Assembly Bill No. 255

Assembly Bill No. 255-Committee on Government Affairs

March 12, 1997
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Referred to Committee on Government Affairs

SUMMARY--Revises service obligation of public utility that supplies natural gas. (BDR 58-1284)

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; providing that a utility which supplies natural gas is not obligated to provide service in certain circumstances; 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. Chapter 704 of NRS is hereby amended by adding thereto a new section to read as follows:
A utility that supplies natural gas in this state is not obligated to provide sales gas service to a customer within its service area who has continuously for the previous 3 months obtained its own supply of natural gas from a supplier other than the utility or obtained pipeline capacity other than from the utility unless:
1. The failure to provide service would create an imminent threat to the health and safety of the public; or
2. The customer has entered into a contract with the utility pursuant to which the utility will resume service upon the request of the customer.
Sec. 2. NRS 704.390 is hereby amended to read as follows:
704.390 1. [It shall be] Except as otherwise provided in section 1 of this act, it is unlawful for any public utility to discontinue, modify or restrict service to any city, town, municipality, community or territory theretofore serviced by it, except upon 30 days' notice filed with the commission, specifying in detail the character and nature of the discontinuance or restriction of the service intended, and upon order of the commission, made after hearing, permitting such discontinuance, modification or restriction of service.
2. The commission in its discretion and after investigation, may dispense with the hearing on the application for discontinuance, modification or restriction of service, if, upon the expiration of the time fixed in the notice thereof, no protest against the granting of the application has been filed by or on behalf of any interested person.