoid any blockages within the company’s system which might adversely affect any of its other customers.

     2.  The provisions of this section do not apply to a competitive supplier.

     (Added to NAC by Pub. Service Comm’n, eff. 8-26-83; A 12-19-89; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

Basic Network Service and Business Line Service

      NAC 704.4244  Applicability. (NRS 703.025, 704.210)  The provisions of NAC 704.4244 to 704.42478, inclusive, do not apply to a competitive supplier.

     (Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008; A by R040-08, 9-18-2008)

      NAC 704.4247  “Promotional service” defined. (NRS 703.025, 704.210)  As used in NAC 704.4244 to 704.42478, inclusive, “promotional service” means a service that is offered by a small-scale provider of last resort to its customers:

     1.  For a limited time only; or

     2.  At a specific price for a limited time only.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.42472  Limitations on types of promotional service that may be offered. (NRS 703.025, 704.210)  A service may only be offered as a promotional service if it is of a type whose rates, terms, and conditions are subject to the approval of the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95)

      NAC 704.42474  Restrictions on offers of promotional service. (NRS 703.025, 704.210)  A promotional service may be offered only to a person who is not a customer of the service and must be offered uniformly to all similarly situated persons within the area in which the provider’s rates are averaged. Unless otherwise approved by the Commission, a promotional service may be offered for not more than a 3-month period and may only be offered to the same person or persons once in any 12-month period.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95)

      NAC 704.42476  Written notice of certain offers of promotional service. (NRS 703.025, 704.210)  A small-scale provider of last resort may offer and provide a promotional service whose rates, charges, terms and conditions are not reflected in a filed tariff, upon 1-day written notice to the Commission. The notice must give a general description of the service and indicate the rate or charge.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.42478  Application for inclusion of promotional service as tariffed service. (NRS 703.025, 704.210)  After offering a promotional service, a small-scale provider of last resort may apply to the Commission for inclusion of the promotional service as a tariffed service. The application to the Commission must contain rate schedules and tariff sheets that comply with the requirements of NAC 703.375 to 703.410, inclusive.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

Change of Preferred Long Distance Carrier

      NAC 704.426  Slamming rules and remedies of Federal Communications Commission: Adoption by reference; administration and enforcement. (NRS 703.025, 704.210, 704.215)

     1.  For the purposes of this section, the Commission hereby adopts by reference:

     (a) The slamming rules and remedies of the Federal Communications Commission, 47 C.F.R. §§ 64.1100 to 64.1195, inclusive, and all definitions applicable to those sections; and

     (b) Any amendments made to those rules and remedies and definitions by the Federal Communications Commission.

     2.  The provisions of 47 C.F.R. §§ 64.1100 to 64.1195, inclusive, may be purchased by mail from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://www.bookstore.gpo.gov, for the price of $40. Those provisions are also available, free of charge, from the Government Printing Office at the Internet address http://www.gpoaccess.gov/cfr/index.html.

     3.  Pursuant to the authority granted to state commissions by 47 C.F.R. § 64.1110, the Commission hereby declares its intention to administer and enforce the slamming rules and remedies of the Federal Communications Commission with regard to telecommunication providers that are subject to the jurisdiction of the Commission.

     4.  A telecommunication provider that is subject to the jurisdiction of the Commission shall not violate the slamming rules and remedies of the Federal Communications Commission.

     5.  Upon the request of a subscriber, a telecommunication provider that is subject to the jurisdiction of the Commission shall change the preferred long distance carrier of the subscriber in accordance with the procedures established by the slamming rules and remedies of the Federal Communications Commission.

     (Added to NAC by Pub. Utilities Comm’n by R059-02, eff. 2-17-2005; A by R136-07, 1-30-2008)

ELECTRICAL SAFETY CODE

      NAC 704.450  Adoption by reference of National Electrical Safety Code. (NRS 703.025, 704.210, 704.215)

     1.  The Commission hereby adopts by reference the National Electrical Safety Code in the form most recently approved by the American National Standards Institute and approved and published by the Institute of Electrical and Electronics Engineers, Inc., unless the Commission gives notice that the most recent publication is not suitable for this State pursuant to subsection 3.

     2.  The National Electrical Safety Code is available for the price of $151 per copy for members of the Institute of Electrical and Electronics Engineers, Inc., and $185 per copy for nonmembers from Techstreet, 3916 Ranchero Drive, Ann Arbor, Michigan 48108, or at the Internet address http://www.techstreet.com/ieee.

     3.  The Commission will review each revision of the publication adopted by reference pursuant to subsection 1 to determine its suitability for this State. If the Commission determines that the revision is not suitable for this State, it will hold a public hearing to review its determination and give notice of that hearing within 6 months after the date of the publication of the revision. If, after the hearing, the Commission does not revise its determination, the Commission will give notice that the revision is not suitable for this State within 30 days after the hearing. If the Commission does not give such notice, the revision becomes part of the publication adopted by reference pursuant to subsection 1.

     [Pub. Service Commission, Gen. Order 25 § 2.0, eff. 5-5-82]—(NAC A by Pub. Utilities Comm’n by R127-99, 11-12-99; R011-15, 10-27-2015)

INTRASTATE TRANSPORTATION OF GAS

      NAC 704.455  Applicability. (NRS 703.025, 704.210)  The provisions of NAC 704.455 to 704.465 inclusive, apply to all persons under the jurisdiction of the Commission who are engaged in the intrastate transportation of gas, including liquefied petroleum gas.

     [Pub. Service Comm’n, Gen. Order 17 § 1.2, eff. 12-28-81]—(NAC A 1-31-91; A by Pub. Utilities Comm’n by R047-02, 10-24-2002)

      NAC 704.460  Adoption by reference of certain federal regulations. (NRS 703.025, 704.210)

     1.  The Commission hereby adopts by reference the regulations contained in 49 C.F.R. Parts 191, 192, 193 and 199, in the form most recently published by the United States Government Printing Office, unless the Commission gives notice that the most recent publication is not suitable for this State pursuant to subsection 2. Copies of those parts are available at no charge from the United States Government Printing Office at the Internet address http://www.gpoaccess.gov.

     2.  If any publication adopted by reference pursuant to subsection 1 is revised, the Commission may review the revision to ensure its suitability for this State. If the Commission determines that the revision is not suitable for this State, the Commission will hold a public hearing to review its determination within 6 months after the date of publication of the revision and give notice of that hearing. If, after the hearing, the Commission does not revise its determination, the Commission will give notice within 30 days after the hearing that the revision is not suitable for this State. If the Commission does not give such notice, the revision becomes part of the publication adopted by reference pursuant to subsection 1.

     [Pub. Service Comm’n, Gen. Order 17 § 2.0, eff. 12-28-81]—(NAC A 3-7-86; 12-15-86; 6-29-88; 12-19-89; 9-7-90; 10-6-93; 9-13-94; 5-23-96; A by Pub. Utilities Comm’n by R053-98, 6-26-98; R018-00, 4-3-2000; R083-02, 7-15-2002; R030-04, 5-25-2004; R085-05, 10-31-2005; R016-06, 6-1-2006; R095-10, 10-15-2010)

      NAC 704.461  Adoption by reference of certain standards of National Fire Protection Association. (NRS 703.025, 704.210)

     1.  The Commission hereby adopts by reference Standard No. 58, NFPA 58: Liquefied Petroleum Gas Code, and Standard No. 59, NFPA 59: Utility LP-Gas Plant Code, in the form most recently published by the National Fire Protection Association, unless the Commission gives notice that the most recent publication is not suitable for this State pursuant to subsection 3.

     2.  Copies of these standards are available from the National Fire Protection Association, 11 Tracy Drive, Avon, Massachusetts 02322, or at the Internet address http://catalog.nfpa.org. The cost of a copy of Standard No. 58 is $58.00, and the cost of a copy of Standard No. 59 is $44.50.

     3.  The Commission will review each revision of the publications adopted by reference pursuant to subsection 1 to determine its suitability for this State. If the Commission determines that the revision is not suitable for this State, it will hold a public hearing to review its determination and give notice of that hearing within 6 months after the date of the publication of the revision. If, after the hearing, the Commission does not revise its determination, the Commission will give notice that the revision is not suitable for this State within 30 days after the hearing. If the Commission does not give such notice, the revision becomes part of the publication adopted by reference pursuant to subsection 1.

     (Added to NAC by Pub. Service Comm’n, eff. 1-31-91; A 5-23-96; A by Pub. Utilities Comm’n by R053-98, 6-26-98; R011-15, 10-27-2015)

      NAC 704.465  Certain reports and notifications required to be made concurrently to United States Department of Transportation and Commission. (NRS 703.025, 704.210)  Any report or notification made to the United States Department of Transportation pursuant to the federal regulations adopted by reference in NAC 704.460 must be filed concurrently with the Commission.

     [Pub. Service Comm’n, Gen. Order 17 § 3.0, eff. 12-28-81]—(NAC A by Pub. Utilities Comm’n by R107-07, 12-4-2007; R084-10, 12-16-2010)

CURTAILMENT OF DISTRIBUTION OF NATURAL GAS

      NAC 704.471  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.471 to 704.511, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.473 to 704.493, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.473  “Boiler fuel” defined. (NRS 703.025, 704.210)  “Boiler fuel” means natural gas which is used as a fuel for the generation of steam or electric power other than by combustion turbines.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.477  “Capability of using an alternative fuel” defined. (NRS 703.025, 704.210)  “Capability of using an alternative fuel” means the capability of using an alternative fuel whether or not the facilities which are necessary for that use have been installed.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.479  “Commercial use” defined. (NRS 703.025, 704.210)  “Commercial use” means the use of natural gas by persons, institutions, and governmental entities, primarily for the sale of goods or the provision of services. The term does not include the manufacture of goods or the generation of electric power.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.481  “Correctional facility” defined. (NRS 703.025, 704.210)  “Correctional facility” means a facility used primarily to house, confine, or otherwise limit the activities of persons who have been assigned to the facility pursuant to a sentence of a court of law.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.483  “Firm requirement” defined. (NRS 703.025, 704.210)  “Firm requirement” means a customer’s requirement for natural gas where the gas is to be provided pursuant to a schedule or contract under which:

     1.  The utility is expressly obligated to deliver specific volumes of gas within a given period; and

     2.  The parties anticipate no interruption of service but the utility is permitted to interrupt the service in any situation where its ability to supply customers having a higher priority is threatened.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.487  “Hospital” defined. (NRS 703.025, 704.210)  “Hospital” means a facility primarily used for medical care of patients who remain at the facility, but the term does not include an outpatient clinic.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.489  “Industrial use” defined. (NRS 703.025, 704.210)  “Industrial use” means the use of natural gas by persons engaged primarily in a process which creates or changes raw or unfinished materials into another form or product or which generates electric power.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.491  “Interruptible requirement” defined. (NRS 703.025, 704.210)  “Interruptible requirement” means a customer’s requirement for natural gas where the gas is to be provided pursuant to a schedule or contract under which:

     1.  The utility is not expressly obligated to deliver specific volumes within a given period; and

     2.  The parties anticipate interruption of service and the utility is permitted to interrupt the service on short notice.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.493  “School” defined. (NRS 703.025, 704.210)  “School” means a facility used primarily for instruction of regularly enrolled students in attendance at the facility. The term does not include a facility used for both educational and noneducational activities unless the noneducational activities are incidental to the instruction.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.497  Purpose; applicability. (NRS 703.025, 704.210)

     1.  The purpose of NAC 704.471 to 704.511, inclusive, is to establish priorities and procedures for curtailment of the distribution of natural gas in Nevada.

     2.  NAC 704.471 to 704.511, inclusive, apply to all utilities which are under the jurisdiction of the Commission and which distribute natural gas in this State.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.499  Duty to deliver continuous supply and avoid shortages, interruptions. (NRS 703.025, 704.210)  Each utility shall:

     1.  Exercise reasonable diligence and care to obtain and deliver a continuous and sufficient supply of natural gas to its customers; and

     2.  To the extent possible, avoid any shortage or interruption in its delivery of natural gas.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.501  Priorities in curtailment of service. (NRS 703.025, 704.210)  During periods of reduced availability of natural gas, each utility shall supply natural gas to its customers (whether they are being served directly or indirectly) in the following order of priorities:

     1.  First priority (P-1) must be given, without relative priority among the classes, for use in:

     (a) Commercial establishments using less than 50 Mcf of natural gas on a peak day.

     (b) Hospitals, nursing homes, and convalescent homes, but not for the offices of practitioners of the healing arts.

     (c) Police and correctional facilities.

     (d) Residences.

     (e) Sanitary facilities which use natural gas for disposing of refuse or otherwise protecting the health of the community.

     (f) Schools.

     2.  Second priority (P-2) must be given for the following uses, with relative priority in the order listed:

     (a) Essential agricultural uses, certified by the United States Secretary of Agriculture pursuant to 15 U.S.C. § 3391 as the section existed on November 6, 1980 (P-2a).

     (b) Essential industrial process or uses as feedstock, certified by the United States Secretary of Energy pursuant to 15 U.S.C. § 3392 as the section existed on November 6, 1980 (P-2b).

     (c) Other uses (P-2c), without any relative priority among the subclasses:

          (1) Commercial uses involving 50 Mcf or more of natural gas on a peak day.

          (2) Uses, pursuant to firm requirements, of natural gas for protection of industrial plants and for industrial feedstocks and processes. The volumes of gas which may be supplied under this priority for protection of a customer’s plant are the minimum volumes required to prevent physical harm to the facilities in the plant, to prevent danger to the personnel, and to protect any material in the process of manufacture if the customer cannot carry out those purposes by the use of some alternative fuel other than propane or another gaseous fuel. This priority must not be given just to enable a customer to maintain production in his or her plant.

          (3) A utility’s injection of natural gas into storage to meet its reasonable requirements for later distribution to its customers (customer storage injection volumes).

     3.  Third priority (P-3) must be given for any industrial use which is not included in any other priority.

     4.  Fourth priority (P-4) must be given for any industrial use of natural gas as a boiler fuel upon a firm requirement if the volume of gas to be used is less than 3,000 Mcf per day but more than 1,500 Mcf per day and the customer has the capability of using an alternative fuel to fulfill the requirement.

     5.  Fifth priority (P-5) must be given for any industrial use of natural gas as a boiler fuel upon a firm requirement if the volume of gas to be used is 3,000 Mcf or more per day and the customer has the capability of using an alternative fuel to fulfill the requirement.

     6.  Sixth priority (P-6) must be given for any use, upon an interruptible requirement, of more than 300 Mcf per day but less than 1,500 Mcf per day of natural gas if the customer has the capability of using an alternative fuel to fulfill the requirement.

     7.  Seventh priority (P-7) must be given for a use, upon an interruptible requirement, of 1,500 Mcf or more per day but less than 3,000 Mcf per day of natural gas if the customer has the capability of using an alternative fuel to fulfill the requirement.

     8.  Eighth priority (P-8) must be given for a use, upon an interruptible requirement, of 3,000 Mcf or more per day but less than 10,000 Mcf per day of natural gas if the customer has the capability of using an alternative fuel to fulfill the requirement.

     9.  Ninth priority (P-9) must be given for a use, upon an interruptible requirement, of 10,000 Mcf or more per day of natural gas if the customer has the capability of using an alternative fuel to fulfill the requirement.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.503  Lower level of priority to be fully curtailed before higher level; partial curtailments. (NRS 703.025, 704.210)

     1.  Before a utility may curtail in full its supply of natural gas to a customer who is entitled to a particular level of priority, the utility must curtail in full its supply to all its customers in lower levels of priority.

     2.  Any partial curtailment of supply within a priority must be made in proportion to the stated daily requirements for natural gas of each customer entitled to that priority.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.507  Curtailment in emergencies. (NRS 703.025, 704.210)

     1.  If a utility determines that an emergency is threatened which would cause an immediate forced termination of service to a major portion of its customers, it may curtail service to any customer, regardless of his or her assigned priority. Any customer who does not comply with the curtailment is subject to termination of service by the utility.

     2.  During such an emergency the utility shall first make every practicable effort to curtail service to those customers having the capability of using an alternative fuel.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.509  Distribution of new supply made available by customer. (NRS 703.025, 704.210)  If a customer has made available to a utility a new supply of natural gas which would not otherwise be available to the utility, it shall distribute the new supply as follows:

     1.  On any day when the utility is having to curtail its distribution of natural gas to customers whose requirements are entitled to the first priority, the utility shall use the new supply to meet those requirements.

     2.  On any day when the utility is having to curtail its distribution to customers with firm requirements inferior to the first priority, the utility shall maintain the highest level of service to the customer who made available the new supply but only to the extent of the utility’s obligation for daily delivery to that customer, as set forth in the applicable agreement between the customer and the utility.

     3.  On any day when the utility has fulfilled its obligation for daily delivery to the customer who made the new supply available, any additional volumes of gas must be used to augment the utility’s base supply.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.511  Information to be furnished to suppliers and obtained from customers. (NRS 703.025, 704.210)  Each utility shall:

     1.  Provide its suppliers the information necessary to carry out NAC 704.471 to 704.511, inclusive; and

     2.  As a condition precedent to the delivery of natural gas to a customer, require from him or her the information that is necessary to determine the customer’s priority.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

NATURAL GAS SUPPLIED TO GENERATING, INDUSTRIAL AND LARGE COMMERCIAL CUSTOMERS

      NAC 704.516  Definitions. (NRS 703.025, 704.075, 704.210)  As used in NAC 704.516 to 704.528, inclusive, unless the context otherwise requires:

     1.  The words and terms defined in subsection 1 of NRS 704.075 have the meanings ascribed to them in that subsection.

     2.  “Schedule” means the tariff sheet that identifies the range of rates and charges, or the mechanisms pursuant to which such rates and charges may be determined, filed pursuant to NAC 704.518.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86; A by Pub. Utilities Comm’n by R053-97, 11-14-97)

      NAC 704.517  Applicability. (NRS 703.025, 704.075, 704.210)  NAC 704.516 to 704.528, inclusive, apply only to rates for natural gas transported for or sold to generating, industrial and large commercial customers.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86; A by Pub. Utilities Comm’n by R053-97, 11-14-97)

      NAC 704.518  Rates and charges: Schedule; contract for special services; customer subject to schedule or contract; establishment by utility; exemption from certain provisions. (NRS 703.025, 704.075, 704.210)

     1.  A utility which supplies natural gas may file with the Commission a schedule to be applied to generating, industrial and large commercial customers served by the utility. The schedule:

     (a) Must set forth the terms and conditions of service and the range of rates, or the mechanisms pursuant to which such rates may be determined; and

     (b) May include different rates for customers within the same class.

     2.  A utility may provide service to a generating, industrial or large commercial customer pursuant to a schedule filed pursuant to subsection 1 if the customer notifies the utility in writing in a manner acceptable to the utility that the customer wishes to be billed pursuant to the schedule and the customer has demonstrated to the utility that:

     (a) The customer is capable of using a fuel other than natural gas; or

     (b) A bona fide alternative to purchasing service from the utility is available to the customer.

     3.  If a utility which seeks to transport natural gas for or sell natural gas to a generating, industrial or large commercial customer:

     (a) Does not have a schedule approved by the Commission on file with the Commission pursuant to subsection 1;

     (b) Seeks to charge a rate that is outside of the limits established by the schedule of the utility approved for transporting natural gas for or selling natural gas to a generating, industrial or large customer; or

     (c) Seeks terms and conditions of service outside those set forth in the schedule of the utility approved for transporting natural gas for or selling natural gas to a generating, industrial or large commercial customer,

Ê the utility shall file with the Commission an application for the approval of a contract for special services between the utility and the generating, industrial or large commercial customer. A contract for special services must specify the method, terms, conditions and rates by which the services are to be rendered to the customer. A utility shall not provide service to a generating, industrial or large customer pursuant to a contract of special services until the contract is approved by the Commission.

     4.  A utility may provide service to a generating, industrial or large commercial customer pursuant to a contract for special services if the customer notifies the utility in writing in a manner acceptable to the utility that the customer wishes to be billed pursuant to such a contract and the customer has demonstrated to the utility that:

     (a) The customer is capable of using a fuel other than natural gas; or

     (b) A bona fide alternative to purchasing service from the utility is available to the customer.

     5.  The rates and charges under a schedule or a contract for special services filed pursuant to this section must be established by the utility which supplies natural gas after consultation with each affected customer. The utility shall consider the value to the customer of using natural gas as opposed to using an alternative fuel and the cost to the utility of providing the service.

     6.  Filings, pursuant to NAC 704.516 to 704.528, inclusive, are exempt from the provisions of NRS 704.100 and 704.110, except that any tariff, schedule or contract for special services that is filed is subject to the provisions of NRS 704.100 and 704.110 governing the time in which the Commission must take action on such filings.

     7.  As used in this section:

     (a) “Bona fide alternative” means an option available to a customer:

          (1) Which is economically and operationally feasible; and

          (2) For which the cost to the customer to bypass the system of the utility is less than the marginal cost needed for the utility to serve that customer.

     (b) “Contract for special services” means a contract which is filed by a utility in lieu of a schedule and which specifies the methods, terms, conditions and rates by which services are to be rendered to a generating, industrial or large commercial customer.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86; A by Pub. Utilities Comm’n by R053-97, 11-14-97; R047-02, 10-24-2002)

      NAC 704.519  Schedule of rates and charges: Effective date. (NRS 703.025, 704.075, 704.210)  A schedule becomes effective the date specified in the schedule except it may not take effect before it is filed with the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86)

      NAC 704.521  Schedule of rates and charges: Written justification. (NRS 703.025, 704.075, 704.210)  A schedule filed by a utility must include or be accompanied by a written justification for each rate and charge in the schedule.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86; A by Pub. Utilities Comm’n by R053-97, 11-14-97)

      NAC 704.522  Procedure for changing level of rate. (NRS 703.025, 704.075, 704.210)

     1.  The utility may change the level of a rate within an established range of rates pursuant to a schedule approved by the Commission for generating, industrial or large commercial customers by filing a memorandum with the Commission stating the new level of the rate, the name of the affected customer and the effective date of the change.

     2.  As used in this section, “memorandum” means a written notice from a utility to the Commission of any change to rates or any changes to a schedule approved by the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86; A by Pub. Utilities Comm’n by R053-97, 11-14-97)

      NAC 704.524  Notification of customers of change in rates and charges. (NRS 703.025, 704.075, 704.210)  The utility supplying natural gas shall notify each customer covered by the schedule of any change in the rates and charges at least 1 day before the effective date of the change.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86)

      NAC 704.526  Filing of list identifying schedule and affected customers; notice to customers. (NRS 703.025, 704.075, 704.210)

     1.  Before submitting a bill to a customer affected by a schedule, a utility shall file a list with the Commission identifying:

     (a) The customers covered by the schedule; and

     (b) The schedule applicable to each customer or group of customers.

     2.  The utility shall notify each customer of its inclusion on the list at least 1 day before it files the list with the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86)

      NAC 704.527  Filing copy of lists with Consumer’s Advocate. (NRS 703.025, 704.075, 704.210)  A copy of any schedule or list filed pursuant to NAC 704.518 or 704.526 must be filed with the Consumer’s Advocate on the same date the schedule or list is filed with the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86)

      NAC 704.528  Violations: Action by Commission. (NRS 703.025, 704.075, 704.210)  An investigation and public hearing to determine whether a utility has violated a provision of NAC 704.516 to 704.528, inclusive, may be ordered by the Commission, either upon its own motion or upon receipt of a complaint. If the Commission finds that any of the provisions of NAC 704.516 to 704.528, inclusive, have not been followed, it will:

     1.  Notify the utility that the schedule or list is no longer in effect because of its failure to follow the requirements of NAC 704.516 to 704.528, inclusive;

     2.  Require the utility to modify the schedule or list to comply with NAC 704.516 to 704.528, inclusive; or

     3.  Take any other appropriate action.

     (Added to NAC by Pub. Service Comm’n, eff. 12-15-86)

SYSTEMS FOR DISTRIBUTION OF LIQUEFIED PETROLEUM GAS

      NAC 704.531  Definitions. (NRS 703.025, 704.097, 704.210)  As used in NAC 704.531 to 704.537, inclusive, unless the context otherwise requires:

     1.  “Alternative method” means a method used by an operator to determine the margin rates in lieu of filing a general rate application pursuant to NRS 704.110.

     2.  “Captive customers” means customers who:

     (a) Purchase liquefied petroleum gas for consumption in this State from an operator who operates a system for the distribution of liquefied petroleum gas to 10 or more users at rates that are regulated by the Commission; and

     (b) Do not have an economically feasible and practical alternative for bypassing the system.

     3.  “Cost of service” means the costs incurred by an operator to own, maintain and operate the system and includes, without limitation, operating and maintenance expenses, depreciation expenses, operating and income taxes, debt service coverage and a return on invested capital to shareholders.

     4.  “Margin rates” means any fixed charges and any charges per sales unit assessed by an operator to recover the cost of service of an operator.

     5.  “Non-captive customers” means customers who purchase liquefied petroleum gas for consumption in this State at rates that are not regulated by the Commission.

     6.  “Operator” means a person who operates one or more systems under common ownership and control, with a combined capacity to serve 10 or more users in a contiguous area.

     7.  “Reporting period” means January 1 through December 31 of the year preceding the filing of an annual report.

     8.  “System” means a network of pipes, valves, regulators, meters, containers and their appurtenances, and other physical facilities used by an operator for the distribution of liquefied petroleum gas.

     (Added to NAC by Pub. Service Comm’n, eff. 1-31-91; A by Pub. Utilities Comm’n by R047-02, 10-24-2002; R031-19, 10-30-2019)

      NAC 704.5315  Applicability. (NRS 703.025, 704.097, 704.210)  The provisions of NAC 704.531 to 704.537, inclusive, apply to each public utility whose rates are subject to the jurisdiction of the Commission pursuant to NRS 704.097.

     (Added to NAC by Pub. Utilities Comm’n by R031-19, eff. 10-30-2019)

      NAC 704.532  Certificate of public convenience and necessity. (NRS 703.025, 704.210, 704.330)

     1.  An operator of a system must apply for and receive a certificate of public convenience and necessity from the Commission to operate the system.

     2.  In the case of a system in operation before January 31, 1991, the application for a certificate of public convenience and necessity must include:

     (a) The name, principal business address, and telephone number of the operator;

     (b) The location of the system;

     (c) The size and number of liquefied petroleum gas containers serving the system;

     (d) The number of services, both active and inactive, connected to each container or group of containers;

     (e) The year the system was installed and the date of each subsequent expansion or modification of the system, as closely as is known;

     (f) The current number of customers served by the system;

     (g) The name and address of the current supplier of bulk liquefied petroleum gas to the system;

     (h) The current price charged by the operator for liquefied petroleum gas service, including the price of liquefied petroleum gas delivered per unit volume and the amount of any other charges assessed to a customer;

     (i) The current price per unit volume paid by the operator for delivery of bulk liquefied petroleum gas to the system;

     (j) The quantity of liquefied petroleum gas currently on hand, as closely as is known;

     (k) A copy of any contract entered into with the supplier of bulk liquefied petroleum gas to the system;

     (l) A copy of the written explanation of the procedure described in NAC 704.535; and

     (m) A copy of the plans and procedures required by the regulations adopted pursuant to NAC 704.460.

     3.  A certificate of public convenience and necessity will not be issued for a system in operation before January 31, 1991, until the system has been inspected for compliance with the regulations adopted pursuant to NAC 704.460.

     4.  In the case of a system installed and placed into operation on or after January 31, 1991, an application for a certificate of public convenience and necessity must include:

     (a) The name, principal business address, and telephone number of the proposed operator;

     (b) The location of the proposed system;

     (c) The proposed size and number of liquefied petroleum gas containers serving the system;

     (d) The proposed number of services connected to each container or group of containers;

     (e) The name and address of the supplier who is expected to provide bulk liquefied petroleum gas to the system;

     (f) The anticipated price to be charged for liquefied petroleum gas service, including the price of liquefied petroleum gas delivered per unit volume and the amount of any other charges assessed to a customer;

     (g) The current available price range per unit volume for bulk liquefied petroleum gas;

     (h) A copy of any contract entered into with the intended supplier of bulk liquefied petroleum gas to the system;

     (i) The names and addresses of the suppliers of bulk liquefied petroleum gas serving the area where the proposed system is to be located;

     (j) A copy of the written explanation of the procedure described in NAC 704.535;

     (k) A copy of the plans and procedures required by the regulations adopted pursuant to NAC 704.460;

     (l) Copies of design and construction drawings for the system, including details for the installation of containers, distribution piping and meters, and a list of materials; and

     (m) The estimated cost of the proposed system.

     (Added to NAC by Pub. Service Comm’n, eff. 1-31-91)

      NAC 704.533  Duties of operator. (NRS 703.025, 704.210)

     1.  An operator shall:

     (a) Provide facilities and service which are reasonably adequate at just and reasonable rates.

     (b) Provide a method for receiving and acting on complaints by customers in accordance with NAC 704.537.

     (c) Design, install, construct, inspect, test, operate and maintain the system in accordance with the applicable regulations adopted pursuant to NAC 704.460 and 704.461.

     (d) File with the Commission an annual report for the reporting period in accordance with NAC 704.225 and 704.534.

     (e) Provide each of the customers of the system with a written explanation of the procedure for responding to an emergency in accordance with NAC 704.535.

     (f) Bill each of the customers of the system for the amount of liquefied petroleum gas delivered. The names of the customer and operator, the dates of the beginning and end of the billing period, the meter readings for the dates of the beginning and end of the billing period, the quantity consumed, the price of liquefied petroleum gas, any other authorized charge, and the total charge must be clearly stated on the bill. The format for the bill must make it possible for the customer to calculate easily the total amount due as shown on the bill.

     (g) Notify each of the customers of the system in writing of any change in the charge for owning, operating and maintaining the system or any change in the price of liquefied petroleum gas of 10 percent or more, not later than 5 days after the date on which the increase becomes effective.

     (h) Maintain for not less than 3 years records of all expenditures and collections for liquefied petroleum gas service.

     (i) Maintain records evidencing compliance with the requirements contained in the regulations adopted pursuant to NAC 704.460 for at least the period specified in those regulations or 3 years, whichever is longer.

     2.  The records required to be maintained pursuant to this section must be easily accessible for review by the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 1-31-91; A by Pub. Utilities Comm’n by R062-07, 10-31-2007)

      NAC 704.534  Annual report. (NRS 703.025, 703.191, 704.210)  In addition to the information required by NAC 704.225, an annual report must contain:

     1.  The name, principal business address and telephone number of the operator.

     2.  The name and title of the person making the report.

     3.  The location of the system.

     4.  The size and number of liquefied petroleum gas containers used in serving the system and the current number of customers, both active and inactive, served from each container or group of containers.

     5.  The highest, lowest and last price charged for liquefied petroleum gas service during the reporting period, including the price of liquefied petroleum gas delivered per unit volume and the amount of any other charges assessed to customers.

     6.  The highest, lowest and last price per unit volume paid by the operator for delivery of bulk liquefied petroleum gas to the system during the reporting period.

     7.  The name of the current supplier of bulk liquefied petroleum gas to the system.

     8.  A summary of all expenditures and collections for liquefied petroleum gas service during the reporting period, including a summary of expenses of operation and maintenance.

     9.  A copy of the written explanation of the procedure described in NAC 704.535.

     10.  The number of complaints related to safety, service and billing received during the reporting period and a brief explanation of the action that the operator took to respond to all such complaints.

     11.  A brief explanation of all action taken by the operator to correct any unsafe conditions which were identified during the reporting period.

     (Added to NAC by Pub. Service Comm’n, eff. 1-31-91; A by Pub. Utilities Comm’n by R062-07, 10-31-2007)

      NAC 704.535  Procedure for reporting emergencies. (NRS 703.025, 704.210)

     1.  An operator of a system shall furnish to each customer of the system a written explanation of the procedure to be used to report gas leaks and other related emergencies. The explanation must include:

     (a) A telephone number at which the operator can be contacted during regular working hours;

     (b) A telephone number for reporting emergencies during nonworking hours;

     (c) The telephone numbers of emergency response agencies, including, without limitation, the local police and fire departments; and

     (d) The following phone numbers of the Commission:

          (1) Clark County, (702) 486-6578.

          (2) Washoe County and Carson City, (775) 687-6004.

          (3) All other areas in Nevada, (800) 992-0900.

     2.  The procedure must be updated and reissued as often as is necessary, but at least once each calendar year.

     3.  As used in this section, “regular working hours” means Monday through Friday, 8 a.m. to 5 p.m., except holidays.

     (Added to NAC by Pub. Service Comm’n, eff. 1-31-91)

      NAC 704.536  Allowable charges; application to Commission to use alternative method; refund of overcharge. (NRS 703.025, 704.097, 704.210)

     1.  An operator shall not charge a price for liquefied petroleum gas which exceeds its average inventory price for the billing period.

     2.  In addition to the price charged for liquefied petroleum gas and except as otherwise provided in this subsection, an operator may assess just and reasonable margin rates. Except as otherwise provided by subsection 3, the margin rates which an operator is authorized to charge must be established in a general rate application proceeding before the Commission pursuant to NRS 704.110.

     3.  With the consent of the Commission, an operator may adopt and use an alternative method to determine its margin rates in lieu of filing a general rate application pursuant to NRS 704.110. An operator who elects to use an alternative method shall submit an application pursuant to NAC 704.5364 for determination by the Commission as to whether the margin rates charged by the operator during the immediately preceding fiscal year were just and reasonable.

     4.  A customer is entitled to a refund of any overcharge. The operator shall refund the amount of the overcharge plus interest as established by the Commission pursuant to NRS 704.655 from the date the overcharge was paid by the customer. The refund must, at the election of the operator, be made by cash payment or by a reduction in the next billing after the overcharge is discovered.

     5.  As used in this section, “average inventory price” means the total cost of liquefied petroleum gas available for sale, divided by the amount of liquefied petroleum gas available for sale as calculated for each billing period. For the purpose of this section, the liquefied petroleum gas available for sale is the amount on hand at the beginning of the operator’s billing period, plus the amount of liquefied petroleum gas purchased by the operator during that period.

     (Added to NAC by Pub. Service Comm’n, eff. 1-31-91; A by Pub. Utilities Comm’n by R047-02, 10-24-2002; R031-19, 10-30-2019)

      NAC 704.5364  Application for approval of margin rates by operator who uses alternative method: Annual submission to Commission; contents. (NRS 703.025, 704.097, 704.210)

     1.  An operator who pursuant to subsection 3 of NAC 704.536 obtains the consent of the Commission to use an alternative method shall submit to the Commission, on or before January 31 of each calendar year, an application for approval of the margin rates assessed by the operator during the operator’s immediately preceding fiscal year. An operator who submits an application to the Commission pursuant to this section may request that the application and information included with the application not be disclosed and be made confidential pursuant to NAC 703.5274.

     2.  An application submitted pursuant to this section must include, without limitation:

     (a) Monthly billing data for the immediately preceding fiscal year for the captive customers of the operator with service addresses in Nevada in the same customer class for which the operator is seeking to use an alternative method;

     (b) Monthly billing data for the immediately preceding fiscal year for non-captive customers of the operator with service addresses in Nevada that have liquefied petroleum gas tanks with a combined nominal capacity of not less than 250 gallons and not more than 3,000 gallons and who are in the same customer class for which the operator is seeking to use an alternative method; and

     (c) Such information as is necessary to demonstrate that the margin rates assessed by the operator were just and reasonable, which may include, without limitation, information which justifies disparities in the margin rates, if any.

     (Added to NAC by Pub. Utilities Comm’n by R031-19, eff. 10-30-2019)

      NAC 704.5366  Application for approval of margin rates by operator who uses alternative method: Analysis, determinations and recommendations of Regulatory Operations Staff of Commission; response or request for hearing by operator or interested person; hearing; written order by Commission; actions by operator if margin rates not just and reasonable. (NRS 703.025, 704.097, 704.210)

     1.  Upon receipt of an application submitted to the Commission pursuant to NAC 704.5364, the Regulatory Operations Staff of the Commission shall analyze the documentation and information provided by the operator to determine whether the margin rates assessed by the operator during the operator’s immediately preceding fiscal year were just and reasonable.

     2.  Following the analysis conducted pursuant to subsection 1 and not later than 90 days after the operator submitted the application to the Commission pursuant to NAC 704.5364, the Regulatory Operations Staff shall file with the Commission and serve on the parties a memorandum setting forth the determinations and recommendations of the Regulatory Operations Staff with respect to the application and recommending any other action by the Commission that the Regulatory Operations Staff may deem reasonable under the circumstances. The memorandum of the Regulatory Operations Staff must include documentation to support the recommendations contained therein, including, without limitation, an explanation of the analysis performed and any other information determined by the Regulatory Operations Staff to be relevant to the determinations and recommendations of the Regulatory Operations Staff. Information and documentation included in or with the memorandum filed with the Commission pursuant to this subsection may be made confidential in accordance with NAC 703.5274.

     3.  Not later than 10 business days after the Regulatory Operations Staff files with the Commission the memorandum required by subsection 2, the operator or any interested person may file with the Commission a response to the memorandum or request a hearing on the application submitted pursuant to NAC 704.5364, or both. Upon the request of the operator or the Regulatory Operations Staff, the Commission will hold a hearing on the application. If no request for a hearing is received by the Commission, the Commission will dispense with the hearing and take action upon the application, unless the Commission finds that a hearing is necessary or otherwise required by statute.

     4.  Not later than 60 days after the Regulatory Operations Staff files with the Commission the memorandum required by subsection 2, the Commission will issue a written order setting the application for hearing pursuant to subsection 3 or a written order approving the application and finding that the margin rates assessed by the operator during the immediately preceding year were just and reasonable in accordance with the requirements of subsection 1. At a hearing, the operator has the burden of proving that its margin rates were just and reasonable.

     5.  If the Commission determines that the margin rates assessed by the operator during the operator’s immediately preceding fiscal year were not just and reasonable, the Commission may order the operator to:

     (a) File a general rate application pursuant to NRS 704.110 within the time frame set forth by the Commission; or

     (b) Make changes to the alternative method within the time frame set forth by the Commission.

     6.  If an operator is ordered by the Commission to make changes to the alternative method pursuant to paragraph (b) of subsection 5, the operator may elect to make such changes or may instead file a general rate application pursuant to NRS 704.110.

     (Added to NAC by Pub. Utilities Comm’n by R031-19, eff. 10-30-2019)

      NAC 704.537  Complaints and inquiries. (NRS 703.025, 704.210)  An operator of a system shall advise customers of the system that complaints or inquiries concerning rates, billing, safety, and the provision of liquefied petroleum gas service generally should be directed to the operator. The operator shall establish a reasonable procedure for responding to these complaints and inquiries. The operator shall advise any customer who complains or inquires that he or she may bring the matter before the Division of Consumer Complaint Resolution of the Commission if the complaint cannot be resolved in a reasonable manner.

     (Added to NAC by Pub. Service Comm’n, eff. 1-31-91)

WATER SERVICE AND SEWAGE SERVICE

General Provisions

      NAC 704.561  Adoption by reference of Uniform System of Accounts for certain water and wastewater utilities. (NRS 703.025, 704.210)

     1.  The Commission hereby adopts by reference the Uniform System of Accounts for:

     (a) Class A Water Utilities, 1996 edition, which is available for the price of $30.00.

     (b) Class B Water Utilities, 1996 edition, which is available for the price of $24.00.

     (c) Class C Water Utilities, 1996 edition, which is available for the price of $18.00.

     (d) Class A Wastewater Utilities, 1996 edition, which is available for the price of $31.20.

     (e) Class B Wastewater Utilities, 1996 edition, which is available for the price of $25.20.

     (f) Class C Wastewater Utilities, 1996 edition, which is available for the price of $19.20.

Ê A copy of the publications may be obtained from the National Association of Regulatory Utility Commissioners, 1101 Vermont Avenue, N.W., Suite 200, Washington, D.C. 20005, or at the Internet address http://naruc.org/Store.

     2.  The Commission will review each revision of the publications adopted by reference pursuant to this section to ensure its suitability for the State. If the Commission determines that the revision is not suitable for this State, it will hold a public hearing to review its determination and give notice of that hearing within 6 months after the date of the publication of the revision. If, after the hearing, the Commission does not revise its determination, the Commission will give notice that the revision is not suitable for this State within 30 days after the hearing. If the Commission does not give such notice, the revision becomes part of the publication adopted by reference pursuant to this section.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

Resource Planning

      NAC 704.565  Definitions. (NRS 703.025, 704.210, 704.661)  As used in NAC 704.565 to 704.5688, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.5651 to 704.5658, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5651  “Action plan” defined. (NRS 703.025, 704.210, 704.661)  “Action plan” means a detailed specification of the actions that a utility intends to take to meet its water demand, supply and wastewater treatment requirements during the 3 years immediately following the year in which its resource plan is filed with the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5652  “Conservation plan” defined. (NRS 703.025, 704.210, 704.661)  “Conservation plan” means the plan developed by a utility for water conservation for the term of a resource plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5653  “Funding plan” defined. (NRS 703.025, 704.210, 704.661)  “Funding plan” means the plan developed by a utility that demonstrates the financial impact of an action plan on the utility and its customers.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5654  “Resource plan” defined. (NRS 703.025, 704.210, 704.661)  “Resource plan” means the plan developed by a utility for the provision of water or services for the disposal of the sewage of its customers for a period of 20 years immediately following the year in which the resource plan is filed with the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5655  “Utility” defined. (NRS 703.025, 704.210, 704.661)  “Utility” means a public utility that is required to submit a resource plan pursuant to NRS 704.661.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5656  “Wastewater treatment” defined. (NRS 703.025, 704.210, 704.661)  “Wastewater treatment” means any service for the disposal of sewage. The term includes, without limitation, the collection of sewage, disposal of effluent and the reclamation of water.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5657  “Water supply and wastewater treatment plan” defined. (NRS 703.025, 704.210, 704.661)  “Water supply and wastewater treatment plan” means the plan developed by a utility to meet its forecasted demand for water and requirements for wastewater treatment during the term of a resource plan. The term includes a wastewater treatment plan submitted by a utility that provides only services for the disposal of sewage.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5658  “Water year” defined. (NRS 703.025, 704.210, 704.661)  “Water year” means the amount of precipitation recorded on an annual basis by an entity in the region where the utility is located.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.566  Provision of overview of resource plan to certain entities before filing. (NRS 703.025, 704.210, 704.661)  A utility must, not later than 4 months before the date on which the utility intends to file its resource plan with the Commission, meet with the Bureau of Consumer Protection in the Office of the Attorney General and the Regulatory Operations Staff of the Commission and provide an overview of the utility’s resource plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5661  Resource plan: Summary. (NRS 703.025, 704.210, 704.661)  The resource plan of a utility must be accompanied by a summary that is suitable for distribution to the public. Any tables, graphs or maps used in the summary must be easily interpretable by the public. The summary must include, without limitation:

     1.  A brief introduction that describes the utility, its facilities and the purpose and duration of the resource plan;

     2.  A statement that identifies the issues relating to the supply of water and services for the disposal of sewage and the utility’s strategy for addressing those issues;

     3.  A description of the criteria used by the utility to develop the resource plan, including, without limitation, a summary of each forecast prepared by the utility pursuant to NAC 704.5667;

     4.  A statement that identifies the utility’s current and projected requirements during the term of the resource plan for each of the following:

     (a) Water supply;

     (b) Water rights;

     (c) Storage;

     (d) Transmission and distribution system;

     (e) Fire flows and fire hydrants;

     (f) Wastewater treatment; and

     (g) Water conservation; and

     5.  The methods that the utility proposes to use to fund the costs related to the resource plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5662  Resource plan: General requirements. (NRS 703.025, 704.210, 704.661)  The resource plan of a utility must include, without limitation:

     1.  The current and historical ownership and organization of the utility;

     2.  The name and qualifications of each person who participated in the development of the resource plan;

     3.  A description of the manner in which the information in the resource plan is organized and a definition of each specialized term, acronym or abbreviation used in the resource plan;

     4.  A description of the utility’s service area, including, without limitation, the number of customers in each class of service within the service area;

     5.  A statement identifying the issues relating to the supply of water and services for the disposal of sewage;

     6.  The objectives of the resource plan; and

     7.  A map that indicates the geographic areas included in the resource plan. Each map must indicate the portion of the service area of the utility indicated on the map:

     (a) The service area of the utility included in the resource plan;

     (b) The locations of the utility’s facilities;

     (c) The location of all water supplies that are owned by the utility or under contract to the utility;

     (d) The interconnections between the utility’s system and the systems of other utilities and suppliers of water;

     (e) The utility’s facilities for water transmission; and

     (f) The location of each site for:

          (1) The collection of sewage;

          (2) The treatment of wastewater;

          (3) The disposal of effluent;

          (4) The reclamation of water; and

          (5) Any other type of treatment of wastewater that is under contract to the utility.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5663  Resource plan: Identification of inapplicable regulatory provisions. (NRS 703.025, 704.210, 704.661)  If a utility believes that any provision of NAC 704.565 to 704.5688, inclusive, is not applicable to the utility, it must identify the provision in its resource plan and demonstrate why the provision is not applicable to the utility.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5664  Resource plan: Written testimony. (NRS 703.025, 704.210, 704.661)  The resource plan of a utility must include written testimony in support of the resource plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5665  Resource plan: Integrated analysis. (NRS 703.025, 704.210, 704.661)

     1.  The resource plan of a utility must include and provide an integrated analysis of the utility’s:

     (a) Conservation plan;

     (b) Water supply and wastewater treatment plan;

     (c) Funding plan; and

     (d) Action plan.

     2.  The analysis must establish priorities among the utility’s options for water conservation, water supply, wastewater treatment and funding to enable the Commission to determine the extent to which the utility’s action plan balances the objectives of minimizing cost, mitigating risk and maximizing reliability of service over the term of the action plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5666  Resource plan: Technical appendix. (NRS 703.025, 704.210, 704.661)

     1.  The resource plan of a utility must include a technical appendix. The appendix must be prepared in sufficient detail to enable a technically proficient person to:

     (a) Understand how the resource plan, including, without limitation, the forecasts required pursuant to NAC 704.5667, was prepared;

     (b) Verify the adequacy and accuracy of the data used to develop the resource plan; and

     (c) Evaluate the validity of the assumptions and methods used to develop the resource plan.

     2.  The appendix must include, without limitation:

     (a) A list of the major assumptions used to develop the resource plan;

     (b) A description of the forecasting methods used to develop the resource plan;

     (c) A description of any computer software used to develop the resource plan;

     (d) Citations to the sources of all significant information used to develop the resource plan;

     (e) A description of each model and formula used, including documentation to the extent consistent with any proprietary restrictions imposed upon the utility by a supplier of a model;

     (f) Descriptions of all data inputs to the models used to develop the resource plan and an explanation of any modifications made to the data;

     (g) The final results derived from the models used to develop the resource plan; and

     (h) Projections of the availability and cost of water rights for the term of the resource plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5667  Resource plan: Forecasts; inconsistent water sources; changes in methodology of forecasting. (NRS 703.025, 704.210, 704.661)

     1.  The resource plan of a utility must include forecasts for the term of the resource plan of the utility’s:

     (a) Peak demand in summer and winter for water flows;

     (b) Peak demand in summer and winter for wastewater flows;

     (c) Annual water consumption;

     (d) Annual wastewater flows; and

     (e) Annual losses of water from the system.

     2.  The forecasts must:

     (a) Apply to the entire system of the utility;

     (b) Be based on the most probable set of future conditions that may affect water consumption and wastewater flows, including, without limitation, the customer base of the utility; and

     (c) If applicable, be separated according to rate schedule.

     3.  If the utility’s forecast includes water from a water source that may not be available at a consistent level of use because of specific legal, environmental, water quality or climatic factors, the utility shall describe its plans to supplement or replace that water source, to the extent practicable, with alternative water sources or measures to manage the demand for water.

     4.  In preparing the forecasts, the utility shall:

     (a) Describe the opportunities for the exchange or transfer of water with other utilities during the short-term and the long-term; and

     (b) Consider the effects that new technologies and new laws, regulations and other governmental programs may have on the forecasts.

     5.  To verify and complete the forecast, the utility may evaluate the forecast with the results of alternative forecasting methods.

     6.  Any change in the methodology of forecasting used by the utility from the methodology used in the utility’s previous resource plan must be identified in the current resource plan of the utility.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5668  Resource plan: Information concerning entire system of utility for 10 previous years. (NRS 703.025, 704.210, 704.661)

     1.  The resource plan of a utility must include the following information for the entire system of the utility for each of the 10 years immediately preceding the year in which the resource plan is filed with the Commission:

     (a) The recorded and coincident peak demand for water;

     (b) The recorded sales of water and wastewater flows;

     (c) The estimated or actual amount of water lost;

     (d) The estimated or actual amount of water used;

     (e) The estimated or actual amount of effluent disposed of by the utility; and

     (f) The estimated or actual amount of reclaimed water sold or used by the utility.

     2.  To the extent practicable, the information must be organized by class of service.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5669  Resource plan: Assessment of projected reliability of water service; population estimates. (NRS 703.025, 704.210, 704.661)

     1.  The resource plan of a utility, other than a utility that provides only services for the disposal of sewage, must include an assessment of the projected reliability of the utility’s water service to its customers. The assessment must compare the total projected water supply available to the utility with the total projected water use by the utility’s customers during a normal water year, a single dry water year and 3 consecutive dry water years. The assessment must be provided for the 5th, 10th, 15th and 20th years of the resource plan.

     2.  A utility shall, in its resource plan, use estimates of population obtained from a state, regional or local agency within the service area of the utility.

     3.  As used in this section:

     (a) “Dry water year” means a water year that has precipitation that is less than 80 percent of the precipitation in a normal water year.

     (b) “Normal water year” means a water year that has precipitation equal to the average precipitation calculated by an entity in the region where the utility is located.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.567  Conservation plan: General requirements. (NRS 703.025, 704.210, 704.661)

     1.  The conservation plan of a utility must include, without limitation:

     (a) A description of each program of water conservation that the utility has implemented, is implementing or proposes to implement, including, without limitation:

          (1) Water surveys for single-family residential customers and multifamily residential customers;

          (2) Programs to encourage retrofitting of residential plumbing;

          (3) Water audits, leak detection and repair;

          (4) The use of water meters with commodity rates for new connections and the retrofitting of existing connections;

          (5) Incentives and other programs of water conservation for golf courses, parks, school grounds and other large landscapes;

          (6) Rebates or other incentives for the purchase of high-efficiency washing machines;

          (7) Programs of public information;

          (8) Educational programs in schools;

          (9) Conservation programs for commercial, industrial, governmental and other customers;

          (10) The use of conservation pricing;

          (11) Employment of a person to coordinate the utility’s programs of water conservation;

          (12) Prohibitions against wasting water and measures for the enforcement of those prohibitions;

          (13) A program to encourage residential customers to replace existing toilets with ultra-low-flush toilets; and

          (14) Incentives for the reclamation of water and the use of reclaimed water;

     (b) An estimate of the savings in water consumption or the reduction in the demand for water that is attributable to each program;

     (c) An estimate of the effect on the utility’s peak demand for water and water consumption for each program;

     (d) A schedule of implementation for each proposed program;

     (e) A description of the methods, if any, that may be used to evaluate the effectiveness of each program; and

     (f) An estimate of the cost of each program. The estimate must be supported by a statement that sets forth in detail the methods used to determine the estimate, including, without limitation, the data and assumptions used to determine the estimate.

     2.  In developing its conservation plan, a utility must consider the effect that new technologies, including, without limitation, advances in digital and computer information system technologies, may have on current and future conservation programs.

     3.  The conservation plan must:

     (a) Identify each program for which the utility requests the approval of the Commission; and

     (b) Include a report of the status of each program of water conservation that has been approved by the Commission. The report must provide a table for each program that indicates for each year of the program, the planned and actual reduction in water usage and the costs of the program.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5671  Conservation plan: Analysis for potential water shortages. (NRS 703.025, 704.210, 704.661)  The conservation plan of a utility must include an analysis for potential water shortages. The analysis must include, without limitation:

     1.  An outline of the specific water supply conditions that may apply at a 25 percent shortage in the water supply and a 50 percent shortage in the water supply, and a description of the actions that the utility proposes to take in response to a water shortage at each level.

     2.  An estimate of the minimum water supply that will be available to the utility during each of the 3 water years immediately following the year in which the resource plan is submitted. The estimate must be based on the driest 3 consecutive water years that have been recorded for the utility’s water supply.

     3.  A description of the actions that the utility proposes to prepare for and implement during a catastrophic interruption of water supplies, including, without limitation, a regional power outage, an earthquake or any other natural or human-caused disaster.

     4.  An analysis of the effect that each action and condition set forth in subsections 1, 2 and 3 is likely to have on the revenue and expenditures of the utility. The analysis must set forth the actions, including, without limitation, the development of reserves and the use of rate adjustments, that the utility proposes to take to mitigate those effects.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5672  Conservation plan: Information about reclaimed water. (NRS 703.025, 704.210, 704.661)  The conservation plan of a utility must provide, to the extent practicable, information about reclaimed water and its potential for use as a water source in the service area of the utility. The utility must coordinate with local water, wastewater, groundwater and planning agencies that operate within the utility’s service area to acquire the information. The information must include, without limitation:

     1.  A description of the systems of wastewater treatment in the utility’s service area, including, without limitation:

     (a) The quantities of sewage collected and wastewater treated by the utility; and

     (b) The utility’s methods for the disposal of effluent and the reclamation of water.

     2.  A description of the quantity of treated wastewater that:

     (a) Is discharged by the utility;

     (b) Complies with the standards of water quality for reclaimed water established by the State Environmental Commission pursuant to chapter 445A of NRS; and

     (c) Is otherwise available for use in a project of water reclamation.

     3.  A description of the reclaimed water that is used in the utility’s service area, including, without limitation, the location, quantity and type of each use.

     4.  A description of the potential uses for reclaimed water in the utility’s service area, including, without limitation:

     (a) Agricultural irrigation;

     (b) Irrigation of large landscapes, including, without limitation, golf courses, parks and school grounds;

     (c) The enhancement of wildlife habitat;

     (d) The creation, restoration or preservation of wetlands;

     (e) Industrial uses; and

     (f) The recharging of groundwater.

Ê The utility shall, for each potential use of reclaimed water it identifies, estimate the amount of reclaimed water that could be used and make a determination of the technical and economic feasibility of serving that use.

     5.  A plan to maximize the use of reclaimed water in the utility’s service area. The plan must include, without limitation, any action by the utility to:

     (a) Facilitate the installation of systems for the distribution of water that have dedicated lines for the distribution of potable water and reclaimed water;

     (b) Promote the recirculation of water;

     (c) Facilitate the increased use of treated wastewater that complies with the standards of water quality for reclaimed water established by the State Environmental Commission pursuant to chapter 445A of NRS; and

     (d) Identify the impediments to achieving the increased use of treated wastewater and to remove those impediments.

     6.  A projection of the use of reclaimed water within the utility’s service area at the end of the 3rd, 10th, 15th and 20th years of the resource plan.

     7.  If a utility has previously submitted a projection of uses for reclaimed water within its service area, a comparison of the actual uses of reclaimed water with the previous projection of uses for reclaimed water.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5673  Water supply and wastewater treatment plan: Options for meeting demand for water and wastewater treatment. (NRS 703.025, 704.210, 704.661)

     1.  The water supply and wastewater treatment plan of a utility must:

     (a) Identify and analyze the utility’s options for meeting the demand for water and wastewater treatment established in the forecasts prepared by the utility pursuant to NAC 704.5667; and

     (b) Describe, for each option, the utility’s facilities and any new facilities that may be required. The description must set forth the actual or proposed capacity of each facility and the actual or proposed resources available for each year of the water supply and wastewater treatment plan.

     2.  The options must include, without limitation:

     (a) The construction of new facilities;

     (b) Improvements to existing facilities, including, without limitation, the retrofitting of the facilities with more efficient systems or the conversion of the facilities for use with other water sources or forms of wastewater treatment;

     (c) The purchase of water rights;

     (d) Improvements in the efficiency of the utility’s operations, including, without limitation, improvements that are attributable to the proposed implementation of new digital and computer information system technologies; and

     (e) Transactions with other utilities that furnish water or provide services for the disposal of sewage and with other water suppliers for:

          (1) The pooling of water supplies;

          (2) The purchase of water supplies; or

          (3) The exchange of water supplies.

     3.  The analysis must consider for each option measures to reduce the risk of interruption in the water supply, including, without limitation:

     (a) Increasing flexibility in the utility’s sources of water supply;

     (b) Increasing diversity in the utility’s sources of water supply;

     (c) Reducing the utility’s commitments for supplying water;

     (d) Selecting projects relating to water supply that can be completed within 3 years immediately following the year in which the resource plan is submitted to the Commission;

     (e) Reducing the utility’s costs of supplying water; and

     (f) Increasing the reliability of the water supply.

     4.  A utility may not include an option in its water supply and wastewater treatment plan unless the option, if selected by the utility and approved by the Commission, will:

     (a) Provide for a reliable water supply;

     (b) Be within applicable regulatory and financial constraints; and

     (c) Comply with all applicable federal, state or local laws and regulations for the protection of the environment.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5674  Water supply and wastewater treatment plan: Preferred plan. (NRS 703.025, 704.210, 704.661)  The water supply and wastewater treatment plan of a utility must include a preferred plan that sets forth the utility’s selection of its preferred options for meeting the demand for water and requirements for wastewater treatment for the term of the resource plan. The preferred plan must include an explanation of the criteria that the utility used to select its preferred options. The explanation must include sufficient detail to enable the Commission to determine whether the utility’s selection is justified.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5675  Water supply and wastewater treatment plan: Description of system and separate components; map of facilities; description of deficiencies. (NRS 703.025, 704.210, 704.661)  The water supply and wastewater treatment plan of a utility must include, without limitation:

     1.  A description of the utility’s system and the separate components of the system. The description of each component must set forth, if applicable, the location, capacity, type and age of the component and include references to any applicable documentation or other information relating to the description of the component. The components that must be described include, without limitation:

     (a) Sources of water supply, including, if the source is a well, its depth, casing depth, water zone, design capacity and capacity of the well;

     (b) Water rights, including the volume of water established for each water right and its status;

     (c) Water distribution and transmission lines;

     (d) Lines for the collection of wastewater;

     (e) Facilities for water storage;

     (f) Emergency standby facilities, including, without limitation, power supplies for the production, treatment, storage and maintenance of water pressure;

     (g) Pressure-reducing valve stations;

     (h) Booster stations;

     (i) Lift stations;

     (j) Force mains;

     (k) Facilities for wastewater treatment;

     (l) Sites for the disposal of effluent;

     (m) Sites for the reclamation of water;

     (n) The utility’s systems for supervisory control and data acquisition;

     (o) Hydraulic profile;

     (p) Operating and elevation levels;

     (q) Operation and performance of the system; and

     (r) Programs for the protection of the water supply;

     2.  A map that identifies the location, capacity, elevation and any other applicable data for each existing and proposed facility, including, without limitation, a facility described in subsection 1; and

     3.  A description of each existing or projected deficiency in the system of the utility.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5676  Funding plan: Requirement for certain items identified in conservation plan or water supply and wastewater treatment plan. (NRS 703.025, 704.210, 704.661)  The resource plan of a utility must include a funding plan for each item identified in the utility’s conservation plan or water supply and wastewater treatment plan for which the utility proposes to initiate expenditures during the term of the action plan. The funding plan must include the means the utility proposes to use to minimize the effect of the expenditures on the:

     1.  Rates charged by the utility to its customers; and

     2.  Financial risk to the utility.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5677  Funding plan: Information concerning costs utility will incur during term of action plan. (NRS 703.025, 704.210, 704.661)  The funding plan of a utility must set forth information concerning the costs that the utility will incur during the term of the action plan, including, without limitation:

     1.  The estimated costs of any construction identified in the action plan, including, without limitation:

     (a) Annual flows of expenditures with allowance for money expended during construction; and

     (b) Annual flows of expenditures without allowance for money expended during construction; and

     2.  The projected rates of escalation in costs, including, without limitation:

     (a) Capital costs; and

     (b) Fixed operating costs.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5678  Funding plan: Options for defraying expenditures. (NRS 703.025, 704.210, 704.661)  The funding plan of a utility must include options for defraying the expenditures identified in the plan. Each option must include a combination of:

     1.  Revenue from customer surcharges;

     2.  Revenue from customer hook-up fees;

     3.  Capital investment by the utility;

     4.  Debt financing by the utility; and

     5.  Other prudent and reasonable means of defraying the expenditures.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5679  Funding plan: Estimates of financial information; assumptions. (NRS 703.025, 704.210, 704.661)

     1.  The funding plan of a utility must include estimates of the following financial information for the term of the action plan:

     (a) The present worth of revenue requirements;

     (b) Revenue requirements by year;

     (c) The total rate base by year; and

     (d) Financial results attributable to the utility’s strategy of risk management.

     2.  The funding plan must include for each year of the action plan, the assumptions used by the utility relating to:

     (a) The general rate of inflation;

     (b) The rates for the cost of capital;

     (c) The discount rates used to determine present worth;

     (d) The applicable tax rates; and

     (e) Any other assumptions used by the utility to develop the funding plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.568  Action plan: General requirements. (NRS 703.025, 704.210, 704.661)  The action plan of a utility must include, without limitation:

     1.  An introductory section that explains how the action plan relates to the long-term plans of the utility as set forth in its resource plan;

     2.  A section that identifies each action for which the utility requests the approval of the Commission;

     3.  A section that identifies each part of the utility’s conservation plan that the utility proposes to carry out during the term of the action plan; and

     4.  A section that identifies each part of the utility’s water supply and wastewater treatment plan that the utility proposes to carry out during the term of the action plan and includes, without limitation:

     (a) For each facility for which construction will be performed during that term:

          (1) The utility’s plans for construction; and

          (2) The utility’s proposed schedule for construction, including, without limitation, the proposed dates for:

               (I) The preparation of any environmental impact statements, if required;

               (II) The application for and receipt of each significant permit;

               (III) Entering into a commitment for each substantial expenditure; and

               (IV) Placing the facility in commercial operation.

     (b) For each facility that will be acquired during that term, the proposed date for placing the facility in commercial operation.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5681  Action plan: Budget of planned expenditures. (NRS 703.025, 704.210, 704.661)  The action plan of a utility must include a budget of its planned expenditures. The budget must be prepared in a format that is:

     1.  Suitable for comparing its planned expenditures with its actual expenditures; and

     2.  Consistent with the format that the utility intends to use in other submissions to the Commission, if any.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5682  Action plan: Action by Commission. (NRS 703.025, 704.210, 704.661)

     1.  The Commission will:

     (a) Issue an order approving the action plan of a utility as filed;

     (b) Issue an order modifying the action plan of a utility; or

     (c) Specify those parts of the action plan that the Commission considers inadequate.

     2.  An action plan shall be deemed to be approved by the Commission only as to that portion of the action plan accepted as filed or modified with the consent of the utility pursuant to subsection 5 of NRS 704.661.

     3.  If the Commission approves the action plan of the utility, the Commission will include in the approval of the action plan its determination that the elements contained in the action plan are prudent. The Commission will make a determination that the elements of the action plan are prudent if:

     (a) The action plan maximizes the utility’s water supply and wastewater treatment capacities for the benefit of the utility’s customers; and

     (b) The utility demonstrates that the action plan balances the objectives of minimizing cost, mitigating risk and maximizing reliability of service for the term of the action plan.

     4.  If the Commission subsequently determines that any information relied upon when issuing its order approving or modifying the action plan was based upon information that was known or should have been known by the utility to be false when the information was presented, the Commission may revoke, rescind or otherwise modify its approval of the action plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008; A by R110-15, 6-28-2016)

      NAC 704.5683  Action plan: Deviation from plan by utility. (NRS 703.025, 704.210, 704.661)

     1.  Notwithstanding the approval by the Commission of the action plan of a utility, the utility may deviate from the approved action plan to the extent necessary to respond to any significant change in circumstances that was not contemplated by the action plan. A significant change in circumstances includes, without limitation:

     (a) A substantial change in the market price of water;

     (b) An extended forced outage of a major facility of the utility;

     (c) A substantial change in customer demand; or

     (d) Any other circumstance that the utility demonstrates to the Commission requires a deviation.

     2.  If a utility deviates from its approved action plan:

     (a) The Commission will determine the prudence of the deviation from the action plan in an appropriate proceeding.

     (b) If the deviation from the action plan is of a continuing nature, the utility shall request authority from the Commission to deviate prospectively from the action plan by filing an amendment to the action plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5684  Action plan: Monitoring; conditions requiring amendment. (NRS 703.025, 704.210, 704.661)

     1.  A utility shall continually monitor its action plan and amend the action plan before it submits its next resource plan to the Commission if:

     (a) The utility intends to submit an application for a permit to construct a utility facility pursuant to NRS 704.820 to 704.890, inclusive, which was not approved as part of the action plan;

     (b) The utility makes a commitment for the acquisition or construction of a facility that was not approved as part of the action plan;

     (c) The utility makes a commitment for a long-term purchased water obligation which was not approved as part of the action plan;

     (d) The utility is unable to place a resource in service or obtain a resource in accordance with the schedule for the resource that is included in the action plan which results in a significant deviation from the action plan;

     (e) The utility makes a commitment for a resource that was not available when the action plan was approved; or

     (f) The basic data used in the development of the resource plan requires substantial modification that affects the choice of a resource which was approved as part of the action plan.

     2.  The conditions under which an amendment to an action plan is requested must be specifically set forth in the application for the amendment.

     3.  As used in this section, “resource” includes, without limitation, a facility, source of water supply or water right.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5685  Amendment to action plan: Provision of overview of proposed amendment to certain entities. (NRS 703.025, 704.210, 704.661)  Before a utility files an amendment to its action plan, the utility must meet with the Bureau of Consumer Protection in the Office of the Attorney General and the Regulatory Operations Staff of the Commission to provide an overview of the proposed amendment to the action plan.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5686  Amendment to action plan: Required provisions. (NRS 703.025, 704.210, 704.661)  An amendment to an action plan must include, without limitation:

     1.  A section that identifies each action for which the utility requests approval by the Commission;

     2.  A section that specifies any changes in assumptions or data that have occurred since the utility’s last resource plan was filed with the Commission; and

     3.  If applicable, the information required in subsections 3 and 4 of NAC 704.568.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

      NAC 704.5687  Amendment to action plan: Action by Commission. (NRS 703.025, 704.210, 704.661)

     1.  The Commission will:

     (a) Issue an order approving the amendment to the action plan as filed;

     (b) Issue an order modifying the amendment to the action plan; or

     (c) Specify those parts of the amendment that the Commission considers inadequate.

     2.  An amendment to the action plan shall be deemed to be approved by the Commission only as to that portion of the amendment to the plan accepted as filed or modified with the consent of the utility pursuant to subsection 5 of NRS 704.661.

     3.  If the Commission approves the amendment, the Commission will include in the approval of the amendment its determination that the amendment is prudent. The Commission will make a determination that the amendment is prudent if:

     (a) The amendment maximizes the utility’s water supply and wastewater treatment capacities for the benefit of the utility’s customers; and

     (b) The utility demonstrates that the amendment balances the objectives of minimizing cost, mitigating risk and maximizing the reliability of water supply and wastewater treatment for the term of the action plan.

     4.  If the Commission subsequently determines that any information relied upon when issuing its order approving or modifying the amendment was based upon information that was known or should have been known by the utility to be false when the information was presented, the Commission may revoke, rescind or otherwise modify its approval of the amendment.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008; A by R110-15, 6-28-2016)

      NAC 704.5688  Accrual of expenses to develop resource plan in deferred account; recovery of expenses. (NRS 703.025, 704.210, 704.661)  A utility may, pursuant to NRS 704.661, accrue its expenses to develop a resource plan in a deferred account. The utility may request recovery of those expenses in a subsequent general rate application.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008)

Maintenance of Fire Hydrants

      NAC 704.569  General requirements; adoption by reference of certain publications. (NRS 703.025, 704.210, 704.660)

     1.  Except as otherwise provided in this section, a public utility that is required to maintain a fire hydrant pursuant to NRS 704.660 shall:

     (a) Maintain the fire hydrant in compliance with:

          (1) The International Fire Code; and

          (2) The Uniform Plumbing Code.

     (b) Inspect and operate the fire hydrant:

          (1) Not less than once each year; and

          (2) Not later than 3 days after receiving notice that the fire hydrant is not in compliance with the International Fire Code or the Uniform Plumbing Code.

     (c) If the utility discovers that the fire hydrant is not in compliance with the International Fire Code or the Uniform Plumbing Code, the utility shall, not later than 24 hours after the discovery:

          (1) Notify the local agency having jurisdiction over fire protection;

          (2) Install and maintain on the fire hydrant an out-of-service ring or bag that is approved by the local agency having jurisdiction over fire protection; and

          (3) Repair the fire hydrant as soon as practicable, but in any case, not later than 30 days after discovery of the noncompliance unless the local agency having jurisdiction over fire protection agrees to a later date for the completion of the repairs and the utility notifies the Commission of the agreement.

     (d) Paint and maintain the fire hydrant in a color scheme that is approved by the local agency having jurisdiction over fire protection.

     (e) Obtain the approval of the local agency having jurisdiction over fire protection and the Commission before removing a fire hydrant from service.

     (f) If the local agency having jurisdiction over fire protection has established a plan for inspecting fire hydrants, coordinate the utility’s inspections with the local agency.

 

     2.  The Commission hereby adopts by reference:

     (a) The International Fire Code, 2006 edition, published by the International Code Council. The publication may be obtained from the International Code Council, 500 New Jersey Avenue, N.W., 6th Floor, Washington, D.C. 20001-2070, by telephone at (800) 422-7233, or at the Internet address http://www.iccsafe.org. The price of the publication is $79 for members and $105 for nonmembers.

     (b) The Uniform Plumbing Code, 2006 edition, published by the International Association of Plumbing and Mechanical Officials. The publication may be obtained from the International Association of Plumbing and Mechanical Officials, 4755 East Philadelphia Street, Ontario, California 91761-2816, by telephone at (800) 854-2766, or at the Internet address http://www.iapmo.org. The price of the publication is $50.

     3.  The Commission will review each revision of the publications adopted by reference pursuant to subsection 2 to determine its suitability for this State. If the Commission determines that the revision is not suitable for this State, it will hold a public hearing to review its determination and give notice of that hearing within 6 months after the date of the publication of the revision. If, after the hearing, the Commission does not revise its determination, the Commission will give notice that the revision is not suitable for this State within 30 days after the hearing. If the Commission does not give such notice, the revision becomes part of the publication adopted by reference pursuant to subsection 2.

     (Added to NAC by Pub. Utilities Comm’n by R043-08, eff. 9-18-2008; A by R011-15, 10-27-2015)

Utilities That Service Limited Number of Customers: Rates and Service

      NAC 704.570  Definitions. (NRS 703.025, 704.095, 704.210)  As used in NAC 704.570 to 704.628, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.5705 to 704.5725, inclusive, have the meanings ascribed to them in those sections.

     [Pub. Service Comm’n, Gen. Order 26 § 4, eff. 8-6-80]—(NAC A 10-26-84; 11-5-93; A by Pub. Utilities Comm’n by R079-99, 11-16-99; R047-02, 10-24-2002; R036-10, 12-16-2010)

      NAC 704.5705  “Affiliate” defined. (NRS 703.025, 704.095, 704.210)  “Affiliate” means a person who, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with a utility subject to the provisions of NAC 704.570 to 704.628, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

      NAC 704.5712  “General rate change” defined. (NRS 703.025, 704.095, 704.210)  “General rate change” means an increase or decrease in rates which is designed to produce gross annual operating revenue to cover a public utility’s cost to provide service to the public, exclusive of costs that are otherwise specifically identified to be recoverable from special rate and accounting mechanisms.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

      NAC 704.5713  “Gross domestic product deflator” defined. (NRS 703.025, 704.095, 704.210)  “Gross domestic product deflator” means an economic metric that accounts for the effects of inflation or deflation in the gross domestic product for the current year by converting the value of that gross domestic product to a value relative to the gross domestic product of a designated year. For the purposes of NAC 704.570 to 704.628, inclusive, the gross domestic product deflator is published by the Bureau of Economic Analysis of the United States Department of Commerce and is calculated by the following formula:

 

                                                       Nominal gross domestic product X 100

Gross domestic product deflator =____________________________________   

                                                                Real gross domestic product

 

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

      NAC 704.5714  “Gross domestic product deflator advice letter” defined. (NRS 703.025, 704.095, 704.210)  “Gross domestic product deflator advice letter” means a letter that a utility files with the Commission to request an increase or decrease, consistent with the percentage change in the gross domestic product deflator, in the fee for basic service or the charges for a commodity provided by the utility.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

      NAC 704.5725  “Regulatory Operations Staff” defined. (NRS 703.025, 704.095, 704.210)  “Regulatory Operations Staff” means the Regulatory Operations Staff of the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 11-5-93; A by Pub. Utilities Comm’n by R036-10, 12-16-2010)

      NAC 704.575  Applicability. (NRS 703.025, 704.095, 704.210)  Except as otherwise provided in NAC 703.22075, the provisions of NAC 704.570 to 704.628, inclusive, apply to public utilities whose rates are subject to the jurisdiction of the Commission as set forth in NRS 704.095.

     [Pub. Service Comm’n, Gen. Order 26 § 2, eff. 8-6-80]—(NAC A 11-5-93; A by Pub. Utilities Comm’n by R047-02, 10-24-2002; R036-10, 12-16-2010)

      NAC 704.581  Annual notification of gross domestic product deflator. (NRS 703.025, 704.095, 704.210)  On or before February 1 of each year, the Regulatory Operations Staff shall notify all public utilities to which the provisions of NAC 704.570 to 704.628, inclusive, apply pursuant to NAC 704.575 of the most recent gross domestic product deflator.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

      NAC 704.582  Range of reasonable returns on equity: Annual filing and service; contents; use in application for adjustments in rates. (NRS 703.025, 704.095, 704.210)

     1.  On or before February 15 of each year, the Regulatory Operations Staff shall file with the Commission and serve upon the Consumer’s Advocate and all public utilities that furnish water or services for the disposal of sewage, or both, a range of reasonable returns on equity that may be used by those public utilities when filing an application for adjustments in rates.

     2.  In a range of reasonable returns on equity filed pursuant to subsection 1, the Regulatory Operations Staff shall specify the appropriate return on equity applicable to a public utility that furnishes water or services for the disposal of sewage, or both, based upon:

     (a) The size of the public utility; and

     (b) Whether the public utility is a subsidiary of a holding company.

     3.  A range of reasonable returns on equity filed pursuant to subsection 1 shall be accompanied by all work papers used to establish the range of returns on equity.

     4.  The use in an application for adjustments in rates by a public utility that furnishes water or services for the disposal of sewage, or both, of the most recent applicable range of reasonable returns on equity filed by the Regulatory Operations Staff creates a rebuttable presumption that the return on equity requested by the public utility is just and reasonable.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

      NAC 704.583  Calculation of amount of allowance for cash working capital. (NRS 703.025, 704.095, 704.210)

     1.  To calculate the amount of an allowance for cash working capital, a public utility that furnishes water or services for the disposal of sewage, or both, may:

     (a) Conduct a lead-lag study; or

     (b) Use the 1/8 formula method.

     2.  If a public utility that furnishes water elects to use the 1/8 formula method to calculate the amount of an allowance for cash working capital, the utility must use in that calculation exclusively the following accounts of the Uniform System of Accounts of the National Association of Regulatory Utility Commissioners:

     (a) Account 408, Taxes Other Than Income; and

     (b) Accounts 601 through 675, inclusive, Operations and Maintenance, exclusive of:

          (1) Account 670, Bad Debt Expense; and

          (2) Amortization of expenses of a rate case that have been deferred, otherwise included in:

               (I) Account 666, Regulatory Commission Expenses - Amortization of Rate Case Expense (Class A and B Utilities); and

               (II) Account 665, Regulatory Commission Expenses - Amortization of Rate Case Expense (Class C Utilities).

     3.  If a public utility that furnishes services for the disposal of sewage elects to use the 1/8 formula method to calculate the amount of an allowance for cash working capital, the utility must use in that calculation exclusively the following accounts of the Uniform System of Accounts of the National Association of Regulatory Utility Commissioners:

     (a) Account 408, Taxes Other Than Income; and

     (b) Accounts 701 through 775, inclusive, Operations and Maintenance, exclusive of:

          (1) Account 770, Bad Debt Expense; and

          (2) Amortization of expenses of a rate case that have been deferred, otherwise included in:

               (I) Account 766, Regulatory Commission Expenses - Amortization of Rate Case Expense (Class A and B Utilities); and

               (II) Account 765, Regulatory Commission Expenses - Amortization of Rate Case Expense (Class C Utilities).

     4.  For the purposes of this section:

     (a) “1/8 formula method” means the computation of the amount of cash working capital which equals the sum of the total annual operating expenses and total annual maintenance expenses of a utility divided by 8.

     (b) “Cash working capital” means the amount of money that the shareholders or investors of the utility have provided to enable the utility to pay current operating expenses of the utility between the time when the expenses of rendering utility service are paid and the time when revenues for that service are collected from the customers of the utility.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

      NAC 704.584  Gross domestic product deflator advice letter: Filing and contents; memorandum of recommendations. (NRS 703.025, 704.095, 704.210)

     1.  Except as otherwise provided in this subsection, on or before April 1 of each year, a utility may file a gross domestic product deflator advice letter. A utility may not file a gross domestic product deflator advice letter pursuant to this subsection if, within the preceding calendar year, the utility filed:

     (a) An application for a general rate change pursuant to NAC 704.586; or

     (b) An application to recover increased costs of fuel or power pursuant to NAC 704.595.

     2.  A gross domestic product deflator advice letter must include:

     (a) A schedule of the proposed fee for basic service and charges for a commodity;

     (b) A comparison of the existing fee for service and charges for a commodity and the proposed fee for service and charges for a commodity;

     (c) The dollar amount of the total increase or decrease in annual gross revenues expected to result from the proposed changes;

     (d) The percentage amount of the total increase or decrease in annual gross revenues expected to result from the proposed changes;

     (e) The dollar amount of the total increase or decrease in annual gross revenues expected to result from the proposed changes for each class or category of service or commodity;

     (f) The percentage amount of the total increase or decrease in annual gross revenues expected to result from the proposed changes for each class or category of service or commodity;

     (g) The number of customers at the time the gross domestic product deflator advice letter is filed to whom the proposed changes are expected to apply; and

     (h) A copy of the workpapers that reflect the calculation of the proposed changes.

     3.  The utility must file copies of the gross domestic product deflator advice letter with the Regulatory Operations Staff and the Consumer’s Advocate. The gross domestic product deflator advice letter filed with the Commission must be accompanied by proofs of service that copies of the gross domestic product deflator advice letter were filed pursuant to this subsection.

     4.  The Regulatory Operations Staff shall file with the Commission and serve on the parties a memorandum setting forth the recommendations of the Regulatory Operations Staff with respect to approval by the Commission of the proposed changes in the fee for service and charges for a commodity and such other action by the Commission as the Regulatory Operations Staff deems reasonable under the circumstances. The Regulatory Operations Staff shall file the memorandum required pursuant to this subsection within the later of:

     (a) Thirty days after the utility filed the gross domestic product deflator advice letter with the Commission; or

     (b) If the Commission has conducted a consumer session pursuant to NRS 704.069 relating to the proposed changes, 5 business days after the consumer session.

     5.  Not later than 10 business days after receipt of service of a memorandum served by the Regulatory Operations Staff pursuant to subsection 4, any party may file a response to the memorandum.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

      NAC 704.586  Application for general rate change: Filing, contents and service. (NRS 703.025, 704.095, 704.210)

     1.  To request a general rate change, a utility must file an application with the Commission.

     2.  An application for a general rate change must include:

     (a) The following forms, which are available from the Regulatory Operations Staff upon request:

          (1) Form A, Company Information (pages 1-2);

          (2) Form B, Tariff Rate Schedule;

          (3) Form C, Income Statement;

          (4) Form D, Rate Base;

          (5) Form E, Cost of Capital; and

          (6) Form F, Statement of Services;

     (b) A complete and accurate explanation of the circumstances and conditions upon which the utility relied as justification for the application;

     (c) The certification required pursuant to subsection 3 of NRS 704.110 or an explanation of the adjustments to recorded data which show the effects, on an annualized basis, of known and expected changes in circumstances;

     (d) A comparison of the existing fee for service and charges for a commodity and the proposed fee for service and charges for a commodity;

     (e) The dollar amount of the total increase or decrease in annual gross revenues expected to result from the proposed changes;

     (f) The percentage amount of the total increase or decrease in annual gross revenues expected to result from the proposed changes;

     (g) The dollar amount of the total increase or decrease in annual gross revenues expected to result from the proposed changes for each class or category of service or commodity;

     (h) The percentage amount of the total increase or decrease in annual gross revenues expected to result from the proposed changes for each class or category of service or commodity; and

     (i) The number of customers at the time the application is filed to whom the proposed changes are expected to apply.

     3.  The utility must serve copies of the application for a general rate change upon the Regulatory Operations Staff and the Consumer’s Advocate. The application for a general rate change filed with the Commission must be accompanied by proofs of service that copies of the application for a general rate change were served pursuant to this subsection.

     (Added to NAC by Pub. Utilities Comm’n by R036-10, eff. 12-16-2010)

      NAC 704.587  Gross domestic product deflator advice letter or application for general rate change: Notice to customers; affidavit to Commission. (NRS 703.025, 704.095, 704.210)  If a utility files a gross domestic product deflator advice letter pursuant to NAC 704.584 or an application pursuant to NAC 704.586:

     1.  The utility shall make available at its place of business a complete copy of the gross domestic product deflator advice letter or application that is readily accessible and can be conveniently inspected by its customers.

     2.  The utility shall, within 10 days after the date on which the gross domestic product deflator advice letter or application is filed, post a notice at its place of business which states that the gross domestic product deflator advice letter or application, as applicable, has been filed with the Commission and that a copy of the gross domestic product deflator advice letter or application, as applicable, is available for inspection by customers on the premises of the utility.

     3.  The utility shall, within 30 days after the date on which the gross domestic product deflator advice letter or application is filed, notify its customers of its intention to seek a change in its rates.

     4.  The utility shall, within 45 days after the date on which the gross domestic product deflator advice letter or application is filed, submit an affidavit to the Commission which demonstrates that the utility has complied with the requirements set forth in subsections 1, 2 and 3.

     5.  The utility shall, either by inclusion in the regular bill of charges or in a separate mailing, notify its customers of the hearing to be held to receive comments from customers and of any evidentiary hearing to be held. The utility shall provide the notice of the hearing in such a manner as to ensure that the customers are notified of the hearing not less than 10 days before the date of the hearing. The notice must specify:

     (a) The date, time and location of the consumer hearing and evidentiary hearing, if any;

     (b) The percentage of change in revenues requested in the gross domestic product deflator advice letter or application; and

     (c) The current and proposed rates.

     (Added to NAC by Pub. Utilities Comm’n by R079-99, eff. 11-16-99; A by R036-10, 12-16-2010)

      NAC 704.595  Application to recover increased costs of fuel or power: Filing and contents. (NRS 703.025, 704.095, 704.210)

     1.  A utility may submit an application requesting increases in its scheduled rates to offset increased costs of fuel or power used for pumping in its water or sewer operations, or both, except that a utility may not file such an application more often than once every 30 days.

     2.  If such an application is for increases for both water and sewer operations, the information concerning those operations must be separately stated. Such an application must include:

     (a) Form A, Company Information.

     (b) Form B, Tariff Rate Schedule.

     (c) Worksheets showing calculations and other information on the increased costs, incurred in the latest 12-month period, of fuel or power purchased for pumping for its water or sewer operations.

     (d) Legible copies of the fuel or power bills for each well or pumping station, showing the amounts of fuel or the kilowatt-hours used and the amounts paid. These bills must cover the latest 12-month period and support the data furnished in the worksheets required by paragraph (c).

     (e) A statement for the water or sewer operation, or both, showing the increase in revenue which is needed to offset the increased cost of fuel or power purchased for pumping.

     (f) Form G, Customer Notice.

Ê The requested increases in rates must reflect only the increased costs of fuel or power purchased for pumping which will be incurred by the utility. The forms required by this section are available from the Regulatory Operations Staff.

     [Pub. Service Comm’n, Gen. Order 26 § 10, eff. 8-6-80]—(NAC A by Pub. Utilities Comm’n by R079-99, 11-16-99)

      NAC 704.600  Financing for additions or improvements to plant or providing cash reserve for certain repairs, maintenance or replacements: Surcharge. (NRS 703.025, 704.095, 704.210, 704.663)

     1.  When requested by a utility, the Commission will consider a rate surcharge to:

     (a) Finance large additions or improvements to a plant; or

     (b) Provide a cash reserve for the purposes of:

          (1) Funding significant, unanticipated repairs to, or maintenance of, a water supply or wastewater treatment system; or

          (2) Funding significant but nonspecific capital improvements or replacements of capital assets.

     2.  In determining whether a surcharge should be authorized, the Commission will consider:

     (a) The need for the additions, improvements, cash reserves, repairs, maintenance or replacements;

     (b) The size, in terms of capital requirements, of the additions, improvements, cash reserves, repairs, maintenance or replacements; and

     (c) The availability of other methods of financing.

     3.  The Commission may make such amendments, restrictions or modifications in approving the surcharge as the public interest may require. For the purposes of rate making, all additions, improvements, cash reserves, repairs, maintenance or replacements that are funded by a surcharge will be considered to be a contribution in aid of construction. A rate surcharge will not be authorized unless the utility acknowledges in a written statement to the Commission that the value of the additions, improvements, cash reserves, repairs, maintenance or replacements will not be considered in determining the fair market value of the utility’s entire facility.

     4.  Any money collected by a utility pursuant to a rate surcharge authorized by the Commission must be deposited in an account separate from the utility’s other money. The money must be deposited in an interest-bearing account that is federally insured or in any other type of account approved by the Commission. A copy of all statements identifying all deposits and withdrawals must be provided to the Regulatory Operations Staff upon receipt of the statements by the utility.

     5.  All withdrawals from the account must be authorized by the Commission.

     6.  Not later than March 31 of each year, the Regulatory Operations Staff of the Commission shall present at a meeting of the Commission a report that provides, for each utility authorized by the Commission to collect a rate surcharge pursuant to this section, an accounting for the immediately preceding calendar year of the deposits and withdrawals from the separate account in which the rate surcharge is deposited.

     [Pub. Service Comm’n, Gen. Order 26 § 8, eff. 8-6-80]—(NAC A 10-26-84; A by Pub. Utilities Comm’n by R079-99, 11-16-99; R047-02, 10-24-2002; R178-12, 2-26-2014)

      NAC 704.605  Financing for additions or improvements to plant or providing cash reserve for certain repairs, maintenance or improvements: Written plan. (NRS 703.025, 704.095, 704.210, 704.663)

     1.  An applicant for a rate surcharge must submit a written plan for the replacement or expansion of the plant and its financing, or for the provision of cash reserves, whichever is applicable, to the Commission for its consideration. The plan must be in sufficient detail to enable the Commission to determine the need for the proposed additions or improvements or for the cash reserves, whichever is applicable.

     2.  A written plan submitted by an applicant for a rate surcharge to finance large additions or improvements to a plant pursuant to paragraph (a) of subsection 1 of NAC 704.600 must include, but is not limited to, the following information and documents:

     (a) A brief description of the proposed additions or improvements, together with the estimated cost and the source of that estimate, and an estimate of the time needed for construction and the estimated date of commencement and date of completion of the construction;

     (b) A list of the proposed projects in order of priority, which contains the reasons for the priorities;

     (c) The need for the proposed additions or improvements;

     (d) The size, in terms of capital requirements, of the additions or improvements;

     (e) Any letter of credit, loan commitment or other evidence that funding is or is not available to the applicant; and

     (f) The availability of other methods of financing.

     3.  A written plan submitted by an applicant for a rate surcharge to provide a cash reserve for the purposes set forth in paragraph (b) of subsection 1 of NAC 704.600 must include, but is not limited to, the following information and documentation:

     (a) Documentation that the applicant does not exceed the customer and gross sales limitations set forth in NRS 704.095;

     (b) Documentation that the applicant does not have access to other sources of funding at reasonable terms and conditions, other than the cash reserve;

     (c) The appropriate amount in the cash reserve account;

     (d) The calculation of the rate surcharge necessary to provide the appropriate amount in the cash reserve account; and

     (e) The manner in which money will be refunded to ratepayers if the cash reserve account exceeds the appropriate amount.

     [Pub. Service Comm’n, Gen. Order 26 § 9, eff. 8-6-80]—(NAC A by Pub. Utilities Comm’n by R079-99, 11-16-99; R178-12, 2-26-2014)

      NAC 704.615  Application for general rate change: Action by Commission’s Division of Consumer Complaint Resolution and Regulatory Operations Staff. (NRS 703.025, 704.095, 704.210)

     1.  Not later than 30 days after a utility files with the Commission an application for a general rate change pursuant to NAC 704.586, the Commission’s Division of Consumer Complaint Resolution will prepare and file with the Commission a report on all service complaints received by the Division subsequent to the utility’s last request for a general rate change.

     2.  Upon receipt of an application filed pursuant to NAC 704.586, the Regulatory Operations Staff shall conduct an examination of the books and records of the utility and a field inspection of the facilities of the utility. The Regulatory Operations Staff may request a utility to submit information in addition to that specifically required by NAC 704.586. Not later than 90 days after the Regulatory Operations Staff receives the application and based upon the examination and inspection conducted pursuant to this subsection, the Regulatory Operations Staff shall prepare and serve upon the utility and the interveners, if any:

     (a) A summary of the results of operations as submitted to the Commission, revised based on the Regulatory Operations Staff’s findings relating to the appropriate capital structure, reasonable expenses, rate base and revenues; and

     (b) A recommended schedule of a fee for service and charges for a commodity.

     3.  The utility and the interveners, if any, may file with the Commission a response to the Regulatory Operations Staff’s summary and recommended schedule not later than 10 business days after receiving the summary and recommended schedule.

     4.  After the Regulatory Operations Staff completes its examination and inspection, the Regulatory Operations Staff will schedule an informal settlement conference with the utility and the interveners, if any, to review the results of the examination and investigation by the Regulatory Operations Staff and the report from the Division of Consumer Complaint Resolution, and to attempt to resolve any differences among the parties.

     [Pub. Service Comm’n, Gen. Order 26 § 5 subsec. (b), eff. 8-6-80]—(NAC A 10-26-84; A by Pub. Utilities Comm’n by R079-99, 11-16-99; R036-10, 12-16-2010)

      NAC 704.622  Application for general rate change or request submitted concurrently with assistance of Regulatory Operations Staff. (NRS 703.025, 704.095, 704.210)

     1.  Except as otherwise provided in subsection 7, a utility may request the assistance of the Regulatory Operations Staff in preparing an application for a general rate change or in preparing a request submitted concurrently with an application pursuant to NAC 704.63385 by submitting a written request for assistance to the Assistant Secretary of the Commission.

     2.  Not later than 10 days after the Regulatory Operations Staff receives a utility’s written request for assistance, the Regulatory Operations Staff shall notify the utility, in writing, of the information the Regulatory Operations Staff requires to make a determination of recommended rates and charges.

     3.  The Regulatory Operations Staff shall offer to meet with the utility not later than 30 days after the Regulatory Operations Staff receives the written request for assistance. At that meeting, the utility must:

     (a) Make arrangements for the Regulatory Operations Staff to examine the books and records of the utility and to inspect the condition of the utility’s facilities; and

     (b) Except as otherwise provided in this paragraph, provide all the required information identified in the Regulatory Operations Staff’s written notice issued pursuant to subsection 2. If the utility does not provide all the required information at the meeting, the utility may provide the required information not later than 15 days after the meeting. If the utility fails to provide the required information, the Regulatory Operations Staff shall notify the utility in writing that no further action will be taken on the request until the information is provided.

     4.  Following receipt of the required information identified in the Regulatory Operations Staff’s written notice issued pursuant to subsection 2 to the utility, the Regulatory Operations Staff shall examine the books and records of the utility and inspect the condition of the utility’s facilities.

     5.  Not later than 90 days after the Regulatory Operations Staff receives the required information identified in the written notice issued to the utility, the Regulatory Operations Staff shall:

     (a) Complete the examination and inspection described in subsection 4; and

     (b) If, based on the examination and inspection, the Regulatory Operations Staff determines that the rates and charges of the utility need to be changed, prepare, on behalf of the utility, a draft of an application for a general rate change.

     6.  If the utility elects to proceed with an application for a general rate change, the utility shall file the application, as prepared by the Regulatory Operations Staff or with modifications, with the Commission not later than 45 days after receipt of the draft of the application. If the utility files an application that contains modifications to the draft of the application as prepared by the Regulatory Operations Staff, the utility must include with its application an explanation of those modifications, the basis for the modifications, workpapers detailing any modifications to calculations and any other accounting or financial data necessary to explain and justify the modifications.

     7.  If the utility elects not to proceed with the application, the utility may not make another request for the assistance of the Regulatory Operations Staff for at least 1 year after the date of the previous request for assistance.

     8.  Except as otherwise provided in this subsection, the Commission will issue an order on the application not later than 120 days after receipt of the application. The Commission may, as necessary, extend the time in which the Commission issues an order on the application for a period of not more than 90 days.

     (Added to NAC by Pub. Utilities Comm’n by R079-99, eff. 11-16-99; A by R010-05, 9-7-2005; R036-10, 12-16-2010; R078-14, 12-22-2014)

      NAC 704.625  Disclosure of transactions. (NRS 703.025, 704.095, 704.210)

     1.  Each utility shall disclose in a separate statement as a part of its application all transactions in which it engaged during the preceding year or since its most recent filing with the Commission, whichever period is shorter, with any affiliate or other person who is an owner or stockholder of the utility company.

     2.  The statement must include the nature of the transactions, the amounts of money involved, and how those amounts were determined.

     [Pub. Service Comm’n, Gen. Order 26 § 11, eff. 8-6-80]—(NAC A by Pub. Utilities Comm’n by R036-10, 12-16-2010)

      NAC 704.6265  Placement of utility in receivership. (NRS 703.025, 704.210)

     1.  Any interested person may file a petition with the Commission to request that the Commission consider taking action to have a utility whose rates are subject to the jurisdiction of the Commission as set forth in NRS 704.095 placed in receivership. A petition filed with the Commission pursuant to this subsection must be served on the utility, the Regulatory Operations Staff, the Consumer’s Advocate and the Bureau of Health Protection Services of the Division of Public and Behavioral Health of the Department of Health and Human Services and must be accompanied by proof of service. The Commission may, on its own motion, initiate an investigation into whether such a utility should be placed in receivership.

     2.  The Commission will issue a public notice of a petition filed pursuant to subsection 1. The utility that is the subject of the notice of petition may file an answer to the petition within the time set forth in the notice.

     3.  On its own motion, upon the request of the utility or upon the request of any interested person who has filed comments pursuant to a notice of petition, the Commission will hold a hearing to determine whether the Commission should take action to have the utility placed in receivership.

     4.  In considering whether to take action to have the utility placed in receivership, the Commission may consider:

     (a) Whether the utility has complied with a written plan for the replacement or expansion of the plant of the utility that has been approved by the Commission;

     (b) Whether the utility is providing reasonably adequate service;

     (c) Whether the operation of the utility is affecting the public health in a detrimental manner;

     (d) Whether the utility can meet its financial obligations; or

     (e) Any other factor that may become apparent from a petition, answers filed thereto, or evidence gathered at the hearing.

     (Added to NAC by Pub. Utilities Comm’n by R079-99, eff. 11-16-99; A by R036-10, 12-16-2010)

      NAC 704.627  Inspection; survey of customers; report of findings and recommendations; utility’s response. (NRS 703.025, 704.210)

     1.  The Regulatory Operations Staff will conduct a periodic inspection of the facilities, books and records of each public utility subject to the provisions of NAC 704.570 to 704.628, inclusive. The frequency of the inspections will be based on the growth in customer base, customer satisfaction or any other change in the utility that would provide a reason for an inspection, or on the request of the Commission.

     2.  The Regulatory Operations Staff will notify the utility and the Bureau of Consumer Protection that an inspection will be made in accordance with this section. Within 30 days after the utility receives notice of the inspection, the utility shall provide the Commission with adhesive mailing labels individually addressed to each customer. The Regulatory Operations Staff, through the Division of Consumer Complaint Resolution, will mail a survey to each customer of the utility which is scheduled for inspection.

     3.  After completing the inspection, the Regulatory Operations Staff will submit a written report of its findings and recommendations to the Commission, the utility and the Bureau of Consumer Protection. If the conclusion of the report is that the utility is not in compliance with the standards of service set forth in NAC 704.628, the utility shall submit to the Commission, within 30 days after its receipt of the report, its written response to the findings and recommendations of the Regulatory Operations Staff. The utility may contest the findings and recommendations and request a hearing before the Commission. If no hearing is requested, the utility’s response must indicate how the utility intends to comply with the recommendations set forth in the report of the Regulatory Operations Staff. If expenditures for construction are required for compliance, the utility shall include a timetable for the construction, an estimate of its cost, and an estimate of the effect, if any, of the expenditure on the utility’s rates. Upon its receipt of the utility’s response, the Regulatory Operations Staff will place the matter before the Commission. Whether or not a hearing is requested, the Commission may schedule a session to receive comments from the utility’s customers on the quality of its service. The Commission will consider the survey of customers, the Regulatory Operations Staff’s report, the utility’s response and the record of any hearing held before it approves or disapproves the findings and recommendations of the Regulatory Operations Staff or makes any findings and recommendations of its own.

     (Added to NAC by Pub. Service Comm’n, eff. 10-26-84; A by Pub. Utilities Comm’n by R079-99, 11-16-99; R047-02, 10-24-2002; R036-10, 12-16-2010)

      NAC 704.628  Standards of service. (NRS 703.025, 704.210, 704.660)  Each public utility subject to the provisions of NAC 704.570 to 704.628, inclusive, shall comply with the following standards of service:

     1.  For water resources, water rights must be sufficient to supply adequate amounts of water to satisfy existing commitments.

     2.  For water production, the utility must be capable of producing, from surface water or groundwater sources or by obtaining water from another utility, sufficient quantities of water to meet the historic maximum daily demand of the system.

     3.  For water distribution, the distribution system of the utility must meet each of the following requirements:

     (a) Service connections from the utility must not exceed the hydraulic capabilities of the system.

     (b) The network of pipes of the system must be capable of delivering maximum day demand concurrently with required fire flows. Maximum day demand must be determined from historical records or, in the absence of historical data, calculated by using a factor of three times the average day demand. Requirements for fire flow and duration of the fire flow must be established by the county or local agency having jurisdiction over fire protection. In the absence of a local agency exercising jurisdiction over fire protection, the requirements for fire flow must be established using the International Fire Code, as adopted by reference in NAC 704.569.

     (c) The distribution system, in conjunction with production, storage and pressure control facilities, must be capable of maintaining, during periods of maximum day demand, a minimum residual pressure of 40 pounds per square inch throughout the distribution system. Static pressure must not exceed 100 pounds per square inch at the lowest elevation in any pressure zone. During periods of fire flow, the residual pressure at any point in the distribution system must not fall below 20 pounds per square inch.

     (d) To deliver the quantity of water necessary to comply with the requirements of public fire protection, the utility shall provide and maintain an adequate quantity of hydrants at the prescribed spacing as established by the county or local agency having jurisdiction over fire protection. In the absence of any local agency having jurisdiction over fire protection, the spacing of fire hydrants must be determined by using the International Fire Code, as adopted by reference in NAC 704.569.

     (e) The utility shall not allow the amount of water lost from its distribution system because of leakage to exceed 10 percent of the amount of water required for the system.

     (f) All water sources must have a master meter.

     4.  For storage, the utility must provide water under both of the following circumstances:

     (a) The utility must have the ability to sustain a mechanical failure. If the single most critical pump is out of service, the pumping facilities and above-ground storage of the utility must be able to maintain the average daily flow rate plus the maximum required fire flow rate for the required duration.

     (b) The utility must have the ability to sustain a power outage. To provide system reliability during a power outage, the utility shall comply with at least one of the following:

          (1) In a power outage, pumping facilities with an alternative power source in conjunction with above-ground storage must be capable of delivering the required fire flow demand for the required duration plus maximum day demand for 1 day.

          (2) Above-ground storage must be capable of providing the required fire flow for the required duration plus the average day demand for 1 day.

Ê As used in this paragraph, “above-ground storage” means the amount of water that is stored above an elevation which will maintain a hydraulic gradient above 20 pounds per square inch at any point within the distribution system during maximum demand.

     5.  For water quality, the quality must meet all existing state and federal standards for purity.

     6.  For administration and management, adequately trained personnel must be available to operate the utility under all reasonable circumstances. Books and records maintained by the utility must comply with the systems of accounts established for class A, B and C water and wastewater utilities, as adopted by reference pursuant to NAC 704.561. Each utility shall develop and carry out a written operation and maintenance program, a cross-connection control program and an emergency plan containing procedures unique to each system. Each utility shall have on file, at an office maintained in the State of Nevada, updated drawings, maps or other permanent records to aid in the operation of the water system. The utility shall make and maintain a record of any repairs made to a distribution pipe that sets forth the location of the leak, the date the leak was repaired, an assessment of the cause of the leak and a description of the manner used to repair the pipe.

     (Added to NAC by Pub. Service Comm’n, eff. 10-26-84; A by Pub. Utilities Comm’n by R079-99, 11-16-99; R047-02, 10-24-2002; R043-08, 9-18-2008; R036-10, 12-16-2010)

Utilities That Service Limited Number of Customers: Real Property and Goods

      NAC 704.6321  “Essential real property and goods” defined. (NRS 703.025, 704.210, 704.668)  As used in NAC 704.6321 to 704.6327, inclusive, “essential real property and goods” means the real property, water rights, fixtures, facilities, and plant that are used or required for the provision of water or sewer services and are required to be recorded under account

numbers 303 to 339, inclusive, of the 1984 Uniform System of Accounts for class C water utilities. The term does not include tangible personal property such as vehicles, office equipment, computers, or calculators.

     (Added to NAC by Pub. Service Comm’n, eff. 11-5-93)—(Substituted in revision for NAC 704.996)

      NAC 704.6323  Applicability. (NRS 703.025, 704.210, 704.668)  The provisions of NAC 704.6321 to 704.6327, inclusive, apply to public utilities that are required to comply with the provisions of NRS 704.668. To determine whether a public utility is required to comply with the provisions of NRS 704.668, a public utility that serves 3,000 or fewer persons shall be deemed to include a public utility that serves 3,000 or fewer service connections.

     (Added to NAC by Pub. Service Comm’n, eff. 11-5-93; A by Pub. Utilities Comm’n by R047-02, 10-24-2002)—(Substituted in revision for NAC 704.995)

      NAC 704.6325  Requirements concerning essential real property and goods. (NRS 703.025, 704.210, 704.668)  A utility shall own, lease or have access to sufficient essential real property and goods to comply with the requirements of NAC 704.628. The utility shall protect and maintain the essential real property and goods in a manner to ensure continued performance.

     (Added to NAC by Pub. Service Comm’n, eff. 11-5-93; A by Pub. Utilities Comm’n by R079-99, 11-16-99)—(Substituted in revision for NAC 704.997)

      NAC 704.6327  Application for sale, transfer or other disposal of essential real property and goods and for sale or transfer of water rights; notice of application and hearing. (NRS 703.025, 704.210, 704.668)

     1.  A utility shall submit an application to the Commission requesting approval for:

     (a) The sale, transfer, or other disposal of essential real property and goods, other than water rights, that have a replacement value of more than $5,000 which are not being replaced immediately by the utility; and

     (b) Any sale or transfer of water rights, other than a transfer which does not remove water rights from the control of the utility for use within the utility’s certificated service area.

     2.  An application must include:

     (a) A description of the essential real property and goods proposed to be sold or transferred which includes the cost of acquisition of the essential real property and goods, the accumulated net depreciation, if any, and the net book value of the essential real property and goods;

     (b) The consideration which the utility expects for the essential real property and goods;

     (c) A copy of a lease, sales agreement, or other document concerning the sale or transfer of the essential real property and goods;

     (d) An analysis of the present and future effect which the utility believes the disposal of the essential real property and goods will have on the ability of the utility to continue to provide reasonably continuous and adequate service;

     (e) A description of any real property or goods that the utility has or will acquire to replace the essential real property and goods;

     (f) A summary of the accounting and regulatory treatment for the proposed transaction; and

     (g) If a request to transfer, dispose, or encumber water rights is made, a budget for the water rights required for the expansion or modification of the utility’s certificated service area, in accordance with existing zoning ordinances, before and after the proposed action.

     3.  The Commission will publish notice of the application if service will be impaired or a gain or loss of more than $25,000 is expected. If a hearing is scheduled, the Commission will publish notice in a local newspaper and the utility shall mail written notice of the hearing to each of its customers.

     4.  A gain on the sale or disposition of the assets of a utility must accrue to the benefit of the customers.

     5.  The sale or transfer of a utility or a portion of the utility’s operations must be conducted in accordance with NRS 704.390 and 704.410.

     (Added to NAC by Pub. Service Comm’n, eff. 11-5-93)—(Substituted in revision for NAC 704.998)

Recovery of Certain Costs by Certain Utilities

      NAC 704.633  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.633 to 704.63455, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.6331 to 704.6338, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6331  “Carrying costs” defined. (NRS 703.025, 704.210)  “Carrying costs” means the return on an eligible project or, if applicable, the return on any plant that may be retired as part of the construction of the eligible project, adjusted for accumulated depreciation and accumulated deferred income taxes, utilizing the utility’s authorized pretax rate of return.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63315  “Cost of service” defined. (NRS 703.025, 704.210)  “Cost of service” means the average embedded cost of providing water service to a customer class.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6332  “Customer class” defined. (NRS 703.025, 704.210)  “Customer class” means a category of customers identified in the rate schedule of a utility.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63325  “Depreciation expense” defined. (NRS 703.025, 704.210)  “Depreciation expense” means the return of an eligible project or, if applicable, the return of any plant that may be retired as part of the construction of the eligible project, utilizing the utility’s authorized rate of depreciation.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6333  “Distribution system” defined. (NRS 703.025, 704.210)  “Distribution system” means distribution mains, valves, hydrants, service lines, meters, meter installations and any other appurtenances which are necessary to transport treated water from the point at which the water exits a water production facility to the point at which the water is delivered to a customer.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63335  “Eligible project” defined. (NRS 703.025, 704.210)  “Eligible project” means an improvement to a distribution system, production system, transmission system or wastewater system that the Commission designates as being eligible for the recovery of costs through a system improvement rate pursuant to subsection 5 of NAC 704.6339.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6334  “Eligible project regulatory asset account” and “regulatory asset account” defined. (NRS 703.025, 704.210)  “Eligible project regulatory asset account” or “regulatory asset account” means an account in which a utility records an amount equal to the monthly system improvement rate revenue requirement for one or more new eligible projects, less the revenue the utility receives from an established system improvement rate.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63345  “Large utility” defined. (NRS 703.025, 704.210)  “Large utility” means a utility that had an annual gross operating revenue of $1,000,000 or more for at least 1 year during the immediately preceding 3 years.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6335  “Production system” defined. (NRS 703.025, 704.210)  “Production system” means wells, water treatment facilities, chemical feed systems, associated piping and any other appurtenances which are necessary for production.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63355  “Resource plan” defined. (NRS 703.025, 704.210)  “Resource plan” has the meaning ascribed to it in NAC 704.5654.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6336  “System improvement rate” defined. (NRS 703.025, 704.210)  “System improvement rate” means a rate established by the Commission pursuant to NAC 704.6343.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63365  “System improvement rate revenue requirement” defined. (NRS 703.025, 704.210)  “System improvement rate revenue requirement” means an amount equal to depreciation expense plus carrying costs, less the depreciation expense and carrying costs associated with any plant retired as part of the construction of an eligible project.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6337  “Transmission system” defined. (NRS 703.025, 704.210)  “Transmission system” means transmission mains, storage facilities, booster stations, valves and any other appurtenances which are necessary for transmission.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63375  “Utility” defined. (NRS 703.025, 704.210)  “Utility” means a public utility which furnishes, for compensation, any water for municipal, industrial or domestic purposes, or services for the disposal of sewage, or both.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6338  “Wastewater system” defined. (NRS 703.025, 704.210)  “Wastewater system” means wastewater mains, lift stations, facilities for wastewater treatment and any other appurtenances which are necessary for the collection of wastewater, treatment of wastewater, reclamation of wastewater and disposal of effluent.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63385  Request for recovery of certain amounts and costs; requirements; concurrent submission with request for assistance of Regulatory Operations Staff; approval; alternative rate design. (NRS 703.025, 704.110, 704.210, 704.663)

     1.  A utility may include in an application to make changes in any schedule submitted pursuant to NRS 704.110 a request to recover:

     (a) An amount based on the anticipated effects of implementing a plan of water conservation, including, without limitation, the anticipated effects of decreased consumption of water by customers of the utility as the result of the implementation of a plan for water conservation or the charging of rates to encourage water conservation; or

     (b) The costs of providing service without respect to the difference in the quantity of water actually sold by the utility by taking into account the adjusted and annualized quantity of water sold during a test year and the growth in the number of customers of the utility.

     2.  A request submitted pursuant to paragraph (a) of subsection 1 must include:

     (a) The amount of the requested adjustment identified by customer class, meter size and, if applicable, rate tier;

     (b) The requested rates and revenue requirement with and without the requested adjustment;

     (c) The 3 most recent years of monthly consumption data by customer or, if not reasonably available, 3 years of historical monthly consumption data by customer class;

     (d) A list of specific water conservation measures and their anticipated effects on water consumption by customer class;

     (e) An estimate of nondiscretionary water consumption by customer class;

     (f) Any corresponding adjustments to the costs of fuel or power used to pump water and the costs of chemicals used to treat water; and

     (g) If the request includes a rate design for the purpose of encouraging water conservation:

          (1) The anticipated effect of the rate design on discretionary water consumption by each affected customer class; and

          (2) Each basis for any estimate of price elasticity.

     3.  A request submitted pursuant to paragraph (b) of subsection 1 must include:

     (a) A description of the manner in which the utility proposes to decouple the revenues of the utility from the quantity of water sold by the utility, including, without limitation, a description of:

          (1) The proposed decoupling methodology;

          (2) The manner in which the utility proposes to calculate the authorized revenues that will be used in the proposed decoupling methodology described in subparagraph (1); and

          (3) The process by which the utility proposes to report to the Commission the annual reconciliation of the actual revenue of the utility versus the authorized revenue of the utility and to implement the resulting change in rates;

     (b) An illustration of the effect on each customer class of the proposal to decouple revenue;

     (c) A description of any necessary and corresponding adjustments to the costs of fuel or power used to pump water and the costs of chemicals used to treat water; and

     (d) A plan for the education of customers of the utility with respect to the proposal to decouple the revenue of the utility from the quantity of water sold by the utility.

     4.  A utility may submit a request pursuant to subsection 1 concurrently with a request for the assistance of the Regulatory Operations Staff of the Commission submitted pursuant to NAC 704.622. If the Commission receives such a concurrent request, the Regulatory Operations Staff shall:

     (a) For a request submitted pursuant to paragraph (a) of subsection 1:

          (1) Assist the utility in analyzing the implementation of any water conservation measures and rate designs to encourage water conservation and the necessity of the requested adjustment.

          (2) Include in the draft application prepared pursuant to paragraph (b) of subsection 5 of NAC 704.622 the information submitted pursuant to subsection 2.

     (b) For a request submitted pursuant to paragraph (b) of subsection 1:

          (1) Assist the utility in identifying any appropriate decoupling methodologies applicable to the utility.

          (2) If the Regulatory Operations Staff identifies an appropriate decoupling methodology pursuant to subparagraph (1), include in the draft application prepared pursuant to paragraph (b) of subsection 5 of NAC 704.622 the information submitted pursuant to paragraphs (a), (b) and (c) of subsection 3.

     5.  If the Commission approves a request submitted pursuant to:

     (a) Paragraph (a) of subsection 1:

          (1) The Commission may adjust the utility’s authorized return on equity, as appropriate, based upon the amount of the approved adjustment.

          (2) The approved adjustment is effective until the new rates of the utility go into effect as the result of the approval of a general rate case application filed pursuant to NRS 704.110.

     (b) Paragraph (b) of subsection 1:

          (1) The Commission may adjust the utility’s authorized return on equity, as appropriate, based upon the decoupling of the revenues of the utility from the quantity of water sold by the utility.

          (2) The approved method of decoupling is effective until the utility files its next general rate case application pursuant to NRS 704.110.

          (3) The utility shall include a request either to continue or discontinue the approved method of decoupling in the next subsequent general rate case application of the utility.

     6.  If a request is submitted by a utility pursuant to paragraph (a) of subsection 1, any party to the general rate case application may propose an alternative rate design to encourage water conservation. If a party proposes an alternative rate design pursuant to this subsection, the party shall submit to the Commission the information required by paragraph (g) of subsection 2. The Commission may consider any alternative rate design proposed pursuant to this subsection for the purpose of setting rates.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6339  Request or application for designation as eligible project; requirements; action by Commission. (NRS 703.025, 704.210, 704.661, 704.663)

     1.  A large utility may include in the action plan component of the utility’s resource plan submitted pursuant to NRS 704.661 a request to designate a project for an improvement to a distribution system, production system, transmission system or wastewater system as an eligible project for which a system improvement rate may be established. The project proposed for designation as an eligible project must be a new improvement project that is included in the action plan for which the large utility seeks approval pursuant to NAC 704.5682. If the large utility furnishes both water and services for the disposal of sewage, the annual gross operating revenue of the large utility for each service must be considered separately for the purpose of determining whether the large utility is eligible to submit a request pursuant to this subsection for either service.

     2.  A utility that is not required to submit a resource plan pursuant to NRS 704.661 may file an application with the Commission to designate a project for an improvement to a distribution system, production system, transmission system or wastewater system as an eligible project for which a system improvement rate may be established.

     3.  A large utility submitting a request pursuant to subsection 1 or a utility submitting an application pursuant to subsection 2 shall include with the request or application:

     (a) A description of the project.

     (b) A statement explaining the necessity of the project.

     (c) The resulting benefits of the project to the utility and the customers of the utility upon the completion of the project.

     (d) A statement supported by written testimony that the project is not designed to increase revenues by connecting an improvement to a distribution system or wastewater system to new customers.

     (e) A statement that the project was not included in the rate base of the utility in its most recent general rate case.

     (f) A statement that the project costs for which recovery will be sought represent an investment to be made by the utility and which will not be paid by another funding source, including, without limitation, a grant, developer contribution or other form of reimbursement.

     (g) If submittal to the Commission is not otherwise required by law or regulation, the utility’s plan for construction and the proposed schedule for construction. A plan for construction and a proposed schedule for construction submitted pursuant to this paragraph must comply with the provisions of paragraph (a) of subsection 4 of NAC 704.568.

     (h) If submittal to the Commission is not otherwise required by law or regulation, a budget of planned expenditures which complies with the provisions of NAC 704.5681.

     4.  A large utility submitting a request pursuant to subsection 1 shall submit the information required pursuant to subsection 3 in addition to any information otherwise required to be submitted in support of an element of an action plan pursuant to NAC 704.565 to 704.5688, inclusive.

     5.  The Commission will:

     (a) For a request submitted by a large utility pursuant to subsection 1, approve or disapprove the request at the time the Commission makes a determination with respect to the resource plan submitted by the large utility.

     (b) For an application submitted by a utility pursuant to subsection 2, approve or disapprove the application not later than 135 days after the Commission receives the application.

     6.  As used in this section, “action plan” has the meaning ascribed to it in NAC 704.5651.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63395  Notice of request or application for designation as eligible project. (NRS 703.025, 704.210, 704.661, 704.663)

     1.  A large utility that submits a request pursuant to subsection 1 of NAC 704.6339 or a utility that submits an application pursuant to subsection 2 of NAC 704.6339 shall, not later than 30 days after the date on which the Commission receives the request or application, provide notice of the request or application to each customer of the utility. The notice may be provided directly to each customer as an insert in the bill of charges provided to each customer or by written notice mailed separately from the bill of charges.

     2.  A notice provided pursuant to subsection 1 must contain:

     (a) A brief description of the need for the system improvement rate and an estimate of its amount; and

     (b) Information concerning where a customer may obtain from the utility and the Commission additional information with respect to the system improvement rate.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.634  Commission to provide approved budget estimate. (NRS 703.025, 704.210, 704.661, 704.663)  The Commission will include with the approval of a request submitted by a large utility pursuant to subsection 1 of NAC 704.6339 or an application submitted by a utility pursuant to subsection 2 of NAC 704.6339 an approved budget estimate for the eligible project.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6341  Calculation of eligible project regulatory asset account. (NRS 703.025, 704.210, 704.661, 704.663)  The calculation for the eligible project regulatory asset account for an eligible project begins on the last day of the month during which the eligible project is placed in service and ends on the date on which the project is accounted for in the rate base of the utility as the result of the approval of a general rate case application filed pursuant to NRS 704.110.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63415  Costs must be accounted for and readily identifiable. (NRS 703.025, 704.210, 704.661, 704.663)  All costs of an eligible project must be accounted for in the books and records of a utility separately from accounts attributable to any other activity. Each regulatory asset account must be maintained in a manner that will allow costs to be readily identified.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6342  Calculation of carrying costs, annual system improvement rate revenue requirement, authorized pretax rate of return and weighted average return. (NRS 703.025, 704.210)  For the purpose of calculating carrying costs, unless otherwise established by the Commission in the utility’s general rate case, the authorized rate of return used to calculate the annual system improvement rate revenue requirement for the utility shall be deemed to be 10.2 percent. The authorized pretax rate of return must be calculated by adjusting the weighted average return on equity, which shall be deemed to be 6 percent for federal income taxes. The weighted average return on equity must be calculated using an equity ratio which shall be deemed to be 40 percent and a return on equity which shall be deemed to be 15 percent.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63425  System improvement rate: Filing deadline for application; requirements; recalculation and modification. (NRS 703.025, 704.210, 704.661, 704.663)

     1.  An application to establish a system improvement rate must be filed not later than 90 days after the completion of an eligible project.

     2.  An application filed pursuant to subsection 1 must include:

     (a) The actual cost of the eligible project and invoices supporting the calculation of the actual cost.

     (b) The approved budget for the eligible project provided by the Commission pursuant to NAC 704.634.

     (c) A calculation of the system improvement rate revenue requirement for each eligible project included in the system improvement rate. The system improvement rate revenue requirement for an eligible project must be calculated on an annual basis. The monthly system improvement rate revenue requirement is one-twelfth of the annual system improvement rate revenue requirement. The annual system improvement rate revenue requirement initially must be calculated using the information available on the last day of the month during which the eligible project is placed in service.

     (d) The proposed system improvement rate to be collected from the customers of the utility. If the eligible project is an improvement to a distribution system, production system or transmission system, the proposed system improvement rate must be based upon water consumption by each customer class during the 12-month period ending on the last day of the month during which the eligible project was placed in service. If the eligible project is an improvement to a wastewater system, the proposed system improvement rate must be based upon the customer class contribution to total revenues for the 12-month period ending on the last day of the month during which the eligible project was placed in service.

Ê The utility has the burden of proving the reasonableness and prudence of the costs incurred to develop the eligible project.

     3.  The system improvement rate revenue requirement calculated as part of an application must be recalculated in any subsequent application to establish a system improvement rate submitted pursuant to subsection 1. The system improvement rate revenue requirement must be modified annually in the manner prescribed by NAC 704.63435.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6343  System improvement rate: Approval of application; authority to limit system improvement rate revenue requirement; deadline. (NRS 703.025, 704.210, 704.661, 704.663)

     1.  The Commission may approve an application to establish a system improvement rate filed pursuant to NAC 704.63425 for the purpose of recovering:

     (a) The system improvement rate revenue requirement associated with the eligible project for which a utility files the application.

     (b) The amortized amount of the balance of the eligible project regulatory asset account for each eligible project included in the system improvement rate as calculated during the 12-month period identified in subsection 3 of NAC 704.63435.

Ê The Commission may, in establishing a new system improvement rate pursuant to this section, incorporate into the new rate an existing system improvement rate which has previously been approved pursuant to this section and which is currently being recovered by the utility. A utility shall not recover the system improvement rate revenue requirement associated with an eligible project simultaneously from more than one approved system improvement rate.

     2.  If the Commission approves the application, the Commission may, in consideration of the rate impact on the customers of the utility, limit the system improvement rate revenue requirement which is eligible for recovery through the system improvement rate to the actual prudently incurred costs related to the eligible project or the approved project budget provided by the Commission pursuant to NAC 704.634, whichever is less.

     3.  If the Commission does not approve the application within 120 days after the filing date of the application, the application shall be deemed denied unless the Commission or presiding officer issues an order extending the time by which the application must be approved.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63435  System improvement rate: Annual application for continuation or adjustment; requirements; deadline for approval. (NRS 703.025, 704.210, 704.661, 704.663)

     1.  A utility that is charging a system improvement rate shall, on or before April 1 of each year after the establishment of the system improvement rate, file an application recommending continuation of the system improvement rate or an adjustment to the system improvement rate.

     2.  An application filed pursuant to subsection 1:

     (a) Must:

          (1) Provide the most current balance in the regulatory asset account for the system improvement rate.

          (2) Recommend an adjustment to account for the difference between the actual revenues from the system improvement rate and the uncollected balance of the system improvement rate revenue requirement.

     (b) May recommend an adjustment to account for the amortized amount of the reported balance of the regulatory asset account for the system improvement rate. If the utility does not provide a recommendation pursuant to this paragraph, the utility shall provide an explanation for the omission of the recommendation.

     3.  For any adjustment recommended pursuant to subsection 2:

     (a) If the eligible project for which the recommendation is proposed is an improvement to a distribution system, production system or transmission system, the recommended adjustment to the system improvement rate must be based upon water consumption by each customer class during the 12-month period for which the application is filed.

     (b) If the eligible project for which the recommendation is proposed is an improvement to a wastewater system, the recommended adjustment must be based upon the customer class contribution to total revenues for the 12-month period for which the application is filed.

     4.  If the Commission does not approve the application within 120 days after the filing date of the application, the application shall be deemed denied unless the Commission or presiding officer issues an order extending the time by which the application must be approved.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6344  Applicability of certain provisions. (NRS 703.025, 704.110, 704.210)  The provisions of NAC 704.63445, 704.6345 and 704.63455 apply only to a general rate case filed pursuant to NRS 704.110 by a utility that, with respect to the provision of water or sewer service had an annual gross operating revenue of $2,000,000 or more for at least 1 year during the immediately preceding 3 years. If the utility furnishes both water and services for the disposal of sewage, its annual gross operating revenue for each service must be considered separately for determining whether the utility meets the requirements of this section for either service.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63445  Test year data for unadjusted water consumption; cost of service study. (NRS 703.025, 704.110, 704.210)

     1.  A utility shall, not less than 45 days before the date on which it files a general rate case application pursuant to NRS 704.110, provide test year data for unadjusted water consumption in an executable format to the Regulatory Operations Staff of the Commission and the Bureau of Consumer Protection in the Office of the Attorney General.

     2.  The Regulatory Operations Staff or the Bureau of Consumer Protection will, not later than 10 business days after receipt of the data provided pursuant to subsection 1, notify the utility whether the utility must file a cost of service study for each customer class of the utility with the general rate case application of the utility.

     3.  If a utility receives a notice of requirement from the Regulatory Operations Staff or the Bureau of Consumer Protection pursuant to subsection 2, the utility shall complete the cost of service study and file the results of the study with the general rate case application of the utility.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.6345  Considerations of Commission in establishing requirements for revenue generated from certain customer classes. (NRS 703.025, 704.110, 704.210)  The Commission will consider, in establishing the requirements for revenue generated from each customer class that is supplied with water by a utility and in designing the rates for that service:

     1.  The cost of service to each customer class as determined in a cost of service study conducted pursuant to subsection 3 of NAC 704.63445.

     2.  The value of the utility’s service to each customer class and to each individual customer.

     3.  The ratio of the average demand for service by an individual customer or a customer class to the peak demand for that service during a period specified by the Commission.

     4.  The need for continuity in the rates.

     5.  The need for understandable rates.

     6.  The effects of any alternatives for obtaining revenue from each customer class.

     7.  The effects of designing rates on:

     (a) Conservation.

     (b) Efficiency.

     (c) Equity.

     (d) The operating margin.

     (e) The stability of revenues.

     (f) The ratio of the average demand on a utility’s system to the peak demand on the system during a period specified by the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

      NAC 704.63455  Alternative methods for analyzing results of cost of service study. (NRS 703.025, 704.110, 704.210)  Any party to a general rate case application may provide an alternative method or methods of analyzing the results of a cost of service study conducted pursuant to subsection 3 of NAC 704.63445 for the purpose of determining the portion of the revenue requirement that may be recovered from each customer class in consideration of the rate impacts on each customer class. The Commission may consider any alternative method provided pursuant to this section for the purpose of setting rates.

     (Added to NAC by Pub. Utilities Comm’n by R078-14, eff. 12-22-2014)

ACCOUNTING PRACTICES AND RATE MAKING FOR CERTAIN UTILITIES

Uniform System of Accounts

      NAC 704.640  Natural gas companies. (NRS 703.025, 703.191, 704.210)

     1.  The Commission hereby adopts by reference the regulations contained in 18 C.F.R. Part 201 in the form most recently published by the United States Government Printing Office. The volume containing 18 C.F.R. Parts 1-399 is available by mail from the Superintendent of

 

Documents, United States Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://bookstore.gpo.gov, for the price of $68. The regulations may be accessed free of charge on the Internet at http://www.gpo.gov/fdsys.

     2.  The Commission will review each revision of the publication adopted by reference in subsection 1 to determine its suitability for this State. If the Commission determines that the revision is not suitable for this State, the Commission will hold a public hearing to review its determination and give notice of that hearing within 6 months after the date of the publication of the revision. If, after the hearing, the Commission does not revise its determination, the Commission will give notice that the revision is not suitable for this State within 30 days after the hearing. If the Commission does not give such notice, the revision becomes part of the publication adopted by reference pursuant to subsection 1.

     [Pub. Service Comm’n, Gen. Order 14, eff. 8-30-71]—(NAC A by Pub. Utilities Comm’n by R051-09, 1-28-2010; R011-15, 10-27-2015)

      NAC 704.645  Telephone companies. (NRS 703.025, 703.191, 704.210)

     1.  The Commission hereby adopts by reference the regulations contained in 47 C.F.R. Part 32, Uniform System of Accounts for Class A and B Telephone Companies, as those regulations exist on January 1, 1988. That Part is available by mail from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://www.bookstore.gpo.gov, for the price of $18.

     2.  Except as otherwise provided in subsection 3, each company shall disclose, in an attachment to its annual report to the Commission, any changes in methods of accounting or allocation which it has made during the reporting period. The attachment must include a description of the previous methods of accounting or allocation used, the present methods of accounting or allocation used and a calculation of the approximated impact of each change in method upon the company’s weighted cost of capital, rate base and summary of earnings.

     3.  The provisions of subsection 2 do not apply to a competitive supplier.

     [Pub. Service Comm’n, Gen. Order 13, eff. 8-30-71]—(NAC A 4-18-90; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.650  Electric power companies. (NRS 703.025, 703.191, 704.210)

     1.  The Commission hereby adopts by reference the regulations contained in 18 C.F.R. Parts 41, 101 and 290 in the form most recently published by the United States Government Printing Office. The volume containing 18 C.F.R. Parts 1-399 is available by mail from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://bookstore.gpo.gov, for the price of $68. The regulations may be accessed free of charge on the Internet at http://www.gpo.gov/fdsys.

     2.  The Commission will review each revision of the publication adopted by reference pursuant to subsection 1 to determine its suitability for this State. If the Commission determines that the revision is not suitable for this State, the Commission will hold a public hearing to review its determination and give notice of that hearing within 6 months after the date of the publication of the revision. If, after the hearing, the Commission does not revise its determination, the Commission will give notice that the revision is not suitable for this State within 30 days after the hearing. If the Commission does not give such notice, the revision becomes part of the publication adopted by reference pursuant to subsection 1.

     [Pub. Service Comm’n, Gen. Order 15, eff. 8-30-71]—(NAC A by Pub. Utilities Comm’n by R051-09, 1-28-2010; R011-15, 10-27-2015)

Adjustment of Rates in Conformity With Federal Tax Reform

      NAC 704.6502  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.6502 to 704.6546, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.6504 to 704.6522, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

      NAC 704.6504  “Allowance for funds used during construction” defined. (NRS 703.025, 704.210)  “Allowance for funds used during construction” means the amount properly recorded in P.S.C.N. Account 107 by a utility to reflect the cost of money used to finance construction work in progress.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

      NAC 704.6506  “Average rate assumption method” defined. (NRS 703.025, 704.210)  “Average rate assumption method” means the method under which the excess tax reserve is reduced over the remaining lives of the property as used in the utility’s regulated books of account which gave rise to the reserve for deferred income taxes, as noted in section 203(e), “Excess Deferred Taxes Related to Changes in Tax Rates,” of the Tax Reform Act of 1986.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

      NAC 704.6508  “Contributions” defined. (NRS 703.025, 704.210)  “Contributions” means cash or noncash property of which the utility has a beneficial use pursuant to section 118 of the Internal Revenue Code, 26 U.S.C. § 118, as amended. The term includes contributions in aid of construction and customer advances.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.651  “Excess tax reserve” defined. (NRS 703.025, 704.210)  “Excess tax reserve” means the excess of the reserve for deferred taxes, over the amount which would be the balance in the reserve if the amount of the reserve were determined by assuming that the reductions in corporate income tax rate provided in the Tax Reform Act of 1986 were in effect for all prior periods.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

      NAC 704.6512  “Income tax gross up” defined. (NRS 703.025, 704.210)  “Income tax gross up” means the additional contribution amount calculated pursuant to NAC 704.6532 which is required to indemnify the utility for the additional income tax liability as a result of section 118 of the Internal Revenue Code, 26 U.S.C. § 118, as amended (i.e., “related income tax impact”).

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6514  “P.S.C.N. Account 107” defined. (NRS 703.025, 704.210)  “P.S.C.N. Account 107,” entitled “Construction Work in Progress,” means a balance sheet account which includes the total of the balances of work orders for an item of a utility plant in the process of construction.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

      NAC 704.6516  “Reverse” defined. (NRS 703.025, 704.210)  “Reverse” means the date certain when for a certain depreciable plant asset or vintage group of assets, the amount of book depreciation first exceeds tax depreciation.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

      NAC 704.6518  “Reverse South Georgia method” defined. (NRS 703.025, 704.210)  “Reverse South Georgia method” means a method whereby a taxpayer computes the excess tax reserve on all public utility property included in the plant account on the basis of the weighted average life or composite rate used to compute depreciation for regulatory purposes and reduces the excess tax reserve ratably over the remaining regulatory life of the property.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

      NAC 704.6522  “Vintage” and “vintage group” defined. (NRS 703.025, 704.210)  “Vintage” or “vintage group” means the combination, into a group, of the plant’s assets constructed or acquired in a single fiscal or vintage year. From this group an average life or average service life of a category or account is determined as a unit. Each group contains homogeneous units of plants which are generally alike in character, generally used in the same manner throughout the plant, and operate under the same general conditions.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

      NAC 704.6524  Provisions obtainable from Internal Revenue Service. (NRS 703.025, 704.210)

     1.  Sections 49, 59A, 118, 166, 167, 168, 172, 263A, and 451 of the Internal Revenue Code may be obtained from the Internal Revenue Service.

     2.  Sections 203(e), 463, and 701(a) of the Tax Reform Act of 1986 (Public Law 99-514) may be obtained from the Internal Revenue Service.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6526  Rules for rate making. (NRS 703.025, 704.210)

     1.  For the purpose of rate making, generally, any timing difference, excluding that associated with items previously flowed through, must be normalized at the applicable current corporate income tax rate.

     2.  Any item of deferred income tax that is generated and associated with items of rate base must be included in the calculation of rate base, including, without limitation, any income tax gross up amounts required by NAC 704.6532.

     3.  Any item of deferred income tax that is generated and associated with items of nonrate-base items must be excluded from rate base.

     4.  Deferred income tax balances must be adjusted to reflect changes in the statutory corporate income tax rate and these adjustments must be amortized to cost of service over a period of time to be determined by the Commission.

     5.  The rate-making treatment associated with items previously flowed through will be determined by the Commission on a case-by-case basis.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6528  Determination of rate base. (NRS 703.025, 704.210)

     1.  For rate-making purposes, the recorded book balances as of the end of the certification period must be used for the following accounts:

     (a) Plant in service;

     (b) Accumulated reserve for book depreciation; and

     (c) Accumulated deferred federal income taxes applicable to accelerated tax depreciation.

     2.  Annualized expenses for rate-making purposes applicable to recorded book plant in service balances as of the end of the certification period include:

     (a) Annualized accelerated tax depreciation on plant balances at the end of the certification period must be calculated and used to calculate the company’s federal income taxes currently payable expense.

     (b) Annualized book depreciation must be calculated for recorded book balances for plant in service at the end of the certification period and reflected as book depreciation expense.

     (c) A calculation must be made utilizing accelerated tax depreciation and straight-line depreciation on plant balances at the end of the certification period. This calculation will be used to generate the annualized deferred federal income taxes applicable to accelerated depreciation and be reflected as a component of cost of service.

     3.  If a corporation chooses not to use a certification period, subsections 1 and 2 will apply to the end of test period balances.

     4.  The above procedure for rate base will reflect a historic rate base which is known and measurable at the end of the certification period for all components of rate base. Cost of service must reflect the annualized expense level for that plant at the end of the certification period. Therefore, all components of cost of service have been synchronized to the end of certification period plant balances.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

      NAC 704.653  Calculation of allowance for funds used during construction; inclusion of deferred income tax as component of rate base. (NRS 703.025, 704.210)

     1.  Unless otherwise ordered by the Commission, the rate to be used in the calculation of the allowance for funds used during construction will be the lesser of the gross rate computed in accordance with the provisions of Electric Plant Instructions 3(17) of the Federal Energy Regulatory Commission’s Uniform System of Accounts or the current authorized overall rate of return of the utility as established by the Commission.

     2.  To the extent the use of avoided interest calculations pursuant to the Internal Revenue Code creates timing differences, deferred income tax must be calculated and included as a component of rate base.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6532  Contributions to corporate capital. (NRS 703.025, 704.210)

     1.  The Commission hereby adopts by reference section 118 of the Internal Revenue Code, 26 U.S.C. § 118, as amended.

     2.  All contributions made pursuant to section 118 of the Internal Revenue Code will be increased by an income tax gross up amount pursuant to this section and the utility’s tariff. Except as otherwise provided in subsection 8, the income tax gross up will be calculated under the method as described in subsection 3 for depreciable assets and the method as described in subsection 5 for nondepreciable assets. For rate-making purposes, contributions will be treated as described in subsection 7.

     3.  For depreciable assets, the income tax gross up percentage is the present value of the sum of annual revenue requirements associated with the inclusion of the contribution-related federal income tax amount in the rate base divided by the contribution. The contribution-related federal income tax amount is calculated by multiplying the contribution by the marginal statutory federal income tax rate for the utility. The discount rate to be used in calculating the present value of the sum of annual revenue requirements associated with the inclusion of the contribution-related federal income tax amount in the rate base is the interest rate set for customer deposits that is effective on January 1 of that year in accordance with NRS 704.655. Until the utility has recovered the contribution-related federal income tax amount through the tax benefits of accelerated depreciation on the amount of the contribution, the annual revenue requirement associated with the inclusion of the contribution-related federal income tax amount in the rate base must be calculated using the pretax authorized rate of return for the utility. Except as otherwise provided in subsection 4, the pretax authorized rate of return for the utility must be calculated using a return on equity for the utility that is increased by the statutory income tax rate applicable to the utility using the methodology set forth in subsection 5. For the purpose of calculating the income tax gross up amount for the first year, the annual revenue requirement shall be deemed to be earned at the midpoint of the year.

     4.  For the purpose of subsection 3, unless otherwise determined by the Commission in a water or sewer utility’s general rate case, the authorized rate of return used to calculate the annual revenue requirement for the water or sewer utility shall be deemed to be 10.2 percent. This authorized rate of return is calculated by adjusting the weighted average return on equity, which is deemed to be 6 percent, for federal income taxes. This weighted average return on equity is calculated using an equity ratio which is deemed to be 40 percent and a return on equity which is deemed to be 15 percent.

     5.  For nondepreciable assets, in addition to the contribution, the contributor pays the full income tax burden utilizing the statutory income tax rate applicable to that utility. The income tax gross up percentage is 1 divided by the difference between 1.00 and the statutory income tax rate applicable to that utility. For example, using a 35 percent income tax rate, the income tax gross up percentage is 1 divided by 0.65 (1.00 - 0.35), which equals 1.538462.

     6.  The utility must file a revision to the income tax gross up percentage in its tariff annually to reflect the interest rate set for customer deposits that is effective on January 1 of that year in accordance with NRS 704.655. In addition, the utility must file a revision to the income tax gross up in its tariff when a change in one or more of the components of the income tax gross up calculation, as provided in subsection 3 or 5, would result in a change in the income tax gross up percentage of 1 percent or more.

     7.  The account activity and balances resulting from accounting for the gross up on contributions would be afforded rate-making treatment. For example, deferred federal income tax assets that result from the inclusion of the contribution and income tax gross up in taxable income would be included in the rate base and increase revenue requirement. Conversely, revenue requirement would be reduced as the benefit of future tax depreciation deductions reduces related deferred taxes (i.e., rate base), and as deferred income (i.e., income tax gross up) is amortized and recognized.

     8.  Utilities that receive annual amounts of contributions which are less than 1 percent of total operating revenues or which qualify for simplified procedures or methodologies for a change of rates pursuant to NRS 704.095 may, in lieu of an income tax gross-up method elect to use one of the following methods:

     (a) Rate-base method. The amount of the contribution would not be subject to a gross up. Increased federal income tax that results from the inclusion of the contribution in taxable income would be afforded deferred income tax treatment, thereby increasing rate base. The benefit of future tax depreciation deductions are used to reduce rate base (rate-base effects are reduced to zero at the end of the related assets’ tax life).

     (b) Flow-through method. The amount of the contribution would not be subject to a gross up. Increased federal income tax that results from the inclusion of the contribution in taxable income would increase current federal income tax expense for rate-making purposes. Future tax depreciation benefits would reduce federal income tax expense for rate-making purposes.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6534  Normalization of timing differences. (NRS 703.025, 704.210)

     1.  This section applies only to those timing differences which are mandated to be normalized by the Internal Revenue Code.

     2.  Excess income tax reserves must be calculated for each vintage of assets appearing on a utility’s regulated books of account. The vintages must be analyzed and computed pursuant to section 203(e) of the Tax Reform Act of 1986.

     3.  For those utilities which do not maintain vintage records, a reverse South Georgia method may be used to amortize excess deferred income tax reserves if the use of that method is approved by the Internal Revenue Service.

     4.  The Commission hereby adopts by reference section 203(e) of the Tax Reform Act of 1986.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6536  Net operating loss carrybacks and carryovers. (NRS 703.025, 704.210)

     1.  To the extent losses from the operation of a business are the result of differences unrelated to timing, the effects of carrybacks or carryovers pursuant to section 172 of the Internal Revenue Code, 26 U.S.C. § 172, as amended, must not be considered in determining income taxes in a test year in rate proceedings.

     2.  The Commission hereby adopts by reference section 172, “Net Operating Loss Deduction,” of the Internal Revenue Code, 26 U.S.C. § 172, as amended.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6538  Capitalization and inclusion in inventory costs of certain expenses. (NRS 703.025, 704.210)  The Commission hereby adopts by reference section 263A, “Capitalization and Inclusion in Inventory Costs of Certain Expenses,” of the Internal Revenue Code, 26 U.S.C. § 263A, as amended.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6542  Alternative minimum tax. (NRS 703.025, 704.210)

     1.  The Commission hereby adopts by reference sections 53, “Credit for Prior Year Minimum Tax Liability,” and 55, “Alternative Minimum Tax Imposed,” of the Internal Revenue Code, 26 U.S.C. §§ 53 and 55, as amended.

     2.  For the purposes of rate making, incurrence of a minimum tax must not be included in the determination of income tax expense for the cost of service.

     3.  When establishing the net-to-gross multiplier, the income tax rate to be used is the statutory rate by reference to section 11 of the Internal Revenue Code, 26 U.S.C. § 11, as amended.

     4.  Since the amount paid as minimum tax in any one year can be carried forward as a credit against future years’ income tax liabilities, the actual amount paid must be recorded as prepaid tax and included in the cash working capital component of rate base.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6544  Environmental tax. (NRS 703.025, 704.210)

     1.  The Commission hereby adopts by reference section 59A of the Internal Revenue Code, 26 U.S.C. § 59A, as amended, which establishes a fund for the environmental tax to clean up hazardous substances through 1995.

     2.  For the purposes of rate making, this excise tax must be reflected in the utility’s cost of service.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89; A by Pub. Utilities Comm’n by R152-10, 11-1-2012)

      NAC 704.6546  Use of separate-entity method by utility members of consolidated group. (NRS 703.025, 704.210)

     1.  In computing federal income taxes, utility members of a consolidated group must use a separate-entity method, rather than a consolidated-company approach which includes impacts of nonutility and affiliated operations.

     2.  As used in this section, “consolidated group” means the combination of two or more affiliated corporations or enterprises for the purposes of financial statements, income tax returns, or both, which may include utility and nonutility operations or entities.

     (Added to NAC by Pub. Service Comm’n, eff. 8-31-89)

Rate Design for Certain Electric Utilities

      NAC 704.655  Applicability. (NRS 703.025, 704.210)  The provisions of NAC 704.655 to 704.665, inclusive, apply only to Sierra Pacific Power Company and Nevada Power Company.

     [Pub. Service Comm’n, Gen. Order 33 § 1.2, eff. 9-17-82]

      NAC 704.660  Consideration of marginal cost of service in determining class revenue requirements. (NRS 703.025, 704.210)  The Commission will consider a utility’s marginal (incremental) cost of service to each class of customer in determining the revenue required from that class.

     [Pub. Service Comm’n, Gen. Order 33 § 2.0, eff. 9-17-82]

      NAC 704.662  Rate design based on marginal cost of service. (NRS 703.025, 704.210)

     1.  The rates charged by the utility for supplying electricity to customers of a particular class must reflect the marginal (incremental) cost of serving that class, including any seasonal or hourly differences in the cost of the service, unless the Commission determines, in a proceeding to establish or change the rate, that:

     (a) In the case of a proposed rate which reflects seasonal differences in the cost of service:

          (1) Those differences are so insignificant that application of the rate would not result in conservation of electric energy or efficient use of facilities and resources; or

          (2) Application of the proposed rate would unreasonably affect the utility’s financial condition.

     (b) In the case of a proposed rate which would reflect hourly differences in the cost of service, the cost of providing meters capable of registering the use of electricity during the particular hours when a particular charge for that use is in effect would be greater than the benefits of conservation of electric energy and efficient use of facilities and resources which would be obtained from use of the proposed rate.

     (c) In any case:

          (1) The rate would not be equitable; or

          (2) The expected level of understanding or acceptance of the rate by the customers of the class to which the rate would apply is such that the rate would not likely serve the purpose of this regulation.

     2.  In developing a rate which will reflect the costs described in subsection 1, the utility may group hours of the day, during which the costs of service are of similar magnitude, into two or more daily periods in order to prevent confusion.

     3.  If the utility will incur a net loss of revenue as a result of instituting a rate which reflects the seasonal variations in the cost of service, the utility may apply to the Commission for authority to change its rates in order to obtain expedited recovery of the loss.

     [Pub. Service Comm’n, Gen. Order 33 § 3.0, eff. 9-17-82]

      NAC 704.665  Special rate for interruptible service. (NRS 703.025, 704.210)  Each utility shall each offer a special rate, based on the marginal (incremental) cost of service, for interruptible service when the benefits to the utility in the long run are likely to exceed its costs of providing the service, including its costs of controlling or verifying interruptions.

     [Pub. Service Comm’n, Gen. Order 39, eff. 9-17-82]

Rate Design for Certain Natural Gas Utilities

      NAC 704.6671  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.6671 to 704.6679, inclusive, unless the context otherwise requires:

     1.  “Conservation” means the reduction or elimination of the misallocation of energy which occurs when consumption is less than or greater than the level which would exist in optimal market conditions, for a reason such as improper pricing.

     2.  “Cost of service” means the average (embedded) or the marginal cost of supplying natural gas.

     3.  “Efficiency” means the optimal use of the variable inputs which are necessary for the provision of natural gas.

     [Pub. Service Comm’n, Gen. Order 36 § 2.0, eff. 10-14-82]

      NAC 704.6673  Applicability. (NRS 703.025, 704.210)  The provisions of NAC 704.6671 to 704.6679, inclusive, apply:

     1.  To utilities engaged in the intrastate sale of natural gas in Nevada.

     2.  Only in a general proceeding to fix rates unless the Commission, on its own motion or upon the timely motion of an interested person, determines that these sections should apply in a separate proceeding to modify the manner in which the revenue to be obtained from each class of customers is determined or the manner in which the rates are designed.

     [Pub. Service Comm’n, Gen. Order 36 § 1.0 subsec. 1.2, eff. 10-14-82]

      NAC 704.6675  Considerations for determination of rates for classes of customers. (NRS 703.025, 704.210)  In determining a utility’s requirements to obtain revenue from each class of customers being supplied with natural gas and in designing the rates for that service, the Commission will consider:

     1.  The cost of service to each class of customers;

     2.  The value of the utility’s service to each class of customers and to each individual customer;

     3.  The ratio of the average demand for service by an individual customer or a class of customers to the peak demand for that service during a particular period;

     4.  The need for continuity in the rates;

     5.  The supply of natural gas;

     6.  The need for understandable rates;

     7.  The effects of any alternatives for obtaining revenue from each class of customers and designing rates on:

     (a) Conservation;

     (b) Efficiency;

     (c) Equity;

     (d) The operating margin;

     (e) The stability of revenues; and

     (f) The ratio of the average demand on a utility’s system to the peak demand on the system during a particular period.

     [Pub. Service Comm’n, Gen. Order 36 § 3.0 subsec. 3.1, eff. 10-14-82]

      NAC 704.6677  Rates to be designed to conserve energy. (NRS 703.025, 704.210)  The Commission will not:

     1.  Allocate a utility’s requirements to obtain revenue from each class of customers; or

     2.  Design rates,

Ê in a manner which will hinder the conservation or efficient use of energy, unless equity so requires.

     [Pub. Service Comm’n, Gen. Order 36 § 3.0 subsec. 3.2, eff. 10-14-82]

      NAC 704.6679  Filing requirements for proceeding to establish or change rates. (NRS 703.025, 704.210)  In a proceeding to establish or change its rates, a utility shall file:

     1.  A study of the cost of service;

     2.  Illustrative rates for all classes of customers based on the study of the cost of service;

     3.  A statement of the cost of the gas supplied to the utility;

     4.  A statement of the cost of the gas supplied to the utility’s suppliers;

     5.  A statement of the utility’s projected supply of gas for the 10 years immediately following the proceeding, differentiating between the supplies which are currently under contract and those which are not;

     6.  A statement of the projected supply of gas of the utility’s suppliers during the 10 years immediately following the proceeding, differentiating between the supplies which are currently under contract and those which are not; and

     7.  A statement of the current prices of alternate fuels for each class of customers, including a projection of those prices for the year following the proceeding.

     [Pub. Service Comm’n, Gen. Order 36 § 4.0, eff. 10-14-82]

Rates for Interruptible Service

      NAC 704.673  Establishment of rate. (NRS 703.025, 704.210, 704.225)  To establish the rate for interruptible service:

     1.  The Regulatory Operations Staff of the Commission shall, on or before August 1 of each year, submit to each public utility, municipal utility and cooperative association in this State a request for information as to the lowest total rate per kilowatt-hour charged by the public utility, municipal utility or cooperative association, respectively, under any of its applicable rate schedules to its residential, commercial or industrial customers or members in this State.

     2.  Each public utility, municipal utility and cooperative association that receives a request for information pursuant to subsection 1 shall, on or before September 1 of the year in which the request is made, provide the requested information to the Regulatory Operations Staff of the Commission.

     3.  The Regulatory Operations Staff of the Commission shall, on or before September 15 of each year, provide to each utility furnishing electricity for interruptible service and the Bureau of Consumer Protection in the Office of the Attorney General the information received pursuant to subsection 2.

     4.  A public utility which furnishes electricity for interruptible service shall, on or before November 1 of each year, file an application with the Commission to revise the rate for interruptible service, calculated in accordance with the provisions of NRS 704.225 using the information provided pursuant to subsection 3.

     (Added to NAC by Pub. Utilities Comm’n by R070-07, eff. 4-17-2008)

      NAC 704.675  Schedule; annual charges. (NRS 703.025, 704.210, 704.225)

     1.  For the period from November 1 to the last day in February, inclusive:

     (a) The schedule containing the rate for interruptible service pursuant to NRS 704.225 must provide for charges which are the same as those provided in the utility’s regular schedule of rates for irrigation.

     (b) Annual charges must be prorated, and any amount attributable to the period from March 1 to October 31, inclusive, must be excluded.

     2.  The schedule containing the rate for interruptible service pursuant to NRS 704.225 must include a provision requiring the customer to agree to an interruption of service at any time during the period from March 1 to October 31, inclusive, upon notification by the utility pursuant to the conditions set forth in the utility’s tariff for interruptible service.

     [Pub. Service Comm’n, Gen. Order 34 § 3.0, eff. 2-5-82]—(NAC A 12-17-87; A by Pub. Utilities Comm’n by R070-07, 4-17-2008; R043-12, 11-1-2012)

      NAC 704.680  Recovery of deficiency. (NRS 703.025, 704.210, 704.225)  If a utility anticipates that a deficiency in revenue will result from its provision of the rate for interruptible service pursuant to NRS 704.225, it shall recover the deficiency and do so in the manner directed by the Commission for that utility.

     [Pub. Service Comm’n, Gen. Order 34 § 4.0, eff. 2-5-82]—(NAC A by Pub. Utilities Comm’n by R070-07, 4-17-2008)

ADDITIONAL REGULATIONS CONCERNING CERTAIN TELECOMMUNICATION SERVICES

General Requirements and Exemptions for Certain Providers and Services

     NAC 704.6802  Designation of companies as providers of last resort. (NRS 703.025, 704.210)

     1.  The following companies or their successors are designated as providers of last resort and shall provide basic network service and business line service to all current and future subscribers within their respective service territories, as filed with and approved by the Commission:

     (a) Beehive Telephone Co., Inc., Nevada;

     (b) Central Telephone Company, d.b.a. Embarq;

     (c) CenturyTel of the Gem State, Inc., d.b.a. CenturyTel;

     (d) Citizens Telecommunications Company of Nevada, d.b.a. Frontier Communications of Nevada;

     (e) Filer Mutual Telephone Company;

     (f) Lincoln County Telephone System, Inc.;

     (g) Moapa Valley Telephone Company;

     (h) Nevada Bell Telephone Company, d.b.a. AT&T Nevada and AT&T Wholesale;

     (i) Oregon–Idaho Utilities, Inc., d.b.a. Humboldt Telephone Company;

     (j) Rio Virgin Telephone Company, d.b.a. Rio Virgin Telephone & Cablevision;

     (k) Rural Telephone Company; and

     (l) Verizon California Inc., d.b.a. Verizon Nevada.

     2.  The companies identified in subsection 1, other than Nevada Bell Telephone Company, d.b.a. AT&T Nevada and AT&T Wholesale, and Central Telephone Company, d.b.a. Embarq, are designated as the providers of last resort for intrastate interexchange toll service within their respective service territories, as defined in tariffs on file with the Commission on January 1, 2007, and shall provide those services between all points of origination and termination within those territories.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A 7-10-96; A by Pub. Utilities Comm’n by R136-07, 1-30-2008; R191-07, 4-17-2008)

      NAC 704.68026  Certain exemptions for provider of commercial mobile radio services. (NRS 703.025, 704.210)  A provider of commercial mobile radio services is exempt from the provisions of this chapter, except that the provisions of NAC 704.6804 to 704.68056, inclusive, and 704.786, 704.7862 and 704.7864 do apply to a provider of commercial mobile radio services.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R124-99, 11-15-99; R058-17, 12-19-2017)

      NAC 704.68028  Confirmation of certain orders for change of telecommunication service. (NRS 703.025, 704.210)  A telecommunication provider shall not submit to another provider of basic service or other provider of local exchange service an order to change telecommunication service generated by telemarketing, door-to-door canvassing or other marketing methods until the order has been confirmed in accordance with at least one of the following procedures:

     1.  The telecommunication provider may obtain the written authorization of the customer to submit the order which confirms:

     (a) The customer’s billing name and address and each telephone number to be covered by the change of service;

     (b) The customer’s decision to change the service; and

     (c) The customer’s understanding of the fee charged for changing the service.

     2.  The telecommunication provider may electronically obtain the customer’s authorization to submit the order if the authorization confirms the information described in subsection 1 and the customer is confirming the authorization from the telephone number on which the service is to be changed. A telecommunication provider electing to confirm sales electronically shall establish one or more toll-free telephone numbers exclusively for that purpose. A call to the toll-free telephone number must connect a customer to a voice response unit, or similar mechanism, that records the required information regarding the change of service. Such a unit or mechanism must automatically record the number of the telephone from which the customer is calling to confirm the order to change service.

     3.  An appropriately qualified and independent third person who is in a location which is physically separate from that of the marketing representative who took the order for the change in service may obtain the customer’s oral authorization to submit the order to change service. The oral authorization must confirm and include appropriate verification data, such as the date of birth of the customer.

     4.  Within 3 business days after the customer’s order to change service, the telecommunication provider may send the customer by first-class mail an information package which includes, but is not limited to:

     (a) A statement that the information is being sent to confirm a marketing order which was placed by the customer within the previous week;

     (b) The name of the customer’s current telecommunication provider;

     (c) The name of the newly requested telecommunication provider;

     (d) A description of the terms and conditions that will be changed and the charges that will be incurred as a result of the change;

     (e) The name of the person ordering the change;

     (f) The name, address and telephone number of both the customer and the soliciting telecommunication provider;

     (g) A postcard, with postage prepaid, which the customer must complete and return to the provider to deny, cancel or confirm the change in service; and

     (h) The name, address and telephone number of the Division of Consumer Complaint Resolution of the Commission for consumer complaints.

Ê A telecommunication provider must wait until it has received the postcard, with postage prepaid, confirming the customer’s order for a change in the service before submitting that order.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

Performance Standards and Penalties to Encourage Competition and Discourage Discrimination

      NAC 704.6803  “Nonrural incumbent local exchange carrier” defined. (NRS 703.025, 704.210, 704.6881)  As used in NAC 704.6803 to 704.680315, inclusive, unless the context otherwise requires, “nonrural incumbent local exchange carrier” means an incumbent local exchange carrier that does not meet the definition of a rural telephone company set forth in 47 U.S.C. § 153(37).

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

      NAC 704.680301  Applicability; purpose. (NRS 703.025, 704.210, 704.6881)  The provisions of NAC 704.6803 to 704.680315, inclusive:

     1.  Apply to interconnection, unbundled network elements and resold services of nonrural incumbent local exchange carriers; and

     2.  Are to be used to:

     (a) Determine whether interconnection, unbundled network elements and resold services provided by nonrural incumbent local exchange carriers to competitive local exchange carriers are at least equal in quality to that provided by the nonrural incumbent local exchange carrier to itself or to any subsidiary, affiliate or any other party; and

     (b) Provide remedies if those standards are not met.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

      NAC 704.680302  Authority of certain providers to file petition for exemption from requirements relating to performance standards and penalties. (NRS 703.025, 704.210, 704.6881)

     1.  Any telecommunication provider required to file a plan pursuant to NAC 704.680303 prior to January 1, 2018, may file with the Commission a petition requesting an exemption, in whole or in part, from the requirements of NAC 704.680303 to 704.680315, inclusive. The Commission will, at the request of any party, conduct a hearing on the petition and issue an order denying the petition or setting forth the requirements of NAC 704.680303 to 704.680315, inclusive, from which the telecommunication provider is exempt.

     2.  If a telecommunication provider files a petition pursuant to subsection 1, the Commission will exempt the telecommunication provider from a requirement of NAC 704.680303 to 704.680315, inclusive, if the Commission finds that:

     (a) The requirement is no longer necessary to encourage competition and discourage discriminatory conduct in the provision of local telecommunication services; and

     (b) The granting of the exemption would not be contrary to the public interest.

     3.  If the Commission issues an order granting a telecommunication provider an exemption, in whole or in part, from the requirements of NAC 704.680303 to 704.680315, inclusive, the telecommunication provider is exempt from those requirements to the extent set forth in the order.

     4.  If the Commission denies a petition filed pursuant to subsection 1, the telecommunication provider who submitted the petition may not file another petition pursuant to this section until at least 18 months after the filing date of the petition that was denied.

     (Added to NAC by Pub. Utilities Comm’n by R113-17, eff. 5-16-2018)

      NAC 704.680303  Plans for reporting and auditing performance measures and establishing performance incentives: Request for approval; hearing; issuance of order; period of validity; request for modification. (NRS 703.025, 704.210, 704.6881)

     1.  A nonrural incumbent local exchange carrier shall, in accordance with NAC 704.6803 to 704.680315, inclusive, file with the Commission a request for the approval of:

     (a) A plan for the reporting and auditing of performance measures; and

     (b) A plan establishing performance incentives.

     2.  The Commission will conduct a hearing on a request for approval of the plans submitted pursuant to subsection 1. At such a hearing, any certificated competitive local exchange carrier doing business in the service areas of the nonrural incumbent local exchange carrier that filed the request for approval may request modifications to the plans.

     3.  The Commission will issue an order granting, denying or modifying a request for the approval or modification of the plans submitted pursuant to subsection 1 or 5.

     4.  A plan which is approved by the Commission pursuant to this section remains in effect until the Commission:

     (a) Modifies the plan pursuant to this section; or

     (b) Issues an order pursuant to NAC 704.680302 exempting the telecommunication provider, in whole or in part, from the requirement to file the plan or from a requirement set forth in the plan.

     5.  Except as otherwise provided in subsection 6:

     (a) A certificated competitive local exchange carrier may, upon good cause shown, file with the Commission a petition requesting modification of a plan of a telecommunication provider which has been approved pursuant to this section. A petition filed pursuant to this paragraph by a certificated competitive local exchange carrier must state the good cause for the filing of the petition and may include, without limitation, revisions or additions to the performance measurements filed pursuant to NAC 704.680305 or to a system of penalties determined pursuant to NAC 704.680315. If a certificated competitive local exchange carrier shows good cause for the filing of a petition pursuant to this paragraph, at the request of any party to the petition, the Commission will hold a hearing on the petition.

     (b) A telecommunication provider may file with the Commission a petition requesting modification of the plan of the telecommunication provider which has been approved pursuant to this section. At the request of any party to a petition filed pursuant to this paragraph, the Commission will hold a hearing on the petition.

     6.  If the Commission issues an order granting, denying or modifying a petition for modification of a plan submitted pursuant to subsection 5, the certificated competitive local exchange carrier or the telecommunication provider who filed the petition may not file another petition for modification of the same plan until at least 18 months after the filing date of the petition that was granted, denied or modified by the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001; A by R047-02, 10-24-2002; R113-17, 5-16-2018)

      NAC 704.680305  Plan for measuring performance. (NRS 703.025, 704.210, 704.6881)  A nonrural incumbent local exchange carrier shall file with the Commission a plan for measuring performance. Each set of performance measurements included in a plan for measuring performance must include an assessment for measuring the performance of a nonrural incumbent local exchange carrier for:

     1.  Preordering activities, which relate to the exchange of information between a nonrural incumbent local exchange carrier and a competitive local exchange carrier regarding current or proposed customer products and services, or any other information required to initiate the ordering of service by a competitive local exchange carrier. Such activities encompass the critical information needed to submit a provisioning order from a competitive local exchange carrier to a nonrural incumbent local exchange carrier. Measurements for preordering must report the timeliness with which the preordering inquiries are returned to a competitive local exchange carrier by a nonrural incumbent local exchange carrier. At a minimum, preordering measurements must assess the level of service provided for the following types of queries:

     (a) Address verification and required dispatch;

     (b) Requests for a telephone number;

     (c) Requests for customer service records;

     (d) Availability of service;

     (e) Scheduling of service appointments, such as due date;

     (f) Rejected and failed inquiries; and

     (g) Availability of facilities.

     2.  Ordering activities, which include the exchange of information between a nonrural incumbent local exchange carrier and a competitive local exchange carrier regarding requests for service. The number of requests from competitive local exchange carriers that automatically generate a service order in the system of a nonrural incumbent local exchange carrier that creates service orders must be reported within this category. Ordering measurements must assess the level of service for the:

     (a) Cycle time and completeness of an acknowledgment that a request for service has been received;

     (b) Cycle time of a firm confirmation that a valid request for service has been received and a due date for the request assigned;

     (c) Cycle time of rejection of any requests for service with errors; and

     (d) Cycle time and efficiency in which ordering tasks are completed by a nonrural incumbent local exchange carrier.

     3.  Provisioning, which includes the set of activities required to install, change or disconnect service to a customer, the functions to establish or condition physical facilities and the completion of any required software translations to define the feature functionality of the service. Provisioning involves communication between a competitive local exchange carrier and a nonrural incumbent local exchange carrier on the status of a service order, including any delay in meeting the commitment date and the time at which actual completion of service installation has occurred. At a minimum, provisioning measurements must assess the:

     (a) Quality of service installations;

     (b) Cycle time of the installation process; and

     (c) Cycle time of notifications to a competitive local exchange carrier that installation is completed or that installation has been delayed.

     4.  Maintenance, which involves the repair and restoration of customer service. Maintenance functions include the exchange of information between a nonrural incumbent local exchange carrier and a competitive local exchange carrier related to requests for the repair of services, the processing of trouble requests by a nonrural incumbent local exchange carrier, actual service restoration and tracking of maintenance history. At a minimum, maintenance measurements must assess the:

     (a) Cycle time in which trouble requests are resolved by a nonrural incumbent local exchange carrier; and

     (b) Quality of the process for restoring service.

     5.  Network performance, which involves the level at which a nonrural incumbent local exchange carrier provides services and facilitates the processing of calls within its network. A nonrural incumbent local exchange carrier shall complete any upgrades to its network efficiently. If an outage of a network occurs, a nonrural incumbent local exchange carrier shall notify the competitive local exchange carriers so that the competitive local exchange carriers can conduct appropriate management of their network and notify their customers. At a minimum, network performance measurements must assess the level of service provided on the:

     (a) Quality of interconnection;

     (b) Timeliness of notification of outages of the network by a nonrural incumbent local exchange carrier to the competitive local exchange carriers; and

     (c) Timeliness of upgrades to the network, including code openings, that a nonrural incumbent local exchange carrier completes on behalf of a competitive local exchange carrier.

     6.  Billing, which involves the exchange of information necessary for a competitive local exchange carrier to bill its customers, process end-user claims and adjustments, verify a bill from a nonrural incumbent local exchange carrier for services provided to the competitive local exchange carrier and to allow the competitive local exchange carrier to bill for access. Billing includes, without limitation, usage records. At a minimum, billing requirements must assess the:

     (a) Accuracy of the billing process of a nonrural incumbent local exchange carrier; and

     (b) Cycle time of the billing process of a nonrural incumbent local exchange carrier.

     7.  Collocation, which involves the provision to a competitive local exchange carrier of available space within the central end office of a nonrural incumbent local exchange carrier to allow the installation of the equipment of the competitive local exchange carrier. At a minimum, collocation measurements must assess the timeliness with which a nonrural incumbent local exchange carrier:

     (a) Processes a request for collocation from a competitive local exchange carrier; and

     (b) Provides the collocation facilities pursuant to such a request.

     8.  Updates of the databases for directory assistance, directory listings and emergency 911 services, including the processes by which these databases are updated with customer information that has changed as a result of service-provisioning activity. At a minimum, database measurements must assess the:

     (a) Timeliness by which changes to customer information are completed by a nonrural incumbent local exchange carrier; and

     (b) Accuracy by which changes to customer information are incorporated into the appropriate database.

     9.  Interfaces through which a nonrural incumbent local exchange carrier provides competitive local exchange carriers with choices for access to operation support systems for

preordering, maintenance and repair, the availability of which is fundamental to the ability of a competitive local exchange carrier to do business effectively with a nonrural incumbent local exchange carrier. At a minimum, interface measurements must assess the availability of the systems and personnel of a nonrural incumbent local exchange carrier to a competitive local exchange carrier.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

      NAC 704.680307  Requirements for performance measurements; exemption from performance measurements and reporting requirements. (NRS 703.025, 704.210, 704.6881)

     1.  Each individual measurement described in NAC 704.680305 must, at a minimum, include:

     (a) The title;

     (b) A description;

     (c) The method of calculation;

     (d) The period for which the measurement is being reported;

     (e) The structure for the report;

     (f) The level of reported disaggregation;

     (g) The standard for measurement; and

     (h) A description of the applicable business rules used, as approved by the Commission.

     2.  A nonrural incumbent local exchange carrier may not make changes to any metric, measurement process, start point, end point, definition or any other parameter that would change the measurement, unless the change has been approved by the Commission.

     3.  The Commission may exempt a nonrural incumbent local exchange carrier from its performance measures and reporting requirements set forth in its plans for measuring performance and establishing reporting requirements if the nonrural incumbent local exchange carrier demonstrates that the system processes are providing parity by design.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

      NAC 704.680309  Plan for establishing reporting requirements; monthly report of performance measurements; confidential information; access to data. (NRS 703.025, 704.210, 704.6881)

     1.  A nonrural incumbent local exchange carrier shall file with the Commission a plan for establishing reporting requirements.

     2.  A nonrural incumbent local exchange carrier shall create a monthly report of its performance measurements. Each monthly report of performance measurements must include, at a minimum, all reportable measures on file with the nonrural incumbent local exchange carrier for which there is activity during the previous month.

     3.  Not later than the 15th day of each month, a nonrural incumbent local exchange carrier shall make available on its website the monthly report of performance measurements for the previous month to each competitive local exchange carrier who has submitted an order for such information to the nonrural incumbent local exchange carrier, the Regulatory Operations Staff of the Commission and the Bureau of Consumer Protection in the Office of the Attorney General.

     4.  Not later than January 31 of each year, a nonrural incumbent local exchange carrier shall file each of its monthly reports for the immediately preceding year with the Staff of the Commission. The compilation of monthly reports of performance measurements must be on a CD-ROM or diskette. Information received pursuant to this subsection is deemed to be confidential.

     5.  A report of performance measurements must include sufficient information to allow for a determination of parity or benchmark achievement by the nonrural incumbent local exchange carrier.

     6.  When reporting begins on a new performance measurement or for a new competitive local exchange carrier, a nonrural incumbent local exchange carrier is only required to report results after a full calendar month of data is available.

     7.  Each competitive local exchange carrier must have access to its own data, aggregated data relating to all competitive local exchange carriers, data relating to the nonrural incumbent local exchange carrier and data relating to any affiliate of the nonrural incumbent local exchange carrier. Data relating to an affiliate of a nonrural incumbent local exchange carrier must not be included in the aggregated data relating to the competitive local exchange carriers.

     8.  A nonrural incumbent local exchange carrier shall make its raw data supporting its results of its performance measurements with regard to competitive local exchange carriers available to its competitive local exchange carriers, the Staff of the Commission and the Bureau of Consumer Protection in the Office of the Attorney General. A nonrural incumbent local exchange carrier shall archive its raw data for at least 24 months, and the raw data must be retained with sufficient detail so that a person requesting to see the raw data can reasonably reconcile the data captured by the nonrural incumbent local exchange carrier for a competitive local exchange carrier with the internal data of the competitive local exchange carrier.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

      NAC 704.680311  Plan establishing auditing requirements: Request for approval; minimum requirements. (NRS 703.025, 704.210, 704.6881)  A nonrural incumbent local exchange carrier must file with the Commission a request for approval of a plan establishing auditing requirements. At a minimum, a plan establishing auditing requirements must include an identification of comprehensive procedures and cost-allocation methods for an initial audit, annual audits and mini-audits.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

      NAC 704.680313  Plan establishing performance incentives. (NRS 703.025, 704.210, 704.6881)  A plan establishing performance incentives must:

     1.  Be specific in amount as it relates to applicable performance measures, and in an amount that reasonably encourages competitive conduct and discourages discriminatory conduct.

     2.  Be based on actual or statistical methods of measuring whether parity or a benchmark has been missed for a measure.

     3.  To the extent that financial payment is made to an affected competitive local exchange carrier, provide that any penalty paid as a part of that financial payment to the affected competitive local exchange carrier must be deducted, with interest, from any other award to that affected competitive local exchange carrier under any other judicial or administrative procedure for the same conduct in the same reporting period.

     4.  Be self-executing, subject to limited exceptions which must be specified in the plan.

     5.  Be subject to any other reasonable conditions or limitations approved by the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

      NAC 704.680315  Plan for system of penalties. (NRS 703.025, 704.210, 704.6881)  In accordance with NRS 704.6881, the Commission will conduct a proceeding to determine for each nonrural incumbent local exchange carrier subject to the provisions of NAC 704.6803 to 704.680315, inclusive, a prescribed system of penalties for actions that are inconsistent with the standards adopted in the plans of the nonrural incumbent local exchange carrier approved by the Commission pursuant to NAC 704.680303. A nonrural incumbent local exchange carrier who has received an order from a competitive local exchange carrier shall separately file the plan for its approved system of penalties with the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

Complaints to Resolve Disputes Between Telecommunication Providers

      NAC 704.68035  Definitions. (NRS 703.025, 704.210, 704.6882)  As used in NAC 704.68035 to 704.680365, inclusive, unless the context otherwise requires:

     1.  “Complaint” means a complaint filed by one telecommunication provider against another telecommunication provider.

     2.  “Telecommunication provider” or “telephone company” has the meaning ascribed to it in NRS 704.027.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001; A by R136-07, 1-30-2008)

      NAC 704.680351  Applicability. (NRS 703.025, 704.210, 704.6882)  Notwithstanding any provision of this chapter or chapter 703 of NAC to the contrary, NAC 704.68035 to 704.680365, inclusive, apply to complaints made by a telecommunication provider against another telecommunication provider for any dispute arising out of chapters 703 and 704 of NRS, and any regulations adopted pursuant thereto.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001; A by R136-07, 1-30-2008)

      NAC 704.680353  Authority to file complaint; certification required. (NRS 703.025, 704.210, 704.6882)

     1.  A telecommunication provider may file a complaint with the Commission to resolve any dispute with another telecommunication provider arising out of chapters 703 and 704 of NRS, and any regulations adopted pursuant thereto.

     2.  Before a telecommunication provider may file a complaint with the Commission against another telecommunication provider, the telecommunication provider shall attempt to resolve the complaint directly with the other telecommunication provider.

     3.  A complaint filed with the Commission by a telecommunication provider against another telecommunication provider must include certification by the complainant that:

     (a) The parties to the complaint have met and conferred in an attempt to settle the matter, but were unable to resolve the matter; or

     (b) The other party to the complaint has refused to meet with the complainant, including a description of the attempts made by the complainant to meet and confer with the other party.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001; A by R136-07, 1-30-2008)

      NAC 704.680355  Contents and filing of complaint; protective agreement regarding discovery. (NRS 703.025, 704.210, 704.6882)

     1.  In addition to the certification required by NAC 704.680353, a complaint filed by a telecommunication provider pursuant to NAC 704.68035 to 704.680365, inclusive, must:

     (a) Contain a short and plain written statement of the claim showing that the complainant is entitled to relief;

     (b) Include the facts, statutes, regulations, orders and tariffs that support each claim for relief in the complaint;

     (c) Specify the relief requested, including any interim relief being requested;

     (d) Include a certificate of service, made under penalty of perjury, that sets forth the method of service on the respondent and the Bureau of Consumer Protection in the Office of the Attorney General, in accordance with NAC 703.610 via same-day or overnight delivery, with a copy sent by electronic mail; and

     (e) Include a summary of the complaint, in 25 words or less, suitable for publication by the Commission.

     2.  A complainant must file the original with the Commission. Upon the filing of a complaint, the Commission will designate a docket number for the administrative proceedings on the complaint and assign a presiding Commissioner for those administrative proceedings.

     3.  Not later than 3 business days after the date on which a complaint is filed with the Commission, the parties to the complaint shall execute a protective agreement regarding discovery.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001; A by R107-07, 12-4-2007; R136-07, 1-30-2008)

      NAC 704.680357  Answer. (NRS 703.025, 704.210, 704.6882)

     1.  A respondent to a complaint must serve its answer to the complaint within 7 calendar days after the date on which the complaint is filed with the Commission pursuant to NAC 704.680353.

     2.  In its answer, a respondent shall:

     (a) State, in short and concise terms, its defenses to each claim asserted;

     (b) Admit or deny the facts alleged in the complaint;

     (c) State which allegations, if any, the respondent is without knowledge or information sufficient to form a belief as to the truth of the allegations; and

     (d) Set forth any facts and law that constitute an affirmative defense.

     3.  The Commission will consider an unexcused failure of a respondent to file an answer to a complaint within the time prescribed by this section to be an admission by the respondent to all relevant facts stated in the complaint.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

      NAC 704.680359  Mediation. (NRS 703.025, 704.210, 704.6882)

     1.  Upon the filing of a complaint pursuant to NAC 704.680353, the complaint must be submitted to mediation. Except for the filing of an answer and the filing of any requests for interim relief under NAC 704.680365, the Commission will suspend action on a complaint pending mediation. Except as otherwise provided in this subsection, the Director of Regulatory Operations within the Commission shall preside over the mediation of a complaint pursuant to this section. The Director of Regulatory Operations may, not later than 3 business days after the date on which a complaint is filed, designate a member of his or her staff to preside over the mediation of the complaint.

     2.  The mediator of a complaint shall issue a notice to the parties to the complaint scheduling an initial mediation conference. An initial mediation conference must be scheduled for and begun not earlier than 15 calendar days before or later than 30 calendar days after the date on which the complaint is filed with the Commission.

     3.  Each party to a complaint submitted for mediation shall submit a position statement directly with the mediator not later than 14 calendar days after the date on which the complaint was filed with the Commission. A party to a complaint shall not file a position paper with the Commission, any opposing party or counsel for an opposing party. A position statement must:

     (a) Be not more than 15 pages in length; and

     (b) Concisely state:

          (1) The relevant facts;

          (2) The issues that are the subject of the complaint;

          (3) The argument of the party supporting its position;

          (4) The applicable legal authorities; and

          (5) All other information that, in the opinion of the party, may assist the mediator in conducting the mediation conference.

     4.  A mediation conference must be held at a time and place designated by the mediator. Parties to the complaint being submitted to mediation may be represented by legal counsel. Except as otherwise provided in this subsection, a party must have in attendance at the mediation a representative who has the authority to settle the dispute. A mediator may, for good cause shown, excuse the attendance of a representative of a party if legal counsel for the party is in attendance at the mediation and the legal counsel has written authorization from the party to resolve the dispute fully on behalf of the party or has immediate telephone access to a representative of the party who has such authority.

     5.  The procedures for a mediation conference and the sequence and manner of presentations by the parties are at the discretion of the mediator. Additional mediation conferences may be conducted upon the agreement of the parties or at the direction of the mediator.

     6.  If a complaint is settled as a result of a mediation conference, the parties to the complaint shall execute and file with the Commission a voluntary dismissal of the complaint. A voluntary dismissal of a complaint must be filed with the Commission within 10 calendar days after the date on which the settlement is reached.

     7.  If a settlement of the complaint is not reached through mediation, the parties to the complaint shall, not later than 10 calendar days after the last mediation conference but in no event not later than 45 calendar days after the date on which the complaint was filed with the Commission, jointly prepare and file a mediation conference report with the Secretary of the Commission. A mediation conference report must include a list of the undisputed facts and a list of issues for resolution by the Commission.

     8.  Papers or documents prepared by a party to a complaint, by legal counsel for such a party or by the mediator of the complaint in furtherance of the mediation conference, excluding the mediation report, are not available for public inspection and must not be submitted to, and will not be considered by, the Commission in resolving the complaint. Matters discussed at a mediation conference and papers and documents that are not available for public inspection pursuant to this section are not available for discovery and are not admissible in any administrative proceeding before the Commission, or, except as otherwise provided in state or federal statute, in any other judicial or administrative proceeding.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

      NAC 704.680361  Discovery; service. (NRS 703.025, 704.210, 704.6882)

     1.  Objections to requests for discovery, if any, must be made to the party requesting discovery not later than 3 business days after the date on which the request for discovery is made. A response to a request for discovery must be served on the party requesting the discovery not later than 10 calendar days after the date on which the request is made. A dispute concerning discovery may be resolved through a conference call between the parties and the presiding officer.

     2.  All service between the parties must be made pursuant to NAC 703.680.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001; A by R107-07, 12-4-2007)

      NAC 704.680363  Hearing; final decision of Commission. (NRS 703.025, 704.210, 704.6882)

     1.  If a complaint is not fully resolved through mediation, the presiding officer assigned to the complaint shall cause to be served upon the parties to the complaint an order scheduling a hearing not later than 45 calendar days after the date on which the mediation conference report is filed. The only parties who may attend a proceeding on a complaint before a presiding officer are the complainant, the respondent, the staff of the Commission and the Consumer’s Advocate of the Bureau of Consumer Protection in the Office of the Attorney General.

     2.  The presiding officer may, by stipulation of the parties to the complaint or upon the showing of good cause by one of the parties, shorten or extend the time set for the hearing on the complaint.

     3.  Not less than 3 business days before a hearing on a complaint, each party to the complaint shall file with the presiding officer its prepared testimony and exhibits.

     4.  Except as otherwise provided in this chapter and chapter 703 of NAC, and as may be modified by the presiding officer, the rules and practices regarding parties, discovery and hearings apply to complaints filed by a telecommunication provider pursuant to NAC 704.68035 to 704.680365, inclusive.

     5.  The Commission will issue a final decision concerning a complaint not later than 45 calendar days after the date on which the hearing is held for the complaint. The Commission will, in its final decision, apportion the cost of the expenses incurred by the Commission for a transcript of the hearing on the complaint and subsequent noticing between the parties to the complaint.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001; A by R136-07, 1-30-2008)

      NAC 704.680365  Request for interim relief. (NRS 703.025, 704.210, 704.6882)

     1.  A complaint filed with the Commission pursuant to NAC 704.680353 may include a request for interim relief. A request for interim relief must:

     (a) Be filed at the same time that the complaint is filed with the Commission and served on the respondent to the complaint;

     (b) Provide prima facie evidence that immediate and irreparable injury, loss or damage will result to the complainant as a result of the conduct of the respondent and that the complainant is likely to prevail on the merits of the complaint; and

     (c) Be accompanied by a memorandum of points and authority establishing the legal basis for the interim relief requested.

     2.  An opposing party may file a written response to a request for interim relief within 7 calendar days after service of the request for interim relief.

     3.  As soon as possible after a request for interim relief is filed, the presiding officer shall set a date for hearing the request. Such a hearing must be set for the earliest date on the calendar of the presiding officer that occurs after the last date on which a response to the request for interim relief may be filed.

     4.  Notwithstanding any provision of this chapter or chapter 703 of NAC to the contrary, notice of a hearing on a request for interim relief must be:

     (a) Served at least 7 calendar days before the time set for the hearing on the parties to the underlying complaint, the staff of the Commission and the Bureau of Consumer Protection in the Office of the Attorney General; and

     (b) Published, at least 5 calendar days before the time set for the hearing, in two newspapers of general circulation.

     5.  The presiding officer shall issue the written decision on a request for interim relief as expeditiously as possible following the conclusion of the hearing on the request.

     6.  If the presiding officer determines that it is in the public interest to grant a request for interim relief, the presiding officer shall condition the terms of any order issued thereon to expire upon the resolution of the complaint by mediation or upon final order of the Commission, as appropriate.

     7.  If, after the hearing on a request for interim relief, the presiding officer determines that the request fails to state a claim upon which relief may be granted, the presiding officer shall take only such further action on the complaint as is authorized by statute or regulation.

     (Added to NAC by Pub. Utilities Comm’n by R107-00, eff. 2-26-2001)

Fund to Maintain the Availability of Telephone Service

      NAC 704.6804  Definitions. (NRS 703.025, 704.040, 704.210, 704.6873)  As used in NAC 704.6804 to 704.68056, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.6804105 to 704.680424, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R150-97, 12-11-97; R051-05, 9-7-2005; R187-05, 12-29-2005; R136-07, 1-30-2008; R006-09, 10-27-2009; R143-13 & R021-14, 10-24-2014; R058-17, 12-19-2017; R147-17, 8-30-2018)

      NAC 704.6804105  “County telephone line or system” defined. (NRS 703.025, 704.040, 704.210, 704.6873, 710.140)  “County telephone line or system” means a telephone line or system which is purchased, acquired or constructed by a county and controlled and managed by the board of county commissioners of that county pursuant to NRS 710.140.

     (Added to NAC by Pub. Utilities Comm’n by R187-05, eff. 12-29-2005)

      NAC 704.6804107  “Eligibility Administrator” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Eligibility Administrator” means the independent administrator with whom the Commission has contracted pursuant to paragraph (a) of subsection 6 of NRS 704.040.

     (Added to NAC by Pub. Utilities Comm’n by R143-13 & R021-14, eff. 10-24-2014)

      NAC 704.6804109  “Eligibility responsibility party” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Eligibility responsibility party” means:

     1.  The Eligibility Administrator; or

     2.  If the Eligibility Administrator is terminated pursuant to paragraph (b) of subsection 1 of NAC 704.680435, the National Lifeline Eligibility Verifier.

     (Added to NAC by Pub. Utilities Comm’n by R143-13 & R021-14, eff. 10-24-2014; A by R147-17, 8-30-2018)

      NAC 704.680411  “Eligible library” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Eligible library” means a library that is eligible to receive telecommunication services at a discounted rate pursuant to 47 C.F.R. § 54.501. The term includes a consortium of libraries eligible to receive telecommunication services at a discounted rate pursuant to 47 C.F.R. § 54.501(c).

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R021-14, 10-24-2014)

      NAC 704.680412  “Eligible school” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Eligible school” means a school that is eligible to receive telecommunication services at a discounted rate pursuant to 47 C.F.R. § 54.501. The term includes a consortium of schools eligible to receive telecommunication services at a discounted rate pursuant to 47 C.F.R. § 54.501(c).

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R021-14, 10-24-2014)

      NAC 704.680413  “Eligible telecommunications carrier” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Eligible telecommunications carrier” means a provider of telecommunication service whose application for designation has been approved by the Commission pursuant to NAC 704.680461.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97)

      NAC 704.680414  “Eligible telecommunications service” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Eligible telecommunications service” means a telecommunications service that may be provided to a provider of health care at a discounted rate pursuant to 47 C.F.R. § 54.604(b).

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R021-14, 10-24-2014)

      NAC 704.6804143  “Eligible voice telephony services” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Eligible voice telephony services” means the services which an eligible telecommunications carrier must offer pursuant to 47 C.F.R. § 54.101(b) to receive federal universal service support.

     (Added to NAC by Pub. Utilities Comm’n by R143-13, eff. 10-24-2014)

      NAC 704.6804147  “Fund Administrator” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Fund Administrator” means the independent administrator selected by the Commission pursuant to subsection 5 of NRS 704.040 to administer the fund to maintain the availability of telephone service.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R006-09, 10-27-2009; R143-13 & R021-14, 10-24-2014)—(Substituted in revision for NAC 704.68041)

      NAC 704.680415  “Fund to maintain the availability of telephone service” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Fund to maintain the availability of telephone service” has the meaning ascribed to it in NRS 704.013.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R006-09, 10-27-2009)

      NAC 704.6804153  “High-cost area” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “High-cost area” means an area determined by the Commission for which eligible telecommunications carriers may qualify for a disbursement of money from the fund to maintain the availability of telephone service:

     1.  For an area served by a small-scale provider of last resort, pursuant to NAC 704.68048; and

     2.  For an area served by a competitive supplier that is a provider of last resort, pursuant to NAC 704.6805.

     (Added to NAC by Pub. Utilities Comm’n by R006-09, eff. 10-27-2009)

      NAC 704.6804157  “Insular area” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Insular area” means a geographic area that is not within or contiguous to a Metropolitan Statistical Area as defined by the United States Office of Management and Budget.

     (Added to NAC by Pub. Utilities Comm’n by R006-09, eff. 10-27-2009)

      NAC 704.680416  “Lifeline” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Lifeline” has the meaning ascribed to it in 47 C.F.R. § 54.401.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R143-13, 10-24-2014)

      NAC 704.6804166  “National Lifeline Eligibility Verifier” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “National Lifeline Eligibility Verifier” has the meaning ascribed to it in 47 C.F.R. § 54.400.

     (Added to NAC by Pub. Utilities Comm’n by R147-17, eff. 8-30-2018)

      NAC 704.680417  “Provider of health care” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Provider of health care” means “health care provider” as that term is defined in 47 C.F.R. § 54.600(a).

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R021-14, 10-24-2014)

      NAC 704.6804175  “Provider of telecommunication services” defined. (NRS 703.025, 704.040, 704.210, 704.6873, 710.140)  “Provider of telecommunication services” means a provider of telecommunication services that:

     1.  Has obtained from the Commission a certificate of public convenience and necessity; or

     2.  Is a county telephone line or system.

     (Added to NAC by Pub. Utilities Comm’n by R187-05, eff. 12-29-2005)

      NAC 704.680418  “Qualifying low-income subscriber” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Qualifying low-income subscriber” means a subscriber of telecommunication service who meets the criteria set forth in NAC 704.680474 or 47 C.F.R. § 54.409.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R143-13, 10-24-2014)

      NAC 704.680419  “Rural area” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Rural area” has the meaning ascribed to it in 47 C.F.R. § 54.5.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97)

      NAC 704.680421  “Service area” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Service area” means a geographic area established by the Commission pursuant to NAC 704.680463 to determine obligations to provide universal service obligations and eligibility for federal universal service support.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97)

      NAC 704.6804213  “Small-scale provider of last resort” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Small-scale provider of last resort” has the meaning ascribed to it in NRS 704.023.

     (Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008; A by R006-09, 10-27-2009)

      NAC 704.6804215  “Toll blocking service” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Toll blocking service” has the meaning ascribed to it in 47 C.F.R. § 54.400(b).

     (Added to NAC by Pub. Utilities Comm’n by R051-05, eff. 9-7-2005; A by R143-13, 10-24-2014)

      NAC 704.680423  “Toll limitation service” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Toll limitation service” has the meaning ascribed to it in 47 C.F.R. § 54.400(d).

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R143-13, 10-24-2014)

      NAC 704.6804235  “Tribal Link Up” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Tribal Link Up” has the meaning ascribed to it in NRS 707.460.

     (Added to NAC by Pub. Utilities Comm’n by R051-05, eff. 9-7-2005; A by R143-13 & R021-14, 10-24-2014)—(Substituted in revision for NAC 704.6804165)

      NAC 704.680424  “Universal service” defined. (NRS 703.025, 704.040, 704.210, 704.6873)  “Universal service” means the availability of affordable and reliable basic service to as many customers in this State as economically and operationally practicable.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97)

      NAC 704.68043  Purpose of fund. (NRS 703.025, 704.040, 704.210, 704.6873)  The fund to maintain the availability of telephone service is established to:

     1.  Ensure that the rates charged by a provider of basic service do not adversely affect universal service within all or a portion of the area served by that provider;

     2.  Provide money to facilitate the extension of basic service to customers not currently offered telephone service, and to improve basic service to the extent other viable options are not available to provide or improve basic service;

     3.  Provide money to ensure that persons with low income and persons in rural, insular and high-cost areas have access to available intrastate telecommunication services that are reasonably comparable to those services available in urban areas at rates that are reasonably comparable to those charged in the urban areas, subject to any limitation imposed by the Commission on the size of the fund to maintain the availability of telephone service;

     4.  Provide money to ensure that public or private nonprofit providers of health care which serve persons in rural areas have access to available intrastate telecommunication services that are reasonably comparable to those services available in urban areas at rates that are reasonably comparable to those charged in the urban areas, to the extent that federal universal service support is not available pursuant to 47 C.F.R. §§ 54.601 to 54.623, inclusive, to support fully that objective, and subject to any limitation imposed by the Commission on the size of the fund to maintain the availability of telephone service; and

     5.  Provide money to support discounts of rates for intrastate telecommunication services provided to eligible schools and libraries, to the extent that federal universal service support is

not available pursuant to 47 C.F.R. §§ 54.500 to 54.517, inclusive, to reimburse fully those discounts, and subject to any limitations imposed by the Commission on the size of the fund to maintain the availability of telephone service.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R150-97, 12-11-97; R136-07, 1-30-2008; R006-09, 10-27-2009)

      NAC 704.680435  Selection of and contract with Eligibility Administrator and Fund Administrator; termination of Eligibility Administrator. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  The Commission may:

     (a) Select and contract with an Eligibility Administrator and a Fund Administrator through the use of open competitive bidding based upon a scope of work issued by the Commission; or

     (b) In accordance with the terms of a contract entered into with an independent administrator pursuant to subsection 6 of NRS 704.040, terminate the Eligibility Administrator if the National Lifeline Eligibility Verifier is able to certify and recertify the eligibility of customers for Lifeline service in this State.

     2.  The Commission may select and contract with the same person or different persons to act as the Eligibility Administrator and the Fund Administrator.

     (Added to NAC by Pub. Utilities Comm’n by R143-13 & R021-14, eff. 10-24-2014; A by R147-17, 8-30-2018)

      NAC 704.680439  Duties of Eligibility Administrator. (NRS 703.025, 704.040, 704.210, 704.6873)  Unless the Eligibility Administrator is terminated pursuant to paragraph (b) of subsection 1 of NAC 704.680435, the Eligibility Administrator shall:

     1.  Maintain the confidentiality of all customer and carrier data received by the Eligibility Administrator;

     2.  Prepare and distribute Lifeline certification and recertification forms that are consistent with the requirements of 47 C.F.R. § 54.410(d) and the applicable provisions of state law;

     3.  Receive and respond to requests for Lifeline service, including, without limitation, providing customers with Lifeline certification forms and receiving from customers completed Lifeline certification forms and documents demonstrating that a prospective subscriber is qualified for Lifeline service pursuant to NAC 704.680474;

     4.  Create and maintain a database of customers who apply for and receive Lifeline service which contains the information required by 47 C.F.R. § 54.404(b);

     5.  Interact with state and federal agencies to obtain information to determine whether a prospective subscriber is qualified for Lifeline service pursuant to NAC 704.680474;

     6.  Query the National Lifeline Accountability Database to verify eligibility for certification of applicants in the database created pursuant to subsection 4;

     7.  Determine whether applicants are eligible for Lifeline service, provide notice of such determinations to each applicant and the eligible telecommunications carrier selected by each applicant and, if applicable, provide to the eligible telecommunications carrier a copy of the certification of the applicant; and

     8.  Recertify continued subscriber eligibility in accordance with 47 C.F.R. § 54.410(f) and NAC 704.6804743 and provide notice to the eligible telecommunications carrier of record, as determined by the records maintained by the Eligibility Administrator and the National Lifeline Accountability Database, as to whether a subscriber continues to be eligible for Lifeline service.

     (Added to NAC by Pub. Utilities Comm’n by R143-13 & R021-14, eff. 10-24-2014; A by R147-17, 8-30-2018)

      NAC 704.68044  Duties of Fund Administrator. (NRS 703.025, 704.040, 704.210, 704.6873)  The Fund Administrator shall:

     1.  Conduct periodic audits of contributors to the fund to maintain the availability of telephone service to ensure that the correct payments are being remitted by persons providing intrastate telecommunication service or the functional equivalent of such service through any form of telephony technology, unless the levy and collection of an assessment with regard to a particular form of technology is prohibited by federal law.

     2.  Verify the qualifications of an applicant who requests support from the fund to maintain the availability of telephone service.

     3.  Collect assessments from all persons providing intrastate telecommunication service or the functional equivalent of such service through any form of telephony technology, unless the levy and collection of an assessment with regard to a particular form of technology is prohibited by federal law and deposit that money into the fund to maintain the availability of telephone service.

     4.  Disburse money from the fund to maintain the availability of telephone service to eligible telecommunications carriers who qualify for funding in accordance with NAC 704.6804 to 704.68056, inclusive, and with applicable orders of the Commission.

     5.  Prepare a quarterly report of all activities of the fund to maintain the availability of telephone service, including:

     (a) The total quarterly and year-to-date payments into the fund to maintain the availability of telephone service from all persons who provide telecommunication service or the functional equivalent of such service through any form of telephony technology, unless the levy and collection of an assessment with regard to a particular form of technology is prohibited by federal law;

     (b) An itemization of all disbursements from the fund to maintain the availability of telephone service to each qualified eligible telecommunications carrier; and

     (c) The results of any audits of contributors conducted pursuant to subsection 1.

     6.  Prepare and submit a request to the Commission to collect money for and disburse money from the fund to maintain the availability of telephone service, which includes:

     (a) The estimated amount of money required to support the fund to maintain the availability of telephone service for the following year; and

     (b) The percentage rate which must be applied to the intrastate retail revenues derived from telecommunication service of all of the providers of intrastate telecommunication service or the functional equivalent of such service through any form of telephony technology, unless the levy and collection of an assessment with regard to a particular form of technology is prohibited by federal law to raise the estimated amount of money required, as reported in paragraph (a).

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R187-05, 12-29-2005; R006-09, 10-27-2009; R087-09, 1-28-2010; R021-14, 10-24-2014)

      NAC 704.68046  General eligibility requirements to qualify for disbursement from fund. (NRS 703.025, 704.040, 704.210, 704.6873, 710.140)  To qualify for a disbursement of money from the fund to maintain the availability of telephone service:

     1.  If the disbursement of money is for the purposes set forth in subsection 1 or 2 of NAC 704.68043, the provider of telecommunication service must:

     (a) Be an eligible telecommunications carrier;

     (b) Be a provider of last resort; and

     (c) If the provider of telecommunication service is a small-scale provider of last resort, average its rates for basic service in a manner that is consistent with NAC 704.68085 within the service area in which it is designated as an eligible telecommunications carrier.

     2.  If the disbursement of money is to ensure that persons with low income have access to available intrastate telecommunication services pursuant to subsection 3 of NAC 704.68043, the provider of telecommunication service must:

     (a) Be an eligible telecommunications carrier; and

     (b) If the provider of telecommunication service is a small-scale provider of last resort, average its rates for basic service in a manner that is consistent with NAC 704.68085 within the service area in which the provider of telecommunication service is designated as an eligible telecommunications carrier.

     3.  If the disbursement of money is:

     (a) For the purpose set forth in subsection 4 of NAC 704.68043; and

     (b) Intended specifically to support the provision of access to an Internet service provider,

Ê the provider of telecommunication service is not required to be an eligible telecommunications carrier, but must have a certificate of public convenience and necessity issued by the Commission, have filed with the Commission the information required by NAC 704.7862 or be a county telephone line or system.

     4.  If the disbursement of money is for the purpose set forth in subsection 5 of NAC 704.68043, the provider of telecommunication service must:

     (a) Hold a certificate of public convenience and necessity issued by the Commission, have filed with the Commission the information required by NAC 704.7862 or be a county telephone line or system;

     (b) Meet the requirements for eligibility set forth in 47 C.F.R. § 54.501; and

     (c) Provide services described in 47 C.F.R. § 54.502 at discounted rates pursuant to NAC 704.680469.

     5.  If the disbursement of money is for the provision of Tribal Link Up service, the provider of telecommunication service must satisfy the requirements set forth in 47 C.F.R. § 54.414.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R150-97, 12-11-97; R187-05, 12-29-2005; R006-09, 10-27-2009; R143-13, 10-24-2014)

      NAC 704.680461  Designation as eligible telecommunications carrier: Requirements; exception; issuance of order by Commission approving or denying application. (NRS 703.025, 704.040, 704.210, 704.6873, 710.140)

     1.  A provider of telecommunication service who seeks designation as an eligible telecommunications carrier must file with the Commission an application in which the provider affirms that it:

     (a) Except as otherwise provided in subsection 2, holds a certificate of public convenience and necessity issued by the Commission that authorizes the provider of telecommunication service to provide basic service or is a county telephone line or system.

     (b) Offers eligible voice telephony services throughout the service area for which the provider of telecommunication service seeks designation as an eligible telecommunications carrier. Such services must be provided at rates and in accordance with terms that are nondiscriminatory and may be provided by the provider of telecommunication service using:

          (1) Its own facilities, which may include, without limitation, facilities obtained as unbundled network elements from another provider of telecommunication services; or

          (2) A combination of its own facilities and resale of the services of another provider of telecommunication service.

     (c) At least once every 3 months, advertises throughout the service area for which the provider of telecommunication service seeks designation as an eligible telecommunications carrier the availability of eligible voice telephony services and the rates and charges applicable to those services through prominent presentation in one or more forms of media of general distribution, including, without limitation, newspapers, television or radio.

     2.  An applicant who seeks designation as an eligible telecommunications carrier is not required to hold a certificate of public convenience and necessity if the applicant:

     (a) Seeks the designation for the sole purpose of providing Lifeline service to qualifying low-income subscribers; and

     (b) Is a provider of commercial mobile radio service that satisfies the requirements of NAC 704.786, 704.7862 and 704.7864.

     3.  The Commission will issue an order approving or denying an application filed pursuant to subsection 1 within 135 days after receipt of the application.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R187-05, 12-29-2005; R006-09, 10-27-2009; R143-13 & R021-14, 10-24-2014)

      NAC 704.6804615  Designation as eligible telecommunications carrier: Provision of Lifeline services to qualifying low-income subscribers. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  A provider of telecommunication service who seeks designation as an eligible telecommunications carrier pursuant to NAC 704.680461 for the sole purpose of providing Lifeline services to qualifying low-income subscribers:

     (a) May satisfy the requirements of paragraph (b) of subsection 1 of NAC 704.680461 if the Commission determines that the provider of telecommunication service is using a component of the telecommunications network of the provider to transmit or route eligible voice telephony services to qualifying low-income subscribers in this State.

     (b) That does not provide telecommunication service using its own facilities must affirm in its application filed with the Commission pursuant to NAC 704.680461 that the provider of telecommunication service:

          (1) Provides to its qualifying low-income subscribers access to emergency 911 service and enhanced 911 service, regardless of activation status and availability of minutes;

          (2) Provides to its qualifying low-income subscribers handsets which are capable of providing access to enhanced 911 service and replaces at no additional charge any handset which is not capable of providing access to enhanced 911 service; and

          (3) Has a plan for compliance which has been approved by the Wireline Competition Bureau of the Federal Communications Commission.

     2.  The Commission will not designate a provider of telecommunication service as an eligible telecommunications carrier unless the provider of telecommunication service has demonstrated that the provider:

     (a) Is financially and technically capable of providing Lifeline service in compliance with 47 C.F.R. Part 54, Subpart E; and

     (b) Meets all the requirements for designation set forth in 47 C.F.R. § 54.202.

     3.  Upon designation by the Commission as an eligible telecommunications carrier, the eligible telecommunications carrier shall file with the Fund Administrator information demonstrating that the eligible telecommunications carrier’s Lifeline plan meets the criteria set forth in 47 C.F.R. § 54.401 and describing the terms and conditions of any voice telephony service plans offered to qualifying low-income subscribers, including, without limitation, details concerning the number of minutes provided as part of the plan, additional charges, if any, for toll calls, and the rates for each plan. To the extent that the eligible telecommunications carrier offers plans to qualifying low-income subscribers that are generally available to the public, the eligible telecommunications carrier may provide summary information regarding such plans, including providing such information through a link to a public Internet website which outlines the terms and conditions of such plans.

     (Added to NAC by Pub. Utilities Comm’n by R143-13, eff. 10-24-2014)

      NAC 704.680463  Designation as eligible telecommunications carrier: Establishment of service areas. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  The Commission will establish service areas to determine the area for which a provider of telecommunication service that seeks designation as an eligible telecommunications carrier:

     (a) Must provide eligible voice telephony services; and

     (b) Is eligible to receive federal universal service support.

     2.  A rural service area established by the Commission pursuant to subsection 1 must be identical to the study area of a provider of telecommunication service within a rural area.

     3.  In an area served by a nonrural provider of telecommunication service, any person may request and the Commission may establish a service area that is different from the area designated in the provider’s certificate of public convenience and necessity.

     4.  In determining whether to establish a service area, the Commission will consider:

     (a) Whether the establishment of the service area will promote competition;

     (b) Whether the establishment of the service area will promote universal service;

     (c) The potential effect that establishment of the service area may have on the fund to maintain the availability of telephone service; and

     (d) Any other factor that the Commission determines to be relevant.

     5.  In an area served by a rural provider of telecommunication service, a person may not request that the Commission establish a service area that does not comply with the provision of subsection 2 unless:

     (a) The provider of telecommunication service who seeks designation as an eligible telecommunications carrier:

          (1) Requests that the Commission redefine the service area of the provider; and

          (2) Otherwise intends to comply with the requirements of 47 C.F.R. § 54.207; or

     (b) The Federal Communications Commission and the Public Utilities Commission of Nevada, after taking into account the recommended decision of a Federal-State Joint Board pursuant to 47 U.S.C. § 410(c), establish a different definition of “service area” for rural providers of telecommunication service.

     6.  As used in this section:

     (a) “Nonrural provider of telecommunication service” means a provider of last resort that does not meet the definition of a rural telephone company, as that term is defined in 47 C.F.R. § 51.5.

     (b) “Rural provider of telecommunication service” means a provider of last resort that meets the definition of a rural telephone company, as that term is defined by 47 C.F.R. § 51.5.

     (c) “Study area” means a geographic area defined by the Federal Communications Commission for each provider of last resort.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R009-98, 4-17-98; R136-07, 1-30-2008; R006-09, 10-27-2009; R143-13, 10-24-2014)

      NAC 704.680464  Designation as eligible telecommunications carrier: Eligibility to receive certain reimbursements. (NRS 703.025, 704.040, 704.210, 704.6873)  A provider of telecommunication service who is designated as an eligible telecommunications carrier is eligible to receive:

     1.  Federal universal service support pursuant to 47 C.F.R. § 54.201(a); and

     2.  Money from the fund to maintain the availability of telephone service for the purposes set forth in NAC 704.68043 and in accordance with the conditions set forth in NAC 704.68046.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R006-09, 10-27-2009)

      NAC 704.680465  Designation as eligible telecommunications carrier: Affirmation to be filed with annual report. (NRS 703.025, 704.040, 704.210, 704.6873)  A provider of telecommunication service who is designated as an eligible telecommunications carrier shall submit with the annual report required pursuant to NAC 704.7483 an affirmation that the provider has met the requirements set forth in NAC 704.680461 during the year for which the report is submitted.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R058-17, 12-19-2017)

      NAC 704.680466  Designation as eligible telecommunications carrier: Application for relinquishment in certain service areas. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  A provider of telecommunication service who is designated as an eligible telecommunications carrier may file with the Commission an application to relinquish that designation in any service area that is served by more than one eligible telecommunications carrier.

     2.  The Commission will approve an application filed pursuant to subsection 1 only if it determines that other eligible telecommunications carriers serving that service area are capable of and will provide continuous service to customers served by the applicant.

     3.  The Commission will issue an order approving or denying an application filed pursuant to subsection 1 within 90 days after receipt of the application.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97)

      NAC 704.680467  Designation as eligible telecommunications carrier: Revocation. (NRS 703.025, 704.040, 704.210, 704.6873)  The Commission may, upon its own motion or upon receipt of a complaint filed by any person, revoke the designation of a provider of telecommunication service as an eligible telecommunications carrier if the Commission determines, after investigation and a hearing, that the provider of telecommunication service has failed to meet the requirements set forth in NAC 704.680461 or 47 C.F.R. Part 54.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R143-13, 10-24-2014)

      NAC 704.680468  Application from eligible school or library for discounted rates for intrastate telecommunication service. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  An eligible school or library that wishes to receive discounts in the rates for intrastate telecommunication service must, in accordance with the procedures and requirements set forth in 47 C.F.R. § 54.504, apply for such discounts to the entity designated by the Federal Communications Commission. An eligible school or library must renew its request for discounted rates each year in accordance with the annual filing requirements set forth in 47 C.F.R. § 54.507(d).

     2.  An eligible school or library that applies for discounted rates pursuant to subsection 1 must, within 15 days after submitting the application to the entity designated by the Federal Communications Commission, file a copy of the application with the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97)

      NAC 704.680469  Conditions for provision of discounted rates for eligible school or library. (NRS 703.025, 704.040, 704.210, 704.6873)  A provider of telecommunication service who provides intrastate telecommunication service to an eligible school or library shall provide such service at discounted rates:

     1.  In accordance with the procedures and by the percentages set forth in 47 C.F.R. § 54.505; and

     2.  To the extent that federal universal service support or money from the fund to maintain the availability of telephone service is available to reimburse the amount of the discount.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R006-09, 10-27-2009)

      NAC 704.68047  Application for disbursement from fund to provider of discounted rates for eligible school or library. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  A provider of telecommunication service that provides intrastate telecommunication service to an eligible school or library at a discounted rate may file an application with the Commission requesting a disbursement of money from the fund to maintain the availability of telephone service for the amount of the discount if:

     (a) The eligible school or library has met the requirements set forth in NAC 704.680468; and

     (b) Federal universal service support is not available to pay the entire amount of the discount.

     2.  The application filed pursuant to subsection 1 must include:

     (a) The identity of each school and library to which discounts in the rates for intrastate services will be provided;

     (b) A detailed description of each service that will be provided to each school and library, including, without limitation, references to intrastate tariffs on file at the Commission, if applicable;

     (c) The nondiscounted rate for each service that will be provided;

     (d) The percentage of discount that is applicable to each service;

     (e) The difference between:

          (1) The annual revenues that would be generated if the provider of telecommunication service provided the intrastate services to the schools and libraries at nondiscounted rates; and

          (2) The annual revenues that will be generated at the discounted rates;

     (f) Information which demonstrates that the nondiscounted rate is the lowest corresponding price charged by the provider of telecommunication service to nonresidential customers who are situated similarly to a particular school or library for similar services; and

     (g) Information which demonstrates that federal universal service support is not available for the calendar year to reimburse the amount of the discount in the rate for intrastate services.

     3.  The Commission will issue an order approving, denying or modifying an application filed pursuant to this section within 90 days after receipt of the application.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R009-98, 4-17-98; R006-09, 10-27-2009)

      NAC 704.680471  Application from provider of health care for discounted rates or discounted service. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  A provider of health care that wishes to receive:

     (a) The urban rate for an eligible telecommunications service, as determined pursuant to 47 C.F.R. § 54.605; or

     (b) Access to an Internet service provider,

Ê must, in accordance with the procedures and requirements set forth in 47 C.F.R. § 54.615, file an application for such discounted service with the entity designated by the Federal Communications Commission. A provider of health care must renew its application for discounted rates each year in accordance with the annual filing requirements set forth in 47 C.F.R. § 54.623(d).

     2.  A provider of health care that applies for discounted rates pursuant to subsection 1 must, within 15 days after filing the application with the entity designated by the Federal Communications Commission, file a copy of the application with the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97)

      NAC 704.680472  Conditions for provision of discounted rates or discounted service for public or private nonprofit provider of health care serving persons in rural area. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  An eligible telecommunications carrier who provides telecommunication service to a public or private nonprofit provider of health care that serves persons in a rural area shall, to the extent that federal universal service support or money from the fund to maintain the availability of telephone service is available, charge that provider of health care rates for available intrastate eligible telecommunications services that are no higher than the urban rates for such services, as determined pursuant to 47 C.F.R. § 54.605.

     2.  A provider of telecommunication service who provides access to an Internet service provider to a public or private nonprofit provider of health care that serves persons in a rural area, shall provide credits for toll charges associated with such access.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R009-98, 4-17-98; R006-09, 10-27-2009; R143-13, 10-24-2014)

      NAC 704.680473  Application for disbursement from fund to provider of discounted rates or discounted service for provider of health care. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  A provider of telecommunication service who is designated as an eligible telecommunications carrier and who provides intrastate eligible telecommunications services to a provider of health care pursuant to NAC 704.680472 may file an application with the Commission requesting a disbursement of money from the fund to maintain the availability of telephone service for an amount equal to the difference between the urban rate and the rural rate for those services, as those rates are determined pursuant to 47 C.F.R. §§ 54.605 and 54.607.

     2.  Any telecommunications carrier who offers to a provider of health care intrastate access to an Internet service provider may file an application with the Commission requesting a disbursement of money from the fund to maintain the availability of telephone service for the costs of the toll charges for such access.

     3.  A disbursement of money from the fund to maintain the availability of telephone service will be made for the purposes set forth in subsections 1 and 2 only if:

     (a) The provider of health care to whom the telecommunications carrier provides the discounted service meets the requirements set forth in NAC 704.680471; and

     (b) Federal universal service support is not available to pay the entire amount of the discount or costs of the toll charges.

     4.  An application filed pursuant to this section must include:

     (a) The identity of each provider of health care to which discounted intrastate services will be provided at a discounted rate;

     (b) A detailed description of each service that will be provided to each provider of health care, including, without limitation, references to intrastate tariffs on file at the Commission, if applicable;

     (c) The rural rate for each service that will be provided, as determined pursuant to 47 C.F.R. § 54.607;

     (d) The urban rate for each service that will be provided, as determined pursuant to 47 C.F.R. § 54.605;

     (e) The difference between the annual revenues that would be generated if the provider provided the intrastate services to the provider of health care at the rural rate and the annual revenues that will be generated at the urban rate;

     (f) The amount of money requested to support access to an Internet service provider; and

     (g) Information which demonstrates that federal universal service support is unavailable for the calendar year to pay the amount of the discount or the costs of the toll charges.

     5.  The Commission will issue an order approving, denying or modifying an application filed pursuant to this section within 90 days after receipt of the application.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R009-98, 4-17-98; R006-09, 10-27-2009)

      NAC 704.680474  Criteria for eligibility as qualifying low-income subscriber; documentation of qualification; duties of eligibility responsibility party; determination of eligibility and enrollment of subscriber if National Lifeline Eligibility Verifier is implemented in this State. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  To be eligible as a qualifying low-income subscriber for the purposes of NAC 704.680475 and 704.680477, a prospective subscriber must not currently be receiving Lifeline service, there must not be any other person in the prospective subscriber’s household who is currently receiving Lifeline service and:

     (a) The total household gross income, as described in 47 C.F.R. § 54.400(f), of the prospective subscriber must not exceed 135 percent of the federally established poverty levels set forth for the number of persons in the household of that prospective subscriber; or

     (b) The prospective subscriber, one or more of the prospective subscriber’s dependents or the prospective subscriber’s household must receive benefits from one or more of the following programs of assistance:

          (1) Medicaid;

          (2) The Supplemental Nutrition Assistance program;

          (3) The Supplemental Security Income Program;

          (4) Federal public housing assistance;

          (5) Veterans and Survivors Pension Benefit;

          (6) Bureau of Indian Affairs general assistance;

          (7) Tribally administered Temporary Assistance for Needy Families;

          (8) Head Start; or

          (9) The Food Distribution Program on Indian Reservations.

     2.  For the purposes of subsection 1, there may be more than one household at a single physical address, but a prospective subscriber must affirmatively certify that any other person who receives Lifeline service at the same physical address is not a member of the prospective subscriber’s household.

     3.  To demonstrate that he or she meets the income-eligibility requirements set forth in paragraph (a) of subsection 1, the prospective subscriber must submit to the eligibility responsibility party, and the eligibility responsibility party must review, documentation which demonstrates that the prospective subscriber meets the income-eligibility requirements set forth in that paragraph. Such documentation must, at a minimum, cover any period of 3 consecutive months during the 12-month period immediately preceding the date of application, and may include, without limitation:

     (a) State or federal income or tribal tax returns from the year immediately preceding the date of application;

     (b) Current income statements from an employer or paycheck stubs;

     (c) A statement of benefits from the Social Security Administration;

     (d) A statement of benefits from the United States Department of Veterans Affairs;

     (e) A statement of benefits from a pension or benefit program;

     (f) A statement of benefits from an unemployment or workers’ compensation program;

     (g) A notice letter of participation in federal or tribal general assistance;

     (h) A divorce decree or child support award; or

     (i) Any other documentation which contains income information.

     4.  To demonstrate compliance with the requirements set forth in paragraph (b) of subsection 1, the prospective subscriber must submit to the eligibility responsibility party, and the eligibility responsibility party must review, documentation which proves that the prospective subscriber meets the relevant program-based eligibility requirements for Lifeline service. Such documentation may include, without limitation:

     (a) A statement of benefits from the relevant program of assistance for the year in which the prospective subscriber is applying for Lifeline service or for the year immediately preceding the date of application;

     (b) A notice or letter of participation from the relevant program of assistance; or

     (c) Any other official documentation which demonstrates that the prospective subscriber, one or more of the prospective subscriber’s dependents or the prospective subscriber’s household is receiving benefits from the relevant program of assistance.

     5.  Unless the National Lifeline Eligibility Verifier has been implemented in this State, before an eligible telecommunications carrier may enroll the prospective subscriber in Lifeline service, the eligibility responsibility party shall:

     (a) Collect from the prospective subscriber the certification documentation required by 47 C.F.R. § 54.410(d);

     (b) Review the information submitted to the eligibility responsibility party pursuant to subsection 3 or 4, as applicable;

     (c) Query the National Lifeline Accountability Database to ensure that the subscriber is not already receiving Lifeline service; and

     (d) Provide to each eligible telecommunications carrier copies of the certifications.

     6.  The eligibility responsibility party shall retain copies of the documentation concerning the subscriber’s income-based or program-based eligibility for Lifeline service only in accordance with the provisions of this section.

     7.  The eligibility responsibility party shall, consistent with the provisions of 47 C.F.R. §§ 54.410 and 54.417, keep and maintain accurate records concerning:

     (a) The source from which the eligibility responsibility party obtained the information used to determine the subscriber’s income-based or program-based eligibility for Lifeline service; and

     (b) The documentation provided by the subscriber to the eligibility responsibility party to demonstrate the subscriber’s eligibility for Lifeline service.

     8.  On and after the date that the National Lifeline Eligibility Verifier is implemented in this State, eligibility must be determined by the National Lifeline Eligibility Verifier in accordance with 47 C.F.R. §§ 54.409 and 54.410.

     9.  If the National Lifeline Eligibility Verifier is implemented in this State, an eligible telecommunications carrier may only enroll a subscriber who is identified as eligible in the National Lifeline Eligibility Database and the National Lifeline Accountability Database.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R051-05, 9-7-2005; R006-09, 10-27-2009; R143-13 & R021-14, 10-24-2014; R059-17, 12-19-2017; R147-17, 8-30-2018)

      NAC 704.6804742  Maintenance and provision of lists by Department of Health and Human Services of persons eligible to receive benefits from certain federal programs; exception. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  If the Department of Health and Human Services maintains a list of persons who are eligible to receive benefits from one or more of the following programs of assistance:

     (a) Medicaid;

     (b) The Supplemental Nutrition Assistance program;

     (c) The Supplemental Security Income Program;

     (d) Federal public housing assistance;

     (e) Veterans and Survivors Pension benefit;

     (f) Bureau of Indian Affairs general assistance;

     (g) Tribally administered Temporary Assistance for Needy Families;

     (h) Head Start; or

     (i) The Food Distribution Program on Indian Reservations,

Ê the Department may, consistent with the provisions of NRS 707.485, provide to the eligibility responsibility party a list of such persons for the exclusive purpose of determining or verifying the status of a qualifying low-income subscriber.

     2.  If the Department of Health and Human Services determines that it cannot gain access to or distribute any information described in subsection 1, the Department may submit to the Commission an informational filing explaining the Department’s determination, which may include, without limitation, any information and citation to any relevant law or regulation that supports the Department’s determination that it cannot gain access to or distribute the information described in subsection 1.

     (Added to NAC by Pub. Utilities Comm’n by R143-13, eff. 10-24-2014; A by R059-17, 12-19-2017)

      NAC 704.6804743  Recertification of continued eligibility as qualifying low-income subscriber. (NRS 703.025, 704.040, 704.210, 704.6873)  The eligibility responsibility party shall, in the manner prescribed in 47 C.F.R. §§ 54.410(f) and 54.410(g), recertify that each subscriber of the eligible telecommunications carrier who receives Lifeline service remains eligible to receive that service. The eligibility responsibility party shall, for each subscriber for whom an eligible telecommunications carrier is the current carrier of record, provide to the eligible telecommunications carrier copies of the recertifications and any other information necessary for the eligible telecommunications carrier to comply with 47 C.F.R. § 54.416. The eligibility responsibility party shall provide such information to the eligible telecommunications carrier at least 30 days before the date of the annual filings required by federal law, including the filing of FCC Form 555.

     (Added to NAC by Pub. Utilities Comm’n by R051-05, eff. 9-7-2005; A by R006-09, 10-27-2009; R143-13 & R021-14, 10-24-2014; R147-17, 8-30-2018)

      NAC 704.6804745  Certification of compliance with procedures for Lifeline and Tribal Link Up programs. (NRS 703.025, 704.040, 704.210, 704.6873)  An officer or other authorized representative of an eligible telecommunications carrier shall certify that the eligible telecommunications carrier is in compliance with the procedures for the Lifeline and Tribal Link Up programs in this State or that the eligible telecommunications carrier has relied upon the Eligibility Administrator to certify eligibility for all new subscribers for the Lifeline and Tribal Link Up programs in this State and shall make and submit to the Commission, under penalty of perjury, the annual certifications required by 47 C.F.R. § 54.416.

     (Added to NAC by Pub. Utilities Comm’n by R051-05, eff. 9-7-2005; A by R006-09, 10-27-2009; R143-13 & R021-14, 10-24-2014)

      NAC 704.680475  Offering of Lifeline and Tribal Link Up services by eligible telecommunications carrier. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  An eligible telecommunications carrier shall offer to subscribers within its service area the following services:

     (a) Lifeline; and

     (b) Tribal Link Up.

     2.  In offering Lifeline service pursuant to subsection 1, an eligible telecommunications carrier shall offer to qualifying low-income subscribers such Lifeline discounts as are necessary to enable the carrier to comply fully with the directives of the Federal Communications Commission, including, without limitation, 47 C.F.R. § 54.403.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R009-98, 4-17-98; R241-03, 8-2-2004; R051-05, 9-7-2005; R143-13 & R021-14, 10-24-2014)

      NAC 704.6804755  Offering of toll limitation service by eligible telecommunications carrier. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  An eligible telecommunications carrier is not required to offer toll limitation service if the Lifeline service offered by the eligible telecommunications carrier does not distinguish between toll and non-toll calls in the pricing of service.

     2.  If an eligible telecommunications carrier charges a fee for toll calls that is in addition to the per-month or per-billing cycle price of the Lifeline services provided to a qualifying low-income subscriber, the eligible telecommunications carrier shall offer toll limitation service at no charge to the qualifying low-income subscriber.

     (Added to NAC by Pub. Utilities Comm’n by R143-13, eff. 10-24-2014)

      NAC 704.680476  Termination of Lifeline service; de-enrollment of subscriber; enrollment of eligible subscriber with unpaid toll charges into Lifeline or Tribal Link Up program; waiver of requirements; notice to Eligibility Administrator; effect of inconsistent eligibility determinations. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  If an eligible telecommunications carrier has a reasonable basis to believe that a subscriber of Lifeline service no longer meets the criteria to be considered a qualifying low-income subscriber, the carrier shall provide to the subscriber, and the eligibility responsibility party, if applicable, written notice of impending termination of the Lifeline service. The notice must be written in easily understood language and delivered to the subscriber separate from the subscriber’s bill, if one is provided. The eligible telecommunications carrier shall terminate the Lifeline service provided to the subscriber if the subscriber does not provide proof of continued eligibility to receive Lifeline service in a manner consistent with the provisions of 47 C.F.R. § 54.405(e)(1).

     2.  If the Universal Service Administrative Company provides notice to an eligible telecommunications carrier that a subscriber is receiving Lifeline service from another eligible telecommunications carrier or that more than one member of the subscriber’s household is receiving Lifeline service, the carrier must de-enroll the subscriber from participation in the carrier’s Lifeline program within 5 business days after receiving such notice from the Universal Service Administrative Company. The eligible telecommunications carrier is not eligible for reimbursement for Lifeline service provided to a de-enrolled subscriber after the date on which the subscriber is de-enrolled.

     3.  If a subscriber of Lifeline service does not use a Lifeline service that does not require an eligible telecommunications carrier to assess or collect a monthly fee from its qualifying low-income subscribers for the period of time specified in 47 C.F.R. § 54.405(e)(3), the carrier must provide to the subscriber written notice regarding the potential termination of the Lifeline service pursuant to 47 C.F.R. § 54.405(e)(3). A carrier shall not terminate Lifeline service for non-usage, as described in 47 C.F.R. § 54.405(e)(3), unless the requirements set forth in 47 C.F.R. § 54.405(e)(3) are met. As used in this subsection, “use” has the meaning ascribed to the term “usage” in 47 C.F.R. § 54.407(c)(2).

     4.  If an eligible telecommunications carrier receives a request from a subscriber to de-enroll, the eligible telecommunications carrier must de-enroll the subscriber pursuant to 47 C.F.R. § 54.405(e)(5).

     5.  Any recertification request made by the eligibility responsibility party to a subscriber of Lifeline service must comply with the provisions of 47 C.F.R. §§ 54.405(e)(4) and 54.410(f).

     6.  Except as otherwise provided in subsection 8, an eligible telecommunications carrier shall not disconnect service provided pursuant to a Lifeline program solely on the basis that the subscriber fails to pay charges for toll calls.

     7.  An eligible telecommunications carrier shall enroll a subscriber who is eligible for the Lifeline program or the Tribal Link Up program, or both, but who has outstanding unpaid toll charges if the subscriber agrees to toll blocking service and sets up a payment arrangement with the carrier for the payment of the unpaid toll charges. To reestablish toll service, the subscriber must pay the outstanding toll charges in full.

     8.  An eligible telecommunications carrier may file with the Commission an application for a waiver from the requirements of subsections 6 and 7.

     9.  The Commission will approve an application for such a waiver only upon determining after investigation that the eligible telecommunications carrier:

     (a) Would incur substantial costs to comply with the provisions of subsections 6 and 7;

     (b) Offers, at no charge, toll limitation service to its consumers that qualify as low-income subscribers; and

     (c) Provides service within a service area in which the level of telephone subscription among low-income subscribers is equal to or greater than the national average rate of subscription for low-income subscribers.

     10.  The Commission will approve or deny an application that is filed pursuant to subsection 8 within 30 days after receipt of the application.

     11.  An eligible telecommunications carrier shall provide notice to the Eligibility Administrator within 5 business days after the date on which the eligible telecommunications carrier terminates the Lifeline service of a customer or the date on which the eligible telecommunications carrier receives from the Universal Service Administrative Company or the National Lifeline Accountability Database an eligibility determination that is inconsistent with the eligibility determination made by the Eligibility Administrator. The eligible telecommunications carrier is not required to include in the notice the reason for the termination unless Lifeline service has been terminated as a result of information provided to the eligible telecommunications carrier by the Universal Service Administrative Company or the National Lifeline Accountability Database.

     12.  If there is an inconsistency between the eligibility determination made by the Eligibility Administrator and the eligibility determination made by the Universal Service Administrative Company or the National Lifeline Accountability Database, the eligibility determination made by the Universal Service Administrative Company or the National Lifeline Accountability Database controls.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R009-98, 4-17-98; R051-05, 9-7-2005; R143-13 & R021-14, 10-24-2014; R059-17, 12-19-2017)

      NAC 704.680477  Charging of service deposit for initiation of Lifeline service. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  Except as otherwise provided in subsection 2, an eligible telecommunications carrier shall not charge a service deposit to initiate service provided pursuant to a Lifeline program if the qualifying low-income subscriber elects voluntarily to receive toll blocking service from the carrier.

     2.  An eligible telecommunications carrier may charge a service deposit to initiate service provided pursuant to a Lifeline program if the qualifying low-income subscriber does not elect voluntarily to receive toll blocking service or if toll blocking service is unavailable.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R009-98, 4-17-98; R051-05, 9-7-2005; R143-13, 10-24-2014)

      NAC 704.680478  Request for disbursement from fund to eligible telecommunications carrier for reimbursement of costs of providing discount in rate for Lifeline service. (NRS 703.025, 704.040, 704.210, 704.6873, 707.490)

     1.  A provider of telecommunication service who is designated as an eligible telecommunications carrier may file directly with the Fund Administrator a request for a disbursement of money from the fund to maintain the availability of telephone service for reimbursement of the costs of providing a discount in the rate for Lifeline service pursuant to NAC 704.680475. The amount of reimbursement requested per line per month must not exceed $3.50 or the difference between the amount of the Lifeline discount offered by the provider pursuant to NAC 704.680475 and the amount of federal universal service support available for the discount pursuant to 47 C.F.R. § 54.403(a), whichever is less.

     2.  An eligible telecommunications carrier may seek reimbursement from the fund to maintain the availability of telephone service for only $3.50 per line per month or the portion of the discount in the rate for Lifeline service for which federal universal service support is not available, whichever is less.

     3.  Not later than 180 days before the beginning of the first period for which the eligible telecommunications carrier may seek reimbursement pursuant to this section, an eligible telecommunications carrier shall submit directly to the Fund Administrator a report which provides:

     (a) An estimate of the amount of the reimbursement the eligible telecommunications carrier expects to request for the forecasted calendar year;

     (b) The expected number of subscribers to the Lifeline service of the eligible telecommunications carrier for each month of the forecasted calendar year; and

     (c) The amount of the Lifeline discount per line per month.

     4.  An eligible telecommunications carrier must file directly with the Fund Administrator, not later than 30 days after the close of each calendar quarter, a request for a disbursement from the fund to maintain the availability of telephone service in the amount of $3.50 per line per month or the difference between the total amount of the Lifeline discount provided by the eligible telecommunications carrier and the total amount of federal universal service support available to the eligible telecommunications carrier pursuant to 47 C.F.R. § 54.403(a), whichever is less. The request must include a statement of:

     (a) The average number of subscribers to the Lifeline service provided by the eligible telecommunications carrier in each full month of the quarter;

     (b) The amount of the Lifeline discount per line per month; and

     (c) The amount of the reimbursement per line per month that the eligible telecommunications carrier will seek beginning with the quarter following the quarter for which the request was filed.

     5.  An eligible telecommunications carrier may not seek reimbursement from the fund to maintain the availability of telephone service for a Lifeline discount if the customer who subscribes to Lifeline service and who is not an eligible resident of tribal lands is charged a rate of less than $3.50 per line per month for basic network service or basic network service provided by an alternative voice service pursuant to NRS 704.68881.

     6.  The Fund Administrator shall disburse quarterly to eligible telecommunications carriers that satisfy the requirements of this section the reimbursement from the fund to maintain the availability of telephone service for the cost of providing a Lifeline discount. The reimbursement to each eligible telecommunications carrier must not exceed $3.50 per line per month.

     7.  This section applies only to the request of an eligible telecommunications carrier for a disbursement of money from the fund to maintain the availability of telephone service to reimburse the eligible telecommunications carrier for the cost of providing a Lifeline discount.

     8.  As used in this section, “eligible resident of tribal lands” has the meaning ascribed to it in 47 C.F.R. § 54.400.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97; A by R009-98, 4-17-98; R006-09, 10-27-2009; R087-09, 1-28-2010; R021-14, 10-24-2014)

      NAC 704.680479  Information to be filed with administrator of federal universal service support by eligible telecommunications carrier. (NRS 703.025, 704.040, 704.210, 704.6873)  An eligible telecommunications carrier shall file with the person designated by the Federal Communications Commission as the administrator of federal universal service support, information that:

     1.  Demonstrates that the plan of the carrier for providing Lifeline service meets the criteria set forth in 47 C.F.R. §§ 54.400 to 54.409, inclusive; and

     2.  States the number of qualifying low-income subscribers served by the carrier and the amount of state assistance that the carrier receives for providing discounted service to those subscribers.

     (Added to NAC by Pub. Utilities Comm’n by R150-97, eff. 12-11-97)

      NAC 704.68048  Small-scale provider of last resort: Qualification for disbursement from fund; request for money from fund; disputes regarding qualification; audit. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  To qualify for money from the fund to maintain the availability of telephone service to keep basic service rates at an affordable level pursuant to subsections 1 and 2 of NAC 704.68043, a small-scale provider of last resort must meet the following requirements:

     (a) Its rates for interstate and intrastate switched access must be in parity, or the small-scale provider of last resort must agree to carry out a plan approved by the Commission designed to achieve parity for those rates within the time specified by the Commission.

     (b) Its monthly basic recurring flat rates for residential and business basic service must be reasonably comparable, as determined pursuant to subsection 3, to rates charged for similar services in urban areas. A small-scale provider of last resort may file to change its rates in accordance with paragraph (g) of subsection 1 of NRS 704.100 with the Commission by July 1 of the same year for which the rates apply.

     2.  To receive money from the fund to maintain the availability of telephone service for rural, insular and high-cost areas pursuant to subsection 3 of NAC 704.68043, a small-scale provider of last resort:

     (a) Must make a request for money from the fund to maintain the availability of telephone service for rural, insular and high-cost areas pursuant to subsection 3 of NAC 704.68043 as part of a general rate application filed pursuant to NRS 704.110;

     (b) Except as otherwise provided in NAC 704.680482, if a request for money from the fund to maintain the availability of telephone service made pursuant to paragraph (a) or (c) is approved pursuant to NAC 704.680481, will receive the annual amount of money approved and determined by the Commission pursuant to NAC 704.680481 for 5 years, subject to the provisions of NAC 704.68056; and

     (c) After the 5 years referenced in paragraph (b), except as otherwise provided in NAC 704.680482, must make a request for money from the fund to maintain the availability of telephone service for rural, insular and high-cost areas pursuant to subsection 3 of NAC 704.68043 as a part of a general rate application filed pursuant to NRS 704.110.

     3.  For the purposes of paragraph (b) of subsection 1, the Commission will determine that a rate is reasonably comparable if the rate was established by the Commission in the most recent general rate case of the small-scale provider of last resort, or the rate is equal to or higher than the rate floor for residential basic service established by the Federal Communications Commission. If the rates of a small-scale provider of last resort do not equal or exceed the rate floor for the residential basic service established by the Federal Communications Commission, the Commission will reduce the annual amount of money received by the small-scale provider of last resort from the fund to maintain the availability of telephone service for which the small-scale provider of last resort would otherwise be authorized to receive by the difference between that amount and the amount of revenue the small-scale provider of last resort would receive if its rates were equal to or exceed the rate floor for the residential basic service established by the Federal Communications Commission.

     4.  Any disputes regarding the qualification of a small-scale provider of last resort to receive money from the fund to maintain the availability of telephone service will be resolved by the Commission at the request of the Fund Administrator or of any other interested party.

     5.  A small-scale provider of last resort of basic service has the burden of demonstrating that circumstances exist which justify its eligibility to receive money from the fund to maintain the availability of telephone service.

     6.  A request for money from the fund to maintain the availability of telephone service is subject to audit by the Commission and its staff.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008; R006-09, 10-27-2009; R021-14, 10-24-2014; R058-17, 12-19-2017)

      NAC 704.680481  Small-scale provider of last resort: Determination of qualification for and amount of annual disbursement from fund. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  Upon receiving a request from a small-scale provider of last resort for money from the fund to maintain the availability of telephone service pursuant to paragraph (a) or (c) of subsection 2 of NAC 704.68048, the Commission will determine if the small-scale provider of last resort is qualified to receive money from the fund to maintain the availability of telephone service for rural, insular and high-cost areas pursuant to subsection 3 of NAC 704.68043.

     2.  If the Commission determines, based upon the request specified in subsection 1, that the small-scale provider of last resort is qualified, the Commission will:

     (a) Approve the request for money from the fund to maintain the availability of telephone service received from a small-scale provider of last resort made pursuant to paragraph (a) or (c) of subsection 2 of NAC 704.68048; and

     (b) Pursuant to subsection 3, determine the annual amount of money the small-scale provider of last resort will receive from the fund to maintain the availability of telephone service.

     3.  In determining the annual amount of money the small-scale provider of last resort will receive pursuant to paragraph (b) of subsection 2, the Commission will not include any amount of money from the fund to maintain the availability of telephone service to compensate a small-scale provider of last resort for any reduction in federal universal service support resulting from a failure of the small-scale provider of last resort to meet any build-out requirements pursuant to the rules and regulations of the Federal Communications Commission.

     (Added to NAC by Pub. Utilities Comm’n by R058-17, eff. 12-19-2017)

      NAC 704.680482  Small-scale provider of last resort: Petition for waiver from requirement to file new request for money from fund after 5 years. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  A small-scale provider of last resort that receives money from the fund to maintain the availability of telephone service pursuant to paragraph (b) of subsection 2 of NAC 704.68048 may file with the Commission a petition for a waiver of not more than 2 years from the requirement to file a new request pursuant to paragraph (c) of subsection 2 of NAC 704.68048.

 

     2.  The Commission may grant the petition for a waiver filed pursuant to subsection 1 if:

     (a) The small-scale provider of last resort meets the requirements in subsection 3; and

     (b) The Commission determines, upon receiving the information set forth in subsection 4, that the small-scale provider of last resort is not collecting excess earnings.

     3.  The small-scale provider of last resort must provide information which demonstrates that the:

     (a) Petition for a waiver filed pursuant to subsection 1 is in the public interest; and

     (b) Earnings of the small-scale provider of last resort, as calculated pursuant to subsection 1 of NAC 704.68056, do not exceed the rate of return, as calculated by using the return on common equity as determined in NAC 703.27138, authorized for the small-scale provider of last resort by the Commission.

     4.  For the purposes of the Commission determining if the small-scale provider of last resort is collecting excess earnings, the small-scale provider of last resort must include in its petition for a waiver filed pursuant to subsection 1 the following information:

     (a) The annual operating revenue, annual operating expenses and rate base of the small-scale provider of last resort, as provided in the most recent revenue report filed by the small-scale provider of last resort with the Commission pursuant to NRS 704.035.

     (b) Any adjustments made by the Commission in the most recent general rate case of the small-scale provider of last resort.

     (c) The rate of return, as calculated by using the return on common equity as determined in NAC 703.27138, on the rate base of the small-scale provider of last resort.

     (d) The amount of federal universal service support received by the small-scale provider of last resort for intrastate telecommunication services through the Connect America Cost Model, as governed by 47 C.F.R. § 54.311, or the most recent estimated amount of federal universal service support received by the small-scale provider of last resort for the current year for intrastate telecommunication services through High Cost Loop Support, as governed by 47 C.F.R. §§ 54.1301 to 54.1310, inclusive. Commencing with requests for money from the fund to maintain the availability of telephone service for calendar year 2018 and until the next general rate case of a small-scale provider of last resort, the Commission will determine the amount of federal universal service support received by a small-scale provider of last resort for intrastate telecommunication services through the Connect America Cost Model by multiplying the total amount of support received by the small-scale provider of last resort through the Connect America Cost Model by the ratio of High Cost Loop Support to the combined total of High Cost Loop Support and Interstate Common Line Support, as defined in 47 C.F.R. § 69.2, that were used to compute the amount of disbursement for calendar year 2016 for rural, insular and high-cost areas pursuant to subsection 3 of NAC 704.68043.

     (Added to NAC by Pub. Utilities Comm’n by R058-17, eff. 12-19-2017)

      NAC 704.680483  Small-scale provider of last resort: Requirements for adjustment application in amount of disbursement from fund. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  A small-scale provider of last resort must include in the adjustment application filed pursuant to paragraph (b) of subsection 2 of NAC 704.68056:

     (a) The most recent estimated amount of High Cost Loop Support, as governed by 47 C.F.R. §§ 54.1301 to 54.1310, inclusive, for rural, insular and high-cost areas the small-scale provider of last resort expects to receive for the upcoming calendar year; and

     (b) Financial data that supports the revenue requirement approved by the Commission in the most recent general rate case for the small-scale provider of last resort, or in the disbursement application of the small-scale provider of last resort approved by the Commission for calendar year 2016 funding, whichever is most current.

     2.  The staff of the Commission shall verify that the adjustment in the amount of money from the fund to maintain the availability of telephone service requested by the small-scale provider of last resort is consistent with any:

     (a) Difference between the:

          (1) Most recent estimated amount of federal intrastate High Cost Loop Support referenced in paragraph (a) of subsection 1; and

          (2) Amount projected in the most recent general rate case of the small-scale provider of last resort; and

     (b) Applicable financial adjustments ordered by the Commission in the most recent general rate case of the small-scale provider of last resort.

     3.  The staff of the Commission shall provide the verification performed pursuant to subsection 2 to the Commission within 30 days after receiving the adjustment application filed pursuant to paragraph (b) of subsection 2 of NAC 704.68056.

     (Added to NAC by Pub. Utilities Comm’n by R058-17, eff. 12-19-2017)

      NAC 704.6805  Disbursement from fund to competitive supplier that is provider of last resort. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  After the Commission has conducted proceedings pursuant to NAC 704.68051, a competitive supplier that is a provider of last resort may file a petition with the Commission to receive money from the fund to maintain the availability of telephone service to keep its rates for basic services at an affordable level. The competitive supplier has the burden of demonstrating that circumstances exist which justify its eligibility to receive money from the fund to maintain the availability of telephone service.

     2.  The Fund Administrator may distribute money from the fund to maintain the availability of telephone service for a competitive supplier that is a provider of last resort pursuant to this section only to the extent authorized by the Commission.

     3.  A competitive supplier that is a provider of last resort that receives money from the Fund Administrator for the purposes set forth in subsection 1 or 2 of NAC 704.68043 shall certify to the Commission annually that the competitive supplier has used the money from the fund to maintain availability of telephone services for the purposes set forth in NAC 704.68043 and 47 U.S.C. § 254. In the case of a monthly per-line reimbursement to recover the cost of providing service determined pursuant to subsection 2 of NAC 704.68051, the competitive supplier shall also provide to the Commission, on a form prescribed by and posted on the website of the Commission, a certification of the number of customers in high-cost areas that the competitive supplier served during each month of the reporting period established by the Commission. A corporate officer of the competitive supplier must affirm that the information submitted pursuant to this subsection is true and accurate by making a notarized attestation.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008; R006-09, 10-27-2009; R021-14, 10-24-2014)

      NAC 704.68051  Request by competitive supplier that is provider of last resort for proceedings to determine whether funding is required to ensure that rates charged do not adversely affect universal service. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  A competitive supplier that is a provider of last resort may request that the Commission initiate proceedings to determine whether funding is required to fulfill the purpose of subsection 1 of NAC 704.68043. Any person who has made a payment to the fund to maintain the availability of telephone service pursuant to an assessment imposed pursuant to NAC 704.68054 may participate in the proceedings.

     2.  During the proceedings, the Commission will:

     (a) Establish a model of costs to calculate the cost per line for the service area or other appropriate geographic area of the competitive supplier that is a provider of last resort;

     (b) Adopt the appropriate benchmark using the cost per line to determine the cost of providing service to the high-cost area; and

     (c) Determine the appropriate amount of money to provide service to the high-cost area, taking into consideration:

          (1) The cost to maintain the availability of telephone service in rural, insular and high-cost areas while providing services that are reasonably comparable to those basic services available in urban areas at rates that are reasonably comparable to those rates charged in the urban areas in which the basic services are available; and

          (2) The overall size of the fund to maintain the availability of telephone service.

     3.  On a biennial basis, the Commission will determine whether any adjustments or modifications are required to calculate the appropriate amount of money to provide service to the high-cost area, as determined pursuant to subsection 2. The Commission may conduct such a meeting annually upon its own motion or upon a request by an interested person.

     (Added to NAC by Pub. Utilities Comm’n by R006-09, eff. 10-27-2009)

      NAC 704.68054  Assessment for support of fund; quarterly remittance to Fund Administrator. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  The Commission will make an annual determination of the total amount of money required to support the fund to maintain the availability of telephone service for the next calendar year based on the recommendation of the Fund Administrator and any person given permission to intervene by the Commission. The Commission will then set the assessment based on a percentage rate on anticipated revenues from retail intrastate telecommunication service of all providers of telecommunication service required to recover this amount.

     2.  The assessment must be remitted to the Fund Administrator by a provider of telecommunication service on a quarterly basis not later than 30 days after the last day of the month in the calendar quarter.

     3.  Any shortfall or overage in the fund to maintain the availability of telephone service at the end of the calendar year must be carried forward to the following calendar year and used in establishing the rate for that year.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R150-97, 12-11-97; R187-05, 12-29-2005; R006-09, 10-27-2009; R021-14, 10-24-2014; R058-17, 12-19-2017)

      NAC 704.68056  Procedure for disbursement from fund; report of Fund Administrator regarding assessment for fund; deviation from or waiver of deadlines for filings. (NRS 703.025, 704.040, 704.210, 704.6873)

     1.  A small-scale provider of last resort that receives federal universal service support through the Connect America Cost Model, as governed by 47 C.F.R. § 54.311, must receive the annual amount of money from the fund to maintain the availability of telephone service for rural, insular and high-cost areas pursuant to subsection 3 of NAC 704.68043 that is approved and determined by the Commission upon receiving a request pursuant to NAC 704.680481, or the amount of such money indicated in the disbursement application of the small-scale provider of last resort approved by the Commission for calendar year 2018 funding, whichever is most current, for 5 years pursuant to subsection 2 of NAC 704.68048. To confirm its intent to receive the annual amount of money approved and determined by the Commission, a small-scale provider of last resort must submit a letter to the Fund Administrator and the staff of the Commission not later than June 1 of the year immediately preceding the year for which it is eligible to receive the annual amount of money approved and determined by the Commission confirming the intent of the small-scale provider of last resort to receive such money and referring to the order of the Commission approving and determining the amount of money and the length of time such amount of money is to be paid.

     2.  To receive money from the fund to maintain the availability of telephone service for rural, insular and high-cost areas pursuant to subsection 3 of NAC 704.68043, a small-scale provider of last resort that receives federal universal service support through High Cost Loop Support, as governed by 47 C.F.R. §§ 54.1301 to 54.1310, inclusive, must:

     (a) Submit a request for money from the fund to maintain the availability of telephone service with the Fund Administrator and the staff of the Commission not later than June 1 of the year before the calendar year for which money from the fund to maintain the availability of telephone service is requested to be disbursed to the small-scale provider of last resort. Such a request must include the initial estimate, as determined by the small-scale provider of last resort, of the amount of money it will request for the upcoming calendar year. The small-scale provider of last resort must calculate this initial request by considering:

          (1) The estimated amount of federal universal service support through High Cost Loop Support that the small-scale provider of last resort expects to receive for the upcoming calendar year for rural, insular and high-cost areas; and

          (2) Financial data that supports the revenue requirement approved by the Commission in the most recent general rate case or in the disbursement application of the small-scale provider of last resort approved by the Commission for calendar year 2016 funding, whichever is most current.

     (b) Pursuant to NAC 704.680483, subsequently file an adjustment application with the Commission and the Fund Administrator not later than October 15 of the year immediately preceding the calendar year for which money from the fund to maintain the availability of telephone service is requested to be disbursed to the small-scale provider of last resort.

     3.  A provider of telecommunication service does not have to submit information on its earnings or rates if the provider is a competitive supplier or the provider is requesting a disbursement of money from the fund to maintain the availability of telephone service pursuant to NAC 704.68047 or 704.680473.

     4.  An application to the Commission must be submitted by a competitive supplier not later than 270 days before the beginning of the calendar year for which the money is being requested.

     5.  The Commission will issue an order which fully or partially approves or denies an application submitted to it within 120 days after receiving the application.

     6.  The Fund Administrator shall submit a report to the Commission which sets forth the amount of money needed for the fund to maintain the availability of telephone service for the next calendar year and the recommended percentage rate to be assessed on intrastate retail revenues not later than 120 days before the beginning of the next calendar year. The Commission will issue an order regarding the report filed by the Fund Administrator pursuant to this section within 90 days after the date on which the report is filed.

     7.  The Commission may grant a deviation or waiver from the deadlines for the filings pursuant to NAC 704.6804 to 704.68056, inclusive, to the extent it determines that the deviation or waiver is in the public interest.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R150-97, 12-11-97; R211-03, 4-5-2004; R136-07, 1-30-2008; R006-09, 10-27-2009; R021-14, 10-24-2014; R058-17, 12-19-2017)

Classification and Provision of Services of Certain Small-Scale Providers of Last Resort

      NAC 704.6806  Applicability. (NRS 703.025, 704.210)

     1.  The provisions of NAC 704.6806 to 704.68076, inclusive, apply to any exchange of a small-scale provider of last resort that is not a competitive supplier.

     2.  The provisions of NAC 704.6806 to 704.68076, inclusive, do not apply to a competitive supplier.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008; R040-08, 9-18-2008)

      NAC 704.68062  Request for classification or reclassification of service. (NRS 703.025, 704.210)

     1.  Any person may request that the Commission classify a new service or classify or reclassify an existing service, which is provided by a small-scale provider of last resort, as essential, discretionary, competitive or deregulated. Such a request must be filed with the Commission in the form of an application or a letter of advice. The service to be classified or reclassified must be provided in a market whose size is no smaller than a wire center, and no larger than the entire area of service of the small-scale provider of last resort. The requester has the burden of demonstrating that the classification or reclassification will not unfairly or unreasonably impede competition. Except as otherwise provided in subsection 2, the request must:

     (a) Fully identify and describe the service proposed to be classified or reclassified, including, without limitation, the:

          (1) Technical and common names of the service;

          (2) Number of units of the service currently provided within the market for which classification or reclassification is sought;

          (3) Facilities and equipment used in providing the service;

          (4) Nature and extent of the market in which the service is or will be provided, including, without limitation, the type of subscribers for that service, the source of revenues for that service and the geographic regions in which the service is or will be provided; and

          (5) Current price which a subscriber is charged for that service.

     (b) Specify the proposed classification of the service and provide all facts necessary to support that classification, including, without limitation, facts to support the findings required in NAC 704.68068 to 704.68076, inclusive, as appropriate.

     (c) Specify the specific market area for which the classification or reclassification is being sought.

     (d) Specify a method of accounting for the service to be classified or reclassified which satisfies the requirements of NAC 704.68066 for small-scale providers of last resort.

     (e) If the request proposes to classify a service as a competitive or deregulated service, include a plan which sets forth the procedures which the small-scale provider of last resort will use for the protection, use, sharing and issuance of information regarding its competitors and customers and the services they request or receive. The procedures must include:

          (1) The terms and conditions governing access by the small-scale provider of last resort and other persons to that information if the information is used to promote or provide competitive services; and

          (2) The manner in which the small-scale provider of last resort will obtain authorization from the customer to release the information.

     (f) If the request proposes to classify a service as a deregulated service, include:

          (1) The direct cost of the service accounted for pursuant to the Uniform System of Accounts; and

          (2) The method of determining, and the amount of, the common costs and general overhead expenses allocated, as determined pursuant to the apportionment rules set forth in 47 C.F.R. Part 64, as those rules existed on October 25, 1995.

     (g) If the request proposes to classify a service as a discretionary or competitive service, include the information and documentation which must be filed pursuant to NAC 704.68072.

     (h) Include plans which set forth safeguards to ensure that the small-scale provider of last resort will not unfairly or unreasonably impede competition.

     (i) If the request proposes to classify a service as a discretionary service, specify the proposed minimum and maximum rates to be charged if the request to classify the service as discretionary is approved.

     2.  A request to classify a service that is filed by a person other than the small-scale provider of last resort is exempt from the requirements set forth in paragraphs (d) to (i), inclusive, of subsection 1.

     3.  As used in this section:

     (a) “Letter of advice” means a document transmitted to the Commission pursuant to NAC 703.390.

     (b) “Wire center” means the geographic area encompassing all customers who may be served from a building which contains one or more central offices of a provider of last resort. A wire center is part of an exchange.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R186-97, 1-30-98; R107-07, 12-4-2007; R136-07, 1-30-2008)

      NAC 704.68064  Time for action upon request and for filing of protest. (NRS 703.025, 704.210)

     1.  The Commission will act upon a request filed pursuant to NAC 704.68062 within 90 days after the request is filed unless a protest is received from:

     (a) The staff of the Commission;

     (b) A person given permission to intervene by the Commission;

     (c) The Consumer’s Advocate; or

     (d) The small-scale provider of last resort that is providing the service to be reclassified.

Ê If a protest is filed, the Commission will act upon the request within 180 days after the date on which the request is filed.

     2.  A protest must be filed on or before the deadline for the filing of protests that is set forth in the notice required to be published pursuant to NAC 703.160.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R186-97, 1-30-98; R211-03, 4-5-2004; R136-07, 1-30-2008)

      NAC 704.68066  Maintenance of separate accounting records for competitive and deregulated services. (NRS 703.025, 704.210)

     1.  A small-scale provider of last resort shall identify and keep separate all accounting records, pursuant to the Uniform System of Accounts, for the plant, expenses and all other activities that relate to the provision of a service that has been classified as competitive or deregulated.

     2.  The Commission will not classify a service as competitive or deregulated if the accounting records which relate to that service are not kept separate from the accounting records which relate to the regulated operations of the small-scale provider of last resort.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.68068  Classification of service as discretionary. (NRS 703.025, 704.210)  The Commission will classify a service which is provided by a small-scale provider of last resort as discretionary if it finds that:

     1.  The service is not a basic network service or is not necessary to the provision of a basic network service;

     2.  The service is not necessary for other telecommunication providers, including hotels, motels, hospitals or other similar aggregators of telecommunication services for transient customers, to connect their transient customers with the public switched network;

     3.  The service is not reasonably necessary to the operations of a majority of subscribers to the service; and

     4.  Based on its consideration of all other matters considered to be relevant by the Commission, the service is deemed to be of a discretionary nature.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.6807  Classification of service as competitive. (NRS 703.025, 704.210)

     1.  A person who requests that the Commission classify a service which is provided by a small-scale provider of last resort as competitive shall file the following information:

     (a) The number of alternative providers of the service, or a comparable service, available in the relevant geographic market;

     (b) The percentage of the households or businesses, or both, in the relevant geographic market which have the service, or a comparable service, available from alternative providers; and

     (c) The percentage of the market share of the relevant geographic market held by alternative providers of the service and comparable services.

     2.  To determine if a service may be classified as competitive, the Commission will consider the following factors:

     (a) Whether a comparable service is available;

     (b) Whether subscribers of the service to be classified as deregulated may reasonably obtain that service from a provider other than a regulated provider of the service;

     (c) The ability of the regulated small-scale provider of last resort to determine or control the price of the service;

     (d) The prices, terms, conditions and availability of similar competitive and alternative services;

     (e) The need for approval by the Commission of the price of the service to be classified as deregulated;

     (f) The ability of other providers of the service to enter the market to provide the service;

     (g) The likelihood that other providers of the service will enter the market;

     (h) The suitability of substituting a comparable service for the service to be classified as deregulated;

     (i) The share of the market for the service held by competitors providing alternative services;

     (j) The extent of the entry into the market by providers of alternative or competitive services;

     (k) The extent to which competition exists in the geographic area for which a certificate of public convenience and necessity is issued to a small-scale provider of last resort to provide the service;

     (l) Whether the service is reasonably necessary to the operations of a subscriber to the service; and

     (m) Any other factors considered to be relevant by the Commission.

     3.  In making a determination, it is not necessary for the Commission to find in favor of a party on a majority of the factors set forth in subsection 2, except that the Commission will classify a service as competitive if:

     (a) The service, or a comparable service, is available from at least two alternative providers in the relevant geographic market;

     (b) The service, or a comparable service, is available from alternative providers to more than 50 percent of the households or businesses, or both, in the relevant geographic market; and

     (c) All alternative providers of the service and comparable services have a market share of the relevant geographic market of 15 percent or more if the relevant geographic market is an exchange or larger, or a market share of the relevant geographic market of 30 percent or more if the relevant geographic market is smaller than an exchange.

     4.  For the purposes of this section, the Commission will determine a market share by using one of the following measurements, as deemed appropriate by the Commission:

     (a) The number of households or businesses, or both, in a relevant geographic market supplied with a service by a provider will be divided by the total number of households or businesses, or both, in the same relevant geographic market supplied with the service and all comparable services by all providers; or

     (b) The number of units of the service supplied to households or businesses, or both, in a relevant geographic market by a provider will be divided by the total number of units of the service and all comparable services supplied to households or businesses, or both, in the same relevant geographic market by all providers of these services.

     5.  As used in this section:

     (a) “Alternative provider” means an entity that is not affiliated with or under the common control with another alternative provider or with a small-scale provider of last resort. As used in this paragraph, “affiliation” and “control” have the meaning ascribed to them in 47 C.F.R. Part 32.9000, as that section existed on October 25, 1995.

     (b) “Relevant geographic market” means the geographic area for which the classification of a service as competitive is sought pursuant to NAC 704.68062.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R186-97, 1-30-98; R136-07, 1-30-2008)

      NAC 704.68072  Classification of service as discretionary or competitive based on classification of comparable service. (NRS 703.025, 704.210)

     1.  If a small-scale provider of last resort requests that a service be classified as discretionary or competitive, the Commission may, in lieu of the factors specified in NAC 704.68068 and 704.6807, consider whether a comparable service offered by another small-scale provider of last resort or a competitive supplier before May 31, 2007, has been classified as discretionary or competitive. If the requester can demonstrate that a comparable service provided by a small-scale provider of last resort or a competitive supplier before May 31, 2007, has been classified as discretionary or competitive, and that it is reasonable to apply that classification to service provided by the requester, the requested classification may be authorized. The requester has the burden of demonstrating that the classification will not unfairly or unreasonably impede competition.

     2.  A small-scale provider of last resort shall include in its regulated results of operation:

     (a) All revenues and costs associated with services related to inside wiring pursuant to NAC 704.681 to 704.683, inclusive, and yellow pages; and

     (b) All revenues and costs associated with services classified as discretionary or competitive pursuant to this section.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R186-97, 1-30-98; R136-07, 1-30-2008)

      NAC 704.68074  Classification of service as deregulated. (NRS 703.025, 704.210)  A service will be classified as a deregulated service if:

     1.  Regulation of the service by the Commission has been preempted by state or federal law or regulation; or

     2.  The Commission finds through a hearing that classification of the service as deregulated is appropriate. Such a finding will be based on the information filed pursuant to NAC 704.6807 and any other factors which the Commission determines to be relevant. The Commission will hold a hearing to determine if a service should be classified as deregulated in accordance with this subsection upon the request of any person pursuant to NAC 704.68062 or a motion of the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R186-97, 1-30-98; R136-07, 1-30-2008)

      NAC 704.68076  Approval of rates, terms and conditions for discretionary service. (NRS 703.025, 704.210)  If the Commission authorizes a service to be classified as discretionary, it will approve minimum and maximum rates, the rates to be charged at the beginning of the service, and the terms and conditions of the service.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95)

Additional Requirements for Certain Providers and Services

     NAC 704.68085  Geographic averaging of rates. (NRS 703.025, 704.210)

     1.  The rates charged for intrastate interexchange toll service by a telecommunication provider must be geographically averaged throughout each LATA, or within such other smaller geographic area as the Commission deems appropriate to balance the interest of all customers and providers.

     2.  The rates charged for essential and discretionary services by a small-scale provider of last resort must be geographically averaged throughout the provider’s service territory, or within such other smaller geographic area as the Commission deems appropriate to balance the interests of all customers and providers.

     3.  Any person may file an application with the Commission which requests that the rates charged for intrastate interexchange toll service by a small-scale provider of last resort be geographically averaged pursuant to subsection 1 or 2 within a geographic area which is smaller than the LATA in which the service is provided.

     4.  The applicant has the burden of demonstrating that the request for the deviation balances the interest of all customers and providers, and will not, if approved, unfairly and unreasonably impede competition. The application must:

     (a) Fully identify and describe the service, including all of the information set forth in subsection 1 of NAC 704.68062;

     (b) Specify the rate for the service and provide all facts necessary to support the appropriateness of the proposed rates, including those facts enumerated in subsection 5; and

     (c) Specify the relevant market area of the service, in terms of the specific geographic boundaries, for the proposed deviation.

     5.  To determine whether an application filed pursuant to subsection 3 should be approved, the Commission will consider, in balancing the interests of all customers and providers:

     (a) The cost of providing the service in the proposed smaller geographic area;

     (b) The extent to which actual or potential competition, or both actual and potential competition, exists for the service in the proposed smaller geographic area, including the price charged by actual competitors or the price which may be charged by a potential competitor for the service; and

     (c) Any other factors deemed to be relevant by the Commission.

     6.  The provisions of this section do not apply to a competitive supplier.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008; R040-08, 9-18-2008)

      NAC 704.6809  Provision of interconnection and access to certificated telecommunication providers. (NRS 703.025, 704.210)

     1.  A provider of last resort, or a competitive supplier in areas where a provider of last resort has no facilities, must provide interconnection to its networks to all certificated telecommunication providers.

     2.  The interconnection must be provided:

     (a) By a provider of last resort, anywhere on the network of the provider of last resort that is technically feasible, including any central office or tandem office.

     (b) By a competitive supplier, anywhere on the network of the competitive supplier within the area not served by a provider of last resort, or that is reasonably proximate to that area, that is technically feasible and reasonably convenient for the interconnecting party. A competitive supplier shall allow interconnection only to that portion of its network located in an area where a provider of last resort has no facilities.

     3.  The interconnection must be provided on a nondiscriminatory basis.

     4.  The interconnection must include access to network services, functions and databases, including, but not limited to, intercept, directory assistance, emergency 911 services and Signalling System 7, and to the databases related to the provision of those services. Compensation for network functionality must be made in accordance with the provisions of subsection 6.

     5.  To the extent technically feasible, the interconnection and access must provide the same grade and quality of service, including the form and quality of signaling, to the telecommunication provider who is provided with the interconnection as is available within the provider’s own network.

     6.  If a request for interconnection to its network includes service components which have not been tariffed, the provider to whom the request for interconnection is made must:

     (a) Respond to the requesting party within 30 days after the receipt of the request with a decision as to the technical feasibility of the request and the estimated rate for the interconnection.

     (b) If the request for interconnection is not withdrawn and is determined to be technically feasible, file with the Commission the determination of technical feasibility and a proposed rate schedule and tariff. The filing must be made within 60 days after the date on which the response required in paragraph (a) is provided to the requesting party, but not later than 90 days after the date on which the request for interconnection is received. A provider of last resort shall file the proposed schedule and tariff in accordance with NAC 703.375 to 703.410, inclusive.

     (c) File with the Commission before providing the service, a plan of compensation between the interconnecting telecommunication providers for the exchange of traffic.

     7.  The responding provider has the burden of proof that a request pursuant to this section is not technically feasible, if the responding provider determines that such is the case.

     8.  The Commission may extend the deadlines set forth in subsection 6 upon a showing of reasonable cause by the responding provider.

     9.  A provider of last resort and a competitive supplier shall provide its customers with nondiscriminatory access to the interexchange carrier chosen by the customer.

     10.  A provider of last resort which is defined as a Class B company by the Federal Communications Commission in 47 C.F.R. Part 32 must comply with the provisions of this section to the extent that they are consistent with comparable provisions for such companies adopted by the Federal Communications Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A 7-10-96; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.68092  Availability of components of essential service to certificated telecommunication providers. (NRS 703.025, 704.210)

     1.  To the extent technically feasible, a provider of last resort, or a competitive supplier located in an area where a provider of last resort has no facilities, shall make available to other certificated telecommunication providers, on a nondiscriminatory basis, individual components that comprise any basic or other essential service, if the provider:

     (a) Receives a bona fide request for the components;

     (b) Receives approval of the Commission to reclassify an essential service as a competitive service; or

     (c) Offers a new competitive service that utilizes components of an essential service.

     2.  A provider of basic or other essential services which receives a bona fide request for components of those services shall:

     (a) Respond to the requesting party within 30 days after the receipt of the request with a decision as to the technical feasibility of the request and an estimated rate for the interconnection; and

     (b) If the request is not withdrawn and it is determined to be technically feasible, file with the Commission the determination of technical feasibility and a proposed rate schedule and tariff for the services requested. The filing must be made within 60 days after the date on which the response required in paragraph (a) is provided to the requesting party, but not later than 90 days after the date on which the request for interconnection is received. A provider of last resort must file the proposed schedule and tariff in accordance with NAC 703.375 to 703.410, inclusive.

     3.  The responding provider has the burden of proof that a request made in accordance with this section is not technically feasible, if it determines that such is the case.

     4.  The Commission may extend the deadlines set forth in subsection 2 upon a showing of reasonable cause by the responding provider.

     5.  A provider of last resort defined as a Class B company by the Federal Communications Commission in 47 C.F.R. Part 32 must comply with the provisions of this section to the extent that they are consistent with comparable provisions for such companies adopted by the Federal Communications Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A 7-10-96; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.68094  Assignment of numbers, portability and administration. (NRS 703.025, 704.210)  To the extent technically feasible, the assignment of telephone numbers, portability and administration, consistent with the requirements of the North American Numbering Plan, must be provided on a nondiscriminatory basis and as required by and consistent with the applicable federal policy.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95)

      NAC 704.68096  Directory listings. (NRS 703.025, 704.210)

     1.  Certificated telecommunication providers who provide directory listings to their customers must allow identical listings to be purchased on a nondiscriminatory basis by other providers or by the customers of any other provider operating within the geographic area contained in the directory.

     2.  As used in this section, “directory listings” include listings in white pages, yellow pages, and electronic white and yellow pages.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

Inside Wiring for Telephone Equipment

     NAC 704.681  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.681 to 704.683, inclusive, unless the context otherwise requires:

     1.  “Inside wiring” means all wiring and other materials installed on the subscriber’s side of the point of demarcation and the labor necessary for installation by the customer, his or her agent, or telephone company. The term refers to matters which have historically been recorded according to the Uniform System of Accounts.

     2.  “Point of demarcation” means the point of interconnection between a telephone company’s communications facilities and its protective apparatus which is regulated by the Commission and the terminal equipment or wiring at a subscriber’s premises which is not regulated by the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A 10-25-95)

      NAC 704.6813  Applicability. (NRS 703.025, 704.210)  The provisions of NAC 704.681 to 704.683, inclusive, do not apply to a competitive supplier.

     (Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

      NAC 704.6815  Services required for simple inside wiring. (NRS 703.025, 704.210)  A small-scale provider of last resort shall, upon request, provide installation and repair of simple inside wiring.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.682  Rates for services. (NRS 703.025, 704.210)  A small-scale provider of last resort is not required to file tariffs for services offered by the provider related to inside wiring. Unless otherwise ordered by the Commission, the revenues, expenses and rate base for such services must be used for rate making.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.6825  Billing for services. (NRS 703.025, 704.210)

     1.  A small-scale provider of last resort shall separately identify on a customer’s bill, other than a customer of Centrex, any charges for maintaining inside wiring and clearly indicate that such maintenance is an optional service.

     2.  A small-scale provider of last resort may not charge a new customer for maintaining inside wiring unless the customer specifically requests the service.

     3.  Before January 1, 1991, and every 2 years thereafter, a small-scale provider of last resort shall include in each customer’s bill:

     (a) Notification that maintenance of inside wiring is an optional service;

     (b) A description of that service; and

     (c) The telephone number to call to initiate or terminate the service.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.683  Location of point of demarcation. (NRS 703.025, 704.210)  The point of demarcation must be located on the subscriber’s side of the protector, or the equivalent thereof if a protector is not employed, as provided under the standard operating practices of the provider of last resort which must be reasonable and nondiscriminatory.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

Shared Tenant Service

     NAC 704.689  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.689 to 704.6897, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.68903 to 704.6892, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.68903  “Contiguous property” defined. (NRS 703.025, 704.210)  “Contiguous property” means a single parcel of land or adjoining parcels of land which are touching at a point, edge, or along a boundary, without interruption, or would be touching at a point, edge, or along a boundary if not intersected or traversed by a public thoroughfare or right-of-way.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.68906  “End user” defined. (NRS 703.025, 704.210)  “End user” means a person who subscribes to telecommunication services from a provider.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.6891  “Point of demarcation” defined. (NRS 703.025, 704.210)  “Point of demarcation” means the point of interconnection between a telephone company’s communications facilities and its protective apparatus which is regulated by the Commission and the terminal equipment or wiring at a provider’s premises which is not regulated by the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.68913  “Provider” defined. (NRS 703.025, 704.210)  “Provider” means a person who subscribes to a shared tenant service from a local exchange company and redistributes the service to end users on contiguous property under its common control or ownership. The term does not include a person who provides telephone service accessible to providers of public telephones, or a hotel, motel, university, or hospital.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.68916  “Shared tenant service” defined. (NRS 703.025, 704.210)  “Shared tenant service” means a business service provided by a local exchange company to a provider which terminates at a point of demarcation and is redistributed by the provider to end users.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.6892  “Transient apartment” defined. (NRS 703.025, 704.210)  “Transient apartment” means an apartment in a complex with multiple units, a residential hotel, an apartment hotel, a complex of time-share condominiums, or any other complex in which the average length of stay per room, unit, or apartment as calculated for the entire complex is not more than 30 days.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.68922  Applicability. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsection 2, the provisions of NAC 704.689 to 704.6897, inclusive, apply to small-scale providers of last resort that are not competitive suppliers.

     2.  The provisions of NAC 704.68906, 704.68913 and 704.6897 apply to competitive suppliers.

     (Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008; A by R040-08, 9-18-2008)

      NAC 704.68923  General requirements for provision of shared tenant service. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsections 2 and 5, a local exchange company shall provide shared tenant service pursuant to tariffs filed with the Commission.

     2.  Except as otherwise provided in subsection 3, a local exchange company shall not provide shared tenant service to a prospective provider who intends to serve an end user who occupies a single-family residential dwelling or an apartment in a complex with multiple units.

     3.  A local exchange company shall provide shared tenant service to a provider who intends to serve an end user who occupies a transient apartment pursuant to tariffs filed with the Commission.

     4.  A provider who intends to serve an end user in a transient apartment must submit a request to provide shared tenant service to the local exchange company. If a provider makes such a request, it shall provide to the local exchange company at the time of the request and annually thereafter a sworn verification, signed by an officer or other authorized representative of the provider, that the site to which shared tenant service is or will be provided meets the definition of transient apartment set forth NAC 704.6892.

     5.  A local exchange company with 10,000 or more access lines in service shall file a tariff for shared tenant service within 30 days after October 1, 1994. A local exchange company with less than 10,000 access lines in service is not required to file a tariff for shared tenant service until it receives a bona fide request for the service from a prospective provider. If a local exchange company receives such a request, it shall file a tariff for shared tenant service within 30 days after receiving the request.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.68926  Subscription to services; facilities. (NRS 703.025, 704.210)

     1.  A provider shall not require an end user to subscribe to its services.

     2.  A provider shall inform an end user of the right to subscribe to telecommunication services directly from a local exchange company before it establishes service with the end user.

     3.  An end user located in the service area of a provider who wishes to subscribe to telecommunication services from a local exchange company must place an order for service directly with that local exchange company. The local exchange company shall notify the provider that it requires access to the facilities of the provider. The provider shall provide such access subject to the terms of an agreement to use a facility pursuant to NAC 704.6897. If the provider does not have or cannot provide the facilities beyond the point of demarcation needed to serve the end user, the local exchange company shall provide the necessary facilities at the expense, if any, of the end user.

 

     4.  The facilities of a provider that are connected to the facilities of a local exchange company must:

     (a) Be installed in accordance with 47 C.F.R. Part 68, as those regulations exist on October 1, 1994. A copy of the regulations may be obtained by mail from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://www.bookstore.gpo.gov, for the price of $12.

     (b) Comply with all other technical standards with which the local exchange company must comply as set forth in the tariff of that local exchange company.

     5.  The provider is responsible for all facilities on its side of the point of demarcation, including, but not limited to, the installation, repair, maintenance and replacement of the facilities.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.6893  Responsibility for service; response to service calls. (NRS 703.025, 704.210)

     1.  A provider is responsible for all aspects of service on its side of the point of demarcation. The provider shall verify to the best of its ability that any service problem is on the local exchange company’s side of the point of demarcation before reporting the problem to that local exchange company.

     2.  A local exchange company shall respond only to service calls made by a provider or an agent of the provider who is designated in a letter of authorization received from the provider. A local exchange company shall not respond to a service call made by an end user unless the local exchange company is providing service directly to the end user who placed the service call. The applicable service charges of the local exchange company apply if the local exchange company visits the premises in response to a report of a problem and determines that the problem is on the provider’s side of the point of demarcation.

     3.  The provider shall provide a telephone number for repair service to an end user when it establishes service with the end user.

     4.  If an end user subscribes to services from a provider, the provider must be contacted for any problems related to the services provided in connection with the shared tenant service. The local exchange company is not responsible to the end user for those services.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.68933  Telephone directory listings; access to other services. (NRS 703.025, 704.210)

     1.  At the request of an end user, a provider shall subscribe to the listings in a telephone directory of the local exchange company on behalf of the end user. The provider shall contact the local exchange company to initiate new listings in a telephone directory and to cancel existing listings. The provider shall pay the applicable tariff rates for the listing.

     2.  A provider shall inform end users of the method for obtaining access to the local exchange company and shall provide access to local and intraLATA operator services, emergency 911 service, and other emergency services. The provider shall provide end users with clear dialing instructions for access to these services if the required dialing sequence differs from that used by the local exchange company.

     3.  A provider which serves a transient apartment shall allow an end user who occupies the apartment to access long distance service which is:

     (a) Obtained by the end user dialing 800; or

     (b) Referred to as “10XXX0+/-service,” if facilities to provide such a service are available.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.68936  Written acknowledgment from subscriber: Contents; retention. (NRS 703.025, 704.210)

     1.  A provider shall obtain a written acknowledgment from each end user at the time he or she subscribes to the services of the provider which states that:

     (a) The end user is aware of and may, at any time, obtain service from the local exchange company at no charge from the provider to the end user.

     (b) The provider is the sole contact for an end user for all questions, service problems, and billing disputes related to the services provided.

     (c) The end user may subscribe to listings in the telephone directory of the local exchange company through the provider.

     (d) The end user has unlimited access to the operator services, emergency 911 service, and other emergency services provided by the local exchange company.

     (e) The end user is aware that the telephone numbers assigned to the provider for use by end users are the property of the local exchange company, and not of the provider or the end user.

     (f) The end user is aware that he or she may be required to pay applicable connection charges and charges for a special construction from the point of demarcation to the premises where the telephone is located which are associated with establishing service with the local exchange company if the provider ceases to provide shared tenant service.

     (g) The end user is aware that the local exchange company may interrupt service if the provider fails to pay for the service.

     (h) The end user who occupies a transient apartment is aware that he or she may access any long distance service which is:

          (1) Obtained by the end user dialing 800; or

          (2) Referred to as “10XXX0+/-service,” if facilities to provide such a service are available.

     2.  The provider shall retain the written acknowledgment for at least 3 months after the termination of the service provided to the end user.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.6894  Routing of local calls; resale of intrastate long distance service. (NRS 703.025, 704.210)  A provider:

     1.  Shall route all local calls to the local exchange company.

     2.  Shall not resell intrastate long distance service unless the provider obtains a certificate of public convenience and necessity to provide long distance service. If the provider obtains a certificate of public convenience and necessity for the resale of long distance service, it must comply with NAC 704.7472 to 704.7487, inclusive, for that portion of its operations.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94; A 10-25-95; A by Pub. Utilities Comm’n by R124-99, 11-15-99)

      NAC 704.68943  Requirements for switches; private line service; hard wiring. (NRS 703.025, 704.210)

     1.  A provider:

     (a) May not provide shared tenant service and resell intrastate service out of the same switch unless the provider demonstrates that the switch is partitioned in such a way that the volume of telephone calls for the different classes of end users is clearly segregated to enforce the regulations, orders, decisions, and tariffs applicable to each class of service.

     (b) Shall not use intraLATA or interLATA networking of shared tenant switches.

     (c) May obtain intraLATA private line service between exchanges directly from the local exchange company. The service must terminate at the premises of the provider for the private use of the provider.

     2.  A provider shall hard wire all end users it serves directly to the switch used by the provider to serve those end users.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.68946  Extensions of service. (NRS 703.025, 704.210)

     1.  A provider shall not provide an extension from its switch to end users in a single building or complex of buildings unless the extension is on the same contiguous property.

     2.  An end user may order directly from the local exchange company an extension of a service provided by a provider that is not on the premises where the end user’s telephone is located for termination at an answering service or at the private residence of the end user.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.6895  Provision of copies of regulations and tariff to prospective providers. (NRS 703.025, 704.210)  Before accepting an order for shared tenant service from a prospective provider, a local exchange company shall provide the prospective provider with copies of the regulations and the tariff governing the shared tenant service and obtain a written acknowledgment from the provider of its receipt of the regulations and tariff.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.68953  Responsibilities of provider. (NRS 703.025, 704.210)

     1.  A provider is solely responsible for:

     (a) Collecting bills rendered for its telecommunication and billing services and for the use of its facilities;

     (b) Billing disputes with end users; and

     (c) Paying all local and toll charges, and making appropriate deposits with the local exchange company as required, even if the provider cannot collect the fees for its services from the end user. If a provider fails to pay a bill, the local exchange company may terminate service, and the provider is subject to the appropriate tariffs of that local exchange company regarding termination of service.

     2.  A provider shall separately identify all charges for local service that it provides on the bill of an end user. If an end user receives local exchange service only from the local exchange company, the provider shall not charge the end user for shared tenant service.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.68956  Compliance with regulations and conditions of service applicable to business customers. (NRS 703.025, 704.210)  Except as otherwise provided in NAC 704.689 to 704.6897, inclusive, or in the tariff of the local exchange company, a provider shall comply with regulations and conditions of service applicable to the business customers of the local exchange company, as set forth in the tariff of the local exchange company.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.6896  Responsibilities of local exchange company. (NRS 703.025, 704.210)

     1.  A local exchange company is responsible to a provider only for furnishing facilities to the point of demarcation suitable for shared tenant service and for maintaining and operating such facilities in a manner that ensures the timely delivery of that service.

     2.  The local exchange company is not responsible for:

     (a) The installation, operation, or maintenance of any equipment or systems provided by the provider.

     (b) The through transmission of signals generated by the equipment of the provider, or for the quality or defects in that transmission caused by the provider.

     (c) The reception of signals by the equipment or systems of the provider.

     (d) Damage to terminal equipment or systems of the provider because of testing performed by the provider.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.68963  Charges for special constructions. (NRS 703.025, 704.210)

     1.  If a provider requests a local exchange company to construct a facility in order to provide telecommunication services to end users, the local exchange company may collect additional charges from the provider for the cost of the special construction. The charges must be determined on a case by case basis, subject to approval by the Commission, and are in addition to the standard rates and fees for shared tenant service charged by the local exchange company.

     2.  A facility constructed by a local exchange company shall be deemed a special construction if one or more of the following conditions exist:

     (a) The local exchange company has no other requirement for the facilities constructed at the request of the provider.

     (b) Except as otherwise provided in this paragraph, the provider wishes to furnish telecommunication services using a type of facility, or via a route, other than that which the local exchange company would otherwise use in furnishing the requested service. If the alternate facility or route constructed pursuant to this paragraph is less costly than that which the local exchange company would otherwise use, the facility or route shall not be deemed a special construction.

     (c) The provider requests the construction of more facilities than are required to satisfy its order for service.

     (d) The provider requests an expedited construction and compliance with the request results in added cost to the local exchange company.

     (e) The provider requests that the local exchange company construct temporary facilities until permanent facilities are available.

     (f) The order for service placed by the provider causes the local exchange company to incur extraordinary costs resulting from the abandonment of facilities previously installed to provide service to the location served by the provider.

     3.  The provider shall pay the balance of all charges in full for an installation or special construction if:

     (a) The provider terminates service with the local exchange company; or

     (b) The local exchange company terminates service to the provider.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.68966  Rates for shared tenant service; applicability. (NRS 703.025, 704.210)

     1.  A provider shall pay to a local exchange company the rates approved by the Commission for the shared tenant service provided.

     2.  The provisions of this section apply to any provider that subscribes to shared tenant service from a local exchange company, including a provider that had service in place before October 1, 1994, or before the effective date of the tariff for shared tenant service of the local exchange company.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

      NAC 704.6897  Use of inside wiring; provision of alternate pathways. (NRS 703.025, 704.210)

     1.  A local exchange company may use the inside wiring of a provider which is on the provider’s side of the point of demarcation at no charge to provide service to end users who choose to subscribe directly to the telecommunication services of the local exchange company.

     2.  A provider shall provide to a local exchange company at no charge, alternate pathways, such as conduits, easements, or rights-of-way, if the local exchange company needs to reinforce or install additional cable because the provider fails to furnish adequate telecommunication services to end users.

     3.  A provider may purchase or lease from a local exchange company the existing inside wiring of the local exchange company which is on the provider’s side of the point of demarcation to provide its service to end users.

     4.  As used in this section, “inside wiring” has the meaning ascribed to it in NAC 704.681.

     (Added to NAC by Pub. Service Comm’n, eff. 10-1-94)

Relief of Incumbent Local Exchange Carriers From Obligations of Providers of Last Resort

      NAC 704.711  Definitions. (NRS 703.025, 704.210, 704.6878)  As used in NAC 704.711 to 704.7134, inclusive, unless the context otherwise requires:

     1.  “Owner or developer”:

     (a) Means any:

          (1) Developer, operator or owner of any multitenant business or residential property, including, without limitation, an apartment complex, condominium complex, office complex, office park or residential subdivision;

          (2) Condominium association; or

          (3) Homeowners’ association; and

     (b) Does not include the developer or owner of a single-family residence if that developer or owner makes decisions on utility installations for that single-family residence only.

     2.  “Voice service” means voice-grade access, or the functional equivalent thereof, to the public switched telephone network through the use of any technology.

     (Added to NAC by Pub. Utilities Comm’n by R191-07, eff. 4-17-2008)

      NAC 704.7112  Request for per se relief from obligations in regard to certain property: Authorization. (NRS 703.025, 704.210, 704.6878)

     1.  An incumbent local exchange carrier that is a provider of last resort may request per se relief to be excused from all obligations as a provider of last resort in regard to a certain property if:

     (a) The owner or developer of the property:

          (1) During the construction phase of the property:

               (I) Permits any person other than the incumbent local exchange carrier to install facilities or equipment to provide voice service; and

               (II) Legally or physically prohibits the incumbent local exchange carrier from installing his or her own facilities or equipment for voice service; or

          (2) Collects mandatory rent, fees or dues from the occupants or tenants of the property for the provision of voice service by a person other than the incumbent local exchange carrier; and

     (b) A person other than the incumbent local exchange carrier will provide voice service to the property.

     2.  As used in this section, “legally or physically prohibits the incumbent local exchange carrier from installing his or her own facilities or equipment for voice service” means:

     (a) Preventing or failing to deliver access to the property, including, without limitation, providing suitable rights-of-way or easements, for the incumbent local exchange carrier to install his or her facilities or equipment; or

     (b) Before any trenching done for voice service, not requesting from the incumbent local exchange carrier plans, specifications, engineering drawings, designs or information relating to costs and advances to be paid by the owner or developer for related facilities or equipment.

     (Added to NAC by Pub. Utilities Comm’n by R191-07, eff. 4-17-2008)

      NAC 704.7114  Request for per se relief from obligations in regard to certain property: Procedure; notice; protest; when relief is deemed granted. (NRS 703.025, 704.210, 704.6878)

     1.  An incumbent local exchange carrier that is a provider of last resort and wishes to request per se relief pursuant to NAC 704.7112 must file a notice for per se relief with the Commission and must concurrently serve the notice to:

     (a) The Regulatory Operations Staff of the Commission;

     (b) The owner or developer of the property;

     (c) The Bureau of Consumer Protection in the Office of the Attorney General; and

     (d) If known, the person other than the incumbent local exchange carrier who will provide voice service to the property.

     2.  The notice must contain the following information:

     (a) The name, address and telephone number of the incumbent local exchange carrier that is the provider of last resort;

     (b) The name, address and telephone number of the owner or developer;

     (c) A description of the property;

     (d) A statement explaining why the incumbent local exchange carrier qualifies for per se relief and any supporting documents; and

     (e) If known, the name, address and telephone number of the person who will provide voice service to the property or, if unknown, an explanation of why this information is unavailable.

     3.  After a notice for per se relief is filed with the Commission, a protest to the notice for per se relief may be filed with the Commission within 14 days by any affected party, including, without limitation, the Regulatory Operations Staff of the Commission, the Bureau of Consumer Protection in the Office of the Attorney General and the person cited by the incumbent local exchange carrier as the person who will provide voice service to the property.

     4.  The Regulatory Operations Staff of the Commission will file a protest to a notice for per se relief if the Staff cannot confirm the material facts in the notice for per se relief or if the Staff cannot confirm that a new person will provide voice service to the property.

     5.  If no protests are filed with the Commission in regard to a notice for per se relief within 14 days after the notice for per se relief is filed, or if the Commission does not schedule a waiver proceeding pursuant to subsection 6, per se relief is deemed granted.

     6.  If a protest is filed with the Commission in regard to a notice for per se relief within 14 days after the notice for per se relief is filed, the Commission may schedule a waiver proceeding as described in NAC 704.712. If the Commission does not schedule a waiver proceeding within 30 days after the filing of a protest, per se relief is deemed granted.

     (Added to NAC by Pub. Utilities Comm’n by R191-07, eff. 4-17-2008)

      NAC 704.7116  Request for waiver of obligations in regard to certain property: Authorization. (NRS 703.025, 704.210, 704.6878)  An incumbent local exchange carrier that is a provider of last resort may request a waiver of its obligations as a provider of last resort in regard to a certain property.

     (Added to NAC by Pub. Utilities Comm’n by R191-07, eff. 4-17-2008)

      NAC 704.7118  Request for waiver of obligations in regard to certain property: Procedure; petition. (NRS 703.025, 704.210, 704.6878)

     1.  An incumbent local exchange carrier that wishes to request a waiver of its obligations pursuant to NAC 704.7116 must file a petition for waiver with the Commission and must concurrently serve the petition to:

     (a) The Regulatory Operations Staff of the Commission;

     (b) The owner or developer of the property;

     (c) The Bureau of Consumer Protection in the Office of the Attorney General; and

     (d) If known, the person other than the incumbent local exchange carrier who will provide voice service to the property.

     2.  The petition must include, without limitation, the following information:

     (a) The name, address and telephone number of the incumbent local exchange carrier that is the provider of last resort;

     (b) The name, address and telephone number of the owner or developer;

     (c) A description of the property;

     (d) A statement explaining why the incumbent local exchange carrier qualifies for a waiver and any supporting documents; and

     (e) If known, the name, address and telephone number of the person who will provide voice service to the property or, if unknown, an explanation of why this information is unavailable.

     (Added to NAC by Pub. Utilities Comm’n by R191-07, eff. 4-17-2008)

      NAC 704.712  Scheduling of waiver proceeding and issuance of order; order granting petition for waiver or per se relief. (NRS 703.025, 704.210, 704.6878)

     1.  After a petition for waiver is filed with the Commission pursuant to NAC 704.7118 or the Commission decides to conduct a waiver proceeding pursuant to subsection 6 of NAC 704.7114, the Commission will schedule a waiver proceeding and will issue an order regarding the petition within 90 days after the filing of the petition for waiver or the filing of the protest.

     2.  If the order grants the petition for waiver or grants per se relief, the order must require that the person who will provide voice service to the property shall:

     (a) Adhere to the requirements of NAC 704.7126; and

     (b) Maintain with the Commission a current address, telephone number and any other requested contact information.

     (Added to NAC by Pub. Utilities Comm’n by R191-07, eff. 4-17-2008)

      NAC 704.7122  Excuse from obligations does not affect obligations under federal law or regulation. (NRS 703.025, 704.210, 704.6878)  Excuse from the obligations of a provider of last resort does not relieve a provider of last resort from the obligations of an eligible telecommunications carrier as required by federal law or regulation.

     (Added to NAC by Pub. Utilities Comm’n by R191-07, eff. 4-17-2008)

      NAC 704.7124  Notification by owner or developer regarding certain facilities, equipment and payment information. (NRS 703.025, 704.210, 704.6878)

     1.  An owner or developer must notify in writing all occupants and tenants of the property, and any subsequent owner or developer of the property, of certain facilities, equipment and payment information if:

     (a) An order denying a petition for waiver or denying per se relief is made pursuant to NAC 704.712;

     (b) The incumbent local exchange carrier that is the provider of last resort does not have certain facilities or equipment installed on the property because the owner or developer has not complied with the applicable laws and regulations regarding underground facilities or equipment; and

     (c) The relevant trenches on the property are already closed.

     2.  As used in this section, “certain facilities, equipment and payment information” means information which states that:

     (a) The incumbent local exchange carrier who is the provider of last resort does not have facilities or equipment installed on the property;

     (b) In the event that an occupant or a tenant, the owner or developer, or a subsequent owner or developer requests voice service from the incumbent local exchange carrier, the occupant or tenant, owner or developer, or subsequent owner or developer may be required to pay special construction charges for the installation of facilities or equipment before the incumbent local exchange carrier can provide such service; and

     (c) After payment of special construction charges pursuant to this section, the incumbent local exchange carrier may require 180 days, or more if permitted by the Commission, to install the facilities or equipment.

     (Added to NAC by Pub. Utilities Comm’n by R191-07, eff. 4-17-2008)

      NAC 704.7126  Discontinuation of voice service provided after incumbent local exchange carrier is relieved of obligations. (NRS 703.025, 704.210, 704.6878)

     1.  If a person provides voice service to a property after an incumbent local exchange carrier is relieved of his or her obligations as a provider of last resort, the person may not discontinue service without, at least 180 days before the date of discontinuation:

     (a) Filing a notice of discontinuation with the Commission; and

     (b) Providing copies of the notice to the occupants and tenants of the property, the incumbent local exchange carrier and the owner or developer of the property.

     2.  A notice of discontinuation must contain the following information:

     (a) The character and nature of the discontinuation of service;

     (b) The date of the discontinuation of service;

     (c) The contact information for the person filing the notice, including, without limitation:

          (1) The name, address and business telephone number of the person; and

          (2) At least one toll-free customer service telephone number which is active at the time the notice is sent and is maintained by the person to facilitate the continuation of service and the transition of the occupants and tenants to new service;

     (d) The name, address and telephone number of the owner or developer;

     (e) A description of the property; and

     (f) Whether or not the person or the owner or developer:

          (1) Has made arrangements for the incumbent local exchange carrier to resume the obligations of a provider of last resort to the property; or

          (2) Has made arrangements for a person other than the incumbent local exchange carrier to provide replacement service to the property.

     (Added to NAC by Pub. Utilities Comm’n by R191-07, eff. 4-17-2008)

      NAC 704.7128  Action by Commission upon receipt of notice or evidence of possible discontinuation of voice service. (NRS 703.025, 704.210, 704.6878)  Upon receipt of a notice of discontinuation or evidence of possible discontinuation of voice service to a property, the Commission:

     1.  May hold a reinstatement proceeding if no arrangements have been made for replacement service to the property; and

     2.  May issue an interim order that ensures continuous service to the property.

     (Added to NAC by Pub. Utilities Comm’n by R191-07, eff. 4-17-2008)

      NAC 704.713  Reinstatement proceeding: Duties of Commission. (NRS 703.025, 704.210, 704.6878)

     1.  During a reinstatement proceeding, the Commission will examine the manner in which the incumbent local exchange carrier that is the provider of last resort shall provide basic network service or business line service to the property.

     2.  During a reinstatement proceeding, the Commission will determine, without limitation:

     (a) The amount of money necessary to compensate for the cost that the incumbent local exchange carrier will incur to place facilities and equipment at the property, while taking into consideration, without limitation, the amount necessary to install or retrofit any facilities or equipment, to cut or trench sidewalks and streets, and to restore roads, sidewalks, block walls or landscapes to original conditions;

     (b) Whether any existing facilities or equipment may be given or made available to the incumbent local exchange carrier, to the extent compatible with its facilities or equipment, and whether the incumbent local exchange carrier must accordingly compensate the person discontinuing service for such facilities or equipment; and

     (c) A reasonable period of time for the construction, retrofitting or installation of necessary facilities and equipment by the incumbent local exchange carrier based upon evidence provided by the incumbent local exchange carrier.

     3.  During a reinstatement proceeding, the Commission will, when making determinations:

     (a) Take into consideration any relevant use of alternative technology by the person who is discontinuing service; and

     (b) Allow the incumbent local exchange carrier to use alternative technology to satisfy any relevant obligations as a provider of last resort.

     4.  The Commission will not:

     (a) Commence the reasonable period of time that an incumbent local exchange carrier has for the construction, retrofitting or installation of necessary facilities and equipment until:

          (1) The incumbent local exchange carrier has been conveyed any compensation due pursuant to NAC 704.7132; and

          (2) The owner or developer of the property provides to the incumbent local exchange carrier the access necessary to install facilities and equipment, including, without limitation, providing any necessary easements; and

     (b) Reinstate an incumbent local exchange carrier if the owner or developer of the property does not provide to the incumbent local exchange carrier the access necessary to both install and maintain facilities and equipment, including, without limitation, providing any necessary easements.

     (Added to NAC by Pub. Utilities Comm’n by R191-07, eff. 4-17-2008)

      NAC 704.7132  Payment of certain compensation to person discontinuing voice service or to incumbent local exchange carrier. (NRS 703.025, 704.210, 704.6878)  If the Commission determines during a reinstatement proceeding that a person who is discontinuing voice service or an incumbent local exchange carrier should compensate the other for certain costs pursuant to NAC 704.713, the compensation may be conveyed, at the discretion of the payor, by:

     1.  Carrying out a payment schedule approved by the Commission, along with the posting of a bond in a manner approved by the Commission; or

     2.  Paying the full amount of compensation within 30 days.

     (Added to NAC by Pub. Utilities Comm’n by R191-07, eff. 4-17-2008)

      NAC 704.7134  Request by incumbent local exchange carrier for more time to construct, retrofit or install necessary facilities and equipment. (NRS 703.025, 704.210, 704.6878)  After a reinstatement proceeding, an incumbent local exchange carrier may request more time for the construction, retrofitting or installation of necessary facilities and equipment by submitting a written request to the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R191-07, eff. 4-17-2008)

Competitive Suppliers

      NAC 704.741  Application by small-scale provider of last resort to be regulated as competitive supplier. (NRS 703.025, 704.210, 704.68865, 704.68869)

     1.  Pursuant to NRS 704.68869, a small-scale provider of last resort may file with the Commission an application to be regulated as a competitive supplier.

     2.  The application must include, without limitation:

     (a) A map of the service area of the small-scale provider of last resort which identifies all exchanges in the service area;

     (b) For each type of retail service currently provided in the service area by the small-scale provider of last resort:

          (1) The price of the service;

          (2) The type of network used in providing the service; and

          (3) For any service that has had its rate changed pursuant to NRS 704.110 within 3 years before the filing of the application, the docket number of the proceeding which changed the rate;

     (c) For switched and special access service, the number of units for the service in each exchange provided by the small-scale provider of last resort to the alternative providers that provide a service in the service area of the small-scale provider of last resort;

     (d) For each alternative provider that provides a service in the service area of the small-scale provider of last resort:

          (1) If known to the small-scale provider of last resort or accessible from a reasonably available public source:

               (I) The name of the alternative provider;

               (II) The type of technology used by the alternative provider;

               (III) The type and price of each service provided by the alternative provider;

               (IV) The approximate percentage of households and businesses in each exchange that have services available from the alternative provider; and

               (V) Data comparing the alternative provider and the small-scale provider of last resort as regards total resources of the company, including, without limitation, total financial resources, managerial and employee resources, number of customers in the United States and areas in the United States where services are provided;

          (2) For any information described in subparagraph (1) which is not known to the small-scale provider of last resort or accessible from a reasonably available public source, an explanation of why that information is not included in the application; and

          (3) A list of the number of units of any service, equipment or facility leased or purchased by the alternative provider from the small-scale provider of last resort, including, without limitation, any:

               (I) Unbundled network element;

               (II) Resold service;

               (III) Special access service; and

               (IV) Operational service;

     (e) A copy of each FCC Form 477 provided to the Federal Communications Commission within the 3 years preceding the filing of the application;

     (f) Evidence of the number of customers lost to an alternative provider by the small-scale provider of last resort in the service area of the small-scale provider of last resort, including, without limitation, a general statement or trend analysis regarding:

          (1) The market share held by an alternative provider, if available, or an explanation of why such information is not available; and

          (2) The number of customer telephone numbers that have been ported to an alternative provider;

     (g) Evidence that the service area of the small-scale provider of last resort will remain open to competition for alternative providers, including, without limitation:

          (1) Evidence of any legal or physical barriers to entry in the service area;

          (2) If applicable, information demonstrating that the small-scale provider of last resort has satisfied the duties and obligations imposed by 47 U.S.C. § 251;

          (3) If applicable, a written plan providing how, if the application is granted, alternative providers will be able to receive, on a nondiscriminatory basis, the services required to be made available pursuant to 47 U.S.C. § 251 or such other service as listed in subparagraph (3) of paragraph (d); and

          (4) Information regarding any complaint or other legal action made against the small-scale provider of last resort, within 3 years before the filing of the application, in regards to unlawful discrimination or an anticompetitive act or practice; and

     (h) Any other evidence that the small-scale provider of last resort believes will demonstrate that substantial competition exists in its service area.

     3.  The small-scale provider of last resort that files the application bears the burden of proving that granting the application will serve the public interest.

     4.  Within 180 days after an application is filed pursuant to this section, the Commission will act upon that application.

     5.  As used in this section, “alternative provider” means an entity that provides telecommunication service or telephone service.

     (Added to NAC by Pub. Utilities Comm’n by R048-08, eff. 9-18-2008)

      NAC 704.743  Discontinuance of basic network service by competitive supplier that is provider of last resort: Application; notification. (NRS 703.025, 704.210, 704.68865, 704.68885)

     1.  If a competitive supplier that is a provider of last resort seeks to permanently discontinue providing basic network service pursuant to paragraph (b) of subsection 2 of NRS 704.68885, that competitive supplier must file an application with the Commission, except in cases where:

     (a) The competitive supplier terminates basic network service to a customer on a particular property; and

     (b) The termination is not intended to be a permanent termination for that particular property.

     2.  In addition to the general filing requirements set forth in NAC 703.530 to 703.577, inclusive, 703.610 and 703.615, an application must contain the following information:

     (a) All the names under which the competitive supplier conducts business in this State;

     (b) A complete description of:

          (1) The competitive supplier’s entire service area, if it seeks to discontinue basic network service throughout its entire service area;

          (2) The portion of the competitive supplier’s service area in which the competitive supplier seeks to discontinue basic network service, if it seeks to discontinue such service only in a portion of its service area; or

          (3) A single development of a multitenant residential property, if the competitive supplier seeks to discontinue basic network service only at that single development;

     (c) The number of current customers of basic network service and associated line counts, by customer class and exchange, in the area in which the competitive supplier seeks to discontinue the service;

     (d) The type of facilities deployed by the competitive supplier to serve existing customers in each exchange for which service may be discontinued and whether such facilities will continue to be owned by the competitive supplier;

     (e) The number of current customers of the competitive supplier who receive Lifeline service in the area in which the competitive supplier seeks to discontinue basic network service;

     (f) Identification of any discontinuance, reduction or impairment of service applications pursuant to Federal Communications Commission rules which have been made or are anticipated by the competitive supplier;

     (g) The competitive supplier’s basis for discontinuing basic network service;

     (h) A copy of the written notification provided or to be provided to all customers potentially affected by the discontinuation; and

     (i) Any other information which will assist the Commission in evaluating whether it is in the public interest for the Commission to allow the competitive supplier to discontinue basic network service.

     3.  The notification described in paragraph (h) of subsection 2 must:

     (a) Inform customers that the competitive supplier is seeking authorization from the Commission to discontinue basic network service;

     (b) Be sent to customers not later than the first business day following the filing of the application, and the method of transmission must be by:

          (1) United States mail, postage prepaid, to those customers who receive bills by United States mail; and

          (2) United States mail or electronic mail to those customers who receive notification of bills by electronic means; and

     (c) Contain identical information for each customer regardless of the method of transmission.

     4.  As used in this section, “single development of a multitenant residential property” means an apartment complex, condominium complex or residential subdivision.

     (Added to NAC by Pub. Utilities Comm’n by R040-08, eff. 9-18-2008)

      NAC 704.744  Discontinuance of basic network service by competitive supplier that is provider of last resort: Scope and timing. (NRS 703.025, 704.210, 704.68865, 704.68885)

     1.  If the Commission issues an order granting authorization to discontinue basic network service pursuant to NAC 704.743 and paragraph (b) of subsection 2 of NRS 704.68885, the competitive supplier that is a provider of last resort may discontinue such service only to the extent specified in the Commission’s order.

     2.  A competitive supplier that is a provider of last resort may discontinue basic network service not earlier than 30 days following the date of issuance of the order which grants authorization to discontinue basic network service.

     (Added to NAC by Pub. Utilities Comm’n by R040-08, eff. 9-18-2008)

Discretionary and Competitive Services

     NAC 704.7472  Application for certificate of public convenience and necessity filed by competitive supplier: Contents; applicable provisions. (NRS 703.025, 704.210)

     1.  An application for a certificate of public convenience and necessity filed by a competitive supplier must contain all the following information, either in the application or as exhibits attached to it:

     (a) The type of service, if any, presently being provided by the applicant, or being proposed to be provided by the applicant, and a general description of the service.

     (b) The most recent annual financial statements of the applicant or, if annual financial statements are not available, financial statements of the most recent quarterly period.

     (c) A copy of the certificate issued by the Secretary of State which acknowledges that the competitive supplier has filed its articles of incorporation with the Secretary of State.

     (d) Proof that a performance bond has been obtained in an amount which is sufficient to cover deposits and advance payments paid by customers.

     (e) The toll-free telephone number that the customers will be given for contacting the competitive supplier regarding the establishment of service, complaints, and queries about service and billing, and all other customer service matters.

     (f) Facts sufficient to establish that the competitive supplier possesses the necessary technical capability to provide the proposed service.

     (g) If the competitive supplier is doing business or intends to do business in this State under an assumed or fictitious name:

          (1) A copy of each certificate that the competitive supplier has filed or intends to file pursuant to chapter 602 of NRS with the county clerk of each county in which the competitive supplier is doing business or intends to do business; or

          (2) A statement that conforms to the requirements of NRS 602.020, if the competitive supplier is not otherwise subject to the provisions of chapter 602 of NRS.

     (h) The areas to be served, including, without limitation, an identification of the certificated service areas served by a small-scale provider of last resort.

     2.  The provisions of NRS 704.330, 704.350 and 704.370 apply to any such application.

     3.  As used in this section, “advance payment” means the money paid by a customer to a competitive supplier for a service which the customer has not yet received, including payments for telecommunication debit card services.

     (Added to NAC by Pub. Service Comm’n, eff. 12-19-89; A 10-25-95; 7-10-96; A by Pub. Utilities Comm’n by R047-02, 10-24-2002; R136-07, 1-30-2008; R040-08, 9-18-2008)

      NAC 704.7473  Application for certificate of public convenience and necessity filed by competitive supplier: Protests. (NRS 703.025, 704.210)

     1.  Protests against an application for a certificate of public convenience and necessity filed by a competitive supplier must be filed with the Commission within 20 days after publication of the notice issued by the Commission. The Commission will act upon an application within 60 days after it is filed.

     2.  A protest filed against an application of a competitive supplier other than a reseller must be sufficient to support a finding of the Commission that the:

     (a) Applicant does not possess the technical capability to provide the proposed service; and

     (b) Public interest will be substantially harmed by granting the certificate.

     3.  A protest filed against an application of a reseller must be sufficient to support a finding of the Commission that the public interest will be substantially harmed by granting the certificate.

     4.  If the Commission finds that a protest filed pursuant to subsection 2 or 3 has sufficient support, the Commission will immediately schedule a hearing on the matter.

     (Added to NAC by Pub. Service Comm’n, eff. 9-13-85; A 12-19-89; 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.7475  Discretionary services: Schedule of rates, charges, terms and conditions. (NRS 703.025, 704.210)

     1.  A small-scale provider of last resort which offers services classified as discretionary must file with the Commission a schedule of rates, charges, terms and conditions, which must include the minimum and maximum range of rates for each intrastate service provided and a list of each specific rate currently in effect.

     2.  The initial minimum and maximum rates must be established in accordance with NAC 704.68076.

     (Added to NAC by Pub. Service Comm’n, eff. 9-13-85; A 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.7477  Discretionary services: Establishment or change of schedule of minimum and maximum rates or terms and conditions; protests; changes within approved range. (NRS 703.025, 704.210)

     1.  When a small-scale provider of last resort proposes to establish or change its schedule of minimum and maximum rates or the terms and conditions for a new or existing discretionary service, it shall file with the Commission, along with the proposed schedule, a document containing a:

     (a) Summary of the proposed schedule and any changes therein; and

     (b) Statement of facts sufficient to establish and support the schedule and changes.

Ê The applicant has the burden of demonstrating that the application of the price range will not unfairly or unreasonably impede competition.

     2.  Small-scale providers of last resort may adopt the price range for comparable service, if any, of another provider of last resort pursuant to NAC 704.68072, unless it is demonstrated that application of the price range to the operations of the small-scale provider of last resort is unreasonable. The applicant has the burden of demonstrating that the application of the price range will not unfairly or unreasonably impede competition.

     3.  Protests against a proposed schedule must be filed within 30 days after publication of the notice issued by the Commission. The Commission will act upon a proposal within 60 days after it is filed. A request for a hearing or a protest must be sufficient to support a finding of the Commission that:

     (a) Authorizing the proposed schedule would cause substantial harm to the public interest; and

     (b) There is a likelihood that, after an investigation, the proposed schedule would be found to be unjust and unreasonable.

Ê If such a finding is made by the Commission and the proposed schedule is suspended, the Commission will immediately schedule a hearing on the matter.

     4.  When a small-scale provider of last resort proposes to change any actual rate charged within the range of the approved minimum and maximum rates in the schedule, it shall:

     (a) Notify the public affected by the proposed changes:

          (1) By advertising the changes in a quarter page of a newspaper of general circulation in the market area 10 days before the changes take effect; or

          (2) According to a plan approved by the Commission.

     (b) File with the Commission a summary of the proposed changes. There must be attached to the summary:

          (1) The list of prices specifying the actual rates to be charged;

          (2) An affidavit indicating that an advertisement summarizing the proposed changes has been or will be published pursuant to subparagraph (1) of paragraph (a) or describing the plan of the small-scale provider of last resort to inform the public affected by the proposed changes if an advertisement in a newspaper is considered to be inappropriate; and

          (3) A description of the plan of the small-scale provider of last resort for responding to customers’ requests for changes in service.

     5.  Proposed changes in rates within the range of approved minimum and maximum rates for an existing service:

     (a) Become effective on the date specified in the proposal, which must not be less than 10 days after it is filed with the Commission; and

     (b) Will not be suspended by the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 9-13-85; A 12-19-89; 10-25-95; A by Pub. Utilities Comm’n by R107-07, 12-4-2007; R136-07, 1-30-2008)

      NAC 704.7483  Annual reports of certain financial information and information regarding provision of services. (NRS 703.025, 703.191, 704.210)

     1.  Except as otherwise provided in subsection 2, every telecommunication provider shall submit, on May 15 of each year, a report which:

     (a) Includes a statement of income, a balance sheet, a statement of cash flow of the provider relating to the total operations of the provider and a statement of the intrastate revenues of the provider. The report must also identify the location where any working papers supporting the report may be reviewed.

     (b) Identifies the exchanges, routes or other geographic areas of this State where it is providing, or expects to provide, services and the types of the services being provided. The report must include the number and type of customers being served, by service and geographic area.

     2.  On or before May 15 of each year, a competitive supplier shall file with the Commission the information required by NRS 704.68871.

     (Added to NAC by Pub. Service Comm’n, eff. 9-13-85; A 10-18-91; 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.7485  Discontinuance of single offering or feature of service. (NRS 703.025, 704.210)

     1.  If a telecommunication provider other than a reseller proposes to discontinue a single offering or feature of service to existing customers, it shall notify the public of the change resulting from the discontinuance:

     (a) By advertising it in a quarter page of a newspaper of general circulation in the area affected by the change; or

     (b) By otherwise notifying the affected members of the general public,

Ê at least 30 days before the discontinuance takes effect.

     2.  The advertisement or other notification must summarize the proposed change in service. A copy of the advertisement or other notification must be filed with the Commission and must be accompanied by:

     (a) If it is an advertisement, an affidavit which indicates the date of publication; and

     (b) If it is any other type of notification, an explanation of how the notification reached those members of the general public who are affected by the proposed change in service.

     3.  Any discontinuance of a single offering or feature of service by a provider is exempt from the provisions of NRS 704.390.

     4.  The provisions of this section do not apply to a competitive supplier.

     (Added to NAC by Pub. Service Comm’n, eff. 9-13-85; A 12-19-89; 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.7487  Discontinuance of total service to geographic area. (NRS 703.025, 704.210)

     1.  Any telecommunication provider other than a reseller proposing to discontinue total service to any city, town, county or other geographic area of the State must include in its notice to the Commission of the proposed discontinuance:

     (a) Its proposed schedule;

     (b) Its notice to the public of the discontinuance; and

     (c) Evidence that sufficient alternative capacity exists to meet current demands to and from the area in which service is to be discontinued.

     2.  Protests against the proposal must be filed within 30 days after publication of the notice issued by the Commission. The Commission will act upon the proposal within 60 days after it is filed. A request for a hearing or protest must be sufficient to support a finding of the Commission that:

     (a) There is insufficient alternative capacity to meet current demands to and from the area in which service is to be discontinued; and

     (b) Authorizing the discontinuance of service would cause substantial harm to the public interest.

Ê If such a finding is made by the Commission and the proposed discontinuance is suspended, the Commission will immediately schedule a hearing on the matter.

     3.  The provisions of this section do not apply to a competitive supplier.

     (Added to NAC by Pub. Service Comm’n, eff. 9-13-85; A 12-19-89; 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.74935  Applicability of certain provisions. (NRS 703.025, 704.210)

     1.  The provisions of NAC 704.7475, 704.7477, 704.7485 and 704.7487 apply only to discretionary and competitive services provided by a small-scale provider of last resort.

     2.  The provisions of NAC 704.7475, 704.7477, 704.7485 and 704.7487 do not apply to a competitive supplier.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.7494  Change of name, address or telephone number of telecommunication provider; change of address of Internet website of competitive supplier. (NRS 703.025, 704.210)

     1.  A telecommunication provider may not change its name or the name under which it conducts business in this State without obtaining prior authorization from the Commission.

     2.  A telecommunication provider which changes its:

     (a) Address or telephone number; or

     (b) Toll-free customer service number,

Ê shall file with the Commission a notification of change not later than 30 days after the provider makes that change.

     3.  A competitive supplier which elects to comply with the requirements of paragraph (a) of subsection 2 of NRS 704.68875 by maintaining a publicly available Internet website shall file with the Commission a notification of a change in the address of the Internet website not later than 30 days after the supplier makes that change.

     (Added to NAC by Pub. Service Comm’n, eff. 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

Operator Services for Prison Inmate Phones

      NAC 704.7499  Adoption by reference of standards of Federal Communications Commission. (NRS 703.025, 704.210, 704.215)

     1.  The Commission hereby adopts by reference:

     (a) The operator services for prison inmate phones standards of the Federal Communications Commission, 47 C.F.R. § 64.710, and all definitions applicable to that section; and

     (b) Any amendments made to those standards and definitions by the Federal Communications Commission.

     2.  The provisions of 47 C.F.R. § 64.710 may be purchased by mail from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://www.bookstore.gpo.gov, for the price of $40. Those provisions are also available, free of charge, from the Government Printing Office at the Internet address http://www.gpoaccess.gov/cfr/index.html.

     (Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

Adjustment of Intrastate Charges and Rates by Telephone Companies

     NAC 704.7501  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.7501 to 704.7591, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.7505 to 704.7529, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85; A 10-17-86, eff. 4-1-87; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.7505  “Exchange” defined. (NRS 703.025, 704.210)  “Exchange” means a specified area where local service is provided by a single telephone service having its own switching facilities.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7509  “Interexchange carrier’s charges for access” defined. (NRS 703.025, 704.210)  “Interexchange carrier’s charges for access” means an amount charged an interexchange carrier for use of the facilities of an intraexchange carrier.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7513  “Intrastate line for access” defined. (NRS 703.025, 704.210)  “Intrastate line for access” means a line, trunk, or other facility consistent with the Federal Communications Commission’s order in docket No. 78-72 and provided by a telephone company pursuant to a general tariff or a tariff for a local exchange, or both, if the facility is terminated on a central office switch and may be used to make and receive local calls within the exchange, intrastate calls between exchanges, or interstate calls, whether or not the subscriber causes the line, trunk, or facility to be arranged to prohibit any type of calls from being made or received.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7519  “Rate per unit” defined. (NRS 703.025, 704.210)  “Rate per unit” is that rate which when multiplied by the number of units within a given period results in the aggregate amount in dollars applicable to that period.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7521  “Subscriber” defined. (NRS 703.025, 704.210)  “Subscriber” means a customer of a telecommunication provider or a user of telecommunication service.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85; A 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.7523  “Subscriber’s charges for access” defined. (NRS 703.025, 704.210)  “Subscriber’s charges for access” means the amount of money charged per line per month to a subscriber of a local exchange, Centrex or a semipublic coin telephone service to the extent that the subscriber does not pay charges for a carrier’s common lines.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7527  “Unit” defined. (NRS 703.025, 704.210)  “Unit” means the quantitative measurement of an item, or level of use, consumption or effort.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7529  “Universal service” defined. (NRS 703.025, 704.210)  “Universal service” means the availability of affordable intraexchange service to as many customers in this State as is practicable.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.75295  Competitive suppliers: Provisions inapplicable; filing and approval of letter of advice. (NRS 703.025, 704.210, 704.68865)

     1.  The provisions of NAC 704.7501 to 704.7591, inclusive, do not apply to a competitive supplier.

     2.  A competitive supplier that is an incumbent local exchange carrier shall not change any rates, pricing, terms or conditions of intrastate switched or special access except upon the filing and approval of a letter of advice pursuant to subsection 3 of NRS 704.68873. The letter of advice must include:

     (a) Prices for intrastate switched or special access that do not exceed the interstate switched or special access prices charged by the competitive supplier as authorized by the Federal Communications Commission; and

     (b) All the relevant information filed with the Federal Communications Commission which demonstrates that the proposed prices do not exceed the interstate switched or special access prices charged by the competitive supplier as authorized by the Federal Communications Commission.

     3.  A competitive supplier that is an incumbent local exchange carrier which requests a deviation from subsection 2 must fully demonstrate that the requested deviation is reasonable and appropriate by filing a letter of advice which includes all relevant Federal Communications Commission filings and corresponding federal tariffs, if applicable, as well as all supporting documents and cost studies.

     4.  A letter of advice filed pursuant to subsection 2 or 3 shall be deemed approved if the Commission does not otherwise act on the letter of advice within 120 days after the letter of advice is filed with the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

      NAC 704.7531  General rate application not precluded by filing. (NRS 703.025, 704.210)  The filing of an application pursuant to NAC 704.7501 to 704.7591, inclusive, does not preclude a telephone company from filing a general rate application pursuant to NAC 703.2501 to 703.2711, inclusive.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7533  Application to establish or adjust charges or rates. (NRS 703.025, 704.210)

     1.  An application by one or more intraexchange carriers to establish or adjust charges for access, rates for service between local areas of transport and access or other rates necessary to offset the loss of settlements from interstate or intrastate pools must include:

     (a) An exhibit containing:

          (1) A summary of the existing and proposed rates; and

          (2) A brief description of each requested change in rates and a reference to the associated page of the tariff.

     (b) An exhibit containing a copy of the existing tariff which is marked to show all the proposed changes to the tariff. The changes may be handwritten in a neat and legible fashion.

     (c) A complete and accurate explanation of the circumstances relied upon as justification for the application.

     (d) An exhibit identifying any proceeding before the Commission which was held since the last application on charges for access but before this application and which is related to any of the proposals contained in the application.

     2.  All information, schedules, or statements included in the application must be presented separately for each company and as a composite for companies participating in a joint filing.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7535  Information to be indexed and to accompany application; request for additional information. (NRS 703.025, 704.210)

     1.  All applicable statements and schedules and related working papers must be indexed and must accompany the application when it is filed with the Commission.

     2.  Any additional information which is necessary to enable the Commission to determine the fairness and reasonableness of the proposed charges must be supplied upon request of the Commission’s staff or the Consumer’s Advocate.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7537  Recorded data and adjustments. (NRS 703.025, 704.210)

     1.  Amounts which purport to represent recorded data and are included in a statement or schedule must be reported in a separate column. Adjustments to recorded data must also be reported in a separate column so that the recorded data, the adjustments, and the adjusted totals are clearly disclosed.

     2.  Each adjustment to recorded data must be supported by working papers which detail the calculations, units, rate per unit, and any other accounting or financial data necessary for a complete explanation and justification of the proposed adjustments. These papers must be filed with the application.

     3.  The applicant must calculate the adjustments so as to show the annual effect of the change in units or in the rate per unit, or both, upon the rate base or summary of earnings.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7539  Additional data. (NRS 703.025, 704.210)  If an applicant relies upon data other than that which NAC 704.7545 to 704.7561, inclusive, prescribe for the statements and schedules, the other data must be submitted with the application.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7541  Data supporting proposed rates; working papers; material available for verification. (NRS 703.025, 704.210)

     1.  The data in support of the proposed charges must include the recorded data, adjustments, and other computations and information on which the applicant relies to justify the proposed rates.

     2.  If any data or summaries included in the application reflect the applicant’s book of accounts, the data or summaries must be supported by the accountant’s working papers. The papers must contain all the necessary particulars from which an auditor may readily identify the data or summaries from the book of accounts which are included in separate columns and may verify that the data are in agreement with the applicant’s book of accounts.

     3.  The applicant must:

     (a) Prepare statements, schedules and working papers in accordance with the classifications provided in the Uniform System of Accounts; and

     (b) Prepare and maintain working papers which are sufficient to support the application. Any failure of the applicant to file such papers with its application is a cause for the Commission to reject the application in its entirety.

     4.  In addition to the working papers, the following material, if normally prepared by the applicant, must be made available for verification and analysis by the Commission’s staff and the Consumer’s Advocate, and copies of the material must be furnished to the Commission’s staff or the Consumer’s Advocate, upon request:

     (a) Monthly financial reports prepared for managerial purposes;

     (b) Accounting analyses of accounts listed on the balance sheet;

     (c) Complete trial balances of all:

          (1) Accounts listed on the balance sheet at the beginning and end of the 12 months of actual experience; and

          (2) Accounts for revenue and expenses for the 12 months of recorded data used for the application;

     (d) Analyses of the miscellaneous revenues and related expenses which are included in the results of operations as submitted to the Commission;

     (e) Analyses of accounts showing retained earnings or capital surplus;

     (f) All relevant reports and correspondence with other regulatory agencies;

     (g) All relevant reports, returns and correspondence with federal, state and local taxing authorities;

     (h) All managerial studies prepared by outside consultants and all managerial reports and letters prepared by outside auditors;

     (i) Analyses of all expenses included in the submitted results of operations; and

     (j) Additional working papers in support of other recorded data.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7543  Required statements and schedules. (NRS 703.025, 704.210)

     1.  An application must include, in alphabetical sequence, statements A to F, inclusive, with their related schedules, in the form prescribed in NAC 704.7545 to 704.7561, inclusive. If a statement is omitted as not applicable, the applicant must submit a written explanation of the omission.

     2.  Each company which files an application must prepare statements and schedules with columns in the following sequence:

     (a) Balances of all the accounts of the company’s total operation;

     (b) Balances of all the accounts of the total operations of the company within this State’s jurisdiction;

     (c) Balances of all accounts relating to tolls within this State’s jurisdiction;

     (d) Balances of all accounts relating to intraexchange service within this State’s jurisdiction;

     (e) Adjustments related to lost interstate revenues; and

     (f) Adjusted balances for intrastate tolls and intraexchange services.

     3.  Each item in the statements and schedules must:

     (a) Be mathematically correct;

     (b) Be properly cross-referenced; and

     (c) Indicate the date or period which it covers.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85; A 10-17-86, eff. 4-1-87)

      NAC 704.7545  Statement A. (NRS 703.025, 704.210)  Statement A must:

     1.  Summarize the results of the total operations conducted during the test period, and the summary must be developed from the supporting statements and schedules.

     2.  Include the rate of return requested by the applicant and must apply that rate to its rate base for intrastate tolls.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7547  Statement B. (NRS 703.025, 704.210)  Statement B must show in summary form the total rate base for each company and, if an application is filed by joint applicants, the total rate base for all companies in the aggregate for each account of primary plant for the test period.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85; A 10-17-86, eff. 4-1-87)

      NAC 704.7549  Schedule B-1. (NRS 703.025, 704.210)  Schedule B-1 must show in summary the amount of each applicant’s total plant which is attributable to Nevada. If an application is filed by joint applicants the schedule for intraexchange carriers in the aggregate

must be classified by each primary account as the accounts appear at the end of the test period. The applicant must use the relationships derived from the most recent study of costs used for settlements among companies. The schedule must show in adjoining columns the claimed adjustments, if any, to the balances in the books and the total cost of the applicant’s plant. All adjustments must be fully and clearly explained in the supporting material.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85; A 10-17-86, eff. 4-1-87)

      NAC 704.7551  Schedule B-2. (NRS 703.025, 704.210)  Schedule B-2 must show by primary accounts for each intraexchange carrier and, if an application is filed by joint applicants, in the aggregate, the accumulated provisions for depreciation, amortization, and abandonment at the end of the test period. The applicant must use the relationships developed from the most recent study of costs used for settlements among companies. Any adjustments to these ending balances in its books, as well as the total adjusted balances, must be shown in adjoining columns. All adjustments must be clearly and fully explained in the supporting material.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85; A 10-17-86, eff. 4-1-87)

      NAC 704.7553  Schedule B-3. (NRS 703.025, 704.210)  Schedule B-3 must show the:

     1.  Recorded balances for each component of materials and supplies by month so that an allowance can be calculated for the average of 13 months’ allocation of materials and supplies; and

     2.  Materials and supplies allocated for operations by the applicant which are under the jurisdiction of the Commission.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7555  Statement C. (NRS 703.025, 704.210)

     1.  Statement C must show the applicant’s operating revenue during the test period. The revenue must be classified according to the standards governing accounts for operating revenue as prescribed in the Uniform System of Accounts.

     2.  The amounts shown for operating revenue must be adjusted to show the annual effect of changes in operations caused by factors that are subject to recovery costs pursuant to NAC 704.7501 to 704.7591, inclusive.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7557  Statement D. (NRS 703.025, 704.210)  Statement D must show the total operating expenses, federal income taxes and other operating taxes of the applicant for the test period. These expenses and taxes must be classified to conform to the Uniform System of Accounts.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85; A 10-17-86, eff. 4-1-87)

      NAC 704.7559  Statement E. (NRS 703.025, 704.210)

     1.  Statement E must contain the applicant’s assurance to the Commission that the:

     (a) Applicant has allocated its expenses, including all taxes and investment in the rate base, according to the standards set forth in 47 C.F.R. §§ 36.1 et seq., or as otherwise directed by the Commission. The Commission hereby adopts by reference 47 C.F.R. §§ 36.1 et seq., in the form most recently published by the United States Government Printing Office. The volume containing 47 C.F.R. Parts 20-39 is available by mail from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://bookstore.gpo.gov, for the price of $52. The regulations may be accessed free of charge on the Internet at http://www.gpo.gov/fdsys.

     (b) Studies of cost which it used in the preparation of the application are available for inspection at a single, identified location.

     (c) Applicant’s employees and consultants who participated in the preparation of the application will be made available, upon request, to aid the Commission’s staff and the Consumer’s Advocate.

     2.  The applicant’s working papers must fully disclose the source and method of calculation of all allocations which are used in adjustments and are related to the effect of divestiture.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85; A by Pub. Utilities Comm’n by R011-15, 10-27-2015)

      NAC 704.7561  Statement F. (NRS 703.025, 704.210)

     1.  In statement F, the applicant must narrate the objectives and design of its proposed rates and must display its calculation of revenues by using proposed quantities and rates.

     2.  If a calculation of revenues is not required by any other section, the applicant must include in statement F a description and explanation of the method which it has used in deriving items such as the subscriber’s charges for access. The derivation of each component of a computation must be fully explained and cross-referenced in the working papers to the sources of the data.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7563  Statement that material constitutes complete case; burden of proof. (NRS 703.025, 704.210)

     1.  To avoid delaying the Commission in its consideration of the proposed charges, an applicant must state that the material on which it relies is of such composition, scope, and format that the material would serve as its complete case if its rates are suspended and the matter is set for hearing.

     2.  The applicant must be prepared to go forward at such a hearing on the basis of the data which it has submitted and to sustain the burden of proof of establishing that its proposed charges for access will be just and reasonable and not unduly discriminatory or preferential.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7565  Provision of documents to Commission; service upon Consumer’s Advocate. (NRS 703.025, 704.210)  On the date of filing an application, the applicant must furnish a complete set of the required statements, schedules and exhibits to the Commission. The applicant must also serve a complete set upon the Consumer’s Advocate.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85; A by Pub. Utilities Comm’n by R107-07, 12-4-2007)

      NAC 704.7567  Service of copies of application excluding working papers. (NRS 703.025, 704.210)  An applicant must serve a copy of its application, excluding the working papers, upon:

     1.  Each party of record; and

     2.  Each county and city whose residents will be affected by the proposed change in rates.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7569  Notice to subscribers. (NRS 703.025, 704.210)

     1.  Each individual applicant and all joint applicants must notify their subscribers who are affected by the proposed charges. The notice must describe the amount of the proposed change and the reasons for seeking the change. The notice must be given by two of the three following methods:

     (a) Inclusion in the regular bill of charges sent to the applicant’s subscribers.

     (b) Separate mailing to each of the applicant’s subscribers.

     (c) Prominent presentation in:

          (1) A newspaper.

          (2) A television or radio broadcast.

     2.  The applicant must submit to the Commission a verified statement:

     (a) Declaring that the required notice has been given;

     (b) Listing the media by which and the dates and the times when the notice was mailed, published, or broadcast; and

     (c) To which are attached copies of the notice as mailed, published, or transcribed.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7571  Procedure for filing tariffs. (NRS 703.025, 704.210)  The procedure for filing tariffs is as follows:

     1.  Each intraexchange carrier shall file intrastate tariffs with the Commission. The tariffs for charges for intrastate access may be parallel in structure to the tariffs for interstate access which it files with the Federal Communications Commission or be in such other form as the Commission prescribes.

     2.  Each intraexchange carrier which is concurring with another intraexchange carrier’s tariff shall file an index in standard form of a tariff which cross-references each item of the tariff and the number of the page and lists the services which the company is not providing in its own area of local service.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

      NAC 704.7573  Time for filing application for adjustment. (NRS 703.025, 704.210)  Any application for adjustment of a rate or charge pursuant to NAC 704.7501 to 704.7591, inclusive, must be filed with the Commission after July 1 of each year.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85; A 10-17-86, eff. 4-1-87)

      NAC 704.7575  Charges for subscribers’ access. (NRS 703.025, 704.210)

     1.  Subscriber’s charges for access may be assessed for each line between the subscriber’s premises and the switching center where his or her loops are terminated and toll calls are switched through to called lines, if the line is or may be used for local calls.

     2.  Charges for access must be set at an amount so that the cost of service guides the setting of rates without unreasonably:

     (a) Promoting the uneconomic bypassing of the assistance of an intraexchange carrier in either the originating or terminating exchange; or

     (b) Discouraging universal service.

     3.  Subscriber’s charges for access, tolls for services within a local area of transport and access and interexchange carrier’s charges for access may be adjusted to increase or decrease the money available to preserve universal service and prevent the uneconomic bypassing of the assistance of an intraexchange carrier in the exchange of either origin or termination.

     4.  Each intraexchange carrier must charge a premium for access to providers of intrastate service between local areas of transport and access for those facilities which do not provide equal access to interexchange carriers. The premium must be identical in amount and structure to that required by the Federal Communications Commission.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85; A 10-17-86, eff. 4-1-87)

      NAC 704.7591  Variances. (NRS 703.025, 704.210)

     1.  If good cause appears, a hearing officer may grant to an applicant a variance, under the conditions set forth in this section, from compliance with one or more of the procedural requirements contained in NAC 704.7533 to 704.7591, inclusive.

     2.  An applicant must request a variance in writing and must set forth in the request the reasons and factual basis for the variance.

     3.  A variance must not be granted if it substantially impairs the rights of any other party in a proceeding conducted pursuant to NAC 704.7533 to 704.7591, inclusive.

     (Added to NAC by Pub. Service Comm’n, 7-16-85, eff. 8-1-85)

Payphone Service

     NAC 704.75911  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.75911 to 704.75918, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.75912 to 704.75915, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R189-97, eff. 3-30-98)

      NAC 704.75912  “Payphone” defined. (NRS 703.025, 704.210)  “Payphone” means a public telephone or semipublic telephone.

     (Added to NAC by Pub. Utilities Comm’n by R189-97, eff. 3-30-98)

      NAC 704.75913  “Payphone service” defined. (NRS 703.025, 704.210)  “Payphone service” means the provision of telecommunication service and any ancillary service at a public telephone or semipublic telephone.

     (Added to NAC by Pub. Utilities Comm’n by R189-97, eff. 3-30-98)

      NAC 704.75914  “Public telephone” defined. (NRS 703.025, 704.210)  “Public telephone” means a telephone accessible to the public, including, without limitation, any pay telephone owned by a customer.

     (Added to NAC by Pub. Utilities Comm’n by R189-97, eff. 3-30-98; A by R136-07, 1-30-2008)

      NAC 704.75915  “Semipublic telephone” defined. (NRS 703.025, 704.210)  “Semipublic telephone” means a telephone made accessible to the public by the subscribing customer. The term includes a telephone provided for use by the occupant of a room in a hospital, hotel, motel or any other facility in which the occupant is charged for the use of the telephone.

     (Added to NAC by Pub. Utilities Comm’n by R189-97, eff. 3-30-98; A by R136-07, 1-30-2008)

      NAC 704.75916  Access to service without charge. (NRS 703.025, 704.210)  A provider of payphone service shall provide, without charge to the caller:

     1.  Access to dial tone;

     2.  Emergency 911 service or equivalent emergency service;

     3.  The repair service of the provider of payphone service; and

     4.  Subscriber service for numbers with area code 800 and telecommunications and relay service for numbers with area code 800 for persons with impaired hearing.

     (Added to NAC by Pub. Utilities Comm’n by R189-97, eff. 3-30-98)

      NAC 704.75917  Display of information at or near payphone. (NRS 703.025, 704.210)  At the commencement of providing payphone service at a payphone, the provider of payphone service shall cause the following information to be displayed conspicuously at or near the payphone:

     1.  The name and toll-free telephone number of the provider of payphone service for reporting and resolving any complaint regarding service;

     2.  The address and telephone number of the Division of Consumer Complaint Resolution of the Commission;

     3.  The telephone number and address or other description of location of the payphone;

     4.  The amount of the charge for a local call and local directory assistance and information relating to any time limits associated with the charge for a local call;

     5.  On payphones at which incoming calls are blocked, a notice printed in red and in boldface type which states that the payphone does not receive incoming calls; and

     6.  Dialing instructions for obtaining emergency service and repair service.

     (Added to NAC by Pub. Utilities Comm’n by R189-97, eff. 3-30-98)

      NAC 704.75918  Correction of failures in market for service. (NRS 703.025, 704.210)  After the filing of a complaint and a public hearing regarding the complaint or upon a motion of the Commission after an investigation, the Commission may act, consistent with federal requirements, to correct failures in the market for payphone service.

     (Added to NAC by Pub. Utilities Comm’n by R189-97, eff. 3-30-98)

Deregulation of Service Provided by Local Exchange Company

     NAC 704.7592  “Long-run incremental costs” defined. (NRS 703.025, 704.210)  As used in NAC 704.7592 to 704.7599, inclusive, unless the context otherwise requires, “long-run incremental costs” include operating expenses and capital costs over the long run caused by adding a new service or avoided by eliminating a service.

     (Added to NAC by Pub. Service Comm’n, eff. 1-23-87; A 1-11-91; 10-25-95; A by Pub. Utilities Comm’n by R136-07, 1-30-2008)

      NAC 704.75925  Applicability. (NRS 703.025, 704.210)  The provisions of NAC 704.7592 to 704.7599, inclusive, do not apply to a competitive supplier.

     (Added to NAC by Pub. Utilities Comm’n by R136-07, eff. 1-30-2008)

      NAC 704.7593  Application for approval to deregulate service. (NRS 703.025, 704.210)  Any person may apply to the Commission for approval to deregulate any service provided by a local exchange company. The service to be deregulated may involve an identifiable exchange or the entire area of service of the local exchange company. The application must:

     1.  Fully identify and describe the service proposed to be deregulated including the:

     (a) Technical and common names of the service;

     (b) Number of the service;

     (c) Facilities and equipment used in providing the service;

     (d) Nature and extent of the market for the service such as the type of subscribers for that service, the source of revenues for that service, and the geographic regions served; and

     (e) Current price charged a subscriber for that service.

     2.  Specify the extent to which the service is to be deregulated, including a list and description of the statutes, regulations, and tariffs from which the service is to be exempted.

     3.  If it is for an exemption from tariff or total deregulation, discuss each factor listed in NAC 704.7595 and 704.7596 and:

     (a) Identify alternatives to that service which are available to subscribers;

     (b) List the suppliers of the alternatives; and

     (c) Describe the share of the market for that service held by the providers of the service and the providers of the alternative to that service.

     4.  Specify a method of accounting for the service to be deregulated which satisfies the requirements of NAC 704.7594.

     5.  If it is for an exemption from tariff, provide an analysis which demonstrates that the rate which the local exchange company will charge for the service will recover at least the long-run incremental costs associated with the service.

     6.  If it is for an exemption from tariff or total deregulation, include a plan which sets forth the procedures which the company will use for the protection, use, sharing, and issuance of information regarding its competitors and customers and the services they request or receive. The procedures must include:

     (a) The terms and conditions governing access by the local exchange company and other persons to such information if it is used to promote or provide competitive services; and

     (b) The manner in which the local exchange company will obtain authorization from the customer to release such information.

     7.  If it is for total deregulation, include information and documentation required pursuant to subsection 1 of NAC 704.7597 to be filed with an annual report.

     8.  If it is for a service to be allowed flexibility of pricing or exemption from tariff, include information and documentation required pursuant to subsection 2 of NAC 704.7597 to be filed with an annual report.

     9.  Include plans:

     (a) Which set forth safeguards to ensure that the local exchange company will not impede competition by its control of the local network.

     (b) To monitor and report the quality of service.

     (Added to NAC by Pub. Service Comm’n, eff. 1-23-87; A 9-30-88; 1-11-91)

      NAC 704.75935  Time for action upon application. (NRS 703.025, 704.210)  The Commission will act upon an application filed pursuant to NAC 704.7593 within 90 days after it is filed unless a protest is received from:

     1.  The staff of the Commission;

     2.  A person given permission to intervene by the Commission; or

     3.  The Bureau of Consumer Protection within the Office of the Attorney General.

Ê If a protest is filed the Commission will act upon an application within 180 days after it is filed.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91)

      NAC 704.7594  Maintenance of separate accounting records. (NRS 703.025, 704.210)

     1.  A local exchange company shall identify and keep separate all accounting records for the plant, expenses and all other activities that relate to the provision of a service that has been exempted from tariff or totally deregulated pursuant to the Uniform System of Accounts, 47 C.F.R. § 32.23, from the accounting records for the plant, expenses and all other activities relating to the provision of regulated service pursuant to the Uniform System of Accounts, 47 C.F.R. § 32.14.

     2.  The Commission will not allow total deregulation if the accounting records that relate to the service to be totally deregulated are not kept separate from the accounting records that relate to the regulated operations of the local exchange company.

     3.  The Commission will not allow exemption from tariff if the accounting records that relate to the service to be exempted from tariff are not kept separate from the accounting records that relate to the other regulated operations of the local exchange company.

     (Added to NAC by Pub. Service Comm’n, eff. 1-23-87; A 1-11-91)

      NAC 704.7595  Factors for determining whether service is discretionary or competitive. (NRS 703.025, 704.210)  In determining whether the service proposed to be deregulated is discretionary or competitive, the Commission will consider:

     1.  Whether a comparable service is available;

     2.  Whether subscribers of the service to be deregulated may reasonably choose to obtain that service from other than a regulated provider of the service;

     3.  The ability of the regulated provider to determine or control prices;

     4.  The prices, terms, conditions, and availability of competitive and alternative services;

     5.  The need for approval by the Commission of the price of the service to be deregulated;

     6.  The ability of other providers of the service to enter the market for the service;

     7.  The likelihood that other providers of the service will enter the market;

     8.  The suitability of substituting a comparable service for the service being deregulated;

     9.  The share of the market for the service held by competitors providing alternative services;

     10.  The extent of the entry into the market by providers of alternative or competitive services;

     11.  The extent to which competition exists in the geographic area for which a certificate of public convenience and necessity is issued for the service;

     12.  Whether the service is reasonably necessary to the operations of a subscriber to the service; and

     13.  Any other matter considered relevant by the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 1-23-87; A 1-11-91)

      NAC 704.7596  Factors for determining whether flexibility, exemption or total deregulation is in public interest. (NRS 703.025, 704.210)  In determining whether flexibility of pricing, the exemption from tariff, or the total deregulation of a service provided by a local exchange company is in the public interest the Commission will consider:

     1.  The effect of exemption from tariff or total deregulation on the earnings and revenues of the local exchange company;

     2.  The effect that the exemption from tariff or total deregulation will have on the availability and price of services provided by the local exchange company that are not exempt from tariff or totally deregulated;

     3.  The degree that the service is essential to subscribers of the service;

     4.  Whether continuing to regulate the service would substantially limit the ability of the local exchange company to compete;

     5.  Whether there are safeguards to ensure that the local exchange company will not impede competition by its control of the local network; and

     6.  Any other matter considered relevant by the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 1-23-87; A 1-11-91)

      NAC 704.7597  Information to be filed with annual report. (NRS 703.025, 703.191, 704.210)  The following information must be filed with the annual report of a local exchange company providing a service that has been deregulated:

     1.  If the service has been totally deregulated:

     (a) The direct cost of the service pursuant to the Uniform System of Accounts, 47 C.F.R. § 32.23.

     (b) The method of determining and the amount of the common costs and general overhead expenses allocated, pursuant to the apportionment rules of 47 C.F.R. § 64.901 (Federal Communications Commission’s Order in Docket No. 86-111).

     2.  For a service allowed flexibility of pricing or which is exempt from tariff:

     (a) The direct cost of and revenue from the service pursuant to the Uniform System of Accounts, 47 C.F.R. Part 32.

     (b) The method of determining and the amount of the common costs and general overhead expenses allocated to each account of the Uniform System of Accounts, 47 C.F.R. Part 32.

     (c) The current rate charged for the service and adequate information to verify that the rate charged will recover at least the long-run incremental costs associated with the service.

     3.  If the service is allowed flexibility of pricing, is exempt from tariff, or has been totally deregulated, adequate information to verify:

     (a) That the sum of the earnings from basic service and service allowed flexibility of pricing are not subsidizing the earnings from service which is exempt from tariff or service which has been totally deregulated.

     (b) Compliance by the company with operational safeguards to ensure that the local exchange company will not impede competition by its control of the local network.

     (Added to NAC by Pub. Service Comm’n, eff. 1-23-87; A 1-11-91)

      NAC 704.7598  Rate charged for service exempted from tariff. (NRS 703.025, 704.210)  The rate charged by a local exchange company for a service approved for exemption from tariff must recover at least the long-run incremental costs associated with the service.

     (Added to NAC by Pub. Service Comm’n, eff. 1-23-87; A 1-11-91)

      NAC 704.75983  Maintenance of quality of deregulated service. (NRS 703.025, 704.210)  A local exchange company providing a service that has been deregulated shall monitor and maintain the quality of the service which exists at the time the Commission authorizes deregulation, unless the company is otherwise directed by the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91)

      NAC 704.7599  Adjustment of extent of deregulation. (NRS 703.025, 704.210)  The extent to which a service is deregulated may be adjusted by the Commission upon petition of any person or upon its own motion.

     (Added to NAC by Pub. Service Comm’n, eff. 1-23-87)

Determination of Wholesale Rates by Incumbent Local Exchange Carriers

     NAC 704.75991  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.75991 to 704.75996, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.759915 to 704.75994, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R010-98, eff. 6-26-98)

      NAC 704.759915  “All other services” defined. (NRS 703.025, 704.210)  “All other services” means all telecommunications services that an incumbent local exchange carrier is required to offer for resale pursuant to 47 U.S.C. § 251(c)(4). The term does not include operator and directory assistance services.

     (Added to NAC by Pub. Utilities Comm’n by R010-98, eff. 6-26-98)

      NAC 704.75992  “Avoided cost study” defined. (NRS 703.025, 704.210)  “Avoided cost study” means a study to determine wholesale discount factors that an incumbent local exchange carrier is required to conduct pursuant to NAC 704.759945.

     (Added to NAC by Pub. Utilities Comm’n by R010-98, eff. 6-26-98)

      NAC 704.759925  “Avoided retail costs” defined. (NRS 703.025, 704.210)  “Avoided retail costs” means the difference between:

     1.  The level costs that an incumbent local exchange carrier incurs currently to provide a given level of service at retail; and

     2.  The level of costs that the incumbent local exchange carrier would incur currently if it were to provide the same level of service solely through sale at wholesale.

     (Added to NAC by Pub. Utilities Comm’n by R010-98, eff. 6-26-98)

      NAC 704.75993  “Incumbent local exchange carrier” defined. (NRS 703.025, 704.210)  “Incumbent local exchange carrier” has the meaning ascribed to it in 47 U.S.C. § 251(h)(1).

     (Added to NAC by Pub. Utilities Comm’n by R010-98, eff. 6-26-98)

      NAC 704.759935  “Wholesale discount factor” defined. (NRS 703.025, 704.210)  “Wholesale discount factor” means the ratio obtained by dividing the avoided retail costs for a particular service or group of services by the total costs incurred by the incumbent local exchange carrier to provide that service or group of services at retail.

     (Added to NAC by Pub. Utilities Comm’n by R010-98, eff. 6-26-98)

      NAC 704.75994  “Wholesale rate” defined. (NRS 703.025, 704.210)  “Wholesale rate” means the rate that an incumbent local exchange carrier charges to provide a telecommunications service at retail, less the portion thereof attributable to avoided retail costs. The wholesale rate is determined in accordance with the formula set forth in NAC 704.75995.

     (Added to NAC by Pub. Utilities Comm’n by R010-98, eff. 6-26-98)

      NAC 704.759945  Determination of wholesale discount factors. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsection 4, an incumbent local exchange carrier shall determine wholesale discount factors on the basis of an avoided cost study that meets the requirements of NAC 704.759955 and 704.75996.

     2.  An incumbent local exchange carrier shall determine separate wholesale discount factors:

     (a) For operator and directory assistance services; and

     (b) Except as otherwise provided in subsection 3, for all other services as a group.

     3.  Notwithstanding the provisions of paragraph (b) of subsection 2, an incumbent local exchange carrier:

     (a) Shall determine service-specific wholesale discount factors if such service-specific wholesale discount factors are required pursuant to 47 U.S.C. § 252(b), (c) or (d).

     (b) May elect voluntarily to determine service-specific wholesale discount factors in addition to the wholesale discount factors that the incumbent local exchange carrier is required to determine pursuant to subsection 2.

     4.  An incumbent local exchange carrier and a requesting telecommunications carrier may negotiate voluntarily and enter into a binding agreement for wholesale discount factors without regard to the provisions of NAC 704.759955 and 704.75996.

     5.  As used in this section, “requesting telecommunications carrier” means a telecommunications carrier, as that term is defined in 47 U.S.C. § 153(44), which requests to purchase at wholesale rates services offered by an incumbent local exchange carrier.

     (Added to NAC by Pub. Utilities Comm’n by R010-98, eff. 6-26-98)

      NAC 704.75995  Formula for determining wholesale rate. (NRS 703.025, 704.210)  An incumbent local exchange carrier shall, in complying with 47 U.S.C. § 251(c)(4), determine the wholesale rate for a telecommunications service that is offered for resale by subtracting from the retail rate for that service the product obtained by multiplying the retail rate by the applicable wholesale discount factor.

     (Added to NAC by Pub. Utilities Comm’n by R010-98, eff. 6-26-98)

      NAC 704.759955  Conduct of avoided cost studies. (NRS 703.025, 704.210)

     1.  An incumbent local exchange carrier shall conduct separate avoided cost studies:

     (a) For operator and directory assistance services; and

     (b) Except as otherwise provided in subsection 2, for all other services as a group.

     2.  Notwithstanding the provisions of paragraph (b) of subsection 1, an incumbent local exchange carrier:

     (a) Shall conduct service-specific avoided cost studies if such service-specific avoided cost studies are required pursuant to 47 U.S.C. § 252(b), (c) or (d).

     (b) May elect voluntarily to conduct service-specific avoided cost studies in addition to the avoided cost studies that the incumbent local exchange carrier is required to conduct pursuant to subsection 1.

     (Added to NAC by Pub. Utilities Comm’n by R010-98, eff. 6-26-98)

      NAC 704.75996  Requirements for avoided cost study. (NRS 703.025, 704.210)

     1.  An avoided cost study required pursuant to NAC 704.759955 must:

     (a) Use the most current data pertaining to the incumbent local exchange carrier that is available, as reported by the Automated Reporting Management Information System (ARMIS) of the Federal Communications Commission in report number 43-03.

     (b) Be conducted in accordance with the Uniform System of Accounts for Class A and B telephone companies (“USOA accounts”) that is described in 47 C.F.R. Part 32.

     (c) Exclude expenses associated with telecommunications services that are not offered for resale.

     (d) Be based upon avoided retail costs.

     (e) Include as avoided direct costs:

          (1) A portion of the costs recorded in USOA account 6611 (product management); and

          (2) The vast majority of costs recorded in USOA accounts 6612 (sales), 6613 (product advertising) and 6623 (customer services).

     (f) Include as avoided indirect costs a portion of the costs recorded in:

          (1) USOA accounts 6121 to 6124, inclusive (general support expenses);

          (2) USOA accounts 6711, 6712 and 6721 to 6728, inclusive (corporate operations expenses); and

          (3) USOA account 5301 (uncollectible revenue-telecommunications).

     2.  As used in this section:

     (a) “Avoided direct costs” means costs that an incumbent local exchange carrier avoids directly by providing services at wholesale rather than at retail.

     (b) “Avoided indirect costs” means costs that an incumbent local exchange carrier avoids indirectly by providing services at wholesale rather than at retail.

     (Added to NAC by Pub. Utilities Comm’n by R010-98, eff. 6-26-98)

SALE OF GEOTHERMAL ENERGY

     NAC 704.760  Purpose. (NRS 703.025, 704.210, 704.669)  The purpose of NAC 704.760 to 704.782, inclusive, is to establish a requirement and procedure for obtaining an operating permit for the sale of energy from geothermal resources to the public.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82; A by Pub. Utilities Comm’n by R047-02, 10-24-2002)

      NAC 704.762  Applicability. (NRS 703.025, 704.210, 704.669)  NAC 704.760 to 704.782, inclusive, has the same applicability as NRS 704.669.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82; A by Pub. Utilities Comm’n by R047-02, 10-24-2002)

      NAC 704.764  Definitions. (NRS 703.025, 704.210, 704.669)  As used in NAC 704.760 to 704.782, inclusive:

     1.  “Geothermal resource” has the meaning ascribed to it in NRS 534A.010.

     2.  “Person” has the meaning ascribed to it in NRS 704.015.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82; A by Pub. Utilities Comm’n by R047-02, 10-24-2002)

      NAC 704.766  Operating permit required. (NRS 703.025, 704.210, 704.669)  Any person who intends to sell energy from geothermal resources to the public must obtain an operating permit from the Commission before:

     1.  Commencing the construction of any facility for that purpose except a geothermal well; or

     2.  Engaging in the sale of geothermal energy.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.768  Application for operating permit. (NRS 703.025, 704.210, 704.669)  A person who wishes to apply for an operating permit must submit an application to the Commission. The application must contain:

     1.  A general description of the proposed system, including:

     (a) The area to be served;

     (b) The type of service to be provided; and

     (c) The type of system that will be used.

     2.  A detailed description of:

     (a) The proposed service area;

     (b) The proposed operating system; and

     (c) The geothermal resource.

     3.  A statement of the economic feasibility of the proposed system.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.770  Description of service area. (NRS 703.025, 704.210, 704.669)  The detailed description of the area to be served must include:

     1.  A copy of the map which was submitted to the State Engineer with any application for water rights.

     2.  A legal description of the area.

     3.  An explanation of how the geothermal energy will be used. This explanation must specify the uses which will be made of the geothermal energy, for example, heating of spaces, heating of water, heating in industrial processes, and generation of electricity.

     4.  The number and type of customers whom the utility expects to be serving at the end of the 1st, 5th, and 10th years of operation and their heating requirements expressed in British thermal units. The customers must be identified as residential, commercial, industrial, or other.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.772  Description of operating system. (NRS 703.025, 704.210, 704.669)  The detailed description of the proposed operating system must include:

     1.  An explanation of the type of system to be used, including:

     (a) The number, size, depth and productive capacity of the wells and pumps;

     (b) The amount, type and size of the pipelines for transmission and distribution;

     (c) The type of system for heat exchange, together with supporting test data;

     (d) The type of system for injection or water disposal system which will be incorporated into the system;

     (e) The type of facility for water treatment, if any;

     (f) The type of metering system, if any; and

     (g) The type of backup or standby facilities, if any, which the applicant will provide or will require individual customers to provide.

     2.  A map in sufficient detail to show the location of the facilities for production, transmission and distribution, including the wells, pumps, pipelines, heat exchangers, and other components, and their spacing from the service lines of other utilities. This map must be of the same size as the map submitted with the application for water rights.

     3.  A list of all other utilities whose underground systems may be affected by the proposed system, a description of the manner in which each of those systems may be affected, and an explanation of the safety measures which the applicant will take to ensure that those systems will not be adversely affected.

     4.  A statement showing:

     (a) The base and peak loads which the geothermal system is capable of supplying; and

     (b) The applicant’s projections of the base and peak loads which will be supplied during the 1st, 5th and 10th years of operation,

Ê with his or her supporting calculations based on pumping tests and test data on the efficiency of the heat exchangers in terms of British thermal units per hour of output under standard conditions.

     5.  A statement signed by a licensed professional engineer or by an official having responsibility to enforce the local building code, that:

     (a) The calculations of the load and design of the system have been reviewed;

     (b) The calculations of the load appear reasonable; and

     (c) The system is designed in compliance with the applicable codes and has sufficient capacity to meet the projected uses.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.774  Description of geothermal resource. (NRS 703.025, 704.210, 704.669)  The detailed description of the geothermal resource must:

     1.  Be accompanied by a copy of the permit for appropriation, issued by the State Engineer, for each well which the applicant intends to utilize as a source of supply for the proposed system. If the applicant intends to purchase geothermal energy from another person, the applicant must include a copy of the agreement under which he or she will obtain that energy, together with evidence that the person from whom he or she will be obtaining the energy has perfected rights to the geothermal resources from which the energy will be drawn.

     2.  Contain the information needed to define the capacity of the resource, including:

     (a) The results of a pumping test performed on each well, including:

          (1) The flow rate;

          (2) The recorded temperatures;

          (3) The recorded drawdown;

          (4) The date of each pumping test; and

          (5) The duration of each pumping test.

     (b) The results of a gross chemical analysis of a water sample taken from each well 15 minutes before the end of the pumping test.

     3.  Unless specifically waived by the Commission, the application must be accompanied by a statement, signed by a professional geologist, hydrologist, or engineer who has experience in evaluating geothermal resources, that:

     (a) He or she has examined the results of the pumping tests and other relevant information; and

     (b) The resource appears capable of supplying sufficient energy to meet the intended uses.

Ê The statement must be accompanied by any technical and professional evaluations that were used in the expert’s analysis, and an exhibit showing the qualifications of the expert who has signed the statement.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.776  Confidentiality of exploration and subsurface information. (NRS 703.025, 704.210, 704.669)  If any exploratory or subsurface information concerning a project to obtain geothermal energy for use in a process which changes raw or unfinished materials into another form or generates electric power is filed with the Commission, the Commission will keep that information confidential for 5 years after the date on which it was first filed with the State Engineer and will not disclose it during that period without the express written consent of the operator of the project.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.778  Statement of economic feasibility. (NRS 703.025, 704.210, 704.669)  The statement of economic feasibility must include or be accompanied by:

     1.  A detailed statement of the estimated cost of constructing the proposed system, the estimated annual fixed and operating costs of the system, and supporting statements or exhibits showing that the proposed system and its construction are economically feasible.

     2.  A statement or exhibit showing the applicant’s financial ability to render the proposed service, and information regarding the manner in which the applicant proposes to finance the construction and operation of the proposed system. This requirement may be met by a copy of the applicant’s most recent balance sheet and statement of income.

     3.  A statement or exhibit showing the applicant’s managerial and technical qualifications to render the proposed service.

     4.  A statement identifying any federal, state, or local franchise, any water, health, or safety permit, and any permit for construction and operation, which the applicant must obtain before operating the proposed system. This statement must also describe the status of the applicant’s efforts to obtain any such required franchise or permit.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.780  Additional information to be submitted with application. (NRS 703.025, 704.210, 704.669)  In addition to the information required by NAC 704.768 to 704.778, inclusive, an applicant must submit:

     1.  A description in tariff format of the provisions for:

     (a) Rendering bills;

     (b) Acting on applications for service;

     (c) Handling customers’ complaints;

     (d) Acting on requests for binding arbitration; and

     (e) Operating during an emergency.

     2.  A copy of the form of contract which the applicant intends to use to comply with the provisions of paragraph (d) of subsection 3 of NRS 704.669.

     3.  Any further information which is necessary to a full understanding of the application.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

      NAC 704.782  Addendum to contract between utility and customer. (NRS 703.025, 704.210, 704.669)  The information described in subsection 1 of NAC 704.780 must be included as an addendum to the contract required by paragraph (d) of subsection 3 of NRS 704.669, and the addendum must be attached to the contract document provided to each customer of the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 12-16-82)

PROVIDERS OF COMMERCIAL MOBILE RADIO SERVICE

     NAC 704.786  “Commercial mobile radio service” defined. (NRS 703.025, 704.210)  As used in this section and NAC 704.7862 and 704.7864, unless the context otherwise requires, “commercial mobile radio service” has the meaning ascribed to it in 47 C.F.R. § 20.3 as that section existed on January 1, 1998.

     (Added to NAC by Pub. Utilities Comm’n by R048-98, eff. 6-5-98)

      NAC 704.7862  Information to be filed with Commission. (NRS 703.025, 704.210)  A provider of commercial mobile radio service who offers such service or who intends to offer such service within this State shall file a form provided by the Commission that contains information about the provider which includes:

     1.  The legal name;

     2.  Any other name under which commercial mobile radio service will be offered;

     3.  The local business address, if any;

     4.  The business address of the home office, if different from subsection 3;

     5.  The name and address of the designated agent for service of process;

     6.  The name, title, address and telephone number of the person to be contacted concerning complaints of customers;

     7.  The name, title, address and telephone number of each director and principal officer;

     8.  If the provider is affiliated with a business organization that operates in this State, including, without limitation, a corporation, partnership, association, trust or unincorporated organization:

     (a) The name of the affiliated business organization; and

     (b) A description of the relationship between the provider and the affiliated business organization, including, without limitation, whether the affiliated business organization is a regulated public utility;

     9.  A copy of the license issued by the Federal Communications Commission that authorizes the provider to provide commercial mobile radio service in this State; and

     10.  A copy of the certificate of existence from the Secretary of State that indicates incorporation or qualification to do business in this State. If the provider is not required by the Secretary of State to obtain a certificate of existence, a copy of the business license issued by each local government in this State in which the provider does business and which indicates that the provider is qualified to do business within the local government.

     (Added to NAC by Pub. Utilities Comm’n by R048-98, eff. 6-5-98)

      NAC 704.7864  Requirement to file information before initiating service; notification of changes. (NRS 703.025, 704.210)

     1.  A provider of commercial mobile radio service shall file the information required pursuant to NAC 704.7862 before initiating service in this State.

     2.  If any of the information required in NAC 704.7862 changes, the provider of commercial mobile radio service shall notify the Commission, in writing, of the new information within 30 days.

     (Added to NAC by Pub. Utilities Comm’n by R048-98, eff. 6-5-98)

COMPETITIVE NATURAL GAS SERVICE

Distribution Companies and Affiliates

      NAC 704.789  Definitions. (NRS 703.025, 704.210, 704.997, 704.998)  As used in NAC 704.789 to 704.792, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.7891 to 704.7895, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.7891  “Affiliate” defined. (NRS 703.025, 704.210, 704.997, 704.998)  “Affiliate” means a company that:

     1.  Is a branch, division or subsidiary of a distribution company; and

     2.  Provides a potentially competitive or discretionary natural gas service.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99; A by R005-04, 6-21-2004)

      NAC 704.7892  “Customer” defined. (NRS 703.025, 704.210, 704.997, 704.998)  “Customer” means the retail purchaser of natural gas service.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99; A by R047-02, 10-24-2002)

      NAC 704.7893  “Distribution company” defined. (NRS 703.025, 704.210, 704.997, 704.998)  “Distribution company” includes, without limitation, a seller of any noncompetitive component of natural gas service.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99; A by R047-02, 10-24-2002)

      NAC 704.7894  “Noncompetitive service” defined. (NRS 703.025, 704.210, 704.997, 704.998)  “Noncompetitive service” means any natural gas service determined by statute or by the Commission to be unsuitable for purchase by customers from alternative sellers.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99; A by R047-02, 10-24-2002)

      NAC 704.7895  “Potentially competitive service” defined. (NRS 703.025, 704.210, 704.997, 704.998)  “Potentially competitive service” means a component of natural gas service determined by the Commission to be suitable for purchase by customers from alternative sellers.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99; A by R047-02, 10-24-2002)

      NAC 704.7896  Applicability. (NRS 703.025, 704.210, 704.997, 704.998)  NAC 704.789 to 704.792, inclusive:

     1.  Apply to the provision of services as set forth in NRS 704.993 to 704.999, inclusive.

     2.  Do not apply to a public utility that supplies natural gas which is not regulated under an alternative plan established pursuant to NRS 704.997.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99; A by R047-02, 10-24-2002; R043-12, 11-1-2012)

      NAC 704.7897  Provision of potentially competitive service or discretionary service. (NRS 703.025, 704.210, 704.997, 704.998)

     1.  A distribution company may not provide any potentially competitive or discretionary natural gas service.

     2.  An affiliate of a distribution company may provide a potentially competitive or discretionary natural gas service upon approval by the Commission and in accordance with NAC 704.789 to 704.792, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99; A by R047-02, 10-24-2002)

      NAC 704.7898  Business relationship between distribution company and affiliate: Requirements; restrictions. (NRS 703.025, 704.210, 704.997, 704.998)

     1.  An affiliate shall:

     (a) Be a separate corporate entity from the distribution company;

     (b) Operate independently from the distribution company;

     (c) Maintain books, records and accounts in the manner prescribed by the Commission;

     (d) Keep its books, records and accounts separate from the books, records and accounts kept by the distribution company;

     (e) Not have officers, directors or employees in common with the distribution company, except that the chair of the distribution company or of the holding company of the distribution company may serve on the board of directors of the affiliate;

     (f) Not have any member on its board of directors who is also an employee or officer of the distribution company, except as otherwise provided in paragraph (e);

     (g) Not obtain credit pursuant to an arrangement that would allow a creditor, upon default, to have recourse to the assets of the distribution company; and

     (h) Not use office space, office equipment or office services provided by the distribution company, unless the affiliate executes with the distribution company a contract that is approved by the Commission. The affiliate and the distribution company must:

          (1) File the contract with the Commission as a joint application not later than 6 months before the effective date of the contract; and

          (2) Demonstrate to the Commission that the contract:

               (I) Does not circumvent the provisions of NAC 704.789 to 704.792, inclusive;

               (II) Preserves an arm’s length business relationship between the affiliate and the distribution company;

               (III) Does not interfere with the development of effective competition;

               (IV) Will result in minimal risk of anticompetitive behavior by the affiliate or distribution company; and

               (V) Will result in minimal regulatory expenses to prevent anticompetitive behavior.

Ê The contract must not become effective until the Commission approves the contract. Unless the Commission determines otherwise, all office space, office equipment and office services provided by the distribution company pursuant to the contract are subject to the provisions of NAC 704.7901.

     2.  A distribution company shall document and report quarterly to the Commission each occasion that:

     (a) An employee of the distribution company becomes an employee of an affiliate; or

     (b) An employee of an affiliate becomes an employee of the distribution company.

     3.  An employee of a distribution company who is hired by an affiliate:

     (a) Shall not remove proprietary property or information from the distribution company;

     (b) Shall not provide the affiliate with proprietary property or information of the distribution company;

     (c) Shall not use proprietary property or information of the distribution company on behalf of the affiliate; and

     (d) Shall, before he or she becomes an employee of the affiliate, sign a statement indicating that the employee has read and will abide by the restrictions set forth in this section and understands that a violation of a provision of this section could subject him or her to the penalties set forth in NAC 704.7919.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.7899  Distribution company: Designation of officer to evaluate and certify compliance with certain provisions. (NRS 703.025, 704.210, 704.997, 704.998)  A distribution company shall designate an officer to evaluate and certify compliance with NAC 704.789 to 704.792, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.7901  Distribution company: Standards of conduct when dealing with affiliate. (NRS 703.025, 704.210, 704.997, 704.998)  When dealing with an affiliate, a distribution company:

     1.  Shall not discriminate between the affiliate and another entity that competes with the affiliate in the provision or procurement of goods, services, facilities and information, or in the establishment of standards.

     2.  Shall not refuse to provide an entity that is in competition with an affiliate with goods, services, facilities or information which the Commission determines the distribution company is reasonably capable of providing to its affiliate, regardless of whether the distribution company currently offers such goods, services, facilities or information to an affiliate.

     3.  Shall not, when providing or procuring, or declining to provide or procure, goods, services, facilities or information, or when establishing standards, provide, attempt to provide or conspire with another person, including, without limitation, an affiliate, to provide:

     (a) A competitive advantage to an affiliate; or

     (b) A competitive disadvantage to a competitor of an affiliate.

     4.  Shall account for all transactions with each affiliate in accordance with accounting principles designated or approved by the Commission.

     5.  Shall, if it offers to an affiliate a good or service other than a good or service provided by a contract pursuant to paragraph (h) of subsection 1 of NAC 704.7898, offer the same service to all similarly situated nonaffiliated entities.

     6.  Shall, at the same time it offers to an affiliate a good or service other than a good or service provided by contract pursuant to paragraph (h) of subsection 1 of NAC 704.7898, offer the same service to nonaffiliated entities by using the mechanism described in subsection 7.

     7.  Shall provide a mechanism that is accessible to the public, such as an electronic bulletin board, for all interested entities to receive promptly pertinent information concerning:

     (a) Services which the distribution company provides;

     (b) Any discounted services which the distribution company offers to an affiliate; and

     (c) Any transaction between the distribution company and an affiliate.

     8.  Shall not represent that it will provide an affiliate or a customer of an affiliate with different treatment regarding the provision of services as a result of affiliation with the distribution company than the treatment the distribution company provides a nonaffiliated provider of service and its customers.

     9.  Shall not provide an affiliate or a customer of an affiliate with preferences over a nonaffiliated supplier or its customers, including, without limitation, preferences in terms and conditions of service or pricing, or in timing of service.

     10.  Shall apply a tariff provision that allows for discretion in its application in the same manner for an affiliate and customers of the affiliate as it does for another market participant and its customers.

     11.  Shall strictly enforce mandatory tariff provisions.

     12.  Shall not condition or otherwise tie the provision of a utility service or the availability of discounts, rates, other charges, fees, rebates or waivers of terms and conditions to the taking of any goods or services from an affiliate.

     13.  Shall not:

     (a) Refer a potential customer to an affiliate;

     (b) Provide information to an affiliate regarding a potential business arrangement between a potential customer and the affiliate;

     (c) Except as otherwise prescribed by the Commission, acquire information on behalf of or to provide to an affiliate;

     (d) Share with an affiliate a market analysis report, survey, research or any other type of report that is proprietary or not available to the public, including, without limitation, a forecast, planning or strategic report;

     (e) Give an appearance that the distribution company speaks on behalf of an affiliate or that a customer will receive preferential treatment as a consequence of conducting business with an affiliate; or

     (f) Give an appearance to a third party that an affiliate speaks on behalf of the distribution company.

Ê Nothing in this subsection prohibits an affiliate from billing for distribution services in a manner consistent with NAC 704.789 to 704.792, inclusive.

     14.  Shall make any discount or waiver of all or a part of a charge or fee available to all market participants.

     15.  Shall not share the office space, equipment or services of an affiliate or access the computer information systems of an affiliate, unless the affiliate executes a contract with the distribution company that has been approved by the Commission pursuant to the procedures set forth in paragraph (h) of subsection 1 of NAC 704.7898.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.7902  Distribution company: Conditions for provision of information concerning specific customers to affiliate and nonaffiliated entity. (NRS 703.025, 704.210, 704.997, 704.998)  A distribution company shall provide information about specific customers to its affiliates and to nonaffiliated entities:

     1.  On a strictly nondiscriminatory basis;

     2.  Only with the consent of a customer; and

     3.  In accordance with the rules or standards required by the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.7903  Distribution company: Conditions for provision of general information to affiliate. (NRS 703.025, 704.210, 704.997, 704.998)  Information that is not specific to a customer, including, without limitation, information concerning the goods, services, purchases, sales or operations of the distribution company, may be made available to an affiliate only if the distribution company:

     1.  Makes such information contemporaneously available to all alternative sellers at the same price, terms and conditions; and

     2.  Keeps the information open to public inspection.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.7904  Distribution company: Restriction on providing list of alternative sellers. (NRS 703.025, 704.210, 704.997, 704.998)  Except as otherwise authorized by the Commission, a distribution company shall not provide a person with a list of alternative sellers.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.7905  Distribution company: Restriction on offering or providing advice or assistance to customer concerning affiliate or other service provider. (NRS 703.025, 704.210, 704.997, 704.998)  Except as otherwise provided in NAC 704.789 to 704.792, inclusive, a distribution company shall not offer or provide a customer with advice or assistance of any kind regarding an affiliate or another service provider.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.7906  Distribution company: Maintenance of certain records; availability for review by third parties. (NRS 703.025, 704.210, 704.997, 704.998)  A distribution company shall:

     1.  Keep for at least 3 years a record documenting a transaction with an affiliate, including, without limitation, a record documenting:

     (a) A waiver of a tariff;

     (b) A waiver of a contract provision;

     (c) A discount given by the distribution company to the affiliate; and

     (d) Contracts or related bids for the provision of work, products or services for or from an affiliate.

     2.  Make the records that the distribution company is required to maintain pursuant to subsection 1 available for review by third parties upon notice of at least 72 hours, unless the distribution company makes a different agreement with a third party concerning the review of the record.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.7907  Distribution company: Duties related to provision of services to affiliate or nonaffiliated entity. (NRS 703.025, 704.210, 704.997, 704.998)  Except as otherwise stated in its approved tariff, a distribution company:

     1.  Shall fulfill a request from a nonaffiliated entity for service within a period no longer than the period in which it fulfills such a request for itself or for an affiliate;

     2.  Shall charge each affiliate an amount for service that is no less than the amount charged to any nonaffiliated entity for the same service;

     3.  May, in accordance with the provisions of paragraph (h) of subsection 1 of NAC 704.7898, provide an affiliate with facilities, services and information if the distribution company makes such facilities, services and information available to all nonaffiliated entities at the same rates and on the same terms and conditions and the costs are allocated in a manner acceptable to the Commission;

     4.  May not market or sell services that are provided by an affiliate; and

     5.  May not state that it is an affiliate of a potentially competitive or discretionary service unless the statement complies with the requirements set forth in paragraph (c) of subsection 1 of NAC 704.7913.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.7908  Provision of discount, rebate or other waiver of charge or fee to affiliate by distribution company: Notice; contents. (NRS 703.025, 704.210, 704.997, 704.998)

     1.  If a distribution company provides an affiliate with a discount, rebate or other waiver of a charge or fee, the distribution company shall, at the time the service for which the distribution company is giving the discount, rebate or other waiver of a charge or fee is first provided, post on the electronic bulletin board of the distribution company a notice which includes, without limitation:

     (a) The name of the affiliate involved in the transaction;

     (b) The actual rate charged by the distribution company;

     (c) The maximum rate that the distribution company may charge pursuant to its tariff;

     (d) The period during which the discount or waiver applies;

     (e) The quantities involved in the transaction;

     (f) The delivery points involved in the transaction;

     (g) Any conditions or requirements applicable to the discount or waiver; and

     (h) The procedures through which a nonaffiliated entity may request and receive a comparable discount, rebate or other waiver of a charge or fee.

     2.  This section does not provide a distribution company with any authority not otherwise existing to grant a discount, rebate or other waiver of a charge or fee.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.7909  Provision of discount, rebate or other waiver of charge or fee to affiliate by distribution company: Requirements for maintenance of records. (NRS 703.025, 704.210, 704.997, 704.998)

     1.  A distribution company that provides an affiliate with a discounted rate, rebate or other waiver of a charge or fee for a service shall, for each billing period, maintain in its records:

     (a) The name of the affiliate to which the distribution company is providing services pursuant to the transaction;

     (b) A description of the role of the affiliate in the transaction, including, without limitation, whether the affiliate will act as a transporter, marketer, supplier or seller;

     (c) The duration of the discount or waiver;

     (d) The maximum rate that the distribution company may charge pursuant to its tariff;

     (e) The rate or fee that the distribution company charges during the billing period; and

     (f) The quantity of products or services scheduled at the discounted rate during the billing period for each delivery point.

     2.  All records maintained pursuant to this section must also conform to rules of the Federal Energy Regulatory Commission, where applicable.

     3.  This section does not provide the distribution company with any authority not otherwise existing to grant such discount, rebate or other waiver of a charge or fee.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.791  Audit of distribution company with affiliate: Requirements. (NRS 703.025, 704.210, 704.997, 704.998)

     1.  Unless the Commission specifies otherwise, a distribution company with an affiliate shall obtain and pay for an audit 6 months after the affiliate first provides service to customers and once every year thereafter.

     2.  The audit required pursuant to subsection 1 must be conducted by an independent auditor selected by the Commission.

     3.  The auditor shall determine whether a distribution company has complied with all pertinent regulations, including, without limitation, whether the distribution company has:

     (a) Complied with the separate accounting requirements set forth in NAC 704.7898; and

     (b) Provided information or services to affiliated and nonaffiliated entities on a nondiscriminatory basis.

     4.  The auditor shall submit the results of the audit to the Commission.

     5.  The Commission will make the results of the audit available for public inspection.

     6.  Any person may submit comments on the final audit report.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.7911  Audit of distribution company with affiliate: Access to certain records. (NRS 703.025, 704.210, 704.997, 704.998)  For purposes of conducting an audit pursuant to NAC 704.791, the distribution company and its affiliates shall provide the independent auditor, the Commission staff, the Bureau of Consumer Protection in the Office of the Attorney General and the Commission access to:

     1.  Financial accounts and records which:

     (a) Verify that the transactions conducted between the distribution company and its affiliates are authorized by and conducted in accordance with the provisions of NRS 704.993 to 704.999, inclusive, and NAC 704.789 to 704.792, inclusive; and

     (b) Relate to the regulation of rates;

     2.  All records in any form relating to the provision of information or services to affiliated or nonaffiliated entities; and

     3.  The working papers and supporting materials of any auditor who performed an audit pursuant to NAC 704.791.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99; A by R047-02, 10-24-2002)

      NAC 704.7912  Requirements for pricing goods or services transferred by distribution company or affiliate. (NRS 703.025, 704.210, 704.997, 704.998)

     1.  If a distribution company transfers goods or services to an affiliate, the distribution company must price the goods or services at fair market value or fully loaded cost, whichever is higher.

     2.  If an affiliate transfers goods or services to the distribution company, the affiliate shall price the goods or services at fair market value or fully loaded cost, whichever is less.

     3.  As used in this section, “fully loaded cost” means the direct costs of goods and services plus all applicable indirect charges and overhead costs, including, without limitation, a reasonable rate of return.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.7913  Affiliate: Standards of conduct. (NRS 703.025, 704.210, 704.997, 704.998)

     1.  An affiliate:

     (a) Shall not market or otherwise sell services jointly with the distribution company;

     (b) Shall not use space in the correspondence of the distribution company or any other form of information about the distribution company for the purpose of advertising the services of the affiliate; and

     (c) Shall not advertise its affiliation with the distribution company, unless the affiliate includes each of the following statements in a manner no less prominent than the statement of affiliation:

          (1) (Name of the affiliate) is not the same corporation as (name of distribution company). (Name of affiliate) has separate management and separate employees.

          (2) (Name of affiliate)’s affiliation with (name of distribution company) does not entitle (name of affiliate) to any special endorsement of the Public Utilities Commission of Nevada.

          (3) The safety, reliability and cost of distribution service received by customers of (name of affiliate) will be equivalent to that received by customers of nonaffiliated companies.

     2.  For the purposes of this section, the term “advertise” does not include the use, pursuant to NRS 704.997, of the name or logo, or both, of the distribution company by the affiliate.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99; A by R005-04, 6-21-2004)

      NAC 704.7914  Affiliate: Conditions for offering goods or services. (NRS 703.025, 704.210, 704.997, 704.998)  An affiliate of a distribution company shall not offer goods or services until the affiliate satisfies any applicable requirements set forth in NAC 704.789 to 704.792, inclusive, except the appointment of an auditor pursuant to NAC 704.791.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.7915  Violations: Generally. (NRS 703.025, 704.210, 704.997, 704.998)  Each transaction that violates the provisions of NAC 704.789 to 704.792, inclusive, will be considered a separate violation.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.7916  Violations: Procedures for processing complaints. (NRS 703.025, 704.210, 704.997, 704.998)

     1.  A person or business may complain to the Commission or distribution company in writing, setting forth any act or thing allegedly done or not done by a distribution company or affiliate in violation of NAC 704.789 to 704.792, inclusive.

     2.  Upon request of a complainant who is a current or former employee of a distribution company or an affiliate, the Commission will maintain the confidentiality of the complainant until the end of any resulting investigation or longer if the Commission deems it necessary.

     3.  The distribution company shall refer all complaints, whether written or oral, to a designated representative of the distribution company, who shall:

     (a) Acknowledge receipt of the complaint in writing to the complainant within 5 working days after receiving the complaint;

     (b) Prepare a written summary of the complaint which must include, without limitation:

          (1) The name of the complainant; and

          (2) A detailed factual report of the complaint, including, without limitation:

               (I) The relevant dates;

               (II) The names of the companies involved;

               (III) The names of the employees involved; and

               (IV) The details of the claim;

     (c) Conduct a preliminary investigation; and

     (d) Communicate the results of the preliminary investigation, including, without limitation, a description of any course of action that was taken as a result of the investigation, in writing to the complainant not more than 20 business days after the designated representative received the complaint.

     4.  The distribution company shall:

     (a) Maintain a public log of all new, pending and resolved complaints; and

     (b) Make the public log available to the Commission and the Bureau of Consumer Protection in the Office of the Attorney General not more than 10 business days after the end of each month, which must include, without limitation:

          (1) A written summary of each complaint; and

          (2) A written summary of the manner in which each complaint was resolved or, if applicable, an explanation of the reason why a complaint is still pending.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.7917  Violations: Investigation of complaint; notice and hearing. (NRS 703.025, 704.210, 704.997, 704.998)

     1.  The Division of Consumer Complaint Resolution shall investigate any complaint concerning a violation of the provisions of NAC 704.789 to 704.792, inclusive, in the manner set forth in NRS 703.310.

     2.  If the Division transmits a complaint to the Commission and the Commission determines that probable cause exists for the complaint, the Commission will:

     (a) Order that a hearing be held;

     (b) Provide notice of the hearing to the parties; and

     (c) Conduct the hearing as it would any other hearing.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.7918  Enforcement of provisions or order of Commission. (NRS 703.025, 704.210, 704.997, 704.998)  After a hearing has been held pursuant to NAC 704.7917, the Commission, when enforcing the provisions of NAC 704.789 to 704.792, inclusive, or an order of the Commission that relates to NAC 704.789 to 704.792, inclusive, may, without limitation:

     1.  Terminate a transaction if the violation caused material harm to the competitive market;

     2.  Prospectively limit or restrict the amount, percentage or value of transactions entered into between a distribution company and its affiliates;

     3.  Assess a penalty pursuant to the provisions of NAC 704.7919; or

     4.  Apply any other remedy which is available to the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.7919  Penalties: Generally. (NRS 703.025, 704.210, 704.997, 704.998)

     1.  A penalty assessed by the Commission must reflect the actual or potential injury, or both, to ratepayers and competitors, and the gravity of the violation.

     2.  Repeated violations will require more severe penalties.

     3.  In addition to any other penalties, the Commission may subject a distribution company to a penalty of not more than $20,000 for each time the distribution company:

     (a) Violates a provision of NAC 704.789 to 704.792, inclusive;

     (b) Fails to perform a contractual duty; or

     (c) Fails, neglects or refuses to obey an order, regulation, directive or requirement of the Commission.

     4.  Penalties for a supplier of a noncompetitive natural gas distribution service are limited pursuant to the provisions of NRS 703.380.

     5.  The Commission may deem a violation that continues for more than 1 day to be a separate violation for each day the violation continues.

     6.  A penalty or other remedy imposed by the Commission will in no manner preclude the right of a party to pursue a private action in a court of competent jurisdiction.

     7.  A fine or penalty collected pursuant to the provisions of NAC 704.789 to 704.792, inclusive, must be deposited in the State Treasury pursuant to NRS 703.147 for the purposes identified therein.

     8.  For each violation of the provisions of NAC 704.789 to 704.792, inclusive, the affiliate shall include in one monthly billing packet a notice, written by the Commission, that informs the public of the substance of the violation and explains how members of the public can report similar violations in the future.

     9.  The penalties set forth in this section do not preclude any other penalty from being imposed pursuant to NAC 704.789 to 704.792, inclusive, or any other provision of law.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

      NAC 704.792  Penalties: Repeated violations. (NRS 703.025, 704.210, 704.997, 704.998)

     1.  If the Commission finds in two separate orders that a distribution company has materially violated the provisions of NAC 704.789 to 704.792, inclusive, more than twice in a period of 12 months, the distribution company may not, for 1 year after the date of the findings by the Commission, enter into a transaction with an affiliate that was involved in the violations.

     2.  If a distribution company violates the provisions of subsection 1 by entering into a prohibited transaction with an affiliate, the Commission may:

     (a) Extend the period in which the distribution company is prohibited from entering into a transaction with the affiliate; or

     (b) Permanently prohibit the distribution company from entering into a transaction with the affiliate.

     3.  The penalties set forth in this section do not preclude any other penalty from being imposed pursuant to NAC 704.789 to 704.792, inclusive, or any other provision of law.

     (Added to NAC by Pub. Utilities Comm’n by R087-98, eff. 2-3-99)

Potentially Competitive Services

      NAC 704.793  Definitions. (NRS 703.025, 704.210, 704.997, 704.998)  As used in NAC 704.793 to 704.7947, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.7931, 704.7933 and 704.7935 have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R101-98, eff. 9-2-98)

      NAC 704.7931  “Effective competition” defined. (NRS 703.025, 704.210, 704.997, 704.998)  “Effective competition” means, with respect to a particular service, a market structure and a process under which an individual seller is not able to influence significantly the price of the service as a result of:

     1.  The number of sellers of the service;

     2.  The size of each seller’s share of the market;

     3.  The ability of the sellers to enter or exit the market; and

     4.  The price and availability of comparable substitutes for the service.

     (Added to NAC by Pub. Utilities Comm’n by R101-98, eff. 9-2-98)

      NAC 704.7933  “Person” defined. (NRS 703.025, 704.210, 704.997, 704.998)  “Person” means a natural person, corporation, partnership, public utility, government, governmental agency or political subdivision of a government.

     (Added to NAC by Pub. Utilities Comm’n by R101-98, eff. 9-2-98)

      NAC 704.7935  “Potentially competitive service” defined. (NRS 703.025, 704.210, 704.997, 704.998)  “Potentially competitive service” has the meaning ascribed to it in NRS 704.996.

     (Added to NAC by Pub. Utilities Comm’n by R101-98, eff. 9-2-98)

      NAC 704.7937  Applicability. (NRS 703.025, 704.210, 704.997, 704.998)  NAC 704.793 to 704.7947, inclusive, do not apply to services provided to generating, industrial and large commercial customers pursuant to NRS 704.075.

     (Added to NAC by Pub. Utilities Comm’n by R101-98, eff. 9-2-98)

      NAC 704.7939  Requirements for classification of natural gas service as potentially competitive service. (NRS 703.025, 704.210, 704.997, 704.998)

     1.  A person may request that the Commission classify a natural gas service as a potentially competitive service.

     2.  A request made pursuant to subsection 1 must be submitted in writing to the Commission and must:

     (a) Identify and fully describe the natural gas service to be classified as a potentially competitive service, including, without limitation, a description of:

          (1) The technical and common names of the service;

          (2) The facilities, personnel and any other resources that are being used or will be used to provide the service;

          (3) Any other components of a natural gas service that are necessary to provide the service to be classified as a potentially competitive service;

          (4) The geographic market area for which the classification is being sought;

          (5) The nature and extent of the market in which the service is being provided or will be provided, including, without limitation:

               (I) The classes of customers to whom the service will be provided; and

               (II) The source of revenues for the service;

     (b) Set forth any fact that is favorable to classifying the service as a potentially competitive service, including, without limitation, any fact that demonstrates that provision of the service by alternative sellers:

          (1) Will not unduly harm a class of customers;

          (2) Will decrease the cost of providing the service to customers in this State or increase the quality or innovation of the service to customers in this State;

          (3) Is a service for which effective competition in the market is likely to develop;

          (4) Will advance the competitive position of this State relative to surrounding states; and

          (5) Will not otherwise jeopardize the safety and reliability of the natural gas service in this State; and

     (c) Contain an acknowledgment that a copy of the request has been served upon any existing provider of the service to be classified as a potentially competitive service.

     (Added to NAC by Pub. Utilities Comm’n by R101-98, eff. 9-2-98)

      NAC 704.794  Classification of natural gas service as potentially competitive service limited to certain boundaries. (NRS 703.025, 704.210, 704.997, 704.998)  The Commission will limit the classification of a natural gas service as a potentially competitive service to the boundaries of the certificated service area of a single natural gas utility.

     (Added to NAC by Pub. Utilities Comm’n by R101-98, eff. 9-2-98)

      NAC 704.7941  Natural gas service is classified as potentially competitive service under certain circumstances. (NRS 703.025, 704.210, 704.997, 704.998)  If the Commission receives a request to classify a natural gas service as a potentially competitive service and the request satisfies the requirements set forth in NAC 704.7939, the Commission will classify the service as a potentially competitive service.

     (Added to NAC by Pub. Utilities Comm’n by R101-98, eff. 9-2-98)

      NAC 704.7943  Natural gas service is noncompetitive service under certain circumstances. (NRS 703.025, 704.210, 704.997, 704.998)  A natural gas service that is not classified as a potentially competitive, competitive or discretionary service, or that has been determined by statute or the Commission to be unsuitable for purchase by customers from alternative sellers, is a noncompetitive service.

     (Added to NAC by Pub. Utilities Comm’n by R101-98, eff. 9-2-98)

      NAC 704.7945  Establishment of alternative plan of regulation. (NRS 703.025, 704.210, 704.997, 704.998)  Once the Commission has classified a natural gas service as potentially competitive, the Commission will establish an alternative plan of regulation for the service.

     (Added to NAC by Pub. Utilities Comm’n by R101-98, eff. 9-2-98)

      NAC 704.7947  Determination of effective competition in market for natural gas service. (NRS 703.025, 704.210, 704.997, 704.998)  The Commission will:

     1.  Monitor the market for a natural gas service that it has classified as potentially competitive to determine whether effective competition is occurring in the market;

     2.  Classify a natural gas service as competitive upon determining that effective competition is occurring in the market for a natural gas service which the Commission has previously classified as potentially competitive; and

     3.  Remove any provisions contained in an alternative plan of regulation established pursuant to NAC 704.7945 that the Commission finds are no longer necessary upon determining that effective competition is occurring in the market for a natural gas service.

     (Added to NAC by Pub. Utilities Comm’n by R101-98, eff. 9-2-98)

Alternative Sellers

      NAC 704.79501  Definitions. (NRS 703.025, 704.210, 704.997, 704.998)  As used in NAC 704.79501 to 704.79545, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.79503 to 704.79521, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79503  “Affiliate” defined. (NRS 703.025, 704.210, 704.997, 704.998)  “Affiliate” means any entity which provides natural gas or services related to the provision of natural gas in the United States and which controls, is controlled by or is under common control with any other entity.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79505  “Alternative seller” defined. (NRS 703.025, 704.210, 704.997, 704.998)  “Alternative seller” has the meaning ascribed to it in NRS 704.994.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79507  “Discretionary service” defined. (NRS 703.025, 704.210, 704.997, 704.998)  “Discretionary service” means the sale of natural gas to end-use customers eligible to be served under a tariff for transportation service approved by the Commission or under a schedule or contract pursuant to NAC 704.518.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79509  “End-use customer” defined. (NRS 703.025, 704.210, 704.997, 704.998)  “End-use customer” means a retail customer of potentially competitive service.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79511  “Generating customer” defined. (NRS 703.025, 704.210, 704.997, 704.998)  “Generating customer” has the meaning ascribed to it in NRS 704.075.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79513  “Industrial customer” defined. (NRS 703.025, 704.210, 704.997, 704.998)  “Industrial customer” has the meaning ascribed to it in NRS 704.075.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79515  “Large commercial customer” defined. (NRS 703.025, 704.210, 704.997, 704.998)  “Large commercial customer” has the meaning ascribed to it in NRS 704.075.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79517  “Local distribution company” defined. (NRS 703.025, 704.210, 704.997, 704.998)  “Local distribution company” means a public utility that provides distribution services relating to natural gas within its authorized service territory pursuant to its certificate of public convenience and necessity.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79519  “Potentially competitive service” defined. (NRS 703.025, 704.210, 704.997, 704.998)  “Potentially competitive service” has the meaning ascribed to it in NRS 704.996.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79521  “Residential and small commercial customer” defined. (NRS 703.025, 704.210, 704.997, 704.998)  “Residential and small commercial customer” means any customer other than a generating, industrial or large commercial customer.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79523  Application for license of certain alternative sellers of discretionary services. (NRS 703.025, 704.210, 704.997, 704.998)  To obtain a license to provide discretionary service as an alternative seller to generating, industrial or large commercial customers, an applicant must submit an affidavit to the Commission which states that the applicant will provide only discretionary services to generating, industrial or large commercial customers.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79525  Applicability of provisions. (NRS 703.025, 704.210, 704.997, 704.998)  The provisions of NAC 704.79527 to 704.79545, inclusive, apply to alternative sellers of potentially competitive services.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79527  Application for license as alternative seller of potentially competitive service. (NRS 703.025, 704.210, 704.997, 704.998)  A person who wishes to provide a potentially competitive service as an alternative seller must apply to the Commission for a license to be an alternative seller. The application must include:

     1.  The legal name of the applicant and all other names under which the applicant is doing business in the United States.

     2.  The current telephone number, mailing address and physical street address of the applicant.

     3.  The type of business entity that the applicant is organized as and the date on which, and the place where, the business entity was formed.

     4.  A copy of each business license and certificate issued by this State and any local government within this State authorizing the applicant to conduct business in this State.

     5.  A list and description of all affiliates of the applicant which provide natural gas or services related to the provision of natural gas in the United States.

     6.  The names and business addresses of:

     (a) The officers, directors or partners of the applicant; or

     (b) The members of the applicant, if the applicant is a limited-liability company.

     7.  The telephone number of the department or person responsible for providing customer service for the applicant.

     8.  The name, title and telephone number of the regulatory contact person for the applicant.

     9.  The name, title and address of the registered agent of the applicant in Nevada for service of process.

     10.  The most recent annual report filed with the Securities and Exchange Commission, if any.

     11.  A disclosure of all:

     (a) Civil, criminal and regulatory sanctions and penalties imposed within the previous 5 years pursuant to any state or federal law or regulation relating to consumer protection on:

          (1) The applicant or any affiliates thereof;

          (2) Any officer, director or partner of the applicant, or any affiliate thereof; and

          (3) If the applicant is a limited-liability company, any member of the applicant; and

     (b) Felony convictions within the previous 5 years that relate to the business of the applicant or an affiliate thereof, of:

          (1) Any officer, director or partner of the applicant or any affiliate thereof; and

          (2) If the applicant is a limited-liability company, any member of the applicant.

     12.  A list of each potentially competitive service the applicant expects to offer, the date on which the applicant intends to begin marketing activities associated with the provision of each such service and the date on which the applicant expects to begin providing each such service.

     13.  The names of the local distribution companies in whose service territories the applicant intends to market the potentially competitive services.

     14.  A demonstration of the ability of the applicant to provide the potentially competitive services proposed in its application, including, without limitation, prior experience in the provision of the services and the qualifications of the technical personnel at the executive and managerial levels who will be responsible for the provision of the services.

     15.  If the applicant intends to provide or market any potentially competitive service through a contractor:

     (a) A description of each type of service to be provided or marketed through the contractor and of the group of customers to whom the service will be provided or marketed; and

     (b) The name and telephone number of the contractor and a contact person for the contractor.

     16.  If the applicant is applying to provide any gas supply or retail procurement service, evidence of creditworthiness showing that the applicant is capable of complying with NAC 704.79529.

     17.  If the applicant is currently providing, or has provided in the previous 5 years, any services relating to the provision of natural gas in any jurisdiction in the United States other than Nevada:

     (a) A list of all applicable certificates, registrations and licenses, with the associated document numbers, currently held, or held in the previous 5 years, in those jurisdictions authorizing the applicant to provide natural gas and services related to the provision of natural gas in those jurisdictions; and

     (b) A brief description of the services provided in each such jurisdiction.

Ê If the applicant is not currently providing, and has not provided in the previous 5 years, any services related to the provision of natural gas in any jurisdiction in the United States other than Nevada, the applicant shall so state on the application.

     18.  A toll-free number for the applicant’s customer service.

     19.  If the applicant or any of its affiliates has ever engaged in the provision of services relating to the provision of natural gas in this or any other state, a report of all instances of lapses in standards of reliability within the previous 3 years that were determined to be the fault of the applicant or affiliate, including, without limitation, unplanned outages, failures to meet service obligations and any other deviations from the standards of reliability. The report must include for each instance of such a lapse:

     (a) A description of the lapse in the standards of reliability, including, without limitation, the duration and cause of the lapse;

     (b) The number of customers affected by the lapse;

     (c) Any reports, findings or issuances by regulators relating to the lapse;

     (d) A description of any penalties imposed on the applicant or affiliate because of the lapse; and

     (e) A statement of whether the problem that caused the lapse was solved and, if so, a description of the remedy.

     20.  If the applicant plans to use an outside company to solicit individual customers on behalf of the applicant in person, by telephone or electronically:

     (a) The name and telephone number of the company; and

     (b) The name of the contact person for the company.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79529  Bond rating or security deposit requirement; amount of security deposit. (NRS 703.025, 704.210, 704.997, 704.998)

     1.  Except as otherwise provided in subsection 2, an alternative seller that provides gas supply or retail procurement service shall have and maintain a long-term bond rating, or other senior debt rating, of at least BBB- or an equivalent rating as determined by Standard & Poor’s Ratings Services or another recognized debt rating service in the United States or Canada.

     2.  In lieu of having and maintaining the long-term bond rating or other senior debt rating required pursuant to subsection 1, an alternative seller that provides gas supply or retail procurement service may maintain a security deposit that is made payable to the Commission. The security deposit must be in the form of:

     (a) A renewable surety bond issued by a major insurance company; or

     (b) A guarantee with a guarantor possessing a credit rating of Baa2 or higher from Moody’s Investor’s Service or BBB or higher from Standard and Poor’s Ratings Services, Fitch IBCA or Duff & Phelps Credit Rating Company, except that if the Commission determines that a material change in the creditworthiness of the guarantor has occurred, the Commission may require the alternative seller to use a different guarantor.

     3.  The security deposit required pursuant to subsection 2 is an amount equal to the revenue required to provide service to the customers of the alternative seller for 2 months pursuant to NRS 704.999, except that the initial security deposit required is the greater of $250,000 or an amount calculated by using the rates for service set forth in the tariffs filed pursuant to NRS 704.999 multiplied by a good faith estimate of the expected volume of natural gas service to be provided by the alternative seller during its first 2 months of operation. The alternative seller shall, every 6 months after the date on which it first provides service to customers, update the security deposit based on the average volume of natural gas provided by the alternative seller to customers during that 6-month period.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79531  Acceptable securities: Amounts; adjustments. (NRS 703.025, 704.210, 704.997, 704.998)

     1.  At least 10 business days before filing its first service request form with a local distribution company, a licensed alternative seller must:

     (a) Post a cash security deposit of $10,000 with the local distribution company;

     (b) Post a financial guarantee bond or other form of insurance in an amount of $10,000, which is payable to the local distribution company; or

     (c) Open a customer trust account in the amount of $10,000, in a bank or other financial institution which is federally insured or otherwise authorized to do business in this State.

     2.  A financial guarantee bond posted as security pursuant to subsection 1 must carry an endorsement that allows the issuer of the bond or the insurer to pay such amounts, and in such a manner, as ordered by the Commission. Any form of security provided pursuant to subsection 1 must be for the exclusive protection of residential and small commercial customers in Nevada.

     3.  The security posted pursuant to this section must be increased by an amount equal to $100 for each residential or small commercial customer of the alternative seller in excess of the first 100 such customers enrolled into the service of the alternative seller, as adjusted quarterly by the local distribution company. Additional deposits are not required after 1,000 such customers are enrolled. Upon request, a licensed alternative seller shall provide information on the number of its customers to the local distribution company in a timely manner.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79533  Documentation required before requesting payment or providing service. (NRS 703.025, 704.210, 704.997, 704.998)

     1.  At least 10 business days before requesting or accepting any fees, deposits or other payments of any kind from any residential or small commercial customer located in Nevada, a licensed alternative seller must file with the Commission proof that the local distribution company serving the territory in which the alternative seller intends to provide service has authorized the alternative seller to file service request forms pursuant to the distribution tariff of the local distribution company. Before providing any potentially competitive service, an alternative seller must file with the Commission any other documentation that the Commission requests regarding the provision of that service.

     2.  The provisions of this section do not preclude a licensed alternative seller from advertising or accepting enrollments for any service that it has been licensed by the Commission to sell before satisfying the requirements of subsection 1.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79535  Contract with customer conditioned on compliance with provisions. (NRS 703.025, 704.210, 704.997, 704.998)  Any contract entered into by an alternative seller with a customer must be conditioned on the compliance of the alternative seller with NAC 704.79501 to 704.79545, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79537  Compliance with certain rules, procedures and obligations. (NRS 703.025, 704.210, 704.997, 704.998)  An alternative seller shall comply with all:

     1.  Applicable rules and procedures of any governmental or private institution charged with ensuring the reliability of the natural gas system; and

     2.  Obligations that the Commission may impose to ensure sufficient availability of capacity of the alternative seller.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79539  Compliance with generally accepted technical protocols and regulations. (NRS 703.025, 704.210, 704.997, 704.998)  An alternative seller that applies to provide any potentially competitive service shall comply with generally accepted technical protocols and regulations relating to the provision of that service, as required by the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79541  Certain changes in application information to be reported to Commission; prior authorization required for change of business name. (NRS 703.025, 704.210, 704.997, 704.998)

     1.  A licensed alternative seller shall inform the Commission of any change in the name, address or telephone number of the licensed alternative seller, and of any change of its registered agent in Nevada for service of process, within 20 business days after the change occurs.

     2.  A licensed alternative seller shall update the information contained in its application within 20 business days after a change in the information if the change:

     (a) Materially reduces the financial condition or technical capabilities of the licensed alternative seller; or

     (b) Involves any civil, criminal or regulatory sanctions or penalties that have been imposed by any state, or involves felony convictions in any state.

     3.  A licensed alternative seller shall not change its name or the name under which it conducts business in this State without obtaining the prior authorization of the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79543  Grounds for denial, revocation, suspension or limitation of license; notification; hearing; determination of Commission; summary suspension; reapplication for license. (NRS 703.025, 704.210, 704.997, 704.998)

     1.  After notice and opportunity for hearing, the Commission may deny an application of an alternative seller for licensure, or if a license has been issued to the alternative seller, revoke, suspend or limit the license, or place the license on probationary status, if:

     (a) The alternative seller, or any officer, director or executive of the alternative seller, provides information in its application that is materially incomplete, false or misleading, or fails to update the application in a timely manner;

     (b) The alternative seller or any affiliate thereof, or any officer, director or executive of the alternative seller or affiliate, violates any applicable provision of NRS 704.993 to 704.999, inclusive, or any applicable regulation of the Commission;

     (c) The alternative seller or any affiliate thereof has engaged in any activity that is inconsistent with effective competition;

     (d) The alternative seller or any affiliate thereof, or:

          (1) Any officer, director or partner of the alternative seller or affiliate; or

          (2) If the alternative seller is a limited-liability company, any member of the alternative seller,

Ê violates any state or federal law relating to consumer protection or is convicted of a felony related to the business of the alternative seller or affiliate; or

     (e) The alternative seller possesses physical or financial resources that are or have become inadequate to ensure compliance with all of its responsibilities pursuant to NRS 704.993 to 704.999, inclusive, or any applicable regulation of the Commission, or if the services provided by the alternative seller under its license or its ability to perform the services which are the subject of its application are inadequate.

     2.  In addition to any other penalties that may apply, a licensed alternative seller that violates any applicable provision of NRS 704.993 to 704.999, inclusive, or any applicable regulation of the Commission, is subject to the penalties set forth in NRS 703.380.

     3.  The Commission may suspend the license of an alternative seller in accordance with NRS 233B.127 if the alternative seller fails to submit:

     (a) Any information required to be submitted pursuant to any applicable regulation of the Commission; or

     (b) Any relevant information ordered by the Commission,

Ê until such time as the alternative seller submits the required information.

     4.  If the Commission finds that there is probable cause that an alternative seller has violated any provision of this chapter or chapter 703 of NAC, the Commission will:

     (a) Notify the alternative seller by certified mail and describe the evidence of the violation;

     (b) Issue a public notice for a hearing;

     (c) Hold a public hearing on the matter; and

     (d) If, based on the findings of fact and the evidence presented at the hearing, the Commission determines that a violation has occurred, issue a decision which may include the imposition of penalties.

     5.  If the Commission finds that public health, safety or welfare imperatively requires that emergency action be taken, the Commission may, pursuant to subsection 3 of NRS 233B.127, order a summary suspension of the license of the alternative seller pending expedited proceedings for revocation of the license or other action to be taken against the alternative seller.

     6.  An alternative seller whose license has been revoked is not precluded from filing an application for a new license and attempting to demonstrate the fitness of the alternative seller and its ability to comply with all of the applicable regulations and rules of the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

      NAC 704.79545  Application signed by authorized officer of applicant attesting to truth of information contained therein. (NRS 703.025, 704.210, 704.997, 704.998)

     1.  An application for a license as an alternative seller must be signed by an officer of the applicant who has appropriate authority attesting, under penalty of perjury, that all information supplied on the application is true and correct and that, once licensed, the officer will ensure, to the best of his or her ability, that the alternative seller will comply with all applicable regulations of the Commission.

     2.  The signature of the officer on an application constitutes a representation that:

     (a) The person signing the application has read the application;

     (b) To the best of his or her knowledge, there are good grounds to support the application; and

     (c) The information in the application is true to the best of his or her knowledge and belief.

     (Added to NAC by Pub. Utilities Comm’n by R103-99, eff. 12-2-99)

Cost Recovery for Replacement of Existing Natural Gas Pipelines and Related Infrastructure

      NAC 704.796  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.796 to 704.7985, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.7961 to 704.7971, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7961  “Early-vintage plastic pipe” defined. (NRS 703.025, 704.210)

     1.  “Early-vintage plastic pipe” means any natural gas pipeline which is composed of a material that the Pipeline and Hazardous Materials Safety Administration of the United States Department of Transportation has prohibited from future use as a material in newly constructed pipeline, including, without limitation:

     (a) Pipeline composed of acrylonitrile butadiene styrene, cellulose acetate butyrate, polybutylene, polyvinyl chloride or any other nonpolyethylene plastic used as a material for pipeline before January 1, 1990; and

     (b) Century Utility Products medium-density polyethylene produced after January 1, 1970, and before January 1, 1975, DuPont Aldyl A medium-density polyethylene and 3306 high-density polyethylene.

     2.  The term does not include any natural gas pipeline which is composed of a material that is identified by the Pipeline and Hazardous Materials Safety Administration of the United States Department of Transportation as an acceptable material pursuant to 49 C.F.R. §§ 192.7 and 192.59.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7962  “Early-vintage steel pipe” defined. (NRS 703.025, 704.210)  “Early-vintage steel pipe” means any natural gas pipeline composed of steel which was installed in a natural gas system before January 1, 1971.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7963  “Gas infrastructure replacement” defined. (NRS 703.025, 704.210)  “Gas infrastructure replacement” means the proposed replacement of any nonrevenue-producing natural gas pipeline through a gas infrastructure replacement mechanism, including, without limitation, the replacement of master meter systems, early-vintage plastic pipe, early-vintage steel pipe or any other gas infrastructure replacement project authorized by the Commission for the purpose of addressing a safety and reliability concern that justifies replacement on an accelerated basis and that would otherwise serve the public interest.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7964  “Gas infrastructure replacement advance application” and “advance application” defined. (NRS 703.025, 704.210)  “Gas infrastructure replacement advance application” or “advance application” means an application filed by a gas utility seeking a determination by the Commission authorizing the recovery of the cost of one or more gas infrastructure replacement projects through a gas infrastructure replacement mechanism.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7965  “Gas infrastructure replacement mechanism” and “replacement mechanism” defined. (NRS 703.025, 704.210)  “Gas infrastructure replacement mechanism” or “replacement mechanism” means the accounting procedure through which a gas utility may, between general rate cases, recover the revenue requirement associated with one or more gas infrastructure replacement projects.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7966  “Gas infrastructure replacement project” and “replacement project” defined. (NRS 703.025, 704.210)  “Gas infrastructure replacement project” or “replacement project” means a project:

     1.  To engage in gas infrastructure replacement; and

     2.  That is incremental in nature and that is not undertaken by the utility as a project to replace existing infrastructure during the normal course of business.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7967  “Gas infrastructure replacement project revenue requirement” and “revenue requirement” defined. (NRS 703.025, 704.210)

     1.  “Gas infrastructure replacement project revenue requirement” or “revenue requirement” means an amount equal to depreciation expense plus carrying costs, less the depreciation expense and carrying costs associated with the capital retirement of each gas infrastructure replacement project.

     2.  As used in this section:

     (a) “Carrying costs” means the return on a gas infrastructure replacement project, adjusted for accumulated depreciation and accumulated deferred income taxes, utilizing the gas utility’s authorized pretax rate of return.

     (b) “Depreciation expense” means the return on a gas infrastructure replacement project utilizing the gas utility’s authorized rate of depreciation.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7968  “Gas infrastructure replacement rate” and “replacement rate” defined. (NRS 703.025, 704.210)  “Gas infrastructure replacement rate” or “replacement rate” means the rate established by the Commission for the purpose of recovering the following amounts:

     1.  The revenue requirement associated with the cumulative uncollected net book value of each gas infrastructure replacement project included in a gas infrastructure replacement rate application less the income taxes which are deferred for each such replacement project, calculated as of August 31 of the year in which a gas infrastructure replacement rate application is filed; and

     2.  The difference between the costs and revenues recorded in the gas infrastructure replacement regulatory asset account for each gas infrastructure replacement project included in a gas infrastructure replacement rate application, calculated as of August 31 of the year in which a gas infrastructure replacement rate application is filed.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7969  “Gas infrastructure replacement rate application” and “rate application” defined. (NRS 703.025, 704.185, 704.210)  “Gas infrastructure replacement rate application” or “rate application” means an application filed by a gas utility to establish or adjust a gas infrastructure replacement rate.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.797  “Gas infrastructure replacement regulatory asset account” and “regulatory asset account” defined. (NRS 703.025, 704.210)  “Gas infrastructure replacement regulatory asset account” or “regulatory asset account” means an account in which a gas utility records the gas infrastructure replacement project revenue requirement for one or more new gas infrastructure replacement projects, less the revenue the utility receives from the gas infrastructure replacement rate.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7971  “Master meter system” defined. (NRS 703.025, 704.210)  “Master meter system” has the meaning ascribed to it in 49 C.F.R. § 191.3.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7975  Applicability. (NRS 703.025, 704.210)  The provisions set forth in NAC 704.796 to 704.7985, inclusive, apply to any public utility that operates a natural gas system. The Commission may, upon the request of a public utility that operates a liquid petroleum gas system and for good cause shown, apply the provisions set forth in NAC 704.796 to 704.7985, inclusive, to such utility.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7976  Advance application: Dates on which deemed filed or denied. (NRS 703.025, 704.210)  A gas infrastructure replacement advance application must be:

     1.  Filed on or before June 1 of each calendar year or as otherwise provided by the Commission.

     2.  Deemed denied if the Commission has not acted within 135 days after the date on which the advance application is filed.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7977  Advance application: Required provisions. (NRS 703.025, 704.210)

     1.  A gas infrastructure replacement advance application must provide sufficient evidence and be supported by sworn testimony to estimate the revenue requirement associated with each replacement project proposed in the advance application. The evidence must include, without limitation:

     (a) The number of miles of pipeline proposed to be replaced;

     (b) A detailed map of the proposed early-vintage steel pipeline to be replaced that includes mileposts or other relevant local and specific information, and a general map of the areas where early-vintage plastic pipe will be replaced during the next subsequent calendar year;

     (c) The type of pipeline that is being replaced and the type of pipeline to be used in the replacement;

     (d) The estimated cost of the materials to be used in each replacement project;

     (e) The estimated labor costs of the gas utility for each replacement project;

     (f) The estimated contractor costs for each replacement project;

     (g) The estimated cost of loadings;

     (h) The estimated costs of any permits, rights-of-way, studies or other governmental mandates required to replace the pipeline; and

     (i) Any other estimate of costs incurred as a result of the replacement project.

Ê An applicant who does not provide an estimate required by paragraphs (d) to (i), inclusive, shall provide a statement in the advance application as to the reasonableness of the exclusion of the estimate.

     2.  The advance application must include:

     (a) A description, supported by sworn testimony, of each replacement project that provides sufficient evidence to support a conclusion that:

          (1) A safety and reliability concern exists justifying replacement on an accelerated basis; and

          (2) The completion of the replacement project is in the public interest;

     (b) A description of the gas utility’s plan for supplying gas throughout the utility’s service territory during the next 10 calendar years, including, without limitation, the known and projected gas supply during the next 10 calendar years, and any projected changes in supply that may occur during the next 10 calendar years;

     (c) An integrated plan for gas infrastructure replacement that balances the existing need for replacement as described pursuant to paragraph (a) with the plan for gas supply described pursuant to paragraph (b);

     (d) A description of each alternative studied by the gas utility in lieu of the proposed replacement projects identified in the advance application, if any, including, without limitation, a statement explaining why each alternative for replacement was rejected for the upcoming calendar year; and

     (e) An integrated analysis that establishes priorities among the gas utility’s options for replacement projects during the next 5 calendar years. Such analysis must take into account safety and reliability risks and benefits in addition to the plans for future gas supply in a manner sufficient to enable the Commission to determine the extent to which the utility’s advance application balances the objectives of minimizing cost, mitigating risk and maximizing reliability of service during the next 5 calendar years.

Ê An applicant who does not provide all of the information required pursuant to this subsection shall provide a statement in the gas infrastructure replacement advance application as to the reasonableness of the exclusion of such information.

     3.  The advance application must include an analysis to demonstrate that each replacement project proposed is incremental in nature and not a project that the gas utility is currently

undertaking in the normal course of business with respect to replacement of its existing gas pipeline infrastructure. For the purpose of establishing that the proposed replacement project is incremental in nature, the gas utility shall file:

     (a) A description of each replacement project the gas utility is currently undertaking in the normal course of business or to which the utility is committed in a public document or filing; and

     (b) A statement explaining why each replacement project proposed in the advance application is incremental in nature and not undertaken during the normal course of business of the gas utility.

Ê Each replacement project that is considered to be a project undertaken during the normal course of business and that is not undertaken incrementally will be evaluated at each general rate case of the gas utility where the cost of such project is proposed for incorporation into rates by the gas utility.

     4.  The advance application must be accompanied by a summary that is suitable for distribution to the public. The summary must include:

     (a) A brief introduction, addressed to the public, describing the gas utility, its facilities and the purpose of the advance application and replacement mechanism;

     (b) A description of each replacement project;

     (c) A statement explaining the necessity of each replacement project; and

     (d) The estimated costs and the estimated revenue requirement associated with each replacement project.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7978  Advance application: Calculation of regulatory asset account. (NRS 703.025, 704.185, 704.210)  The calculation for the gas infrastructure replacement regulatory asset account for a replacement project that is approved as part of an advance application begins on the last day of the month following the in-service date of the project and ends on the date on which the project is accounted for in the rate base of the gas utility.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7979  Advance application: Costs proposed must be accounted for and readily identifiable. (NRS 703.025, 704.185, 704.210)  All costs of a replacement project proposed in an advance application submitted to the Commission must be accounted for in the books and records of a gas utility separately from amounts attributable to any other activity. Each regulatory asset account must be maintained in a manner that will allow costs to be readily identified.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.798  Rate application: General provisions. (NRS 703.025, 704.210)

     1.  The gas infrastructure replacement rate application must:

     (a) Be filed:

          (1) On or before October 1 of the next subsequent calendar year after a decision of the Commission regarding a gas infrastructure replacement advance application; or

          (2) As otherwise provided by the Commission.

     (b) Provide a comparison of each estimate provided pursuant to NAC 704.7977 with the recorded costs of each replacement project and an explanation of any significant differences between estimated and recorded costs.

     2.  For the purpose of calculating the gas infrastructure replacement rate, the gas utility shall submit evidence in support of the recorded costs for each replacement project undertaken in the immediately preceding calendar year through August 31 of the year in which the application is filed. Such evidence must include, without limitation:

     (a) The number of miles of pipeline replaced;

     (b) The location of the pipeline replaced;

     (c) The type of pipeline that was replaced and the type of pipeline used in the replacement;

     (d) The actual cost of the materials used in the replacement project;

     (e) The actual labor costs of the gas utility for the replacement project;

     (f) The actual contractor costs for the replacement project;

     (g) The actual costs of loadings;

     (h) The actual costs of any permits, rights-of-way, studies or other governmental mandates required to replace the pipeline; and

     (i) Any other costs incurred as a result of the replacement project.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7981  Replacement rate: Effective date. (NRS 703.025, 704.210)  The replacement rate becomes effective on January 1 of the first calendar year after a rate application is filed and approved.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7982  Rate application: Statement regarding deviations from replacement projects approved in advance application. (NRS 703.025, 704.210)  After the Commission has acted upon an advance application, a gas utility may deviate from one or more replacement projects approved by the Commission in the advance application if such deviation does not result in a change of more than 20 percent in the total estimated costs of the replacement projects approved by the Commission in the underlying advance application. For any such deviation, a gas utility shall provide a statement with the rate application explaining why the deviation is in the public interest.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7983  Request for waiver of requirement to file rate case. (NRS 703.025, 704.210)

     1.  A gas utility that has filed and received approval by the Commission for three gas infrastructure replacement rate applications is not eligible to file another gas infrastructure replacement advance application until such time as the utility has filed a general rate application pursuant to NRS 704.110, unless the gas utility:

     (a) Not earlier than 120 days before the date on which an applicant may file the advance application, requests a waiver of the requirement to file a rate case; and

     (b) Provides proof satisfactory to the Commission demonstrating that the applicant is not earning more than its authorized rate of return and that approval of the waiver request by the Commission is in the public interest.

     2.  The Commission shall, not later than 90 days after receiving a request for a waiver, issue an order approving or denying the request.

     3.  In considering whether to approve or deny a request for a waiver, the Commission shall determine whether approval of the waiver is in the public interest. Such determination must include, without limitation, consideration of whether the applicant is earning more than its authorized rate of return.

     4.  The Commission shall not approve a request for a waiver if the Commission has not issued a final order on a general rate application filed by the gas utility pursuant to subsection 3 of NRS 704.110 during the immediately preceding 6 years.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7984  Requirements for seeking determination of prudency. (NRS 703.025, 704.210)

     1.  A Commission order approving or denying an advance application or a rate application is not a determination of prudency with respect to any replacement project set forth in such an application.

     2.  A gas utility shall seek a determination of prudency in the first general rate application filed pursuant to NRS 704.110 after the costs of each replacement project are accounted for in a replacement rate. In the general rate application, the gas utility shall submit evidence in support of the recorded cost for each replacement project completed since the last general rate application filed by the gas utility, including, without limitation:

     (a) Each invoice for each replacement project, including invoices segregated at the project level if blanket contracts or invoices were used by the gas utility;

     (b) Each work order for each replacement project, including work orders segregated at the project level if blanket contracts or work orders were used by the utility;

     (c) An accounting of the labor performed by outside contractors and the gas utility for each replacement project undertaken; and

     (d) Any other evidence which demonstrates that the incurred costs of a replacement project were prudent, just and reasonable.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

      NAC 704.7985  Collection of replacement rate from customers; negotiated rate customers; exemptions. (NRS 703.025, 704.210)

     1.  With the exception of negotiated rate customers, the replacement rate must be collected from all customers of the gas utility based upon consumption of gas by each customer class during the 12 months immediately preceding the filing of the rate application.

     2.  A negotiated rate customer may be required to pay a rate calculated separately that represents the costs associated with replacement of a pipeline segment or segments that benefit the negotiated rate customer. For the purpose of determining whether a negotiated rate customer will be required to pay the applicable replacement rate, a gas utility shall file with each advance application:

     (a) A list identifying each negotiated rate customer that would benefit from the replacement of a specific pipeline segment or segments proposed in the advance application;

     (b) A list identifying each negotiated rate customer that should be exempt from paying the replacement rate pursuant to a contract with the negotiated rate customer, and any evidence or legal arguments supporting any exemption claimed pursuant to this paragraph;

     (c) For any negotiated rate customer other than a customer identified pursuant to paragraph (b), any evidence or legal arguments which may qualify the negotiated rate customer for an exemption from paying the replacement rate calculated pursuant to this subsection, including, without limitation, whether the negotiated rate customer has bypass options;

     (d) A proposed rate for each negotiated rate customer that would benefit from replacement of a specific pipeline segment or segments proposed in the advance application;

     (e) For each negotiated rate customer identified pursuant to this subsection, the consumption of gas by each negotiated rate customer during the 3 years immediately preceding the filing of the advance application received through the specific pipeline segment or segments proposed for replacement in the advance application that benefit the negotiated rate customer; and

     (f) Any other relevant evidence supporting the proposed rate to be charged to each negotiated rate customer.

Ê The rate for a negotiated rate customer identified pursuant to this subsection must be calculated based upon a rolling 3-year average consumption by the negotiated rate customer from the specific pipeline segment or segments proposed for replacement in the gas infrastructure replacement advance application that benefit the negotiated rate customer. The rolling 3-year average consumption will be utilized to calculate an average consumption figure and will be compared to the percentage of consumption on the same pipeline segment or segments for all remaining gas utility customers as calculated pursuant to subsection 1.

     3.  Unless a negotiated rate customer is determined to be exempt in a proceeding to review an advance application, the rate for a negotiated rate customer as determined pursuant to this section must be charged to the negotiated rate customer after the gas utility has submitted a rate application that reflects the recorded costs of replacing the pipeline segment or segments that benefit the negotiated rate customer. If the gas utility’s costs as reflected in the rate application deviate by more than 10 percent from the estimates set forth in the advance application, the gas utility shall file any information necessary for the recalculation of the rate in the rate application. A party to a rate application shall not address whether a negotiated rate customer should or should not be required to pay a replacement rate.

     4.  If the Commission determines that a negotiated rate customer is exempt from paying a replacement rate, the gas utility is not required in any subsequent advance application proceeding to address the applicability of this section to the negotiated rate customer, unless the contract between the gas utility and the negotiated rate customer is modified or renegotiated. A gas utility shall continue to identify each exempt negotiated rate customer pursuant to paragraph (b) of subsection 2, but shall state that such a negotiated rate customer is exempt pursuant to this subsection and affirm that the contract with the negotiated rate customer has not been modified or renegotiated.

     5.  As used in this section, “negotiated rate customer” means a customer that contracts for negotiated rates with a gas utility pursuant to a utility tariff.

     (Added to NAC by Pub. Utilities Comm’n by R020-13, eff. 2-26-2014)

ENERGY UTILITIES: AUTHORIZATION OF MERGERS, ACQUISITIONS OR CHANGES IN CONTROL

      NAC 704.79971  Definitions. (NRS 703.025, 704.210, 704.329)  As used in NAC 704.79971 to 704.79991, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.79973 to 704.79979, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R128-98, eff. 12-3-99)

      NAC 704.79973  “Applicant” defined. (NRS 703.025, 704.210, 704.329)  “Applicant” means a person seeking to merge with, acquire through a subsidiary or affiliate, or otherwise directly or indirectly obtain control of an energy utility doing business in this State or of an entity that holds a controlling interest in such an energy utility that has submitted an application to the Commission pursuant to NRS 704.329 and NAC 704.79971 to 704.79991, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R128-98, eff. 12-3-99)

      NAC 704.79975  “Energy utility” defined. (NRS 703.025, 704.210, 704.329)  “Energy utility” means a public utility that is engaged in the provision of electric service or natural gas service.

     (Added to NAC by Pub. Utilities Comm’n by R128-98, eff. 12-3-99)

      NAC 704.79977  “Parties to the proposed transaction” defined. (NRS 703.025, 704.210, 704.329)  “Parties to the proposed transaction” means the persons that are the subjects of the proposed merger, acquisition or change in control of an energy utility, including the applicant, the energy utility and, if applicable, the entity that holds a controlling interest in the energy utility.

     (Added to NAC by Pub. Utilities Comm’n by R128-98, eff. 12-3-99)

      NAC 704.79979  “Transaction” defined. (NRS 703.025, 704.210, 704.329)  “Transaction” means a merger, an acquisition or a change in control of an energy utility that requires authorization by the Commission pursuant to NRS 704.329.

     (Added to NAC by Pub. Utilities Comm’n by R128-98, eff. 12-3-99)

      NAC 704.79981  Requirement to submit application. (NRS 703.025, 704.210, 704.329)

     1.  A person who seeks to merge with, acquire through a subsidiary or affiliate, or otherwise directly or indirectly obtain control of an energy utility doing business in this State or of an entity

that holds a controlling interest in such an energy utility, must submit an application to the Commission pursuant to NRS 704.329 that complies with NAC 704.79971 to 704.79991, inclusive.

     2.  If any requirement set forth in NAC 704.79971 to 704.79991, inclusive, duplicates a requirement in a filing submitted by an applicant to a regulatory body other than the Commission, the applicant may satisfy the requirement set forth in NAC 704.79971 to 704.79991, inclusive, by providing a cross reference to the location of the duplicated requirement in the filing submitted to the other regulatory body.

     (Added to NAC by Pub. Utilities Comm’n by R128-98, eff. 12-3-99)

      NAC 704.79983  Application for authorization of proposed transaction: General contents. (NRS 703.025, 704.210, 704.329)  An application for authorization of a proposed transaction must include general information regarding the parties to the proposed transaction, including, without limitation:

     1.  The names, addresses and telephone numbers of the parties to the proposed transaction.

     2.  A description of the business activities and corporate affiliations of the parties to the proposed transaction.

     3.  The number of customers, sorted by class, of the parties to the proposed transaction that are within the jurisdiction of the Commission, if any.

     4.  A general description of any facilities owned, operated or controlled by the parties to the proposed transaction, or by a parent company, a subsidiary or an affiliate of any of the parties, that are within the jurisdiction of the Commission.

     5.  A description of the geographic areas that will be affected by the proposed transaction.

     6.  Organizational charts that show:

     (a) The current corporate structure of the parties to the proposed transaction before the completion of the proposed transaction; and

     (b) The planned corporate structure of the surviving entity or entities, as applicable, after the completion of the proposed transaction.

     7.  The identity of the officers and directors of the surviving entity or entities, as applicable.

     8.  An executed copy of the transaction for which authorization is sought.

     9.  Any analyses, reports and assessments conducted by or on behalf of the parties to the proposed transaction relating to the transaction.

     10.  Any analyses, which assess the financial, competitive or any other effect of the proposed transaction, that were conducted by third parties of which the parties to the proposed transactions are aware and can obtain.

     11.  A list of, and a statement concerning, the status of each application for the authorization of the proposed transaction which the parties to the proposed transaction have filed or are required to file with a regulatory body other than the Commission, the date or expected date of such a filing and a copy of each application that has been filed, including, without limitation:

     (a) Filings made pursuant to the requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, 15 U.S.C. § 18a; and

     (b) Orders that constitute final rulings on the merits issued by such a regulatory body.

     12.  Any other information that the parties to the proposed transaction consider to be relevant to the consideration of the proposed transaction by the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R128-98, eff. 12-3-99)

      NAC 704.79985  Application for authorization of proposed transaction: Inclusion of information on effect on costs and rates. (NRS 703.025, 704.210, 704.329)  An application for the authorization of a proposed transaction must include information relating to the anticipated effect of the proposed transaction on the costs and rates, including, without limitation:

     1.  A detailed description and explanation of all of the costs related to the proposed transaction, including, without limitation:

     (a) The cost of the transaction, the cost for transition and any premium for the acquisition; and

     (b) The manner in which the parties to the proposed transaction propose to treat such costs for the purposes of accounting and determining rates.

     2.  A detailed explanation of the manner in which the proposed transaction will result in gains in efficiency and reductions in costs, and the magnitude of those gains and reductions. The explanation must describe:

     (a) The methods which the parties to the proposed transaction will use to measure the gains in efficiency that will result from the proposed transaction, including, without limitation, references to other transactions in which the methods have been used, and a description and an evaluation of the use of the methods in those transactions; and

     (b) The manner in which the parties to the proposed transaction will assign the gains in efficiency to the ratepayers of each party, including, without limitation, an explanation of the policy reasons for the assignment and examples, using realistic scenarios, of the quantitative effect of the assignment.

     3.  An analysis of the effect of the proposed transaction on the rates of the customers of the parties to the proposed transaction and a description of the appropriate measures, if any, that will be taken to protect the current rates from increases associated with the proposed transaction, including, without limitation:

     (a) If the parties to the proposed transaction intend to protect the current rates of its customers, a general provision pursuant to which the parties will hold the customers of the resulting energy utility harmless, such as a commitment from the parties that they will protect the customers from any adverse effects on rates for a significant period as determined by the parties and the methodology that will be used to ensure that the hold-harmless provision is enforceable and administratively manageable;

     (b) A cap on rates pursuant to which the parties to the proposed transaction agree to refrain from increasing rates for their customers under certain tariffs for a significant period as determined by the parties;

     (c) A reduction in rates pursuant to which the parties to the proposed transaction agree to file an application to reduce rates for their customers for a significant period as determined by the parties; and

     (d) Any other measure that the parties to the proposed transaction will use to mitigate any adverse effects of the proposed transaction on their customers.

     4.  A description of the jurisdictional allocation of the costs and benefits related to the proposed transaction that will inure to the customers of the parties to the proposed transaction whose rates are subject to the jurisdiction of a regulatory agency of another state and the Federal Energy Regulatory Commission.

     5.  A copy of the current tariffs of the parties to the proposed transaction filed with the Commission and any proposed changes to the tariffs that will be needed upon the completion of the proposed transaction.

     6.  A description of the likely effects of the proposed transaction on shareholders and bondholders of each company.

     (Added to NAC by Pub. Utilities Comm’n by R128-98, eff. 12-3-99)

      NAC 704.79987  Application for authorization of proposed transaction: Inclusion of information on effect on competition. (NRS 703.025, 704.210, 704.329)  An application for the authorization of a proposed transaction must include information relating to the effect of the proposed transaction on competition in the markets for energy services and products in which the resulting energy utility will do business, including, without limitation:

     1.  An analysis of the competitive effect of the transaction on competition in the market for each energy service or product in which the resulting energy utility intends to do business. The analysis must include, without limitation:

     (a) An identification of the relevant products and services that are sold and will be sold by the parties to the proposed transaction before and after the completion of the proposed transaction, including, without limitation, an identification of:

          (1) Generation services sold at wholesale or retail, including, without limitation, capacity, energy services and coordination services;

          (2) Gas supply services, including, without limitation, services for:

               (I) Baseload/swing (load following) supplies;

               (II) Peaking supplies;

               (III) Back-up service; and

               (IV) Balancing of supplies when customers take delivery of gas from the distribution system or pipeline that is not equal to the amount of gas scheduled to be delivered to the customers;

          (3) Transmission services;

          (4) Pipeline transportation, including, without limitation:

               (I) Firm transportation;

               (II) Interruptible transportation; and

               (III) Storage;

          (5) Generation services necessary to support transmission service, including, without limitation, services for:

               (I) Regulation and frequency response pursuant to which adequate response capability is provided to balance the supply resources continually with the load and to maintain scheduled interconnection frequency within a control area over a single hour;

               (II) Energy imbalance to be provided when a difference occurs between the scheduled energy to be delivered and the amount of energy actually delivered to a load located within a control area over a single hour;

               (III) Loss compensation pursuant to which capacity and energy losses are compensated when power is delivered for transmission or to distribution customers, or both;

               (IV) Reactive power and voltage control pursuant to which reactive power from generation resources will be provided to support the reliable operation of the transmission system;

               (V) Operating reserve – spinning reserve, pursuant to which generation capacity will be synchronized to the transmission system; and

               (VI) Operating reserve – supplemental reserve, pursuant to which generation capacity will be provided that is not necessarily synchronized to the transmission system but is capable of serving demand within 10 minutes;

          (6) Retail electric services, including, without limitation:

               (I) Arranging for power supplies;

               (II) End-use metering, including, without limitation:

                   (i) Ownership of meters;

                   (ii) Operation and maintenance of meters; and

                   (iii) Reading of meters;

               (III) Financial arrangements for hedging prices;

               (IV) Public good services, including, without limitation, financial, technical and other services that are performed to further public policies related to the provision of electric service;

               (V) Services which are provided behind the meter that are provided to end-use customers relating to appliances that use natural gas, including, without limitation, sale, hook-up, repair and maintenance of those appliances;

               (VI) Customer accounting, including, without limitation:

                   (i) Account services;

                   (ii) Customer information and data processing;

                   (iii) Billing; and

                   (iv) Collection and processing of payments;

               (VII) Distribution services; and

               (VIII) Services related to the retail sale of gas;

     (b) An identification of the current geographic markets into which the products and services are currently being sold and the geographic markets that the parties to the proposed transaction have a reasonable expectation of obtaining after the completion of the proposed transaction;

     (c) An identification of the present and future customers of the parties to the proposed transaction that may be affected by the completion of the proposed transaction;

     (d) An identification of all potential future suppliers of the present and future customers which must be able to serve those customers in each market, considering the physical and economic restraints on the future suppliers in serving those customers, including, without limitation, the amount of capacity, energy or coordination services that each supplier of the services currently has available for delivery to the market after adjustment for transmission capability or any other constraint;

     (e) An analysis of the potential for entry by alternative suppliers into any market that will be served by the resulting energy utility and the role that entry into such a market by the alternative suppliers could play in mitigating any adverse competitive effects resulting from the completion of the proposed transaction, including, without limitation, a qualitative and quantitative assessment of the cost for the alternative sellers to enter the market; and

     (f) A calculation, using an appropriate methodology, of statistics relating to market concentration for each market to be served by the resulting energy utility, such as a calculation of statistics relating to market concentration using the Herfindahl-Hirschman Index.

     2.  A description of any action that the parties to the proposed transaction intend to take to mitigate or remedy the effects of the market power that the resulting energy utility would possess upon the completion of the transaction. The description should identify each market in which the parties to the proposed transaction would take such action, the presumed quality and degree of mitigation or remediation, and any other alternative actions of mitigation or remediation that have been considered by the parties to the proposed transaction.

     3.  Any additional information, data, analyses and studies that consider the effect of the proposed transaction on competition in the market for energy utilities.

     (Added to NAC by Pub. Utilities Comm’n by R128-98, eff. 12-3-99)

      NAC 704.79989  Application for authorization of proposed transaction: Inclusion of information on facilities. (NRS 703.025, 704.210, 704.329)  An application for authorization of a proposed transaction must include information relating to the facilities of the parties to the proposed transaction, including, without limitation:

     1.  If the proposed transaction involves the disposition of physical facilities:

     (a) Maps that show the locations of the assets which will be disposed.

     (b) A plan that sets forth the manner in which the facilities will be disposed. The plan must include, without limitation:

          (1) A detailed description of the methods that the parties to the proposed transaction will use to identify and select buyers, and to determine the purchase price, including a chronology of the steps that the parties to the proposed transaction will take;

          (2) An evaluation of whether the disposition of the assets will result in a purchase that is above or below the book cost of the assets;

          (3) A proposal regarding the manner in which the parties to the proposed transaction will allocate any overage or underage of the sales price, in relation to the book cost of the assets, between ratepayers and shareholders of the parties and among classes of ratepayers of the parties; and

          (4) An explanation of the effect of the disposition on bondholders of the parties to the proposed transaction, including, without limitation, a detailed explanation of any of the rights of the bondholders that will be affected by the disposition and the manner in which those rights will be honored.

     (c) If authorization of the proposed disposition by any municipal, state or federal regulatory body other than the Commission is required, a copy and an explanation of all state statutes and rules with which the parties to the proposed transaction and the purchasers of the disposed assets will be required to comply.

     2.  Information relating to the transmission facilities of the parties to the proposed transaction, including, without limitation:

     (a) Data concerning the transmission capability for each of the transmission paths, interfaces or other facilities used by suppliers to deliver energy to the destination markets. The data must be on an hourly basis for the 2 years immediately preceding the date of the application and include, without limitation:

          (1) The name of the transmission path, interface or facility;

          (2) The total transfer capability; and

          (3) The firm available transmission capability.

Ê If simultaneous transmission capability is available, the application must include that fact.

     (b) For each existing transmission facility which was constrained during the 2 years immediately preceding the date of the application or which is expected to be constrained within the 3 years immediately following the date of the application, the parties to the proposed transaction must provide, without limitation:

          (1) Information regarding expected changes in loadings on transmission facilities as a result of the proposed transaction and the consequent effect on transfer capability; and

          (2) To the extent possible, system maps showing the location of transmission facilities where binding constraints have been known or are expected to occur that include:

               (I) The name of each path, interface or facility affected by the constraint;

               (II) The locations of the constraint and each path, interface or facility affected by the constraint;

               (III) The hours of the year in which the constraint is binding; and

               (IV) The system conditions under which the constraint is binding.

     (c) For each potential supplier to a destination market that holds firm transmission rights on a transmission path, interface or facility necessary to deliver energy from a potential supplier, including the supplier itself, to the destination market, the application must include:

          (1) The name of the supplier and transmission path, interface or facility; and

          (2) The number of the rate schedule on file with the Federal Energy Regulatory Commission under which transmission service is provided, if applicable, and a description of the firm transmission rights held, including, without limitation, quantity and remaining time that the rights will be held and any relevant time restrictions on transmission use, such as peak or off-peak rights.

     (d) Information concerning any interruptions, curtailments and denials of transmission service, including, without limitation, failures to provide transmission service after a request for service that was not withdrawn, on the systems of the parties to the proposed transaction for the 2 years immediately preceding the date of the application. The information must include, without limitation:

          (1) The name of the customer or entity whose transmission service was interrupted, curtailed or denied;

          (2) The type, quantity and duration of the service provided to the customer or entity;

          (3) The date and length of time during which the transmission service was interrupted, curtailed or denied;

          (4) The reason given for the interruption, curtailment or denial;

          (5) The transmission path; and

          (6) The reservations or other use anticipated on the affected transmission path at the time when the service of the customer or entity was interrupted, curtailed or denied.

     (e) Data or analyses on the effect that the proposed transaction is expected to have on the transmission capability of the resulting energy utility, including, without limitation, data and analyses on:

          (1) Any dispatch changes, and the manner in which such changes will affect transmission use; and

          (2) The new markets that may be served by the resulting energy utility and the transmission services planned to reach those markets.

     3.  If the systems of the parties to the proposed transaction are not interconnected, documents showing any current plans for interconnection and, to the extent that no current plans exist, an analysis showing whether interconnection is physically feasible and, if so, the magnitude of the costs of the interconnection.

     4.  An assessment of the effects of the proposed transaction on the quality of service and reliability of the system of the resulting energy utility. The assessment must include a proposal for:

     (a) Measuring and reporting on the performance of the resulting energy utility relating to customer satisfaction, reliability of service, the safety of the system and the business office of the resulting energy utility; and

     (b) Imposing penalties for any shortfalls in such performance.

     5.  An identification, by types and estimated annual quantities, of inter-affiliate transactions that will occur after the transaction is completed and an explanation of the extent, if any, of federal preemption of the authority of the Commission which will result upon the completion of the proposed transaction.

     (Added to NAC by Pub. Utilities Comm’n by R128-98, eff. 12-3-99)

      NAC 704.79991  Order from Commission for changes or additions. (NRS 703.025, 704.210, 704.329)

     1.  If the Commission finds that a proposed transaction is not in the public interest, the Commission:

     (a) Will not authorize the proposed transaction; or

     (b) Will issue an order that specifies the changes in or additions to the proposed transaction that the parties to the proposed transaction must make before the Commission will authorize the proposed transaction.

     2.  If the Commission issues an order that specifies required changes in or additions to the proposed transaction, the Commission will include in the order:

     (a) A deadline by which the parties to the proposed transaction must inform the Commission as to whether the parties will make the changes or additions; and

     (b) A deadline by which the parties to the proposed transaction must file such documents as the Commission deems necessary to carry out the changes or additions.

     (Added to NAC by Pub. Utilities Comm’n by R128-98, eff. 12-3-99)

CONSERVATION OF ENERGY IN RESIDENCES

      NAC 704.800  Applicability. (NRS 703.025, 704.210)

     1.  The provisions of NAC 704.800 to 704.876, inclusive, apply to Nevada Power Company, Sierra Pacific Power Company and Southwest Gas Corporation.

     2.  Utilities which have overlapping areas of service may enter into reasonable agreements to reduce or eliminate duplication of efforts in undertaking services pursuant to NAC 704.800 to 704.876, inclusive.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.802  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.800 to 704.876, inclusive, unless the context otherwise requires:

     1.  “Eligible customer” means a person who:

     (a) Owns or occupies a residential building or a dwelling unit therein, except that the owner of the common areas in a residential building containing five or more dwelling units is not an eligible customer for the purposes of the common areas; and

     (b) Receives a bill from a utility for electricity or fuel used in such a building.

     2.  “Inspection” means an inspection conducted pursuant to NAC 704.814.

     3.  “Residential building” means any building used for residential occupancy which has a system for heating or cooling, or both, and contains one or more dwelling units, except that the term does not include a building which contains more than four dwelling units if it has a central heating or cooling system.

     4.  “R-value” means the reciprocal of the thermal transmission in a unit of time through a unit of area in a particular body or assembly having defined surfaces when the unit average temperature difference is established between the surfaces.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.803  Adoption by reference of certain publications. (NRS 703.025, 704.210)  The Commission hereby adopts by reference:

     1.  Energy Standard 90.1, User’s Manual, in the form most recently published by the American Society of Heating, Refrigeration and Air-Conditioning Engineers. A copy of this publication may be obtained from ASHRAE, Publication Sales Department, 1791 Tullie Circle, N.E., Atlanta, Georgia 30329, or at the Internet address http://www.techstreet.com/ashrae/ for the price of $98 for members and $115 for nonmembers.

     2.  The International Energy Conservation Code, in the form most recently published by the International Code Council. This code may be obtained from the International Code Council, 500 New Jersey Avenue, N.W., 6th Floor, Washington, D.C. 20001-2070, by telephone at (800) 422-7233 or at the Internet address http://www.iccsafe.org, for the price of $44.

     (Added to NAC by Pub. Utilities Comm’n by R058-06, eff. 6-28-2006; A by R011-15, 10-27-2015)

      NAC 704.804  Announcements to eligible customers: Distribution; contents. (NRS 703.025, 704.210)

     1.  Each utility shall distribute annually to each of its eligible customers an announcement which contains:

     (a) A list of measures which may be taken to conserve energy in a typical residential building located in the area served by the utility.

     (b) A reasonable range of the estimated costs of the measures and estimates of the savings in the cost of energy which are likely to result in the first year after carrying out each of the measures in such a building.

     (c) A list of practices for conserving energy in such a building.

     (d) A reasonable range of estimates of the savings in the cost of energy which are likely to result in the first year after adoption of those practices.

     (e) A description of each of the services to be provided pursuant to NAC 704.800 to 704.876, inclusive, and an offer to perform each of those services. The offer to inspect residential buildings may be conditioned so that the utility may schedule its inspections in a particular geographic area at or near the same time.

     (f) A statement that federal tax credits may be available as the result of expenditures incurred for installations to conserve energy, and that the customer should communicate with the nearest office of the Internal Revenue Service for additional information.

     2.  Any person who becomes an eligible customer after the distribution of a utility’s announcement of its program must be provided with a copy of the announcement within 60 days after becoming an eligible customer.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.806  Announcements to eligible customers: List of measures to conserve energy. (NRS 703.025, 704.210)  A utility’s announcement to be made pursuant to NAC 704.804 must include the following items in its list of measures which an eligible customer may take to conserve energy in a residential building or dwelling unit:

     1.  Reducing the passage of air and moisture by filling small gaps around the fixed joints of window and door frames (caulking).

     2.  Reducing the passage of air and moisture by the installation of weather stripping over or in movable joints of windows and doors.

     3.  Modifying the system used for heating the building, by:

     (a) Replacing an electric furnace, boiler or heat pump with similar but more efficient equipment or with a gas-fired system if it has a lower cost of operation;

     (b) Replacing a furnace or boiler which is fired by natural gas with a more efficient furnace or boiler fired by natural gas; or

     (c) Replacing an oil burner with a more efficient oil burner or with a gas-fired system if it has a lower cost of operation. As used in this paragraph, an oil burner is a device which atomizes fuel oil, mixes it with air and ignites the mixture and is an integral part of an oil-fired furnace or boiler, including the combustion chamber.

     4.  Replacing a central air conditioner with a more efficient air conditioner.

     5.  Placing insulation or increasing existing insulation:

     (a) Between the conditioned area of the building and an unconditioned attic to achieve an effective R-value of at least R-30.

     (b) Within or on the walls between conditioned and unconditioned areas of the building or the outside.

     (c) Between the first conditioned level of the building and an unconditioned basement, a crawl space or open area beneath the building.

     (d) On the surface of a heating or cooling duct in an unconditioned area of the building.

     (e) On the exterior surface of a hydronic heating or cooling pipe in an unconditioned area of the building.

     (f) On the exterior surface of the casing of a water heater.

     6.  Installing insulated skirting to enclose the space between a mobile home and the ground.

     7.  Placing window or glazing material outside or inside an ordinary or prime window to create an air space between the windows or glazing materials and provide greater resistance to the flow of heat, that is, installing a storm window.

     8.  Installing a thermal window, consisting of two or more sheets of glazing material affixed to a window frame to create one or more air spaces between the glazing materials and provide greater resistance to the flow of heat.

     9.  Installing heat-reflective or heat-absorbent glazing material in windows or doors or applying reflective or absorptive films or coatings to existing windows or doors.

     10.  Installing a programmable thermostat which will reduce the consumption of energy in a heating or cooling system by switching the temperature in interior spaces automatically from one level to another.

     11.  Installing insulated shutters and shades on the inside or outside of existing windows to reduce the loss or gain of heat.

     12.  Replacing a water heater which operates by electric resistance with a gas water heater.

     13.  Using an insulating cover on a heated swimming pool during the night.

     14.  Installing a solar water heating system or photovoltaic panels.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.808  Announcements to eligible customers: List of practices to conserve energy. (NRS 703.025, 704.210)  A utility’s announcement to be made pursuant to NAC 704.804 must include the following items in its list of practices which an eligible customer may adopt to conserve energy:

     1.  Subscribing to the time-of-use rate of the electric utility and avoiding energy use during on-peak hours.

     2.  Cleaning and adjusting a gas or oil-fired furnace to increase the efficiency of the combustion.

     3.  Regularly cleaning or replacing the air filters on a forced-air heating or cooling system.

     4.  Lowering the setting of the bonnet or plenum thermostat setting to 80 degrees Fahrenheit on a gas or oil-fired, forced-air furnace.

     5.  Turning off the pilot light on a gas-fired furnace during the summer.

     6.  Manually lowering the setting of the thermostat for a furnace during the heating season to a maximum of 55 degrees Fahrenheit during sleeping hours.

     7.  Limiting the maximum setting of the thermostat for a furnace to 65 degrees Fahrenheit during the heating season.

     8.  Setting the thermostat for an air conditioner to 78 degrees Fahrenheit or higher during the cooling season.

     9.  Placing a device on a showerhead or faucet to limit the maximum flow to 2.5 gallons per minute, or replacing existing showerheads or faucets with those having built-in provisions for limiting the maximum flow to 2.5 gallons per minute.

     10.  Manually reducing the setting of the thermostat for a water heater to 120 degrees Fahrenheit unless a higher setting is required for proper operation of a dishwasher.

     11.  Reducing the use of heated water for washing clothes.

     12.  Reducing the thermostatic setting to 55 degrees Fahrenheit when a dwelling unit is empty for 4 hours or longer in a heating season.

     13.  Raising the setting of a thermostat for an air conditioner to 90 degrees Fahrenheit in the cooling season when no one is in the dwelling unit.

     14.  Turning an electric water heater off or a gas water heater to “pilot” when a dwelling unit is vacant for 2 days or longer.

     15.  Installing insulation or other pliable materials in gaps around pipes, ducts, fans or other equipment which enters the attic or basement from a heated space.

     16.  Installing fireproof material to plug any holes around a damper in a fireplace.

     17.  Adding insulation to an attic or basement door.

     18.  Caulking any leak in a heating or cooling duct.

     19.  Tightening or plugging any leaky joints in hot water or steam pipes.

     20.  Replacing washers in leaky water valves.

     21.  Using shades or drapes to:

     (a) Block sunlight from entering a building in the cooling season;

     (b) Allow sunlight to enter a building during the heating season; and

     (c) Cover windows tightly at night during the heating season.

     22.  Using and maintaining fireplaces and wood stoves in such a manner as to reduce the consumption of fuel and maximize the output of heat.

     23.  When buying appliances, selecting those appliances which:

     (a) Have received the Energy Star label pursuant to the program established pursuant to 42 U.S.C. § 6294a; or

     (b) Otherwise use energy efficiently.

     24.  Maintaining and operating appliances in an efficient manner.

     25.  Avoiding use of any waterbed heaters.

     26.  Using compact fluorescent light bulbs or reducing the wattage ratings of incandescent light bulbs.

     27.  Connecting lights to dimmer switches or timers.

     28.  Installing devices which automatically control the filtering or heating system used for a swimming pool.

     29.  Reducing the passage of air and moisture by filling small gaps:

     (a) In the fixed joints of the building;

     (b) Under baseboards inside the building;

     (c) In exterior walls at electric outlets;

     (d) Around pipes and wires entering the building; or

     (e) Around dryer vents and exhaust fans in exterior walls.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.810  Announcements to eligible customers: Estimates of savings in cost of energy. (NRS 703.025, 704.210)

     1.  In a utility’s announcement of its program for conserving energy in residential buildings, each of its estimates of savings in the cost of energy must be expressed as a percentage of the total amount of energy consumed in a typical single-family dwelling located in the area served by the utility.

     2.  A typical building in northern Nevada:

     (a) Is one story.

     (b) Is of wood frame construction.

     (c) Has 1,800 square feet of floor area.

     (d) Has 8-foot walls.

     (e) Has 1,800 square feet of attic area.

     (f) Has a crawl space beneath the floor.

     (g) Has ceiling insulation rated as R-30.

     (h) Has wall insulation rated as R-13.

     (i) Has between 50 and 60 square feet of window area facing south.

     (j) Has 20 square feet of door area.

     (k) Has all its heating and cooling ducts in unconditioned areas.

     (l) Exchanges air 1.5 times each hour.

     (m) Has a gas-fired heating system whose average seasonal level of efficiency is at least 74 percent and whose best practices efficiency is 94 percent, as determined by the International Energy Conservation Code as adopted by reference pursuant to NAC 704.803.

     3.  A typical building in southern Nevada:

     (a) Is one story.

     (b) Is of wood frame construction.

     (c) Has 1,800 square feet of floor area.

     (d) Has 8-foot walls.

     (e) Has 1,800 square feet of attic area.

     (f) Is constructed on a concrete slab.

     (g) Has ceiling insulation rated as R-30.

     (h) Has wall insulation rated as R-13.

     (i) Has between 50 and 60 square feet of window area facing south.

     (j) Has 20 square feet of door area.

     (k) Has all its heating and cooling ducts in unconditioned areas.

     (l) Exchanges air 1.5 times each hour.

     (m) Has a gas-fired heating system whose average seasonal level of efficiency is at least 74 percent and whose best practices efficiency is 94 percent, as determined by the International Energy Conservation Code as adopted by reference pursuant to NAC 704.803.

     (n) Has an electric air-conditioning system whose energy efficiency ratio is 7.

     4.  The estimates must be based on calculations contained in the Energy Standard 90.1, User’s Manual, as adopted by reference pursuant to NAC 704.803, or on other calculations which produce results within 20 percent of those produced through use of the Energy Standard 90.1, User’s Manual.

 

     5.  After presenting its estimates of savings, the utility shall add the following caveat:

 

ENERGY SAVINGS DEPEND UPON MANY FACTORS. THE ESTIMATES CONTAINED IN THIS ANNOUNCEMENT ARE BASED ON ESTIMATES FOR TYPICAL HOUSES. YOUR ACTUAL SAVINGS IN THE COST OF ENERGY MAY BE LESS THAN THE ESTIMATES PROVIDED HERE IF YOUR HOUSE IS OF A DIFFERENT SIZE OR IF YOUR HABITS OF USING ENERGY ARE DIFFERENT FROM THOSE ASSUMED. THE INSPECTION WHICH WE OFFER WILL PROVIDE MORE SPECIFIC ESTIMATES FOR YOUR HOUSE.

 

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006; R011-15, 10-27-2015)

      NAC 704.812  Announcements to eligible customers: Limitation on advertisements. (NRS 703.025, 704.210)  A utility’s announcement of its program to promote residential conservation of energy must not contain any advertisement for:

     1.  Sale of material or equipment by any supplier;

     2.  Installations by any contractor; or

     3.  Financing by any lender,

Ê including the utility, in connection with its program except for services or devices being offered as part of other programs for conservation approved by the Commission.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84)

      NAC 704.814  Inspections by utility; exceptions. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsections 2 and 3, each utility shall, upon request of an eligible customer, perform an inspection of his or her residential building or dwelling unit to obtain data on which to base specific suggestions or advice for conserving energy.

     2.  A utility need not conduct an inspection of any residential building or dwelling unit therein if a similar inspection of the building or unit was made for the same owner within the previous 12 months. If a similar inspection of the building or unit was made for a previous owner, the utility must provide the eligible customer with a copy of the data collected during the previous inspection and a copy of the results of that inspection at no charge, and must provide the eligible customer with all other services required to be provided by NAC 704.800 to 704.876, inclusive.

     3.  If a residential building contains more than four dwelling units, the data and results provided to the eligible customer may be based on a sampling of the various types of dwelling units in the building.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.816  Time for inspection; quarterly report. (NRS 703.025, 704.210)

     1.  A utility shall make the inspection of an eligible customer’s residential building or dwelling unit within 60 days after the date of the customer’s request for the inspection.

     2.  The inspection may be conducted during daylight hours on the utility’s normal working days unless the customer requests that it be conducted during daylight hours on a Saturday.

     3.  The utility shall file with the Commission a quarterly report stating the number of inspections performed by the utility in the previous quarter and the number of requests for inspection which it was unable to fulfill in compliance with this section and outlining proposed actions to ensure future compliance.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.818  Qualifications of inspectors. (NRS 703.025, 704.210)

     1.  Each inspector who conducts an inspection pursuant to NAC 704.814 must have:

     (a) Successfully completed a training program reviewed and approved by the Commission and administered by the utility or by a third person authorized by the utility or under contract with it;

     (b) Passed a written test, approved by the Commission, showing his or her proficiency to serve as an inspector; or

     (c) Been certified to perform such inspections under another state’s program of residential services for conservation of energy.

     2.  In addition to meeting the requirement set forth in subsection 1, such an inspector must be:

     (a) Employed by the utility or a third person under contract with the utility to perform such inspections; and

     (b) Proficient in the particular functions for which he or she will be responsible during the inspections.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.820  Proposed methodology for performing inspections. (NRS 703.025, 704.210)

     1.  Each utility shall develop a proposed methodology for performing its residential inspections and shall submit its proposed methodology to the Commission for approval.

     2.  Except as otherwise provided in NAC 704.822, the proposed methodology must require that:

     (a) The inspector’s calculations be based upon data collected by him or her from actual measurements of the interior and exterior of the building and inspection of the equipment used for heating and cooling spaces and heating water.

     (b) The data collected be in sufficient detail to enable the inspector to provide the customer with the following information:

          (1) A reasonably accurate estimate of the total cost, including materials and labor, to have an installer install the appropriate material and equipment for each applicable measure for conserving energy.

          (2) A reasonably accurate estimate of the total cost for the eligible customer to purchase and install the appropriate material and equipment for each of those measures, including replacing a central air conditioner, installing wall insulation, or replacing or modifying a furnace, boiler or heat pump.

          (3) A reasonably accurate estimate of the total savings in energy, expressed in dollars and kilowatt hours of electric energy or cubic feet of gas, which would be likely to occur during the first year following completion of each appropriate measure.

          (4) An estimate of the savings, after taking into consideration any available federal tax credits, in cost of energy, expressed in dollars, which would be likely to occur during the first year following completion of all applicable measures, assuming that those measures are carried out in the order of the shortest simple pay back, which is calculated by dividing the estimated cost of installation by the estimated saving from the measure in the first year.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.822  Alternatives to actual measurements and inspection. (NRS 703.025, 704.210)  In place of calculations based upon actual measurements and inspection as described in subsection 2 of NAC 704.820, a utility’s proposed methodology may allow:

     1.  A measure for conserving energy to be evaluated without the actual measurements if the estimated costs of installation and the savings in energy which would result from such an

installation in the typical house within the applicable climatic zone would not vary more than 15 percent from the costs and savings which would be determined if actual measurements were used.

     2.  An inspector to use the International Energy Conservation Code, as adopted by reference pursuant to NAC 704.803.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006; R011-15, 10-27-2015)

      NAC 704.824  Written assessment of appropriate practices. (NRS 703.025, 704.210)  After the inspection of any residential building or dwelling unit, the inspector shall assess the applicability of each practice for conserving energy and inform the customer in writing of those practices which are appropriate for use in the customer’s building or unit.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84)

      NAC 704.826  Measures for conservation: Determination of whether recommendation is appropriate. (NRS 703.025, 704.210)

     1.  While inspecting a residential building or dwelling unit, the inspector shall determine whether it is appropriate to recommend a measure for conservation.

     2.  In determining whether it is appropriate to recommend a measure, the inspector shall abide by the following criteria:

     (a) It is not appropriate to recommend a measure if it has already been carried out.

     (b) It is not appropriate to recommend a measure if the necessary installations would be in violation of any federal, state or local law or regulation.

     (c) It is not appropriate to recommend putting insulation in walls unless there is no insulation in a substantial portion of the exterior walls.

     (d) It is not appropriate to recommend putting insulation in floors unless the building is in northern Nevada and there is no floor insulation present.

     (e) It is not appropriate to recommend the installation of heat-absorbing or heat-reflective glass or other material in windows or doors unless the building or unit has a central or room air conditioner or an evaporative cooler and the windows and doors upon which the heat-absorbing or heat-reflective material would be installed are not shaded or facing within 45E of true North.

     (f) Thermal windows are only appropriate as determined in accordance with the provisions of NAC 704.862.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.828  Measures for conservation: Suggestion; evaluation upon customer’s request. (NRS 703.025, 704.210)  A utility may suggest measures for conserving energy but may select a measure to be evaluated only upon a customer’s request. Such an evaluation must be based upon:

     1.  The frequency of recommendations for installation of the measure made in prior inspections;

     2.  All costs and benefits;

     3.  The length of the payback period; and

     4.  Special conditions which affect savings in energy, cost-effectiveness and the likelihood of the measure being installed by the customer after the inspection.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.830  Inspection if primary source of energy not sold by utility. (NRS 703.025, 704.210)  If an inspector finds that a furnace, boiler or heat pump in a residential building or dwelling unit uses as its primary source of energy any fuel or source of energy other than a fuel

or source of energy sold by the utility which serves the customer, the inspector shall not consider replacing the existing equipment with more efficient equipment unless the inspector first obtains the customer’s signature to the following statement:

 

     Although the (name of utility) has personnel qualified to conduct an inspection of your (furnace, boiler or heat pump), if your home is heated by a fuel or source of energy other than (types of fuels supplied by utility), the utility cannot inspect your furnace, boiler or heat pump unless you specifically request it to do so. Federal law requires that such a request be made in writing. If you want us to inspect your furnace, although we do not supply the fuel for it, please sign below.

 

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.832  Offer to supply certain equipment and to explain adjustment of thermostats to customer; restriction on supplying or installing material or equipment. (NRS 703.025, 704.210)

     1.  While inspecting a residential building or dwelling unit for an eligible customer, the utility’s inspector shall offer:

     (a) To supply the customer, at no charge:

          (1) An insulating jacket for the water heater if, after inspecting the water heater, the utility’s inspector determines that an insulating jacket is an effective conservation measure; and

          (2) Devices for limiting the maximum flow of water through the showerheads to 2.5 gallons per minute; and

     (b) To explain to the customer how to make adjustments to the thermostats for the furnace and air conditioner and how to reduce the setting of the thermostat for the water heater to 120 degrees Fahrenheit.

     2.  A utility shall not supply or install any material or equipment, including the jacket described in subsection 1, to carry out a measure for conservation of energy except in accordance with NAC 704.856 and 704.858.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.834  Results of inspection; duties of inspector. (NRS 703.025, 704.210)

     1.  After performing an inspection, the inspector shall furnish the customer a written statement of the results of the inspection. The results must include the appropriate information as described in NAC 704.820, 704.826 and 704.830 but must not include information about a measure for conservation of energy unless it is one of the measures listed in NAC 704.806. If the results are not given in person, the inspector shall send the customer a written sample of the typical format of the results and a brief explanation of how to interpret them.

     2.  The inspector shall also:

     (a) Explain to the customer how to select the appliances which use energy most efficiently and how to improve the efficiency of the existing appliances in the customer’s household;

     (b) Furnish the customer information on how to install the appropriate material or equipment to accomplish measures, including the replacement of a central air conditioner, installation of wall insulation, or the replacement of or modifications to a furnace, boiler or heat pump;

     (c) Describe and explain to the customer the benefits of any programs, administered by this State or sponsored by the utilities, for making houses energy-efficient and weather-tight and the availability of any similar assistance to persons of low income, including the criteria for eligibility and the name and telephone number of the appropriate local agency; and

     (d) Give the customer a toll-free telephone number of a representative of the utility who is available to provide:

          (1) Consultation regarding the results.

          (2) A description and explanation of the services available to aid the customer in arranging for the installation and financing.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.836  Retention of data and results. (NRS 703.025, 704.210)

     1.  Each utility shall retain a copy of the data collected during each inspection of a residential building or dwelling unit and a copy of the results furnished to the eligible customer. The copies must be retained for 5 years after the date of the inspection.

     2.  The utility shall inform each new customer that such data and results for new residences may be available.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.838  Provision of information and assistance concerning bids, goods and services. (NRS 703.025, 704.210)  Each utility shall, upon the request of any customer whose residential building or dwelling unit has been inspected, provide information and assistance on the following matters:

     1.  How to obtain, accept and reject bids.

     2.  How to interpret bids received.

     3.  What a customer should expect to receive in goods or services from a supplier or installer.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.856  Supply and installation of material or equipment by utility: General requirements. (NRS 703.025, 704.210)

     1.  A utility may offer to arrange for the supply and installation of the material or equipment needed to carry out a measure for conservation of energy. If the eligible customer accepts, the utility may make the arrangement but only:

     (a) Through a contract with a supplier or installer who:

          (1) Is not subject to the utility’s control, except for the performance of the contract, and is not an affiliate or a subsidiary of the utility; and

          (2) If selected by the utility, is selected in a manner consistent with paragraph (b); and

     (b) In a manner which:

          (1) Does not involve any unfair method of competition;

          (2) Does not have any substantially adverse effect on competition in the area in which the supply or installation will be undertaken and will not result in giving any supplier or contractor an unreasonably large share of contracts for such supply or installations;

          (3) To the extent practicable and consistent with the other provisions of this section, minimizes the cost of the measure to the eligible customer; and

          (4) Allows the eligible customer to obtain from the utility upon request a current estimate of the average local price for the supply and installation.

     2.  Before a utility undertakes to supply or install material or equipment pursuant to this section, the utility must obtain the Commission’s approval.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.858  Supply and installation of material or equipment by utility: Duties of utility. (NRS 703.025, 704.210)  In supplying or installing material or equipment for conservation of energy, a utility shall, except in supplying devices pursuant to paragraph (a) of subsection 1 of NAC 704.832:

     1.  Charge fair and reasonable prices and interest rates and upon request of the Commission file a list of comparative prices and interest rates.

     2.  Conduct its activities in a manner which does not have a substantially adverse effect upon competition or involve the use of unfair, deceptive or anticompetitive acts or practices.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.860  Prohibited discrimination. (NRS 703.025, 704.210)  A utility shall not unfairly discriminate:

     1.  Against any person in providing the announcement of its program for conserving energy in residential buildings or in the content of the announcement, including any advertising for sale or installation by a supplier or contractor, including the utility.

     2.  Among eligible customers in providing inspections of their residential buildings and dwelling units.

     3.  Among measures for conservation of energy.

     4.  Among suppliers or contractors in making recommendations to an eligible customer during an inspection of his or her premises or in making arrangements for the installation of material or equipment to carry out measures for conserving energy.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.862  Determination of levels of R-values for insulation of ceilings and appropriateness of thermal windows. (NRS 703.025, 704.210)

     1.  The levels of R-values for insulation of ceilings and the appropriateness of thermal windows must be determined in accordance with the International Energy Conservation Code, as adopted by reference pursuant to NAC 704.803.

     2.  For the purposes of determining the levels of R-values for insulation in ceilings and the appropriateness of thermal windows pursuant to subsection 1, residential buildings are categorized according to use of fuel, as follows:

     (a) Electricity: all residential buildings in which the principal means of heating spaces is by a system of electric resistance heating.

     (b) Gas: all residential buildings in which natural gas, propane or butane is the principal fuel used for heating spaces.

     (c) Heat pump: all residential buildings in which the principal means of heating spaces is by an electric heat pump.

     (d) Oil: all residential buildings in which heating oil or kerosene of grade number 2 is the principal fuel used for heating spaces.

     (e) Solar: all residential buildings in which the principal means of heating spaces and water is solar photovoltaic panels or solar thermal panels.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006; R011-15, 10-27-2015)

      NAC 704.870  Annual reports. (NRS 703.025, 704.210)  Each utility shall submit to the Commission annually a report regarding actions undertaken by the utility pursuant to NAC 704.800 to 704.876, inclusive, during the 12-month period ending the preceding April 1. The report must:

     1.  Show the number and nature of services, including inspections pursuant to NAC 704.814 and arrangements for installations which have been requested or provided.

     2.  Show the nature and status of any direct supply or installation activities engaged in by the utility.

     3.  Contain an estimate of the utility’s costs incurred in carrying out the provisions of NAC 704.800 to 704.876, inclusive.

     4.  Be accompanied by a copy of the announcement of the utility’s program in effect during the 12-month period covered by the report.

     5.  Show by statistical analysis:

     (a) The effectiveness of such announcements and any related advertising in encouraging its customers to engage in the practices for conserving energy as listed in NAC 704.808; and

     (b) The effectiveness of each of the other services provided pursuant to NAC 704.800 to 704.876, inclusive, in encouraging its customers to take the measures for conserving energy as listed in NAC 704.806.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.872  Accounting for amounts received or expended. (NRS 703.025, 704.210)  Each utility shall account in the following manner for all amounts which the utility receives or expends in carrying out the provisions of NAC 704.800 to 704.876, inclusive:

     1.  All amounts which the utility receives or expends must be accounted for on books and records separately from amounts attributable to any of the other activities of the utility.

     2.  All amounts which the utility expends in providing the announcement of the program of the utility and in conducting any public education or promotion concerning the activities of the utility under those sections must be charged to subaccounts within Account 909, Customer Service and Information Expenses, as prescribed in the applicable Uniform System of Accounts. The subaccounts must be maintained in such a manner as to allow ready identification of expended costs.

     3.  All other amounts which the utility expends in carrying out those sections must be charged to subaccounts within Account 908, Customer Assistance Expenses, as prescribed in the applicable Uniform System of Accounts. The subaccounts must be maintained in such a manner as to allow ready identification of expended costs and must be segregated into the following categories:

     (a) Expenses incurred for inspections conducted pursuant to NAC 704.814.

     (b) Expenses incurred in arranging for installations to carry out measures for conserving energy.

     (c) Expenses incurred in furnishing the materials and making the installations required by subsection 1 of NAC 704.832.

     (d) All other expenses incurred in supplying or installing material for conservation of energy.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.874  Crediting of amounts received as reimbursement for expenses. (NRS 703.025, 704.210)  Amounts received by a utility as reimbursement for expenses incurred by the utility in supplying or installing material to conserve energy must be credited to a separate subaccount within Account 908.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

      NAC 704.876  Operating expenses of utility; recovery of expenses. (NRS 703.025, 704.210)

     1.  Except as otherwise provided by subsection 3, all amounts incurred in carrying out the provisions of NAC 704.800 to 704.876, inclusive, must be treated as current operating expenses of the utility and may be recovered as follows:

     (a) Such expenses must be deferred by making appropriate credits to Accounts 908 and 909 and debiting FERC Account 186.

     (b) Appropriate deferred income tax amounts must be calculated and recorded by debiting FERC Account 410.1 and crediting FERC Account 283. Separate subaccounts for such amounts must be maintained.

     (c) The Commission will establish a monthly base cost at the time of each general rate case. The monthly base cost will be calculated by dividing such expenses by 12.

     (d) Each month the utility must compare the amount of the base cost with the actual amount of such expenses incurred in the month. If the actual charges are greater than the base cost, the difference must be credited in separate subaccounts in Accounts 908 and 909, and a debit in the same amount must be recorded in a separate subaccount in Account 186, Other Deferred Debits. If the actual charges are less than the base cost, the difference must be recorded as a debit in those subaccounts in Accounts 908 and 909, and a credit in the same amount must be recorded in the subaccount in Account 186.

     (e) Any accumulated debit or credit balance in the subaccount in Account 186 must be cleared once each year through an amortization charge or credit to be paid or received by each of the utility’s customers.

     (f) Prior approval of the amount to be amortized must be obtained from the Commission. A petition for such an approval may be filed concurrently with an application for a Deferred Energy Accounting Adjustment or a Purchased Gas Adjustment.

     (g) Each petition for such an approval must include the appropriate rate for amortization, based on cents per kilowatt-hour or cents per therm and based upon recorded sales in the test year. In addition, the petition must be accompanied by an exhibit showing the derivation of the rate and a summary of any entries made to Account 186 for such expenses.

     2.  All revenues received through such an amortization must be credited to Account 186, less an allowance for mill assessments and uncollectible expenses in an amount equal to the rate derived from the utility’s last general rate case times gross revenues received from the amortization. A debit to the account must be made in an amount equal to the carrying charges on the balance at the end of the month of the entries made to the account pursuant to NAC 704.800 to 704.876, inclusive. The carrying charges must be calculated at a rate equal to one-twelfth of the overall rate of return last authorized for the utility by the Commission.

     3.  Expenses incurred in supplying or installing material or equipment for conserving energy, except for measures required to be offered by subsection 1 of NAC 704.832, must be charged directly to the customer for whom those measures were provided.

     (Added to NAC by Pub. Service Comm’n, 1-19-84, eff. 5-17-84; A by Pub. Utilities Comm’n by R058-06, 6-28-2006)

COGENERATION AND SMALL POWER PRODUCTION

      NAC 704.8771  “Small power production facility” defined. (NRS 703.025, 704.210)  As used in NAC 704.8771 to 704.8793, inclusive, unless the context otherwise requires, “small power production facility” means a facility which complies with the provisions set forth in 18 C.F.R. § 292.204 as it existed on April 1, 1991.

     [Pub. Service Comm’n, Gen. Order 32 § 2.0, eff. 8-21-81]—(NAC A 3-27-92)—(Substituted in revision for NAC 704.690)

      NAC 704.8773  Applicability. (NRS 703.025, 704.210)  The provisions of NAC 704.8771 to 704.8793, inclusive, apply to all public utilities supplying electric service.

     [Pub. Service Comm’n, Gen. Order 32 § 1.2, eff. 8-21-81]—(NAC A 3-27-92)—(Substituted in revision for NAC 704.695)

      NAC 704.8775  Adoption by reference of certain federal regulations. (NRS 703.025, 704.210)

     1.  The provisions of 18 C.F.R. §§ 292.101 to 292.207, inclusive, are hereby adopted by reference in the form most recently published by the United States Government Printing Office.

     2.  The volume containing 18 C.F.R. Parts 1-399 is available by mail from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://bookstore.gpo.gov, for the price of $68. The regulations may be accessed free of charge on the Internet at http://www.gpo.gov/fdsys/.

     [Pub. Service Comm’n, Gen. Order 32 § 3.3, eff. 8-21-81]—(NAC A 3-27-92; A by Pub. Utilities Comm’n by R011-15, 10-27-2015)—(Substituted in revision for NAC 704.700)

      NAC 704.8777  Proposed contract for purchase of capacity or energy: Contents; requirement for bond or other security; application for approval of contract. (NRS 703.025, 704.210, 704.310)

     1.  Each proposed contract for the purchase of capacity or energy which is filed with the Commission pursuant to NRS 704.310 must include, without limitation:

     (a) The level of capacity which will be provided by the qualifying facility.

     (b) The rates for the sale of capacity or energy to the utility.

     (c) The procedure for modifying or terminating the contract if the qualifying facility fails to meet critical milestones.

     (d) A requirement for the installation of a metering device to record the delivery of power from the qualifying facility to the utility.

     (e) A requirement that the qualifying facility obtain insurance for liability to protect a utility from damages which may result from the injury or death of a person or the destruction of property because of the operation of a qualifying utility.

     (f) The duties relating to the operation of the qualifying facility which may be assigned or delegated by the owner or operator of that facility. An owner or operator of a facility shall not delegate his or her duties to a person who lacks the resources or knowledge and experience to perform in accordance with the provisions of the contract.

     (g) Remedies and damages available to the utility for the failure of the qualifying facility to perform its duties pursuant to the contract, including, without limitation, the:

          (1) Recovery of any overpayments;

          (2) Cost of the replacement of capacity or power; and

          (3) Incremental cost of a replacement facility.

     (h) The method for allocating the interconnection costs for the delivery of power from the qualifying facility.

     2.  If a contract which includes front-end payments does not include a requirement that the qualifying facility obtain a bond or other security, the reason for the lack of such a requirement must be submitted to the Commission at the time the contract is filed.

     3.  An application for approval of a contract executed by a public utility and a qualifying facility, independent producer of power or similar entity that contracts with a public utility to sell the utility power must include the amount of bonds, the interest on which is exempt from federal income tax or excluded from gross revenue for the purposes of federal income tax, which the qualifying facility, independent producer of power or similar entity intends to seek from the State of Nevada or any political subdivision thereof. The qualifying facility, independent producer of power, or similar entity shall give notice of the amount of the bonds which it intends to seek to the Director of the Department of Business and Industry at the time it files its application with the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 3-27-92; A 11-12-93)—(Substituted in revision for NAC 704.703)

      NAC 704.8779  Proposed contract for purchase of capacity or energy: Consistency with plan to increase supply of or decrease demand for electricity. (NRS 703.025, 704.210, 704.310)  The Commission shall not approve a proposed contract for the purchase of capacity or power pursuant to NRS 704.310 unless the provisions of the contract are consistent with the plan accepted pursuant to the provisions of NAC 704.9005 to 704.9525, inclusive.

     (Added to NAC by Pub. Service Comm’n, eff. 3-27-92)—(Substituted in revision for NAC 704.707)

      NAC 704.8781  Submission of information. (NRS 703.025, 704.210)  The owner or operator of a qualifying facility or a facility which may become a qualifying facility shall submit the following information, without limitation, to the utility before negotiations relating to the contract for the purchase of that energy begin:

     1.  His or her name and address and the location of the facility;

     2.  A brief description of the facility, including a statement whether it is a small power production facility or a cogeneration facility;

     3.  The primary source of energy used or to be used by the facility;

     4.  The capacity of the facility for the production of power;

     5.  The percentage of ownership which will be held in the facility by any electric utility or any holding company of a public utility;

     6.  Proof that the owner or operator of the facility controls or will obtain control of the site for the facility;

     7.  The efficiency of the generation of electricity of the facility; and

     8.  If the facility is a cogeneration facility, the total efficiency of the generation of electricity and the use of waste energy of the facility.

     [Pub. Service Comm’n, Gen. Order 32 § 3.4, eff. 8-21-81]—(NAC A 3-27-92)—(Substituted in revision for NAC 704.710)

      NAC 704.8783  Requirements for reporting data: Short-term avoided costs; analyses and calculations for determining proposed rates. (NRS 703.025, 704.210)

     1.  Each utility shall file annually with the Commission, in the format for a tariff, the:

     (a) Short-term avoided costs for its electric system, including a capacity component and an energy component. The costs must be in the format of a tariff and be stated in dollars per kilowatt-hour for peak and off-peak periods.

     (b) Analyses and calculations used to determine the proposed rates.

     2.  The short-term avoided costs of each utility must be filed with the Commission within 60 days after the Commission issues an order accepting the utility’s resource plan.

     3.  The short-term avoided costs for each utility must be the utility’s most current projections for short-term capacity and energy costs.

     4.  As used in this section, “resource plan” has the meaning ascribed to it in NAC 704.9156.

     [Pub. Service Comm’n, Gen. Order 32 § 4.0, eff. 8-21-81]—(NAC A 2-18-88; 3-17-89; 3-27-92; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.8785  Requirements for reporting data: Information relating to design, operations and safety; efficiency of generation of power. (NRS 703.025, 704.210)  A utility shall file with the Commission, in the format for a tariff, the requirements for:

     1.  The design, operations and safety related to cogeneration facilities and small power production facilities located within the utility’s certificated area in this State; and

     2.  The total efficiency of the generation of power for each cogeneration facility located within the utility’s certificated area in this State.

     [Pub. Service Comm’n, Gen. Order 32 § 5.0, eff. 8-21-81]—(NAC A 3-27-92)—(Substituted in revision for NAC 704.720)

      NAC 704.8787  Interconnection costs. (NRS 703.025, 704.210)

     1.  A qualifying facility must pay for all appropriate interconnection costs with an electric utility.

     2.  The interconnection costs of a facility which is already interconnected with a utility to sell electric energy are limited to any additional expenses incurred by the utility to permit purchases of electric energy.

     3.  The interconnection costs of a facility which is not already interconnected with a utility to sell electric energy are limited to the costs related to the interconnection facilities necessary to receive energy or capacity from the qualifying facility into the utility’s grid in accordance with the requirements adopted by the utility.

     [Pub. Service Comm’n, Gen. Order 32 § 6.0, eff. 8-21-81]—(NAC A 3-27-92)—(Substituted in revision for NAC 704.725)

      NAC 704.8789  System emergency. (NRS 703.025, 704.210)

     1.  A qualifying facility is required to provide energy or capacity to an electric utility during a system emergency only to the extent:

     (a) Provided by agreement between the facility and the utility; or

     (b) Ordered by federal authority pursuant to the Federal Power Act (16 U.S.C. § 824a).

     2.  During any system emergency, an electric utility may discontinue:

     (a) Purchasing electric energy from a qualifying facility if the purchases would aggravate the emergency; and

     (b) Selling electric energy to a qualifying facility, if the discontinuance is nondiscriminatory.

     3.  An electric utility may make the final determination whether to buy electric energy from or sell electric energy to a qualifying facility during a system emergency.

     [Pub. Service Comm’n, Gen. Order 32 § 7.0, eff. 8-21-81]—(Substituted in revision for NAC 704.730)

      NAC 704.8791  Contracts and short-term rates for purchase of power; rates for sales. (NRS 703.025, 704.210)

     1.  Short-term rates for the purchase of power from qualifying facilities must:

     (a) Be just and reasonable to the customers of the utility and in the public interest;

     (b) Not discriminate against qualifying facilities; and

     (c) Reflect not more than the full avoided costs of the utility.

     2.  An electric utility may enter into a contract for the purchase of power from any qualifying facility. The utility shall file with the Commission any contract entered into with a qualifying facility.

     3.  The rates for sales to qualifying facilities must be identical to the rates applicable to customers within the same class of customers as the qualifying facility.

     [Pub. Service Comm’n, Gen. Order 32 § 8.0, eff. 8-21-81]—(NAC A 3-27-92; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.8793  Resolution of disputes. (NRS 703.025, 704.210)  The Commission may resolve disputes between a qualifying facility and a utility which are germane to the utility’s compliance with NAC 704.8771 to 704.8793, inclusive.

     [Pub. Service Comm’n, Gen. Order 32 § 10.0, eff. 8-21-81]—(Substituted in revision for NAC 704.745)

ELECTRIC SERVICE

Renewable Energy Zones

      NAC 704.880  Designation; request for revision. (NRS 703.025, 704.210, 704.741)

     1.  The Commission designates as renewable energy zones those zones identified on the following map:

 

 

     2.  A person may petition the Commission to request a revision to the designated renewable energy zones.

     3.  As used in this section, “renewable energy zones” has the meaning ascribed to it in NRS 704.741.

     (Added to NAC by Pub. Utilities Comm’n by R146-09, eff. 1-28-2010)

Master Meters

      NAC 704.8805  Definitions. (NRS 703.025, 704.210)  As used in this section and NAC 704.8806 and 704.8807, unless the context otherwise requires:

     1.  “Customer” means a person, association, corporation or other organization which receives or will receive electric energy from a public utility.

     2.  “Master meter” means a device that measures the consumption of electric energy in two or more separate units of a building.

     3.  “Master metering” means the measurement of the consumption of electric energy in two or more separate units of a building by the use of a single measuring device.

     4.  “New building” means a structure which is constructed from the ground up after August 21, 1981.

     [Pub. Service Comm’n, Gen. Order 29 § 2.0, eff. 8-21-81]—(Substituted in revision for NAC 704.550)

      NAC 704.8806  Applicability. (NRS 703.025, 704.210)  The provisions of this section and NAC 704.8805 and 704.8807 apply to all public utilities supplying electric energy.

     [Pub. Service Comm’n, Gen. Order 29 § 1.2, eff. 8-21-81]—(Substituted in revision for NAC 704.555)

      NAC 704.8807  Restricted use. (NRS 703.025, 704.210)

     1.  Except as otherwise provided in subsection 2, the use of a master meter for a new building is prohibited if:

     (a) The building has more than one unit;

     (b) The occupant of each unit controls a portion of the electric energy used in the building; and

     (c) The long-run benefits of separate metering outweigh the costs of purchasing and installing separate meters.

     2.  Master metering is not prohibited if a new building is initially constructed as one unit and is later subdivided into several units and if the utility determines that individual metering of each unit is impractical or impossible.

     3.  A customer who desires to have a master meter installed in a new building has the burden of proving to the utility that master metering for the building should not be prohibited. If the customer is not satisfied with the utility’s determination on the matter, he or she may file a complaint against the utility with the Commission pursuant to the Rules of Practice and Procedure before the Commission.

     4.  The utility shall file with the Commission and provide each customer who requests the installation of a master meter a written statement of the criteria which the utility uses in evaluating such a request.

     [Pub. Service Comm’n, Gen. Order 29 § 3.0, eff. 8-21-81]—(Substituted in revision for NAC 704.560)

Net Metering Systems

      NAC 704.881  Definitions. (NRS 703.025, 704.210, 704.773)  As used in NAC 704.881 to 704.8825, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.8811 to 704.8819, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R032-08, eff. 9-18-2008; A by R140-09, 4-20-2010)

      NAC 704.8811  “Customer-generator” defined. (NRS 703.025, 704.210, 704.773)  “Customer-generator” has the meaning ascribed to it in NRS 704.768.

     (Added to NAC by Pub. Utilities Comm’n by R032-08, eff. 9-18-2008)

      NAC 704.8812  “Interconnection” defined. (NRS 703.025, 704.210, 704.773)  “Interconnection” means the physical connection of a generating facility to the utility so that parallel operation with the utility system may occur.

     (Added to NAC by Pub. Utilities Comm’n by R032-08, eff. 9-18-2008)

      NAC 704.8813  “Metering” defined. (NRS 703.025, 704.210, 704.773)  “Metering” means the measuring of the flow of electrical power in kilowatts or kilowatt-hours.

     (Added to NAC by Pub. Utilities Comm’n by R032-08, eff. 9-18-2008)

      NAC 704.8814  “Net metering” defined. (NRS 703.025, 704.210, 704.773)  “Net metering” has the meaning ascribed to it in NRS 704.769.

     (Added to NAC by Pub. Utilities Comm’n by R032-08, eff. 9-18-2008)

      NAC 704.8815  “Net metering system” defined. (NRS 703.025, 704.210, 704.773)  “Net metering system” has the meaning ascribed to it in NRS 704.771.

     (Added to NAC by Pub. Utilities Comm’n by R032-08, eff. 9-18-2008)

      NAC 704.8816  “Solar Energy Program” defined. (NRS 703.025, 704.210, 704.773)  “Solar Energy Program” has the meaning ascribed to it in NRS 701B.160.

     (Added to NAC by Pub. Utilities Comm’n by R032-08, eff. 9-18-2008)

      NAC 704.8817  “Third-party system owner or operator” defined. (NRS 703.025, 704.210, 704.773)  “Third-party system owner or operator” means a person who for compensation owns or operates individual systems which use renewable energy to generate electricity and sell the electricity generated from those systems to not more than one customer of the public utility per individual system if each individual system is:

     1.  Located on the premises of another person;

     2.  Used to produce not more than 150 percent of that other person’s requirements for electricity on an annual basis, as measured in kilowatts, for the premises on which the individual system is located; and

     3.  Not part of a larger system that aggregates electricity generated from renewable energy for resale or use on premises other than the premises on which the individual system is located.

     (Added to NAC by Pub. Utilities Comm’n by R140-09, eff. 4-20-2010)

      NAC 704.8818  “Waterpower Demonstration Program” defined. (NRS 703.025, 704.210, 704.773)  “Waterpower Demonstration Program” has the meaning ascribed to it in NRS 701B.810.

     (Added to NAC by Pub. Utilities Comm’n by R032-08, eff. 9-18-2008)

      NAC 704.8819  “Wind Demonstration Program” defined. (NRS 703.025, 704.210, 704.773)  “Wind Demonstration Program” has the meaning ascribed to it in NRS 701B.550.

     (Added to NAC by Pub. Utilities Comm’n by R032-08, eff. 9-18-2008)

      NAC 704.882  Net metering tariffs: Application for approval; contents. (NRS 701B.840, 703.025, 704.210, 704.773)  A utility must file an application with the Commission to obtain approval of a net metering tariff. The net metering tariff must include, at a minimum, the following provisions:

     1.  Net metering must be accomplished using a single meter capable of registering the flow of electricity in both directions, except that if the net metering system of a customer-generator has a capacity of more than 25 kilowatts, the utility may require the customer-generator to install, at his or her own expense or at a cost which is negotiated between the customer-generator and the third-party system owner or operator, an energy meter that is capable of measuring generation output and customer load.

     2.  Billing for net metering must be made in accordance with the provisions of NRS 704.775.

     3.  Interconnection with the utility must be consistent with the utility’s tariff.

     4.  The net metering system must meet the standards set forth in NRS 704.774.

     (Added to NAC by Pub. Utilities Comm’n by R032-08, eff. 9-18-2008; A by R140-09, 4-20-2010; R083-11, 5-30-2012)

      NAC 704.8821  Standard net metering contracts: Creation; provision to customers; negotiation of alternative arrangements. (NRS 703.025, 704.210, 704.773)

     1.  The utility shall create a standard net metering contract which must be provided to any customer upon request. The standard net metering contract must include, at a minimum:

     (a) A description of the facilities to be interconnected;

     (b) The requirements for maintenance of the interconnected facilities;

     (c) Provisions for access by the utility to the premises where the net metering system is located;

     (d) Provisions for the interruption of delivery of electricity;

     (e) A description of the liabilities and rights of indemnity of both the customer-generator and the utility;

     (f) The requirements of insurance for the customer-generator pursuant to subsection 2 of NRS 704.774;

     (g) The term of the contract and the process for renewal of the contract; and

     (h) An explanation of the disposition of portfolio energy credits and a statement informing the customer that:

          (1) The installation of meters by the utility or upgrades made to the utility’s system do not entitle the utility to the portfolio energy credits generated by the customer-generator’s net metering system; and

          (2) Portfolio energy credits issued pursuant to the Solar Energy Program, Wind Demonstration Program or Waterpower Demonstration Program must be assigned to and become the property of the utility administering the programs.

     2.  The existence of a net metering contract pursuant to subsection 1 does not excuse the utility from negotiating alternative arrangements with a customer for net metering in a manner consistent with the provisions of this chapter and the utility’s tariff.

     (Added to NAC by Pub. Utilities Comm’n by R032-08, eff. 9-18-2008)

      NAC 704.8822  Dissemination of certain information and forms to customers. (NRS 703.025, 704.210, 704.773)

     1.  The utility shall:

     (a) Establish a point of contact between the utility and a customer so that the customer may inquire about net metering or request an application form for net metering; and

     (b) Make available at the office of the utility and on the Internet website maintained by the utility an application form for net metering, a copy of the standard net metering contract and a written description in plain English describing the process by which a customer may interconnect with the utility under net metering.

     2.  The utility shall send the documents described in paragraph (b) of subsection 1 to the customer within 5 business days after the date of receipt of the request for an application form.

     3.  The utility shall, at least semiannually in a bill insert, indicate the availability of the application form for net metering and how it may be obtained.

     (Added to NAC by Pub. Utilities Comm’n by R032-08, eff. 9-18-2008)

      NAC 704.8823  Duties of utility upon receipt of application for net metering and upon installation of net metering system; provision of certain contact information. (NRS 703.025, 704.210, 704.773)

     1.  The utility shall:

     (a) If an application for net metering is complete and complies with the standards set forth in NRS 704.774, review the application for approval and send a standard net metering contract to the customer for signature within 10 business days after receipt by the utility of the application.

     (b) If an application for net metering is incomplete or does not comply with the standards set forth in NRS 704.774, return the application to the customer within 10 business days after receipt by the utility of the application with an explanation specifying in sufficient detail the application’s deficiencies to enable the customer to correct such deficiencies on the application for resubmission.

     2.  The utility shall authorize interconnection by the customer or provide to the customer a written description of any deficiencies that must be corrected before interconnection is authorized within 10 business days after the utility:

     (a) Is notified by the customer that installation of the net metering system is complete; and

     (b) Receives a copy of any required document relating to a final inspection or clearance of the net metering system issued by any other governmental entity with jurisdiction over the installation of the net metering system.

     3.  At or before the time the utility authorizes the interconnection by the customer, the utility shall send a copy of the fully executed contract to the customer.

     4.  The utility shall notify any customer who receives or requests an application for net metering that the customer may contact the Division of Consumer Complaint Resolution of the Commission if the customer is dissatisfied with the timeliness of the response by the utility to the application for net metering.

     (Added to NAC by Pub. Utilities Comm’n by R032-08, eff. 9-18-2008)

      NAC 704.8824  Designation by customer-generator of third-party system owner or operator to work with utility. (NRS 703.025, 704.210, 704.773)  A customer-generator may designate a third-party system owner or operator to work with the utility on behalf of the customer-generator on matters relating to the net metering system of the customer-generator.

     (Added to NAC by Pub. Utilities Comm’n by R140-09, eff. 4-20-2010)

      NAC 704.8825  Limitation on relationship or agreement between customer-generator and third-party system owner or operator. (NRS 703.025, 704.210, 704.773)  Any relationship or agreement between a customer-generator and a third-party system owner or operator must not prohibit the customer-generator from participating in any utility program that encourages the development of renewable energy.

     (Added to NAC by Pub. Utilities Comm’n by R140-09, eff. 4-20-2010)

Portfolio Standard

      NAC 704.8831  Definitions. (NRS 703.025, 704.210, 704.7828)  As used in NAC 704.8831 to 704.8899, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.8833 to 704.8867, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002; A by R210-03, 5-21-2004; R153-04, 11-10-2004; R167-05, 2-23-2006)

      NAC 704.8833  “Biogas” defined. (NRS 703.025, 704.210, 704.7828)

     1.  “Biogas” means methane and other gases produced from the decomposition of organic matter.

     2.  The term includes, without limitation:

     (a) Landfill gases.

     (b) Wastewater treatment gases.

     (c) Industrial digester gases.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002)

      NAC 704.8835  “Biomass” defined. (NRS 703.025, 704.210, 704.7828)

     1.  “Biomass” has the meaning ascribed to it in NRS 704.007.

     2.  The term includes, without limitation:

     (a) Biogas.

     (b) Any product made from agricultural crops or residues, including, without limitation, cooking oils.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002)

      NAC 704.8837  “Bureau of Consumer Protection” defined. (NRS 703.025, 704.210, 704.7828)  “Bureau of Consumer Protection” means the Bureau of Consumer Protection in the Office of the Attorney General.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002)

      NAC 704.8839  “Compliance year” defined. (NRS 703.025, 704.210, 704.7828)

     1.  “Compliance year” means a calendar year that begins on January 1 and ends on December 31.

     2.  The term does not include any calendar year that begins before January 1, 2003.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002)

      NAC 704.88395  “Energy efficiency contract” defined. (NRS 703.025, 704.210, 704.7828)  “Energy efficiency contract” has the meaning ascribed to it in NRS 704.7821.

     (Added to NAC by Pub. Utilities Comm’n by R064-10, eff. 10-15-2010)

      NAC 704.88411  “Long-term portfolio energy credits contract” defined. (NRS 703.025, 704.210, 704.7828)  “Long-term portfolio energy credits contract” means a contract for the purchase of portfolio energy credits with a term of more than 3 years.

     (Added to NAC by Pub. Utilities Comm’n by R064-10, eff. 10-15-2010)

      NAC 704.88412  “Long-term renewable energy contract” defined. (NRS 703.025, 704.210, 704.7828)  “Long-term renewable energy contract” means a contract for the purchase of renewable energy with a term of more than 3 years.

     (Added to NAC by Pub. Utilities Comm’n by R064-10, eff. 10-15-2010)

      NAC 704.8842  “New renewable energy project” defined. (NRS 703.025, 704.210, 704.7828)  “New renewable energy project” means a renewable energy project, the construction of which commenced on or after July 1, 2001.

     (Added to NAC by Pub. Utilities Comm’n by R153-04, eff. 11-10-2004)

      NAC 704.8843  “Nonutility provider” defined. (NRS 703.025, 704.210, 704.7828)  “Nonutility provider” means a provider of electric service that is not a public utility.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002)

      NAC 704.8845  “Portfolio standard” defined. (NRS 703.025, 704.210, 704.7828)  “Portfolio standard” has the meaning ascribed to it in NRS 704.7805.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002)

      NAC 704.8849  “Provider of electric service” and “provider” defined. (NRS 703.025, 704.210, 704.7828)  “Provider of electric service” and “provider” have the meaning ascribed to them in NRS 704.7808.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002)

      NAC 704.8851  “Regulatory Operations Staff” defined. (NRS 703.025, 704.210, 704.7828)  “Regulatory Operations Staff” means the Regulatory Operations Staff of the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002)

      NAC 704.8853  “Renewable energy” defined. (NRS 703.025, 704.210, 704.7828)  “Renewable energy” has the meaning ascribed to it in NRS 704.7811.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002)

      NAC 704.8855  “Renewable energy contract” defined. (NRS 703.025, 704.210, 704.7828)  “Renewable energy contract” has the meaning ascribed to it in NRS 704.7821.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002)

      NAC 704.8857  “Renewable energy system” defined. (NRS 703.025, 704.210, 704.7828)  “Renewable energy system” has the meaning ascribed to it in NRS 704.7815.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002)

      NAC 704.8859  “Retail customer” defined. (NRS 703.025, 704.210, 704.7828)  “Retail customer” has the meaning ascribed to it in NRS 704.7818.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002)

      NAC 704.886  “Short-term portfolio energy credits contract” defined. (NRS 703.025, 704.210, 704.7828)  “Short-term portfolio energy credits contract” means a contract for the purchase of portfolio energy credits that has a duration of not more than 3 years.

     (Added to NAC by Pub. Utilities Comm’n by R064-10, eff. 10-15-2010)

      NAC 704.8862  “Short-term renewable energy contract” defined. (NRS 703.025, 704.210, 704.7828)  “Short-term renewable energy contract” means a contract for the purchase of renewable energy that has a duration of not more than 3 years.

     (Added to NAC by Pub. Utilities Comm’n by R064-10, eff. 10-15-2010)

      NAC 704.8863  “Solar thermal system” defined. (NRS 703.025, 704.210, 704.7828)  “Solar thermal system” means an energy system that:

     1.  Reduces the consumption of electricity, natural gas or propane by using solar radiation to heat water or provide space heating or cooling and meets the requirements of NAC 704.8893; or

     2.  Uses solar radiation in a combined-cycle operation to increase the electric output of an electric generating plant or unit.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002; A by R210-03, 5-21-2004)

      NAC 704.8865  “SRCC” defined. (NRS 703.025, 704.210, 704.7828)  “SRCC” means the Solar Rating and Certification Corporation or any successor in interest to that organization.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002)

      NAC 704.8866  “Temporary renewable energy development charge” and “TRED charge” defined. (NRS 703.025, 704.210, 704.7828)  “Temporary renewable energy development charge” or “TRED charge” means an amount determined pursuant to NAC 704.8897 to be collected by a utility provider from retail electric customers on behalf of a TRED trust.

     (Added to NAC by Pub. Utilities Comm’n by R153-04, eff. 11-10-2004)

      NAC 704.88663  “Temporary renewable energy development program” and “TRED program” defined. (NRS 703.025, 704.210, 704.7828)  “Temporary renewable energy development program” or “TRED program” means a program established by order of the Commission to assist with the completion of new renewable energy projects associated with Commission-approved renewable energy or portfolio energy credits contracts.

     (Added to NAC by Pub. Utilities Comm’n by R153-04, eff. 11-10-2004; A by R064-10, 10-15-2010)

      NAC 704.88665  “Temporary renewable energy development trust” and “TRED trust” defined. (NRS 703.025, 704.210, 704.7828)  “Temporary renewable energy development trust” or “TRED trust” means a trust established by a utility provider pursuant to an order of the Commission issued pursuant to NAC 704.8897 for the benefit of eligible new renewable energy projects.

     (Added to NAC by Pub. Utilities Comm’n by R153-04, eff. 11-10-2004)

      NAC 704.8867  “Utility provider” defined. (NRS 703.025, 704.210, 704.7828)  “Utility provider” means a provider of electric service that is a public utility.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002)

      NAC 704.8869  Adoption by reference of certain ratings, certification standards and performance estimates. (NRS 703.025, 704.210, 704.7828)

     1.  For the purposes of NAC 704.8831 to 704.8899, inclusive, the Commission hereby adopts by reference the ratings, certification standards and annual performance estimates of the SRCC.

     2.  Copies of the ratings, certification standards and annual performance estimates of the SRCC are available at no charge from the SRCC, c/o FSEC, 1679 Clearlake Road, Cocoa, Florida 32922-5703, or at the Internet website of the SRCC, http://www.solar-rating.org.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002)

      NAC 704.8871  Compliance with portfolio standard. (NRS 703.025, 704.210, 704.7828)

     1.  Except as otherwise provided in NAC 704.8831 to 704.8899, inclusive:

     (a) Each utility provider shall comply with its portfolio standard during each compliance year by generating, acquiring or saving electricity from a portfolio energy system or efficiency measure in the amounts required by NRS 704.7821 for that compliance year;

     (b) If a provider of new electric resources made energy, capacity or ancillary services from a new electric resource available to an eligible customer before July 1, 2009, the portfolio standard set forth in NRS 704.7821 which was effective on the date on which the order approving the application or request was approved shall be deemed to apply to the provider of new electric resources, and the provider of new electric resources shall comply with its portfolio standard by generating, acquiring or saving electricity from a portfolio energy system or efficiency measure in the amounts required by NRS 704.7821 for that compliance year; and

     (c) If a provider of new electric resources made energy, capacity or ancillary services from a new electric resource available to an eligible customer on or after July 1, 2009, the provider of new electric resources shall comply with its portfolio standard during each compliance year by generating, acquiring or saving electricity from a portfolio energy system or efficiency measure in the amounts required pursuant to NRS 704.78213.

     2.  Each provider has the burden to prove that it complied with its portfolio standard during each compliance year.

     3.  As used in this section, “provider of new electric resources” has the meaning ascribed to it in NRS 704B.130.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002; A by R167-05, 2-23-2006; R198-09, 1-13-2011)

      NAC 704.8872  Transfer of portfolio energy credits to aggregator of portfolio energy credits. (NRS 703.025, 704.210, 704.7821, 704.7828)

     1.  As an alternative to transferring portfolio energy credits directly to providers of electric service, portfolio energy credits generated by renewable energy systems may be transferred to an aggregator of portfolio energy credits.

     2.  As used in this section, “aggregator of portfolio energy credits” means a person who obtains portfolio energy credits and then transfers those credits in aggregate to providers of electric service.

     (Added to NAC by Pub. Utilities Comm’n by R210-03, eff. 5-21-2004; A by R167-05, 2-23-2006; R064-10, 10-15-2010)

      NAC 704.8873  Authority of Commission to require provision of certain information. (NRS 703.025, 704.210, 704.7828)  The Commission may, at any time, require a provider or an owner or operator of a portfolio energy system or efficiency measure providing electricity or portfolio energy credits to a provider pursuant to a contract to provide the Commission with any information that the Commission determines is necessary to monitor or enforce compliance with the provisions of NAC 704.8831 to 704.8899, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002; A by R167-05, 2-23-2006)

      NAC 704.8875  Calculations concerning compliance with portfolio standard: Eligibility of kilowatt-hours. (NRS 703.025, 704.210, 704.7821, 704.7828)  In calculating the total number of kilowatt-hours that a provider generates, acquires or saves from portfolio energy systems or efficiency measures during a compliance year, the provider:

     1.  May use the following kilowatt-hours if the provider has complied with all requirements for inclusion of the kilowatt-hours in its calculation:

     (a) Any kilowatt-hours generated by the provider from its own renewable energy systems during the compliance year;

     (b) Any kilowatt-hours acquired or saved by the provider during the compliance year pursuant to long-term portfolio energy credits contracts, long-term renewable energy contracts, short-term portfolio energy credits contracts, short-term renewable energy contracts or energy efficiency contracts;

     (c) Any equivalent kilowatt-hours attributable to the provider during the compliance year from solar thermal systems;

     (d) Any kilowatt-hours that are deemed to be electricity that the provider generated or acquired from a renewable energy system for the purposes of complying with its portfolio standard pursuant to paragraph (a) of subsection 3 of NRS 704.775, subsection 3 of NRS 704.7821 or subsection 3 of NRS 704.78213 and any excess kilowatt-hours fed back to the provider during the compliance year from net metering systems used by customer-generators pursuant to NRS 704.766 to 704.775, inclusive;

     (e) Any kilowatt-hours saved during the compliance year as a result of an energy efficiency measure, subject to the limitations set forth in NRS 704.7821 and 704.78213, as applicable;

     (f) Any kilowatt-hours that the provider is authorized to carry forward from previous compliance years; and

     (g) Any kilowatt-hours derived from portfolio energy credits issued to the provider by the Commission pursuant to NRS 701B.290, 701B.640 or 701B.870.

     2.  May not use the following kilowatt-hours:

     (a) Any kilowatt-hour sold as a result of customer participation in a voluntary option to purchase all or a portion of the customer’s energy from renewable resources; and

     (b) Any kilowatt-hour sold pursuant to paragraphs (b) and (c) of subsection 2 of NRS 704.7828.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002; A by R167-05, 2-23-2006; R104-07, 1-30-2008; R064-10, 10-15-2010; R198-09, 1-13-2011; R053-15, 12-21-2015)

      NAC 704.8877  Calculations concerning compliance with portfolio standard: Submission of information; estimates; effect of equaling or exceeding estimates. (NRS 703.025, 704.210, 704.7828)

     1.  Not later than April 15 of each compliance year, each provider shall submit to the Regulatory Operations Staff and the Bureau of Consumer Protection:

     (a) The total number of kilowatt-hours sold by the provider to its retail customers in this State during the most recently completed compliance year. For compliance year 2003, calendar year 2002 shall be deemed to be the most recently completed compliance year for the purposes of this paragraph.

     (b) The estimated number of kilowatt-hours that the provider expects to sell to its retail customers in this State during the current compliance year.

     (c) The estimated number of kilowatt-hours that the provider must generate, acquire or save from portfolio energy systems or efficiency measures to comply with its portfolio standard for the current compliance year, as calculated by the provider pursuant to subsection 2.

     2.  To calculate the estimated number of kilowatt-hours that the provider must generate, acquire or save from portfolio energy systems or efficiency measures to comply with its portfolio standard for the current compliance year, the provider must multiply the estimated number of kilowatt-hours that the provider expects to sell to its retail customers in this State during the current compliance year by the required percentage that is set forth pursuant to NRS 704.7821 or 704.78213, as applicable, for the current compliance year.

     3.  Except as otherwise provided in NRS 704.7828, if the total number of kilowatt-hours that the provider generates, acquires or saves from portfolio energy systems or efficiency measures for the current compliance year is equal to or exceeds the estimated number of kilowatt-hours as calculated by the provider pursuant to subsection 2, the Commission will not impose an administrative fine or take other administrative action against the provider for that compliance year.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002; A by R167-05, 2-23-2006; R198-09, 1-13-2011; R030-19, 10-30-2019)

      NAC 704.8879  Annual reports. (NRS 703.025, 704.210, 704.7825, 704.7828)

     1.  Beginning with compliance year 2004, not later than April 15 of each compliance year, each provider shall submit to the Commission an annual report that sets forth all the information required by this section.

     2.  The annual report must set forth:

     (a) The capacity of each renewable energy system owned, operated or controlled by the provider, the total number of kilowatt-hours generated by each such system during the most recently completed compliance year and the percentage of that total amount which was generated directly from renewable energy.

     (b) Whether, during the most recently completed compliance year, the provider began construction on, acquired or placed into operation any renewable energy system and, if so, the date of any such event.

     (c) The total number of kilowatt-hours sold by the provider to its retail customers in this State during the most recently completed compliance year.

     (d) The total number of kilowatt-hours that the provider generated, acquired or saved from portfolio energy systems or efficiency measures during the most recently completed compliance year and, from that total number of kilowatt-hours, subtotals for the number of kilowatt-hours:

          (1) Generated or saved by the provider from its own portfolio energy systems or efficiency measures;

          (2) Acquired by the provider pursuant to long-term portfolio energy credits contracts;

          (3) Acquired by the provider pursuant to long-term renewable energy contracts;

          (4) Acquired by the provider pursuant to short-term portfolio energy credits contracts;

          (5) Acquired by the provider pursuant to short-term renewable energy contracts;

          (6) Acquired or saved by the provider pursuant to energy efficiency contracts;

          (7) Attributable to the provider from solar thermal systems;

          (8) Fed back to the provider from net metering systems used by customer-generators pursuant to NRS 704.766 to 704.775, inclusive;

          (9) Deemed to be electricity that the provider generated or acquired from a renewable energy system for the purposes of complying with its portfolio standard pursuant to paragraph (a) of subsection 3 of NRS 704.775; and

          (10) Saved by the provider as a result of energy efficiency measures installed at service locations of residential customers of the provider for the purposes of paragraph (a) of subsection 2 of NRS 704.7821.

     (e) The total number of kilowatt-hours that the provider:

          (1) Sold as a result of customer participation in a voluntary option to purchase all or a portion of the customer’s energy from renewable resources; and

          (2) Sold pursuant to paragraphs (b) and (c) of subsection 2 of NRS 704.7828.

     (f) The total number of kilowatt-hours that the provider:

          (1) Carried forward as excess from the previous compliance years;

          (2) Intends to carry forward as excess from the most recently completed compliance year;

          (3) Intends to carry forward as excess from previous compliance years, indicating the amount from each separate year;

          (4) Carried forward as deficiencies from previous compliance years;

          (5) Intends to carry forward as deficiencies from the most recently completed compliance year; and

          (6) Intends to carry forward as deficiencies from previous compliance years, indicating the amount from each separate year.

     (g) The estimated number of kilowatt-hours that the provider expects to sell to its retail customers in this State during the current compliance year.

     (h) The estimated number of kilowatt-hours that the provider must generate, acquire or save from portfolio energy systems or efficiency measures to comply with its portfolio standard for the current compliance year, as calculated by the provider pursuant to NAC 704.8877.

     (i) If the provider is a utility provider, the estimated costs for the utility provider to comply with its portfolio standard for the current compliance year. If appropriate, the utility provider must report such estimated costs for each major type of cost, such as general and administrative costs and costs for purchased power.

     3.  In the annual report, the provider must make an affirmative showing that the provider complied with its portfolio standard during the most recently completed compliance year. If the provider did not comply with its portfolio standard during the most recently completed compliance year, in the annual report the provider must:

     (a) Make a detailed explanation for its noncompliance; and

     (b) Provide any information that would support an exemption for the provider from any administrative fine or other administrative action.

     4.  If, to comply with its portfolio standard during the most recently completed compliance year, the provider acquired any kilowatt-hours from a renewable energy system that is not owned, operated or controlled by the provider, the annual report must include an attestation from the owner or operator of the renewable energy system that the energy represented by those kilowatt-hours:

     (a) Has not been and will not be sold or otherwise exchanged for compensation or used for credit in any other state or jurisdiction; and

     (b) Has not been and will not be included within a blended energy product certified to include a fixed percentage of renewable energy in any other state or jurisdiction.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002; A by R167-05, 2-23-2006; R064-10, 10-15-2010; R198-09, 1-13-2011; R053-15, 12-21-2015; R030-19, 10-30-2019)

      NAC 704.8881  Determination of whether provider complied with portfolio standard; carry forward of excess kilowatt-hours; notice of noncompliance; hearing; resolution of deficiency; administrative fines and other administrative action. (NRS 703.025, 704.210, 704.7821, 704.7828)

     1.  Not later than 90 days after the date on which a provider submits its annual report, the Commission will issue an order stating whether the provider complied with its portfolio standard during the most recently completed compliance year.

     2.  If the Commission determines that the provider complied with its portfolio standard during the most recently completed compliance year, the Commission will determine whether the provider is authorized to carry forward any excess kilowatt-hours pursuant to NRS 704.7828. If the Commission determines that the total number of kilowatt-hours which the provider generated, acquired or saved from portfolio energy systems or efficiency measures during the most recently completed compliance year exceeded the total number of kilowatt-hours which the provider needed to comply with its portfolio standard for that compliance year:

     (a) The Commission will state in its order the number of excess kilowatt-hours which the provider is authorized to carry forward from that compliance year;

     (b) The provider may use those excess kilowatt-hours to comply with its portfolio standard for any following compliance year; and

     (c) If the provider is a utility provider, the Commission will state in its order the number of excess kilowatt-hours which are:

          (1) More than 10 percent but less than 25 percent of the amount of portfolio energy credits projected to be necessary to comply with the portfolio standard for the current compliance year based upon the estimated number of kilowatt-hours the utility provider expects to sell; and

          (2) More than 25 percent of the amount of portfolio energy credits projected to be necessary to comply with the portfolio standard for the current compliance year based upon the estimated number of kilowatt-hours the utility provider expects to sell.

     3.  If the Commission determines that the provider did not comply with its portfolio standard during the most recently completed compliance year, the Commission will:

     (a) State in its order the number of kilowatt-hours by which the provider failed to comply with its portfolio standard; and

     (b) Issue a notice of noncompliance and schedule a hearing on the matter.

     4.  At the hearing, the provider has the burden to prove that it complied with its portfolio standard during the most recently completed compliance year.

     5.  Except as otherwise provided in NAC 704.8831 to 704.8899, inclusive, if, after the hearing, the Commission determines that the provider did not comply with its portfolio standard during the most recently completed compliance year, and the Commission has not exempted the provider pursuant to NRS 704.7821 or 704.78213, the Commission will:

     (a) Proceed pursuant to NRS 704.7828; and

     (b) In any order requiring a provider to carry forward a deficiency, set forth the terms and conditions for resolution of the deficiency, except that a deficiency will not be applied to any determination of compliance with the portfolio standard set forth in NRS 704.7821 or 704.78213, as applicable, for subsequent compliance years.

     6.  While resolving any deficiency, a provider shall continue to meet its portfolio standard for the current compliance year.

     7.  In determining whether to impose an administrative fine or take other administrative action against the provider, the Commission will consider whether the provider should have built its own renewable energy systems to comply with its portfolio standard.

     8.  If a utility provider sells any portfolio energy credits pursuant to paragraph (b) or (c) of subsection 2 of NRS 704.7828 in any calendar year in which the Commission determines that the utility provider did not comply with its portfolio standard and the sale caused the utility provider not to comply with its portfolio standard, the Commission will not impose an administrative fine on the utility provider if the requirements of subsection 6 of NRS 704.7828 are satisfied.

     9.  If the Commission imposes an administrative fine that is assessed against a provider on each kilowatt-hour by which the provider failed to comply with its portfolio standard, the Commission will calculate the administrative fine, on a per kilowatt-hour basis:

     (a) For a utility provider, in an amount that is not less than the difference between the just and reasonable average cost per kilowatt-hour to acquire or save electricity pursuant to renewable energy contracts or energy efficiency contracts and the overall average cost per kilowatt-hour to generate, acquire and save electricity that is incurred by the utility provider.

     (b) For a nonutility provider, in an amount that is not less than the difference between the just and reasonable average cost per kilowatt-hour to acquire or save electricity pursuant to renewable energy contracts or energy efficiency contracts and the overall average cost per kilowatt-hour to generate, acquire and save electricity that is incurred by a utility provider designated by the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002; A by R167-05, 2-23-2006; R198-09, 1-13-2011; R053-15, 12-21-2015; R030-19, 10-30-2019)

      NAC 704.8883  Petition for exemption from administrative fine or other administrative action. (NRS 703.025, 704.210, 704.7828)

     1.  If the Commission imposes an administrative fine or takes other administrative action against a provider pursuant to NAC 704.8881, not later than 30 days after the date on which the Commission issues its order, the provider may file with the Commission a petition for an exemption from the administrative fine or other administrative action. If the provider files such a petition, the Commission will schedule a hearing on the petition to be held not later than 75 days after the date on which the petition is filed.

     2.  For the provider to be entitled to an exemption, the Commission must determine that there was not a sufficient supply of electricity from renewable energy systems or a sufficient amount of energy savings from energy efficiency measures made available to the provider during the most recently completed compliance year. The Commission will make such a determination only if it finds that:

     (a) After the provider made its request for proposals for renewable energy contracts or energy efficiency contracts, the proposals received by the provider did not offer sufficient quantities of electricity or a sufficient amount of energy savings for the provider to comply with its portfolio standard or did not offer sufficient quantities of electricity pursuant to renewable energy contracts or a sufficient amount of energy savings pursuant to energy efficiency contracts with just and reasonable terms and conditions;

     (b) After the provider contracted for sufficient quantities of electricity pursuant to renewable energy contracts or for a sufficient amount of energy savings pursuant to energy efficiency contracts with just and reasonable terms and conditions, one or more of the portfolio energy systems or efficiency measures under contract were unable or failed to meet their contractual commitments to the provider or were prevented from meeting their contractual commitments to the provider based on federal, state or local requirements or standards;

     (c) The provider could not have economically or technically placed into commercial operation its own portfolio energy systems or efficiency measures; or

     (d) Other facts and circumstances which the Commission deems relevant support a conclusion that there was not a sufficient supply of electricity from renewable energy systems or a sufficient amount of energy savings from energy efficiency measures made available to the provider. Such other facts and circumstances may include, without limitation, any regulatory delay attributable to the State of Nevada or any other governmental entity.

     3.  If, after the hearing, the Commission determines that there was not a sufficient supply of electricity from renewable energy systems or a sufficient amount of energy savings from energy efficiency measures made available to the provider during the most recently completed compliance year, the Commission:

     (a) Will grant, in whole or in part, the petition for an exemption from the administrative fine or other administrative action; and

     (b) Will not impose an administrative fine or take other administrative action against the provider with regard to any insufficiency in the portfolio standard that occurs because one or more of the portfolio energy systems or efficiency measures under contract were unable or failed to meet their contractual commitments to the provider or were prevented from meeting their contractual commitments to the provider based on federal, state or local requirements or standards.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002; A by R167-05, 2-23-2006)

      NAC 704.8885  Long-term portfolio energy credits contracts, long-term renewable energy contracts and energy efficiency contracts: Review by Commission; criteria for approval. (NRS 703.025, 704.210, 704.7821, 704.7828)

     1.  If a utility provider executes a long-term portfolio energy credits contract, long-term renewable energy contract or energy efficiency contract, the utility provider shall submit the contract to the Commission for approval. The contract shall be deemed to be a long-term purchase obligation for the purposes of NAC 704.9005 to 704.9525, inclusive, and the utility provider shall submit the contract to the Commission for approval in accordance with the provisions of those sections.

     2.  To approve a long-term portfolio energy credits contract, long-term renewable energy contract or energy efficiency contract executed by a utility provider, the Commission must determine that the terms and conditions of the contract are just and reasonable. In making its determination, the Commission will consider, as applicable and without limitation:

     (a) The reasonableness of the price for the electricity based on the factors set forth in NAC 704.8887;

     (b) The term of the contract;

     (c) The location of each portfolio energy system or efficiency measure that is subject to the contract;

     (d) The use of natural resources by each renewable energy system that is subject to the contract;

     (e) The firmness of the electricity to be delivered and the delivery schedule;

     (f) The delivery point for the electricity;

     (g) The characteristics of similar renewable energy systems;

     (h) The requirements for ancillary services;

     (i) The unit contingent provisions;

     (j) The system peak capacity requirements of the utility provider;

     (k) The requirements for scheduling;

     (l) Conditions and limitations on the transmission system;

     (m) Project insurance;

     (n) The costs for procuring replacement power in the event of nondelivery;

     (o) Information verifying that each renewable energy system which is subject to the contract transmits or distributes or will transmit or distribute the electricity that it generates from renewable energy in accordance with the requirements of NRS 704.7815;

     (p) For each owner and for each operator of a renewable energy system that is subject to the contract, the total number of renewable energy systems that each such owner and each such operator is or has been associated with as an owner or operator, including, without limitation, all renewable energy systems that are actively being constructed by or have been constructed by the owner or operator;

     (q) For each renewable energy system that is subject to the contract, the points of interconnection with the electric system of the utility;

     (r) The interconnection priority which has been established for the available transmission capacity of the utility provider for all proposed renewable energy systems that will interconnect and begin commercial operation within the 3-year period immediately following the date on which the contract is submitted for approval;

     (s) Any requests for transmission service that have been filed with the utility provider;

     (t) For each renewable energy system that is subject to the contract, any evidence that an environmental assessment, an environmental impact statement or an environmental impact report is being completed or has been completed with regard to the renewable energy system, or any evidence that a contract has been executed with an environmental contractor who will prepare such an assessment, statement or report within the 3-year period immediately preceding the date on which the renewable energy system is projected to begin commercial operation;

     (u) Whether any required permits have been acquired from or any applications for such permits have been filed with the appropriate governing agencies within the 3-year period immediately preceding the date on which the renewable energy system is projected to begin commercial operation;

     (v) Whether any applications for developmental rights have been filed with the appropriate federal agencies, including, without limitation, the United States Bureau of Land Management, where the granting of such developmental rights is not contingent upon a competitive bidding process;

     (w) For each renewable energy system that is subject to the contract, any evidence that establishes rights of ownership, possession or use concerning land or natural resources, including, without limitation, deeds, land patents, leases, contracts, licenses or permits concerning land, geothermal drilling rights or other rights to natural resources; and

     (x) Whether the utility provider has any economical dispatch rights.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002; A by R167-05, 2-23-2006; R064-10, 10-15-2010)

      NAC 704.8887  Long-term portfolio energy credits contracts, long-term renewable energy contracts and energy efficiency contracts: Determination of whether price for electricity is reasonable. (NRS 703.025, 704.210, 704.7821, 704.7828)

     1.  For the purposes of this section, each utility provider shall calculate the price for electricity acquired or saved pursuant to a long-term portfolio energy credits contract, long-term renewable energy contract or energy efficiency contract by calculating the levelized market price for the electricity based on:

     (a) The rates for electricity and capacity set forth in the contract;

     (b) Any escalators or inflation indices set forth in the contract;

     (c) Any delivery projections for electricity and capacity set forth in the contract; and

     (d) Any other terms and conditions set forth in the contract that would affect the price paid for electricity acquired or saved pursuant to the contract.

Ê All data that the utility provider uses to make its calculation must be based on the most current projections available when the contract is executed.

     2.  After the utility provider calculates the price pursuant to subsection 1, the Commission will determine whether the price is reasonable. In making its determination, the Commission will consider, without limitation:

     (a) Whether the contract comports with the utility provider’s most recently approved plan to increase its supply of or decrease the demand for electricity that is submitted to the Commission pursuant to NAC 704.9005 to 704.9525, inclusive;

     (b) The reasonableness of any price indexing provision set forth in the contract;

     (c) As compared to competing facilities or energy systems that use one or more fossil fuels as their primary source of energy to generate electricity, whether the renewable energy systems that are subject to the contract will reduce environmental costs in this State, including, without limitation:

          (1) Air emissions;

          (2) Water consumption;

          (3) Waste disposal and other land uses; and

          (4) Impacts on wildlife;

     (d) The net economic impact and all environmental benefits and environmental costs to this State in accordance with NAC 704.9005 to 704.9525, inclusive;

     (e) Any economic development benefits that might inure to any sector of the economy of this State;

     (f) The diversity of energy sources being used to generate the electricity that is consumed in this State;

     (g) The diversity of energy suppliers generating or selling electricity in this State;

     (h) The value of any price hedging or energy price stability associated with the contract;

     (i) The date on which each renewable energy system that is subject to the contract is projected to begin commercial operation;

     (j) Whether the utility provider has any flexibility concerning the quantity of electricity that the utility provider must acquire or save pursuant to the contract;

     (k) Whether the contract will result in any benefits to the transmission system of the utility provider; and

     (l) Whether the electricity acquired or saved pursuant to the contract is priced at or below the utility provider’s long-term avoided cost rate.

     3.  If a utility provider will be using a long-term portfolio energy credits contract, long-term renewable energy contract or energy efficiency contract to comply with the solar energy requirements of its portfolio standard, the price for electricity acquired pursuant to that contract will be evaluated separately from the price for electricity acquired or saved pursuant to other long-term portfolio energy credits contracts, long-term renewable energy contracts or energy efficiency contracts that will not be used to comply with the solar energy requirements of the portfolio standard.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002; A by R004-04, 5-25-2004; R167-05, 2-23-2006; R064-10, 10-15-2010)

      NAC 704.88875  Long-term portfolio energy credits contracts, long-term renewable energy contracts and energy efficiency contracts: Mitigation for impact of imputed debt on capital structure of utility provider. (NRS 703.025, 704.210, 704.741, 704.7821, 704.7828)

     1.  For a long-term portfolio energy credits contract, long-term renewable energy contract or energy efficiency contract for a term of more than 3 years, a utility provider may request that the Commission approve mitigation for the impact of imputed debt on the capital structure of the utility provider.

     2.  If a utility provider wishes to submit a request to the Commission pursuant to subsection 1, the utility provider must include the request in its resource plan which includes the long-term portfolio energy credits contract, long-term renewable energy contract or energy efficiency contract and which is submitted to the Commission for approval pursuant to the provisions of NAC 704.9005 to 704.9525, inclusive.

     3.  In the request submitted pursuant to subsection 1, the utility provider:

     (a) Shall include its estimate of the amount of the impact of imputed debt on the capital structure of the utility provider measured as a percentage of the net present value of the capacity payments over the life of the contract;

     (b) Shall, if the capacity of the portfolio energy system or efficiency measure is not specified in the contract, propose the percentage of the value of the contract payment to be assumed as a capacity payment; and

     (c) May propose an amount to be added to the cost of the contract which is equal to a compensating component in the capital structure of the utility provider. A utility requesting an amount to be added to the cost of a long-term portfolio energy credits contract, long-term renewable energy contract or energy efficiency contract shall provide information which illustrates the financial impact from any imputed debt cost and any assumptions used to develop related imputed debt calculations.

     4.  In evaluating a request submitted pursuant to subsection 1, the Commission will consider:

     (a) The effect that the proposals in the request will have on the rates paid by the retail customers of the utility provider; and

     (b) The recovery of costs equal to a compensating component in the capital structure during the utility provider’s next deferred energy rate proceeding.

     5.  If the Commission approves a request submitted pursuant to subsection 1:

     (a) The Commission will set forth in its order approving the request the impact of imputed debt on the capital structure of the utility provider measured as a percentage of the net present value of the capacity payments over the life of the contract;

     (b) The costs, if any, determined by the Commission as necessary to mitigate imputed debt costs will be collected with other contract costs as a component of the base tariff energy rate; and

     (c) The utility provider shall segregate imputed debt revenues from deferred energy revenues and record such revenues as general rate revenues in general rate cases.

     6.  As used in this section:

     (a) “Capacity payment” means the payment for the acquisition of a specified quantity of generating capacity over a specified period of time.

     (b) “Compensating component” means the imputed equity necessary to offset the effects of the imputed debt associated with a long-term portfolio energy credits contract, long-term renewable energy contract or energy efficiency contract.

     (Added to NAC by Pub. Utilities Comm’n by R167-05, eff. 2-23-2006; A by R064-10, 10-15-2010)

      NAC 704.88877  Short-term portfolio energy credits contracts and short-term renewable energy contracts: Evaluation by Commission. (NRS 703.025, 704.210, 704.7821, 704.7828)  The Commission will evaluate each short-term portfolio energy credits contract and short-term renewable energy contract during the hearings for the applicable annual deferred energy applications filed pursuant to NAC 704.116.

     (Added to NAC by Pub. Utilities Comm’n by R064-10, eff. 10-15-2010)

      NAC 704.8888  Renewable energy systems and energy efficiency measures: Establishment of rebate program for customers. (NRS 703.025, 704.210, 704.7828)  A utility provider may establish a rebate program to assist and provide an incentive to customers in the construction or installation of renewable energy systems or energy efficiency measures.

     (Added to NAC by Pub. Utilities Comm’n by R210-03, eff. 5-21-2004; A by R167-05, 2-23-2006)

      NAC 704.8889  Renewable energy systems: Metering and verification of electric output. (NRS 703.025, 704.210, 704.7828)  The electric output of any renewable energy system that generates electricity must be metered and capable of being verified if the maximum electric output of the renewable energy system is more than 10 kilowatts.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002)

      NAC 704.8891  Renewable energy systems: Use of fossil fuel. (NRS 703.025, 704.210, 704.7821, 704.7828)

     1.  If a renewable energy system uses any fossil fuel as an energy source to generate electricity and that fossil fuel constitutes 2 percent or less of the total input, as measured in British thermal units, used by the renewable energy system to generate electricity, the total electric output of the renewable energy system qualifies as electricity generated from renewable energy.

     2.  If a renewable energy system uses any fossil fuel as an energy source to generate electricity and that fossil fuel constitutes more than 2 percent of the total input, as measured in British thermal units, used by the renewable energy system to generate electricity, only the proportion of the total electric output of the renewable energy system that can be attributed to the use of renewable energy qualifies as electricity generated from renewable energy. The proportion of the total electric output that qualifies as electricity generated from renewable energy must be calculated based on:

     (a) The proportion that renewable energy constitutes of the total input, as measured in British thermal units, used by the renewable energy system to generate electricity; or

     (b) If practicable, separate metering.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002)

      NAC 704.8893  Renewable energy systems: Use of solar thermal systems. (NRS 703.025, 704.210, 704.7821, 704.7828)

     1.  A solar thermal system which reduces the consumption of electricity, natural gas or propane and which is used as a solar water heating system qualifies as a renewable energy system only if the solar water heating system is certified by the SRCC. To calculate the number of equivalent kilowatt-hours attributable to the solar water heating system, the provider must use:

     (a) For a solar water heating system that is not rated by the SRCC, a thermal energy meter;

     (b) For a solar water heating system which has an SRCC rating of 34 million British thermal units or more, a thermal energy meter; or

     (c) For a solar water heating system which has an SRCC rating of less than 34 million British thermal units, a thermal energy meter or the annual performance estimates of the SRCC for the solar water heating system.

     2.  A solar thermal system which reduces the consumption of electricity, natural gas or propane and which is used for a purpose other than as a solar water heating system qualifies as a renewable energy system only if the Commission determines that the provider can adequately measure or estimate the number of equivalent kilowatt-hours attributable to the solar thermal system.

     (Added to NAC by Pub. Utilities Comm’n by R144-01, eff. 5-31-2002; A by R210-03, 5-21-2004)

      NAC 704.8894  Temporary renewable energy development program: Authority of Commission; factors for consideration. (NRS 703.025, 704.210, 704.7827, 704.7828)  The Commission may order a utility provider to establish and participate in a temporary renewable energy development program to assist with the completion of new renewable energy projects associated with Commission-approved renewable energy or portfolio energy credits contracts. In determining whether to require a utility provider to establish and participate in a TRED program, the Commission will consider:

     1.  The creditworthiness of the utility provider as measured by its bond rating and other key financial indicators;

     2.  Whether the creditworthiness of the utility provider has impeded or is impeding the schedule for completing a new renewable energy project in accordance with a Commission-approved renewable energy contract;

     3.  Whether the use of a TRED trust will alleviate those impediments to completing a new renewable energy project in accordance with Commission-approved renewable energy or portfolio energy credits contracts; and

     4.  Whether the use of a TRED trust is necessary and reasonable to ensure that the utility provider complies with its renewable energy portfolio standard.

     (Added to NAC by Pub. Utilities Comm’n by R153-04, eff. 11-10-2004; A by R064-10, 10-15-2010)

      NAC 704.8895  Temporary renewable energy development program: Orders of Commission. (NRS 703.025, 704.210, 704.7828)  If, after considering the factors set forth in NAC 704.8894, the Commission determines that it is in the public interest to require a utility provider to establish and participate in a temporary renewable energy development program, the Commission will:

     1.  Order the establishment of a temporary renewable energy development trust in accordance with the provisions of NAC 704.8897; and

     2.  Order the establishment of a temporary renewable energy development charge in accordance with the provisions of NAC 704.8898.

     (Added to NAC by Pub. Utilities Comm’n by R153-04, eff. 11-10-2004)

      NAC 704.8896  Temporary renewable energy development program: Designation of new renewable energy projects eligible for participation. (NRS 703.025, 704.210, 704.7828)  The Commission will, upon request by a new renewable energy project either during proceedings establishing a TRED program or at the time that a long-term renewable energy contract or long-term portfolio energy credits contract is submitted for the approval of the Commission, designate which new renewable energy projects associated with Commission-approved long-term renewable energy contracts or long-term portfolio energy credits contracts are eligible to participate in the TRED program established, or to be established, by the utility provider. The Commission will consider the factors set forth in NAC 704.8894 to determine eligibility of such projects.

     (Added to NAC by Pub. Utilities Comm’n by R153-04, eff. 11-10-2004; A by R064-10, 10-15-2010)

      NAC 704.8897  Temporary renewable energy development program: Duties of utility provider regarding TRED trust; duties and rights of TRED trust. (NRS 703.025, 704.210, 704.7828)

     1.  Within 30 days after the issuance of an order by the Commission to establish a TRED program, the utility provider shall appoint a third-party professional trustee acceptable to the Commission and shall take all actions necessary to initiate a temporary renewable energy development trust. The TRED trust shall receive money collected by the utility provider from retail customers pursuant to a temporary renewable energy development charge and disburse that money to eligible new renewable energy projects. The TRED trust has the sole right to receive revenue generated by the TRED charge, and the right to receive such revenue constitutes a current property right granted to and vested in the TRED trust.

     2.  The utility provider shall file an executed copy of the trust agreement between the utility provider and the trustee of the TRED trust with the Commission for its approval.

     3.  The trust agreement must contain a provision establishing a minimum level of reserve for the TRED trust that is equal to three times the highest projected monthly payment to each eligible new renewable energy project for the period during which the TRED charge will be in effect.

     4.  The costs incurred by a utility provider to initiate and maintain a TRED trust, including, without limitation, the cost of reserves advanced by the utility provider to the TRED trust, the taxes assessed on the utility provider for amounts related to the TRED trust and the fees charged by the trustee, must be considered expenses associated with the acquisition of purchased power. The amount must be booked by the utility provider in a subaccount of FERC Account No. 182.3, if the cumulative month-end balance is a debit, or a subaccount of FERC Account No. 254, if the cumulative month-end balance is a credit. The amount may be recovered by the utility provider pursuant to the deferred energy accounting process set forth in NAC 704.023 to 704.195, inclusive. The utility provider shall use a subaccount of FERC Account No. 407.3 to offset the tax liability recorded in the subaccount of FERC Account No. 182.3 pursuant to this subsection or a subaccount of FERC Account No. 407.4 to offset the tax liability recorded in the subaccount of FERC Account No. 254 pursuant to this subsection. The utility shall record current taxes and any related deferred taxes in the appropriate subaccount of FERC Account Nos. 409, 410 and 411, as applicable.

     5.  Once the TRED charge is established by an order of the Commission issued pursuant to NAC 704.8898, the utility provider shall begin collecting the TRED charge from its retail customers. Beginning with the first full calendar week thereafter and continuing once each week following, the utility provider shall estimate and remit to the TRED trust the total amount collected pursuant to the TRED charge through the last calendar day of the previous collection period.

     6.  On the 20th calendar day of each month, the utility provider shall provide the trustee of the TRED trust with a statement showing the calculation of the amounts to be disbursed to each eligible new renewable energy project in accordance with its respective renewable energy or portfolio energy credits contracts based on the production of each eligible new renewable energy project during the previous calendar month. The TRED trust shall, within 7 calendar days after receiving the statement from the utility provider, remit payment to each eligible new renewable energy project in accordance with the statement.

     (Added to NAC by Pub. Utilities Comm’n by R153-04, eff. 11-10-2004; A by R051-09, 1-28-2010; R064-10, 10-15-2010; R043-12, 11-1-2012)

      NAC 704.8898  Temporary renewable energy development program: Powers and duties of utility provider regarding TRED charge; determination of TRED charge. (NRS 703.025, 704.210, 704.7828)

     1.  Once a TRED program is established by order of the Commission and the utility provider has established a TRED trust, the utility provider shall, concurrent with the filing of its next annual deferred energy application, seek Commission authorization to establish or continue, as revised, a temporary renewable energy development charge.

     2.  The TRED charge must be determined in accordance with the following formula:

 

TRED CHARGE = PC + RA

                                                                                           TE

Where:

     PC = the 12-month projected cost of renewable energy or portfolio energy credits to be delivered to the utility provider from new renewable energy projects eligible for the TRED program, determined as the sum from all eligible new renewable energy projects of the product of the 12-month projected production from each eligible new renewable energy project at the rates set forth in each of the Commission-approved renewable energy or portfolio energy credits contracts for each eligible new renewable energy project, plus the projected tax liability for the 12 months for the TRED trust.

     RA = the adjustment to increase or decrease the reserve, which must equal the sum of the reserves for each of the renewable energy or portfolio energy credits contracts approved for payment in accordance with NAC 704.8897.

     TE = the historical Nevada jurisdictional kilowatt-hour sales reflected in the electric utility’s concurrent deferred energy application.

 

     3.  The utility provider shall seek review of each element of the TRED charge at least once each year, concurrent with the filing by the utility provider of its annual deferred energy application.

     4.  The utility provider may seek interim review of one or more elements of the TRED charge where experienced production from eligible new renewable energy projects or experienced revenues collected pursuant to the TRED charge differ materially from projected production from new renewable energy projects associated with Commission-approved renewable energy contracts or with projected revenues collected pursuant to the TRED charge, causing either inadequate or excess reserves.

     5.  Once the TRED charge is established pursuant to this section, that amount must be collected by the utility provider on behalf of the TRED trust until that amount is revised pursuant to subsection 3 or 4 or is revised after the participation of a new renewable energy project is terminated pursuant to NAC 704.8899.

     (Added to NAC by Pub. Utilities Comm’n by R153-04, eff. 11-10-2004; A by R064-10, 10-15-2010)

      NAC 704.8899  Temporary renewable energy development program: Closure to new renewable energy projects; termination of participation by all new renewable energy projects. (NRS 703.025, 704.210, 704.7828)

     1.  A utility provider may apply to the Commission for authority to close a TRED program to new renewable energy projects once the utility provider has achieved an investment grade credit rating as determined by either Moody’s Investors Service, Inc., or Standard and Poor’s Rating Services and has maintained that credit rating for 24 consecutive months.

     2.  The Commission will grant an application to close a TRED program only after finding that the creditworthiness of the utility provider is sufficiently restored so that closure of the TRED program to new renewable energy projects is in the public interest.

     3.  An order issued by the Commission closing a TRED program to new renewable energy projects will not be effective as to any new renewable energy project that has previously been accepted into the TRED program and that receives remittance from the TRED trust with proceeds from the TRED charge until the earlier of:

     (a) The expiration or termination of the original Commission-approved renewable energy contract between the utility provider and the new renewable energy project, in which case the participation of the new renewable energy project in the TRED program will, without further process, be terminated; or

     (b) The original financing, including debt, equity, or both debt and equity, as applicable, entered into by the new renewable energy project upon completion of construction of the project has been fully satisfied pursuant to its original terms, in which case the new renewable energy project has an affirmative obligation to inform the Commission within 30 days after satisfaction of financing. The new renewable energy project must apply to the Commission for an order allowing the new renewable energy project to remain in the TRED program. If the new renewable energy project does not apply to remain in the TRED program, the participation of the new renewable energy project in the TRED program will be terminated without further process.

     4.  When the participation of all new renewable energy projects in the TRED program has been terminated, the TRED charge will be terminated and the TRED trust will be instructed to first remit any balance in the TRED trust to offset any reserves advanced by the utility provider to the TRED trust. The utility provider shall then apply any excess or shortfall from the TRED trust to the utility provider’s then current deferred energy balance. In the utility provider’s next deferred energy filing, the utility provider shall establish a new base tariff energy rate that reflects the utility provider’s estimated annual cost of purchasing power from new renewable energy projects formerly included in the TRED program.

     (Added to NAC by Pub. Utilities Comm’n by R153-04, eff. 11-10-2004)

System of Portfolio Energy Credits

      NAC 704.8901  Definitions. (NRS 703.025, 704.210, 704.7821, 704.7828)  As used in NAC 704.8901 to 704.8938, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.8903 to 704.8917, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004; A by R210-03, 5-21-2004; R167-05, 2-23-2006; R175-07, 4-17-2008; R068-18, 12-19-2018)

      NAC 704.8903  “Administrator” defined. (NRS 703.025, 704.210, 704.7821, 704.7828)  “Administrator” means the person appointed by the Commission to administer the system of portfolio energy credits established pursuant to NRS 704.7821 and 704.78213.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004; A by R167-05, 2-23-2006; R198-09, 1-13-2011)

      NAC 704.8905  “Designated representative” defined. (NRS 703.025, 704.210, 704.7821, 704.7828)  “Designated representative” means the person authorized by the owner of a portfolio energy system or efficiency measure to represent the system or measure before the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004; A by R167-05, 2-23-2006)

      NAC 704.8907  “Net metering system” defined. (NRS 703.025, 704.210, 704.7821, 704.7828)  “Net metering system” has the meaning ascribed to it in NRS 704.771.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004)

      NAC 704.8908  “Portfolio energy credit” defined. (NRS 703.025, 704.210, 704.7821, 704.7828)  “Portfolio energy credit” means a unit of credit which:

     1.  Equals 1 kilowatt-hour of electricity generated or saved by a portfolio energy system or efficiency measure.

     2.  For a solar facility that reduces the consumption of electricity by the generation of solar energy, equals the amount of consumption of electricity or any fossil fuel that is reduced at the facility by the operation of the solar facility.

     3.  For a net metering system, equals the amount of metered electricity generated by the system or, if the system does not use a meter to measure the kilowatt-hours of electricity generated by the system, equals the estimate of the electricity generated by the system in the manner prescribed in subsection 10 of NAC 704.8927.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004; A by R210-03, 5-21-2004; R210-03, 5-21-2004; R167-05, 2-23-2006, eff. 7-1-2010; R104-07, 1-30-2008, eff. 7-1-2010)

      NAC 704.8909  “Provider of electric service” defined. (NRS 703.025, 704.210, 704.7821, 704.7828)  “Provider of electric service” has the meaning ascribed to it in NRS 704.7808.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004)

      NAC 704.891  “Regulatory Operations Staff” defined. (NRS 703.025, 704.210, 704.7821, 704.7828)  “Regulatory Operations Staff” means the Regulatory Operations Staff of the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R068-18, eff. 12-19-2018)

      NAC 704.8911  “Renewable energy” defined. (NRS 703.025, 704.210, 704.7821, 704.7828)  “Renewable energy” has the meaning ascribed to it in NRS 704.7811.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004)

      NAC 704.8915  “Renewable energy system” defined. (NRS 703.025, 704.210, 704.7821, 704.7828)  “Renewable energy system” has the meaning ascribed to it in NRS 704.7815.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004)

      NAC 704.8917  “Utility provider” defined. (NRS 703.025, 704.210, 704.7821, 704.7828)  “Utility provider” means a provider of electric service that is a public utility.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004)

      NAC 704.8919  Use of credits to comply with portfolio standard. (NRS 703.025, 704.210, 704.7821, 704.7828)  Portfolio energy credits may be used to comply with a portfolio standard established by the Commission pursuant to NRS 704.7821 or 704.78213, as applicable.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004; A by R167-05, 2-23-2006; R198-09, 1-13-2011)

      NAC 704.8921  Application for participation in system. (NRS 703.025, 704.210, 704.7821, 704.7828)

     1.  A portfolio energy system or efficiency measure or an owner of portfolio energy credits who wishes to participate in the system of portfolio energy credits established pursuant to NRS 704.7821 or 704.78213, as applicable, must apply to, and be approved by, the Commission to participate in the system.

     2.  The application must include:

     (a) The legal name of the applicant and all other names under which the applicant is doing business in the United States.

     (b) The telephone number, mailing address and electronic mail address of the applicant.

     (c) A copy of each business license and certificate issued by this State or any local government of this State which authorizes the applicant to conduct business in this State.

     (d) The name, telephone number, address and electronic mail address of the designated representative, if the applicant is a renewable energy system.

     (e) A map indicating the location of the portfolio energy system or efficiency measure and an electrical one-line diagram indicating the system’s interconnection points with the local distribution or transmission system and the location of all generation units, if applicable.

     (f) The type of portfolio energy system or efficiency measure.

     (g) The rating of the electrical capacity of the renewable energy system.

     (h) The date the portfolio energy system was placed into operation or efficiency measure was installed.

     (i) If the applicant is a provider of electric service, the date the applicant first used electricity generated or acquired from the renewable energy system to satisfy its portfolio standard.

     (j) The estimated yearly generation or savings of electricity by the portfolio energy system or efficiency measure in kilowatt-hours.

     (k) If the applicant is a portfolio energy system, the estimated yearly generation of electricity that will be used by the portfolio energy system for its basic operations. If the portfolio energy system generates electricity from geothermal energy, the estimated yearly generation that will be used by the portfolio energy system for the extraction and transportation of geothermal brine or used to pump and compress geothermal brine.

     (l) The location and type of metering used by the portfolio energy system or efficiency measure, including either the identification of primary metering and secondary metering at multiple sites or a measurement and verification plan.

     (m) If fossil fuel is used as an energy source to generate electricity, the percentage that fossil fuel bears to the total input of the renewable energy system. If the percentage of fossil fuel is more than 2 percent of the total input, as measured in British thermal units, a statement that indicates whether separate metering is practical.

     (n) Proof that the applicant is a portfolio energy system or efficiency measure or an owner of portfolio energy credits.

     (o) A signature page signed by an authorized agent of the portfolio energy system or efficiency measure which states that the portfolio energy system or efficiency measure consents to the jurisdiction of the Commission for the purposes of participating in the system of portfolio energy credits.

     3.  If there is a change in any information contained in the application, the applicant shall notify the Commission and provide the revised information within 30 days after the change in the information occurs.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004; A by R167-05, 2-23-2006; R198-09, 1-13-2011; R053-15, 12-21-2015)

      NAC 704.8923  Quarterly reports by participants in system and utility providers. (NRS 703.025, 704.210, 704.7821, 704.7828)

     1.  Each portfolio energy system or efficiency measure or owner of portfolio energy credits who is authorized by the Commission to participate in the system of portfolio energy credits shall, not later than 30 days after the last day of the month in the calendar quarter, submit to the Commission or Administrator each calendar quarter information concerning the purchase or sale of portfolio energy credits. The amount of electricity reported in the information submitted to the Commission or Administrator must be generated solely from, or purchased and attributable to, a portfolio energy system or efficiency measure which is authorized by the Commission to participate in the system of portfolio energy credits pursuant to NAC 704.8921.

     2.  Each utility provider shall, not later than 30 days after the end of the calendar quarter, submit to the Administrator a quarterly report which includes the amount of renewable energy and the number of portfolio energy credits purchased from each renewable energy system. The report must be submitted on a form prescribed by the Administrator.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004; A by R167-05, 2-23-2006; R198-09, 1-13-2011)

      NAC 704.8925  Awarding of credits generated pursuant to certain contracts made before December 8, 2003. (NRS 703.025, 704.210, 704.7821, 704.7828)  If a renewable energy system has entered into a contract with a provider of electric service before December 8, 2003, the portfolio energy credits generated by the renewable energy system pursuant to the contract must be awarded to the provider, or as otherwise determined in a proceeding conducted pursuant to NAC 704B.300 to 704B.410, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004; A by R018-04, 11-17-2005; R167-05, 2-23-2006)

      NAC 704.8927  Measurement of applicable energy; certification and allocation of credits. (NRS 701B.200, 703.025, 704.210, 704.7821, 704.7828)

     1.  Except as otherwise provided in NAC 704.8893, electricity generated by a renewable energy system which is authorized to participate in the system of portfolio energy credits must be metered and the renewable energy system shall submit meter readings quarterly to the Commission.

     2.  Except as otherwise provided in subsections 3 to 13, inclusive, the Administrator shall certify portfolio energy credits to a portfolio energy system or efficiency measure for:

     (a) The net output of electricity in kilowatt-hours delivered to the transmission system or the distribution system and sold to a provider of electric service. The net output must be provided to the Administrator by the entity that owns, operates or controls the meters used to monitor the net output of electricity of the renewable energy system.

     (b) The amount of electricity used by the portfolio energy system for its basic operations as set forth in NRS 704.78215, if the system:

          (1) Is placed into operation on or before December 31, 2015; or

          (2) Is placed into operation on or after January 1, 2016, and the provider entered into a contract for the purchase of electricity generated by the portfolio energy system on or before December 31, 2012.

     (c) The amount of electricity used by a portfolio energy system that generates electricity from geothermal energy for the extraction and transportation of geothermal brine or used to pump and compress geothermal brine.

Ê Unless otherwise provided for in a contract for renewable energy, the portfolio energy credits certified by the Administrator pursuant to paragraphs (b) and (c) must be awarded to the owner of the renewable energy system.

     3.  The Administrator shall certify portfolio energy credits for the line loss factor of:

     (a) A customer-maintained distributed renewable energy system placed into operation on or before December 31, 2015, by multiplying the metered number of kilowatt-hours generated and used by the customer who is served by the customer-maintained distributed renewable energy system by a factor of 1.05; and

     (b) An energy efficiency measure by multiplying the number of kilowatt-hours saved by the energy efficiency measure by a factor of 1.05.

     4.  For a solar energy system, as defined in NRS 701B.150, placed into operation on or before December 31, 2015, the Administrator shall certify portfolio energy credits for participants in the Solar Energy Systems Incentive Program created in NRS 701B.240 by multiplying the actual kilowatt-hours produced by the solar renewable energy system by a factor of 2.4.

     5.  For a solar photovoltaic system, as described in NRS 704.7822, placed into operation on or before December 31, 2015, the Administrator shall certify portfolio energy credits by multiplying the actual kilowatt-hours produced by the solar renewable energy system by a factor of 2.4.

     6.  The Administrator shall certify portfolio energy credits for a system that uses a reverse polymerization process described in NRS 704.7823 by multiplying the actual kilowatt-hours produced by the renewable energy system by a factor of 0.7.

     7.  The Administrator shall certify portfolio energy credits for electricity saved by a utility provider or provider of new electric resources during its peak load periods, as defined in the applicable approved tariffs, from energy efficiency measures described in NRS 704.7802, by multiplying each kilowatt-hour of electricity saved by the utility provider during its peak load period from energy efficiency measures by a factor of 2.0.

     8.  A solar thermal energy system may use a thermal energy meter to measure the amount of energy generated by the system. The system will be credited with 1 kilowatt-hour of electricity generated for each 3,412 British thermal units of heat generated by the solar thermal energy system.

     9.  Except as otherwise provided in this subsection, the energy, measured in British thermal units, generated by a geothermal energy system providing heated water to one or more customers must be calculated as (F x T) x 500, less the system losses as calculated by a professional engineer and accepted by the Administrator, where:

     (a) “F” equals the flow rate, measured in gallons per minute; and

     (b) “T” equals the change in temperature across a heat exchanger or system, measured by the difference in temperature of the incoming fluid in degrees Fahrenheit and the temperature of the outgoing fluid in degrees Fahrenheit after it has passed through the heat exchanger or system.

Ê For heat exchangers used by end-use customers, it is assumed that no system losses occur, and no calculation of system losses by a professional engineer is required.

     10.  A net metering system will be credited annually with portfolio energy credits based upon the amount of metered electricity generated by the system or, if metering is not used, upon an estimate of the electricity generated by the net metering system by using the method of calculation designated by the Regulatory Operations Staff of the Commission for a solar energy system which does not use a meter to measure the generation of electricity of the system.

     11.  The portfolio energy credits generated by a net metering system must be assigned to the owner of the net metering system, unless the provisions of paragraph (a) of subsection 3 of NRS 704.775 apply, or another allocation of the portfolio energy credits is provided for in a written agreement between the utility provider and the owner of the net metering system.

     12.  If the Administrator is required by subsections 4 to 7, inclusive, to apply a multiplier in certifying portfolio energy credits for a portfolio energy system or efficiency measure and he or she determines that more than one multiplier may be applicable to the portfolio energy system or efficiency measure, the Administrator shall only apply the largest applicable multiplier in certifying the portfolio energy credits.

     13.  The Administrator shall certify portfolio energy credits for electricity saved from energy efficiency measures only for the period during which a provider may use energy efficiency measures to comply with its portfolio standard in accordance with NRS 704.7821 or 704.78213.

     14.  For the purposes of:

     (a) Paragraph (b) of subsection 2, the date on which a portfolio energy system is placed into operation shall be deemed to be the date on which the system is placed into commercial operation and the system’s capacity and estimated yearly generation must be measured by the system’s capacity and estimated yearly generation on that date.

     (b) Subsection 3, the date on which a customer-maintained distributed renewable energy system is placed into operation shall be deemed to be the date on which the system is installed on the premises of the customer and energized and the system’s capacity and estimated yearly generation must be measured by the system’s capacity and estimated yearly generation on that date.

     (c) Subsection 4, the date on which a solar energy system is placed into operation shall be deemed to be the date on which the system is installed on the premises of the participant in the Solar Energy Systems Incentive Program and energized and the system’s capacity and estimated yearly generation must be measured by the system’s capacity and estimated yearly generation on that date.

     (d) Subsection 5, the date on which a solar photovoltaic system is placed into operation shall be deemed to be the date on which the system is installed on the premises of a retail customer and energized and the system’s capacity and estimated yearly generation must be measured by the system’s capacity and estimated yearly generation on that date.

     15.  As used in this section:

     (a) “Customer-maintained distributed renewable energy system” means a facility or energy system which:

          (1) Is used and maintained by an end-use customer;

          (2) Uses renewable energy to generate electricity;

          (3) Does not use the utility’s system to transmit or distribute electricity; and

          (4) Uses a meter and other equipment to:

               (I) Measure the electricity generated by the energy system; and

               (II) Reduce part, but not more than all, of the electrical load of the customer.

     (b) “Geothermal energy system” means an energy system that provides geothermally heated water to one or more customers and reduces the consumption of electricity or any fossil fuel.

     (c) “Reverse polymerization process” has the meaning ascribed to it in NRS 704.7823.

     (d) “Solar thermal energy system” means a renewable energy system that uses solar energy for the purpose of producing heat to reduce directly the consumption of electricity, natural gas or propane.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004; A by R210-03, 5-21-2004; R167-05, 2-23-2006; R104-07, 1-30-2008; R175-07, 4-17-2008; R198-09, 1-13-2011; R053-15, 12-21-2015)

      NAC 704.8929  Identification of credits; annual statement of credits. (NRS 703.025, 704.210, 704.7821, 704.7828)

     1.  Each portfolio energy credit certified by the Administrator pursuant to NAC 704.8927 must be identified by a serial number determined by the Administrator as follows:

     (a) The first four digits must represent the year the portfolio energy credit is issued.

     (b) The next two digits must represent the month the portfolio energy credit is issued.

     (c) Those digits must be followed by two characters which represent the type of renewable energy.

     (d) Those characters must be followed by six characters which represent a unique number assigned to the portfolio energy system or efficiency measure by the Commission or Administrator.

     (e) Those characters must be followed by the appropriate number of digits which represent the amount expressed in thousands of kilowatt-hours of electricity generated or saved by the portfolio energy system or efficiency measure.

     2.  Each annual statement of portfolio energy credits must list by month:

     (a) For each renewable energy system, the metered kilowatt-hours of electricity generated by the renewable energy system or, if the renewable energy system or efficiency measure does not use a meter to measure the kilowatt-hours of electricity generated, the estimated amount of electricity generated and the type of portfolio energy credit identified in NAC 704.8927.

     (b) For each energy efficiency measure, the estimated amount of electricity saved and the type of portfolio energy credit identified in NAC 704.8927.

     3.  The unique number assigned to a portfolio energy system or efficiency measure by the Administrator or Commission pursuant to paragraph (d) of subsection 1 is valid for the life of the portfolio energy system or efficiency measure and may not be changed regardless of any change in the name or ownership of the system.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004; A by R167-05, 2-23-2006)

      NAC 704.8931  Maintenance of certain information on website. (NRS 703.025, 704.210, 704.7821, 704.7828)  The Administrator shall establish and maintain a website on the Internet to provide information concerning transactions for the registration, certification, trading and retiring of portfolio energy credits.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004; A by R167-05, 2-23-2006; R198-09, 1-13-2011)

      NAC 704.8932  Sale of credits by utility provider: Application; notice; approval; exemption. (NRS 703.025, 704.210, 704.7821, 704.7828)

     1.  A utility provider may submit an application to the Commission for approval of a sale of portfolio energy credits if:

     (a) The utility provider possesses more than 10 percent of the amount of portfolio energy credits necessary to comply with its portfolio energy standard for the subsequent calendar year; and

     (b) The amount of portfolio energy credits to be sold constitutes less than 50 percent of the portfolio energy credits in excess of the amount necessary to comply with the portfolio standard for the subsequent calendar year.

     2.  If a utility provider submits an application pursuant to this section, the Commission will provide notice of the application to the Bureau of Consumer Protection and any party that participated as an intervener in the proceedings of the utility provider’s most recent resource plan filed pursuant to subsection 1 of NRS 704.741. An interested party may file with the Commission any written comments regarding the application within 10 business days after receipt of such notice.

     3.  The Commission will approve or deny an application submitted pursuant to this section within 60 days after receipt of the application.

     4.  Approval by the Commission of an application to sell portfolio energy credits submitted pursuant to this section constitutes a finding that the decision to sell and the price received for the sale are prudent.

     5.  A utility provider may sell portfolio energy credits without Commission approval if, at the time of the sale, the utility provider has more than 25 percent of the amount of portfolio energy credits necessary to comply with the portfolio standard for the subsequent calendar year. However, the Commission will determine the prudence of the price received for the sale and any costs incurred in the appropriate deferred energy proceeding.

     (Added to NAC by Pub. Utilities Comm’n by R053-15, eff. 12-21-2015)

      NAC 704.8933  Transfer of credits; monthly statement of account. (NRS 703.025, 704.210, 704.7821, 704.7828)

     1.  Upon receipt of a joint request for the transfer of a portfolio energy credit from the owner of a portfolio energy credit and the proposed purchaser of the portfolio energy credit, the Administrator shall transfer the portfolio energy credit from the account of the owner to the account specified in the request, unless the credit cannot be transferred. The Administrator shall send a notice of the transfer of the portfolio energy credit to the electronic mail addresses of the owner and purchaser within 5 business days after the portfolio energy credit is transferred.

     2.  If a portfolio energy credit cannot be transferred, the Administrator shall, within 15 days after receiving the request for the transfer of a portfolio energy credit, notify the owner of the credit and the proposed purchaser, in writing, of the reason why the credit cannot be transferred.

     3.  The Administrator shall, each month, send by regular mail or electronic mail to each participant in the system of portfolio energy credits a statement of his or her account.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004; A by R167-05, 2-23-2006; R107-07, 12-4-2007)

      NAC 704.8935  Retirement of credits. (NRS 703.025, 704.210, 704.7821, 704.7828)  If the owner of portfolio energy credits wishes to retire any such credits from being traded or otherwise transferred before their expiration, the owner’s designated representative must submit a request to retire those credits to the Administrator. The Administrator shall maintain records to identify:

     1.  The portfolio energy credits that are retired; and

     2.  The basis upon which the portfolio energy credits are retired.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004; A by R167-05, 2-23-2006)

      NAC 704.8937  Responsibilities of utility provider; adoption by reference and revision of certain federal regulations. (NRS 703.025, 704.210, 704.7821, 704.7828)

     1.  A utility provider shall:

     (a) Account for portfolio energy credits by using General Instruction 21 as set forth in the Uniform System of Accounts of the Federal Energy Regulatory Commission in 18 C.F.R. Part 101, which is hereby adopted by reference. The volume of the Code of Federal Regulations which contains Part 101 may be purchased by mail from the Superintendent of Documents, United States Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://bookstore.gpo.gov, for the price of $68. The volume may be accessed free of charge on the Internet at http://www.gpoaccess.gov/cfr/index.html.

     (b) Substitute FERC Account No. 555, which is adopted by reference pursuant to NAC 704.120, for FERC Account Nos. 411.8, 411.9 and 509.

     (c) Maintain subaccounts for portfolio energy credits that are separate from all other items in FERC Account No. 555.

     (d) Apply for the inclusion of any losses or gains from the purchase or sale of portfolio energy credits in each deferred energy application filed pursuant to NAC 704.023 to 704.195, inclusive.

     2.  If the publication adopted by reference pursuant to subsection 1 is revised, the Commission will review the revision to determine its suitability for this State. If the Commission determines that the revision is not suitable for this State, the Commission will hold a public hearing to review its determination and give notice of that hearing within 6 months after the date of the publication of the revision. If, after the hearing, the Commission does not revise its determination, the Commission will give notice that the revision is not suitable for this State within 30 days after the hearing. If the Commission does not give such notice, the revision becomes part of the publication adopted by reference pursuant to subsection 1.

     3.  As used in this section, “FERC account” means an account contained in the Uniform System of Accounts established by the Federal Energy Regulatory Commission.

     (Added to NAC by Pub. Utilities Comm’n by R115-03, eff. 2-18-2004; A by R167-05, 2-23-2006; R051-09, 1-28-2010)

      NAC 704.8938  Participation in alternate system by certain categories of portfolio energy systems: Authority of Regulatory Operations Staff to file petition; order by Commission; compliance with requirements set forth in order. (NRS 703.025, 704.210, 704.7821, 704.7828)

     1.  The Regulatory Operations Staff may file a petition pursuant to NAC 703.540 requesting an order requiring one or more categories of portfolio energy systems to participate in an alternate system of portfolio energy credits.

     2.  A petition filed pursuant to subsection 1 must include:

     (a) A description of each category of portfolio energy systems that the Regulatory Operations Staff requests to have participate in an alternate system of portfolio energy credits;

     (b) A description of the alternate system of portfolio energy credits that the Regulatory Operations Staff proposes for each category of portfolio energy systems;

     (c) A statement of why each category of portfolio energy systems should be required to participate in an alternate system of portfolio energy credits;

     (d) A statement setting forth both the adverse and beneficial effects of transitioning the applicable category of portfolio energy systems to an alternate system of portfolio energy credits; and

     (e) Any other information that the Regulatory Operations Staff determines to be of assistance to the Commission in considering the petition.

     3.  The Commission will issue an order requiring a category of portfolio energy systems to participate in an alternate system of portfolio energy credits if the Commission finds that:

     (a) The alternate system of portfolio energy credits is capable of tracking the portfolio energy credits of the portfolio energy systems in that category in a manner that is consistent with the provisions of NRS 704.7801 to 704.7828, inclusive; and

     (b) The benefits of requiring participation in the alternate system of portfolio energy credits are greater than any adverse effects of participation in such a system.

     4.  Notwithstanding any other provision of NAC 704.8901 to 704.8937, inclusive, if, pursuant to subsection 3, the Commission issues an order requiring a category of portfolio energy systems to participate in an alternate system of portfolio energy credits, a portfolio energy system in that category is not required to comply with any requirement related to the system of portfolio energy credits set forth in NAC 704.8901 to 704.8937, inclusive, and must comply with the requirements of the alternate system of portfolio energy credits set forth in the order of the Commission.

     5.  As used in this section, “alternate system of portfolio energy credits” means a system of portfolio energy credits other than the system of portfolio energy credits set forth in NAC 704.8901 to 704.8937, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R068-18, eff. 12-19-2018)

Capacity Allocation for New Commercial and Industrial Businesses

      NAC 704.895  Definitions. (NRS 703.025, 704.210, 704.7881)  As used in NAC 704.895 to 704.8958, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.8951 to 704.8954, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R072-13, eff. 12-23-2013)

      NAC 704.8951  “Base tariff energy rate” defined. (NRS 703.025, 704.210, 704.7881)  “Base tariff energy rate” has the meaning ascribed to it in NAC 704.032.

     (Added to NAC by Pub. Utilities Comm’n by R072-13, eff. 12-23-2013)

      NAC 704.8952  “Electric utility” defined. (NRS 703.025, 704.210, 704.7881)  “Electric utility” has the meaning ascribed to it in NRS 704.187.

     (Added to NAC by Pub. Utilities Comm’n by R072-13, eff. 12-23-2013)

      NAC 704.8953  “Participant” defined. (NRS 703.025, 704.210, 704.7881)  “Participant” has the meaning ascribed to it in NRS 704.7873.

     (Added to NAC by Pub. Utilities Comm’n by R072-13, eff. 12-23-2013)

      NAC 704.8954  “Program” defined. (NRS 703.025, 704.210, 704.7881)  “Program” means the Economic Development Electric Rate Rider Program established pursuant to NRS 704.7875.

     (Added to NAC by Pub. Utilities Comm’n by R072-13, eff. 12-23-2013)

      NAC 704.8955  Discounted electric rates to be charged. (NRS 703.025, 704.210, 704.7881)  The discounted electric rates that an electric utility shall charge pursuant to the Program must be:

     1.  In the first and second year of a contract entered into pursuant to NRS 704.7877, a reduction of 30 percent in the base tariff energy rate.

     2.  In the third, fourth, fifth and sixth year of a contract entered into pursuant to NRS 704.7877, a reduction of 20 percent in the base tariff energy rate.

     3.  In the seventh and eighth year of a contract entered into pursuant to NRS 704.7877, a reduction of 10 percent in the base tariff energy rate.

     (Added to NAC by Pub. Utilities Comm’n by R072-13, eff. 12-23-2013; A by R005-15, 6-26-2015)

      NAC 704.8956  Allocation of capacity to new customers. (NRS 703.025, 704.210, 704.7881)  Each electric utility shall set aside 25 megawatts of capacity for allocation to new customers pursuant to the Program. If an electric utility enters into one or more contracts with an applicant for the Program for the full allocation of 25 megawatts of capacity set aside by the electric utility pursuant to this section, any unused capacity allocated to another electric utility may be reallocated among the electric utilities by the Commission to maximize participation in the Program.

     (Added to NAC by Pub. Utilities Comm’n by R072-13, eff. 12-23-2013)

      NAC 704.8957  Duties of electric utility that provides discounted electric rates. (NRS 703.025, 704.210, 704.7881)

     1.  An electric utility that provides discounted electric rates pursuant to the Program shall:

     (a) Establish a tariff pursuant to which a participant will be charged the discounted electric rates set forth in NAC 704.8955. A tariff established pursuant to this paragraph must include a rate component which, when combined with the base tariff energy rate, will result in the required reduction in the base tariff energy rate. The inclusion of a rate component pursuant to this paragraph is not required to be listed separately in the utility’s tariff.

     (b) Recover the amount of any discount provided to a participant in the Program by recording the amount in the deferred energy balance.

     (c) Distribute as payment to each of the utility’s customers any amount recovered by order of the Commission pursuant to NRS 704.7879, and record the amount in the deferred energy balance.

     2.  As used in this section, “deferred energy balance” has the meaning ascribed to it in NAC 704.045.

     (Added to NAC by Pub. Utilities Comm’n by R072-13, eff. 12-23-2013)

      NAC 704.8958  Requirements for annual report to be submitted by electric utility. (NRS 703.025, 704.210, 704.7881)  Each electric utility shall, on or before March 1 of each year commencing March 1, 2015, file with the Commission a written report concerning the Program. The report must include information concerning:

     1.  The electrical load in the immediately preceding calendar year of each participant with whom the utility has entered into a contract pursuant to the Program;

     2.  The annual load factor in the immediately preceding calendar year of each participant with whom the utility has entered into a contract pursuant to the Program;

     3.  The date on which each participant with whom the utility has entered into a contract pursuant to the Program began receiving electric service from the utility; and

     4.  Any other relevant information that the Commission deems necessary.

     (Added to NAC by Pub. Utilities Comm’n by R072-13, eff. 12-23-2013)

Resource Planning

      NAC 704.9005  Definitions: Terms used in regulation or resource plan. (NRS 703.025, 704.210, 704.741)  As used in NAC 704.9005 to 704.9525, inclusive, and when used in a utility’s resource plan, unless the context otherwise requires, the words and terms defined in NAC 704.9006 to 704.9173, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 5-14-86; 2-18-88; 7-31-91; A by Pub. Utilities Comm’n by R004-04, 5-25-2004; R167-05, 2-23-2006; R029-19, 10-30-2019)

      NAC 704.9006  “Action plan” defined. (NRS 703.025, 704.210, 704.741)  “Action plan” means a detailed specification of the actions a utility intends to undertake to meet its demand and energy requirements during the 3 years immediately following the year in which its resource plan is filed.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9007  “Affiliate” defined. (NRS 703.025, 704.210, 704.741)  “Affiliate” means any entity that controls, is controlled by or is under common control with any other entity.

     (Added to NAC by Pub. Service Comm’n, eff. 7-31-91)

      NAC 704.9015  “Analysis of sensitivity” defined. (NRS 703.025, 704.210, 704.741)  “Analysis of sensitivity,” sometimes known as “sensitivity analysis” means a set of methods or procedures which results in a determination or estimation of the sensitivity of a result to a change in given data or a given assumption.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88)

      NAC 704.9023  “Capacity” defined. (NRS 703.025, 704.210, 704.741)  “Capacity” means the rated continuous load-carrying ability, expressed in watts or volt-amperes, of generation, transmission or electrical equipment.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9024  “Coal-fired electric generating capacity” defined. (NRS 704.7322, 704.741)  “Coal-fired electric generating capacity” means the planning capacity of a coal-fired electric generating plant or coal-fired electric generating unit as depicted in the loads and resources table that was included in the most recent resource plan filed by an electric utility that primarily serves densely populated counties and accepted by the Commission pursuant to NRS 704.751 before June 11, 2013.

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014)

      NAC 704.90243  “Coal-fired electric generating plant” defined. (NRS 704.7322, 704.741)  “Coal-fired electric generating plant” has the meaning ascribed to it in NRS 704.7312.

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014)

      NAC 704.90247  “Coal-fired electric generating unit” defined. (NRS 704.7322, 704.741)  “Coal-fired electric generating unit” means an electric generating unit which burns coal to produce electricity and which is owned, in whole or in part, by an electric utility that primarily serves densely populated counties.

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014)

      NAC 704.9025  “Cogeneration” defined. (NRS 703.025, 704.210, 704.741)  “Cogeneration” means the simultaneous generation of electric and thermal energy by a facility owned by a utility’s customer, where both forms of energy are put to beneficial use, whether or not the energy is used exclusively by the customer or is supplied to the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84)

      NAC 704.904  “Conservation” defined. (NRS 703.025, 704.210, 704.741)  “Conservation” means improvements in efficiency in the production, distribution or use of energy that result in reductions in the consumption of electric power.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.9055  “Demand” defined. (NRS 703.025, 704.210, 704.741)  “Demand” means the level at which electric energy is required by a system, a part of a system or a load, expressed in watts, at a given instant or averaged over any designated period.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.9057  “Demand side plan” defined. (NRS 703.025, 704.210, 704.741)  “Demand side plan” means the programs proposed by a utility to promote energy efficiency and conservation.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004; A by R042-10, 7-22-2010)

      NAC 704.9058  “Distributed generation” defined. (NRS 703.025, 704.210, 704.741)  “Distributed generation” means generation:

     1.  That is located on the property of a customer of a utility;

     2.  That is not owned by the utility; and

     3.  The output from which is ordinarily consumed locally without flowing on the transmission system of the utility.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.90583  “Distributed resources” defined. (NRS 703.025, 704.210, 704.741)  “Distributed resources” means distributed generation systems, energy efficiency, energy storage, electric vehicles and demand-response technologies, which may be located on the utility side or the customer side of the meter of a utility customer.

     (Added to NAC by Pub. Utilities Comm’n by R029-19, eff. 10-30-2019)

      NAC 704.90585  “Distributed resources plan” defined. (NRS 703.025, 704.210, 704.741)  “Distributed resources plan” means the plan the utility is required to include in its resource plan pursuant to subsection 5 of NRS 704.741.

     (Added to NAC by Pub. Utilities Comm’n by R029-19, eff. 10-30-2019)

      NAC 704.9059  “Electric utility that primarily serves densely populated counties” defined. (NRS 704.7322, 704.741)  “Electric utility that primarily serves densely populated counties” has the meaning ascribed to it in paragraph (c) of subsection 17 of NRS 704.110.

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014)

      NAC 704.90593  “Eliminate” and “elimination” defined. (NRS 704.7322, 704.741)  “Eliminate” or “elimination” means the divestment by an electric utility that primarily serves densely populated counties of an interest in a coal-fired electric generating plant or coal-fired electric generating unit such that:

     1.  The utility no longer relies upon the plant or unit to provide service to its customers; and

     2.  The cost of the plant or unit, other than the costs described in paragraph (f) of subsection 2 of NRS 704.7316 and approved by the Commission to be included in the utility’s rates in an application submitted to the Commission after the elimination of the plant or unit, is no longer included in the utility’s rates.

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014)

      NAC 704.90595  “Emissions reduction and capacity replacement action plan” defined. (NRS 704.7322, 704.741)  “Emissions reduction and capacity replacement action plan” means:

     1.  With respect to the initial emissions reduction and capacity replacement action plan filed on or before May 1, 2014, by an electric utility that primarily serves densely populated counties as part of an amendment to the utility’s resource plan, a detailed specification of the actions the utility intends to undertake to meet the requirements of its emissions reduction and capacity replacement plan during the period before the filing of its next resource plan.

     2.  With respect to any subsequent emissions reduction and capacity replacement action plan filed by an electric utility that primarily serves densely populated counties with the utility’s resource plan, a detailed specification of the actions the utility intends to undertake to meet the requirements of its emissions reduction and capacity replacement plan during the 3 years immediately following the year in which the utility’s resource plan is filed.

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014)

      NAC 704.90597  “Emissions reduction and capacity replacement plan” defined. (NRS 704.7322, 704.741)  “Emissions reduction and capacity replacement plan” has the meaning ascribed to it in NRS 704.7314.

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014)

      NAC 704.906  “End-use” defined. (NRS 703.025, 704.210, 704.741)  “End-use” means energy consumption by a specific type of appliance or equipment.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.90605  “Energy efficiency” defined. (NRS 703.025, 704.210, 704.741)  “Energy efficiency” means a modification of energy use patterns which results in the greater productive use of energy or a reduction in the consumption of electric power.

     (Added to NAC by Pub. Utilities Comm’n by R042-10, eff. 7-22-2010)

      NAC 704.9061  “Energy supply plan” defined. (NRS 703.025, 704.210, 704.741)  “Energy supply plan” means a plan which:

     1.  Establishes the parameters of an energy supply portfolio for a utility for the 3-year period covered by its action plan and which balances the objectives of:

     (a) Minimizing the cost of supply;

     (b) Minimizing retail price volatility; and

     (c) Maximizing the reliability of energy supply over the term of the energy supply plan; and

     2.  Is composed of a purchased power procurement plan, fuel procurement plan and risk management strategy.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9063  “Environmental costs and economic benefits to the State” defined. (NRS 703.025, 704.210, 704.741)

     1.  “Environmental costs and economic benefits to the State” means the costs and benefits that inure to the State from electric energy produced for consumption within the State whether or not the generation source is located in Nevada.

     2.  To calculate environmental costs of generation from sources outside the State, the cost should be calculated in the same manner as if the electric energy were generated in Nevada.

     (Added to NAC by Pub. Service Comm’n, eff. 3-27-92; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.9067  “Financial commitment” defined. (NRS 703.025, 704.210, 704.741)

     1.  “Financial commitment” means a financial obligation of the developer of a proposed renewable energy project within a renewable energy zone that evidences and supports the developer’s commitment and fitness to complete the construction of the renewable energy project, including, without limitation:

     (a) An executed contract for the sale of energy from the project;

     (b) An executed contract for the construction of the project;

     (c) A land use application and permit submitted to and approved by the United States Bureau of Land Management or other appropriate government agency;

     (d) The possession of ownership or leasehold rights in land or mineral rights necessary for the construction and operation of the project;

     (e) A generator interconnection request;

     (f) An executed transmission service agreement;

     (g) An executed interconnection agreement; and

     (h) A related cash deposit or letter of credit that secures:

          (1) Contracts for the sale of energy from the project;

          (2) Contracts for the construction of the project; or

          (3) The construction of any required transmission facilities or transmission service to deliver the project’s output to its purchaser.

     2.  If any portion of the output of the developer’s proposed renewable energy project is expected to be sold to a purchaser other than the utility proposing construction of the transmission facilities, the term also means a financial obligation of the developer that evidences and supports the developer’s commitment and fitness to pay for the cost of the transmission required to deliver that portion of the project’s output to the purchaser other than the utility proposing the construction. The developer’s commitment and fitness to pay for the cost of the transmission may be demonstrated by including, without limitation, a commitment from another entity to pay for such costs.

     (Added to NAC by Pub. Utilities Comm’n by R088-10, eff. 12-16-2010)

      NAC 704.9069  “Financial plan” defined. (NRS 703.025, 704.210, 704.741)  “Financial plan” means a plan that demonstrates the financial impact of the preferred plan of a utility on the utility and its customers.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9075  “Forecast of base growth” defined. (NRS 703.025, 704.210, 704.741)  “Forecast of base growth” means a forecast of the peak demand and energy consumption for a utility’s bundled retail and wholesale customers that the utility has an obligation to serve, based on the most likely set of future conditions or forces which would have an effect on such peak demand and energy consumption.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.9085  “Forecast of high growth” defined. (NRS 703.025, 704.210, 704.741)  “Forecast of high growth” means a forecast of the peak demand and energy consumption for a utility’s bundled retail and wholesale customers that the utility has an obligation to serve, based on the highest rate of growth consistent with the highest rates of economic and population growth that can be reasonably expected to occur within the service territory of the utility during the forecast period.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.9095  “Forecast of low growth” defined. (NRS 703.025, 704.210, 704.741)  “Forecast of low growth” means a forecast of the peak demand and energy consumption for a utility’s bundled retail and wholesale customers that the utility has an obligation to serve, based on the lowest rate of growth consistent with the lowest rates of economic and population growth that can be reasonably expected to occur within the service territory of the utility during the forecast period.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.9099  “Fuel procurement plan” defined. (NRS 703.025, 704.210, 704.741)  “Fuel procurement plan” means a plan which establishes the parameters of a fuel supply portfolio for a utility and which balances the objectives of:

     1.  Minimizing the cost of fuel;

     2.  Minimizing retail price volatility; and

     3.  Maximizing the reliability of fuel supply over the term of the energy supply plan.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9101  “Grid needs assessment” defined. (NRS 703.025, 704.210, 704.741)  “Grid needs assessment” means an assessment of the constraints on a utility’s electric grid and proposed solutions to those constraints.

     (Added to NAC by Pub. Utilities Comm’n by R029-19, eff. 10-30-2019)

      NAC 704.9102  “Hosting capacity analysis” defined. (NRS 703.025, 704.210, 704.741)  “Hosting capacity analysis” means the analysis to determine the amount of distributed resources that can be accommodated on a particular feeder section of the distribution system at a given time under existing and forecasted grid conditions and operations without adversely impacting safety, power quality, reliability or other operational criteria.

     (Added to NAC by Pub. Utilities Comm’n by R029-19, eff. 10-30-2019)

      NAC 704.9103  “Independent power producer” defined. (NRS 703.025, 704.210, 704.741)  “Independent power producer” means a generating facility that is connected to the system but is not owned by a public utility. The term includes any qualifying cogeneration or small power production facility subject to 18 C.F.R. Part 292, and any exempt wholesale generator as that term is defined in 15 U.S.C. § 79z-5a, that is connected to the system but is not owned by a public utility. The term does not include distributed generation.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9107  “Intermittent energy resources” defined. (NRS 703.025, 704.210, 704.741)  “Intermittent energy resources” means those resources using renewable energy whose electrical output cannot be accurately forecasted for day-ahead scheduling.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9109  “Locational net benefit analysis” defined. (NRS 703.025, 704.210, 704.741)  “Locational net benefit analysis” means a cost-benefit analysis of distributed resources that incorporates location-specific net benefits to the electric grid.

     (Added to NAC by Pub. Utilities Comm’n by R029-19, eff. 10-30-2019)

      NAC 704.9111  “Long-term avoided cost” defined. (NRS 703.025, 704.210, 704.741)  “Long-term avoided cost” means the incremental costs of electric energy or capacity, or both, to a utility which, but for the purchase of electric energy or capacity from one or more qualifying facilities, the utility would generate itself or purchase from another source over a period exceeding 1 year.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9113  “Long-term purchased power obligation” defined. (NRS 703.025, 704.210, 704.741)  “Long-term purchased power obligation” means:

     1.  A long-term portfolio energy credits contract, long-term renewable energy contract or energy efficiency contract that must be submitted to the Commission for approval pursuant to NAC 704.8885; and

     2.  Any other contract, including a multiple seasonal contract, with a term of more than 3 years.

     (Added to NAC by Pub. Service Comm’n, eff. 7-31-91; A by Pub. Utilities Comm’n by R144-01, 5-31-2002; R004-04, 5-25-2004; R064-10, 10-15-2010)

      NAC 704.9115  “Losses” defined. (NRS 703.025, 704.210, 704.741)  “Losses” means the difference between the electric energy that is generated or purchased by a utility and the electric energy that is used or sold by the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.9133  “Non-wires alternative” defined. (NRS 703.025, 704.210, 704.741)  “Non-wires alternative” means a solution to an identified constraint on the utility’s electric grid which may include, without limitation, the deployment of a distributed resource or suite of distributed resources.

     (Added to NAC by Pub. Utilities Comm’n by R029-19, eff. 10-30-2019)

      NAC 704.9135  “Normalized” defined. (NRS 703.025, 704.210, 704.741)  “Normalized” means adjusted to reflect normal or representatively variable conditions.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84)

      NAC 704.9147  “Planning capacity” defined. (NRS 704.7322, 704.741)  “Planning capacity” means an amount of firm electric generating capacity required by an electric utility that primarily serves densely populated counties to meet its peak load and provide a planning reserve margin that is authorized by the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014)

      NAC 704.915  “Pooling of power” defined. (NRS 703.025, 704.210, 704.741)  “Pooling of power” means the coordinating of plans and operations by two or more electric utilities or independent power producers through the interconnection of their systems to supply power to their customers in a reliable and economical fashion.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.9152  “Preferred plan” defined. (NRS 703.025, 704.210, 704.741)  “Preferred plan” means the selection by a utility of its preferred supply options for a 20-year period.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9153  “Purchased power procurement plan” defined. (NRS 703.025, 704.210, 704.741)  “Purchased power procurement plan” means a plan which establishes the parameters of a purchased power portfolio for a utility and which balances the objectives of:

     1.  Minimizing the cost of purchased power;

     2.  Minimizing retail price volatility; and

     3.  Maximizing the reliability of purchased power over the term of the energy supply plan.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9154  “Renewable energy” defined. (NRS 703.025, 704.210, 704.741)  “Renewable energy” has the meaning ascribed to it in NRS 704.7811.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.91541  “Renewable energy facility” defined. (NRS 704.7322, 704.741)  “Renewable energy facility” has the meaning ascribed to it in NRS 704.7315.

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014)

      NAC 704.91542  “Renewable energy zone transmission action plan” defined. (NRS 703.025, 704.210, 704.741)  “Renewable energy zone transmission action plan” means the part of a utility’s action plan that identifies recommended action items for serving one or more of the renewable energy zones designated by the Commission pursuant to NAC 704.880, including, without limitation, studies, permitting, acquisition of rights of way and construction or expansion of transmission infrastructure.

     (Added to NAC by Pub. Utilities Comm’n by R088-10, eff. 12-16-2010)

      NAC 704.91543  “Renewable energy zone transmission plan” defined. (NRS 703.025, 704.210, 704.741)  “Renewable energy zone transmission plan” means the part of a utility’s supply plan that addresses the construction or expansion of transmission facilities to:

     1.  Serve each of the renewable energy zones designated by the Commission pursuant to NAC 704.880; and

     2.  Facilitate the utility in meeting the portfolio standard established pursuant to NRS 704.7821.

     (Added to NAC by Pub. Utilities Comm’n by R088-10, eff. 12-16-2010)

      NAC 704.91544  “Renewable energy zones” defined. (NRS 703.025, 704.210, 704.741)  “Renewable energy zones” has the meaning ascribed to it in NRS 704.741.

     (Added to NAC by Pub. Utilities Comm’n by R088-10, eff. 12-16-2010)

      NAC 704.9156  “Resource plan” defined. (NRS 703.025, 704.210, 704.741)  “Resource plan” means the plan that a utility is required by NRS 704.741 to submit every third year to the Commission, that consists of, and provides an integrated analysis of:

     1.  A load forecast;

     2.  A demand side plan;

     3.  A supply plan;

     4.  A financial plan;

     5.  An energy supply plan;

     6.  A distributed resources plan; and

     7.  An action plan.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004; A by R029-19, 10-30-2019)

      NAC 704.91565  “Retire” and “retirement” defined. (NRS 704.7322, 704.741)  “Retire” or “retirement” means to withdraw a coal-fired electric generating plant or coal-fired electric generating unit permanently from service.

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014)

      NAC 704.9157  “Risk management strategy” defined. (NRS 703.025, 704.210, 704.741)  “Risk management strategy” means a systematic method utilized by a utility to:

     1.  Identify risks inherent in procuring and obtaining a supply portfolio; and

     2.  Establish the means by which the utility plans to address and balance or hedge the identified risks related to cost, price volatility and reliability.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9161  “Staff” defined. (NRS 703.025, 704.210, 704.741)  “Staff” means persons employed by the Commission that are assigned by the Commission to regulatory operations.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9163  “Substantially accurate data” defined. (NRS 703.025, 704.210, 704.741)  “Substantially accurate data” means data:

     1.  That a utility demonstrates has been gathered from the best sources of information available to it; or

     2.  The validity of which is inherently uncertain but the use of which does not substantially contribute to the risk of incorrect conclusions.

     (Added to NAC by Pub. Service Comm’n, eff. 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.9166  “Supply plan” defined. (NRS 703.025, 704.210, 704.741)  “Supply plan” means a utility’s plan for using existing and proposed resources to meet its forecasted demand and energy requirements.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9173  “Year” defined. (NRS 703.025, 704.210, 704.741)  “Year” means a calendar year.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9212  Goals for energy savings resulting from energy efficiency programs; modification of goal. (NRS 703.025, 704.210, 704.741, 704.7836)

     1.  Pursuant to NRS 704.7836, the goal for energy savings established by the Commission for each electric utility is:

     (a) For the period beginning on January 1, 2022, and ending on December 31, 2024, an amount of energy savings resulting from the implementation of energy efficiency programs by the electric utility that results in an average reduction during the period of 1.1 percent of the forecasted weather normalized sales of the electric utility for the period.

     (b) For any period beginning on or after January 1, 2025, an amount of energy savings resulting from the implementation of energy efficiency programs that is established by the Commission in an order denying, approving or modifying the most recent demand side plan submitted by the electric utility pursuant to NAC 704.934.

     2.  The Commission may modify a goal for energy savings established pursuant to subsection 1 in an order granting, denying or modifying a petition submitted pursuant to NAC 703.540.

     3.  As used in this section:

     (a) “Energy efficiency program” has the meaning ascribed to it in NRS 704.7833.

     (b) “Energy savings” has the meaning ascribed to it in NRS 704.7834.

     (Added to NAC by Pub. Utilities Comm’n by R055-18, eff. 6-26-2019)

      NAC 704.9215  Summary of resource plan. (NRS 703.025, 704.210, 704.741)

     1.  A utility’s resource plan must be accompanied by a summary that is suitable for distribution to the public. The summary must contain easily interpretable tables, graphs and maps and must not contain any complex explanations or highly technical language. The summary must be approximately 40 pages in length.

     2.  The summary must include:

     (a) A brief introduction, addressed to the public, describing the utility, its facilities and the purpose of the resource plan, and the relationship between the resource plan and the strategic plan of the utility for the duration of the period covered by the resource plan.

     (b) The forecast of low growth, the forecast of high growth and the forecast of base growth of the peak demand for electric energy and of the annual electrical consumption, for the next 20 years, commencing with the year following the year in which the resource plan is filed, both with and without the impacts of programs for energy efficiency and conservation and an explanation of the economic and demographic assumptions associated with each forecast.

     (c) A summary of the demand side plan listing each program and its effectiveness in terms of costs and showing the 20-year forecast of the reduction of demand and the contribution of each program to this forecast.

     (d) A summary of the preferred plan:

          (1) Showing each planned addition to the system for the next 20 years, commencing with the year following the year in which the resource plan is filed, with its anticipated capacity, cost and date of beginning service; and

          (2) Explaining how the preferred plan reduces customer exposure to the price volatility of fossil fuels and the potential social cost of carbon as calculated pursuant to subsection 5 of NAC 704.937.

     (e) A summary of renewable energy showing how the utility intends to comply with the portfolio standard and listing each existing contract for renewable energy and each existing contract for the purchase of renewable energy credits and the term and anticipated cost of each such contract.

     (f) A summary of:

          (1) The energy supply plan for the next 3 years setting out the anticipated cost, price volatility and reliability risks of the energy supply plan;

          (2) The risk management strategy;

          (3) The fuel procurement plan; and

          (4) The purchased power procurement plan.

     (g) A summary of the distributed resources plan for the next 3 years covered by the action plan of the utility setting out:

          (1) The locational benefits and costs of the distributed resources, which may include benefits and costs to the electric grid.

          (2) Identified barriers and recommendations to accept or overcome these barriers to the deployment of cost-effective distributed resources and proposed mechanisms pursuant to which cost-effective distributed resources will be deployed, in coordination with existing programs that have been approved by the Commission.

          (3) Incremental utility investment or expenditures to be funded for the next 3 years to identify, evaluate and integrate cost-effective distributed resources into the distribution planning process.

          (4) A summary of the methods and outcomes of the hosting capacity analysis described by paragraph (b) of subsection 3 of NAC 704.9237.

          (5) A summary of forecasted loads and the forecasted growth of distributed energy resources for the electric grid over a 6-year period, at minimum, beginning with the year after the distributed resources plan is filed.

     (h) A summary of the activities, acquisitions and costs included in the action plan of the utility.

     (i) An integrated evaluation of the components of the resource plan which relates the preferred plan to the objectives of the strategic plan of the utility, and any other information useful in presenting to the public a comprehensive summary of the utility and its expected development.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 5-14-86; 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004; R167-05, 2-23-2006; R107-07, 12-4-2007; R042-10, 7-22-2010; R060-18, 12-19-2018; R029-19, 10-30-2019)

      NAC 704.922  Technical appendix to resource plan. (NRS 703.025, 704.210, 704.741)

     1.  A utility’s resource plan must include a technical appendix. The appendix must contain sufficient detail to enable a technically proficient reader to understand how the resource plan and its forecasts were prepared and to evaluate the validity of the assumptions and the accuracy of the data used, including, without limitation, a list of the major assumptions used, a description of the forecasting methods employed and a description of the software utilized.

     2.  The appendix must contain sufficient information to enable a technically proficient reader to reproduce the results from the computations shown, including, without limitation:

     (a) Citations to the sources of all significant information used in the resource plan.

     (b) Descriptions of all data inputs to the models used in developing the resource plan accompanied by an explanation of any modifications made to the data.

     (c) Characteristics of the generation operation of the utility, including the:

          (1) Rates of forced outages;

          (2) Rates of scheduled outages;

          (3) Heat rates;

          (4) Rates at which pollutants are emitted;

          (5) Controls required to mitigate pollution at planned facilities and estimates of the costs of those controls; and

          (6) Projections for the availability and price of fuels.

     (d) Output characteristics or profiles of renewable resources for each type of renewable resource that is being considered as a resource option or that is currently owned or under contract with the utility.

     (e) A summary of the impact of intermittent energy resources on the electric system of the utility.

     (f) The final results derived from the models.

     (g) Documentation of all models and formulas used consistent with any proprietary requirements imposed upon the utility by outside suppliers of the models.

     (h) Such other information as is necessary to enable an informed reader to examine the resource plan and verify the adequacy and accuracy of the data, assumptions and methods used in developing the resource plan.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.9225  Forecasts of peak demand and annual energy consumption: General requirements. (NRS 703.025, 704.210, 704.741)

     1.  A utility’s resource plan must contain a series of forecasts of the peak demand and annual energy consumption that represent the range of future load which its system may be required to serve. The range of future peak demand and energy consumption must be based upon and consistent with the upper and lower limits of expected economic and demographic change in the utility’s service territory in the next 20 years, commencing with the year following the year in which the resource plan is filed, as follows:

     (a) A forecast of high growth;

     (b) A forecast of base growth; and

     (c) A forecast of low growth.

     2.  In each of the forecasts described in subsection 1, the utility shall account for customer response to changes in the prices of electric energy and substitute energy sources and to the impacts of existing and proposed programs undertaken by the utility or required by governmental regulation to alter current energy use patterns.

     3.  To the extent data is available, peak demand must be forecasted before accounting for the effects of cogeneration.

     4.  The utility shall maintain internal consistency among its forecasts. The forecast of peak demand must be consistent with the forecast of energy consumption and must be based on data which is normalized for weather pursuant to NAC 704.9245.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.923  Periods to be covered by resource plan. (NRS 703.025, 704.210, 704.741)  The periods that must be covered by the utility’s resource plan are as follows:

     1.  For historical data, the 10-year period preceding the year in which the resource plan is filed. If estimated data are used, the utility shall identify such data and describe the procedure by which the estimates were made.

     2.  For the forecasts of peak demand and energy consumption, the 20-year period beginning with the year in which the resource plan is filed.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.9235  Formats for information included in resource plan. (NRS 703.025, 704.210, 704.741)

     1.  A utility shall, in consultation with the staff and subject to the approval of the Commission, develop suitable formats to be used for all information required in the resource plan of the utility.

     2.  Graphical and tabular information must be accompanied by explanatory narratives.

     3.  A resource plan may include text which is not specifically related to those formats but is of importance to the resource plan.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.9237  Requirements and contents of distributed resources plan; identification and justification of certain changes of methodology; public posting of update to hosting capacity analysis. (NRS 703.025, 704.210, 704.741)

     1.  The resource plan of a utility must contain a distributed resources plan for the 3 years covered by the action plan of the utility. The distributed resources plan of a utility must be consistent with the action plan of the utility.

     2.  The distributed resources plan must:

     (a) Identify and evaluate the locational benefits and costs of distributed resources. The evaluation must be based on:

          (1) Reductions or increases in local generation capacity needs;

          (2) Avoided or increased localized investments in distribution infrastructure;

          (3) Reductions or increases in safety benefits of the electric grid;

          (4) Reductions or increases in the reliability benefits of the electric grid;

          (5) Any other localized savings that the distributed resources provide to the electric grid; and

          (6) Any other costs that distributed resources impose on customers of the electric utility or utilities.

     (b) As part of the distributed resources plan, the utility may propose tariffs, bilateral contracts, competitive solicitations or other mechanisms that it has identified and evaluated that maximize locational benefits and minimize the incremental cost of distributed resources.

     (c) Identify existing programs approved by the Commission that address the deployment of distributed resources, including, without limitation, tariffs and incentives, and propose cost-effective methods of effectively coordinating the deployment of distributed resources with such existing programs to maximize the locational benefits and minimize the incremental costs of distributed resources.

     (d) Identify and evaluate any incremental utility investment or expenditure necessary to integrate cost-effective distributed resources into the distribution planning process consistent with the goal of yielding a net benefit to the customers of the electric utility or utilities.

     (e) Identify and evaluate potential barriers to the deployment of distributed resources, including, without limitation, safety standards related to technology or operation of the distribution system and make recommendations regarding accepting or overcoming identified potential barriers in a manner that will ensure the safety of the distribution grid and the reliability of service.

     (f) Be developed by a utility using a forecast of net distribution system load and distributed resources. The forecast must be for a period of not less than 6 years, beginning with the year after the distributed resources plan is filed. The net distribution system load and distributed resources forecast will include system, substation and feeder level net load projections and energy and demand characteristics for all distributed resource types.

     3.  The distributed resources plan must include:

     (a) A grid needs assessment, which must be based on the net distribution system load, distributed resource forecast and the facilities capacity analysis. The grid needs assessment must include, without limitation:

          (1) The hosting capacity analysis described by paragraph (b);

          (2) An analysis of the suitability of non-wires alternatives to mitigate identified transmission and distribution system constraints;

          (3) A locational net benefit analysis to compare utility infrastructure upgrade solutions and distributed resources solutions to forecasted transmission and distribution system constraints; and

          (4) Recommendations for the deployment of utility infrastructure upgrade solutions and non-wires alternative solutions to identified transmission and distribution system constraints.

     (b) A hosting capacity analysis of the distribution system. The hosting capacity analysis shall be performed using a load flow analysis and forecasted distribution facilities and their capacity, configuration, loading and voltage data gathered at the substation, feeder and primary node levels. The utility shall perform scenario analyses to evaluate hosting capacity under normal conditions and planned and unplanned contingency conditions. The utility shall provide a detailed description of the methods and outcomes it used to perform the hosting capacity analysis. The utility shall also provide a detailed narrative describing the utility’s progress towards providing publically-available, real-time hosting capacity data.

     (c) Recommendations for new cost-effective distributed resources, sourcing of distributed resource solutions and utility infrastructure upgrade solutions which have been determined to be the preferred solution to constraints on a utility’s electric grid on the basis of the analysis in the grid needs assessment. Such recommendations must be based on the locational net benefit analysis of resource options to utility customers.

     (d) A summary that explains how distributed resources have affected the need for supply side resources in the resource planning process. The summary shall include, without limitation, a description of the effect of distributed resources on the need for new generation and transmission resources and how distributed resources are integrated into the transmission planning and supply side planning portions of the resource planning process.

     (e) A summary that describes the results of an informal stakeholder process to discuss recommendations for improvements to the hosting capacity analysis. The informal stakeholder process shall occur not less than 120 days before the filing of a distributed resources plan and be organized by the utility.

     (f) A technical appendix that conforms to the requirements of NAC 704.922.

     4.  If the utility changes the methodology of forecasting or the methodology used to conduct the hosting capacity analysis or grid needs assessment from the methodology used in the previous resource plan filed by the utility, the utility shall identify and provide a justification for the change.

     5.  Unless otherwise ordered by the Commission, in addition to, and separately from, the updates required pursuant to NAC 704.9239, the utility shall, not less than once per year, post publicly on its Internet website an update to the hosting capacity analysis of the distribution system. The Internet website of the utility shall contain a portal that provides maps and accessible electronic data suitable for distribution to the public.

     (Added to NAC by Pub. Utilities Comm’n by R029-19, eff. 10-30-2019)

      NAC 704.9238  Deviation from and amendment of distributed resources plan. (NRS 703.025, 704.210, 704.741)

     1.  Notwithstanding the approval of the Commission of the distributed resources plan of a utility, the utility may deviate from the approved distributed resources plan to the extent necessary to respond adequately to any significant change in circumstances not contemplated by the distributed resources plan. A significant change in circumstances includes, without limitation:

     (a) A material change in net system, feeder or nodal customer load or demand;

     (b) A material difference between the estimated and actual locational net benefit results for any or all resources analyzed in the grid needs assessment;

     (c) A material difference between estimated and actual in-service dates or performance of the distributed resources analyzed and selected pursuant to the distributed resources plan; and

     (d) Any other circumstance that the utility demonstrates to the Commission warrants a deviation.

     2.  If the utility deviates from its approved distributed resources plan, the utility shall include in the rate proceeding in which costs associated with the deviation are first sought to be recovered a description and justification for the deviation.

     3.  The utility may seek authority from the Commission to deviate prospectively from the distributed resources plan in an update filed pursuant to NAC 704.9239, or by filing an amendment to the distributed resources plan in accordance with subsection 4.

     4.  An amendment to the distributed resources plan of a utility must contain:

     (a) A section that identifies the specific approvals requested by the utility in the amendment;

     (b) A section that specifies any changes in assumptions or data that have occurred since the utility’s last resource plan was filed; and

     (c) As applicable, information required by NAC 704.9237.

     5.  The Commission shall conduct its evaluation of the amendment of the distributed resources plan in accordance with subsection 5 of NAC 704.9494 and issue an order approving the amendment as filed, modifying the amendment or specifying any portions of the amendment that the Commission deems to be inadequate.

     (Added to NAC by Pub. Utilities Comm’n by R029-19, eff. 10-30-2019)

      NAC 704.9239  Update of distributed resources plan: Filing; requirements. (NRS 703.025, 704.210, 704.741)

     1.  Beginning in calendar year 2020, on or before September 1 of the first and second years after the action plan of a utility is filed, the utility shall file an update of the distributed resources plan that will be applicable for each year remaining in the period covered by the action plan.

     2.  The update of the distributed resources plan must comply with the requirements of NAC 704.9237.

     (Added to NAC by Pub. Utilities Comm’n by R029-19, eff. 10-30-2019)

      NAC 704.9241  Update of distributed resources plan: Action by Commission. (NRS 703.025, 704.210, 704.741)

     1.  The Commission will conduct a hearing within 60 days after a utility files an update of its distributed resources plan pursuant to NAC 704.9239 and issue an order within 120 days after the filing of that update by the utility.

     2.  The Commission will conduct its evaluation of the update of the distributed resources plan in accordance with subsection 5 of NAC 704.9494 and issue an order approving the update as filed, modifying the update or specifying any portions of the update that the Commission deems to be inadequate.

     (Added to NAC by Pub. Utilities Comm’n by R029-19, eff. 10-30-2019)

      NAC 704.9245  Normalizing forecast values of peak demand and energy consumption to account for normal weather conditions. (NRS 703.025, 704.210, 704.741)  All forecast values of peak demand and energy consumption must be normalized to account for normal weather conditions within the service territory of the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.925  Resource plan: Inclusion, contents and evaluation of forecasts of energy consumption and peak demand; consideration of certain impacts; identification of change in methodology of forecasting. (NRS 703.025, 704.210, 704.741)

     1.  A utility’s resource plan must include forecasts of energy consumption and the peak demand for summer and winter for the system, disaggregated by rate schedule, for the 20-year period beginning with the year following the year in which the resource plan is filed. The utility may combine rate schedules if necessary to protect the confidentiality of individual customers.

     2.  The utility shall identify components of residential and commercial energy and demand for which initiatives for energy efficiency and conservation are applicable. The utility shall include in its forecast an assessment of the impacts of such initiatives on the identified components and on overall levels of energy consumption and demand by residential and commercial customers.

     3.  The utility’s forecast must include:

     (a) Estimated annual losses of energy on the system for the 20-year period of the resource plan; and

     (b) Estimated annual energy to be used by the utility for the 20-year period of the resource plan.

     4.  The utility shall consider the impact of applicable new technologies and the impact of applicable new governmental programs or regulations.

     5.  The utility shall consider the impact of distributed generation and customers who acquire energy pursuant to NRS 704.787 or chapter 704B of NRS.

     6.  The utility shall provide a reasonable estimate of the demand from interruptible loads and the total demand of each type of interruptible load.

     7.  The utility shall identify all standby loads and the total demand of each type of standby load and include an analysis of the likelihood and effect of incurring such demands at the time of the system peak of the utility.

     8.  All forecast values for the entire system of the utility must be reported. The utility shall separately estimate the contribution to peak demand and energy consumption for the components of the system located within the State of Nevada and for the components of the system located outside the State of Nevada.

     9.  A resource plan must contain a graphical representation of projected load duration curves for the year following the year in which the resource plan was filed and every fifth year thereafter for the remainder of the period covered by the resource plan.

     10.  To verify and complete the final forecasts, the utility may evaluate the forecasts with the results of alternative forecasting methods.

     11.  Any change in the methodology of forecasting used by the utility from that used in the utility’s previous resource plan must be identified in the current resource plan of the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004; R042-10, 7-22-2010)

      NAC 704.9281  Resource plan: Contents of data relating to peak demand and energy consumption. (NRS 703.025, 704.210, 704.741)

     1.  The historical data relating to peak demand and energy consumption submitted in a utility’s resource plan must contain:

     (a) The recorded and coincident peak demand, normalized for weather, in the summer and winter for the total system for the 10-year period immediately preceding the year in which the resource plan is filed;

     (b) The recorded and annual sales of energy consumption, normalized for weather, for the total system for each year of the 10-year period immediately preceding the year in which the resource plan is filed;

     (c) The estimated losses of energy for the system for each year of the 10-year period immediately preceding the year in which the resource plan is filed; and

     (d) The estimated or actual amount of electric energy used by the utility in the operation of its business for each year of the 10-year period immediately preceding the year in which the resource plan is filed.

     2.  The data on energy consumption and peak demands must include data on all consumption and demands of ultimate customers that reflect firm, contractual commitments.

     (Added to NAC by Pub. Service Comm’n, eff. 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.9321  Resource plan: Reliability of assumptions, forecasts, conclusions and information; adjustments to forecasts; maps of covered areas; supportive testimony. (NRS 703.025, 704.210, 704.741)

     1.  To the extent consistent with cost-effective procedures generally accepted by the industry, all assumptions, forecasts, conclusions and information used by a utility in its resource plan must be:

     (a) Based on substantially accurate data;

     (b) Adequately demonstrated and defended; and

     (c) Adequately documented and justified.

     2.  Adjustments to forecasts obtained from external or published sources that are made on the basis of factors specifically relating to the utility must be explained.

     3.  Each utility shall provide a suitable map or maps to show all areas covered by the resource plan. Each such map must show at least:

     (a) The service territory covered by the resource plan;

     (b) The locations of the utility’s facilities for generation of electric energy;

     (c) The location of renewable resources, independent power producers and distributed generation that are located within the service territory of the utility and are under contract with the utility;

     (d) The interconnections with other utilities and independent power producers; and

     (e) The utility’s facilities for transmission of electric energy.

     4.  All testimony offered in support of the resource plan must be filed with the resource plan.

     (Added to NAC by Pub. Service Comm’n, eff. 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.934  Preparation, contents and submission of demand side plan; annual analyses regarding programs for energy efficiency and conservation. (NRS 703.025, 704.210, 704.741, 704.7836)

     1.  As part of its resource plan, a utility shall submit a demand side plan that is cost effective as a whole.

     2.  The demand side plan must include:

     (a) An identification of end-uses for programs for energy efficiency and conservation.

     (b) An assessment of savings attributable to technically feasible programs for energy efficiency and conservation, as determined by the utility. The programs must be ranked in a list according to the level of savings in energy or reduction in demand, or both.

     (c) An assessment of technically feasible programs to determine which will produce benefits in peak demand or energy consumption. The utility shall estimate the cost of each such program. The methods used for the assessment must be stated in detail, specifically listing the data and assumptions considered in the assessment.

     (d) An energy efficiency plan which complies with the requirements of NRS 704.7836, and which includes any additional goals for energy savings established by the Commission.

     3.  In creating its demand side plan, a utility shall consider the impact of applicable new technologies on current and future energy efficiency and conservation options. The consideration of new technologies must include, without limitation, consideration of the potential impact of advances in digital technology and computer information systems.

     4.  A utility shall include in its demand side plan an energy efficiency program for residential customers which reduces the consumption of electricity or any fossil fuel. The energy efficiency program must include, without limitation, the use of new solar thermal energy sources.

     5.  The demand side plan must provide a list of the programs for which the utility is requesting the approval of the Commission. The list must include, without limitation:

     (a) An estimate of the reduction in the peak demand and energy consumption that would result from each proposed program, in kilowatt-hours and kilowatts saved. The programs must be listed according to their expected savings and their contribution to a reduction in peak demand and energy consumption based upon realistic estimates of the penetration of the market and the average life of the programs.

     (b) An assessment of the costs of each proposed program and the savings produced by the program. If the program can be relied upon to reduce peak demand on a firm basis, the assessment must include the savings in the costs of transmission and distribution.

     (c) An assessment of the impact on the utility’s load shapes of each proposed and existing program for energy efficiency and conservation.

     (d) If a program is an educational program, the projected expenses of the utility for the educational program.

     6.  For any energy efficiency or conservation program which reduces the consumption of electricity or any fossil fuel, a utility shall include in its demand side plan a complete life-cycle analysis of the costs and benefits of the program using at least one standard test of cost effectiveness that accounts for the nonenergy benefits of the program.

     7.  The utility shall include with its demand side plan a report on the status of all programs for energy efficiency and conservation that have been approved by the Commission. The report must include tables for each such program showing, for each year, the planned and achieved reduction in kilowatt-hours, the reduction in kilowatts and the cost of the program.

     8.  Not less than 5 percent of the total expenditures related to energy efficiency and conservation programs in the demand side plan must be directed to energy efficiency and conservation programs for low-income customers of the electric utility.

     9.  On or before July 1 of each year following the filing of its resource plan, the utility shall file with the Commission a copy of the complete analysis that the utility used in determining for the upcoming year which energy efficiency and conservation programs are to be continued and which programs are to be cancelled. Within 180 days after the analysis is filed, the Commission will accept the analysis as filed, accept the analysis with modification or reject the analysis.

     10.  As used in this section:

     (a) “Energy efficiency and conservation program” has the meaning ascribed to it in NRS 704.7366.

     (b) “Energy savings” has the meaning ascribed to it in NRS 704.7834.

     (c) “New solar thermal energy sources” means energy sources which are installed after the effective date of the utility’s energy efficiency program and which reduce the consumption of electricity or any fossil fuel by using solar radiation to heat water or to provide space heating or cooling.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; 11-19-93; A by Pub. Utilities Comm’n by R004-04, 5-25-2004; R162-07, 6-17-2008; R042-10, 7-22-2010; R055-18, 6-26-2019)

      NAC 704.9355  Analyses of options for supply. (NRS 703.025, 704.210, 704.741)

     1.  A utility shall develop a set of analyses of its options for supply to be considered for meeting the expected future demand on its system. These analyses must include an examination of the environmental impact of each option, taking into account the best available technologies and the environmental benefit of renewable resources. The options to be analyzed must include:

     (a) Construction of new generation facilities or upgrades to existing generation facilities, including retrofitting existing facilities with more efficient systems or converting to other fuels;

     (b) Construction of new transmission facilities or upgrades to existing transmission facilities;

     (c) Purchase of long-term transmission rights on transmission facilities owned by other persons;

     (d) Improvements in the efficiency of operations and scheduling, including, without limitation, improvements that are attributable to the proposed implementation of new digital and computer information system technologies;

     (e) Options of low carbon intensity; and

     (f) Transactions with other utilities, independent producers and utility customers for:

          (1) Pooling of power;

          (2) Purchases of power; or

          (3) Exchanges of power.

     2.  As used in this section:

     (a) “Carbon intensity” has the meaning ascribed to it in NRS 704.741.

     (b) “Environmental benefit of renewable resources” means the present worth over a 20-year period of the benefits associated with the generation and maintenance of renewable resources for supply of capacity or energy, or supply of both capacity and energy, that results in a reduction of harm to the environment.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004; R173-09, 4-20-2010)

      NAC 704.9357  Analysis of net economic benefits to State. (NRS 703.025, 704.210, 704.741)

     1.  An analysis of the changes that result in net economic benefits to Nevada from electricity-producing or electricity-saving resources must be conducted by the utility in selecting a resource option. The net economic benefit to the State must be quantified to reflect both the positive and negative changes and must include the net economic impact of renewable resources. The projected present worth of societal cost of a competing resource plan must be within 10 percent of the lowest societal costs plan before proceeding with an analysis of the economic benefits to Nevada.

     2.  The economic benefits analysis must be achieved by calculating the portion of the present worth of future requirements for revenue that is expended within the State, including the following for both the construction and operation phases of any project:

     (a) Capital expenditures for land and facilities located within the State or equipment manufactured in the State;

     (b) The portion of the cost of materials, supplies and fuel purchased in the State;

     (c) Wages paid for work done within the State;

     (d) Taxes and fees paid to the State or subdivisions thereof; and

     (e) Fees paid for services performed within the State.

     3.  In the analysis, the utility shall consider only the net benefit added to the economy of the State of that portion of expenditures made within the State.

     4.  The present worth of societal costs of the competing resources must then be adjusted by the Commission to take into consideration either all, or only a portion, of the calculated economic benefit.

     5.  As used in this section, “net economic impact of a renewable resource” means the present worth of economic costs of a contract for a renewable resource minus the present worth of economic development benefits to the State over a 20-year period.

     (Added to NAC by Pub. Service Comm’n, eff. 3-27-92; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.9359  Determination of environmental costs to State. (NRS 703.025, 704.210, 704.741)  The environmental costs to the State associated with operating and maintaining a supply plan or demand side plan must be quantified for air emissions, water and land use and the social cost of carbon as calculated pursuant to subsection 5 of NAC 704.937. Environmental

costs are those costs, wherever they may occur, that result from harm or risks of harm to the environment after the application of all mitigation measures required by existing environmental regulation or otherwise included in the resource plan.

     (Added to NAC by Pub. Service Comm’n, eff. 3-27-92; A 1-24-96; A by Pub. Utilities Comm’n by R004-04, 5-25-2004; R060-18, 12-19-2018)

      NAC 704.9361  Elimination or modification of environmental factors, emission rates and environmental costs. (NRS 703.025, 704.210, 704.741)  The emission rates and environmental costs set or otherwise authorized by the Commission may be subject to elimination or modification, and new factors may be added for consideration, as new scientific, engineering, economic or other technical information becomes available to the Commission. Information purporting to establish a need for the deletion or addition of any environmental factor or the revision of any authorized emission rates or environmental costs may be presented by any party at the time of a hearing on the utility’s resource plan.

     (Added to NAC by Pub. Service Comm’n, eff. 3-27-92; A 1-24-96)

      NAC 704.937  Inclusion in supply plan of alternative plans and list of options for supply of capacity and electric energy; criteria for selection of options; comparison of and requirements for alternative plans; identification of preferred plan. (NRS 703.025, 704.210, 704.741)

     1.  A utility’s supply plan must contain a diverse set of alternative plans which include a list of options for the supply of capacity and electric energy that includes a description of all existing and planned facilities for generation and transmission, existing and planned power purchases, and other resources available as options to the utility for the future supply of electric energy. The description must include the expected capacity of the facilities and resources for each year of the supply plan. At least one alternative plan must be of low carbon intensity and include:

     (a) The generation or acquisition of an amount of renewable energy greater than required by NRS 704.7821;

     (b) Changes to the utility’s existing fleet of resources for the generation of power;

     (c) The application of technology that would significantly reduce emissions of carbon; or

     (d) Any combination thereof.

     2.  A utility shall identify the criteria it has used for the selection of its options for meeting the expected future demands for electric energy and shall explain how any conflicts among criteria are resolved.

     3.  In comparing alternative plans containing different resource options, the utility shall calculate the present worth of future requirements for revenue for each alternative plan for the supply of power. A comparison of the present worth of future requirements for revenue for each alternative plan must be presented in the resource plan. As calculated pursuant to this subsection, the present worth of future requirements for revenue for each alternative plan must include, without limitation, a reasonable range of costs associated with emissions of carbon in the 20-year period of the resource plan as private costs to the utility.

     4.  The utility shall calculate the present worth of societal costs for each alternative plan for the supply of power. The present worth of societal costs of a particular alternative plan must be determined by adding the environmental costs that are not internalized as private costs to the utility pursuant to subsection 3 to the present worth of future requirements for revenue. In calculating the present worth of societal costs for each alternative plan pursuant to this subsection, the utility shall include as environmental costs the utility’s estimate of the level of environmental costs resulting from carbon dioxide emissions for that year and the social cost of carbon.

     5.  For the purposes of subsection 4 and NAC 704.9215 and 704.9359, the social cost of carbon must be determined by subtracting the costs associated with emissions of carbon internalized as private costs to the utility pursuant to subsection 3 from the net present value of the future global economic costs resulting from the emission of each additional metric ton of carbon dioxide. The net present value of the future global economic costs resulting from the emission of an additional ton of carbon dioxide must be calculated using the best available science and economics such as the analysis set forth in the “Technical Support Document: Technical Update of the Social Cost of Carbon for Regulatory Impact Analysis” released by the Interagency Working Group on Social Cost of Greenhouse Gases in August 2016. This publication may be obtained, free of charge, at the Internet website https://obamawhitehouse.archives.gov/sites/default/files/omb/inforeg/scc_tsd_final_clean_8_26_16.pdf. The utility shall submit information supporting the method used by the utility to calculate the social cost of carbon.

     6.  The utility shall consider for each alternative plan the mitigation of risk by means of:

     (a) Flexibility;

     (b) Diversity;

     (c) Reduced size of commitments;

     (d) Choice of projects that can be completed in short periods;

     (e) Displacement of fuel;

     (f) Reliability;

     (g) Selection of fuel and energy supply portfolios; and

     (h) Financial instruments or electricity products.

     7.  The alternative plans of the utility must:

     (a) Provide adequate reliability;

     (b) Be within regulatory and financial constraints;

     (c) Meet the portfolio standard; and

     (d) Meet the requirements for environmental protection.

     8.  The utility shall identify its preferred plan and fully justify its choice by setting forth the criteria that influenced the utility’s choice.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; 3-27-92; A by Pub. Utilities Comm’n by R004-04, 5-25-2004; R167-05, 2-23-2006; R173-09, 4-20-2010; R060-18, 12-19-2018)

      NAC 704.9378  Supply plan: Time-line graphs for proposed resources for supply. (NRS 703.025, 704.210, 704.741)  The supply plan must contain time-line graphs for the utility’s proposed resources for supply that include major activities, milestones and points of decision. The following subjects must be included in the time-line graphs for each proposed resource:

     1.  Preparation of any required environmental impact statements;

     2.  Applications for significant permits;

     3.  Commitments of significant expenditures;

     4.  Periods for construction; and

     5.  The commercial operation date.

     (Added to NAC by Pub. Service Comm’n, eff. 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.9385  Supply plan: Contents; tables; transmission plan; information regarding purchase of power; maps; conceptual renewable energy zone transmission plan; list of assets. (NRS 703.025, 704.210, 704.741)

     1.  The supply plan of the utility must develop and document the origins of:

     (a) The assumptions, data and projections used by the utility to calculate the costs and benefits of its options.

     (b) The assessment of current and anticipated electric market conditions by the utility for the region in which the utility operates.

     (c) The basic economic and financial limitations of the utility.

     (d) The assumptions used by the utility for developing the environmental costs and the net economic benefits to the State from each of the options of the utility for future supply.

     (e) The criteria used by the utility for determining the reserve margin.

     (f) The assumptions used by the utility for renewable resources.

     (g) The assumptions used by the utility for independent power producers.

     (h) The assumptions used by the utility for the reduction in demand and energy requirements associated with customers exiting service from the utility and customers utilizing distributed generation resources.

     2.  Regarding generation, a utility’s supply plan must contain a table of all its existing and planned facilities for electric generation that it expects to be operating in each of the 20 years covered by its forecast. Each of the following items of information must be set forth in the table if applicable to a listed facility:

     (a) The planned or actual commercial operation date of the facility;

     (b) The date of the planned retirement of the facility, including the criteria used to select that date;

     (c) The type of facility;

     (d) The rated generating capacity and net expected generating capacity of the facility;

     (e) The fuel used;

     (f) The capacity of the facility for storing fuel; and

     (g) The designation of the capacity type of the facility, such as base load, intermediate or peaking.

     3.  The supply plan of a utility must include a transmission plan for the 20 years covered by the forecast in the supply plan. The transmission plan must include, without limitation:

     (a) A summary of the capabilities of the transmission system, including import, export and the rating of significant transmission paths within the system of the utility, and of the existing and planned transmission system of the utility for each year in the period covered by the resource plan.

     (b) A description of the transmission projects the utility is considering for expanding or upgrading the capabilities of its transmission system, the anticipated timing of those projects and the impact of the projects on the transmission capabilities of the existing and planned transmission system of the utility.

     (c) Identification of the transmission capacity required to serve bundled retail transmission customers, unbundled retail transmission customers and those wholesale transmission customers for whom the utility has an obligation to provide transmission services, for annual and peaking periods throughout the period covered by the resource plan.

     (d) Identification of all existing and proposed transmission service agreements, and their expiration dates, with transmission customers for transmission service on the transmission system of the utility and the impact of these agreements on available capacity for bundled retail transmission customers on the proposed or existing transmission facilities.

     (e) A table identifying all the transmission capacity that the utility has secured for its bundled retail transmission customers on both its transmission system and the transmission systems of other entities.

     (f) A description of the participation of the utility in regional planning organizations and an explanation of the role of those organizations in the transmission planning process of the utility.

     (g) A summary of the impacts of relevant orders of the Federal Energy Regulatory Commission issued since the utility filed its last resource plan.

     (h) A demonstration that the utility has attempted to reduce the impact of line losses upon its future resource requirements.

     4.  Regarding the purchase of power, the supply plan must contain a list showing:

     (a) All sources from which the utility has contracted to buy, or has plans or potential opportunities to buy, electric power during the 20 years covered by the supply plan; and

     (b) The amount of electric power that the utility has contracted to buy, or has plans or potential opportunities to buy, from each source and the years for which delivery of the electric power is contracted or planned.

     5.  The utility shall include in its supply plan a map or maps that identify the location of each existing or planned generation or transmission facility, renewable energy system and independent power producer that are projected to be relied upon during the period covered by the action plan.

     6.  In addition to the transmission plan required by subsection 3, the supply plan of a utility must include, as a discrete but integrated item in the supply plan, a conceptual renewable energy zone transmission plan for the 20 years covered by the forecast in the supply plan. The renewable energy zone transmission plan must include distinct conceptual transmission plans, which may include capacity for export to other states, for serving each of the renewable energy zones designated by the Commission pursuant to NAC 704.880. Each of the distinct conceptual transmission plans must include:

     (a) A description of the construction or expansion of transmission facilities required to be added to the utility’s existing transmission system;

     (b) An estimate of cost at the planning level, including, without limitation, estimates for permitting and other expenses of transmission development and estimated development schedules for the transmission facilities included in the transmission plan, based on information known by the utility at the time the transmission plan is submitted to the Commission;

     (c) A description of any restrictions or limitations on the construction or expansion of transmission facilities, including, without limitation, generator tie-lines in the applicable transmission plan due to any local topographical, environmental, governmental, land use or other factors or limitations that are known by the utility at the time the transmission plan is submitted to the Commission; and

     (d) An estimate of the capacity of the renewable energy resources capable of being developed in the applicable zone, based on information that is known to the utility at the time the transmission plan is submitted to the Commission.

     7.  The supply plan of a utility must include the list of all assets of the utility required by NRS 704.7338. If a utility owns only part of an asset included on the list, the identity of every other owner and the percentage of the asset owned by each owner must be set forth on the list.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004; R088-10, 12-16-2010; R069-15, 6-28-2016)

      NAC 704.9395  Resource plan: Information on financial and economic characteristics of planned facilities. (NRS 703.025, 704.210, 704.741)  A utility’s resource plan must contain information on the financial and economic characteristics of planned facilities. The information must include:

     1.  The estimated costs of construction, including:

     (a) Annual flows of expenditures with allowance for money expended during construction; and

     (b) Annual flows of expenditures without allowance for money expended during construction;

     2.  The estimated costs of operation, including:

     (a) Variable costs per kilowatt-hour, with expenses for fuel and other items indicated separately; and

     (b) Fixed costs per kilowatt-hour;

     3.  Net environmental costs and net economic benefits to the State;

     4.  The rates of escalation of cost, including:

     (a) Capital costs;

     (b) Variable fuel costs;

     (c) Nonfuel operating costs;

     (d) Environmental costs; and

     (e) Fixed operating costs; and

     5.  The average cost per kilowatt-hour at projected loads in current dollars for each year of the plan for each existing and planned facility.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; 3-27-92; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.9401  Financial information and assumptions used to develop financial plan. (NRS 703.025, 704.210, 704.741)

     1.  The assumptions and methodologies for modeling used to develop the utility’s financial plan must be described in the resource plan of the utility. The following estimated financial information for the preferred plan must be included in the financial plan:

     (a) Present worth of revenue requirements.

     (b) Nominal revenue requirements by year.

     (c) Average system rates per kilowatt-hour by year.

     (d) Total rate base by year.

     (e) Financial results attributed to the risk management strategy of the utility.

     2.  The financial assumptions used by the utility to develop its supply plan must be stated in the financial plan. The following items must be stated for each year in the financial plan:

     (a) The general rate of inflation.

     (b) The AFUDC rates used in the supply plan.

     (c) The cost of capital rates used in the supply plan.

     (d) The discount rates used in the calculations to determine present worth.

     (e) The tax rates used in the supply plan.

     (f) Other assumptions used in the supply plan.

     (Added to NAC by Pub. Service Comm’n, eff. 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.944  Supply plan: Discussion of alternative strategies. (NRS 703.025, 704.210, 704.741)  A utility shall include in its supply plan a comprehensive discussion of the alternative strategies that the utility would pursue if any preferred resource or facility were not available as described in the supply plan.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.945  Resource plan: Inclusion of certain tables and graphs. (NRS 703.025, 704.210, 704.741)

     1.  A utility shall include in its resource plan a table of loads and resources for each supply plan analyzed. The table must include the following data for each year of the resource plan:

     (a) The capacity provided by each supply resource;

     (b) The total expected capacity of all resources;

     (c) The forecasted peak demand;

     (d) The estimated impact of new programs for energy efficiency and conservation;

     (e) The expected capacity and energy provided by renewable resources, categorized by type;

     (f) The required planning reserves;

     (g) The total capacity required;

     (h) The excess or deficiency of capacity without additional resources; and

     (i) The excess or deficiency of capacity with additional planned resources.

     2.  A graph must be included for the preferred plan of the utility showing, over the 20-year planning period:

     (a) The total resources requirements;

     (b) The total demand without new programs for energy efficiency and conservation;

     (c) The total demand with new programs for energy efficiency and conservation;

     (d) The total capacity with additional planned resources; and

     (e) The total capacity without additional resources.

     3.  A graph must be included for the preferred plan that shows, for each year of the 20-year planning period, the excess or required capacity both with and without the additional planned resources.

     4.  A table must be included for each supply plan analyzed that shows, for each year of the resource plan:

     (a) The projected mix of generation by fuel type; and

     (b) The projected total emissions of carbon dioxide.

     5.  A graph must be included for each supply plan analyzed that shows, for each year of the resource plan, the percentage change in the preferred plan’s projected total emissions of carbon dioxide resulting from that supply plan.

     6.  A graph or table must be provided that shows the allocation of the capacity of the transmission system of the utility between bundled retail transmission customers, unbundled retail transmission customers and wholesale transmission customers.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004; R042-10, 7-22-2010; R060-18, 12-19-2018)

      NAC 704.9453  Inclusion of emissions reduction and capacity replacement plan in supply plan of electric utility that primarily serves densely populated counties; contents. (NRS 704.7322, 704.741)

     1.  Except as otherwise provided in this subsection, an electric utility that primarily serves densely populated counties shall include in its supply plan an emissions reduction and capacity replacement plan. The utility shall file its initial emissions reduction and capacity replacement plan on or before May 1, 2014, and shall file each subsequent emissions reduction and capacity replacement plan with its resource plan. The utility may amend its emissions reduction and capacity replacement plan in its resource plan or by filing an amendment to its resource plan.

     2.  With respect to the retirement or elimination of coal-fired electric generating capacity which must be provided for in the emissions reduction and capacity replacement plan of an electric utility that primarily serves densely populated counties pursuant to paragraph (a) of subsection 2 of NRS 704.7316, the emissions reduction and capacity replacement plan of the utility must:

     (a) Include a schedule specifying the date by which the utility proposes to retire or eliminate:

          (1) Not less than 300 megawatts of coal-fired electric generating capacity, which must not be later than December 31, 2014.

          (2) Not less than 250 megawatts of coal-fired electric generating capacity in addition to the generating capacity retired or eliminated pursuant to subparagraph (1), which must not be later than December 31, 2017.

          (3) Not less than 250 megawatts of coal-fired electric generating capacity in addition to the generating capacity retired or eliminated pursuant to subparagraphs (1) and (2), which must not be later than December 31, 2019.

     (b) Identify each coal-fired electric generating unit that the utility proposes to retire or eliminate.

     (c) Specify the amount of planning capacity associated with each coal-fired electric generating unit that the utility proposes to retire or eliminate.

     (d) Identify the estimated unamortized balance of the utility’s investment in each coal-fired electric generating unit that the utility proposes to retire or eliminate.

     (e) Identify the estimated unamortized balance, as of the proposed retirement or elimination date, of the utility’s investment in common assets directly related to each coal-fired electric generating unit that the utility proposes to retire or eliminate.

     (f) Provide an estimate of the timeline for, and costs that the utility reasonably anticipates will be incurred in, the process of decommissioning each coal-fired electric generating unit that the utility proposes to retire or eliminate.

     (g) Provide an estimate of the timeline for, and costs that the utility reasonably anticipates will be incurred in, the process of remediating the land upon which each coal-fired electric generating unit that the utility proposes to retire or eliminate is located.

     (h) Provide an estimate of any offsets of the costs of decommissioning each coal-fired electric generating unit that the utility proposes to retire or eliminate and remediating the land upon which each such unit is located.

     (i) Identify any contractual or regulatory obligations associated with each coal-fired electric generating unit that the utility proposes to retire or eliminate.

     (j) Provide the costs, if any, associated with terminating any contractual or regulatory obligations identified pursuant to paragraph (i).

     (k) Provide all contract terms and regulatory obligations that survive the retirement or elimination of each coal-fired electric generating unit that the utility proposes to retire or eliminate.

     (l) Provide the anticipated end date of any liability associated with the contractual and regulatory obligations that survive the retirement or elimination of each coal-fired electric generating unit that the utility proposes to retire or eliminate.

     3.  With respect to the construction and acquisition of, or contracting for, 350 megawatts of electric generating capacity from renewable energy facilities which must be provided for in the emissions reduction and capacity replacement plan of an electric utility that primarily serves densely populated counties pursuant to paragraph (b) of subsection 2 of NRS 704.7316, the emissions reduction and capacity replacement plan of the utility must:

     (a) Include a schedule for the issuance of requests for proposals for 300 megawatts of nameplate generating capacity from new renewable energy facilities that:

          (1) Specifies the date by which the utility will release public notice for:

               (I) The first request for proposals for 100 megawatts of nameplate generating capacity from new renewable energy facilities, which must not be later than December 31, 2014.

               (II) The second request for proposals for 100 megawatts of nameplate generating capacity from new renewable energy facilities, which must not be later than December 31, 2015.

               (III) The third request for proposals for 100 megawatts of nameplate generating capacity from new renewable energy facilities, which must not be later than December 31, 2016.

          (2) For each request for proposals described in subparagraph (1), identifies the approximate date by which the utility reasonably anticipates:

               (I) Announcing the entity with which the utility intends to negotiate binding transactional documents.

               (II) Concluding negotiations for binding transactional documents.

               (III) Filing an amendment to its emissions reduction and capacity replacement plan to seek the Commission’s approval and acceptance of final transactions to construct, acquire or contract with the new renewable energy facilities.

     (b) Provide for the construction or acquisition of a portion of a new renewable energy facility or facilities with a generating capacity of 50 megawatts to be owned and operated by the utility. With respect to the new renewable energy facility or facilities described in this paragraph, the emissions reduction and capacity replacement plan of the utility must include:

          (1) A reasonable description of the new renewable energy facility or facilities.

          (2) A budget for the new renewable energy facility or facilities.

          (3) The date by which the utility proposes to begin construction of or acquire the new renewable energy facility or facilities, which must not be later than December 31, 2017.

          (4) If applicable, the date by which the utility reasonably anticipates completing the construction of the new renewable energy facility or facilities, which must not be later than December 31, 2021.

          (5) A description of the ancillary utility facilities, if any, necessary to operate or interconnect the new renewable energy facility or facilities.

          (6) The performance and reliability standards to which the new renewable energy facility or facilities will be subject and a statement of how those standards compare to standards that the utility has mandated from other renewable energy facilities with which the utility has executed power purchase agreements.

Ê An electric utility that primarily serves densely populated counties shall not accept proposals responsive to a request for proposals described in sub-subparagraphs (II) and (III) of subparagraph (1) of paragraph (a) until the previous request for proposals process has been completed. If an electric utility that primarily serves densely populated counties or an affiliate of

such a utility submits a proposal in response to a request for proposals described in subparagraph (1) of paragraph (a), the utility must use an independent evaluator selected in consultation with the staff to identify the renewable energy facility or facilities that satisfy the criteria set forth in subparagraph (4) of paragraph (b) of subsection 2 of NRS 704.7316, and shall include in the request for proposals the performance and reliability standards to which the new renewable energy facility or facilities will be subject and a statement of how those standards compare to standards that the utility has mandated from other renewable energy facilities with which the utility has executed power purchase agreements. A utility may not recover from ratepayers any of the costs associated with the use of an independent evaluator pursuant to this subsection.

     4.  With respect to the construction or acquisition and ownership of electric generating plants with an electric generating capacity of 550 megawatts which must be provided for in the emissions reduction and capacity replacement plan of an electric utility that primarily serves densely populated counties pursuant to paragraph (c) of subsection 2 of NRS 704.7316, the emissions reduction and capacity replacement plan of the utility must include:

     (a) A reasonable description of the electric generating plant or plants with a total generating capacity of approximately 550 megawatts that the utility proposes to construct or acquire and own.

     (b) A budget for each such electric generating plant.

     (c) The date by which the utility proposes to begin construction or complete the acquisition and obtain ownership of the electric generating plant or plants.

     (d) If applicable, the date by which the utility reasonably anticipates completing the construction of the electric generating plant or plants.

     (e) A description of the ancillary utility facilities, if any, necessary to operate or interconnect the electric generating plant or plants.

     (f) The performance and reliability standards to which the electric generating plant or plants will be subject and a statement of how those standards compare to standards that the utility has mandated from other electric generating plants with which the utility has executed power purchase agreements.

Ê The emissions reduction and capacity replacement plan of the utility may include a request for approval to construct or acquire ancillary utility facilities necessary for the operation or interconnection of an electric generating plant or plants identified in this subsection.

     5.  If, pursuant to paragraph (e) of subsection 2 of NRS 704.7316, the emissions reduction and capacity replacement plan of an electric utility that primarily serves densely populated counties includes the construction or acquisition of one or more natural gas-fired electric generating plants as replacement capacity for the retirement or elimination of coal-fired electric generating capacity, the emissions reduction and capacity replacement plan of the utility must provide for a strategy for procuring fixed-price physical gas. The strategy must:

     (a) Include an estimate of the costs to ratepayers and a cost benefit analysis.

     (b) Identify the risks associated with the uncertainty of natural gas pricing.

     (c) Minimize price volatility.

     (d) Maximize the reliability of the supply of natural gas.

     6.  With respect to the plan for tracking and specifying the accounting treatment for all costs associated with the decommissioning of the coal-fired electric generating plants identified for retirement or elimination which must be provided for in the emissions reduction and capacity replacement plan of an electric utility that primarily serves densely populated counties pursuant to paragraph (f) of subsection 2 of NRS 704.7316, the emissions reduction and capacity replacement plan of the utility must:

     (a) Include a plan for tracking and specifying the accounting treatment of all costs:

          (1) Associated with the retirement and decommissioning of the coal-fired electric generating units identified for retirement or elimination under the emissions reduction and capacity replacement plan.

          (2) Of remediating the land upon which each coal-fired electric generating unit that the utility proposes to retire or eliminate is located.

     (b) Provide:

          (1) That the utility transfer any undepreciated amount or net book value of each coal-fired electric generating unit retired or eliminated pursuant to an approved emissions reduction and capacity replacement plan to a regulatory asset or liability account.

          (2) That until a regulatory asset or liability has been processed in a general rate case and is included in the utility’s revenue requirement, the utility must amortize the regulatory asset balance, or add to the regulatory liability balance, using the depreciation rates which are included in general rates at the time each unit is retired or eliminated.

          (3) For the accumulation of all decommissioning and remediation costs associated with each coal-fired electric generating unit retired or eliminated pursuant to an approved emissions reduction and capacity replacement plan in a separate regulatory asset or liability account.

          (4) For applying a carrying charge equal to the currently approved AFUDC rate only on the decommissioning and remediation costs in the regulatory asset or liability account.

          (5) For salvage and any other appropriate offsets.

     7.  In addition to the information required to be included in the emissions reduction and capacity replacement plan of an electric utility that primarily serves densely populated counties pursuant to subsections 1 to 6, inclusive, the emissions reduction and capacity replacement plan of the utility must include:

     (a) A schedule of the information described in NAC 704.945 that specifically identifies the amount of planning capacity required to replace the capacity of coal-fired electric generating units that are retired or eliminated under the emissions reduction and capacity replacement plan and the time at which the utility plans to add such capacity.

     (b) An analysis of all applicable provisions of NAC 704.9005 to 704.9525, inclusive, and, for each alternative plan presented, an analysis of:

          (1) The net economic benefit to this State based upon the factors set forth in NAC 704.9357.

          (2) The opportunity provided by the alternative plan for the creation of new jobs in this State, including, without limitation, direct and indirect job creation and the retention of permanent jobs.

          (3) The cost of the alternative plan to customers, including, without limitation, the average annual impact on rates.

          (4) The value of the alternative plan to customers, including, without limitation, the benefit and the usefulness of the alternative to customers.

     (c) A descriptive assessment of how each alternative plan might impact employment in this State through increases or decreases in electric rates, which must explain the development of, and document and justify, the descriptive assessment. The descriptive assessment must include the results, if any, of a survey of the utility’s 20 largest customers, as described in the utility’s most recent FERC Form 556, concerning how increases or decreases in electric rates resulting from each alternative plan could impact the customer’s ability to retain and create jobs in this State.

     (d) A narrative explaining the selection of the emissions reduction and capacity replacement plan based upon the relative benefits demonstrated in the analyses required by paragraph (b) and the assessment required by paragraph (c).

     8.  In addition to the information required by subsections 1 to 7, inclusive, an electric utility that primarily serves densely populated counties shall propose, as part of its initial emissions reduction and capacity replacement plan, a request for proposals process that will be used to provide for a comparative analysis of the alternatives available for the 550 megawatts of electric generating capacity to be constructed or acquired and owned by the utility pursuant to paragraph (c) of subsection 2 of NRS 704.7316. At a minimum, the request for proposals process must provide:

     (a) A timeline for the issuance of requests for proposals and the evaluations of proposals.

     (b) A clear definition of the product or products sought in the request for proposals process.

     (c) Evaluation criteria, including, without limitation, bidder and resource criteria that is consistent with the considerations to be assessed pursuant to subsection 8 of NRS 704.746.

Ê The utility may recover the just and reasonable costs associated with the utilization of the request for proposals process proposed pursuant to this subsection. The utility shall include the results of the request for proposals process in future emissions reduction and capacity replacement plans and any amendments to an emissions reduction and capacity replacement plan to support the utility’s selection of replacement resources as part of the 550 megawatts of electric generating capacity to be constructed or acquired and owned by the utility pursuant to paragraph (c) of subsection 2 of NRS 704.7316.

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014)

      NAC 704.9457  Acceptance or modification of emissions reduction and capacity replacement plan. (NRS 704.7322, 704.741)

     1.  After a hearing, the Commission may issue an order accepting or modifying an emissions reduction and capacity replacement plan of an electric utility that primarily serves densely populated counties if the emissions reduction and capacity replacement plan or any modifications to the plan provide for:

     (a) The retirement or elimination of coal-fired electric generating capacity in a manner that is consistent with paragraph (a) of subsection 2 of NRS 704.7316.

     (b) The issuance by the utility of requests for proposals for electric generating capacity from new renewable energy facilities in a manner that is consistent with paragraph (b) of subsection 2 of NRS 704.7316.

     (c) The construction or acquisition and ownership by the utility of new renewable energy facilities with a nameplate capacity of 50 megawatts in a manner that is consistent with subparagraph (6) of paragraph (b) of subsection 2 of NRS 704.7316.

     (d) The construction or acquisition and ownership by the utility of electric generating facilities with a planning capacity of approximately 550 megawatts that the Commission has determined are needed pursuant to subsection 6 of NRS 704.751 in a manner that is consistent with the provisions of NRS 704.7311 to 704.7322, inclusive, and the regulations adopted pursuant thereto.

     (e) If the plan includes the construction or acquisition of one or more natural gas-fired electric generating plants, a strategy for the commercially reasonable physical procurement of fixed-price natural gas by the utility, as required by paragraph (e) of subsection 2 of NRS 704.7316.

     (f) A plan to account for the costs associated with the retirement and decommissioning of the coal-fired electric generating units identified for retirement or elimination under the emissions reduction and capacity replacement plan and for all remediation costs.

     2.  In considering whether to accept or modify the emissions reduction and capacity replacement plan of an electric utility that primarily serves densely populated counties, the Commission will consider the factors set forth in subsection 8 of NRS 704.746 and the analyses related to those factors which is provided by the utility pursuant to paragraph (b) of subsection 7 of NAC 704.9453.

     3.  If the Commission issues an order modifying the emissions reduction and capacity replacement plan of an electric utility that primarily serves densely populated counties, the utility may accept the modifications made by the Commission or withdraw the emissions reduction and capacity replacement plan. If the utility withdraws its emissions reduction and capacity replacement plan pursuant to this subsection:

     (a) The utility must file a new emissions reduction and capacity replacement plan within 180 days after withdrawing the plan or as directed by the Commission.

     (b) The Commission may not impose an administrative fine against the utility for failing to comply with the requirements of NRS 704.7311 to 704.7322, inclusive, and the regulations adopted pursuant thereto, if the utility files a new emissions reduction and capacity replacement plan within the time frame set forth in paragraph (a).

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014)

      NAC 704.9465  Integrated analysis to establish priorities among options; consideration of results as basis for preferred plan. (NRS 703.025, 704.210, 704.741)

     1.  The utility shall perform an analysis integrating:

     (a) Planning based on demand;

     (b) Planning based on supply;

     (c) Financial planning; and

     (d) Planning to meet other applicable regulatory constraints.

     2.  The primary function of the integrated analysis is to establish priorities among the utility’s options for demand and supply so that the utility can demonstrate the minimum costs of providing electric energy to its customers.

     3.  The utility shall consider the results of the integrated analysis as a basis for its preferred plan along with the other selection criteria set forth in NAC 704.937.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.9475  Analysis of sensitivity for major assumptions and estimates used in resource plan. (NRS 703.025, 704.210, 704.741)

     1.  A utility shall conduct an analysis of sensitivity for all major assumptions and estimates used in its resource plan. The analysis must include the:

     (a) Forecast of peak demand and energy consumption;

     (b) Dates when proposed acquisitions will be in service;

     (c) Unit availability;

     (d) Costs of power plants;

     (e) Prices of fuel;

     (f) Amounts of purchased power and corresponding costs;

     (g) Schedule, impact and costs of programs for energy efficiency and conservation;

     (h) Capacity of plants in megawatts;

     (i) Discount rates;

     (j) Rate of inflation;

     (k) Cost of capital;

     (l) Environmental costs; and

     (m) Economic benefit.

     2.  The utility shall state the ranges and consequences of uncertainty for each of the assumptions and describe methods of combining various uncertainties.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; 3-27-92; A by Pub. Utilities Comm’n by R004-04, 5-25-2004; R042-10, 7-22-2010)

      NAC 704.948  Analysis of decisions. (NRS 703.025, 704.210, 704.741)

     1.  A utility shall analyze its decisions, taking into account its assessment of risk and identifying particular risks with respect to:

     (a) Costs;

     (b) Reliability;

     (c) Finances;

     (d) The volatility of the price of purchased power and fuel; and

     (e) Any other uncertainties the utility has identified.

     2.  The utility’s analysis must address the relationship among the factors used in making the utility’s decision, including the relationship between mitigating risk, minimizing cost and volatility, and maximizing reliability.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004)

      NAC 704.9482  Requirements for energy supply plan, purchased power procurement plan, fuel procurement plan and risk management strategy; consistency with action plan; annual filings. (NRS 703.025, 704.210, 704.741)

     1.  The resource plan of a utility must contain an energy supply plan for the 3 years covered by the action plan of the utility. The resource plan of a utility must be consistent with the action plan of the utility.

     2.  An energy supply plan must be developed by a utility using its base forecast and target planning reserve margin.

     3.  As part of its energy supply plan, a utility shall develop a purchased power procurement plan. The purchased power procurement plan of a utility must include, without limitation:

     (a) The proposed mix of purchased power products by:

          (1) Type of resource;

          (2) Delivery profile; and

          (3) The term that the utility considers appropriate for the expected demand.

     (b) A description of the criteria used to determine the proposed mix of power products and the material factors influencing the selection of the criteria.

     (c) The proposed schedule for procuring the purchased power products, including a description of any competitive procurement processes to be undertaken.

     (d) A regional assessment of the availability of fuel and purchased power resources for the period covered by the energy supply plan.

     (e) A projection of remaining capacity and energy requirements for each year of the period covered by the energy supply plan, after accounting for all existing resources and proposed long-term purchased power obligations.

     (f) A description, by type and term, of each existing purchased power contract with deliveries during the period covered by the energy supply plan.

     (g) A description, by type, delivery profile and term, of the purchased power products expected to be available to the utility during the period covered by the energy supply plan.

     4.  As part of its energy supply plan, a utility shall develop a fuel procurement plan for each fuel that the utility uses to generate at least 5 percent of its annual energy requirements. The fuel procurement plan must include, without limitation:

     (a) For each year of the energy supply plan, a projection of the quantity of each fuel the utility expects to use for each generating unit owned or controlled by the utility.

     (b) A description of each existing fuel contract with deliveries during the period covered by the energy supply plan, including the type of product, the quantity to be delivered, the delivery point and the term of the contract.

     (c) A description of the fuel products available to the utility during the period covered by the energy supply plan, including the type of product, the pricing method, the delivery point and the term of the availability of the fuel products.

     (d) The proposed mix of fuel products.

     (e) A description of the criteria used to determine the proposed mix of products and the material factors influencing the selection of the criteria.

     (f) The proposed schedule for procurement of the fuel, including a description of any competitive procurement process to be undertaken.

     5.  As part of its energy supply plan, a utility shall include a risk management strategy that includes, without limitation:

     (a) A description of how the risk management strategy was reflected in the determination of the energy supply plan proposed by the utility.

     (b) A description of the criteria used to select the proposed risk management strategy and identification of the material factors that influenced the selection of the criteria by the utility.

     (c) A description of each technique for mitigating risk that was considered.

     (d) The criteria to be used to evaluate the effectiveness of the risk management strategy.

     6.  A utility shall annually file with the Commission an evaluation of its purchased power procurement plan, its fuel procurement plan, its risk management strategy and, if applicable, the results of any performance-based methodology for the recovery of costs for natural gas for each year included in its deferred energy application filed pursuant to NAC 704.023 to 704.195, inclusive.

     7.  The energy supply plan of a utility must include a technical appendix that conforms to NAC 704.922.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9484  Critical facility: Procedure and purpose for designation; financial incentives. (NRS 703.025, 704.210, 704.741)

     1.  The Commission may, upon the request of a utility or an intervening party pursuant to subsection 2 or upon its own motion, make a determination as to whether to designate a facility of the utility as a critical facility. Such a determination may be made in conjunction with an order issued by the Commission pursuant to subsection 1 of NAC 704.9494 or in another proceeding on the matter.

     2.  A utility and any party granted intervener status may request that the Commission designate a facility of the utility as a critical facility for the purpose of:

     (a) Protecting reliability;

     (b) Promoting diversity of supply and demand side sources;

     (c) Developing renewable energy resources;

     (d) Fulfilling specific statutory mandates;

     (e) Promoting retail price stability; or

     (f) Any combination of paragraphs (a) to (e), inclusive.

Ê Such a request must be accompanied by supporting analysis and documentation.

     3.  If the Commission designates a facility as a critical facility, the utility may request that incentives associated with that facility be included in rates in an application to change general rates filed pursuant to NAC 703.2201 to 703.2481, inclusive. The incentives may include, without limitation:

     (a) Earning an enhanced return on equity on the designated critical facility over the life of the facility;

     (b) The inclusion in the rates of construction work in progress associated with the designated facility; and

     (c) Designating costs incurred to construct the designated critical facility in a regulatory asset account, to be recorded as a subaccount to Account 182.3 (Other Regulatory Assets). The utility may recover the regulatory asset pursuant to subsection 3 of NAC 704.9523.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9486  Performance-based methodology for recovery of costs for natural gas used as fuel for generation: Proposal for establishment; report of results. (NRS 703.025, 704.210, 704.741)

     1.  As part of its energy supply plan, a utility may propose the establishment of a performance-based methodology for the recovery of costs for natural gas used as a fuel for generation. Any proposed performance methodology must be based upon objective standards and criteria.

     2.  A proposal for the establishment of a performance-based methodology for the recovery of costs for natural gas must include information sufficient to enable the Commission to evaluate the proposal, including, without limitation:

     (a) The criteria to be used in measuring the performance of the utility;

     (b) The rationale for using the selected criteria;

     (c) If appropriate, the proposed sharing allocation between the utility and its consumers;

     (d) The duration of the program; and

     (e) Supporting documentation.

     3.  If the Commission authorizes a performance-based methodology, the utility shall report the results of the methodology approved by the Commission in the deferred energy application filed by the utility pursuant to NAC 704.023 to 704.195, inclusive. At a minimum, the report must cover the period between the adjustment date for the most recent deferred energy application and the adjustment date for the application which includes the report of the results of the approved methodology.

     4.  As used in this section, “adjustment date” has the meaning ascribed to it in NAC 704.024.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9489  Requirements for action plan. (NRS 703.025, 704.210, 704.7339, 704.734, 704.741)

     1.  Each resource plan of a utility must include a detailed action plan based on an integrated analysis of the demand side plan and supply plan of the utility. In its action plan, the utility shall specify all its actions that are to take place during the 3 years commencing with the year following the year in which the resource plan is filed. The action plan must contain:

     (a) An introductory section that explains how the action plan fits into the longer-term strategic plan of the utility.

     (b) A list of actions for which the utility is seeking the approval of the Commission.

     (c) A schedule for the acquisition of data, including planned activities to update and refine the quality of the data used in forecasting.

     (d) A specific timetable for acquisition of options for the supply of electric energy and for programs for energy efficiency and conservation.

     (e) If changes in the methodology are being proposed, a description fully justifying the proposed changes, including an analysis of the costs and benefits. Any changes in methodology that are approved by the Commission must be maintained for the period described in the action plan.

     (f) A section describing any plans of the utility to acquire additional modeling instruments.

     (g) A section for the utility’s program for energy efficiency and conservation, including:

          (1) A description of continued planning efforts;

          (2) A plan to carry out and continue selected measures for energy efficiency and conservation that have been identified as desirable; and

          (3) Any impacts of imputed debt calculations associated with energy efficiency contracts in the preferred plan.

     (h) A section for the utility’s program for acquisition of resources for the supply of electric energy for the period covered by the action plan, including:

          (1) The immediate plans of the utility for construction of facilities or long-term purchases of power;

          (2) The expected time for construction of facilities and acquisition of long-term purchases of power identified in subparagraph (1);

          (3) The major milestones of construction; and

          (4) Any impacts of imputed debt calculations associated with renewable energy contracts or energy efficiency contracts in the preferred plan.

     2.  The action plan must contain an energy supply plan and a distributed resources plan.

     3.  The action plan must contain a budget for planned expenditures suitable for comparing planned and achieved expenditures. Expenses must be listed in a format that is consistent with the categories and periods to be presented in subsequent filings. The budget must be organized in the following categories:

     (a) Forecasting of loads;

     (b) Energy efficiency and conservation;

     (c) Distributed resources;

     (d) Plan for supply; and

     (e) Financial plan.

     4.  The action plan must contain schedules suitable for comparing planned and actual activities and accomplishments. Milestones and points of decision committing major expenditures must be shown.

     5.  The action plan must contain a renewable energy zone transmission action plan for serving one or more of the renewable energy zones designated by the Commission or an explanation of why no renewable energy zone transmission action plan is contained in the action plan. In addition to the other action plan requirements set forth in this section, the renewable energy zone transmission action plan must include, with supporting data and documentation, for each action item recommended by the utility:

     (a) For permitting, routing study and right-of-way acquisition expenses, evidence addressing:

          (1) How such expenditures will facilitate compliance with NRS 704.7821 in a manner consistent with NAC 704.8901 to 704.8938, inclusive; and

          (2) All other benefits Nevada retail ratepayers will derive from the expenses;

     (b) For proposed construction and expansion of transmission facilities:

          (1) Evidence of how the proposed construction and expansion will facilitate compliance with NRS 704.7821 in a manner consistent with NAC 704.8901 to 704.8938, inclusive;

          (2) A listing and description, including detailed cost estimates and development schedules, of the transmission facilities recommended by the utility for construction or expansion;

          (3) A listing and description of transmission alternatives that were considered by the utility, including transmission development partnerships;

          (4) Data and economic analysis that supports the transmission projects recommended by the utility, including, without limitation, a comparison of the levelized cost, including transmission, of procuring renewable resources from the renewable energy zones proposed to be served by the utility’s recommended transmission projects to other renewable resource options, including those that are located in and out of renewable energy zones designated by the Commission;

          (5) Evidence of the financial commitments from developers of renewable energy projects located in the affected renewable energy zones;

          (6) An estimate of the level of capacity and energy that the utility expects to utilize from the affected renewable energy zones in the next 20 years, commencing with the year following the year in which the resource plan is filed; and

          (7) The estimated time frame to fully utilize the capacity of the construction and expansion of transmission facilities recommended by the utility; and

     (c) In addition to the renewable energy zone transmission action plan requirements set forth in paragraph (b), for construction and expansion of transmission infrastructure that will serve both Nevada retail ratepayers and export markets outside of Nevada:

          (1) Evidence that any renewable energy developers wishing to export energy outside of Nevada have a buyer for their energy and that the buyer has a means of delivering the energy from the transmission system of the Nevada utility to the point of delivery;

          (2) A strategic plan to mitigate the potential financial risks to Nevada retail ratepayers associated with stranded investment and infrastructure that is not intended to provide service to Nevada retail ratepayers, including, without limitation, safeguards to monitor the financial risk to Nevada’s retail ratepayers and criteria to trigger an amendment to the renewable energy transmission action plan should changes in circumstance occur which could expose Nevada retail ratepayers to such risks; and

          (3) Identification of the potential resources in the renewable energy zones, including the resources under contract, resources under development, known completion dates and the known amount of capacity and energy to be produced by renewable energy projects in the affected renewable energy zones for customers outside of Nevada.

     6.  The action plan must include the surplus asset retirement plan required by NRS 704.734, for each asset that has been classified as surplus by the utility pursuant to NRS 704.7338 or reclassified as surplus by the Commission pursuant to NRS 704.7339.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004; A by R167-05, 2-23-2006; R042-10, 7-22-2010; R088-10, 12-16-2010; R069-15, 6-28-2016; R029-19, 10-30-2019)

      NAC 704.94893  Requirements for emissions reduction and capacity replacement action plan. (NRS 704.7322, 704.741)

     1.  In addition to the action plan required by NAC 704.9489, an electric utility that primarily serves densely populated counties shall file with its resource plan an emissions reduction and capacity replacement action plan, except that the initial emissions reduction and capacity replacement action plan must be filed on or before May 1, 2014, as an amendment to the resource plan of the electric utility.

     2.  In its emissions reduction and capacity replacement action plan, an electric utility that primarily serves densely populated counties shall specify all the actions that are to take place during the 3 years commencing with the year following the year in which the resource plan is filed, except that in its initial emissions reduction and capacity replacement action plan, the utility shall specify all the actions that are to take place before the filing of its next resource plan. The emissions reduction and capacity replacement action plan must contain:

     (a) An introductory section that explains how the emissions reduction and capacity replacement action plan fits into the longer-term strategic plan of the utility.

     (b) A list of actions for which the utility is seeking the approval of the Commission.

     (c) A section for the utility’s program for acquisition of resources for the supply of electric energy for the period covered by the emissions reduction and capacity replacement action plan, including:

          (1) The immediate plans of the utility for construction of facilities or long-term purchases of power.

          (2) The expected time for construction of facilities and acquisition of long-term purchases of power identified in subparagraph (1).

          (3) The major milestones of construction.

     3.  The emission reduction and capacity replacement action plan must contain a budget for planned expenditures suitable for comparing planned and achieved expenditures. Expenses must be listed in a format that is consistent with the categories and periods to be presented in subsequent filings.

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014)

      NAC 704.94895  Renewable energy zone transmission action plan: Acceptance of action items. (NRS 703.025, 704.210, 704.741)  An action item contained in a renewable energy zone transmission action plan may be accepted by the Commission if the Commission determines that, with respect to that action item:

     1.  The action item will serve a renewable energy zone and will prudently facilitate the utility’s satisfaction of the portfolio standard established pursuant to NRS 704.7821 in a manner consistent with NAC 704.8901 to 704.8938, inclusive, while adequately mitigating the risk associated with stranded costs of transmission development and the costs of developing transmission capacity not intended to provide service to Nevada retail ratepayers; and

     2.  The utility has demonstrated that the financial commitments supporting renewable energy development in the affected renewable energy zones are adequate to justify implementation of the action item.

     (Added to NAC by Pub. Utilities Comm’n by R088-10, eff. 12-16-2010)

      NAC 704.9492  Rates for long-term avoided cost: Inclusion of certain information in resource plan; estimation; specification of proposed limits concerning availability. (NRS 703.025, 704.210, 704.741)

     1.  A utility shall file, as part of its resource plan, the methodology for estimating the rates for long-term avoided cost of the utility, including the capacity and energy components. The rates for long-term avoided cost must be based upon the utility’s preferred plan and be consistent with 18 C.F.R. § 292.304(a), (b), (c) and (e).

     2.  The estimated rate for long-term avoided cost must be established for various sizes of megawatt blocks, except that:

     (a) If the utility has a peak demand of at least 1,000 megawatts, the stated blocks must not exceed 100 megawatts; and

     (b) If the utility has a peak demand of less than 1,000 megawatts, the stated blocks must not exceed 10 percent of the system peak.

     3.  The components for estimated long-term avoided cost capacity and energy rate must be stated on a cents per kilowatt-hour basis for daily and seasonal peak and off-peak periods and in such a manner that rates for various contract periods may be calculated. At a minimum, the utility shall provide estimated rates for long-term avoided cost for a 20-year contract and the long-term avoided cost by year for 5 years commencing in the year following the filing of the resource plan.

     4.  In developing the estimated rates for long-term avoided cost, the proposed rates must not be applied to renewable energy or to energy that is subject to the qualified energy recovery process as defined in NRS 704.7809.

     5.  The utility shall specify its proposed limits concerning the availability of the rates for long-term avoided cost.

     6.  The resource plan of the utility must include the analyses and calculations used to determine the proposed rates.

     7.  The resource plan must include a description of the methodology that will be used to derive the rates for long-term avoided costs from the solicitation of proposals performed pursuant to subsection 5 of NAC 704.9496.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9494  Approval or modification of action plan; determination that elements of energy supply plan and distributed resources plan are prudent; recovery of costs to carry out approved plans. (NRS 703.025, 704.210, 704.741, 704.751, 704.785)

     1.  The Commission will issue an order:

     (a) Approving the action plan of the utility as filed;

     (b) Modifying the action plan of the utility; or

     (c) If the plan is not approved as filed or modified, specifying those parts of the action plan the Commission considers inadequate.

     2.  An action plan shall be deemed to be approved by the Commission only as to that portion of the plan accepted as filed or modified with the consent of the utility pursuant to subsection 1 of NRS 704.751.

     3.  Approval by the Commission of an action plan constitutes a finding that the programs and projects contained in that action plan, other than the energy supply plan and distributed resources plan, are prudent, including, without limitation, construction of facilities, purchased power obligations, programs for energy efficiency and conservation and impacts of imputed debt calculations associated with renewable energy contracts or energy efficiency contracts. If the Commission subsequently determines that any information relied upon when issuing its order approving or modifying the action plan was based upon information that was known or should have been known by the utility to be untrue or false at the time the information was presented, the Commission may revoke, rescind or otherwise modify its approval of the action plan.

     4.  If, at the time that the Commission approves the action plan of the utility, the Commission determines that the elements of the energy supply plan are prudent, the Commission will specifically include in the approval of the action plan its determination that the elements contained in the energy supply plan are prudent. For the Commission to make a determination that the elements of the energy supply plan are prudent:

     (a) The energy supply plan must not contain any feature or mechanism that the Commission finds would impair the restoration of the creditworthiness of the utility or would lead to a deterioration of the creditworthiness of the utility.

     (b) The energy supply plan must optimize the value of the overall supply portfolio for the utility for the benefit of its bundled retail customers.

     (c) The utility must demonstrate that the energy supply plan balances the objectives of minimizing the cost of supply, minimizing retail price volatility and maximizing the reliability of supply over the term of the plan.

Ê Failure by a utility to demonstrate that its energy supply plan is prudent in accordance with this subsection does not otherwise affect approval of the action plan, including the energy supply plan, and the utility may subsequently seek a determination that the energy supply plan is prudent in the appropriate deferred energy proceeding.

     5.  If, at the time that the Commission approves the action plan of the utility, the Commission determines that the elements of the distributed resources plan are prudent, the Commission will specifically include in the approval of the action plan its determination that the elements contained in the distributed resources plan are prudent. For the Commission to make a determination that the elements of the distributed resources plan are prudent:

     (a) The net distribution system load and distributed resource forecasts, hosting capacity analysis, grid needs assessment and non-wires alternative and locational net benefit analyses must have been prudently performed; and

     (b) The selections of new distributed resources set forth in the distributed resources plan must be reasonable.

     6.  A utility may recover all costs that it prudently and reasonably incurs in carrying out an approved action plan in the appropriate separate rate proceeding. A utility may recover all costs it prudently and reasonably incurs in carrying out an approved distributed resources plan in an appropriate separate rate proceeding. A utility may recover all costs that are prudently and reasonably incurred in carrying out the approved energy supply plan, including deviations pursuant to subsection 1 of NAC 704.9504 approved by the Commission in the appropriate deferred energy application filed pursuant to NAC 704.023 to 704.195, inclusive.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004; A by R167-05, 2-23-2006; R042-10, 7-22-2010; R110-15, 6-28-2016; R029-19, 10-30-2019)

      NAC 704.9496  Estimated rates for long-term avoided cost: General requirements; action by Commission; solicitation of proposals; report. (NRS 703.025, 704.210, 704.741)

     1.  In conjunction with the issuance by the Commission of a final order approving or modifying the action plan, the Commission will issue an order addressing the utility’s proposed estimated rates for long-term avoided cost, including the methodology and limits to be used by the utility for its filing pursuant to NAC 704.9492. The Commission will consider the factors listed in 18 C.F.R. § 292.304(a), (b), (c) and (e) in its evaluation of the utility’s proposed estimated rates for long-term avoided cost.

     2.  The utility shall file with the Commission the utility’s estimated rates for long-term avoided cost within 60 days after the Commission issues its order pursuant to subsection 1 specifying the methodology for estimating the rates for long-term avoided cost.

     3.  The estimated rates for long-term avoided cost filed by the utility with the Commission pursuant to subsection 2 must:

     (a) Be consistent with the methodology for estimating the long-term avoided cost approved by the Commission and be based upon the resource plan approved by the Commission.

     (b) Unless otherwise ordered by the Commission, be consistent with the format set forth in subsections 2 and 3 of NAC 704.9492 and be limited to those rates proposed by the utility pursuant to subsection 5 of NAC 704.9492.

     4.  If required, the Commission will hold a hearing on the estimated rates for long-term avoided cost within 90 days after the utility files the estimated rates for long-term avoided cost pursuant to subsection 2. If a hearing is held, the Commission will issue an order on the matter within 45 days after the conclusion of the hearing.

     5.  Within 30 days after the date on which the Commission issues an order pursuant to subsection 4, the utility shall solicit proposals to provide the utility capacity or energy, or both, in a manner that complies with the methodology for estimating long-term avoided cost approved by the Commission.

     6.  Within 90 days after issuing a solicitation of proposals pursuant to subsection 5, the utility shall file with the Commission a report concerning the results of the solicitation.

     7.  The utility’s rate for long-term avoided cost for each block must be the estimated rate for long-term avoided cost established pursuant to this section or the competitive rate solicited pursuant to subsection 5, whichever is lower.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004; A by R110-15, 6-28-2016)

      NAC 704.9497  Approval or modification of emissions reduction and capacity replacement action plan; consequences if utility provides untrue or false information. (NRS 703.025, 704.210, 704.7322, 704.741)

     1.  The Commission will issue an order:

     (a) Approving the emissions reduction and capacity replacement action plan of an electric utility that primarily serves densely populated counties as filed;

     (b) Modifying the emissions reduction and capacity replacement action plan of an electric utility that primarily serves densely populated counties; or

     (c) If the emission reduction and capacity replacement action plan of an electric utility that primarily serves densely populated counties is not approved as filed or modified, specifying those parts of the action plan the Commission considers inadequate.

     2.  The emissions reduction and capacity replacement plan of an electric utility that primarily serves densely populated counties shall be deemed to be approved by the Commission only as to that portion of the plan accepted as filed or modified with the consent of the utility pursuant to subsection 1 of NRS 704.751.

     3.  Approval by the Commission of an emissions reduction and capacity replacement action plan constitutes a finding that the programs and projects contained in that plan are prudent. If the Commission subsequently determines that any information relied upon when issuing its order approving or modifying the emissions reduction and capacity replacement action plan was based upon information that was known or should have been known by the utility to be untrue or false at the time the information was presented, the Commission may revoke, rescind or otherwise modify its approval of the action plan.

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014; A by R110-15, 6-28-2016)

      NAC 704.9498  Report on progress of action plan: Filing; service; contents; form; hearing. (NRS 703.025, 704.210, 704.741)

     1.  Not earlier than 15 months and not later than 21 months after the date on which the utility files its action plan, the utility shall file a report on the progress of its action plan with the Commission and serve a copy of the progress report on all parties of record. The progress report must include:

     (a) Information concerning the status of planned facilities approved by the Commission, including any cost or schedule variances;

     (b) Information concerning the status of all programs for energy efficiency and conservation, including planned and achieved reductions in kilowatt-hours and reduction in demand in kilowatt-hours;

     (c) A comparison of budgeted and actual costs for the entire action plan;

     (d) An identification of and justification for any significant deviation from the approved action plan, including supporting information;

     (e) An updated forecast of energy consumption and peak demand; and

     (f) An updated table for loads and resources for the remaining years covered by the 20-year plan.

     2.  The progress report must be in the same form as the action plan and will be assigned a new docket number by the Commission.

     3.  The utility or any party of record may request a hearing on the progress report, specifying in its request the reason the utility or party believes a hearing is required. Upon a finding of good cause, the Commission will order a hearing on the matter.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004; A by R042-10, 7-22-2010)

      NAC 704.9503  Monitoring and amendment of action plan. (NRS 703.025, 704.210, 704.741, 704.7881)

     1.  Except as otherwise provided in NRS 704.871, a utility shall continually monitor its action plan and shall amend the plan before it submits its next action plan if any of the following circumstances exist:

     (a) The utility anticipates submitting an application for a permit to construct a utility facility pursuant to NRS 704.820 to 704.900, inclusive, which was not previously approved as part of the action plan.

     (b) The utility makes a commitment for the acquisition or construction of a facility that was not previously approved as part of the action plan.

     (c) The utility makes a commitment for a long-term purchased power obligation which was not previously approved as part of the action plan.

     (d) The utility is unable to place a resource in service or secure a resource in accordance with the schedule for the resource that is included in the action plan approved by the Commission and the modified schedule results in a significant deviation from the planned reserve margin for any period in the 3-year action plan.

     (e) The utility makes a commitment for an option that was not available at the time the action plan was approved.

     (f) The basic data used in the formation of the plan requires significant modification that affects the choice of a resource which was approved as part of the action plan.

     2.  The conditions under which an amendment is sought must be specifically set forth in the application for amendment.

     (Added to NAC by Pub. Service Comm’n, eff. 5-14-86; A 2-18-88; 7-31-91; A by Pub. Utilities Comm’n by R144-01, 5-31-2002; R004-04, 5-25-2004; R072-13, 12-23-2013)

      NAC 704.95035  Monitoring and amendment of emissions reduction and capacity replacement action plan. (NRS 704.7322, 704.741)

     1.  An electric utility that primarily serves densely populated counties shall continually monitor its emissions reduction and capacity replacement action plan and shall amend the action plan before it submits its next emissions reduction and capacity replacement action plan if any of the following circumstances exist:

     (a) The utility anticipates submitting an application for a permit to construct a utility facility pursuant to NRS 704.820 to 704.900, inclusive, which was not previously approved as part of the emissions reduction and capacity replacement action plan.

     (b) The utility makes a commitment for the acquisition or construction of a facility that was not previously approved as part of the emissions reduction and capacity replacement action plan.

     (c) The utility is unable to place a resource in service or secure a resource in accordance with the schedule for the resource that is included in the emissions reduction and capacity replacement action plan approved by the Commission.

     (d) The utility makes a commitment for an option that was not available at the time the emissions reduction and capacity replacement action plan was approved.

     (e) The basic data used in the formation of the emissions reduction and capacity replacement action plan requires significant modification that affects the choice of a resource which was approved as part of the plan.

     2.  The conditions under which an amendment is sought must be specifically set forth in the application for amendment.

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014)

      NAC 704.9504  Deviation from and amendment of energy supply plan. (NRS 703.025, 704.210, 704.741)

     1.  Notwithstanding the approval by the Commission of the energy supply plan of a utility, the utility may deviate from the approved energy supply plan to the extent necessary to respond adequately to any significant change in circumstances not contemplated by the energy supply plan. A significant change in circumstances includes, without limitation:

     (a) A material change in the market price of fuel or purchased power;

     (b) An extended forced outage of a major generating unit of the utility;

     (c) A material change in customer demand; and

     (d) Any other circumstance that the utility demonstrates to the Commission warrants a deviation.

     2.  If a utility deviates from its approved energy supply plan:

     (a) The utility shall, as soon as practicable, inform the staff of the deviation from the energy supply plan.

     (b) The utility shall include in the deferred energy application filed pursuant to NAC 704.023 to 704.195, inclusive, in which costs associated with the deviation are first sought to be recovered, a description of and justification for the deviation.

     (c) The Commission will determine on a retrospective factual basis the prudence of the deviation from the energy supply plan in the appropriate proceeding held on the deferred energy application.

     (d) If the deviation from the energy supply plan is of a continuing nature, the utility shall seek authority from the Commission to deviate prospectively from the energy supply plan in an update of the energy supply plan filed pursuant to NAC 704.9506, or by filing an amendment to the energy supply plan in accordance with subsection 3.

     3.  An amendment to the energy supply plan of a utility must contain:

     (a) A section that identifies the specific approvals requested by the utility in the amendment;

     (b) A section that specifies any changes in assumptions or data that have occurred since the utility’s last resource plan was filed; and

     (c) As applicable, information required in subsections 1 to 5, inclusive, and 7 of NAC 704.9482.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9506  Update of energy supply plan: Filing; requirements. (NRS 703.025, 704.210, 704.741)

     1.  On or before September 1 of the first and second years after the action plan of a utility is filed, the utility shall file an update of the energy supply plan that will be applicable for each year remaining in the period covered by the action plan.

     2.  The update of the energy supply plan must comply with the requirements of subsections 1 to 5, inclusive, and 7 of NAC 704.9482, except that the load forecast must be the most recent forecast available at the time the plan is prepared.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9508  Update of energy supply plan: Action by Commission. (NRS 703.025, 704.210, 704.741)

     1.  The Commission will conduct a hearing within 60 days after a utility files an update of its energy supply plan pursuant to NAC 704.9506 and issue an order within 120 days after the filing of that update by the utility pursuant to NAC 704.9506.

     2.  The Commission will conduct its evaluation of the update of the energy supply plan in accordance with NAC 704.9494.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9512  Submission to Commission of certain purchased power obligations; disclosure of certain affiliate relationships. (NRS 703.025, 704.210, 704.741)

     1.  The utility shall submit to the Commission a copy of:

     (a) Each long-term purchased power obligation; and

     (b) Any other purchased power obligation for which the utility is seeking the approval of the Commission,

Ê to which the utility is committed or plans to become committed during the period covered by the action plan.

     2.  For any such contract that is not executed at the time the action plan is filed, the utility shall submit the contract, upon execution, to the Commission for review. The utility shall, for each such contract, disclose the existence of any affiliate relationship between the parties.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9514  Preapproval of certain fuel and purchased power agreements. (NRS 703.025, 704.210, 704.741)  To the extent the Commission deems appropriate, the Commission may preapprove and deem prudent fuel and purchased power agreements by a utility that are less than 3 years in duration.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004)

      NAC 704.9516  Contents of amendment to action plan. (NRS 703.025, 704.210, 704.741)

     1.  An amendment to an action plan submitted by a utility pursuant to NAC 704.9503 must contain:

     (a) A section that identifies the items for which the utility is requesting specific approval;

     (b) A section that specifies any changes in assumptions or data that have occurred since the utility’s last resource plan was filed;

     (c) As applicable, information required in paragraphs (d) and (e) of subsection 1 of NAC 704.9489, and subsections 3 and 4 of NAC 704.9489;

     (d) As applicable, data and information required pursuant to NAC 704.922 to 704.948, inclusive, necessary to facilitate an evaluation of the items specified pursuant to paragraph (a) for which the utility is requesting specific approval;

     (e) A current peak demand forecast;

     (f) A table indicating the current loads and resources; and

     (g) If the utility seeks an amendment related to a renewable energy contract or energy efficiency contract, information about the imputed debt mitigation.

     2.  For amendments submitted pursuant to paragraphs (a) and (f) of subsection 1 of NAC 704.9503, a utility shall file with the Commission the information required pursuant to paragraph (d) of subsection 1 of this section.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004; A by R167-05, 2-23-2006)

      NAC 704.9517  Contents of amendment of emissions reduction and capacity replacement action plan. (NRS 704.7322, 704.741)

     1.  An amendment to an emissions reduction and capacity replacement action plan submitted by an electric utility that primarily serves densely populated counties pursuant to NAC 704.95035 must contain:

     (a) A section that identifies the items for which the utility is requesting specific approval;

     (b) A section that specifies any changes in assumptions or data that have occurred since the utility’s last resource plan was filed;

     (c) As applicable, the information required by NAC 704.94893;

     (d) As applicable, the data and information required pursuant to NAC 704.922 to 704.948, inclusive, necessary to facilitate an evaluation of the items identified pursuant to paragraph (a) for which the utility is requesting specific approval; and

     (e) If the utility seeks an amendment related to a renewable energy contract or energy efficiency contract, information about the imputed debt mitigation.

     2.  For an amendment to an emissions reduction and capacity replacement action plan submitted pursuant to paragraphs (a) and (e) of subsection 1 of NAC 704.95035, an electric utility that primarily serves densely populated counties shall file with the Commission the information required pursuant to paragraph (d) of subsection 1 of this section.

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014)

      NAC 704.9518  Approval or modification of amendment to action plan or energy supply plan. (NRS 703.025, 704.210, 704.741)

     1.  For amendments filed pursuant to NAC 704.9503 and in accordance with subsection 3 of NAC 704.9504, the Commission will issue an order approving the amendment as filed, modifying the amendment or specifying those parts of the amendment the Commission considers inadequate.

     2.  An amendment to an action plan shall be deemed to be approved by the Commission only as to that portion of the amendment to the plan accepted as filed or modified with the consent of the utility pursuant to subsection 2 of NRS 704.751.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004; A by R110-15, 6-28-2016)

      NAC 704.9519  Approval or modification of amendment to emissions reduction and capacity replacement action plan. (NRS 703.025, 704.210, 704.7322, 704.741)

     1.  For an amendment to an emissions reduction and capacity replacement action plan filed pursuant to NAC 704.95035, the Commission will issue an order approving the amendment as filed, modifying the amendment or specifying those parts of the amendment the Commission considers inadequate.

     2.  An amendment to an emissions reduction and capacity replacement plan shall be deemed to be approved by the Commission only as to that portion of the amendment to the plan accepted as filed or modified with the consent of the utility pursuant to subsection 2 of NRS 704.751.

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014; A by R110-15, 6-28-2016)

      NAC 704.952  Sessions for reviewing plans; procedure for resolving issues during sessions; summary of topics and conclusions; public meeting to provide overview of anticipated filing or amendment of resource plan. (NRS 703.025, 704.210, 704.741, 704.744)

     1.  A utility may schedule sessions for reviewing plans and providing an opportunity for interested persons to:

     (a) Learn of progress by the utility in developing plans and amendments to plans;

     (b) Determine whether key assumptions are being applied in a consistent and acceptable manner;

     (c) Determine whether key results are reasonable; and

     (d) Offer suggestions on other matters as appropriate.

     2.  If the utility, the Bureau of Consumer Protection in the Office of the Attorney General, the staff or any other person participating in the process cannot agree to schedule sessions for reviewing plans, any of those persons may petition the Commission to schedule the sessions.

     3.  The parties involved in the review sessions may establish, at the beginning of the sessions, a procedure to resolve any technical issues that are discussed during the sessions.

     4.  If review sessions are held pursuant to subsection 1, the utility shall prepare a brief summary of the major topics on the agendas and the conclusions reached by the parties during the review sessions. The summary must be provided to the Commission in conjunction with testimony supporting the utility’s plan.

     5.  Not less than 4 months before filing a plan required by NRS 704.741, or within a reasonable period before filing an amendment to such a plan pursuant to NRS 704.751, the utility shall meet with staff, the personnel of the Bureau of Consumer Protection and any other interested persons to provide an overview of the plan or amendment.

     6.  For each meeting held pursuant to subsection 5, the utility shall prepare a notice of the meeting which must include, without limitation, the date, time and location of the meeting and an explanation of the purpose of the meeting. The utility shall distribute the notice by:

     (a) Posting the notice on the Internet website of the utility;

     (b) Sending the notice via electronic mail to each person on the relevant service list maintained by the Commission; and

     (c) Providing the notice to staff of the Commission for publication on the Internet website of the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 5-14-86; 2-18-88; A by Pub. Utilities Comm’n by R004-04, 5-25-2004; R060-18, 12-19-2018)

      NAC 704.9522  Measurement and verification protocol for energy efficiency and conservation measures: Duties of utility provider. (NRS 703.025, 704.210, 704.741)

     1.  A utility provider shall propose a measurement and verification protocol for all energy efficiency and conservation measures submitted pursuant to NAC 704.9005 to 704.9525, inclusive.

     2.  The utility provider shall comply with, and shall ensure that all energy efficiency and conservation contracts entered into by the utility provider comply with, the most recent measurement and verification protocol approved by the Commission.

     (Added to NAC by Pub. Utilities Comm’n by R167-05, eff. 2-23-2006; A by R042-10, 7-22-2010)

      NAC 704.95225  Recovery of certain amounts based on measurable and verifiable effects of implementation of programs for energy efficiency and conservation. (NRS 703.025, 704.210, 704.785)

     1.  An electric utility may recover an amount based on the measurable and verifiable effects of the implementation by the electric utility of programs for energy efficiency and conservation described in the demand side plan of the electric utility and approved by the Commission pursuant to NAC 704.9494 as part of the action plan of the electric utility. The amount recovered must include:

     (a) The costs reasonably incurred by the electric utility in implementing and administering the programs for energy efficiency and conservation, which are recovered pursuant to paragraph (a) of subsection 2 of NAC 704.9523; and

     (b) An amount equal to the costs reasonably incurred by the electric utility in implementing and administering the programs for energy efficiency and conservation multiplied by the electric utility’s authorized overall rate of return grossed up for taxes applicable to the utility’s equity portion of the authorized rate of return, which is recovered pursuant to paragraph (b) of subsection 2 of NAC 704.9523.

     2.  The Commission will consider the effect of any recovery pursuant to this section on the rates of the customers of the electric utility.

     (Added to NAC by Pub. Utilities Comm’n by R042-10, eff. 7-22-2010; A by R046-15, 10-27-2015, eff. 1-1-2016; R055-18, 6-26-2019)

      NAC 704.9523  Accounting for and recovery of costs of implementing programs for energy efficiency and conservation. (NRS 703.025, 704.210, 704.785)

     1.  All costs of implementing programs for energy efficiency and conservation calculated pursuant to paragraph (a) of subsection 2 and the amounts calculated pursuant to paragraph (b) of subsection 2 must be accounted for in the books and records of an electric utility separately from costs and amounts attributable to any other activity. All accounts must be maintained in a manner that will allow costs and amounts attributable to specific programs to be readily identified.

     2.  An electric utility may, pursuant to subsection 3, recover:

     (a) All reasonably incurred costs of implementing programs for energy efficiency and conservation that have been described in the demand side plan of the electric utility and approved by the Commission pursuant to NAC 704.9494 as part of the action plan of the electric utility, including, without limitation, the costs for labor, overhead, materials, incentives paid to customers, advertising, marketing, monitoring and evaluation.

     (b) An amount equal to the costs calculated pursuant to paragraph (a) multiplied by the electric utility’s authorized overall rate of return grossed up for taxes applicable to the utility’s equity portion of the authorized rate of return.

     3.  To recover the reasonably incurred costs of implementing programs for energy efficiency and conservation calculated pursuant to paragraph (a) of subsection 2 and the amounts calculated pursuant to paragraph (b) of subsection 2, an electric utility must:

     (a) Establish and maintain separate subsidiary records of the subaccounts of FERC Account No. 182.3 (Other Regulatory Assets) for each program described in the demand side plan of the electric utility and approved by the Commission pursuant to NAC 704.9494 as part of the action plan of the electric utility. These records must clearly delineate all costs calculated pursuant to paragraph (a) of subsection 2 and amounts calculated pursuant to paragraph (b) of subsection 2 and be maintained by program by month by rate effective period.

     (b) At the time the electric utility files an annual deferred energy accounting adjustment application pursuant to subsection 3 of NRS 704.187, apply to the Commission to establish the following period-specific rates:

          (1) A prospective base program cost rate which is determined by allocating in the manner approved by the Commission in the most recent general rate case of the electric utility the total cost of programs for energy efficiency and conservation that are described in the demand side plan approved by the Commission. The prospective base program cost rate for a customer class is an amount equal to the cost allocated to that customer class pursuant to this subparagraph divided by the projected kilowatt hour sales for that class for the relevant period.

          (2) A deferred program cost rate to clear the period-specific balance over 12 months. The deferred program cost rate is an amount equal to the period-specific balance in the subaccount of FERC Account No. 182.3 for the cost of programs for energy efficiency and conservation divided by the applicable test period kilowatt hour sales.

     (c) At the time the electric utility files an annual deferred energy accounting adjustment application pursuant to subsection 3 of NRS 704.187, file a statement that reports the Nevada jurisdictional earned rate of return for each month of the test period for the electric utility. The Nevada jurisdictional earned rate of return must be calculated for each month of the test period on a 12-month average rate base. The statement must be accompanied by all subsidiary schedules, and any adjustments made thereto, necessary to support the calculations.

     4.  Except as otherwise provided in subsection 8, if the Nevada jurisdictional earned rate of return for the last month of the test period reported for an electric utility pursuant to paragraph (c) of subsection 3 exceeds the rate of return last authorized by the Commission to set rates for the electric utility, the electric utility must, at the time the electric utility files the annual deferred energy accounting adjustment application pursuant to subsection 3 of NRS 704.187:

     (a) File a statement that reports calculations of:

          (1) The amount of revenue which caused the electric utility to exceed the rate of return last authorized by the Commission;

          (2) An adjustment to the amount calculated pursuant to paragraph (b) of subsection 2; and

          (3) The carrying charges at a monthly rate of 1/12 of the authorized overall rate of return on the adjustment amount calculated pursuant to subparagraph (2).

     (b) Establish a rate of credits for adjustments calculated pursuant to subparagraph (2) of paragraph (a) attributable to each class of service and which are identifiable from the information maintained in accordance with paragraph (a) of subsection 3.

     5.  Except as otherwise provided in subsection 8, an electric utility must:

     (a) Record any adjustment calculated pursuant to subparagraph (2) of paragraph (a) of subsection 4 in a subaccount of FERC Account No. 254.

     (b) Transfer any balance which remains in the subaccount of FERC Account No. 254 at the end of the amortization period to the appropriate subaccount of FERC Account No. 182.3 for the current period.

     (c) Maintain sufficiently detailed information to identify the amount of the adjustment attributable to each class of service.

     6.  Except as otherwise provided in subsection 8, the sum of the adjustment calculated pursuant to subparagraph (2) of paragraph (a) of subsection 4 and any adjustments for carrying charges made to subaccounts of FERC Account No. 182.3 must not exceed the amount of revenue calculated pursuant to subparagraph (1) of paragraph (a) of subsection 4.

     7.  An electric utility shall account for period-specific costs incurred to implement a program for energy efficiency and conservation calculated pursuant to paragraph (a) of subsection 2, amounts calculated pursuant to paragraph (b) of subsection 2 and revenues received from the period-specific prospective base program cost rate in the following manner:

     (a) On a monthly basis, the electric utility shall record in a subaccount of FERC Account No. 182.3 the program costs incurred, amounts calculated pursuant to paragraph (b) of subsection 2 and the revenues received from the prospective base program cost rate for the program for energy efficiency and conservation.

     (b) The electric utility shall apply a carrying charge at the rate of 1/12 of the authorized overall rate of return to the unamortized balance in the subaccounts of FERC Account No. 182.3. If, in any month, the balance in a subaccount of FERC Account No. 182.3 is a debit, an adjustment amount must be calculated in an amount equal to the amount which exceeds the electric utility’s last authorized rate of return that was used to set rates for the electric utility or any remainder after the rate of return has been applied to the carrying charge calculation for deferred energy pursuant to NAC 704.150.

     8.  If the Commission authorizes a rate adjustment mechanism for an electric utility pursuant to paragraph (b) of subsection 1 of NRS 704.785, the provisions of subsections 4, 5 and 6 do not apply to the electric utility.

     (Added to NAC by Pub. Utilities Comm’n by R004-04, eff. 5-25-2004; A by R162-07, 6-17-2008; R051-09, 1-28-2010; R042-10, 7-22-2010; R046-15, 10-27-2015, eff. 1-1-2016; R055-18, 6-26-2019)

      NAC 704.95245  Accounting for and recovery of costs of new utility facilities constructed or acquired and owned pursuant to emissions reduction and capacity replacement plan. (NRS 704.7322, 704.741)

     1.  For each new utility facility constructed or acquired and owned by an electric utility that primarily serves densely populated counties pursuant to an emissions reduction and capacity replacement plan approved by the Commission, the utility shall create a regulatory asset or liability account for each facility at the time it is placed into operation before inclusion in general rates.

     2.  Within each such regulatory asset or liability account, the utility shall begin calculating and recording the following costs the month after the asset has been placed into plant in service:

     (a) Carrying charges reflecting the most recently authorized rate of return on net plant balance of the facility constructed or acquired and owned;

     (b) The depreciation expense recorded on that facility;

     (c) All expenses incurred by the utility to operate and maintain the facility; and

     (d) Carrying charges on the regulatory asset or liability balance which reflect the most recently authorized rate of return.

     3.  The utility shall submit the regulatory asset or liability accounts to the Commission in the next general rate case necessary to clear the accumulated balance. The utility shall include in the request for recovery:

     (a) A proposed period for recovery and amortization of the regulatory asset or liability; and

     (b) A request for an amount necessary to recover a return on the unamortized balance accumulated as of the end of the test period or certification period, whichever is later.

     (Added to NAC by Pub. Utilities Comm’n by R131-13, eff. 3-28-2014)

      NAC 704.9525  Severability. (NRS 703.025, 704.210, 704.741)  If any provision of NAC 704.9005 to 704.9525, inclusive, is held invalid, the Commission intends that such invalidity not affect the remaining provisions to the extent that they can be given effect.

     (Added to NAC by Pub. Service Comm’n, eff. 6-7-84; A 5-14-86; A by Pub. Utilities Comm’n by R029-19, 10-30-2019)

RESOURCE PLANNING AND ENERGY CONSERVATION FOR CERTAIN NATURAL GAS UTILITIES

General Provisions

     NAC 704.953  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.953 to 704.9718, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.9534 to 704.9605, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A by Pub. Utilities Comm’n by R150-06, 3-23-2007; R095-08, 9-29-2008; R067-09, 11-25-2009)

      NAC 704.9534  “Base tariff general rate” defined. (NRS 703.025, 704.210)  “Base tariff general rate” means the rate determined by the Commission to collect all revenue other than revenue collected in the base tariff energy rate, as defined in NAC 704.032, the deferred energy accounting adjustment, as defined in NAC 704.037, the adjustment to the base tariff general rate to recover accumulated deferred interest, as described in NAC 704.217, the general revenue decoupling adjustment set forth in NAC 704.9718 and any rate approved by the Commission in connection with a request for approval submitted to the Commission pursuant to subsection 2 of NRS 704.185.

     (Added to NAC by Pub. Utilities Comm’n by R067-09, eff. 11-25-2009; A by R003-14, 10-24-2014)

      NAC 704.954  “Conservation” defined. (NRS 703.025, 704.210)  “Conservation” means improvements in efficiency in the production, distribution or use of energy which results in a reduction in the consumption of natural gas.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A by Pub. Utilities Comm’n by R095-08, 9-29-2008)

      NAC 704.9541  “Conservation and energy efficiency plan” defined. (NRS 703.025, 704.210)  “Conservation and energy efficiency plan” means a portfolio of conservation and energy efficiency programs to reduce consumption or improve energy efficiency in a cost-effective manner.

     (Added to NAC by Pub. Utilities Comm’n by R095-08, eff. 9-29-2008)

      NAC 704.9543  “Customer class” defined. (NRS 703.025, 704.210)  “Customer class” means the customer class categories in the rate schedules under the Nevada tariff of a gas utility.

     (Added to NAC by Pub. Utilities Comm’n by R067-09, eff. 11-25-2009)

      NAC 704.9545  “Demand” defined. (NRS 703.025, 704.210)  “Demand” means the level at which natural gas is required by a system, a part of a system or a piece of equipment, expressed in therms or other suitable units, at a given instant or averaged over any designated period.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A by Pub. Utilities Comm’n by R095-08, 9-29-2008)

      NAC 704.95455  “Energy efficiency” defined. (NRS 703.025, 704.210)  “Energy efficiency” means the use of products, services or practices aimed at the economic use of energy in end-use applications which results in a reduction in the consumption of natural gas.

     (Added to NAC by Pub. Utilities Comm’n by R095-08, eff. 9-29-2008)

      NAC 704.95457  “Equity adder methodology” defined. (NRS 703.025, 704.210)  “Equity adder methodology” means the methodology applied by a gas utility to ensure that the costs of providing service recovered by an application filed pursuant to NRS 704.110 are through an enhanced return on equity on its investment in conservation and energy efficiency programs included in the rate base.

     (Added to NAC by Pub. Utilities Comm’n by R095-08, eff. 9-29-2008)

      NAC 704.9555  “Forecast of base growth” defined. (NRS 703.025, 704.210, 704.991)  “Forecast of base growth” means a forecast of the load on a utility’s system based on normal weather conditions and the most likely set of future conditions or forces which would have an effect on that load, including, but not limited to, conservation induced by price, conservation resulting from laws and regulations and governmental programs, and conservation resulting from existing programs sponsored by utilities.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90)

      NAC 704.9557  “Forecast period” defined. (NRS 703.025, 704.210, 704.991)  “Forecast period” means the 3 gas-year period beginning with the gas year immediately following the gas year in which:

     1.  The informational report is filed; or

     2.  The resource plan is filed.

     (Added to NAC by Pub. Utilities Comm’n by R150-06, eff. 3-23-2007)

      NAC 704.9559  “Gas utility” defined. (NRS 703.025, 704.210)  “Gas utility” means a public utility under the jurisdiction of the Commission which purchases gas for resale.

     (Added to NAC by Pub. Utilities Comm’n by R095-08, eff. 9-29-2008)

      NAC 704.9561  “Gas year” defined. (NRS 703.025, 704.210, 704.991)  “Gas year” means the yearly period used by a utility in its planning process. The period may be a 1-year period beginning November 1 and ending October 31 of the subsequent calendar year, or another yearly period determined by the utility.

     (Added to NAC by Pub. Utilities Comm’n by R150-06, eff. 3-23-2007)

      NAC 704.9562  “General revenue” defined. (NRS 703.025, 704.210)  “General revenue” means the revenue collected from the base tariff general rate for the tracking period.

     (Added to NAC by Pub. Utilities Comm’n by R067-09, eff. 11-25-2009)

      NAC 704.9563  “General revenue decoupling methodology” defined. (NRS 703.025, 704.210)  “General revenue decoupling methodology” means the mechanism established pursuant to NAC 704.9716 to allow a gas utility to recover the base tariff general rate revenue without regard to the difference in the quantity of natural gas actually sold.

     (Added to NAC by Pub. Utilities Comm’n by R067-09, eff. 11-25-2009)

      NAC 704.9566  “Informational report” defined. (NRS 703.025, 704.210, 704.991)  “Informational report” means the informational report which a utility is required by NRS 704.991 to submit annually to the Commission.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A by Pub. Utilities Comm’n by R047-02, 10-24-2002; R150-06, 3-23-2007)—(Substituted in revision for NAC 704.9585)

      NAC 704.957  “Load management” defined. (NRS 703.025, 704.210, 704.991)  “Load management” means a deliberate reshaping of the customers’ patterns of use in order to shift the time of use of natural gas and reduce its consumption during the period of the utility’s peak load.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90)

      NAC 704.9575  “Major facilities for the supply of gas” defined. (NRS 703.025, 704.210, 704.991)  “Major facilities for the supply of gas” means those facilities for the production, transmission, compression or storage of natural gas, or a combination of such facilities or substitutes for such facilities, that are required to meet the demand imposed upon a utility’s system. The term includes major additions or modifications to the distribution system which are planned to maintain adequate capacity and the cost of which exceeds $10,000,000.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A by Pub. Utilities Comm’n by R150-06, eff. 3-23-2007)

      NAC 704.958  “Normal weather conditions” defined. (NRS 703.025, 704.210, 704.991)  “Normal weather conditions” means the average weather conditions for the previous 30 years or another period, if justified.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90)

      NAC 704.9587  “Sources of natural gas” defined. (NRS 703.025, 704.210, 704.991)  “Sources of natural gas” means the physical locations or regions where natural gas will be acquired or exchanged.

     (Added to NAC by Pub. Utilities Comm’n by R150-06, eff. 3-23-2007)

      NAC 704.959  “Storage facilities” defined. (NRS 703.025, 704.210, 704.991)  “Storage facilities” means facilities for storing gas for the primary purpose of balancing loads or shaving peak loads, or both.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90)

      NAC 704.9595  “Substantially accurate data” defined. (NRS 703.025, 704.210, 704.991)  “Substantially accurate data” means data:

     1.  Which a utility demonstrates has been gathered from the best sources of information available to it; or

     2.  Whose validity is inherently uncertain but whose use does not substantially contribute to the risk of incorrect conclusions.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90)

      NAC 704.9596  “Substantive conservation and energy efficiency program” defined. (NRS 703.025, 704.210)  “Substantive conservation and energy efficiency program” means, for a gas utility, a conservation and energy efficiency program included in a conservation and energy efficiency plan accepted by the Commission for which the energy savings can be demonstrated using industry standards.

     (Added to NAC by Pub. Utilities Comm’n by R095-08, eff. 9-29-2008)

      NAC 704.9597  “Total resource cost test” defined. (NRS 703.025, 704.210)  “Total resource cost test” means a measure of the overall economic efficiency of a conservation and energy efficiency program from the perspective of society which measures the net costs of a conservation and energy efficiency program based on the total costs of the program, including both participant and utility costs.

     (Added to NAC by Pub. Utilities Comm’n by R095-08, eff. 9-29-2008)

      NAC 704.9598  “Tracking period” defined. (NRS 703.025, 704.210)  “Tracking period” means the 12-month period used for a gas utility’s annual application filed pursuant to NAC 704.116.

     (Added to NAC by Pub. Utilities Comm’n by R067-09, eff. 11-25-2009; A by R003-14, 10-24-2014)

      NAC 704.960  “Unaccounted for gas” defined. (NRS 703.025, 704.210, 704.991)  “Unaccounted for gas” means the difference between the total amount of gas delivered to a utility and the total amount of gas which is used, sold, or delivered to other entities by the utility.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90)

      NAC 704.9605  “Weather at maximum design conditions” defined. (NRS 703.025, 704.210, 704.991)  “Weather at maximum design conditions” means the coldest day on record for the previous 30 years or another period, if justified.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90)

      NAC 704.9608  Adoption by reference of FERC Account No. 182.3 from Uniform System of Accounts of Federal Energy Regulatory Commission. (NRS 703.025, 704.210)  The Commission hereby adopts by reference from the Uniform System of Accounts of the Federal Energy Regulatory Commission the account identified as Other Regulatory Assets, FERC Account No. 182.3. This account is contained in 18 C.F.R. Parts 101 and 201, and the volume of the Code of Federal Regulations containing these parts may be purchased by mail from the Superintendent of Documents, United States Government Printing Office, P.O. Box 979050, St. Louis, Missouri 63197-9000, by toll-free telephone at (866) 512-1800 or on the Internet at http://bookstore.gpo.gov, for the price of $68. The volume may be accessed free of charge on the Internet at http://www.gpoaccess.gov/cfr/index.html.

     (Added to NAC by Pub. Utilities Comm’n by R095-08, eff. 9-29-2008; A by R051-09, 1-28-2010)

Informational Reports

      NAC 704.961  Submission of informational report and updates. (NRS 703.025, 704.210, 704.991)

     1.  Except as otherwise provided in subsection 2, a utility shall annually submit its informational report to the Commission:

     (a) If the utility uses deferred energy accounting, with the filing of the utility’s adjustment of its deferred energy account; or

     (b) If the utility does not use deferred energy accounting, on any date before the first day of the first gas year of the forecast period.

     2.  A utility that is subject to the provisions of NRS 704.736 to 704.754, inclusive, may annually submit its informational report to the Commission with the utility’s energy supply plan or annual evaluation submitted pursuant to NAC 704.9482.

     3.  A utility may submit updates on the status of its informational report if the utility believes that conditions warrant an update.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A by Pub. Utilities Comm’n by R150-06, 3-23-2007)

      NAC 704.9615  Comprehensive summary of informational report. (NRS 703.025, 704.210, 704.991)  Each informational report must include a comprehensive summary of the report. The summary must include, without limitation:

     1.  A brief introduction, addressed to members of the general public, describing the utility, its facilities and the purpose of the informational report;

     2.  The forecast of base growth for the forecast period;

     3.  Forecasts of sales volumes and peak demands;

     4.  Projections of price trends for natural gas;

     5.  A list that includes, without limitation:

     (a) Each major facility for the supply of gas which has been planned as an addition to the system for the forecast period, with its anticipated capacity, cost and date of initial service;

     (b) Each program for conservation and load management that the utility has chosen to implement;

     (c) The cost and impact on rates of each program for conservation and load management; and

     (d) The forecasted reduction in the utility’s load as a result of each program for conservation and load management;

     6.  An explanation of how the utility intends to acquire its supplies of gas to meet forecasted requirements, including, without limitation, strategies associated with the supplies of gas for the forecast period; and

     7.  Any other information useful in presenting a comprehensive summary of the utility’s informational report.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A by Pub. Utilities Comm’n by R150-06, 3-23-2007)

      NAC 704.963  Maps of major facilities for supply of gas and sources of natural gas. (NRS 703.025, 704.210, 704.991)  Each utility shall provide with its informational report a suitable map or maps to show its existing and planned major facilities for the supply of gas and sources of natural gas.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A by Pub. Utilities Comm’n by R150-06, 3-23-2007)

      NAC 704.964  Projection of future prices. (NRS 703.025, 704.210, 704.991)

     1.  Each informational report must contain a projection of the future price of natural gas for each of the supply basins from which the utility purchases gas for each month of the forecast period. The informational report must explain the sources and methods used to develop the projection of the future price of natural gas.

     2.  If a projection of a national service or a published forecast is adjusted on the basis of factors specific to a utility, the adjustment must be explained.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A by Pub. Utilities Comm’n by R150-06, 3-23-2007)

      NAC 704.9645  Forecasts of sales volumes and annual peak demand. (NRS 703.025, 704.210, 704.991)

     1.  A utility shall include in its informational report:

     (a) Forecasts of sales volumes under normal weather conditions for each month of the forecast period; and

     (b) Forecasts of the annual peak demand under weather at maximum design conditions.

     2.  The forecasts of sales volumes and demands described in subsection 1 must include, without limitation, an estimate of unaccounted for gas for each month of the forecast period.

     3.  To prepare the required forecasts, a utility shall:

     (a) Use substantially accurate data, incorporating to the extent necessary data available from other utilities, state and federal agencies, county agencies, universities, and other public or private sources;

     (b) Use recognized and generally accepted forecasting methods considering the availability of data;

     (c) Cite the source of demographic and economic projections upon which it relies and document the procedure by which the projections were incorporated into its forecasts; and

     (d) If any national forecasts are adjusted by using local or regional variables, explain those adjustments.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A by Pub. Utilities Comm’n by R150-06, 3-23-2007)

      NAC 704.9655  Forecast for base growth; assessments of base conservation; levels of energy savings or reduction in demand. (NRS 703.025, 704.210, 704.991)  Each informational report must include, without limitation:

     1.  A forecast for base growth;

     2.  An assessment of base conservation which includes the effects, cost and impact on rates of each program for conservation and load management that the utility has chosen to implement; and

     3.  The level of energy savings or reduction in demand from each program for conservation and load management, or both.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A by Pub. Utilities Comm’n by R150-06, 3-23-2007)

      NAC 704.966  Information regarding major facilities; consideration of options for major facilities. (NRS 703.025, 704.210, 704.991)

     1.  Each informational report must contain a list of all its existing and planned major facilities for the supply of gas which it expects to be constructing, operating or utilizing in each gas year of the forecast period.

     2.  Each informational report must contain information on the financial and economic characteristics of planned major facilities for the supply of gas. The information must include, without limitation:

     (a) The estimated costs of construction, purchases or acquisition of the rights to use the facilities;

     (b) The estimated costs of operation by gas year;

     (c) An assessment of the cost and reliability of its existing and planned major facilities for the supply of gas; and

     (d) The criteria used in determining the nature and extent of planned additions to major facilities for the supply of gas.

     3.  A utility shall consider the following options for major facilities for the supply of gas:

     (a) The expansion of transmission facilities;

     (b) The augmentation of compressor stations;

     (c) The expansion and acquisition of storage facilities;

     (d) Interconnection with other pipelines;

     (e) Developing transportation arrangements; and

     (f) Improvements in the efficiency of major facilities for the supply of gas.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A by Pub. Utilities Comm’n by R150-06, 3-23-2007)

      NAC 704.9665  Criteria for retirement of major facilities. (NRS 703.025, 704.210, 704.991)  Each informational report must include, without limitation, the criteria used in setting the dates for the retirement of its major facilities for the supply of gas and the basis for the criteria.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A by Pub. Utilities Comm’n by R150-06, 3-23-2007)

      NAC 704.9675  Discussion of alternative strategies. (NRS 703.025, 704.210, 704.991)  Each informational report must include, without limitation, a discussion of the alternative strategies the utility would pursue if any preferred resource or facility were not available as described in the informational report.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A by Pub. Utilities Comm’n by R150-06, 3-23-2007)

      NAC 704.968  Plan for supply of gas; long-term arrangements for supply, storage and transportation of gas. (NRS 703.025, 704.210, 704.991)

     1.  The informational report must include the utility’s plan for the supply of gas which must include, without limitation, a discussion of the strategies which the utility intends to implement for its supply of gas, including, without limitation, a discussion of:

     (a) The criteria used in determining the level and mix of the supply of gas planned;

     (b) The criteria used to select the sources of the supply of gas and an assessment of the reliability of each of the sources of the supply of gas;

     (c) Strategies for minimizing the cost, minimizing the retail price volatility and maximizing the reliability of the gas that the utility intends to employ for its supply of gas; and

     (d) The procedures for curtailment which will be utilized if the supply or facilities are inadequate.

     2.  The informational report must list each existing and planned long-term arrangement for the supply, storage and transportation of gas.

     3.  As used in this section, “long-term arrangement” means an agreement with a duration of 3 years or more and includes, without limitation:

     (a) Supply contracts;

     (b) Agreements for hedging the price of gas;

     (c) Agreements that involve production wells or inground reserves owned by the utility which are intended to be used as a source of supply;

     (d) Transportation agreements;

     (e) Storage agreements; and

     (f) Any other long-term arrangement that the utility determines should be considered.

     (Added to NAC by Pub. Service Comm’n, eff. 4-18-90; A by Pub. Utilities Comm’n by R150-06, 3-23-2007)

      NAC 704.9687  Order accepting informational report or specifying inadequacies. (NRS 703.025, 704.210, 704.991)  If a utility files an informational report as required pursuant to NRS 704.991, the Commission will issue an order:

     1.  Accepting the informational report as filed; or

     2.  If the informational report does not contain the information required pursuant to NRS 704.991 and NAC 704.961 to 704.9687, inclusive, specifying which portions of the informational report the Commission deems to be inadequate.

     (Added to NAC by Pub. Utilities Comm’n by R150-06, eff. 3-23-2007)

Conservation and Energy Efficiency Programs

      NAC 704.9702  Purpose; applicability. (NRS 703.025, 704.210, 704.992)

     1.  The purpose of NAC 704.9702 to 704.9718, inclusive, is to establish methods and programs to remove financial disincentives that discourage a public utility which purchases natural gas for resale from planning and implementing substantive conservation and energy efficiency programs.

     2.  The provisions of NAC 704.9702 to 704.9718, inclusive, apply to all gas utilities that are under the jurisdiction of the Commission and have a budgeted portfolio of substantive conservation and energy efficiency programs.

     (Added to NAC by Pub. Utilities Comm’n by R095-08, eff. 9-29-2008)

      NAC 704.9704  Implementation of substantive programs using equity adder methodology for cost recovery. (NRS 703.025, 704.210, 704.992)  To remove financial disincentives that discourage a public utility which purchases natural gas for resale from planning and implementing substantive conservation and energy efficiency programs, a gas utility may implement substantive conservation and energy efficiency programs using an equity adder methodology for cost recovery. In an application pursuant to NRS 704.110 to recover the costs to implement its conservation and energy efficiency plan, the gas utility must calculate its revenue requirements for program costs, as set forth in NAC 704.9714, to include them in the rate base using the most recently authorized return on equity plus 5 percent.

     (Added to NAC by Pub. Utilities Comm’n by R095-08, eff. 9-29-2008)

      NAC 704.9706  Conservation and energy efficiency plan: Submission; periodic filing; eligibility of programs to recover costs; order accepting plan or specifying inadequacies. (NRS 703.025, 704.210, 704.992)

     1.  A gas utility applying to implement a portfolio of substantive conservation and energy efficiency programs must submit a plan for acceptance by the Commission in conjunction with a general rate case filed pursuant to NRS 704.110 or in an application to implement its conservation and energy efficiency plan filed pursuant to NAC 704.9704.

     2.  Every 3 years from the date of the final order in which the gas utility’s plan was initially accepted, the utility shall file a conservation and energy efficiency plan with an application to implement its conservation and energy efficiency plan that meets the requirements of NAC 704.9704.

     3.  In the case of a gas utility which also provides electric service, the conservation and energy efficiency plan required in subsections 1 and 2 may be submitted in conjunction with the electric utility’s resource plan, as defined in NAC 704.9156.

     4.  Only substantive conservation and energy efficiency programs in a conservation and energy efficiency plan accepted by the Commission are eligible to recover costs pursuant to NAC 704.9704 and 704.9714.

     5.  Within 180 days after a gas utility has filed its conservation and energy efficiency plan, unless filed in conjunction with a general rate case, the Commission will issue an order accepting the plan as filed or specifying portions of the plan which the Commission deems to be inadequate.

     (Added to NAC by Pub. Utilities Comm’n by R095-08, eff. 9-29-2008)

      NAC 704.9708  Conservation and energy efficiency plan: Development and contents. (NRS 703.025, 704.210, 704.992)

     1.  The conservation and energy efficiency plan must include, without limitation:

     (a) An identification of end-uses for conservation and energy efficiency programs;

     (b) An assessment of the savings attributable to technically feasible conservation and energy efficiency programs, as determined by the gas utility, which must rank the programs in lists according to the level of savings in gas consumption and according to the level of reduction in demand; and

     (c) An assessment of technically feasible programs to determine which will produce benefits in peak demand or gas consumption. The gas utility shall estimate the cost of each such program. The methods used for the assessment must be stated in detail, specifically listing the data and assumptions considered in the assessment.

     2.  In developing its conservation and energy efficiency plan, a gas utility shall consider the impact of applicable new technologies on current options for the plan. The consideration of new technologies must include, without limitation, consideration of the potential impact of advances in digital technology and computer information systems.

     3.  A gas utility shall include in its conservation and energy efficiency plan a program for residential customers which reduces the consumption of gas, electricity or any fossil fuel. The energy efficiency program must include the use of new solar thermal energy sources unless the gas utility has filed an application seeking the Commission’s approval of a plan for a solar thermal program or the Commission has approved the gas utility’s plan for a solar thermal program. As used in this subsection, “new solar thermal energy sources” means those sources installed after the effective date of the energy efficiency program that displace gas, electricity or any fossil fuel consumption by using solar radiation to heat water or provide space heating or cooling.

     4.  The conservation and energy efficiency plan must include a list of the programs for which the gas utility is requesting the approval of the Commission. The list must include, without limitation:

     (a) An estimate of the reduction in the peak demand and gas consumption that would result from each proposed program, in therms saved, which lists the programs according to their expected savings and their contribution to a reduction in peak demand and gas consumption based upon realistic estimates of the penetration of the market and the average life of the programs;

     (b) An assessment of the costs of each proposed program and the savings produced by the program, including the savings in the costs of transmission and distribution if the program can be relied upon to reduce peak demand on a firm basis;

     (c) An assessment of the impact on the gas utility’s load shapes of each proposed and existing conservation and energy efficiency program;

     (d) If a program is an educational program, the projected expenses of the gas utility for the educational program;

     (e) A complete life-cycle cost analysis of the costs and benefits of the program in the form of the total resource cost test for any conservation and energy efficiency program which reduces the consumption of gas, electricity or any fossil fuel; and

     (f) A discussion of the degree of coordination between any conservation and energy efficiency program of the gas utility with an electric utility serving the same area and any potential cost savings or improvements in cost-effectiveness resulting from such coordination.

     5.  The gas utility shall include with its conservation and energy efficiency plan a report on the status of all conservation and energy efficiency programs that have been included in a plan accepted by the Commission. The report must include tables for each such program showing, for each year, the planned reduction in therms, the achieved reduction in therms and the cost of the program. The gas utility shall include other information not elsewhere required in this section as set forth in subsection 3 of NAC 704.9712.

     6.  The gas utility shall provide with its conservation and energy efficiency plan any other information necessary to enable an informed reader to examine and verify the adequacy and accuracy of the data, assumptions and methods used in developing the plan.

     7.  The gas utility shall provide with its conservation and energy efficiency plan a discussion of any change in risk for the gas utility, including, without limitation, stabilization of revenue for the gas utility.

     (Added to NAC by Pub. Utilities Comm’n by R095-08, eff. 9-29-2008; A by R003-14, 10-24-2014)

      NAC 704.9712  Annual conservation and energy efficiency plan reports and analyses. (NRS 703.025, 704.210, 704.992)

     1.  Following initial acceptance of the conservation and energy efficiency plan, the gas utility that is implementing substantive conservation and energy efficiency programs shall file annually, between filings required pursuant to subsection 2 of NAC 704.9706, its conservation and energy efficiency plan report.

     2.  The conservation and energy efficiency plan report must address each 12-month period following the acceptance of the conservation and energy efficiency plan and must be filed with the Commission:

     (a) Not later than 6 months following the anniversary of the plan filing date established pursuant to NAC 704.9706; or

     (b) In the case of a gas utility which also provides electric service, concurrent with the electric resource plan.

     3.  When filing the conservation and energy efficiency plan report, the gas utility shall include a copy of the complete analysis the gas utility used in determining, for the forthcoming year, which substantive conservation and energy efficiency programs should be implemented, continued, modified or terminated. The analysis must include, for each program, without limitation:

     (a) A description of the program;

     (b) Proposed new programs, program modifications and programs the utility requests authority to terminate;

     (c) Program goals, objectives and targets for savings;

     (d) The level of participation for the program;

     (e) A detailed description of the manner of evaluating and monitoring the program;

     (f) Verification of activities and results of savings of the program, including, without limitation, the total resource cost test results based on actual program performance;

     (g) Estimated savings, including, without limitation, estimated environmental benefits;

     (h) A description of the difficulties encountered and recommended solutions;

     (i) A detailed description of the costs incurred during the reporting period, separated by program and category, such as marketing, variable and fixed labor, variable and fixed materials and any incentive payment;

     (j) A table listing the proposed budget and proposed targets for each program for the following program year;

     (k) A table listing each project by estimated therm savings, including, without limitation, information regarding demand savings, expected life, lifetime savings, and total resource cost test cost/benefit ratio; and

     (l) Any other information necessary to enable an informed reader to examine and verify the adequacy and accuracy of the data, assumptions and methods used in developing the report.

     4.  The Commission will process the annual conservation and energy efficiency plan report and analysis within 135 days and issue an order accepting the plan as filed or specifying any portion of the report and analysis which the Commission deems to be inadequate.

     (Added to NAC by Pub. Utilities Comm’n by R095-08, eff. 9-29-2008)

      NAC 704.9714  Costs of implementing substantive programs: Accounting; recovery of costs. (NRS 703.025, 704.210, 704.992)

     1.  All costs of implementing the substantive conservation and energy efficiency programs included in a conservation and energy efficiency plan accepted by the Commission must be accounted for in the books and records of the gas utility separately from amounts attributable to any other activities. All accounts must be maintained in such a manner as will allow costs attributable to specific programs to be readily identified. These costs must be segregated into the same categories as specified in the budget for the 3-year planning period.

     2.  The gas utility may recover all just and reasonable costs for implementing substantive conservation and energy efficiency programs included in an application that the Commission has accepted either as part of the gas utility’s conservation and energy efficiency plan or as modified in the gas utility’s annual conservation and energy efficiency plan report. These costs may include, without limitation, costs for labor, overhead, materials, incentives paid to customers, advertising, marketing, measurement, verification and evaluation.

     3.  To recover costs incurred in implementing substantive conservation and energy efficiency programs, a gas utility using the equity adder methodology pursuant to NAC 704.9704 must:

     (a) Calculate, on a monthly basis, the costs incurred in implementing each program since the end of the period used to establish the amount of program costs included in the rate base in the most recent application filed by the gas utility to change general rates;

     (b) Record the total cost of implementing each program, as calculated in paragraph (a), in a separate subaccount of FERC Account No. 182.3 for each program and record an offset in the appropriate subaccount of other FERC accounts;

     (c) Maintain subsidiary records of the subaccounts of FERC Account No. 182.3 for each program which must clearly delineate all costs incurred by the gas utility in implementing each program accepted by the Commission;

     (d) Apply a carrying charge at the rate of 1/12 of the authorized overall rate of return to the current balance in the subaccounts of FERC Account No. 182.3 for each program not included in the rate base; and

     (e) Clear any balance accumulated in the subaccounts of FERC Account No. 182.3 for each program in the manner set forth in subsection 4 as a component of an application by the gas utility to change rates.

     4.  For the purposes of paragraph (e) of subsection 3, to clear a balance:

     (a) The Commission will adjust the rate to amortize the balance over a 3-year period, unless otherwise specified by the Commission;

     (b) The gas utility must begin amortizing costs on the date that the change in general rates becomes effective;

     (c) The gas utility must include the balance in the subaccounts of FERC Account No. 182.3 for each program, including carrying charges, in the rate base as of the date that ends the period used in the application filed by the gas utility pursuant to NRS 704.110; and

     (d) If calculating the revenue requirements under the equity adder methodology, the utility must base the rate of return to be applied to the balance in the subaccounts of FERC Account No. 182.3 for each program that the utility has carried out on the most recently authorized return on equity plus 5 percent.

     5.  To recover costs incurred in implementing substantive conservation and energy efficiency programs, a gas utility authorized to use the general revenue decoupling methodology pursuant to NAC 704.9716 must:

     (a) Establish and maintain separate subsidiary records of the subaccounts of FERC Account No. 182.3 for each program which must clearly delineate by month and by rate effective period all costs incurred by the gas utility in implementing each program.

     (b) At the time the gas utility files an annual application pursuant to NAC 704.116, apply to the Commission to establish the following rates:

          (1) A prospective base program cost rate which is determined by dividing the total projected cost for the rate effective period of each program by the projected therm sales for the rate effective period.

          (2) A deferred program cost rate which is determined by dividing the cumulative balance of the subaccounts of FERC Account No. 182.3 for each program as of the adjustment date, as defined in NAC 704.024, by the therm sales for the test period, as defined in NAC 704.063.

     6.  A gas utility using the general revenue decoupling methodology pursuant to NAC 704.9716 shall account for the costs incurred to implement substantive conservation and energy efficiency programs and the revenues received from the prospective base program cost rate established pursuant to subparagraph (1) of paragraph (b) of subsection 5 in the following manner:

     (a) On a monthly basis, the gas utility shall record in a subaccount of FERC Account No. 182.3 the:

          (1) Costs incurred to implement the programs;

          (2) Revenues received from the prospective base program cost rate; and

          (3) Revenues or credits received from the deferred program cost rate established pursuant to subparagraph (2) of paragraph (b) of subsection 5 for the programs or the amount refunded by the deferred program cost rate.

     (b) On a monthly basis, the gas utility shall apply a carrying charge at the rate of 1/12 of the authorized overall rate of return to the unamortized balance in the subaccounts of FERC Account No. 182.3.

     (Added to NAC by Pub. Utilities Comm’n by R095-08, eff. 9-29-2008; A by R051-09, 1-28-2010; R003-14, 10-24-2014)

      NAC 704.9716  Use of general revenue decoupling methodology in lieu of equity adder methodology. (NRS 703.025, 704.210, 704.992)

     1.  To remove financial disincentives that discourage a public utility which purchases natural gas for resale from planning and implementing substantive conservation and energy efficiency programs, a gas utility not electing to recover program costs using an equity adder methodology may seek approval from the Commission to decouple general revenue. A gas utility seeking approval from the Commission to decouple general revenue must file a request to decouple general revenue with the Commission as part of a general rate application filed pursuant to NRS 704.110. A gas utility electing to decouple general revenue must recover the costs of its substantive conservation and energy efficiency programs pursuant to subsection 5 of NAC 704.9714. If the gas utility files a request to decouple general revenue, the gas utility’s application must include a discussion identifying any change in risk for the gas utility and a calculation to adjust for the change in risk and demonstrate the impact on the current and requested rate design for the gas utility. If the Commission approves a gas utility’s request to decouple general revenue, the gas utility is not required to include a discussion identifying any change in risk associated with the approved general revenue decoupling methodology in its subsequent general rate application filed pursuant to NRS 704.110 but in determining the gas utility’s return on equity, the Commission may consider evidence concerning any change in risk associated with the approved general revenue decoupling methodology provided in the general rate application.

     2.  As part of a gas utility’s general rate case application seeking approval from the Commission to decouple general revenue, the gas utility must outline its plan to educate customers about general revenue decoupling.

     3.  In considering a request to decouple general revenue, the Commission will seek to harmonize the incentives of general revenue decoupling methodology with the rate design of the gas utility filing the request. Harmonization by the Commission will include, without limitation, the use of the information contained in the approved conservation and energy efficiency plan to modify the customer class billing determinants used to establish the base tariff general rate in the general rate application filed pursuant to NRS 704.110 that includes the request to decouple general revenue. In the initial general rate application requesting approval to decouple general rate revenues and each subsequent general rate application for which the gas utility continues to use the general revenue decoupling methodology, the gas utility must request approval to exempt any customer class from the general revenue decoupling methodology. The gas utility must apply the approved general revenue decoupling methodology to all customer classes not specifically exempted by the Commission.

     4.  To file a request to decouple general revenue, a gas utility must have an order of the Commission accepting the conservation and energy efficiency plan, with the acceptance occurring not more than 1 year before the gas utility files the request to decouple general revenue. Execution of the conservation and energy efficiency plan will be deferred until the general revenue decoupling methodology is implemented.

     5.  A gas utility’s request to discontinue the approved general revenue decoupling methodology must be included in a general rate application filed pursuant to NRS 704.110.

     (Added to NAC by Pub. Utilities Comm’n by R067-09, eff. 11-25-2009; A by R003-14, 10-24-2014)

      NAC 704.9718  Recovery or refund of deferred general revenue; general revenue decoupling adjustment rate. (NRS 703.025, 704.210, 704.992)

     1.  A gas utility authorized to use the general revenue decoupling methodology must recover or refund its deferred general revenue by applying a per therm general revenue decoupling adjustment for each applicable customer class. The general revenue decoupling adjustment rate must remain in effect until the Commission changes the rate.

     2.  The general revenue decoupling adjustment rate must be adjusted annually in an annual application filed pursuant to NAC 704.116 after the implementation of the general revenue decoupling methodology.

     3.  The general revenue decoupling adjustment rate must be calculated individually for each applicable customer class and accounted for as follows:

     (a) A separate subaccount of FERC Account No. 182.3 must be maintained for each applicable customer class, and the balance of the subaccount must be used to calculate the general revenue decoupling adjustment.

     (b) Monthly, the gas utility must calculate and record in the appropriate subaccount of FERC Account No. 182.3 the deferred general revenue. The deferred general revenue per month equals the difference between:

          (1) The monthly general revenue on a per customer basis authorized in the general rate application in which the Commission approved the request to decouple revenue or, if applicable, the subsequent change in monthly general rate revenue approved by the Commission multiplied by the number of customers billed during the period, excluding customers who discontinue service and receive a final bill during that period; and

          (2) The actual monthly general revenue.

     (c) Monthly, a credit entry or debit entry, if negative, for the amortization of the general revenue decoupling adjustment must be recorded in the subaccount of FERC Account No. 182.3. The amortization amount must be equal to the amount of revenue derived by applying the general revenue decoupling adjustment to the jurisdictional sales of the applicable customer class.

     (d) The balance of the subaccount of FERC Account No. 182.3 at the end of the tracking period adjusted pursuant to paragraph (c) must be divided by the total sales for the tracking period.

     (Added to NAC by Pub. Utilities Comm’n by R067-09, eff. 11-25-2009; A by R003-14, 10-24-2014)

GAS INFRASTRUCTURE EXPANSION RELATED TO PROGRAM OF ECONOMIC DEVELOPMENT

      NAC 704.974  Definitions. (NRS 704.9925)  As used in NAC 704.974 to 704.9758, inclusive, unless the context otherwise requires, the words and terms defined in NAC 704.9741 to 704.9752, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

      NAC 704.9741  “Alternative cost-recovery methodology” defined. (NRS 704.9925)  “Alternative cost-recovery methodology” means a public utility’s methodology for the recovery of gas infrastructure expansion costs that are not economically feasible pursuant to the public utility’s rule for the extension of facilities.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

      NAC 704.9742  “Direct benefits” defined. (NRS 704.9925)  “Direct benefits” means benefits which are quantifiable to the extent possible. Such benefits may include, without limitation, economic benefits, environmental benefits and operational efficiencies, and enhanced reliability of service that customers of a public utility which purchases natural gas for resale who are specifically targeted to be served by the program of economic development may experience as a result of the gas infrastructure expansion activity.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

      NAC 704.9743  “Gas infrastructure” defined. (NRS 704.9925)  “Gas infrastructure” means infrastructure to be used in the transportation or supply of natural gas, including, without limitation, facilities for the storage, distribution and transmission of compressed natural gas and liquefied natural gas.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

      NAC 704.9744  “Gas infrastructure expansion activity” defined. (NRS 704.9925)  “Gas infrastructure expansion activity” means the expansion of gas infrastructure within a geographic area in a manner consistent with a program of economic development.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

      NAC 704.9745  “Gas infrastructure expansion application” defined. (NRS 704.9925)  “Gas infrastructure expansion application” means an application filed by a public utility which purchases natural gas for resale seeking a determination by the Commission for:

     1.  The authorization of a gas infrastructure expansion activity; and

     2.  The recovery of gas infrastructure expansion costs.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

      NAC 704.9746  “Gas infrastructure expansion costs” defined. (NRS 704.9925)  “Gas infrastructure expansion costs” means all prudent and reasonable costs which are incurred to develop and construct a gas infrastructure expansion activity. The term does not include costs which are otherwise recovered pursuant to the public utility’s rule for the extension of facilities.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

      NAC 704.9747  “Gas infrastructure expansion rates” defined. (NRS 704.9925)  “Gas infrastructure expansion rates” means the rates established by the Commission for the purpose of collecting the revenue requirement associated with the gas infrastructure expansion costs.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

      NAC 704.9748  “Indirect benefits” defined. (NRS 704.9925)  “Indirect benefits” means benefits which are quantifiable to the extent possible. Such benefits may include, without limitation, economic benefits, environmental benefits and operational efficiencies, and enhanced reliability of service that customers of a public utility which purchases natural gas for resale who are not specifically targeted to be served by the program of economic development may experience as a result of the gas infrastructure expansion activity.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

      NAC 704.9749  “Program of economic development” defined. (NRS 704.9925)  “Program of economic development” has the meaning ascribed to it in NRS 704.9925.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

      NAC 704.975  “Revenue requirement” defined. (NRS 704.9925)  “Revenue requirement” means an amount equal to depreciation expense and carrying costs, and property taxes once the public utility which offers natural gas for resale incurs the property taxes. As used in this section:

     1.  “Carrying costs” means the return on gas infrastructure expansion costs, adjusted for accumulated depreciation and accumulated deferred income taxes, utilizing the public utility’s authorized pretax rate of return.

     2.  “Depreciation expense” means the return of gas infrastructure expansion costs utilizing the public utility’s authorized rate of depreciation.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

      NAC 704.9751  “Underserved” defined. (NRS 704.9925)  “Underserved” means a geographic area in which gas infrastructure exists but access is not economically feasible for certain households or businesses.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

      NAC 704.9752  “Unserved” defined. (NRS 704.9925)  “Unserved” means a geographic area in which no gas infrastructure or natural gas service exists.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

      NAC 704.9753  Gas infrastructure expansion application: Requirements and contents; written order by Commission. (NRS 704.9925)

     1.  A gas infrastructure expansion application must be supported by sworn testimony and must include, without limitation:

     (a) A description of the proposed gas infrastructure expansion activity.

     (b) To the extent the proposed gas infrastructure activity seeks to provide natural gas service to an unserved or underserved area, a map generally depicting the unserved or underserved area that the public utility proposes to serve, including the relationship with existing natural gas infrastructure and customers.

     (c) An estimate of costs which identifies:

          (1) The costs associated with the gas infrastructure expansion activity that are economically feasible pursuant to the public utility’s rule for the extension of facilities; and

          (2) The costs that are not economically feasible pursuant to the public utility’s rule for the extension of facilities and a description of the proposed alternative cost-recovery methodologies as required in subparagraph (1) of paragraph (f).

     (d) The estimated revenue requirement associated with the gas infrastructure expansion activity which is proposed in the application.

     (e) An explanation of how the proposed gas infrastructure expansion activity is consistent with a program of economic development, including, without limitation:

          (1) Identification of the purposes of the proposed gas infrastructure expansion activity pursuant to subsection 3 of NRS 704.9925;

          (2) Projected demand and supporting materials, as required in subparagraphs (2) and (5) of paragraph (f), for each purpose identified in subparagraph (1); and

          (3) Identification of the anticipated direct and indirect benefits, including the areas for each benefit, and an explanation of how the proposed gas infrastructure expansion activity is consistent with the purposes identified in subparagraph (1).

     (f) The analysis conducted on the feasibility of the gas infrastructure expansion activity, including, without limitation:

          (1) A detailed description of the proposed alternative cost-recovery methodologies, including, without limitation:

               (I) The estimated time period for the recovery of such costs;

               (II) The projected billing determinants to be used to establish the gas infrastructure expansion rates;

               (III) The process for determining when the timely and complete recovery of the revenue requirement has been accomplished by the public utility and the recovery of such costs will end; and

               (IV) The treatment of rates for the customers served by the gas infrastructure expansion activity when the recovery of such costs has ended;

          (2) A projection of the number of customers, natural gas usage and revenues, by class of customer and class of service, by month over the time period of the proposed alternative cost-recovery methodologies;

          (3) The efforts expended by the public utility to identify potential customers in each gas infrastructure expansion activity;

          (4) The estimated gas infrastructure expansion rates for each affected class of service;

          (5) The economic and financial justification for the gas infrastructure expansion activity; and

          (6) The mechanism that the public utility proposes to utilize to collect from customers the cost of natural gas purchased for resale to those same customers:

               (I) To whom the natural gas is sold; and

               (II) Who are receiving direct benefits as a result of the gas infrastructure expansion activity.

     2.  The Commission will, not later than 210 days after the date on which a gas infrastructure expansion application is filed, issue a written order approving, disapproving or approving subject to modifications the gas infrastructure expansion application.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

      NAC 704.9754  Utility may amend certificate of public convenience and necessity for infrastructure expansion activity; conditions. (NRS 704.9925)  In addition to satisfying the requirements of NAC 703.205, to the extent a proposed gas infrastructure expansion activity includes an area not included within the public utility’s certificated service area, the public utility may seek to amend its certificate of public convenience and necessity as part of its gas infrastructure expansion application but must satisfy the requirements of NAC 703.175.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

      NAC 704.9755  Utility applying for infrastructure expansion must provide notice to benefitting customers; contents; requirements. (NRS 704.9925)

     1.  A public utility that files a gas infrastructure expansion application pursuant to NAC 704.9753 shall provide written notice of the filing to all existing and prospective customers who may experience direct or indirect benefits as a result of the proposed gas infrastructure expansion activity. The written notice must include:

     (a) The total amount of the increase in the public utility’s revenues associated with the gas infrastructure expansion rates, stated in dollars and as a percentage;

     (b) The amount of the monthly increase in charges for each affected class of customer or class of service, stated in dollars and as a percentage;

     (c) A statement that customers may send written comments or protests regarding the gas infrastructure expansion rates to the Commission;

     (d) A statement that the gas infrastructure expansion rates will be reviewed for reasonableness and prudence in the next general rate application filed by the public utility pursuant to NRS 704.110; and

     (e) Any other information required by the Commission.

     2.  A copy of the notice must be provided to the Regulatory Operations Staff of the Commission and to the Bureau of Consumer Protection in the Office of the Attorney General.

     3.  Notice to prospective customers must be provided through the Internet website of a public utility that files a gas infrastructure expansion application and in a newspaper or newspapers of general circulation in the community where the gas infrastructure expansion activity is proposed.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

      NAC 704.9756  Adoption of alternative cost-recovery methodologies; factors for consideration by Commission; accounting standards for public utility collecting gas infrastructure expansion rate; conditions and limitations on collecting such rate. (NRS 704.9925)

     1.  A Commission order authorizing a gas infrastructure expansion activity must adopt alternative cost-recovery methodologies by establishing gas infrastructure expansion rates that allocate the revenue requirement among customers by balancing the interests of customers who will receive direct benefits and customers who will receive indirect benefits from the gas infrastructure expansion activity.

     2.  In adopting the alternative cost-recovery methodologies pursuant to subsection 1, the Commission will consider:

     (a) The costs associated with the gas infrastructure expansion activity that are economically feasible, as defined in the public utility’s rule for the extension of facilities;

     (b) The costs that are not economically feasible, as defined in the public utility’s rule for the extension of facilities;

     (c) The amounts that will be recovered from customers receiving direct benefits and customers receiving indirect benefits from the gas infrastructure expansion activity;

     (d) The timely and complete recovery of the revenue requirement by the public utility; and

     (e) The billing determinants to be used to establish the gas infrastructure expansion rates.

     3.  The public utility shall account for the difference between the revenue requirement actually incurred on the cumulative investment each month in the gas infrastructure expansion costs and the revenue collected through a gas infrastructure expansion rate as a deferred cost.

     4.  If a public utility collects all the deferred revenue requirement through a gas infrastructure expansion rate before the expiration of the time period specified in the gas infrastructure expansion application, the gas infrastructure expansion rate will terminate. A public utility may extend a gas infrastructure expansion rate beyond the time period it is proposed to be in effect if necessary to recover any deferred revenue requirement that remains uncollected. A public utility shall notify the Commission of any termination or extension of a gas infrastructure expansion rate at least 60 days before its termination or extension. The termination or extension of a gas infrastructure expansion rate is subject to approval by the Commission.

     5.  The gas infrastructure expansion rates established pursuant to this section become effective with the public utility’s first practicable quarterly rate adjustment following the in-service date of the gas infrastructure expansion activity.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

      NAC 704.9757  Commission order relating to infrastructure expansion application is not a determination of prudency of such activity; public utility shall seek determination of prudency in general rate application; requirements of application. (NRS 704.9925)

     1.  A Commission order authorizing, denying or modifying a gas infrastructure expansion application is not a determination of prudency with respect to any execution or costs of a gas infrastructure expansion activity that is authorized by the Commission and set forth in such an application.

     2.  A public utility shall seek a determination of prudency in the first general rate application filed pursuant to NRS 704.110 after the costs of each gas infrastructure expansion activity are accounted for in gas infrastructure expansion rates. In the general rate application, the public utility shall submit evidence in support of the recorded cost for each gas infrastructure expansion activity completed since the last general rate application filed by the public utility, including, without limitation:

     (a) Each invoice for gas infrastructure expansion costs, including invoices segregated at the project level if blanket contracts or invoices were used by the public utility;

     (b) Each work order for the gas infrastructure expansion activity, including work orders segregated at the project level if blanket contracts or work orders were used by the public utility;

     (c) An accounting of the labor performed by outside contractors and the public utility for the gas infrastructure expansion activity undertaken; and

     (d) Any other evidence which demonstrates that the incurred costs of the gas infrastructure expansion activity were prudent, just and reasonable.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

      NAC 704.9758  Utility required to file annual report with Commission; contents; termination of requirement. (NRS 704.9925)

     1.  A public utility shall, on an annual basis, file with the Commission a status report for each gas infrastructure expansion activity that is authorized by the Commission. A status report filed pursuant to this subsection must include, without limitation:

     (a) The actual billing determinants and a comparison of those billing determinants to the projected billing determinants used to establish the gas infrastructure expansion rates;

     (b) The actual revenues received from customers and a comparison of those revenues to the projected revenues;

     (c) The actual gas infrastructure expansion costs and a comparison of those costs to the projected gas infrastructure expansion costs;

     (d) An updated projection of all billing determinants, revenues and costs; and

     (e) A calculation of the public utility’s earned rate of return for the 12-month period ending on the last month of the most recently completed calendar quarter.

     2.  A public utility’s obligation to file status reports with the Commission pursuant to subsection 1 terminates when the revenue requirement associated with the gas infrastructure expansion activity has been fully recovered by the utility.

     (Added to NAC by Pub. Utilities Comm’n by R116-15, eff. 4-4-2016)

UTILITY SERVICE PROVIDED TO MOBILE HOME PARKS

      NAC 704.980  Definitions. (NRS 703.025, 704.210)  As used in NAC 704.980 to 704.991, inclusive, unless the context otherwise requires:

     1.  “Alternative seller” has the meaning ascribed to it in NRS 704.994.

     2.  “Landlord” has the meaning ascribed to it in NRS 118B.014.

     3.  “Mobile home park” has the meaning ascribed to “manufactured home park” in NRS 118B.017.

     4.  “Service charge” means the portion of a bill for utility service which is a fixed amount regardless of the quantity used.

     5.  “Utility” has the meaning ascribed to it in NRS 704.905.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A by Pub. Utilities Comm’n by R156-01, 1-28-2002)

      NAC 704.981  “Common area” interpreted. (NRS 703.025, 704.210, 704.940)  For the purposes of NRS 704.940 and NAC 704.980 to 704.991, inclusive, “common area” means any area in a mobile home park which is not rented or leased by a tenant of the park for his or her exclusive occupancy and use.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A by Pub. Utilities Comm’n by R156-01, 1-28-2002)

      NAC 704.982  Lines and equipment: Adoption of federal safety standards; reporting of recommendations resulting from examination and testing. (NRS 703.025, 704.210, 704.920)

     1.  For the purposes of NRS 704.920, the Commission hereby adopts the safety standards for the maintenance, use and operation of lines and equipment for distributing electricity and gas within a mobile home park which are adopted by reference in NAC 704.450 and 704.460.

     2.  The person who conducts the examination and testing pursuant to NRS 704.920 shall include in the report to the Commission any recommendations he or she has as a result of the examination and testing.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91)

      NAC 704.983  Service charge: Deposit and use of money received; disposition of interest. (NRS 703.025, 704.210, 704.940)

     1.  If the landlord of a mobile home park assesses and collects from his or her tenants a service charge for gas or electric service pursuant to subsection 5 of NRS 704.940, the landlord shall deposit the money for each type of utility service in a separate interest-bearing account in a financial institution which is insured by the Federal Government or in any other type of separate account approved by the Commission upon a petition requesting such approval which is filed by the landlord pursuant to NAC 703.540. The landlord shall:

     (a) Retain for at least 3 years each statement issued to the landlord by the institution for each such account; and

     (b) Keep the money for the service charges in the separate account and expend it only for the purposes set forth in NRS 704.940.

     2.  Any interest earned on the money kept in the separate account must be retained in that account and may be expended:

     (a) In the manner statutorily authorized for expenditure of the principal; and

     (b) Only for expenses relating to the utility service for which the money was collected.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A by Pub. Utilities Comm’n by R156-01, 1-28-2002; R076-12, 11-1-2012)

      NAC 704.984  Service charge: Approval required for withdrawal; application for approval; notice of application. (NRS 703.025, 704.210, 704.940)

     1.  If the landlord of a mobile home park assesses and collects from his or her tenants a service charge for gas or electric service pursuant to subsection 5 of NRS 704.940, the landlord shall not withdraw money from the account in which it is deposited without the prior written approval of the Commission. The landlord may apply for approval to withdraw money from the account by filing an application with the Commission. The application must include:

     (a) A statement of the manner in which the landlord intends to use the money;

     (b) A statement setting forth the estimated or actual costs of:

          (1) The federal income taxes which must be paid as a result of the collection of the service charge; or

          (2) Preventive maintenance or for repairing or replacing utility lines or equipment;

     (c) A statement setting forth the steps taken by the landlord to ensure that the costs set forth in paragraph (b) are reasonable;

     (d) A statement of the amount of any bids which were obtained;

     (e) A copy of the most recent statement for the account issued by the financial institution in which the money is deposited showing the current balance in the account;

     (f) A statement of the estimated balance in the account if the Commission approves the application;

     (g) A statement of the manner in which the landlord will pay the costs of any repairs or replacements which exceed the balance in the account; and

     (h) A copy of the notice that will be provided to the tenants as required by subsection 3.

     2.  The minimum amount of a request for withdrawal from the account is $500 unless the landlord receives authorization from the Commission to request a smaller amount. The landlord may aggregate costs of less than $500 in an application.

     3.  The landlord shall send written notice to his or her tenants of the application for permission to withdraw money from the account. The notice must:

     (a) Accompany the first bill for utility service delivered to the tenants after the application is submitted to the Commission;

     (b) Include an explanation of the manner in which the landlord intends to use the money;

     (c) Include a general explanation of the manner in which the landlord is required to collect, deposit and disburse the money that the landlord assesses and collects from the tenants as a service charge;

     (d) Include a statement that the money may be used only for federal income taxes which must be paid as a result of the collection of the service charge, for preventive maintenance or for repairing or replacing utility lines or equipment;

     (e) State the balance in the account as it appears on the statement issued by the financial institution which is included in the application for permission to withdraw money;

     (f) State the amount of money the landlord has requested permission to withdraw; and

     (g) Include a statement that the notice is not an increase in rent or service charge.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A by Pub. Utilities Comm’n by R156-01, 1-28-2002)

      NAC 704.985  Determination of charge to tenants for utility service when landlord is billed by utility or alternative seller. (NRS 703.025, 704.210, 704.940)

     1.  In a mobile home park where the landlord is billed by a water, gas or electric utility or an alternative seller and in turn charges the tenants for the utility service provided by the utility or alternative seller, and the park:

     (a) Is equipped with individual meters for each lot, the landlord shall, unless authorized by the Commission to use a comparable method, determine the charge to each tenant for each billing cycle in the following manner:

          (1) The total bill from the utility or alternative seller for the park, less any service charge stated on the bill, must be divided by the commodity billing units stated on the bill to determine the rate per unit of service for the billing cycle. The rate per unit of service must be multiplied by the number of comparable units used by each tenant based on a reading of the individual meter of the tenant. The product is the total amount the landlord may charge each tenant for the use of the utility service.

          (2) Any service charge stated on the bill from the utility or alternative seller must be divided by the number of tenants who use the utility service to determine the prorated share of each tenant for the service charge.

          (3) The maximum amount of the charge to each tenant for gas and electric service is the sum of:

               (I) The charge for the use of the utility service;

               (II) The prorated share of each tenant for any service charge stated on the bill from the utility or alternative seller; and

               (III) Any additional service charge that the landlord assesses and collects pursuant to subsection 5 of NRS 704.940.

          (4) The maximum amount of the charge to each tenant for water service is the sum of:

               (I) The charge for the use of the utility service; and

               (II) The prorated share of each tenant for any service charge stated on the bill from the utility.

     (b) Is not equipped with individual meters for each lot, the landlord shall determine the charge to each tenant for each billing cycle by subtracting from the total amount of the bill from the utility or alternative seller for the park the cost, to the extent it can be determined, of the utility service provided to the common areas of the park and prorating the remainder of the bill equally among the tenants of the park. If the landlord assesses and collects a service charge for electric or gas service pursuant to subsection 5 of NRS 704.940, the service charge may be added to the prorated share of each tenant to determine the total charge to each tenant for the utility service.

     2.  As used in this section, “commodity billing unit” means the unit used to measure the quantity of utility service provided by a utility or an alternative seller to the landlord of a mobile home park and by the landlord to his or her tenants. The unit for:

     (a) Electric service is kilowatt-hour.

     (b) Gas service is therm.

     (c) Water service is gallon or cubic feet.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A by Pub. Utilities Comm’n by R156-01, 1-28-2002)

      NAC 704.986  Maintenance of records by landlord. (NRS 703.025, 704.210, 704.940)

     1.  If a utility or an alternative seller provides a utility service to a mobile home park and the landlord of the park charges his or her tenants for that utility service, the landlord shall maintain accurate records of:

     (a) Any change in ownership of the park;

     (b) All maintenance performed on the utility system by the landlord;

     (c) Any surveys performed to detect gas leaks in the park;

     (d) The qualifications of any maintenance personnel who are employed by the landlord to repair the gas system;

     (e) The charges that the landlord is assessed by the utility or alternative seller each billing cycle and the charges that the landlord assesses and collects each billing cycle from the tenants for utility service;

     (f) The number of tenants who receive each type of utility service each billing cycle; and

     (g) A map and a detailed explanation of the configuration and location of the distribution system of the utility system.

     2.  The landlord shall retain the records required by:

     (a) Paragraphs (a), (b), (e) and (f) of subsection 1 for at least 3 years; and

     (b) Paragraphs (c), (d) and (g) of subsection 1 for the period specified in the federal regulations adopted by reference in NAC 704.460.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A by Pub. Utilities Comm’n by R156-01, 1-28-2002)

      NAC 704.987  Annual report: Filing; contents. (NRS 703.025, 704.210, 704.960)

     1.  The annual report to the Commission required by NRS 704.960 must be submitted on a form provided by the Commission and contain:

     (a) A summary of the expenditures and collections of the landlord for utility services.

     (b) If the landlord assesses and collects from his or her tenants a service charge for gas or electric service pursuant to subsection 5 of NRS 704.940, a detailed statement of each service charge that the landlord assesses and collects from the tenants and the expenditures that the landlord makes from the separate account for each service charge during the period of the report.

     (c) If the landlord assesses and collects from the tenants a late charge for any delinquency in paying for utility services, a description of the method of calculation of such late charges.

     2.  The report must cover a calendar year and be filed with the Commission not later than March 30th of the following year.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A by Pub. Utilities Comm’n by R156-01, 1-28-2002)

      NAC 704.988  Assessment and collection of late charge. (NRS 703.025, 704.210, 704.940)  If a utility or an alternative seller provides a utility service to a mobile home park and the landlord of the park charges his or her tenants for that utility service, the landlord may assess and collect from a tenant of the park a late charge for any delinquency of the tenant in paying for the utility service. The amount of the late charge must not be more than the tenant would be required to pay the utility or alternative seller for the same delinquency.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A by Pub. Utilities Comm’n by R156-01, 1-28-2002)

      NAC 704.989  Notice of proposed increase in utility rates; notice of increase in charge for service. (NRS 703.025, 704.210, 704.930)

     1.  If the landlord of a mobile home park is required to give notice to his or her tenants of a proposed increase in the rates of a utility service pursuant to NRS 704.930, the notice must include:

     (a) The current rate that the utility or alternative seller charges the park for the utility service;

     (b) The rate that the utility or alternative seller proposes to charge the park for the utility service;

     (c) The name and address of the utility or alternative seller; and

     (d) If a public utility provides the utility service to the park, a statement that each public utility is required to file an application for a change in tariff with the Commission and that this information can be obtained from the Commission and the public utility.

     2.  If the landlord increases the charge to the tenants for the utility service, the landlord shall notify the tenants of the increase with the first bill for the utility service that is delivered to the tenants after the increase is effective.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A by Pub. Utilities Comm’n by R156-01, 1-28-2002)

      NAC 704.990  Refunds to tenants and former tenants. (NRS 703.025, 704.210, 704.940)

     1.  Except as otherwise provided in subsection 2, if the landlord of a mobile home park owes a tenant or former tenant a refund for a utility deposit paid by the tenant or former tenant or a refund for the overpayment of a utility bill by the tenant or former tenant, the refund and any interest required pursuant to subsection 3:

     (a) Must accompany or be accounted for on the first bill for the utility service that is delivered to the tenant or former tenant after the landlord has notice of the overpayment or the need for a refund of the deposit; or

     (b) If the tenant or former tenant is no longer being billed for the utility service, must be sent to the current mailing address of the tenant or former tenant after the landlord has notice of the overpayment or the need for a refund of the deposit.

     2.  If the landlord owes a tenant or former tenant such a refund, but does not know the current mailing address of the tenant or former tenant, the landlord shall:

     (a) If the refund relates to gas or electric service and the landlord collects from his or her tenants a service charge for that utility service pursuant to subsection 5 of NRS 704.940, deposit the refund and any interest required pursuant to subsection 3 in the separate account established for the type of utility service to which the refund is related.

     (b) If the refund relates to water service or if the refund relates to gas or electric service and the landlord does not assess and collect from the tenants a service charge for that utility service pursuant to subsection 5 of NRS 704.940, apportion the refund equally among the tenants of the mobile home park unless otherwise authorized by the Commission. Each tenant’s share of the refund and any interest required pursuant to subsection 3 must accompany or be accounted for on the first bill for the utility service that is delivered to the tenants after the landlord has notice of the overpayment or the need for a refund of the deposit.

     3.  In addition to any refund required pursuant to subsection 1 or 2, the landlord shall pay the tenant or former tenant or, if applicable, shall deposit in the separate account or apportion equally among the tenants of the mobile home park, interest at the rate provided in NRS 704.655. The interest accrues from the date of the overpayment or the date of the receipt of the deposit until the date the tenant or former tenant receives the refund or the landlord deposits the refund in the separate account or apportions the refund equally among the tenants of the mobile home park.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A by Pub. Utilities Comm’n by R156-01, 1-28-2002)

      NAC 704.991  Termination of landlord’s interest in mobile home park: Duty of landlord to file evidence of transfer of money in certain accounts. (NRS 703.025, 704.210, 704.940)  A landlord whose interest in a mobile home park is terminated for any reason shall file with the Commission, not later than 45 days after the termination, evidence that the landlord completed the transfer required by subsection 10 of NRS 704.940.

     (Added to NAC by Pub. Service Comm’n, eff. 1-11-91; A by Pub. Utilities Comm’n by R156-01, 1-28-2002)