SB125_R1

Senate Bill No. 125–Committee on Commerce and Labor

CHAPTER..........

AN ACT relating to utilities; authorizing certain natural gas utilities to use deferred accounting for certain purposes; revising provisions governing the notice that must be provided for an application to obtain a permit for a utility facility; revising certain procedural requirements concerning applications to purchase energy, capacity or ancillary services from a provider of new electric resources; revising various provisions relating to transactions between eligible customers and providers of new electric resources; 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 703.330 is hereby amended to read as follows:

703.330 1. A complete record must be kept of all hearings

before the Commission. All testimony at such hearings must be

taken down by the stenographer appointed by the Commission [,] or,

under the direction of any competent person appointed by the

Commission, must be reported by sound recording equipment in

the manner authorized for reporting testimony in district courts. The

testimony reported by a stenographer must be transcribed, and the

transcript filed with the record in the matter. The Commission may

by regulation provide for the transcription or safekeeping of sound

recordings. [Cost] The costs of recording and transcribing testimony

at any hearing, except those hearings ordered pursuant to NRS

703.310, must be paid by the applicant. If a complaint is made

pursuant to NRS 703.310 by a customer or by a political subdivision

of the State or municipal organization, the complainant is not liable

for any costs. Otherwise, if there are several applicants or parties to

any hearing, the Commission may apportion the costs among them

in its discretion.

2. If a petition is served upon the Commission as provided in

NRS 703.373 for the bringing of an action against the Commission,

before the action is reached for trial, the Commission shall file a

certified copy of all proceedings and testimony taken with the clerk

of the court in which the action is pending.

3. A copy of the proceedings and testimony must be furnished

to any party, on payment of a reasonable amount [,] to be fixed by

the Commission, and the amount must be the same for all parties.

4. The provisions of this section do not prohibit the

Commission from:

(a) Restricting access to the records and transcripts of a hearing

pursuant to paragraph (a) of subsection 3 of NRS 703.196.

(b) Protecting the confidentiality of information pursuant to

NRS 704B.310 or 704B.320 [.] or section 7 of this act.

Sec. 2. NRS 704.185 is hereby amended to read as follows:

704.185 1. A public utility which purchases natural gas for

resale may record upon its books and records in deferred accounts

all cost increases or decreases in the natural gas purchased for resale

. [in deferred accounts.] Any public utility which [utilizes] uses

deferred accounting to reflect changes in costs of natural gas

purchased for resale shall include in its annual report to the

Commission a statement showing the allocated rate of return for

each of its operating departments in Nevada which uses deferred

accounting.

2. If the rate of return for any department using deferred

accounting pursuant to subsection 1 is greater than the rate of

return allowed by the Commission in the last rate proceeding, the

Commission shall order the utility which recovered any costs of

natural gas purchased for resale through rates during the reported

period to transfer to the next energy adjustment period that portion

of such recovered amounts which exceeds the authorized rate of

return.

3. A public utility which purchases natural gas for resale may

request approval from the Commission to record upon its books

and records in deferred accounts any other cost or revenue which

the Commission deems appropriate for deferred accounting and

which is not otherwise subject to the provisions of subsections 1

and 2. If the Commission approves such a request, the

Commission shall determine the appropriate requirements for

reporting and recovery that the public utility must follow with

regard to each such deferred account.

Sec. 3. NRS 704.870 is hereby amended to read as follows:

704.870 1. Except as otherwise provided in subsection 2, a

person who wishes to obtain a permit for a utility facility 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

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.

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. If a person wishes to obtain a permit for a utility facility and

a federal agency is required to conduct an environmental analysis of

the proposed utility facility, the person must:

(a) Not later than the date on which the person files with the

appropriate federal agency an application for approval for the

construction of the utility facility, file with the Commission and

each other permitting entity an application, in such a form as the

Commission or other permitting entity prescribes, containing:

(1) A general description of the proposed utility facility; and

(2) A summary of any studies which the applicant anticipates

will be made of the environmental impact of the facility; and

(b) Not later than 30 days after the issuance by the appropriate

federal agency of a final environmental assessment or

environmental impact statement relating to the construction of the

utility facility:

(1) File with the Commission an amended application that

complies with the provisions of subsection 1; and

(2) File with each other permitting entity an amended

application for a permit, license or other approval for the

construction of the utility facility.

3. A copy of each application and amended application filed

with the Commission must be filed with the Administrator of the

Division of Environmental Protection of the State Department of

Conservation and Natural Resources.

4. Each application and amended application filed with the

Commission must be accompanied by:

(a) Proof of service of a copy of the application or amended

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 pursuant to

paragraph (a) by the publication of a summary of the application or

amended application in newspapers published and distributed in the

area in which the utility facility is proposed to be located.

5. Not later than 5 business days after the Commission

receives an application or amended application pursuant to this

section, the Commission shall issue a notice concerning the

application or amended application. Any person who wishes to

become a party to a permit proceeding pursuant to NRS 704.885

must file with the Commission the appropriate document required

by NRS 704.885 within the time frame set forth in the notice

issued by the Commission pursuant to this subsection.

Sec. 4. NRS 704.885 is hereby amended to read as follows:

704.885 1. 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.

of the application pursuant to subsection 4 of NRS 704.870, if it has

filed with the Commission a notice of intervention as a party, within

[30 days after the date it was served with a copy of the application.]

the time frame established by the Commission pursuant to

subsection 5 of NRS 704.870.

(d) Any natural person residing in a local government entitled to

receive service of a copy of the application pursuant to subsection 4

of NRS 704.870, if such a person has petitioned the Commission for

leave to intervene as a party within [30 days after the date of the

published notice] the time frame established by the Commission

pursuant to subsection 5 of NRS 704.870 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 [30 days after the date of the published notice.] the time

frame established by the Commission pursuant to subsection 5 of

NRS 704.870.

2. Any person may make a limited appearance in the

proceeding by filing a statement of position within [30 days after the

date of the published notice.] the time frame established by the

Commission pursuant to subsection 5 of NRS 704.870. 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. 5. Chapter 704B of NRS is hereby amended by adding

thereto the provisions set forth as sections 6 and 7 of this act.

Sec. 6. “Consumer’s Advocate” means the Consumer’s

Advocate of the Bureau of Consumer Protection in the Office of

the Attorney General.

Sec. 7. 1. An eligible customer that is purchasing energy,

capacity or ancillary services from a provider of new electric

resources may purchase energy, capacity or ancillary services

from an alternative provider without obtaining the approval of the

Commission if the terms and conditions of the transaction with the

alternative provider, other than the price of the energy, capacity or

ancillary services, conform to the terms and conditions of the

transaction that was originally approved by the Commission with

respect to the eligible customer.

2. If any terms and conditions of the transaction with the

alternative provider, other than the price of the energy, capacity or

ancillary services, do not conform to the terms and conditions of

the transaction that was originally approved by the Commission

with respect to the eligible customer, the eligible customer must

obtain approval from the Commission before those

nonconforming terms and conditions are enforceable.

3. If the eligible customer files a request with the Commission

for approval of any nonconforming terms and conditions, the

Commission shall review and make a determination concerning

the request on an expedited basis.

4. Notwithstanding any specific statute to the contrary,

information concerning any terms and conditions of the

transaction with the alternative provider that the Commission

determines are commercially sensitive:

(a) Must not be disclosed by the Commission except to the

regulatory operations staff of the Commission, the Consumer’s

Advocate and his staff and the affected electric utility for the

purposes of carrying out the provisions of this section; and

(b) Shall be deemed to be confidential for all other purposes,

and the Commission shall take such actions as are necessary to

protect the confidentiality of such information.

Sec. 8. NRS 704B.010 is hereby amended to read as follows:

704B.010 As used in this chapter, unless the context otherwise

requires, the words and terms defined in NRS 704B.020 to

704B.140, inclusive, and section 6 of this act have the meanings

ascribed to them in those sections.

Sec. 9. NRS 704B.300 is hereby amended to read as follows:

704B.300 1. Except as otherwise provided in this section, a

provider of new electric resources may sell energy, capacity or

ancillary services to one or more eligible customers if [the] :

(a) The eligible customers have been approved to purchase

energy, capacity and ancillary services from the provider pursuant to

the provisions of NRS 704B.310 and 704B.320 [.] ; or

(b) The transaction complies with the provisions of section 7 of

this act.

2. A provider of new electric resources shall not sell energy,

capacity or ancillary services to an eligible customer [:

(a) Before April 1, 2002, if the eligible customer’s load is in the

service territory of an electric utility that primarily serves less

densely populated counties;

(b) Before June 1, 2002, if the eligible customer’s load is in the

service territory of an electric utility that primarily serves densely

populated counties; or

3. A provider of new electric resources that sells energy,

capacity or ancillary services to an eligible customer pursuant to the

provisions of this chapter:

(a) Does not become and shall not be deemed to be a public

utility solely because of that transaction; and

(b) Does not become and shall not be deemed to be subject to

the jurisdiction of the Commission except as otherwise provided in

this chapter or by specific statute.

4. If a provider of new electric resources is not a public utility

in this state and is not otherwise authorized by the provisions of a

specific statute to sell energy, capacity or ancillary services at retail

in this state, the provider shall not sell energy, capacity or ancillary

services at retail in this state to a person or entity that is not an

eligible customer.

Sec. 10. NRS 704B.310 is hereby amended to read as follows:

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

electric service for all or any part of its load 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 [;] , except that the

Commission may allow the eligible customer to file the application

within any shorter period that the Commission deems appropriate;

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 [;] , unless the Commission allows the

eligible customer to begin purchasing energy, capacity or ancillary

services from the provider at an earlier date; 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 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.

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

application of the eligible customer within [90] 150 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] may 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. 11. NRS 704B.320 is hereby amended to read as follows:

704B.320 1. For eligible customers whose loads are in the

service territory of an electric utility that primarily serves densely

populated counties, the aggregate amount of energy that all such

eligible customers purchase from providers of new electric

resources before July 1, 2003, must not exceed 50 percent of the

difference between the existing supply of energy generated in this

state that is available to the electric utility and the existing demand

for energy in this state that is consumed by the customers of the

electric utility, as determined by the Commission.

2. An eligible customer that is a nongovernmental commercial

or industrial end-use customer whose load is in the service territory

of an electric utility that primarily serves densely populated counties

shall not purchase energy, capacity or ancillary services from a

provider of new electric resources unless, as part of the proposed

transaction, the eligible customer agrees to:

(a) Contract with the provider to purchase:

(1) An additional amount of energy which is equal to 10

percent of the total amount of energy that the eligible customer is

purchasing for its own use under the proposed transaction and which

is purchased at the same price, terms and conditions as the energy

purchased by the eligible customer for its own use; and

(2) The capacity and ancillary services associated with the

additional amount of energy at the same price, terms and conditions

as the capacity and ancillary services purchased by the eligible

customer for its own use; and

(b) Offers to assign the rights to the contract to the electric

utility for use by the remaining customers of the electric utility.

3. If an eligible customer is subject to the provisions of

subsection 2, the eligible customer shall include with its application

filed pursuant to NRS 704B.310 all information concerning the

contract offered to the electric utility that is necessary for

the Commission to determine whether it is in the best interest of the

remaining customers of the electric utility for the electric utility to

accept the rights to the contract. Such information must include,

without limitation, the amount of the energy and capacity to be

purchased under the contract, the price of the energy, capacity and

ancillary services and the duration of the contract.

4. Notwithstanding any specific statute to the contrary,

information concerning the price of the energy, capacity and

ancillary services and any other terms or conditions of the contract

that the Commission determines are commercially sensitive:

(a) Must not be disclosed by the Commission except to the

regulatory operations staff of the Commission, the Consumer’s

Advocate and his staff and the electric utility for the purposes of

carrying out the provisions of this section; and

(b) Shall be deemed to be confidential for all other purposes,

and the Commission shall take such actions as are necessary to

protect the confidentiality of such information.

5. If the Commission determines that the contract:

(a) Is not in the best interest of the remaining customers of the

electric utility, the electric utility shall not accept the rights to

the contract, and the eligible customer is entitled to all rights to the

contract.

(b) Is in the best interest of the remaining customers of the

electric utility, the electric utility shall accept the rights to

the contract and the eligible customer shall assign all rights to the

contract to the electric utility. A contract that is assigned to the

electric utility pursuant to this paragraph shall be deemed to be an

approved part of the resource plan of the electric utility and a

prudent investment, and the electric utility may recover all costs for

the energy, capacity and ancillary services acquired pursuant to the

contract. To the extent practicable, the Commission shall take

actions to ensure that the electric utility uses the energy, capacity

and ancillary services acquired pursuant to each such contract only

for the benefit of the remaining customers of the electric utility that

are not eligible customers, with a preference for the remaining

customers of the electric utility that are residential customers with

small loads.

6. The provisions of this section do not exempt the electric

utility, in whole or in part, from the requirements imposed on the

electric utility pursuant to NRS 704.7801 to 704.7828, inclusive, to

comply with its portfolio standard for renewable energy. The

Commission shall not take any actions pursuant to this section that

conflict with or diminish those requirements.

[7. As used in this section, “Consumer’s Advocate” means the

Consumer’s Advocate of the Bureau of Consumer Protection in the

Office of the Attorney General.]

Sec. 12. This act becomes effective upon passage and

approval.

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