(REPRINTED WITH ADOPTED AMENDMENTS) SECOND REPRINT
Assembly Bill No. 254-Committee on Government Affairs
March 12, 1997
____________
Referred to Committee on Government Affairs
SUMMARY--Revises certain provisions relating to public utilities. (BDR 58-1283)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to public utilities; revising the requirements of a utility that supplies natural gas to report to the public service commission of Nevada; revising the provisions of the Utility Environmental Protection Act relating to an application for and approval of a permit for a utility facility; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. NRS 704.110 is hereby amended to read as follows:
704.110 Except as otherwise provided in NRS 704.075 or as otherwise provided by the commission pursuant to NRS 704.095 or 704.097:
1. Whenever there is filed with the commission any schedule stating a new or revised individual or joint rate, fare or charge, or any new or revised individual or joint regulation or practice affecting any rate, fare or charge, or any schedule resulting in a discontinuance, modification or restriction of service, the commission may, upon complaint or upon its own motion without complaint, at once, without answer or formal pleading by the interested utility, investigate or, upon reasonable notice, conduct a hearing concerning the propriety of the rate, fare, charge, classification, regulation, discontinuance, modification, restriction or practice.
2. Pending the investigation or hearing and the decision thereon, the commission, upon delivering to the utility affected thereby a statement in writing of its reasons for the suspension, may suspend the operation of the schedule and defer the use of the rate, fare, charge, classification, regulation, discontinuance, modification, restriction or practice, but not for more than 150 days beyond the time when the rate, fare, charge, classification, regulation, discontinuance, modification, restriction or practice would otherwise go into effect.
3. Whenever there is filed with the commission any schedule stating an increased individual or joint rate, fare or charge for service or equipment, the public utility shall submit with its application a statement showing the recorded results of revenues, expenses, investments and costs of capital for its most recent 12 months for which data were available when the application was prepared. During any hearing concerning the increased rates, fares or charges determined by the commission to be necessary, the commission shall consider evidence in support of the increased rates, fares or charges based upon actual recorded results of operations for the same 12 months, adjusted for increased revenues, any increased investment in facilities, increased expenses for depreciation, certain other operating expenses as approved by the commission and changes in the costs of securities which are known and are measurable with reasonable accuracy at the time of filing and which will become effective within 6 months after the last month of those 12 months, but no new rates, fares or charges may be placed into effect until the changes have been experienced and certified by the utility to the commission. The commission shall also consider evidence supporting expenses for depreciation, calculated on an annual basis, applicable to major components of the public utility's plant placed into service during the recorded test period or the period for certification as set forth in the application. Adjustments to revenues, operating expenses and costs of securities must be calculated on an annual basis. Within 90 days after the filing with the commission of the certification required in this subsection, or before the expiration of any period of suspension ordered pursuant to subsection 2, whichever time is longer, the commission shall make such order in reference to those rates, fares or charges as is required by this chapter.
4. After full investigation or hearing, whether completed before or after the date upon which the rate, fare, charge, classification, regulation, discontinuance, modification, restriction or practice is to go into effect, the commission may make such order in reference to the rate, fare, charge, classification, regulation, discontinuance, modification, restriction or practice as would be proper in a proceeding initiated after the rate, fare, charge, classification, regulation, discontinuance, modification, restriction or practice has become effective.
5. Whenever an application is filed by a public utility for an increase in any rate, fare or charge based upon increased costs in the purchase of fuel or power, and the public utility has elected to use deferred accounting for costs of the purchase of fuel or power in accordance with the commission's regulations, the commission, by appropriate order after a public hearing, shall allow the public utility to clear the deferred account not more often than every 6 months by refunding any credit balance or recovering any debit balance over a period not to exceed 1 year as determined by the commission. The commission shall not allow a recovery of a debit balance or any portion thereof in an amount which would result in a rate of return in excess of the rate of return most recently granted the public utility.
6. Except as otherwise provided in subsection 7 or in NRS 707.350, whenever a general rate application for an increased rate, fare or charge for, or classification, regulation, discontinuance, modification, restriction or practice involving service or equipment has been filed with the commission, a public utility shall not submit another general rate application until all pending general rate applications for increases in rates submitted by that public utility have been decided unless, after application and hearing, the commission determines that a substantial financial emergency would exist if the other application is not permitted to be submitted sooner.
7. A public utility may not file an application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale more often than once every 30 days.
8. A utility facility identified in a 3-year plan submitted pursuant to NRS 704.741 [or 704.755] and accepted by the commission for acquisition or construction pursuant to NRS 704.751 [or 704.755] and the regulations adopted pursuant thereto shall be deemed to be a prudent investment. The utility may recover all just and reasonable costs of planning and constructing such a facility. [For the purposes of] As used in this subsection, "utility facility" has the meaning ascribed to it in subsections 1 [, 2 and 3] and 2 of NRS 704.860.
Sec. 2. NRS 704.755 is hereby amended to read as follows:
704.755 [1.] A utility which supplies natural gas in this state shall [, periodically, as] file annually with the commission, in a format prescribed by the commission, [submit to the commission a plan] an informational report which describes:
[(a)] 1. The anticipated demand for natural gas made on its system by its customers;
[(b)] 2. The estimated cost of supplying natural gas sufficient to meet the demand and the means by which the utility proposes to minimize that cost; [and
(c)] 3. The sources of planned acquisitions of natural gas, including an estimate of the cost and quantity of the acquisitions to be made from each source and an assessment of the reliability of the source [.
2. The commission shall, by regulation, provide for the procedure and schedule for and the contents and method of preparing, reviewing and approving the plan.
3. The costs of preparing the plan are allowable expenses of the utility for the purpose of establishing rates. The commission may provide for the timely recovery of those costs.
4. The application of this section is limited to any public utility in the business of supplying natural gas which has an annual operating revenue in this state of $10,000,000 or more.] ; and
4. Significant operational or capital requirements of the utility related to its provision of gas service in this state.
Sec. 3. NRS 704.825 is hereby amended to read as follows:
704.8251. The legislature hereby finds and declares that:
(a) There is at present and will continue to be a growing need for electric, gas, telephone, telegraph and water services which will require the construction of new facilities. It is recognized that such facilities cannot be built without in some way affecting the physical environment where such facilities are located.
(b) It is essential in the public interest to minimize any adverse effect upon the environment and upon the quality of life of the people of the state which such new facilities might cause.
(c) Present laws and practices relating to the location of such utility facilities should be strengthened to protect environmental values and to take into account the total cost to society of such facilities.
(d) Existing provisions of law may not provide adequate opportunity for natural persons, groups interested in conservation and the protection of the environment, state and regional agencies, local governments and other public bodies to participate in [any and all proceedings before the public service commission of Nevada] proceedings regarding the location and construction of major facilities.
2. The legislature, therefore, hereby declares that it is the purpose of NRS 704.820 to 704.900, inclusive, to provide a forum for the expeditious resolution of all matters concerning the location and construction of electric, gas, telephone, telegraph and water transmission lines and associated facilities.
Sec. 4. NRS 704.850 is hereby amended to read as follows:
704.850"Person" includes a natural person, corporation, partnership, public utility, government, [a] governmental agency , [and a] political subdivision of a government [.] and any other entity that seeks to construct a utility facility.
Sec. 5. NRS 704.855 is hereby amended to read as follows:
704.8551. "Public utility" or "utility" includes those public utilities defined in NRS 704.020 and not excluded by NRS 704.030 and any oil pipeline carrier described and regulated under chapter 708 of NRS.
2. ["Public utility" also includes any corporation which:
(a) Is a parent or an affiliated corporation of a public utility or a subsidiary of that parent or affiliated corporation; and
(b) Owns, independently or in combination with any other public utility, a one-third interest in a utility facility.
3.] "Public utility" does not include plants or equipment used to generate electrical energy that is wholly consumed on the premises of and by the producer thereof.
Sec. 6. NRS 704.870 is hereby amended to read as follows:
704.8701. A [public utility which] person who applies for a permit must file with the commission an application, in such form as the commission prescribes, containing:
(a) A description of the location and of the utility facility to be built thereon;
(b) A summary of any studies which have been made of the environmental impact of the facility;
(c) A statement explaining the need for the facility; and
(d) A description of any reasonable alternate location or locations for the proposed facility, a description of the comparative merits or detriments of each location submitted, and a statement of the reasons why the primary proposed location is best suited for the facility . [;
(e) A summary of the examination of conservation measures and alternative sources of energy which was made before the construction of a facility using fossil fuel; and
(f) Such other information as the applicant may consider relevant or as the commission may by regulation or order require.]
A copy or copies of the studies referred to in paragraph (b) must be filed with the commission and be available for public inspection.
2. [A person who is not a public utility and who applies for a permit must file with the commission an application, in such form as the commission prescribes, containing:
(a) A description of the location and of the utility facility to be built thereon;
(b) A summary of any studies which have been made of the environmental impact of the facility; and
(c) Such other information as the applicant may consider relevant.
3.] A copy of the application must be filed with the administrator of the division of environmental protection of the state department of conservation and natural resources.
[4.] 3. Each application must be accompanied by:
(a) Proof of service of a copy of the application on the clerk of each local government in the area in which any portion of the facility is to be located, both as primarily and as alternatively proposed; and
(b) Proof that public notice thereof was given to persons residing in the municipalities entitled to receive notice [under] pursuant to paragraph (a) by the publication of a summary of the application in newspapers published and distributed in the area in which the utility facility is proposed to be located.
Sec. 7. NRS 704.885 is hereby amended to read as follows:
704.8851. The parties to a permit proceeding include:
(a) The applicant.
(b) The division of environmental protection of the state department of conservation and natural resources.
(c) Each local government entitled to receive service of a copy of the application [under subsection 4] pursuant to subsection 3 of NRS 704.870, if it has filed with the commission a notice of intervention as a party, within [45] 30 days after the date it was served with a copy of the application.
(d) Any person residing in a local government entitled to receive service of a copy of the application [under subsection 4] pursuant to subsection 3 of NRS 704.870, if such a person has petitioned the commission for leave to intervene as a party within [45] 30 days after the date of the published notice and if the petition has been granted by the commission for good cause shown.
(e) Any domestic nonprofit corporation or association, formed in whole or in part to promote conservation of natural beauty, to protect the environment, personal health or other biological values, to preserve historical sites, to promote consumer interests, to represent commercial and industrial groups, or to promote the orderly development of the areas in which the facility is to be located, if it has filed with the commission a notice of intent to be a party within [45] 30 days after the date of the published notice.
2. Any person may make a limited appearance in the proceeding by filing a statement of position within [45] 30 days after the date of the published notice. A statement filed by a person making a limited appearance becomes part of the record. No person making a limited appearance has the right to present oral testimony or cross-examine witnesses.
3. The commission may, for good cause shown, grant a petition for leave to intervene as a party to participate in subsequent phases of the proceeding, filed by a municipality, government agency, person or organization who is identified in paragraph (c), (d) or (e) of subsection 1, but who failed to file in a timely manner a notice of intervention, a petition for leave to intervene or a notice of intent to be a party, as the case may be.
Sec. 8. NRS 704.890 is hereby amended to read as follows:
704.8901. [The] Within 150 days after a person has filed an application for a permit, the commission shall render a decision upon the record either granting or denying the application as filed, or granting it upon such terms, conditions or modifications of the construction, operation or maintenance of the utility facility as the commission deems appropriate.
2. The commission may not grant a permit for the construction, operation and maintenance of a utility facility, either as proposed or as modified by the commission, to a [public utility] person unless it finds and determines:
(a) The basis for the need of the facility;
(b) The nature of the probable effect on the environment;
(c) That the facility represents the minimum adverse effect on the environment, considering the state of available technology and the nature and economics of the various alternatives [, and other pertinent considerations;] ; and
(d) That the location of the facility as proposed conforms to applicable state and local laws and regulations issued thereunder . [;
(e) That the facility will serve the public interest; and
(f) That if the facility or a part thereof is intended to meet the requirements of customers in this state for electricity, it is included in the utility's plan to increase its supply of electricity or decrease the demands made on its system by its customers.
3. The commission may not grant a permit for the construction, operation and maintenance of a utility facility, either as proposed or as modified by the commission, to a person other than a public utility unless it finds and determines:
(a) The nature of the probable environmental impact; and
(b) That the location of the facility as proposed conforms to applicable state and local environmental laws and regulations issued thereunder.
4.] 3. If the commission determines that the location of all or a part of the proposed facility should be modified, it may condition its permit upon such a modification.
[5.] 4. A copy of the order and any opinion issued with it must be served upon each party.
[6.] 5. The commission may require that any person applying for a permit to construct a plant for generating electrical energy offer the energy or capacity of the project to all public utilities in this state which primarily serve retail customers. If the offer is declined, the applicant may export the capacity of the project. If less than 50 percent of the capacity of such a project sold during its first 156 months of commercial operation is sold to public utilities in this state, the applicant shall reoffer the capacity of the project to all public utilities in this state. This reoffer must provide an opportunity to purchase energy or capacity at fair market value and ensure that 50 percent of the total capacity of the project is available to public utilities in this state. Any purchase of energy or capacity as a result of the reoffer is effective 84 months after the execution of the contracts of purchase.
Sec. 9. NRS 704.891 is hereby amended to read as follows:
704.891Any person other than a public utility who receives a permit pursuant to subsection [3] 2 of NRS 704.890 shall, on or before the date on which construction of a utility facility is commenced and on a date no later than 12 months before the scheduled date of commercial operation of that facility, file with the commission reports which contain:
1. The location, nature and capacity of that facility;
2. The anticipated date for commercial operation of that facility;
3. Information regarding whether any public utility in this state has contracted for the purchase of the capacity or other services of that facility; and
4. Information regarding whether any capacity or other services of that facility is available for purchase by public utilities in this state.
Sec. 10. 1. This section and sections 1 to 5, inclusive, 8 and 9 of this act become effective on July 1, 1997.
2. Sections 6 and 7 of this act become effective at 12:01 a.m. on July 1, 1997.