AB32_EN

Assembly Bill No. 32–Committee on Commerce and Labor

CHAPTER..........

AN ACT relating to energy; prohibiting the disclosure of certain information concerning alternative sellers, providers of discretionary natural gas service and providers of new electric resources; requiring certain public utilities, alternative sellers, providers of discretionary natural gas service and providers of new electric resources to keep uniform and detailed accounts of all applicable business transacted in this state and to furnish an annual report to the Commission and affected governmental entities; imposing a civil penalty against an alternative seller, provider of discretionary natural gas service or provider of new electric resources who violates certain provisions; requiring an eligible customer and a customer of a public utility, alternative seller and provider of discretionary natural gas service to pay certain taxes, fees and assessments relating to the purchase of natural gas or energy, capacity or ancillary services under certain circumstances; revising provisions relating to Solar Energy Systems Demonstration Program; providing a penalty; 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. 703.010 is hereby amended to read as follows:

703.010 As used in this chapter, unless the context otherwise

requires:

1. “Affected governmental entity” means a governmental

entity for which a tax, fee or assessment is collected pursuant to

section 8, 9 or 15 of this act.

2. “Alternative seller” means a person who sells any

competitive, discretionary or potentially competitive component of

natural gas service pursuant to NRS 704.993 to 704.999, inclusive.

[2.] 3. “Commission” means the Public Utilities Commission

of Nevada.

4. “Provider of new electric resources” has the meaning

ascribed to it in NRS 704B.130.

Sec. 2. NRS 703.190 is hereby amended to read as follows:

703.190 1. Except as otherwise provided in this section, all

biennial reports, records, proceedings, papers and files of the

Commission must be open at all reasonable times to the public.

2. The Commission shall, upon receipt of a request from a

public utility, alternative seller, provider of discretionary natural

gas service or provider of new electric resources, prohibit the

disclosure of any applicable information in [its] the possession of

the Commission or an affected governmental entity concerning the

public utility , alternative seller, provider of discretionary natural

gas service or provider of new electric resources, if the

Commission determines that the information would otherwise be

entitled to protection as a trade secret or confidential commercial

information pursuant to NRS 49.325 or 600A.070 or Rule 26(c)(7)

of the Nevada Rules of Civil Procedure. Upon making such a

determination, the Commission shall establish the period during

which the information must not be disclosed and a procedure for

protecting the information during and after that period.

Sec. 3. NRS 703.191 is hereby amended to read as follows:

703.191 1. Each public utility that is regulated by the

Commission or elects to be regulated under an alternative plan of

regulation pursuant to NRS 704.997, and each alternative seller,

provider of discretionary natural gas service and provider of new

electric resources shall:

(a) Keep uniform and detailed accounts of all applicable

business transacted in this state [in the manner] as required by the

Commission by regulation, and render them to the Commission or

an affected governmental entity upon its request.

(b) Furnish an annual report , with respect to all applicable

business transacted in this state, to the Commission and each

affected governmental entity in the form and detail which [it] the

Commission prescribes by regulation.

2. The reports required by this section must be prepared for

each calendar year and submitted not later than May 15 of the year

following the year for which the report is submitted.

3. If the Commission or an affected governmental entity finds

that necessary information with respect to applicable business

transacted in this state is not contained in a report submitted

pursuant to this section, [it] the Commission or affected

governmental entity may call for the omitted information at any

time.

Sec. 4. NRS 703.195 is hereby amended to read as follows:

703.195 1. Except as otherwise provided in subsection 2, any

Commissioner , [or] any officer or employee of the Commission

who is designated by the Commission, or any officer or employee

of an affected governmental entity who is designated by the

affected governmental entity may examine during regular business

hours the books, accounts, records, minutes, papers and property of

any public utility , alternative seller, provider of discretionary

natural gas service or provider of new electric resources who does

business in this state, with respect to such business, regardless of

whether [or not] the book, account, record, minutes, paper or

property is located within this state.

2. No personnel records of an employee may be examined

pursuant to subsection 1 unless the records contain information

relating to a matter of public safety or the Commission determines

that the examination is required to protect the interests of the public.

3. As used in this section, “personnel records” does not

include:

(a) The name of the employee who is the subject of the record;

(b) The gross compensation and perquisites of the employee;

(d) The title or any description of the position held by the

employee;

(e) The qualifications required for the position held by the

employee;

(f) The business address of the employee;

(g) The telephone number of the employee at his place of

business;

(h) The work schedule of the employee;

(i) The date on which the employee began his employment; and

(j) If applicable, the date on which the employment of the

employee was terminated.

Sec. 5. NRS 703.196 is hereby amended to read as follows:

703.196 1. Any books, accounts, records, minutes, papers

and property of any public utility , alternative seller, provider of

discretionary natural gas service or provider of new electric

resources that are subject to examination pursuant to NRS 703.190

or 703.195 and are made available to the Commission, any officer or

employee of the Commission, an affected governmental entity, any

officer or employee of an affected governmental entity, the Bureau

of Consumer Protection in the Office of the Attorney General or any

other person under the condition that the disclosure of such

information to the public be withheld or otherwise limited, must not

be disclosed to the public unless the Commission first determines

that the disclosure is justified.

2. The Commission shall take such actions as are necessary to

protect the confidentiality of such information, including, without

limitation:

(a) Granting such protective orders as it deems necessary; and

(b) Holding closed hearings to receive or examine such

information.

3. If the Commission closes a hearing to receive or examine

such information, it shall:

(a) Restrict access to the records and transcripts of such hearings

without the prior approval of the Commission or an order of a court

of competent jurisdiction authorizing access to the records or

transcripts; and

(b) Prohibit any participant at such a hearing from disclosing

such information without the prior authorization of the Commission.

4. A representative of the regulatory operations staff of the

Commission and the Bureau of Consumer Protection:

(a) May attend any closed hearing held pursuant to this section;

and

(b) Have access to any records or other information determined

to be confidential pursuant to this section.

5. The Commission shall consider in an open meeting whether

the information reviewed or examined in a closed hearing may be

disclosed without revealing the confidential subject matter of the

information. To the extent the Commission determines the

information may be disclosed, the information must become a part

of the records available to the public. Information which the

Commission determines may not be disclosed must be kept under

seal.

Sec. 6. NRS 703.380 is hereby amended to read as follows:

703.380 1. Unless another penalty is specifically provided,

any public utility , alternative seller, provider of discretionary

natural gas service or provider of new electric resources, or any

officer, agent or employee of a public utility , alternative seller,

provider of discretionary natural gas service or provider of new

electric resources who:

(a) Violates any [of the provisions] applicable provision of this

chapter or [chapters] chapter 704, 704B, 705 [and] or 708 of NRS;

(b) Violates any rule or regulation of the Commission; or

Commission or any order of a court requiring compliance with an

order of the Commission,

is liable for a civil penalty not to exceed $1,000 per day for each day

of the violation and not to exceed $100,000 for any related series of

violations.

2. The amount of any civil penalty to be imposed pursuant to

this section, and the propriety of any compromise of a penalty, must

be determined by a court of competent jurisdiction upon the

complaint of the Commission.

3. Subject to the approval of the court, any civil penalty may be

compromised by the Commission. In determining the amount of the

penalty, or the amount agreed upon in compromise, the

appropriateness of the penalty to the size of the business of

the person charged, the gravity of the violation and the good faith of

the person charged in attempting to achieve compliance, after

notification of a violation, must be considered.

4. Any penalty assessed pursuant to this section is not a cost of

service [by the] of a public utility and may not be included in any

new application by a public utility for a rate adjustment or rate

increase.

Sec. 7. Chapter 704 of NRS is hereby amended by adding

thereto the provisions set forth as sections 8 and 9 of this act.

Sec. 8. 1. Each provider of discretionary natural gas

service shall:

(a) Collect from each customer who is purchasing natural gas

from the provider of discretionary natural gas service any tax, fee

or assessment that would be due a governmental entity had the

customer continued to purchase natural gas from a public utility

that was regulated fully by the Commission pursuant to NRS

704.001 to 704.960, inclusive; and

(b) Remit any tax, fee or assessment collected pursuant to

paragraph (a) to the applicable governmental entity.

2. Each person who is responsible for billing a customer who

is purchasing natural gas from a provider of discretionary natural

gas service shall ensure that the amount which the customer must

pay pursuant to this section is set forth as a separate item or entry

on each bill submitted to the customer.

3. Upon petition by a governmental entity to which a tax, fee

or assessment must be remitted pursuant to this section, the

Commission may limit, suspend or revoke any license or other

authority conferred by the Commission upon a provider of

discretionary natural gas service if the Commission, after

providing an appropriate notice and hearing, determines that the

provider of discretionary natural gas service has failed to pay the

tax, fee or assessment.

Sec. 9. 1. Each public utility that elects to be regulated

under an alternative plan of regulation pursuant to NRS 704.997

shall:

(a) Collect from each customer who is purchasing natural gas

from the public utility under the alternative plan of regulation any

tax, fee or assessment that would be due a governmental entity had

the customer continued to purchase natural gas from a public

utility that was regulated fully by the Commission pursuant to

NRS 704.001 to 704.960, inclusive; and

(b) Remit any tax, fee or assessment collected pursuant to

paragraph (a) to the applicable governmental entity.

2. Each alternative seller shall:

(a) Collect from each customer who is purchasing natural gas

from the alternative seller any tax, fee or assessment that would be

due a governmental entity had the customer continued to purchase

natural gas from a public utility that was regulated fully by the

Commission pursuant to NRS 704.001 to 704.960, inclusive; and

(b) Remit any tax, fee or assessment collected pursuant to

paragraph (a) to the applicable governmental entity.

3. Each person who is responsible for billing a customer who

is purchasing natural gas from a public utility under an

alternative plan of regulation or from an alternative seller shall

ensure that the amount which the customer must pay pursuant to

this section is set forth as a separate item or entry on each bill

submitted to the customer.

4. Upon petition by a governmental entity to which a tax, fee

or assessment must be remitted pursuant to this section, the

Commission may limit, suspend or revoke any license or other

authority conferred by the Commission upon a public utility or

alternative seller if the Commission, after providing an

appropriate notice and hearing, determines that the public utility

or alternative seller has failed to pay the tax, fee or assessment.

Sec. 10. NRS 704.635 is hereby amended to read as follows:

704.635 When a complaint has been filed with the Commission

alleging that a person is providing a service which requires a

certificate of public convenience and necessity, or when the

Commission has reason to believe that any provision of NRS

704.005 to 704.751, inclusive, and section 8 of this act is being

violated, the Commission shall investigate the operation and may,

after a hearing, issue an order requiring that the person cease and

desist from any operation in violation of NRS 704.005 to 704.751,

inclusive[.] , and section 8 of this act. The Commission shall

enforce the order under the powers vested in the Commission by

NRS 704.005 to 704.751, inclusive, and section 8 of this act or

other law.

Sec. 11. NRS 704.640 is hereby amended to read as follows:

704.640 Except as otherwise provided in NRS 704.281 to

704.284, inclusive, any person who:

1. Operates any public utility to which NRS 704.005 to

704.751, inclusive, and section 8 of this act and 704.993 to

704.999, inclusive, and section 9 of this act apply 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 8 of this act and 704.993 to

704.999, inclusive, and section 9 of this act or by the Commission

pursuant to NRS 704.005 to 704.751, inclusive, and section 8 of

this act and 704.993 to 704.999, inclusive [;] , and section 9 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 8 of

this act and 704.993 to 704.999, inclusive [;] , and section 9 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 8 of

this act and 704.993 to 704.999, inclusive, and section 9 of this

act,

shall be fined not more than $500.

Sec. 12. NRS 704.660 is hereby amended to read as follows:

704.660 1. Any public utility which furnishes, for

compensation, any water for domestic purposes shall furnish each

city, town, village or hamlet which it serves with a reasonably

adequate supply of water at reasonable pressure for fire protection

and at reasonable rates, all to be fixed and determined by the

Commission.

2. The duty to furnish a reasonably adequate supply of water

provided for in subsection 1 includes the laying of mains with all

necessary connections for the proper delivery of the water for fire

protection and also the installing of appliances to assure a

reasonably sufficient pressure for fire protection.

3. The Commission may fix and determine reasonable rates

and prescribe all installations and appliances adequate for the proper

utilization and delivery of water for fire protection. The

Commission may adopt regulations and practices to be followed by

a utility in furnishing water for fire protection, and has complete

jurisdiction of all questions arising under the provisions of this

section.

4. All proceedings under this section must be conducted

pursuant to NRS 703.320 to 703.370, inclusive, and 704.005 to

704.645, inclusive[.] , and section 8 of this act. All violations of

any order made by the Commission under the provisions of this

section are subject to the penalties for similar violations of the

provisions of NRS 704.005 to 704.645, inclusive[.] , and section 8

of this act.

5. This section applies to and governs all public utilities

furnishing water for domestic use on March 26, 1913, unless

otherwise expressly provided in the charters, franchises or permits

under which those utilities are acting. Each public utility which

supplies water for domestic uses after March 26, 1913, is subject to

the provisions of this section, regardless of any conditions to the

contrary in any charter, franchise or permit of whatever character

granted by any county, city, town, village or hamlet within this state,

or of any charter, franchise or permit granted by any authority

outside this state.

Sec. 13. NRS 704.993 is hereby amended to read as follows:

704.993 As used in NRS 704.993 to 704.999, inclusive, and

section 9 of this act, unless the context otherwise requires, the

words and terms defined in NRS 704.994, 704.995 and 704.996

have the meanings ascribed to them in those sections.

Sec. 14. NRS 704.997 is hereby amended to read as follows:

704.997 1. [Upon] Except as otherwise provided in this

section, 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 necessary, exempt any service offered by the public

utility from the strict application of one or more provisions of this

chapter. Such an exemption may be made only upon a determination

by the Commission, after notice and an opportunity for a hearing,

that the service is competitive, discretionary or potentially

competitive.

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 the provisions of 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] Except as otherwise provided in this section,

specify the provisions of this chapter that do not apply to a public

utility which elects to be regulated under the alternative plan.

discretionary, competitive or potentially competitive.

3. A public utility that elects to be regulated under the

alternative plan established pursuant to this section [is] :

(a) Remains subject to the provisions of NRS 704.033 and

704.035 and section 9 of this act; and

(b) Is not subject to the remaining provisions of this chapter to

the extent specified pursuant to this section.

4. In providing a potentially competitive service, an affiliate of

a provider of a noncompetitive service may use the name or logo, or

both, of the provider of noncompetitive service.

5. It is unlawful for an alternative seller to sell any service

relating to the supply of natural gas to a customer for his

consumption within this state without first having obtained a license

from the Commission to do so.

Sec. 15. Chapter 704B of NRS is hereby amended by adding

thereto a new section to read as follows:

1. If the Commission approves an application that is filed

pursuant to NRS 704B.310 or a request that is filed pursuant to

section 7 of Senate Bill No. 125 of this session, the Commission

shall order the eligible customer to:

(a) Pay its share of the annual assessment levied pursuant to

NRS 704.033 to the Commission and the Bureau of Consumer

Protection in the Office of the Attorney General;

(b) Pay any other tax, fee or assessment that would be due a

governmental entity had the eligible customer continued to

purchase energy, capacity or ancillary services from the electric

utility; and

paragraph (b) to the applicable governmental entity.

2. Each person or entity that is responsible for billing an

eligible customer shall ensure that the amount which the eligible

customer must pay pursuant to paragraph (b) of subsection 1 is set

forth as a separate item or entry on each bill submitted to the

eligible customer.

3. If an eligible customer to whom an order is issued

pursuant to subsection 1 thereafter purchases energy, capacity or

ancillary services from an alternative provider pursuant to section

7 of Senate Bill No. 125 of this session without obtaining the

approval of the Commission, the order issued pursuant to

subsection 1 continues to apply to the eligible customer.

4. Upon petition by a governmental entity to which a tax, fee

or assessment must be remitted pursuant to this section, the

Commission may limit, suspend or revoke any order issued to an

eligible customer by the Commission pursuant to NRS 704B.310

and 704B.320 if the Commission, after providing an appropriate

notice and hearing, determines that the eligible customer has

failed to pay the tax, fee or assessment.

Sec. 16. NRS 704B.310 is hereby amended to read as follows:

704B.310 1. An eligible customer that is purchasing electric

service from an electric utility shall not purchase energy, capacity or

ancillary services from a provider of new electric resources and an

eligible customer that is purchasing energy, capacity or ancillary

services from a provider of new electric resources shall not purchase

energy, capacity or ancillary services from another provider unless:

(a) The eligible customer files an application with the

Commission not later than 180 days before the date on which the

eligible customer intends to begin purchasing energy, capacity or

ancillary services from the provider; and

(b) The Commission approves the application by a written order

issued in accordance with the provisions of this section and

NRS 704B.320.

The date on which the eligible customer intends to begin purchasing

energy, capacity or ancillary services from the provider must not be

sooner than the date on which the provider is authorized by NRS

704B.300 to begin selling energy, capacity or ancillary services to

the eligible customer.

2. Except as otherwise provided in subsection 3, each

application filed pursuant to this section must include:

(a) Information demonstrating that the person filing the

application is an eligible customer;

(b) Information demonstrating that the proposed provider will

provide energy, capacity or ancillary services from a new electric

resource;

proposed transaction that is necessary for the Commission to

evaluate the impact of the proposed transaction on customers and

the public interest, including, without limitation, information

concerning the duration of the proposed transaction and the amount

of energy, capacity or ancillary services to be purchased from the

provider; and

(d) Any other information required pursuant to the regulations

adopted by the Commission.

3. Except as otherwise provided in NRS 704B.320, the

Commission shall not require the eligible customer or provider to

disclose:

(a) The price that is being paid by the eligible customer to

purchase energy, capacity or ancillary services from the provider; or

(b) Any other terms or conditions of the proposed transaction

that the Commission determines are commercially sensitive.

4. The Commission shall provide public notice of the

application of the eligible customer and an opportunity for a hearing

on the application in a manner that is consistent with the provisions

of NRS 703.320 and the regulations adopted by the Commission.

5. The Commission shall approve the application of the eligible

customer unless the Commission finds that the proposed transaction:

(a) Will be contrary to the public interest; or

(b) Does not comply with the provisions of NRS 704B.320, if

those provisions apply to the proposed transaction.

6. In determining whether the proposed transaction will be

contrary to the public interest, the Commission shall consider,

without limitation:

(a) Whether the electric utility that has been providing electric

service to the eligible customer will be burdened by increased costs

as a result of the proposed transaction or whether any remaining

customer of the electric utility will pay increased costs for electric

service as a result of the proposed transaction;

(b) Whether the proposed transaction will impair system

reliability or the ability of the electric utility to provide electric

service to its remaining customers; and

or ancillary services to the supply in this state.

7. If the Commission approves the application of the eligible

customer:

(a) The eligible customer shall not begin purchasing energy,

capacity or ancillary services from the provider pursuant to the

proposed transaction sooner than 180 days after the date on which

the application was filed; and

(b) The Commission shall order such terms, conditions and

payments as the Commission deems necessary and appropriate to

ensure that the proposed transaction will not be contrary to the

public interest. Such terms, conditions and payments:

(1) Must be fair and nondiscriminatory as between the

eligible customer and the remaining customers of the electric utility;

and

(2) Must include, without limitation[, payment] :

(I) Payment by the eligible customer to the electric utility

of the eligible customer’s load-share portion of any unrecovered

balance in the deferred accounts of the electric utility[.] ; and

(II) Payment by the eligible customer of the annual

assessment and any other tax, fee or assessment required by

section 15 of this act.

8. If the Commission does not enter a final order on the

application of the eligible customer within 90 days after the date on

which the application was filed with the Commission:

(a) The application shall be deemed to be approved by the

Commission; and

(b) The eligible customer shall not begin purchasing energy,

capacity or ancillary services from the provider pursuant to the

proposed transaction sooner than 180 days after the date on which

the application was filed.

Sec. 17. Section 14 of Assembly Bill No. 431 of this session is

hereby amended to read as follows:

Sec. 14. 1. The Solar Energy Systems Demonstration

Program is hereby created.

2. The Demonstration Program shall have three

categories of participants as follows:

(a) Schools;

(b) Other public buildings; and

3. A person is eligible to participate in the

Demonstration Program if the person:

(a) To install a solar energy system, uses an installer who

has been issued a classification C-2 license with the

appropriate subclassification by the State Contractors’ Board

pursuant to the regulations adopted by the Board; and

(b) For a participant in the category of schools or a

participant in the category of public buildings, provides for

the public display of the solar energy system, including,

without limitation, providing for public demonstrations of the

solar energy system and for hands-on experience of the solar

energy system by the public.

[4. In addition to the requirements of subsection 3, to be

eligible to participate in the Demonstration Program, a person

must be approved by the Public Utilities Commission of

Nevada.

5. The Public Utilities Commission of Nevada shall

adopt regulations providing for the qualifications an applicant

must meet to qualify to participate in the Demonstration

Program in the particular category of:

(a) Schools;

(b) Other public buildings; or

Sec. 18. Section 19 of Assembly Bill No. 431 of this session is

hereby amended to read as follows:

Sec. 19. 1. After the participant installs the solar

energy system included in the Demonstration Program, the

Public Utilities Commission of Nevada shall issue to the

participant [the following] renewable energy credits for use

within the system of renewable energy credits adopted by the

Commission pursuant to NRS 704.7821 [:

(a) For a participant in the category of schools or a

participant in the category of other public buildings, the

participant is entitled to renewable energy credits] equal to

[twice] 2.4 times the actual or estimated kilowatt-hour

production of the solar energy system . [of the participant for

a period of not less than 10 years.

(b) For a participant in the category for private residences

and small businesses, the participant is entitled to renewable

energy credits equal to the actual or estimated kilowatt-hour

production of the solar energy system of the participant.]

2. The Commission shall designate the renewable energy

credits issued to the participant pursuant to subsection 1

as renewable energy credits generated or acquired from solar

renewable energy systems. The participant may transfer the

renewable energy credits to a utility if the participant

complies with the regulations adopted by the Commission to

complete such a transfer.

3. The Commission shall adopt regulations to provide

for the requirements and the procedures that a participant

must follow to transfer renewable energy credits from the

participant to a utility.

Sec. 19. 1. This act becomes effective on July 1, 2003.

2. Sections 17 and 18 of this act expire by limitation on

June 30, 2007.

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