Senate Bill No. 260–Senator Amodei

 

March 11, 2003

____________

 

Referred to Committee on Commerce and Labor

 

SUMMARY—Revises provisions governing transmission systems and resource planning of certain electric utilities. (BDR 58‑561)

 

FISCAL NOTE:    Effect on Local Government: No.

                             Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to energy; requiring the Public Utilities Commission of Nevada to develop certain policies relating to transmission systems and resource planning of certain electric utilities; requiring certain electric utilities to submit their plans for procuring resources to the Commission for approval; providing penalties; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 703.377 is hereby amended to read as follows:

1-2  703.377  1.  Any certificate of public convenience and

1-3  necessity, permit or license issued or transferred in accordance with

1-4  the provisions of NRS 704.001 to 704.751, inclusive, and sections 3

1-5  and 4 of this act is not a franchise or irrevocable.

1-6  2.  Upon receipt of a written complaint or on its own motion,

1-7  the Commission may, after investigation and hearing, revoke any

1-8  certificate, permit or license, except that the Commission may not

1-9  revoke the certificate of a public utility unless the Commission has

1-10  arranged for another public utility to provide the service for which

1-11  the certificate was granted.

1-12      3.  If the Commission revokes any certificate, permit or license,

1-13  the person who held the certificate, permit or license may seek

2-1  judicial review pursuant to the provisions of NRS 703.373 to

2-2  703.376, inclusive.

2-3  Sec. 2.  Chapter 704 of NRS is hereby amended by adding

2-4  thereto the provisions set forth as sections 3 and 4 of this act.

2-5  Sec. 3.  1.  The Commission shall develop a policy to

2-6  preserve, protect and promote the transmission systems that are

2-7  owned, operated or used by the utilities which supply electricity in

2-8  this state. The policy developed by the Commission must:

2-9  (a) Apply uniformly to all transmission systems on a statewide

2-10  basis; and

2-11      (b) Ensure that the integrity and reliability of all transmission

2-12  systems in this state are preserved, protected and promoted with

2-13  regard to all customers in this state.

2-14      2.  The Commission shall develop a policy for long-term

2-15  resource planning that must be followed by the utilities which

2-16  supply electricity in this state. The policy developed by the

2-17  Commission must:

2-18      (a) Promote rapid responses to changing energy markets;

2-19      (b) Allow flexibility through the use of techniques of risk

2-20  management; and

2-21      (c) Include strategies for efficiently and effectively procuring

2-22  resources.

2-23      Sec. 4.  1.  Not later than January 31 of each year, each

2-24  utility which supplies electricity in this state shall submit its plan

2-25  for procuring resources to the Commission for approval.

2-26      2.  The Commission may approve the plan only if the plan:

2-27      (a) Enables the utility to fulfill its obligation to serve its

2-28  customers at rates that are just and reasonable;

2-29      (b) Moderates the price risks associated with serving those

2-30  customers; and

2-31      (c) Contains procedures to ensure that the utility’s actions in

2-32  procuring resources are undertaken in accordance with the plan

2-33  and are reviewed for prudence in a timely manner.

2-34      Sec. 5.  NRS 704.032 is hereby amended to read as follows:

2-35      704.032  The Commission on Economic Development may

2-36  participate in proceedings before the Public Utilities Commission of

2-37  Nevada concerning a public utility in the business of supplying

2-38  electricity or natural gas to advocate the accommodation of the state

2-39  plan for industrial development and diversification. The

2-40  Commission on Economic Development may intervene as a matter

2-41  of right in a proceeding pursuant to NRS 704.736 to 704.751,

2-42  inclusive, and sections 3 and 4 of this act or NRS 704.991.

2-43      Sec. 6.  NRS 704.635 is hereby amended to read as follows:

2-44      704.635  When a complaint has been filed with the Commission

2-45  alleging that a person is providing a service which requires a

3-1  certificate of public convenience and necessity, or when the

3-2  Commission has reason to believe that any provision of NRS

3-3  704.005 to 704.751, inclusive, and sections 3 and 4 of this act is

3-4  being violated, the Commission shall investigate the operation and

3-5  may, after a hearing, issue an order requiring that the person cease

3-6  and desist from any operation in violation of NRS 704.005 to

3-7  704.751, inclusive[.] , and sections 3 and 4 of this act. The

3-8  Commission shall enforce the order under the powers vested in the

3-9  Commission by NRS 704.005 to 704.751, inclusive, and sections 3

3-10  and 4 of this act or other law.

3-11      Sec. 7.  NRS 704.640 is hereby amended to read as follows:

3-12      704.640  Except as otherwise provided in NRS 704.281 to

3-13  704.284, inclusive, any person who:

3-14      1.  Operates any public utility to which NRS 704.005 to

3-15  704.751, inclusive, and sections 3 and 4 of this act and NRS

3-16  704.993 to 704.999, inclusive, apply without first obtaining a

3-17  certificate of public convenience and necessity or in violation of its

3-18  terms;

3-19      2.  Fails to make any return or report required by NRS 704.005

3-20  to 704.751, inclusive, and sections 3 and 4 of this act and NRS

3-21  704.993 to 704.999, inclusive, or by the Commission pursuant to

3-22  NRS 704.005 to 704.751, inclusive, and sections 3 and 4 of this act

3-23  and NRS 704.993 to 704.999, inclusive;

3-24      3.  Violates, or procures, aids or abets the violating of any

3-25  provision of NRS 704.005 to 704.751, inclusive, and sections 3 and

3-26  4 of this act and NRS 704.993 to 704.999, inclusive;

3-27      4.  Fails to obey any order, decision or regulation of the

3-28  Commission;

3-29      5.  Procures, aids or abets any person in his failure to obey the

3-30  order, decision or regulation; or

3-31      6.  Advertises, solicits, proffers bids or otherwise holds himself

3-32  out to perform as a public utility in violation of any of the

3-33  provisions of NRS 704.005 to 704.751, inclusive, and sections 3

3-34  and 4 of this act and NRS 704.993 to 704.999, inclusive,

3-35  shall be fined not more than $500.

3-36      Sec. 8.  NRS 704.736 is hereby amended to read as follows:

3-37      704.736  The [application] provisions of NRS 704.736 to

3-38  704.751, inclusive, [is limited] and sections 3 and 4 of this act

3-39  apply to any public utility in the business of supplying electricity

3-40  which has an annual operating revenue in this state of $2,500,000 or

3-41  more.

3-42      Sec. 9.  NRS 704.741 is hereby amended to read as follows:

3-43      704.741  1.  A utility which supplies electricity in this state

3-44  shall, on or before July 1 of every third year, in the manner specified

3-45  by the Commission, submit a plan to increase its supply of

4-1  electricity or decrease the demands made on its system by its

4-2  customers to the Commission.

4-3  2.  The Commission shall, by regulation, prescribe the contents

4-4  of such a plan including, but not limited to, the methods or formulas

4-5  which are used by the utility to:

4-6  (a) Forecast the future demands; and

4-7  (b) Determine the best combination of sources of supply to meet

4-8  the demands or the best method to reduce them.

4-9  3.  The plan must be consistent with:

4-10      (a) The policies concerning transmission systems and long-

4-11  term resource planning developed by the Commission pursuant to

4-12  section 3 of this act; and

4-13      (b) The utility’s plan for procuring resources approved by the

4-14  Commission pursuant to section 4 of this act.

4-15      Sec. 10.  NRS 704.746 is hereby amended to read as follows:

4-16      704.746  1.  Not more than 60 days after a utility has filed its

4-17  plan, the Commission shall convene a public hearing on the

4-18  adequacy of the plan.

4-19      2.  At the hearing any interested person may make comments to

4-20  the Commission regarding the contents and adequacy of the plan.

4-21      3.  After the hearing the Commission shall determine whether:

4-22      (a) The forecast requirements of the utility are based on

4-23  substantially accurate data and an adequate method of forecasting.

4-24      (b) The plan identifies and takes into account any present and

4-25  projected reductions in the demand for energy that may result from

4-26  measures to improve energy efficiency in the industrial,

4-27  commercial, residential and energy producing sectors of the area

4-28  being served.

4-29      (c) The plan adequately demonstrates the economic,

4-30  environmental and other benefits to this state and to the customers

4-31  of the utility, associated with the following possible measures and

4-32  sources of supply:

4-33          (1) Improvements in energy efficiency;

4-34          (2) Pooling of power;

4-35          (3) Purchases of power from neighboring states or countries;

4-36          (4) Facilities that operate on solar or geothermal energy or

4-37  wind;

4-38          (5) Facilities that operate on the principle of cogeneration or

4-39  hydrogeneration; and

4-40          (6)  Other generation facilities.

4-41      (d) The plan is consistent with:

4-42          (1) The policies concerning transmission systems and long-

4-43  term resource planning developed by the Commission pursuant to

4-44  section 3 of this act; and

5-1       (2) The utility’s plan for procuring resources approved by

5-2  the Commission pursuant to section 4 of this act.

5-3  4.  The Commission may give preference to the measures and

5-4  sources of supply set forth in paragraph (c) of subsection 3 that:

5-5  (a) Provide the greatest economic and environmental benefits to

5-6  the State;

5-7  (b) Are consistent with the provisions of this section; and

5-8  (c) Provide levels of service that are adequate and reliable.

5-9  5.  The Commission shall:

5-10      (a) Adopt regulations which determine the level of preference to

5-11  be given to those measures and sources of supply; and

5-12      (b) Consider the value to the public of using water efficiently

5-13  when it is determining those preferences.

5-14      Sec. 11.  NRS 704.873 is hereby amended to read as follows:

5-15      704.873  If a public utility that is subject to the provisions of

5-16  NRS 704.736 to 704.751, inclusive, and sections 3 and 4 of this act

5-17  applies to the Commission for a permit for the construction of a

5-18  utility facility:

5-19      1.  The Commission has exclusive jurisdiction with regard to

5-20  the determination of whether a need exists for the utility facility; and

5-21      2.  No other permitting entity may consider, in its review of any

5-22  application for a permit, license or other approval for the

5-23  construction of the utility facility, whether a need exists for the

5-24  utility facility.

5-25      Sec. 12.  NRS 704.893 is hereby amended to read as follows:

5-26      704.893  No public utility which has a parent or an affiliated

5-27  corporation or a subsidiary of that parent or affiliated corporation

5-28  with an interest in the ownership of a utility facility, may purchase

5-29  or contract for the capacity of that facility unless the purchase or the

5-30  contract has been reviewed and approved by the Commission in a

5-31  manner consistent with the provisions of NRS 704.736 to 704.751,

5-32  inclusive[.] , and sections 3 and 4 of this act.

5-33      Sec. 13.  This act becomes effective on July 1, 2003.

 

5-34  H