Assembly Bill No. 351-Committee on Government Affairs
April 10, 1997
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Referred to Committee on Government Affairs
SUMMARY--Requires adoption by public service commission of Nevada of regulations necessary to establish alternative plan of regulation of public utilities that supply natural gas. (BDR 58-919)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: Yes.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to public utilities; requiring the public service commission of Nevada to adopt an alternative plan of regulation of public utilities that supply natural gas; providing under certain circumstances for the exemption from regulation of certain services; requiring the commission to report to the legislature concerning the alternative plan of regulation; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
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Section 1 Chapter 704 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Upon the receipt of a specific request for an exemption by a public utility that supplies natural gas, the commission may, to the extent it deems reasonable, exempt any service offered by the public utility from the strict application of one or more provisions of this chapter, upon a determination after a hearing, that the service is competitive, discretionary or commercially viable.
2. The commission shall adopt regulations necessary to establish an alternative plan of regulation of a public utility that supplies natural gas and that is otherwise subject to regulation pursuant to this chapter. The alternative plan may include, but is not limited to, provisions that:
(a) Allow adjustment of the rates charged by the public utility during the period in which the utility elects the alternative plan of regulation.
(b) Specify the provisions of this chapter that do not apply to a public utility which elects to be regulated under the alternative plan.
(c) Provide for flexibility of pricing for services that are discretionary, competitive or commercially viable.
3. A public utility that elects to be regulated under the alternative plan established pursuant to this section is not subject to the remaining provisions of this chapter to the extent specified pursuant to this section.
4. If a person or governmental entity which is not regulated by the commission offers a service or package of services for the supply of natural gas that is the same as or similar to a service or package of services offered by a public utility which is regulated by the commission, the commission shall exempt the service or package of services from regulation by the commission.
Sec. 2 NRS 704.640 is hereby amended to read as follows:
704.640 Any person who:
1. Operates any public utility to which NRS 704.005 to 704.751, inclusive, and section 1 of this act, applies without first obtaining a certificate of public convenience and necessity or in violation of its terms;
2. Fails to make any return or report required by NRS 704.005 to 704.751, inclusive, and section 1 of this act, or by the commission pursuant to NRS 704.005 to 704.751, inclusive [;] , and section 1 of this act;
3. Violates, or procures, aids or abets the violating of , any provision of NRS 704.005 to 704.751, inclusive [;] , and section 1 of this act;
4. Fails to obey any order, decision or regulation of the commission;
5. Procures, aids or abets any person in his failure to obey the order, decision or regulation; or
6. Advertises, solicits, proffers bids or otherwise holds himself out to perform as a public utility in violation of any of the provisions of NRS 704.005 to 704.751, inclusive, and section 1 of this act,
shall be fined not more than $500.
Sec. 3 The public service commission of Nevada shall, on or before:
1. July 1, 1998, adopt the regulations required by section 1 of this act.
2. February 1, 1999, submit a written report concerning the alternative plan of regulation adopted pursuant to section 1 of this act, including the names of the public utilities which supply natural gas that have elected to operate under the alternative plan, to the director of the legislative counsel bureau for transmittal to the 70th session of the legislature.
3. February 1, 2001, submit a written report concerning the alternative plan and any recommendations for legislation to the director of the legislative counsel bureau for transmittal to the 71st session of the legislature.