NRS: CHAPTER 704 - REGULATION OF PUBLIC UTILITIES GENERALLY

[Rev. 6/29/2024 5:16:28 PM--2023]

CHAPTER 704 - REGULATION OF PUBLIC UTILITIES GENERALLY

GENERAL PROVISIONS

NRS 704.001 Purpose and policy of Legislature in enacting chapter.

NRS 704.005 Definitions.

NRS 704.006 “Basic network service” defined.

NRS 704.007 “Biomass” defined.

NRS 704.008 “Business line service” defined.

NRS 704.010 “Commission” defined.

NRS 704.011 “Competitive supplier” defined.

NRS 704.012 “Consumer’s Advocate” defined.

NRS 704.0125 “Correctional facility” defined.

NRS 704.013 “Fund to maintain the availability of telephone service” defined.

NRS 704.0135 “Incumbent local exchange carrier” defined.

NRS 704.0136 “Inmate calling service” defined.

NRS 704.0137 “Interexchange carrier” defined.

NRS 704.014 “Local exchange carrier” defined.

NRS 704.015 “Person” defined.

NRS 704.018 “Provider of last resort” defined.

NRS 704.020 “Public utility” or “utility” defined.

NRS 704.021 “Public utility” or “utility” further defined.

NRS 704.023 “Small-scale provider of last resort” defined.

NRS 704.025 “Telecommunication” defined.

NRS 704.027 “Telecommunication provider” or “telephone company” defined.

NRS 704.028 “Telecommunication service” or “telephone service” defined.

NRS 704.031 Power to subpoena person claiming exemption.

NRS 704.032 Participation of Office of Economic Development in proceedings before Commission.

ANNUAL ASSESSMENTS AND LICENSING FEES

NRS 704.033 Levy and collection of and limitations on annual assessment; payment of annual licensing fee by providers of commercial mobile radio service.

NRS 704.035 Annual assessment: Report on revenue; computation, payment and adjustment of assessment; fee for delinquent assessment; action for collection; transfer to Consumer’s Advocate.

GENERAL RIGHTS AND OBLIGATIONS

NRS 704.040 Public utilities required to provide reasonably adequate service and facilities; charges for services required to be just and reasonable; unjust and unreasonable charges unlawful; applicability; fair and impartial regulation of telecommunication providers; levy and collection of assessment for deposit in fund to maintain availability of telephone service; regulations concerning independent administrator to certify or recertify eligibility of customers for lifeline service; termination of service to certify or recertify eligibility for lifeline service under certain circumstances.

NRS 704.050 Special contract rates.

NRS 704.060 Charge for shorter haul included within longer haul.

RATES AND SCHEDULES

NRS 704.061 Definitions.

NRS 704.062 “Application to make changes in any schedule” and “application” defined.

NRS 704.065 “Rate” defined.

NRS 704.066 “Schedule” defined.

NRS 704.068 Acts deemed to be change in schedule.

NRS 704.069 Commission required to conduct consumer session for certain rate cases; Commission required to conduct general consumer session annually in certain counties and to submit record from such session to Legislative Commission.

NRS 704.070 Public utility required to file current schedules with Commission and to post current schedules at certain offices; public inspection of current schedules.

NRS 704.075 Separate standards for rates for natural gas supplied to generating, industrial and large commercial customers; exemption from certain provisions concerning rates.

NRS 704.085 Electric utility prohibited from making change in schedule or imposing rate which requires residential customer to purchase electric service based on time of usage; exceptions.

NRS 704.095 Simplified procedures or methodologies for changing rates for certain public utilities furnishing water or services for sewage; regulations.

NRS 704.097 Simplified procedures for obtaining certificate of public convenience and necessity and for changing rates for public utilities furnishing only liquefied petroleum gas; regulations.

NRS 704.100 Procedure for changing schedule: Approval of Commission required; filing application or letter of advice; quarterly rate adjustments for certain utilities; posting proposed, new and amended schedules; limitation on use of certain information to justify rate increase; power of Commission to dispense with hearing in certain matters; request for certain waiver by small-scale provider of last resort.

NRS 704.102 Procedure for changing schedule: No presumption that recorded expenses, investments or other costs included in application were prudently incurred; exception; burden of proof.

NRS 704.120 Commission may substitute just and reasonable rates, regulations, practices or services after investigation and hearing; exceptions.

NRS 704.130 Rates effective and regulations enforceable until modified by Commission or court.

NRS 704.140 Free or reduced rates for transportation unlawful; exceptions; penalty.

GENERAL STANDARDS AND PRACTICES

NRS 704.143 Persons with physical or mental disabilities entitled to full and equal enjoyment of facilities for public transportation; unlawful denial of services and facilities.

NRS 704.145 Unlawful to refuse service of public transportation or charge additional fee or deposit to certain persons accompanied by service animal or service animal in training; exception; liability for damage; person subject to same conditions and limitations as others; remedies.

NRS 704.150 Duty of connecting railroad to transfer car for just and reasonable charge.

NRS 704.160 Duty of railroad to provide and maintain depots, stations and other facilities.

NRS 704.170 Duty of railroad to furnish freight cars to shippers; regulations.

NRS 704.175 Compliance with standards for electrical construction; inspection; exemption.

NRS 704.183 Examination of certain public utilities.

NRS 704.1835 Commission required to adopt or amend regulations relating to termination of utility service for gas, water or electricity.

DEFERRED ACCOUNTING

NRS 704.185 Use of deferred accounting by certain natural gas utilities; procedure; limitations.

NRS 704.187 Use of deferred accounting by certain electric utilities; procedure; limitations.

NOTICES; REPORTS; RECORDS

NRS 704.188 Required notice to customer may be provided by electronic transmission if requested by customer and within utility’s capability.

NRS 704.190 Report and investigation of accident or motor vehicle crash; regulations; forms; public inspection of report; inadmissibility of report in action for damages.

NRS 704.195 Recording of telephone call concerning emergency or service outage; disclosure.

NRS 704.197 Public utility required to provide name and address of person listed in records of utility upon request of public administrator or deputy or certain other persons performing duties of public administrator; immunity for disclosure made in good faith.

NRS 704.201 Investigation by law enforcement agency: Issuance of subpoena to public utility for name and address of person listed in records of customers.

NRS 704.202 Investigation by law enforcement agency: Disclosure of name and address of person listed in records of customers by public utility upon receipt of subpoena; fee; immunity for disclosure made in good faith.

NRS 704.206 Certain public utilities required to provide list of customers upon request of district judge or jury commissioner for use in jury selection; reimbursement for cost of compiling list; immunity for disclosure made in good faith.

OTHER STANDARDS AND PRACTICES

NRS 704.210 Powers of Commission: Adoption of regulations; supervision and regulation of public utilities; exceptions.

NRS 704.215 Powers of Commission: Adoption of certain rules, regulations and rates by reference.

NRS 704.220 Powers of Commission: Fixing standards for measurement of conditions pertaining to supply of product or service; prescribing regulations for examination and testing of product or service and measurement thereof; fees for testing.

NRS 704.223 Purchase or transmission of electricity to certain businesses to reduce overall cost of electricity to business: Authorization; additional facilities; agreement; terms and conditions.

NRS 704.225 Regulations requiring lower rates for electricity for irrigation pumps: Interruptible service.

NRS 704.230 Installation and use of water meters; separate rate for residential users. [Effective until certain conditions concerning agreement between Sierra Pacific Power Company and Pyramid Lake Paiute Tribe have been met.]

NRS 704.230 Installation of water meters required by certain residential buildings; exceptions. [Effective when certain conditions concerning agreement between Sierra Pacific Power Company and Pyramid Lake Paiute Tribe have been met.]

NRS 704.235 Use by local government of facilities of public utility for treatment, transportation or exchange of water.

NRS 704.240 Powers of Commission: Purchase of apparatus for examinations and tests; entry on premises to make examination and test; penalties for refusal to allow examination.

NRS 704.250 Powers of Commission: Standards for maintenance, use and operation of electric poles, wires, cables and appliances.

NRS 704.260 Powers of Commission: Requiring repair and construction of property and use of appliances for safety; regulations.

NRS 704.280 Powers of Commission: Regulation of lines and tracks; regulations; safety devices.

NRS 704.285 Violation of law governing interception or disclosure of communications made by wire or radio: Investigation; hearing; orders to cease and desist.

NRS 704.300 Railroad crossings: Powers of Commission; payment of expenses.

NRS 704.305 Railroad crossings: Apportionment of costs of construction, reconstruction and protective devices; maintenance of surface.

NRS 704.307 Railroads: Commission required to perform duties to ensure safety of equipment, facilities, rolling stock and operations and for State’s participation in federal safety program; regulations.

NRS 704.309 Railroads: Commission required to levy and collect annual assessments for railroad safety; fee for delinquent assessment; sale or transfer of certificate of public convenience and necessity; action for collection of assessment or fee.

NRS 704.310 Sale of surplus light, heat or power by person not public utility: Application; approval of contract by Commission.

NRS 704.320 Purchase of surplus water or electric current by public utility for resale; application filed with Commission; approval of application; seller not deemed public utility.

STOCKS AND SECURITY TRANSACTIONS

NRS 704.322 “Security” defined.

NRS 704.323 Issuance of security or assumption of obligation by privately owned public utility subject to authorization by Commission; exceptions.

NRS 704.324 Order authorizing issuance of security or assumption of obligation; variable-rate securities; supplemental order; findings; conditions.

NRS 704.325 Limitations on application of security or proceeds.

NRS 704.326 Guarantee or obligation of State not implied.

NRS 704.327 Payment of necessary expenses of Commission by public utility.

NRS 704.328 Inapplicability of NRS 704.322 to 704.326, inclusive, to certain public utilities.

MERGERS, ACQUISITIONS OR CHANGES IN CONTROL

NRS 704.329 Mergers, acquisitions or changes in control of public utility or entity that holds controlling interest in public utility: Authorization of Commission required; time within which Commission must act; exceptions.

CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY

NRS 704.3296 “Electric utility” defined.

NRS 704.330 Public utility to obtain certificate of public convenience and necessity; exceptions; terms and conditions; orders to cease and desist; duplication of service; boundaries of certain service areas.

NRS 704.340 Municipalities and certain trusts for furtherance of public functions not required to obtain certificates; approval and jurisdiction of Commission.

NRS 704.350 Prerequisites to issuance of certificate.

NRS 704.355 Considerations for issuance of certificate to certain utilities providing water service or sewage service.

NRS 704.360 Conduct of investigations and hearings.

NRS 704.370 Issuance or refusal of certificate: Terms and conditions; hearing required for certain applications; power of Commission to dispense with hearing for certain applications.

NRS 704.380 Public utility beginning, prosecuting or completing new construction without certificate: Levy of tolls and charges prohibited and void; exceptions.

NRS 704.390 Discontinuance, modification or restriction of service: Authorization of Commission required; hearing required for certain applications; power of Commission to dispense with hearing for certain applications.

NRS 704.400 Order of Commission prima facie lawful from date of order.

NRS 704.410 Transfer of certificate: Authorization of Commission required; hearing required for certain transfers; power of Commission to dispense with hearing for certain transfers; factors considered; effectiveness of certificate after transfer.

VALUATION OF PROPERTY

NRS 704.440 Investigation and ascertainment of value of property of public utility; exceptions.

VIOLATIONS, PENALTIES AND REMEDIES

NRS 704.595 Civil penalty for violation of regulations adopted in conformity with Natural Gas Pipeline Safety Act of 1968; compromise and recovery of penalty.

NRS 704.600 Administrative fines for failure or refusal to make reports or allow examination.

NRS 704.630 Additional civil remedies of Commission.

NRS 704.635 Order by Commission to cease and desist.

NRS 704.638 Unlawful to post sign on device of public utility used to support line for telephone or electricity.

NRS 704.640 Criminal penalties.

NRS 704.645 Remedies of State cumulative; election of remedies.

CUSTOMER DEPOSITS

NRS 704.655 Public utility required to pay interest on deposits made by customers; penalty.

WATER SERVICE AND SEWAGE SERVICE

NRS 704.660 Public utility supplying water required to provide reasonably adequate supply of water for fire protection at reasonable rates; regulations by Commission; proceedings; violations.

NRS 704.661 Certain public utilities furnishing water or sewage service required to submit resource plan for meeting demand made on system; contents of and procedure for approving or denying request for waiver from submission of resource plan; issuance of order by Commission accepting or modifying plan; recovery of certain costs and expenditures relating to plan; regulations.

NRS 704.662 Plan of water conservation: Requirement and procedure for adoption and revision; approval by Commission; election to comply with plan adopted by Commission; joint filing with management plan for water resources.

NRS 704.6622 Plan of water conservation: Contents; approval by Commission.

NRS 704.6623 Plan of water conversion: Submission of water loss audit or certain calculations regarding water service; comparison with previous audit or calculations and analysis of progress towards goals; exception.

NRS 704.6624 Plan to provide incentives for water conservation: Procedure for adoption; revision; review and approval by Commission.

NRS 704.663 Certain public utilities furnishing water or sewage service: Regulations by Commission to consider certain requests by utility to recover costs or impose surcharge.

NRS 704.664 Facility for treatment of water acquired and constructed by county: Approval of Commission required for imposition of tax to finance facility if water taxed is supplied by public utility; determination by Commission; regulations.

NRS 704.6642 Facility for treatment of water acquired and constructed by county: Billing and collection of tax imposed on customers of public utility.

NRS 704.6644 Facility for treatment of water acquired and constructed by county: Public utility’s use of water treatment services provided by facility authorized; Commission’s approval of agreement for use required.

NRS 704.6646 Facility for treatment of water acquired and constructed by county: Operation and maintenance of facility by public utility authorized; Commission’s approval of agreement for operation and maintenance required.

NRS 704.665 Water to be provided through single connection to building containing multiple units for occupancy; exception.

NRS 704.667 Public utility not required to furnish water for artificial lake or stream if prohibited or restricted by ordinance in certain counties; exceptions.

NRS 704.6672 Review of water supply and sewage service for certain proposed subdivisions: Duties of Commission; fee; exceptions.

NRS 704.6674 Supplier of water or services for sewage: Regulation by county; exceptions; appointment of receiver upon petition of county commissioners.

NRS 704.6676 Supplier of water or services for sewage: Appointment of receiver upon petition of Commission.

NRS 704.668 Disposal or encumbrance of property by certain public utilities furnishing water or services for sewage: Approval of Commission required; hearing required in certain matters; regulations.

GEOTHERMAL ENERGY

NRS 704.669 Regulation of sale of geothermal energy to public; system of operating permits.

COOPERATIVE ASSOCIATIONS, NONPROFIT CORPORATIONS AND ASSOCIATIONS AND OTHER SIMILAR ENTITIES

NRS 704.673 Cooperatives, nonprofit corporations and associations supplying services both to public and members declared public utilities; regulation by Commission.

NRS 704.675 Cooperatives, nonprofit corporations and associations supplying services to members only declared public utilities; limited jurisdiction of Commission.

NRS 704.677 Certificates of public convenience and necessity to be issued to certain cooperatives, nonprofit corporations and associations; contents of statement and certificate.

BROADBAND SERVICE

NRS 704.684 Limitations on regulation of broadband service; exceptions.

INTERNET PROTOCOL-ENABLED SERVICE AND VOICE OVER INTERNET PROTOCOL SERVICE

NRS 704.685 Limitations on regulation of Internet Protocol-enabled service or Voice over Internet Protocol service; exceptions.

BROADCAST TELEVISION SERVICE

NRS 704.687 Limitations on exclusion from viewing of televised broadcasts of sporting or other special events; exception.

TELECOMMUNICATION SERVICE

Standards and Practices

NRS 704.6873 Adoption of regulations regarding telecommunication service furnished to certain public facilities, providers of health care, low-income persons and rural, insular and high-cost areas.

NRS 704.6875 Customer entitled to written notice of duration of certain calls.

NRS 704.6877 Adoption of regulations regarding notice provided by incumbent local exchange carriers of certain interconnection agreements.

NRS 704.6878 Adoption of regulations regarding incumbent local exchange carriers and the obligations of providers of last resort.

Competition Among Providers; Complaints

NRS 704.6881 Establishment of standards and penalties to encourage competition and discourage discrimination in provision of local telecommunication services; regulations.

NRS 704.6882 Establishment of expedited procedures for certain complaints filed by provider against another provider; regulations.

NRS 704.6883 Judicial review of certain decisions of Commission.

Competitive Suppliers

NRS 704.68861 Applicability.

NRS 704.68863 Powers and duties under certain federal and state laws preserved.

NRS 704.68865 Adoption of regulations.

NRS 704.68867 Filing of reports.

NRS 704.68869 Regulation of small-scale provider of last resort as competitive supplier: Application; grant or denial of application by Commission.

NRS 704.68871 Exemption from review and monitoring of certain financial data; limited financial and accounting requirements.

NRS 704.68873 Exemption from regulation of telecommunication service; exceptions.

NRS 704.68875 Exemption from filing schedules or tariffs; requirements regarding publication of certain rate and service information.

NRS 704.68877 Requirements and exemptions regarding basic network service.

NRS 704.68879 Requirements regarding access to emergency 911 service; requirements and procedure regarding deregulation of intrastate switched or special access service.

NRS 704.688795 Requirements regarding inmate calling service: Filing of schedule or tariff with Commission for approval; schedule or tariff requirements; submission of revised schedule or tariff upon revision of rate cap or limitation by Commission.

NRS 704.6888 Requirements regarding inmate calling service: Regulations; annual review and any necessary revision of rate cap or limitation by Commission.

NRS 704.68881 Authority of provider of last resort to satisfy obligations through alternative voice service; conditions and limitations.

NRS 704.68883 Permitted billing practices if customer charged fixed price or amount for package of services.

NRS 704.68885 Requirements regarding discontinuation of service.

NRS 704.68886 Relief from obligations and status as provider of last resort: Requirements; filing application; procedure; approval or denial of application by Commission; power of Commission to declare emergency in area where alternative voice service is unavailable.

NRS 704.68887 Anticompetitive acts and unlawful discrimination prohibited.

ELECTRIC SERVICE

Conversion of Certain Generation Facilities

NRS 704.701 Definitions.

NRS 704.706 Conversion of facility to allow firing by coal: Application for adjustment of rates; public hearing.

NRS 704.711 Decision on application for adjustment; conditions; requirements for approval; federal or state grants.

NRS 704.716 Calculation of amount of adjustment; effect on rates, prices and charges.

NRS 704.721 Filing of tariff on date of conversion.

NRS 704.726 Annual accounting of cost of conversion and revenues from adjustment in rates; termination of adjustment upon recovery of cost of conversion.

NRS 704.731 Faith of State pledged.

Reduction of Emissions From Coal-Fired Electric Generating Plants

NRS 704.7311 Definitions.

NRS 704.7312 “Coal-fired electric generating plant” defined.

NRS 704.7313 “Electric utility” defined.

NRS 704.7314 “Emissions reduction and capacity replacement plan” defined.

NRS 704.7315 “Renewable energy facility” defined.

NRS 704.7316 Comprehensive plan for reduction of emissions from coal-fired electric generating plants and increased capacity from renewable energy facilities and other electric generating plants; contents and requirements.

NRS 704.7317 Electric utility required to record certain amounts in regulatory asset.

NRS 704.7318 Sites used for production of electricity from coal-fired electric generating plant, natural gas electric generating plant or renewable energy facility: Remediation or reuse; regulation of emissions from electric generating plants constructed on certain sites.

NRS 704.7319 General rate proceedings filed before June 1, 2018, which include request to recover certain costs.

NRS 704.732 Amendment to utility’s emissions reduction and capacity replacement plan required when utility requests approval and acceptance by Commission of contract with new renewable energy facility.

NRS 704.7321 Commission may recommend to electric utility modification of or amendment to emissions reduction and capacity replacement plan; actions by electric utility.

NRS 704.7322 Regulations.

Surplus Assets

NRS 704.733 Definitions.

NRS 704.7331 “Asset” defined.

NRS 704.7332 “Decommissioned” defined.

NRS 704.7333 “Electric utility” defined.

NRS 704.7334 “Operational” defined.

NRS 704.7335 “Post-operational reserve” defined.

NRS 704.7336 “Pre-operational reserve” defined.

NRS 704.7337 “Surplus” defined.

NRS 704.7338 Electric utility to file list of assets with Commission; contents of list.

NRS 704.7339 Reclassification of asset as surplus.

NRS 704.734 Surplus asset retirement plans: Filing; contents; subject to approval by Commission.

NRS 704.7341 Duty of electric utility to carry out surplus asset retirement plan; amendment of plan by Commission.

Optional Pricing and Resource Planning

NRS 704.736 Applicability.

NRS 704.7362 Definitions.

NRS 704.7364 “Cost effective” defined.

NRS 704.7366 “Energy efficiency and conservation program” defined.

NRS 704.7368 “Renewable energy facility” defined.

NRS 704.738 Program of optional pricing for electricity generated from renewable energy: Authorization of Commission required; Commission may authorize higher rates.

NRS 704.741 Plan to increase supply or decrease demands: Submission not less than triennially; joint plans by certain affiliated utilities; contents prescribed by regulation; requirements.

NRS 704.744 Utility required to provide overview of plan or amendment to plan to certain persons and conduct consumer session before filing such plan or amendment; inclusion of summary of consumer session in testimony of utility.

NRS 704.746 Public hearing on adequacy of plan; determination by Commission; regulations.

NRS 704.751 Order accepting or modifying plan or amendment to plan or specifying inadequacies; notice of utility to consent to or reject modifications; recovery of costs from customers; criteria for accepting energy efficiency plan, distributed resources plan and transmission infrastructure for a clean energy economy plan.

NRS 704.752 Establishment of just and reasonable price for energy produced by renewable energy facility excluded from rate base and revenue requirement; performance terms and conditions of facility; findings regarding facility; regulations.

NRS 704.753 Acquisition by utility of renewable energy facility from which utility was authorized to purchase electricity in plan approved by Commission.

NRS 704.754 Reports regarding transmission plan.

Disposal of Generation Assets

NRS 704.7561 Definitions.

NRS 704.7565 “Affiliate” defined.

NRS 704.7568 “Dispose of a generation asset” defined.

NRS 704.7571 “Electric utility” defined.

NRS 704.7575 “Generation asset” defined.

NRS 704.7578 “Interest in a generation asset” defined.

NRS 704.7581 “Person” defined.

NRS 704.7585 Provisions do not prohibit certain transactions involving generation assets or other property.

NRS 704.7588 Conditions and limitations on disposal of generation assets; approval of Commission required; application; parties; effect of certain orders.

NRS 704.7591 Conditions and limitations on disposal of generation assets pursuant to certain mergers, acquisitions, transactions and transfers.

NRS 704.7595 Effect of violation.

Alternative Rate-Making Plans

NRS 704.761 Definitions.

NRS 704.7611 “Alternative rate-making mechanism” defined.

NRS 704.7612 “Alternative rate-making plan” defined.

NRS 704.7613 “Decoupling mechanism” defined.

NRS 704.7614 “Earnings-sharing mechanism” defined.

NRS 704.7615 “Electric utility” defined.

NRS 704.7616 “Formula rates” defined.

NRS 704.7617 “Multi-year rate plan” defined.

NRS 704.7618 “Performance-based rates” defined.

NRS 704.7619 “Subscription pricing” defined.

NRS 704.762 Regulations establishing procedures to apply for approval of alternative rate-making plan; Commission not required to accept applications to establish plan if certain criteria not met.

NRS 704.7621 Application for establishment of alternative rate-making plan; action by Commission on application; consumer session required; investigation relating to alternative rate-making plan.

NRS 704.7622 Prohibition against construction limiting rate-making authority of Commission.

Disclosures to Customers

NRS 704.763 Electric utility required to disclose certain information concerning electric services; format, contents and methods of disclosure; regulations; exceptions.

NRS 704.764 Electric utility required to disclose certain information concerning recycling of electronic and other waste; format, contents and methods of disclosure; regulations.

Net Metering Systems

NRS 704.766 Legislative declaration.

NRS 704.767 Definitions.

NRS 704.7675 “Contiguous” defined.

NRS 704.768 “Customer-generator” defined.

NRS 704.769 “Net metering” defined.

NRS 704.771 “Net metering system” defined.

NRS 704.7715 “Renewable energy” defined.

NRS 704.772 “Utility” defined.

NRS 704.7725 Utility required to submit request to Commission to establish time-variant rate schedule designed to expand use of energy storage systems; review and approval or denial of request by Commission.

NRS 704.773 Utility required to offer net metering; limitations; rights and duties regarding energy meters and imposition of certain fees and charges; right of customer-generator to continue net metering for 20 years; regulations.

NRS 704.7732 Utility required to provide customer-generator with credit for excess electricity; amount of credit; monthly report of cumulative installed capacity of certain net metering systems.

NRS 704.774 Standards; utility prohibited from requiring certain customer-generators to meet additional requirements.

NRS 704.775 Billing; calculation of net energy measurement; treatment of excess electricity; status of net metering system under portfolio standard.

NRS 704.776 Conditions and limitations on utilities and customer-generators in open, competitive retail electric energy market. [Effective with respect to electricity customers in a service territory on the date on which the Legislature provides for an open, competitive retail electric energy market for all electricity customers within that service territory.]

Portfolio Standard

NRS 704.7801 Definitions.

NRS 704.7802 “Energy efficiency measure” defined.

NRS 704.7803 “Portfolio energy credit” defined.

NRS 704.7804 “Portfolio energy system or efficiency measure” defined.

NRS 704.7805 “Portfolio standard” defined.

NRS 704.7808 “Provider of electric service” and “provider” defined.

NRS 704.7809 “Qualified energy recovery process” defined.

NRS 704.7811 “Renewable energy” defined.

NRS 704.7815 “Renewable energy system” defined.

NRS 704.7818 “Retail customer” defined.

NRS 704.7819 “Utility provider” defined.

NRS 704.7820 Legislative findings and declarations.

NRS 704.7821 Establishment of portfolio standard; requirements; treatment of certain solar energy systems; portfolio energy credits; renewable energy contracts and energy efficiency contracts; exemptions; regulations.

NRS 704.78213 Establishment of portfolio standard for providers of new electric resources; requirements; treatment of certain solar energy systems.

NRS 704.78215 Calculation of portfolio energy credits.

NRS 704.7822 Calculation of electricity generated or acquired from certain solar photovoltaic systems.

NRS 704.7823 System that draws or creates electricity from tires deemed not to be renewable energy system; exception; calculation of electricity generated or acquired from certain systems that utilize reverse polymerization process.

NRS 704.7825 Reports; exceptions; regulations regarding additional reports.

NRS 704.78253 Reports by certain providers not subject to jurisdiction of Commission.

NRS 704.7826 Certain providers not subject to jurisdiction of Commission.

NRS 704.7827 Temporary renewable energy development program; regulations.

NRS 704.7828 Regulations; authority to carry forward or sell excess electricity; enforcement; administrative fines.

Energy Savings Goals

NRS 704.783 Definitions.

NRS 704.7831 “Cost effective” defined.

NRS 704.7832 “Electric utility” defined.

NRS 704.7833 “Energy efficiency program” defined.

NRS 704.7834 “Energy savings” defined.

NRS 704.78343 “Historically underserved community” defined.

NRS 704.78347 “Low-income household” defined.

NRS 704.7835 Legislative findings and declarations.

NRS 704.7836 Commission required to establish by regulation goals for energy savings for each utility; Commission authorized to modify goals under certain circumstances; inclusion and approval of energy efficiency plan as part of resource plan; allocation of percentage of total expenditures on energy efficiency programs to low-income households and certain customers in historically underserved communities.

Energy Efficiency and Conservation Programs

NRS 704.785 Adoption of regulations authorizing electric utility to recover amount based on effects of implementing energy efficiency and conservation programs.

Expanded Solar Access Program

NRS 704.7865 Certain electric utilities required to offer program to eligible customers in service area; limitation on size of program; regulations establishing program standards; submission of plan to implement program; review and approval or denial of plan by Commission; preferred sites for utility scale solar energy resource development.

Transportation Electrification

NRS 704.7867 Plan to accelerate transportation electrification; stakeholder engagement meetings; filing of schedules; participation to be offered on a nondiscriminatory basis; regulations.

Colorado River Commission of Nevada

NRS 704.787 Authority to sell electricity and provide transmission service and distribution service to certain customers without being subject to jurisdiction of Public Utilities Commission of Nevada; tariff for distribution service; duties of certain electric utility; regulations by Colorado River Commission of Nevada.

Capacity Allocation for New Commercial and Industrial Businesses

NRS 704.7871 Definitions. [Effective through the date on which the last contract entered into pursuant to the Program terminates, whether termination is by expiration of the terms or otherwise.]

NRS 704.7872 “Electric utility” defined. [Effective through the date on which the last contract entered into pursuant to the Program terminates, whether termination is by expiration of the terms or otherwise.]

NRS 704.7875 Economic Development Electric Rate Rider Program: Establishment; purpose; administration by Commission; electric utility required to set aside capacity determined by Commission for allocation; limitation on total amount of capacity set aside. [Effective through the date on which the last contract entered into pursuant to the Program terminates, whether termination is by expiration of the terms or otherwise.]

NRS 704.7876 Participation in Program: Application; eligibility requirements; determination and initial approval by Office of Economic Development; notice and issuance of letter of eligibility to applicant; forwarding of application and letter to Commission. [Effective through the date on which the last contract entered into pursuant to the Program terminates, whether termination is by expiration of the terms or otherwise.]

NRS 704.7877 Participation in Program: Additional requirements; contract terms and content; approval of contract by Commission; entry into contract; forwarding of contract to Office of Economic Development. [Effective through the date on which the last contract entered into pursuant to the Program terminates, whether termination is by expiration of the terms or otherwise.]

NRS 704.7881 Regulations. [Effective through the date on which the last contract entered into pursuant to the Program terminates, whether termination is by expiration of the terms or otherwise.]

Energy Storage System Procurement

NRS 704.791 Definitions.

NRS 704.792 “Electric utility” defined.

NRS 704.793 “Energy storage system” defined.

NRS 704.794 “Procure” or “procurement” defined.

NRS 704.795 Commission required to determine whether targets for the procurement of energy storage systems by electric utility is in public interest; required factors to consider; calculation of benefits and costs.

NRS 704.796 Commission to adopt regulations relating to procurement of energy storage systems if targets for procurement of energy storage systems by electric utility are in public interest.

NRS 704.797 Requirements for energy storage systems procured to meet targets.

Natural Disaster Protection Plans

NRS 704.7983 Triennial submission by electric utilities required; contents; compliance with standards for wildland-urban interface; regulations; distribution of copy of plan to certain persons; recovery of costs; authority of rural electric cooperative to submit.

Electric Infrastructure Work

NRS 704.7985 Restrictions on persons performing work on or near electric infrastructure.

Transmission Infrastructure for a Clean Energy Economy Plan

NRS 704.79871 Definitions.

NRS 704.79872 “Electric utility” defined.

NRS 704.79873 “Electric utility that primarily serves densely populated counties” defined.

NRS 704.79874 “Electric utility that primarily serves less densely populated counties” defined.

NRS 704.79875 “High-voltage transmission infrastructure” defined.

NRS 704.79876 “Transmission infrastructure for a clean energy economy plan” or “plan” defined.

NRS 704.79877 Incorporation through amendment of resource plan; purposes; authorized projects; allocation of costs between utilities submitting joint plan and recovery of costs; evaluation of certain impacts from plan implementation.

NRS 704.79878 Utility required to mitigate costs of plan implementation; utility that requests recovery of such costs required to propose rate method or mechanism to mitigate certain increase in total revenue requirement in certain general rate proceedings; acceptance or rejection of rate method or mechanism by Commission; amount of recovery if rate method or mechanism implemented.

NRS 704.79879 Amendment may be filed as amendment to resource plan.

NRS 704.7988 Modifications recommended by the Commission; actions by utility.

Regional Transmission Coordination

NRS 704.79881 Definitions.

NRS 704.79882 “Regional transmission organization” defined.

NRS 704.79883 “Task Force” defined. [Effective through December 31, 2031.]

NRS 704.79884 “Transmission provider” defined.

NRS 704.79885 “User” defined.

NRS 704.79886 Commission to require transmission providers to join regional transmission organization; waiver or delay of requirement.

NRS 704.79887 Regional Transmission Coordination Task Force: Creation; membership; members serve at pleasure of Governor and without compensation. [Effective through June 30, 2024.]

NRS 704.79887 Regional Transmission Coordination Task Force: Creation; membership; members serve at pleasure of Governor and without compensation. [Effective July 1, 2024, through December 31, 2031.]

NRS 704.79888 Regional Transmission Coordination Task Force: Meetings; working groups; guidelines for operation; quorum. [Effective through December 31, 2031.]

NRS 704.79889 Regional Transmission Coordination Task Force: Duties; biennial report. [Effective through December 31, 2031.]

NRS 704.7989 Regional Transmission Coordination Task Force: Administrative support; engagement of third-party consultant. [Effective through December 31, 2031.]

UNLAWFUL ACTS AGAINST PUBLIC UTILITIES

NRS 704.800 Unlawful acts involving trespass or theft or damage to property: Criminal penalties.

NRS 704.805 Unlawful acts involving trespass or theft or damage to property: Civil remedies.

CONSTRUCTION OF UTILITY FACILITIES: UTILITY ENVIRONMENTAL PROTECTION ACT

NRS 704.820 Short title.

NRS 704.825 Declaration of legislative findings and purpose.

NRS 704.830 Definitions.

NRS 704.834 “Appropriate federal agency” defined.

NRS 704.840 “Commence to construct” defined.

NRS 704.842 “Environmental review” defined.

NRS 704.845 “Local government” defined.

NRS 704.848 “Other permitting entity” defined.

NRS 704.850 “Person” defined.

NRS 704.855 “Public utility” and “utility” defined.

NRS 704.860 “Utility facility” defined.

NRS 704.863 Applicability.

NRS 704.865 Permit required to construct utility facility; transfer of permit; exemptions; waiver of exemption.

NRS 704.870 Requirements for filing application: Form and contents; procedure when federal agency is required to conduct environmental analysis; time for filing application; service; public notice.

NRS 704.871 Approval of application for utility facility not intended to serve customers in State.

NRS 704.873 Commission has exclusive jurisdiction to determine need for utility facilities of certain public utilities; other permitting entities precluded from considering need.

NRS 704.875 Review of application by Division of Environmental Protection of State Department of Conservation and Natural Resources.

NRS 704.877 Duty to accept and incorporate findings and conclusions of environmental review that already has been conducted; duplicative review prohibited; exception; duty to cooperate and coordinate to avoid duplication of activities.

NRS 704.880 Power of Commission to dispense with hearing for certain applications; practice and procedure at hearings.

NRS 704.885 Parties to proceeding for permit; limited appearance; intervention.

NRS 704.890 Grant or denial of permit: Required findings; conditions and modifications.

NRS 704.8905 Grant or denial of application: Time within which Commission and other permitting entities must act; determination upon record; terms, conditions and modifications; service of Commission order.

NRS 704.891 Reports to be filed with Commission by person holding permit who is not public utility.

NRS 704.893 Limitations on purchase of capacity of utility facility by certain public utilities.

NRS 704.895 Rehearing; judicial review.

NRS 704.897 Effect of provisions on jurisdiction of Commission over public utilities serving retail customers in State.

NRS 704.900 Cooperation with other states and Federal Government.

UTILITY SERVICE PROVIDED TO MANUFACTURED HOME PARKS, MOBILE HOME PARKS AND COMPANY TOWNS

NRS 704.905 Definitions.

NRS 704.910 Applicability of provisions to manufactured home parks and mobile home parks; utility or alternative seller prohibited from selling to landlord at higher rate.

NRS 704.920 Applicability of provisions to company towns; examination and testing of lines and equipment by utility or alternative seller which provides services to manufactured home park, mobile home park or company town; payment of costs of such examination and testing by owner; consequences of refusal to allow examination and testing; repair of unsafe lines or equipment.

NRS 704.930 Manner of provision and interruption of service by landlord of manufactured home park or mobile home park or owner of company town; notice of proposed increase in rates.

NRS 704.940 Rates; service charges; proration and limitations on certain charges for water; itemization of charges; retention of copy of billings; transfer of balance by landlord upon termination of interest in manufactured home park or mobile home park; authority of Commission to examine books and records.

NRS 704.950 Complaints: Investigation by Division of Consumer Complaint Resolution; action by Commission; enforcement of order.

NRS 704.960 Annual report to be filed by landlord of manufactured home park or mobile home park or owner of company town; regulations.

LIQUEFIED PETROLEUM GAS SERVICE

NRS 704.964 Lease of tank for storage of liquefied petroleum gas: Removal of tank upon request; requirements for refund; penalty.

NATURAL GAS SERVICE

Discretionary Service

NRS 704.9901 Collection of taxes, fees and assessments from customers: Duties of providers; billing requirements; disciplinary action for failure to comply.

Resource Planning and Programs of Economic Development

NRS 704.99051 Definitions.

NRS 704.99052 “Carbon capture, use and storage” defined.

NRS 704.99053 “Carbon-neutral natural gas” defined.

NRS 704.99054 “Carbon offset” defined.

NRS 704.99055 “Energy efficiency and conservation” defined.

NRS 704.99056 “Greenhouse gas” defined.

NRS 704.99057 “Load management” defined.

NRS 704.99058 “Responsibly sourced or transported natural gas” defined.

NRS 704.99059 “Significant operational or capital requirements” defined.

NRS 704.991 Plan to meet needs for natural gas at lowest reasonable cost: Triennial filing required; contents prescribed by regulation; requirement to provide overview to certain persons before filing.

NRS 704.9913 Public hearing on adequacy of plan; determination by Commission.

NRS 704.9915 Order accepting or modifying plan or amendment to plan or specifying inadequacies; recovery of prudently incurred costs.

NRS 704.9917 Filing of general rate application at certain times prohibited.

NRS 704.992 Establishment of mechanism for recovery of costs by public utility without regard to difference in quantity of natural gas sold.

NRS 704.9925 Authority for utility which purchases natural gas for resale to expand infrastructure consistent with program of economic development; procedures for recovery of costs associated with certain activities; regulations.

Competitive Service

NRS 704.993 Definitions.

NRS 704.994 “Alternative seller” defined.

NRS 704.995 “Person” defined.

NRS 704.996 “Potentially competitive service” defined.

NRS 704.997 Alternative plan of regulation for utility that supplies natural gas: Requirements; regulations; applicability of statutory provisions; use of name or logo by affiliate; sale of service relating to supply of natural gas by unlicensed alternative seller unlawful.

NRS 704.998 Licensing of alternative sellers: Requirements; regulations; denial, limitation, suspension or revocation.

NRS 704.9985 Collection of taxes, fees and assessments from customers: Duties of public utilities and alternative sellers; billing requirements; disciplinary action for failure to comply.

NRS 704.999 Restoration of service: Conditions; tariffs.

Renewable Natural Gas Activities

NRS 704.9991 Definitions.

NRS 704.9992 “Biogas” defined.

NRS 704.9993 “Environmental attributes” defined.

NRS 704.9994 “Renewable energy” defined.

NRS 704.9995 “Renewable natural gas” defined.

NRS 704.9996 “Renewable natural gas facility” defined.

NRS 704.9997 Regulations authorizing renewable natural gas activities; approval of activities; recovery of costs; activities authorized to be approved; incorporation of renewable natural gas into gas supply portfolio.

_________

GENERAL PROVISIONS

NRS 704.001 Purpose and policy of Legislature in enacting chapter. It is hereby declared to be the purpose and policy of the Legislature in enacting this chapter:

1. To confer upon the Commission the power, and to make it the duty of the Commission, to regulate public utilities to the extent of its jurisdiction;

2. To provide for fair and impartial regulation of public utilities;

3. To provide for the safe, economic, efficient, prudent and reliable operation and service of public utilities;

4. To balance the interests of customers and shareholders of public utilities by providing public utilities with the opportunity to earn a fair return on their investments while providing customers with just and reasonable rates; and

5. With regard to telecommunication service:

(a) To regulate competitive suppliers in a manner that allows customers to benefit from full competition regarding rates and services;

(b) To provide for basic network service to economically disadvantaged persons who are eligible for a reduction in rates for telephone service pursuant to NRS 707.400 to 707.500, inclusive; and

(1) The levy and collection of a uniform and equitable assessment from all persons furnishing intrastate telecommunication service or the functional equivalent of such service through any form of telephony technology; and

(2) Payments to telecommunication providers from the fund to maintain the availability of telephone service.

(Added to NRS by 1993, 836; A 1997, 1904; 2007, 692)

NRS 704.005 Definitions. As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 704.006 to 704.028, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 1985, 1016; A 2001, 3244; 2007, 693; 2021, 1748)

NRS 704.006 “Basic network service” defined. “Basic network service” means the provision of stand-alone telephone service furnished to a residential customer that:

1. Is not:

(a) Part of a package of services;

(b) Sold in a promotion;

(d) Otherwise offered at a discounted price; and

2. Provides to the customer:

(a) Voice-grade access to the public switched telephone network;

(b) Access to:

(1) Telephone relay services;

(2) Interexchange service; and

(3) Emergency 911 service;

(d) Universal lifeline service for those eligible for such service.

(Added to NRS by 2007, 685; A 2013, 1947)

NRS 704.007 “Biomass” defined. “Biomass” means any organic matter that is available on a renewable basis, including, without limitation:

1. Agricultural crops and agricultural wastes and residues;

2. Wood and wood wastes and residues;

3. Animal wastes;

4. Municipal wastes; and

5. Aquatic plants.

(Added to NRS by 2001, 3242)

NRS 704.008 “Business line service” defined. “Business line service” means flat or measured rate service for business lines or business trunk lines.

(Added to NRS by 2007, 685)

NRS 704.010 “Commission” defined. “Commission” means the Public Utilities Commission of Nevada.

(Supplied in revision; A 1985, 1016; 1997, 1904)

NRS 704.011 “Competitive supplier” defined.

1. “Competitive supplier” means a telecommunication provider that is subject to the provisions of NRS 704.68861 to 704.68887, inclusive.

2. The term does not include a small-scale provider of last resort unless the provider is authorized by the Commission pursuant to NRS 704.68869 to be regulated as a competitive supplier.

(Added to NRS by 2007, 685; A 2013, 1947)

NRS 704.012 “Consumer’s Advocate” defined. “Consumer’s Advocate” means the Consumer’s Advocate of the Bureau of Consumer Protection in the Office of the Attorney General.

(Added to NRS by 2001, 3242)

NRS 704.0125 “Correctional facility” defined. “Correctional facility” means a local detention facility, county, city or town jail, state prison, facility for the detention of juvenile offenders, reformatory or other correctional facility.

(Added to NRS by 2021, 1747)

NRS 704.013 “Fund to maintain the availability of telephone service” defined. “Fund to maintain the availability of telephone service” means the fund established by the Commission pursuant to NRS 704.040 to maintain the availability of telephone service.

(Added to NRS by 2007, 685)

NRS 704.0135 “Incumbent local exchange carrier” defined. “Incumbent local exchange carrier” has the meaning ascribed to it in 47 U.S.C. § 251(h)(1), as that section existed on October 1, 1999, and includes a local exchange carrier that is treated as an incumbent local exchange carrier pursuant to that section.

(Added to NRS by 2007, 685)

NRS 704.0136 “Inmate calling service” defined. “Inmate calling service” means a calling service that allows a person confined in a correctional facility to make intrastate calls to persons outside the correctional facility in which the person is being confined, regardless of the technology used to deliver the service.

(Added to NRS by 2021, 1747)

NRS 704.0137 “Interexchange carrier” defined. “Interexchange carrier” means any person providing either or both intrastate and interstate telecommunication service for a fee between two or more exchanges.

(Added to NRS by 2007, 685)

NRS 704.014 “Local exchange carrier” defined. “Local exchange carrier” has the meaning ascribed to it in 47 U.S.C. § 153(26), as that section existed on December 1, 2006.

(Added to NRS by 2007, 685)

NRS 704.015 “Person” defined. “Person” is limited to a person engaged in or intending to engage in the operation of a public utility.

(Added to NRS by 1969, 1161; A 1985, 539, 1016)

NRS 704.018 “Provider of last resort” defined. “Provider of last resort” means the telecommunication provider designated by the regulations of the Commission to provide basic network service and business line service to any person requesting and eligible to receive telephone service in a particular service territory.

(Added to NRS by 2007, 685)

NRS 704.020 “Public utility” or “utility” defined.

1. “Public utility” or “utility” includes:

(a) Any person who owns, operates, manages or controls any railroad or part of a railroad as a common carrier in this State, or cars or other equipment used thereon, or bridges, terminals, or sidetracks, or any docks or wharves or storage elevators used in connection therewith, whether or not they are owned by the railroad.

(b) Any person, other than a provider of commercial mobile radio service, that provides a telecommunication service to the public, but only with regard to those operations which consist of providing a telecommunication service to the public.

(1) Must be regulated in a manner consistent with federal law; and

(2) Must not be regulated as telecommunication providers for the purposes of this chapter.

2. “Public utility” or “utility” also includes:

(a) Any plant or equipment, or any part of a plant or equipment, within this State for the production, delivery or furnishing for or to other persons, including private or municipal corporations, heat, gas, coal slurry, light, power in any form or by any agency, water for business, manufacturing, agricultural or household use, or sewerage service, whether or not within the limits of municipalities.

(b) Any system for the distribution of liquefied petroleum gas to 10 or more users.

Ê The Commission may supervise, regulate and control all such utilities, subject to the provisions of this chapter and to the exclusion of the jurisdiction, regulation and control of such utilities by any municipality, town or village, unless otherwise provided by law.

3. The provisions of this chapter and the term “public utility” apply to all railroads, express companies, car companies and all associations of persons, whether or not incorporated, that do any business as a common carrier upon or over any line of railroad within this State.

[Part 7:109:1919; A 1925, 243; 1928, 58; NCL § 6106]—(NRS A 1963, 10, 811, 1115; 1967, 1230; 1969, 1155; 1971, 724; 1977, 630; 1981, 154; 1983, 154; 1985, 1016, 2049; 1987, 1541; 1997, 1904; 2003, 3036; 2007, 693, 1771)

NRS 704.021 “Public utility” or “utility” further defined. “Public utility” or “utility” does not include:

1. Persons engaged in the production and sale of natural gas, other than sales to the public, or engaged in the transmission of natural gas other than as a common carrier transmission or distribution line or system.

2. Persons engaged in the business of furnishing, for compensation, water or services for the disposal of sewage, or both, to persons within this State if:

(a) They serve 25 persons or less; and

(b) Their gross sales for water or services for the disposal of sewage, or both, amounted to $25,000 or less during the immediately preceding 12 months.

3. Persons not otherwise engaged in the business of furnishing, producing or selling water or services for the disposal of sewage, or both, but who sell or furnish water or services for the disposal of sewage, or both, as an accommodation in an area where water or services for the disposal of sewage, or both, are not available from a public utility, cooperative corporations and associations or political subdivisions engaged in the business of furnishing water or services for the disposal of sewage, or both, for compensation, to persons within the political subdivision.

4. Persons who are engaged in the production and sale of energy, including electricity, to public utilities, cities, counties or other entities which are reselling the energy to the public.

5. Persons who are subject to the provisions of NRS 590.465 to 590.645, inclusive.

6. Persons who are engaged in the sale or use of special fuel as defined in NRS 366.060.

7. Persons who provide water from water storage, transmission and treatment facilities if those facilities are for the storage, transmission or treatment of water from mining operations.

8. Persons who are video service providers, as defined in NRS 711.151, except for those operations of the video service provider which consist of providing a telecommunication service to the public, in which case the video service provider is a public utility only with regard to those operations of the video service provider which consist of providing a telecommunication service to the public.

9. Persons who own or operate a net metering system described in paragraph (c) of subsection 1 of NRS 704.771.

10. Persons who own or operate a net metering system or systems described in paragraph (a) of subsection 1 of NRS 704.771 and deliver electricity to multiple persons, units or spaces on the premises if:

(a) The electricity is delivered only to persons, units or spaces located on the premises on which the net metering system or systems are located;

(b) The residential or commercial units or spaces do not have individual meters measuring electricity use by an individual unit or space; and

(c) Persons occupying the individual units or spaces are not charged for electricity based upon volumetric usage at the person’s individual unit or space.

11. Persons who for compensation own or operate individual systems which use renewable energy to generate electricity and sell the electricity generated from those systems to not more than one customer of the public utility per individual system if each individual system is:

(a) Located on the premises of another person;

(b) Used to produce not more than 150 percent of that other person’s requirements for electricity on an annual basis for the premises on which the individual system is located; and

(c) Not part of a larger system that aggregates electricity generated from renewable energy for resale or use on premises other than the premises on which the individual system is located.

Ê As used in this subsection, “renewable energy” has the meaning ascribed to it in NRS 704.7715.

12. Persons who own, control, operate or manage a facility that supplies electricity only for use to charge electric vehicles.

13. Any plant or equipment that is used by a data center to produce, deliver or furnish electricity at agreed-upon prices for or to persons on the premises of the data center for the sole purpose of those persons storing, processing or distributing data, but only with regard to those operations which consist of providing electric service. As used in this subsection, “data center” has the meaning ascribed to it in NRS 360.754.

[Part 7:109:1919; A 1925, 243; 1928, 58; NCL § 6106]—(NRS A 1963, 403, 816; 1969, 1001; 1971, 725, 1208; 1979, 1717; 1981, 661; 1983, 234, 1227; 1985, 1017, 2298; 1987, 477, 1388, 1542; 1997, 1905; 2001, 346; 2007, 489, 1351; 2009, 1201, 1392; 2011, 1940; 2017, 1269; 2019, 12, 3513; 2021, 3790)

NRS 704.023 “Small-scale provider of last resort” defined. “Small-scale provider of last resort” means an incumbent local exchange carrier that is a provider of last resort of basic network service and business line service to customers through less than 60,000 access lines.

(Added to NRS by 2007, 686)

NRS 704.025 “Telecommunication” defined. “Telecommunication” means the transmission, between or among points specified by the user, of information of the user’s choosing, without change in the form or content of the information sent and received, regardless of the facilities, equipment or technology used.

(Added to NRS by 2007, 686)

NRS 704.027 “Telecommunication provider” or “telephone company” defined. “Telecommunication provider” or “telephone company” means any person required to obtain from the Commission a certificate of public convenience and necessity pursuant to NRS 704.330 to provide telecommunication service.

(Added to NRS by 2007, 686)

NRS 704.028 “Telecommunication service” or “telephone service” defined. “Telecommunication service” or “telephone service” means the offering of telecommunication for a fee directly to the public, or such classes of users as to be effectively available directly to the public, regardless of the equipment, facilities or technology used.

(Added to NRS by 2007, 686)

NRS 704.031 Power to subpoena person claiming exemption. The Commission may by subpoena require any person claiming to be exempt from regulation by reason of NRS 704.021 to appear before it with all of the person’s relevant books, papers and records, and to testify concerning the scope, nature and conduct of the person’s business.

(Added to NRS by 1983, 234)

NRS 704.032 Participation of Office of Economic Development in proceedings before Commission. The Office of Economic Development may participate in proceedings before the Public Utilities Commission of Nevada concerning a public utility in the business of supplying electricity or natural gas to advocate the accommodation of the State Plan for Economic Development developed by the Executive Director of the Office pursuant to subsection 2 of NRS 231.053. The Office of Economic Development may intervene as a matter of right in a proceeding pursuant to NRS 704.736 to 704.754, inclusive, or 704.991.

(Added to NRS by 1993, 818; A 1997, 1906; 2011, 3483; 2017, 2471)

ANNUAL ASSESSMENTS AND LICENSING FEES

NRS 704.033 Levy and collection of and limitations on annual assessment; payment of annual licensing fee by providers of commercial mobile radio service.

1. Except as otherwise provided in subsection 6, the Commission shall levy and collect an annual assessment from all public utilities, providers of new electric resources, providers of discretionary natural gas service and alternative sellers subject to the jurisdiction of the Commission.

2. Except as otherwise provided in subsections 3 and 4, the annual assessment must be:

(a) For the use of the Commission, not more than 3.50 mills; and

(b) For the use of the Consumer’s Advocate, not more than 0.75 mills,

Ê on each dollar of gross operating revenue derived from the intrastate operations of such utilities, providers of new electric resources, providers of discretionary natural gas service and alternative sellers in the State of Nevada. The total annual assessment must be not more than 4.25 mills.

3. The levy for the use of the Consumer’s Advocate must not be assessed against railroads.

4. The minimum assessment in any 1 year must be $100.

5. The gross operating revenue of the utilities must be determined for the preceding calendar year. In the case of:

(a) Telecommunication providers, except as provided in paragraph (c), the revenue shall be deemed to be all intrastate revenues.

(b) Railroads, the revenue shall be deemed to be the revenue received only from freight and passenger intrastate movements.

(c) All public utilities, providers of new electric resources, providers of discretionary natural gas service and alternative sellers, the revenue does not include the proceeds of any commodity, energy or service furnished to another public utility, provider of new electric resources, provider of discretionary natural gas service or alternative seller for resale.

6. Providers of commercial mobile radio service are not subject to the annual assessment and, in lieu thereof, shall pay to the Commission an annual licensing fee of $200.

7. “Provider of new electric resources” has the meaning ascribed to it in NRS 704B.130.

(Added to NRS by 1963, 1113; A 1965, 543; 1969, 1001; 1971, 726; 1973, 331, 1832; 1975, 907; 1977, 548; 1981, 1678; 1983, 531; 1989, 618; 1997, 1906; 2001, 1762, 3244, 3272; 2003, 235; 2007, 694; 2009, 1393, 2017; 2019, 3514)

NRS 704.035 Annual assessment: Report on revenue; computation, payment and adjustment of assessment; fee for delinquent assessment; action for collection; transfer to Consumer’s Advocate.

1. On or before June 15 of each year, the Commission shall mail revenue report forms to all public utilities, providers of new electric resources, providers of discretionary natural gas service and alternative sellers under its jurisdiction, to the address of those utilities, providers of new electric resources, providers of discretionary natural gas service and alternative sellers on file with the Commission. The revenue report form serves as notice of the Commission’s intent to assess such entities, but failure to notify any such entity does not invalidate the assessment with respect thereto.

2. Each public utility, provider of new electric resources, provider of discretionary natural gas service and alternative seller subject to the provisions of NRS 704.033 shall complete the revenue report referred to in subsection 1, compute the assessment and return the completed revenue report to the Commission accompanied by payment of the assessment and any fee due, pursuant to the provisions of subsection 5.

3. The assessment is due on July 1 of each year, but may, at the option of the public utility, provider of new electric resources, provider of discretionary natural gas service and alternative seller, be paid quarterly on July 1, October 1, January 1 and April 1.

4. The assessment computed by the public utility, provider of new electric resources, provider of discretionary natural gas service or alternative seller is subject to review and audit by the Commission, and the amount of the assessment may be adjusted by the Commission as a result of the audit and review.

5. Any public utility, provider of new electric resources, provider of discretionary natural gas service or alternative seller failing to pay the assessment provided for in NRS 704.033 on or before August 1, or if paying quarterly, on or before August 1, October 1, January 1 or April 1, shall pay, in addition to such assessment, a fee of 1 percent of the total unpaid balance for each month or portion thereof that the assessment is delinquent, or $10, whichever is greater, but no fee may exceed $1,000 for each delinquent payment.

6. When a public utility, provider of new electric resources, provider of discretionary natural gas service or alternative seller sells, transfers or conveys substantially all of its assets or, if applicable, its certificate of public convenience and necessity or license, the Commission shall determine, levy and collect the accrued assessment for the current year not later than 30 days after the sale, transfer or conveyance, unless the transferee has assumed liability for the assessment. For purposes of this subsection, the jurisdiction of the Commission over the selling, transferring or conveying public utility, provider of new electric resources, provider of discretionary natural gas service or alternative seller continues until it has paid the assessment.

7. The Commission may bring an appropriate action in its own name for the collection of any assessment and fee which is not paid as provided in this section.

8. The Commission shall, upon collection, transfer to the Account for the Consumer’s Advocate that portion of the assessments collected which belongs to the Consumer’s Advocate.

9. “Provider of new electric resources” has the meaning ascribed to it in NRS 704B.130.

(Added to NRS by 1963, 1113; A 1967, 1383; 1969, 1156; 1973, 457, 1833; 1981, 1678; 1989, 1473; 1997, 1907; 2001, 1763, 3244, 3272; 2003, 372; 2005, 1276; 2007, 36; 2019, 3515)

GENERAL RIGHTS AND OBLIGATIONS

1. Every public utility shall furnish reasonably adequate service and facilities. Subject to the provisions of subsection 3, the charges made for any service rendered or to be rendered, or for any service in connection therewith or incidental thereto, must be just and reasonable.

2. Every unjust and unreasonable charge for service of a public utility is unlawful.

3. Except as otherwise provided in NRS 704.68861 to 704.68887, inclusive:

(a) A competitive supplier is exempt from any provision of this chapter governing the rates, prices, terms and conditions of any telecommunication service.

(b) A small-scale provider of last resort is subject to the provisions of this chapter, NRS 427A.797 and chapter 707 of NRS.

4. All telecommunication providers which offer the same or similar service must be subject to fair and impartial regulation, to promote adequate, economical and efficient service.

5. To maintain the availability of telephone service in accordance with the regulations adopted pursuant to NRS 704.6873, the Commission shall provide for the levy and collection of a uniform and equitable assessment, in an amount determined by the Commission, from all persons furnishing intrastate telecommunication service or the functional equivalent of such service through any form of telephony technology, unless the levy and collection of the assessment with regard to a particular form of technology is prohibited by federal law. Assessments levied and collected pursuant to this subsection must be maintained in a separate fund established by the Commission. The Commission shall contract with an independent administrator to administer the fund pursuant to open competitive bidding procedures established by the Commission. The independent administrator shall collect the assessments levied and distribute them from the fund pursuant to a plan which has been approved by the Commission.

6. The Commission shall by regulation establish:

(a) The procedure for contracting with an independent administrator who will certify or recertify the eligibility of customers for lifeline service as defined in NRS 707.450, including:

(1) The selection of the independent administrator pursuant to open competitive bidding procedures established by the Commission; and

(2) The duties of the independent administrator which must be promulgated in advance of conducting the initial request for proposal for the independent administrator.

(b) The duties of the independent administrator which must:

(1) Be determined by criteria adopted by the Commission or the Federal Communications Commission;

(2) Provide for the independent administrator to be able to accomplish all functions necessary for interfacing with the National Lifeline Accountability Database when it is established and operational pursuant to 47 C.F.R. § 54.404 and any other national eligibility database for eligible telecommunication providers; and

(3) Require the independent administrator to be responsible for informing eligible telecommunication providers of the status of their customers’ eligibility to receive lifeline service as defined in NRS 707.450.

7. To implement the requirements of subsections 5 and 6, the Commission:

(a) May select a single entity to perform the duties of subsections 5 and 6;

(b) Is authorized to use the fund set forth in subsection 5 for the sole purpose of maintaining the availability of telephone service as set forth in subsections 5 and 6; and

(c) May, in accordance with the terms of a contract entered into with an independent administrator pursuant to subsection 6, terminate the service to certify or recertify the eligibility of customers for lifeline service, as defined in NRS 707.450, if the National Lifeline Eligibility Verifier, as defined in 47 C.F.R. § 54.400, is able to certify and recertify the eligibility of customers in this State for lifeline service.

[9:109:1919; 1919 RL p. 3157; NCL § 6108]—(NRS A 1985, 1018; 1989, 579; 1993, 2017; 1995, 402; 2003, 2638, 3037; 2007, 694; 2009, 2406; 2013, 1808; 2017, 512)

NRS 704.050 Special contract rates.

1. Nothing in this chapter shall be construed to prevent concentration, commodity, transit and other special contract rates, but all such rates shall be open to all shippers of a like kind of traffic under similar circumstances and conditions, and shall be subject to the provisions of this chapter as to the printing and filing of the same.

2. All such rates shall be under the supervision and regulation of the Commission.

[16:109:1919; 1919 RL p. 3159; NCL § 6115]

NRS 704.060 Charge for shorter haul included within longer haul. Nothing in this chapter shall be construed:

1. To allow any railroad to charge more for a shorter than for a longer haul, either for passengers or freight, when the shorter haul is included within the longer; or

2. To authorize the Commission to allow such charge to be made.

[20:109:1919; 1919 RL p. 3161; NCL § 6120]

RATES AND SCHEDULES

NRS 704.061 Definitions. As used in NRS 704.061 to 704.110, inclusive, unless the context otherwise requires, the words and terms defined in NRS 704.062, 704.065 and 704.066 have the meanings ascribed to them in those sections.

(Added to NRS by 2001, 3243; A 2013, 740; 2021, 3791)

NRS 704.062 “Application to make changes in any schedule” and “application” defined. “Application to make changes in any schedule” and “application” include, without limitation:

1. A general rate application;

2. An application to recover the cost of purchased fuel, purchased power, or natural gas purchased for resale;

3. An annual deferred energy accounting adjustment application; and

4. An annual rate adjustment application.

(Added to NRS by 2001, 3243; A 2007, 2978; 2011, 384)

NRS 704.065 “Rate” defined. “Rate” means any individual or joint rate, toll or charge imposed by a public utility for a service performed or product furnished by the public utility.

(Added to NRS by 2001, 3243)

NRS 704.066 “Schedule” defined. “Schedule” means any schedule that establishes or otherwise sets the rates for a public utility and any individual or joint rule, regulation, practice, classification or measurement that in any manner affects those rates.

(Added to NRS by 2001, 3243)

NRS 704.068 Acts deemed to be change in schedule. For the purposes of NRS 704.061 to 704.110, inclusive, a public utility shall be deemed to make changes in a schedule if the public utility implements a new schedule or amends an existing schedule.

(Added to NRS by 2001, 3243; A 2013, 740)

1. Except as otherwise provided in subsections 9 and 11 of NRS 704.110, the Commission shall conduct a consumer session to solicit comments from the public in any matter pending before the Commission pursuant to NRS 704.061 to 704.110, inclusive, in which:

(a) A public utility has filed a general rate application, an application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale, an annual deferred energy accounting adjustment application pursuant to NRS 704.187 or an annual rate adjustment application; and

(b) The changes proposed in the application will result in an increase in annual gross operating revenue, as certified by the applicant, in an amount that will exceed $50,000 or 10 percent of the applicant’s annual gross operating revenue, whichever is less.

2. In addition to the case-specific consumer sessions required by subsection 1, the Commission shall, during each calendar year, conduct at least one general consumer session in the county with the largest population in this State and at least one general consumer session in the county with the second largest population in this State. At each general consumer session, the Commission shall solicit comments from the public on issues concerning public utilities. Not later than 60 days after each general consumer session, the Commission shall submit the record from the general consumer session to the Legislative Commission.

(Added to NRS by 2001, 3243; A 2005, 1919; 2007, 2978; 2011, 384; 2013, 740)

NRS 704.070 Public utility required to file current schedules with Commission and to post current schedules at certain offices; public inspection of current schedules. Except as otherwise provided in NRS 704.075, 704.095, 704.097 and 704.68861 to 704.68887, inclusive:

1. Each public utility shall file with the Commission, within a time to be fixed by the Commission, a copy of all schedules that are currently in force for the public utility. Such schedules must be open to public inspection.

2. A copy of each schedule that is currently in force for the public utility, or so much of the schedule as the Commission deems necessary for inspection by the public, must be:

(a) Printed in plain type and posted in each office of the public utility where payments are made to the public utility by its customers; and

(b) Open to inspection by the public and in such form and place as to be readily accessible to and conveniently inspected by the public.

[Part 14:109:1919; A 1933, 228; 1931 NCL § 6113]—(NRS A 1985, 1126; 1989, 1834; 2001, 3245; 2007, 696)

NRS 704.075 Separate standards for rates for natural gas supplied to generating, industrial and large commercial customers; exemption from certain provisions concerning rates.

1. As used in this section, with respect to the sale of natural gas:

(a) “Generating customer” means a customer who generates electricity by burning natural gas.

(b) “Industrial customer” means a customer engaged primarily in manufacturing or processing which changes raw or unfinished materials into another form or creates another product.

(c) “Large commercial customer” means a customer whose requirements equal or exceed 50,000 cubic feet of natural gas per day on any day and which is an institution, an agency of federal, state or local government, or engaged primarily in renting out offices or other commercial space, in providing lodging or in the sale of other goods or services.

2. The Commission shall establish standards for the setting, increase or decrease of rates for natural gas to generating, industrial and large commercial customers. These standards must authorize increases or decreases on less than 30 days’ notice. Establishing different classes of customers, and charging different rates to customers of the same class, for these customers do not violate this chapter.

3. The Commission may, for sales to generating, industrial and large commercial customers:

(a) Exempt the rates for natural gas from those provisions of NRS 704.070, 704.100 and 704.110 that the Commission determines are not needed to protect the public interest.

(b) Authorize the establishment of different classes of customer or the charging of different rates for customers of the same class, based on value of the service and on the customer’s ability to change from one fuel to another.

(Added to NRS by 1985, 1125; A 2001, 3246)

NRS 704.085 Electric utility prohibited from making change in schedule or imposing rate which requires residential customer to purchase electric service based on time of usage; exceptions.

1. Except as otherwise provided in subsection 2, an electric utility shall not make changes in any schedule or impose any rate, and the Commission shall not approve any changes in any schedule or authorize the imposition of any rate by an electric utility, which requires a residential customer to purchase electric service at a rate which is based on the time of day, day of the week or time of year during which the electricity is used or which otherwise varies based upon the time during which the electricity is used, except that the Commission may approve such a change in a schedule or authorize the imposition of such a rate if the approval or authorization is conditioned upon an election by a residential customer to purchase electric service at such a rate.

2. The provisions of subsection 1 do not apply to any changes in a schedule or rates imposed on a customer-generator.

3. As used in this section:

(a) “Customer-generator” has the meaning ascribed to it in NRS 704.768.

(b) “Electric utility” has the meaning ascribed to it in NRS 704.187.

(Added to NRS by 2013, 740; A 2015, 2149)

NRS 704.095 Simplified procedures or methodologies for changing rates for certain public utilities furnishing water or services for sewage; regulations.

1. The Commission shall adopt regulations which provide simplified procedures or methodologies for a change of rates for those public utilities which furnish water or services for the disposal of sewage, or both, to persons within this State for compensation, and which:

(a) Serve 3,000 or fewer persons; and

(b) Had during the immediately preceding 12-month period gross sales for water or services for the disposal of sewage amounting to $2,000,000 or less. If a public utility furnishes both water and services for the disposal of sewage, its gross sales for each service must be considered separately for determining whether the public utility qualifies under this paragraph for either service.

2. The regulations adopted by the Commission pursuant to subsection 1 must provide, without limitation, for the filing of letters of advice to change rates based on a nationally recognized inflation index approved by the Commission.

(Added to NRS by 1979, 1717; A 1987, 477; 1991, 144; 2001, 1764; 2009, 2470)

NRS 704.097 Simplified procedures for obtaining certificate of public convenience and necessity and for changing rates for public utilities furnishing only liquefied petroleum gas; regulations. The Commission may adopt regulations which provide simplified procedures for obtaining certificates of public convenience and necessity and for changing rates for those public utilities which furnish only liquefied petroleum gas.

(Added to NRS by 1989, 1834)

1. Except as otherwise provided in NRS 704.075, 704.68861 to 704.68887, inclusive, 704.7865 and 704.7867, or as may otherwise be provided by the Commission pursuant to NRS 704.095, 704.097 or 704.7621:

(a) A public utility shall not make changes in any schedule, unless the public utility:

(1) Files with the Commission an application to make the proposed changes and the Commission approves the proposed changes pursuant to NRS 704.110; or

(2) Files the proposed changes with the Commission using a letter of advice in accordance with the provisions of paragraph (f) or (g).

(b) A public utility shall adjust its rates on a quarterly basis between annual rate adjustment applications pursuant to subsection 8 of NRS 704.110 based on changes in the public utility’s recorded costs of natural gas purchased for resale.

(c) An electric utility shall, between annual deferred energy accounting adjustment applications filed pursuant to NRS 704.187, adjust its rates on a quarterly basis pursuant to subsection 10 of NRS 704.110.

(d) A public utility shall post copies of all proposed schedules and all new or amended schedules in the same offices and in substantially the same form, manner and places as required by NRS 704.070 for the posting of copies of schedules that are currently in force.

(e) A public utility may not set forth as justification for a rate increase any items of expense or rate base that previously have been considered and disallowed by the Commission, unless those items are clearly identified in the application and new facts or considerations of policy for each item are advanced in the application to justify a reversal of the prior decision of the Commission.

(f) Except as otherwise provided in paragraph (g), if the proposed change in any schedule does not change any rate or will result in an increase in annual gross operating revenue in an amount that does not exceed $15,000:

(1) The public utility may file the proposed change with the Commission using a letter of advice in lieu of filing an application; and

(2) The Commission shall determine whether it should dispense with a hearing regarding the proposed change.

Ê A letter of advice filed pursuant to this paragraph must include a certification by the attorney for the public utility or an affidavit by an authorized representative of the public utility that to the best of the signatory’s knowledge, information and belief, formed after a reasonable inquiry, the proposed change in schedule does not change any rate or result in an increase in the annual gross operating revenue of the public utility in an amount that exceeds $15,000.

(g) If the applicant is a small-scale provider of last resort and the proposed change in any schedule will result in an increase in annual gross operating revenue in an amount that does not exceed $50,000 or 10 percent of the applicant’s annual gross operating revenue, whichever is less:

(1) The small-scale provider of last resort may file the proposed change with the Commission using a letter of advice in lieu of filing an application if the small-scale provider of last resort:

(I) Includes with the letter of advice a certification by the attorney for the small-scale provider of last resort or an affidavit by an authorized representative of the small-scale provider of last resort that to the best of the signatory’s knowledge, information and belief, formed after a reasonable inquiry, the proposed change in schedule does not change any rate or result in an increase in the annual gross operating revenue of the small-scale provider of last resort in an amount that exceeds $50,000 or 10 percent, whichever is less;

(II) Demonstrates that the proposed change in schedule is required by or directly related to a regulation or order of the Federal Communications Commission; and

(III) Except as otherwise provided in subsection 2, files the letter of advice not later than 5 years after the Commission has issued a final order on a general rate application filed by the applicant in accordance with subsection 3 of NRS 704.110; and

(2) The Commission shall determine whether it should dispense with a hearing regarding the proposed change.

Ê Not later than 10 business days after the filing of a letter of advice pursuant to subparagraph (1), the Regulatory Operations Staff of the Commission or any other interested party may file with the Commission a request that the Commission order an applicant to file a general rate application in accordance with subsection 3 of NRS 704.110. The Commission may hold a hearing to consider such a request.

(h) In making the determination pursuant to paragraph (f) or (g), the Commission shall first consider all timely written protests, any presentation that the Regulatory Operations Staff of the Commission may desire to present, the application of the public utility and any other matters deemed relevant by the Commission.

2. An applicant that is a small-scale provider of last resort may submit to the Commission a written request for a waiver of the 5-year period specified in sub-subparagraph (III) of subparagraph (1) of paragraph (g) of subsection 1. The Commission shall, not later than 90 days after receipt of such a request, issue an order approving or denying the request. The Commission may approve the request if the applicant provides proof satisfactory to the Commission that the applicant is not earning more than the rate of return authorized by the Commission and that it is in the public interest for the Commission to grant the request for a waiver. The Commission shall not approve a request for a waiver if the request is submitted later than 7 years after the issuance by the Commission of a final order on a general rate application filed by the applicant in accordance with subsection 3 of NRS 704.110. If the Commission approves a request for a waiver submitted pursuant to this subsection, the applicant shall file the letter of advice pursuant to subparagraph (1) of paragraph (g) of subsection 1 not earlier than 120 days after the date on which the applicant submitted the request for a waiver pursuant to this subsection, unless the order issued by the Commission approving the request for a waiver specifies a different period for the filing of the letter of advice.

3. As used in this section, “electric utility” has the meaning ascribed to it in NRS 704.187.

[14:109:1919; A 1933, 228; 1931 NCL § 6113]—(NRS A 1971, 1117; 1975, 1450; 1979, 1718; 1985, 636, 1126; 1987, 653, 1694; 1989, 1834; 2001, 3246; 2003, 3038; 2005, 1919; 2007, 696, 2978; 2011, 385; 2013, 197; 2015, 280; 2019, 1191, 2314; 2021, 3791)

NRS 704.102 Procedure for changing schedule: No presumption that recorded expenses, investments or other costs included in application were prudently incurred; exception; burden of proof. Except as otherwise provided in this chapter, when the Commission reviews an application to make changes in any schedule, there is no presumption that any recorded expenses, investments or other costs included in the application were prudently incurred, unless the Commission has previously determined that such expenses, investments or other costs were prudently incurred. The public utility has the burden of proving that an expense, investment or cost was reasonably and prudently incurred.

(Added to NRS by 2021, 3789)

NRS 704.110 Procedure for changing schedule: Investigation by Commission; parties; time within which Commission must act; general rate application; other applications and rate adjustments; deferred energy accounting adjustments; recovery of costs to plan, construct, retire or eliminate certain facilities. Except as otherwise provided in NRS 704.075, 704.68861 to 704.68887, inclusive, and 704.7865, or as may otherwise be provided by the Commission pursuant to NRS 704.095, 704.097 or 704.7621:

1. If a public utility files with the Commission an application to make changes in any schedule, including, without limitation, changes that will result in a discontinuance, modification or restriction of service, the Commission shall investigate the propriety of the proposed changes to determine whether to approve or disapprove the proposed changes. If an electric utility files such an application and the application is a general rate application or an annual deferred energy accounting adjustment application, the Consumer’s Advocate shall be deemed a party of record.

2. Except as otherwise provided in subsection 3, if a public utility files with the Commission an application to make changes in any schedule, the Commission shall, not later than 210 days after the date on which the application is filed, issue a written order approving or disapproving, in whole or in part, the proposed changes.

3. If a public utility files with the Commission a general rate application, the public utility shall submit with its application a statement showing the recorded results of revenues, expenses, investments and costs of capital for its most recent 12 months for which data were available when the application was prepared. Except as otherwise provided in subsection 4, in determining whether to approve or disapprove any increased rates, the Commission shall consider evidence in support of the increased rates based upon actual recorded results of operations for the same 12 months, adjusted for increased revenues, any increased investment in facilities, increased expenses for depreciation, certain other operating expenses as approved by the Commission and changes in the costs of securities which are known and are measurable with reasonable accuracy at the time of filing and which will become effective within 6 months after the last month of those 12 months, but the public utility shall not place into effect any increased rates until the changes have been experienced and certified by the public utility to the Commission and the Commission has approved the increased rates. The Commission shall also consider evidence supporting expenses for depreciation, calculated on an annual basis, applicable to major components of the public utility’s plant placed into service during the recorded test period or the period for certification as set forth in the application. Adjustments to revenues, operating expenses and costs of securities must be calculated on an annual basis. Within 90 days after the date on which the certification required by this subsection is filed with the Commission, or within the period set forth in subsection 2, whichever time is longer, the Commission shall make such order in reference to the increased rates as is required by this chapter. The following public utilities shall each file a general rate application pursuant to this subsection based on the following schedule:

(a) An electric utility that primarily serves less densely populated counties shall file a general rate application:

(1) Not later than 5 p.m. on or before the first Monday in June 2019; and

(2) At least once every 36 months thereafter or on a date specified in an alternative rate-making plan approved by the Commission pursuant to NRS 704.7621.

(b) An electric utility that primarily serves densely populated counties shall file a general rate application:

(1) Not later than 5 p.m. on or before the first Monday in June 2020; and

(2) At least once every 36 months thereafter or on a date specified in an alternative rate-making plan approved by the Commission pursuant to NRS 704.7621.

(c) A public utility that furnishes water for municipal, industrial or domestic purposes or services for the disposal of sewage, or both, which had an annual gross operating revenue of $2,000,000 or more for at least 1 year during the immediately preceding 3 years and which had not filed a general rate application with the Commission on or after July 1, 2005, shall file a general rate application on or before June 30, 2008, and at least once every 36 months thereafter unless waived by the Commission pursuant to standards adopted by regulation of the Commission. If a public utility furnishes both water and services for the disposal of sewage, its annual gross operating revenue for each service must be considered separately for determining whether the public utility meets the requirements of this paragraph for either service.

(d) A public utility that furnishes water for municipal, industrial or domestic purposes or services for the disposal of sewage, or both, which had an annual gross operating revenue of $2,000,000 or more for at least 1 year during the immediately preceding 3 years and which had filed a general rate application with the Commission on or after July 1, 2005, shall file a general rate application on or before June 30, 2009, and at least once every 36 months thereafter unless waived by the Commission pursuant to standards adopted by regulation of the Commission. If a public utility furnishes both water and services for the disposal of sewage, its annual gross operating revenue for each service must be considered separately for determining whether the public utility meets the requirements of this paragraph for either service.

Ê The Commission shall adopt regulations setting forth standards for waivers pursuant to paragraphs (c) and (d) and for including the costs incurred by the public utility in preparing and presenting the general rate application before the effective date of any change in rates.

4. In addition to submitting the statement required pursuant to subsection 3, a public utility may submit with its general rate application a statement showing the effects, on an annualized basis, of all expected changes in circumstances. If such a statement is filed, it must include all increases and decreases in revenue and expenses which may occur within 210 days after the date on which its general rate application is filed with the Commission if such expected changes in circumstances are reasonably known and are measurable with reasonable accuracy. If a public utility submits such a statement, the public utility has the burden of proving that the expected changes in circumstances set forth in the statement are reasonably known and are measurable with reasonable accuracy. The Commission shall consider expected changes in circumstances to be reasonably known and measurable with reasonable accuracy if the expected changes in circumstances consist of specific and identifiable events or programs rather than general trends, patterns or developments, have an objectively high probability of occurring to the degree, in the amount and at the time expected, are primarily measurable by recorded or verifiable revenues and expenses and are easily and objectively calculated, with the calculation of the expected changes relying only secondarily on estimates, forecasts, projections or budgets. If the Commission determines that the public utility has met its burden of proof:

(a) The Commission shall consider the statement submitted pursuant to this subsection and evidence relevant to the statement, including all reasonable projected or forecasted offsets in revenue and expenses that are directly attributable to or associated with the expected changes in circumstances under consideration, in addition to the statement required pursuant to subsection 3 as evidence in establishing just and reasonable rates for the public utility; and

(b) The public utility is not required to file with the Commission the certification that would otherwise be required pursuant to subsection 3.

5. If a public utility files with the Commission an application to make changes in any schedule and the Commission does not issue a final written order regarding the proposed changes within the time required by this section, the proposed changes shall be deemed to be approved by the Commission.

6. If a public utility files with the Commission a general rate application, the public utility, or a public utility affiliated with the public utility through common ownership, shall not file with the Commission another general rate application until all pending general rate applications filed by that public utility have been decided by the Commission unless, after application and hearing, the Commission determines that a substantial financial emergency would exist if the public utility or its affiliate is not permitted to file another general rate application sooner. The provisions of this subsection do not prohibit a public utility from filing with the Commission, while a general rate application is pending, an application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale pursuant to subsection 7, a quarterly rate adjustment pursuant to subsection 8 or 10, any information relating to deferred accounting requirements pursuant to NRS 704.185 or an annual deferred energy accounting adjustment application pursuant to NRS 704.187, if the public utility is otherwise authorized to so file by those provisions.

7. A public utility may file an application to recover the increased cost of purchased fuel, purchased power, or natural gas purchased for resale once every 30 days. The provisions of this subsection do not apply to:

(a) An electric utility which is required to adjust its rates on a quarterly basis pursuant to subsection 10; or

(b) A public utility which purchases natural gas for resale and which adjusts its rates on a quarterly basis pursuant to subsection 8.

8. A public utility which purchases natural gas for resale must request approval from the Commission to adjust its rates on a quarterly basis between annual rate adjustment applications based on changes in the public utility’s recorded costs of natural gas purchased for resale. A public utility which purchases natural gas for resale and which adjusts its rates on a quarterly basis may request approval from the Commission to make quarterly adjustments to its deferred energy accounting adjustment. The Commission shall approve or deny such a request not later than 120 days after the application is filed with the Commission. The Commission may approve the request if the Commission finds that approval of the request is in the public interest. If the Commission approves a request to make quarterly adjustments to the deferred energy accounting adjustment of a public utility pursuant to this subsection, any quarterly adjustment to the deferred energy accounting adjustment must not exceed 2.5 cents per therm of natural gas. If the balance of the public utility’s deferred account varies by less than 5 percent from the public utility’s annual recorded costs of natural gas which are used to calculate quarterly rate adjustments, the deferred energy accounting adjustment must be set to zero cents per therm of natural gas.

9. If the Commission approves a request to make any rate adjustments on a quarterly basis pursuant to subsection 8:

(a) The public utility shall file written notice with the Commission before the public utility makes a quarterly rate adjustment. A quarterly rate adjustment is not subject to the requirements for notice and a hearing pursuant to NRS 703.320 or the requirements for a consumer session pursuant to subsection 1 of NRS 704.069.

(b) The public utility shall provide written notice of each quarterly rate adjustment to its customers by including the written notice with a customer’s regular monthly bill or by electronic transmission pursuant to NRS 704.188. The public utility shall begin providing such written notice to its customers not later than 30 days after the date on which the public utility files its written notice with the Commission pursuant to paragraph (a). The written notice required by this paragraph:

(1) Must be printed separately, if included with the customer’s regular monthly bill, or the subject line of the electronic transmission must indicate that notice of a quarterly rate adjustment is included, if provided by electronic transmission pursuant to NRS 704.188; and

(2) Must include the following in clear and bold text:

(I) The total amount of the increase or decrease in the public utility’s revenues from the rate adjustment, stated in dollars and as a percentage;

(II) The amount of the monthly increase or decrease in charges for each class of customer or class of service, stated in dollars and as a percentage;

(III) A statement that customers may send written comments or protests regarding the rate adjustment to the Commission;

(IV) A statement that the transactions and recorded costs of natural gas which are the basis for any quarterly rate adjustment will be reviewed for reasonableness and prudence in the next proceeding held by the Commission to review the annual rate adjustment application pursuant to paragraph (d); and

(V) Any other information required by the Commission.

(c) The public utility shall file an annual rate adjustment application with the Commission. The annual rate adjustment application is subject to the requirements for notice and a hearing pursuant to NRS 703.320 and the requirements for a consumer session pursuant to subsection 1 of NRS 704.069.

(d) The proceeding regarding the annual rate adjustment application must include a review of each quarterly rate adjustment and the transactions and recorded costs of natural gas included in each quarterly filing and the annual rate adjustment application. There is no presumption of reasonableness or prudence for any quarterly rate adjustment or for any transactions or recorded costs of natural gas included in any quarterly rate adjustment or the annual rate adjustment application, and the public utility has the burden of proving reasonableness and prudence in the proceeding.

(e) The Commission shall not allow the public utility to recover any recorded costs of natural gas which were the result of any practice or transaction that was unreasonable or was undertaken, managed or performed imprudently by the public utility, and the Commission shall order the public utility to adjust its rates if the Commission determines that any recorded costs of natural gas included in any quarterly rate adjustment or the annual rate adjustment application were not reasonable or prudent.

10. An electric utility shall adjust its rates on a quarterly basis based on changes in the electric utility’s recorded costs of purchased fuel or purchased power. In addition to adjusting its rates on a quarterly basis, an electric utility may request approval from the Commission to make quarterly adjustments to its deferred energy accounting adjustment. The Commission shall approve or deny such a request not later than 120 days after the application is filed with the Commission. The Commission may approve the request if the Commission finds that approval of the request is in the public interest. If the Commission approves a request to make quarterly adjustments to the deferred energy accounting adjustment of an electric utility pursuant to this subsection, any quarterly adjustment to the deferred energy accounting adjustment must not exceed 0.25 cents per kilowatt-hour of electricity. If the balance of the electric utility’s deferred account varies by less than 5 percent from the electric utility’s annual recorded costs for purchased fuel or purchased power which are used to calculate quarterly rate adjustments, the deferred energy accounting adjustment must be set to zero cents per kilowatt-hour of electricity.

11. A quarterly rate adjustment filed pursuant to subsection 10 is subject to the following requirements:

(a) The electric utility shall file written notice with the Commission on or before August 15, 2007, and every quarter thereafter of the quarterly rate adjustment to be made by the electric utility for the following quarter. The first quarterly rate adjustment by the electric utility will take effect on October 1, 2007, and each subsequent quarterly rate adjustment will take effect every quarter thereafter. The first quarterly adjustment to a deferred energy accounting adjustment must be made pursuant to an order issued by the Commission approving the application of an electric utility to make quarterly adjustments to its deferred energy accounting adjustment. A quarterly rate adjustment is not subject to the requirements for notice and a hearing pursuant to NRS 703.320 or the requirements for a consumer session pursuant to subsection 1 of NRS 704.069.

(b) The electric utility shall provide written notice of each quarterly rate adjustment to its customers by including the written notice with a customer’s regular monthly bill or by electronic submission pursuant to NRS 704.188. The electric utility shall begin providing such written notice to its customers not later than 30 days after the date on which the electric utility files a written notice with the Commission pursuant to paragraph (a). The written notice required by this paragraph:

(2) Must include the following in clear and bold text:

(I) The total amount of the increase or decrease in the electric utility’s revenues from the rate adjustment, stated in dollars and as a percentage;

(II) The amount of the monthly increase or decrease in charges for each class of customer or class of service, stated in dollars and as a percentage;

(III) A statement that customers may send written comments or protests regarding the rate adjustment to the Commission;

(IV) A statement that the transactions and recorded costs of purchased fuel or purchased power which are the basis for any quarterly rate adjustment will be reviewed for reasonableness and prudence in the next proceeding held by the Commission to review the annual deferred energy accounting adjustment application pursuant to paragraph (d); and

(V) Any other information required by the Commission.

(c) The electric utility shall file an annual deferred energy accounting adjustment application pursuant to NRS 704.187 with the Commission. The annual deferred energy accounting adjustment application is subject to the requirements for notice and a hearing pursuant to NRS 703.320 and the requirements for a consumer session pursuant to subsection 1 of NRS 704.069.

(d) The proceeding regarding the annual deferred energy accounting adjustment application must include a review of each quarterly rate adjustment and the transactions and recorded costs of purchased fuel and purchased power included in each quarterly filing and the annual deferred energy accounting adjustment application. There is no presumption of reasonableness or prudence for any quarterly rate adjustment or for any transactions or recorded costs of purchased fuel and purchased power included in any quarterly rate adjustment or the annual deferred energy accounting adjustment application, and the electric utility has the burden of proving reasonableness and prudence in the proceeding.

(e) The Commission shall not allow the electric utility to recover any recorded costs of purchased fuel and purchased power which were the result of any practice or transaction that was unreasonable or was undertaken, managed or performed imprudently by the electric utility, and the Commission shall order the electric utility to adjust its rates if the Commission determines that any recorded costs of purchased fuel and purchased power included in any quarterly rate adjustment or the annual deferred energy accounting adjustment application were not reasonable or prudent.

12. If an electric utility files an annual deferred energy accounting adjustment application pursuant to subsection 11 and NRS 704.187 while a general rate application is pending, the electric utility shall:

(a) Submit with its annual deferred energy accounting adjustment application information relating to the cost of service and rate design; and

(b) Supplement its general rate application with the same information, if such information was not submitted with the general rate application.

13. A utility facility identified in a 3-year plan submitted pursuant to NRS 704.741 and accepted by the Commission for acquisition or construction pursuant to NRS 704.751 and the regulations adopted pursuant thereto, or the retirement or elimination of a utility facility identified in an emissions reduction and capacity replacement plan submitted pursuant to NRS 704.7316 and accepted by the Commission for retirement or elimination pursuant to NRS 704.751 and the regulations adopted pursuant thereto, shall be deemed to be a prudent investment. The utility may recover all just and reasonable costs of planning and constructing, or retiring or eliminating, as applicable, such a facility. For the purposes of this subsection, a plan or an amendment to a plan shall be deemed to be accepted by the Commission only as to that portion of the plan or amendment accepted as filed or modified with the consent of the utility pursuant to NRS 704.751.

14. In regard to any rate or schedule approved or disapproved pursuant to this section, the Commission may, after a hearing:

(a) Upon the request of the utility, approve a new rate but delay the implementation of that new rate:

(1) Until a date determined by the Commission; and

(2) Under conditions as determined by the Commission, including, without limitation, a requirement that interest charges be included in the collection of the new rate; and

(b) Authorize a utility to implement a reduced rate for low-income residential customers.

15. The Commission may, upon request and for good cause shown, permit a public utility which purchases natural gas for resale or an electric utility to make a quarterly adjustment to its deferred energy accounting adjustment in excess of the maximum allowable adjustment pursuant to subsection 8 or 10.

16. A public utility which purchases natural gas for resale or an electric utility that makes quarterly adjustments to its deferred energy accounting adjustment pursuant to subsection 8 or 10 may submit to the Commission for approval an application to discontinue making quarterly adjustments to its deferred energy accounting adjustment and to subsequently make annual adjustments to its deferred energy accounting adjustment. The Commission may approve an application submitted pursuant to this subsection if the Commission finds that approval of the application is in the public interest.

17. As used in this section:

(a) “Deferred energy accounting adjustment” means the rate of a public utility which purchases natural gas for resale or an electric utility that is calculated by dividing the balance of a deferred account during a specified period by the total therms or kilowatt-hours which have been sold in the geographical area to which the rate applies during the specified period, not including kilowatt-hours sold pursuant to an expanded solar access program established pursuant to NRS 704.7865.

(b) “Electric utility” has the meaning ascribed to it in NRS 704.187.

(c) “Electric utility that primarily serves densely populated counties” means an electric utility that, with regard to the provision of electric service, derives more of its annual gross operating revenue in this State from customers located in counties whose population is 700,000 or more than it does from customers located in counties whose population is less than 700,000.

(d) “Electric utility that primarily serves less densely populated counties” means an electric utility that, with regard to the provision of electric service, derives more of its annual gross operating revenue in this State from customers located in counties whose population is less than 700,000 than it does from customers located in counties whose population is 700,000 or more.

[Part 14:109:1919; A 1933, 228; 1931 NCL § 6113]—(NRS A 1969, 998; 1975, 1451, 1559; 1977, 482; 1979, 1106, 1719; 1983, 240; 1985, 636, 1127; 1989, 1012, 1835; 1991, 776; 1997, 1908; 1999, 3261; 2001, 347, 3247; 2003, 3039; 2005, 1277, 1920; 2007, 490, 545, 552, 697, 2979; 2009, 610, 1394, 2471; 2011, 386, 1302; 2013, 3077; 2015, 1087; 2019, 1193, 2316; 2021, 412; 2023, 3030)

NRS 704.120 Commission may substitute just and reasonable rates, regulations, practices or services after investigation and hearing; exceptions.

1. If, upon any hearing and after due investigation, the rates, tolls, charges, schedules or joint rates shall be found to be unjust, unreasonable or unjustly discriminatory, or to be preferential, or otherwise in violation of any of the provisions of this chapter, the Commission shall have the power to fix and order substituted therefor such rate or rates, tolls, charges or schedules as shall be just and reasonable.

2. If it shall in like manner be found that any regulation, measurement, practice, act or service complained of is unjust, unreasonable, insufficient, preferential, unjustly discriminatory or otherwise in violation of the provisions of this chapter, or if it be found that the service is inadequate, or that any reasonable service cannot be obtained, the Commission shall have the power to substitute therefor such other regulations, measurements, practices, service or acts and make such order relating thereto as may be just and reasonable.

3. When complaint is made of more than one rate, charge or practice, the Commission may, in its discretion, order separate hearings upon the several matters complained of and at such times and places as it may prescribe.

4. No complaint shall at any time be dismissed because of the absence of direct damage to the complainant.

5. The Commission may at any time, upon its own motion, investigate any of the rates, tolls, charges, rules, regulations, practices and service, and, after a full hearing as above provided, by order, make such changes as may be just and reasonable, the same as if a formal complaint had been made.

6. The provisions of this section do not apply to a competitive supplier, except that a competitive supplier that is an incumbent local exchange carrier is subject to the provisions of this section with regard to:

(a) The provision of basic network service until January 1, 2012; and

(b) Any general rate application filed by the competitive supplier pursuant to paragraph (b) of subsection 2 of NRS 704.68877. If the competitive supplier files such a general rate application, the general rate case proceeding must be conducted by the Commission in accordance with this section and NRS 704.110.

7. Nothing in this chapter shall be construed to prohibit the Commission from authorizing an electric utility to provide reduced rates to low-income customers upon a hearing and after due investigation.

[27:109:1919; 1919 RL p. 3163; NCL § 6127]—(NRS A 2007, 701; 2009, 616)

NRS 704.130 Rates effective and regulations enforceable until modified by Commission or court.

1. All rates, charges, classifications and joint rates fixed by the Commission are in force, and are prima facie lawful, from the date of the order until changed or modified by the Commission, or pursuant to NRS 703.373 to 703.376, inclusive.

2. All regulations, practices and service prescribed by the Commission must be enforced and are prima facie reasonable unless suspended or found otherwise in an action brought for the purpose, pursuant to the provisions of NRS 703.373 to 703.376, inclusive, or until changed or modified by the Commission itself upon satisfactory showing made, or by the public utility by filing a bond pursuant to NRS 703.374.

[32:109:1919; A 1955, 407]—(NRS A 1983, 968; 1997, 1909)

NRS 704.140 Free or reduced rates for transportation unlawful; exceptions; penalty.

1. It is unlawful for any person engaged in business as a public utility to give or furnish to any state, district, county or municipal officer of this State, or to any person other than those named herein, any pass, frank, free or reduced transportation, or for any state, district, county or municipal officer to accept any pass, frank, free or reduced transportation.

2. This section does not prevent the carriage, storage or hauling of property free or at reduced rates for the United States, the State of Nevada or any political subdivision thereof for charitable purposes.

3. This chapter does not prohibit a public utility from giving free or reduced rates for transportation of:

(a) Its own officers, commission agents, employees, attorneys, physicians and surgeons and members of their families, and pensioned ex-employees and ex-employees with disabilities, their minor children or dependents, or witnesses attending any legal investigation in which such carrier is interested.

(b) Inmates of hospitals or charitable institutions and persons over 65 years of age.

(c) Persons with physical or mental disabilities who present a written statement from a physician or an advanced practice registered nurse to that effect.

(d) Persons injured in accidents or motor vehicle crashes and physicians and nurses attending such persons.

(e) Persons providing relief in cases of common disaster, or for contractors and their employees, in carrying out their contract with such carrier.

(f) Peace officers when on official duty.

(g) Attendants of livestock or other property requiring the care of an attendant, including return passage to the place of shipment, if there is no discrimination among such shippers of a similar class.

(h) Employees of other carriers subject to regulation in any respect by the Commission, or for the officers, agents, employees, attorneys, physicians and surgeons of such other carriers, and the members of their families.

4. This chapter does not prohibit public utilities from giving reduced rates for transportation to:

(a) Indigent, destitute or homeless persons, when under the care or responsibility of charitable societies, institutions or hospitals, and the necessary agents employed in such transportation.

(b) Students of institutions of learning.

5. “Employees,” as used in this section, includes furloughed, pensioned and superannuated employees, and persons who have become disabled or infirm in the service of any such carrier, and persons traveling for the purpose of entering the service of any such carrier.

6. Any person violating the provisions of this section shall be punished by a fine of not more than $500.

[21:109:1919; A 1928, 21; 1931, 18; 1947, 74; 1943 NCL § 6121]—(NRS A 1967, 655; 1969, 1157; 1971, 726; 1979, 203; 2015, 1698; 2019, 530)

GENERAL STANDARDS AND PRACTICES

NRS 704.143 Persons with physical or mental disabilities entitled to full and equal enjoyment of facilities for public transportation; unlawful denial of services and facilities.

1. All persons with physical or mental disabilities are entitled to the full and equal enjoyment of the facilities of any common carrier or other means of public conveyance and transportation operating within this State.

2. It is unlawful for any person, firm, partnership or corporation to deny any of the privileges granted by subsection 1.

3. It is unlawful for any common carrier or other means of public conveyance or transportation operating within this State, to deny the equal enjoyment of its services and facilities to a person with a physical disability by the arbitrary, capricious or unreasonable interference, direct or indirect, with the use of aids and appliances used by such person with a physical disability for purposes of mobility.

(Added to NRS by 1969, 587; A 1971, 1058; 1979, 204)

1. Except as otherwise provided in subsection 2, it is unlawful for a common carrier or other means of public conveyance or transportation operating in this State to:

(a) Refuse service to a person with a disability because the person is accompanied by a service animal;

(b) Refuse service to a person who is training a service animal because the person is accompanied by the service animal in training; or

2. A common carrier or other means of public conveyance or transportation is not required to comply with the provisions of subsection 1 with regard to a service animal or service animal in training that is a miniature horse if it determines that it is not reasonable to comply, using the assessment factors set forth in 28 C.F.R. § 36.302.

3. This section does not relieve a person with a disability who is accompanied by a service animal or a person who is accompanied by a service animal in training from liability for damage which may be caused by the service animal or service animal in training.

4. Persons with disabilities accompanied by service animals on common carriers or other means of public conveyance or transportation operating in this State are subject to the same conditions and limitations that apply to persons without disabilities who are not so accompanied.

5. A common carrier or other means of public conveyance or transportation operating in this State that violates any of the provisions of subsection 1 is civilly liable to the person against whom the violation was committed for:

(a) Actual damages;

(b) Such punitive damages as may be determined by a jury, or by a court sitting without a jury, which must not be more than three times the amount of actual damages, except that in no case may the punitive damages be less than $750; and

6. The remedies provided in this section are nonexclusive and are in addition to any other remedy provided by law, including, without limitation, any action for injunctive or other equitable relief available to the aggrieved person or brought in the name of the people of this State or the United States.

7. As used in this section:

(a) “Service animal” has the meaning ascribed to it in NRS 426.097.

(b) “Service animal in training” has the meaning ascribed to it in NRS 426.099.

(Added to NRS by 1969, 587; A 1971, 1059; 1973, 1499; 1981, 1921; 1987, 825; 1995, 1996; 1997, 76; 2003, 2639, 2978; 2005, 634; 2015, 273)

NRS 704.150 Duty of connecting railroad to transfer car for just and reasonable charge. All railroad corporations whose tracks connect shall transfer cars reciprocally from one railroad to the other upon demand of shippers or of the railroad concerned at just and reasonable charges to be fixed by the Commission.

[19:109:1919; 1919 RL p. 3160; NCL § 6119]

NRS 704.160 Duty of railroad to provide and maintain depots, stations and other facilities.

1. Every railroad shall provide and maintain adequate depots and depot buildings at its regular stations and establish new stations wherever required, for the accommodation of passengers. Depot buildings shall be kept clean, well lighted and warm for the comfort and accommodation of the traveling public.

2. All railroads shall keep and maintain adequate and suitable freight depots, wherever needed, buildings, switches and sidetracks for the receiving, handling and delivering of freight transported or to be transported by such railroad.

[22:109:1919; 1919 RL p. 3161; NCL § 6122]

NRS 704.170 Duty of railroad to furnish freight cars to shippers; regulations.

1. Every railroad shall, when within its power to do so, and upon reasonable notice, furnish suitable cars to any and all persons who may apply therefor, for the transportation of any and all kinds of freight in carload lots. In case of insufficiency of cars at any time to meet all requirements, such cars as are available shall be distributed among the several applicants therefor in proportion to their respective immediate requirements without discrimination between shippers or competitive or noncompetitive places. Preference may be given to shipments of livestock and perishable property.

2. The Commission shall have the power to enforce reasonable regulations for furnishing cars to shippers, and switching the same, and for the loading and unloading thereof, and the weighing of the cars and freight offered for shipment over any line of railroad.

[23:109:1919; 1919 RL p. 3161; NCL § 6123]

NRS 704.175 Compliance with standards for electrical construction; inspection; exemption.

1. Except as provided in subsection 2, any public utility which installs or modifies any electrical supply line in any building or facility which it owns or operates, if the building or facility is open and accessible to the general public, shall perform such installation or modification as if the National Electrical Code adopted by the National Fire Protection Association applied to such work, and any local government which regulates electrical construction shall inspect such work within its jurisdiction for compliance with this section.

2. Communication equipment and related apparatus are exempted from the provisions of subsection 1 only if the equipment and apparatus are owned, installed, operated and maintained by a telecommunication provider under the jurisdiction of the Commission.

(Added to NRS by 1977, 1493; A 2007, 701)

NRS 704.183 Examination of certain public utilities.

1. The Commission may order an examination of the condition and management of any public utility under its jurisdiction which is a telephone company, electric light, heat and power company or a natural gas company.

2. The Commission and the public utilities shall establish, and revise annually, a list of not less than 20 persons qualified to conduct such examinations.

3. If an examination is ordered:

(a) The public utility shall select a person to conduct the examination from such list; and

(b) The Commission, the public utility and the person selected shall determine the manner, scope and cost of the examination and the content and form of reports issued at the conclusion of the examination.

4. Except where the Commission, after a hearing, determines that an examination of a public utility is in the public interest, the Commission shall not order an examination if a prior examination has been conducted within the preceding 5 years.

5. The costs of an examination are allowable expenses of the public utility for the purpose of rate making.

(Added to NRS by 1977, 1375; A 1985, 2050)

NRS 704.1835 Commission required to adopt or amend regulations relating to termination of utility service for gas, water or electricity.

1. For the purposes of protecting the health of residential customers who receive gas, water or electricity from public utilities, the Commission shall adopt or amend regulations that:

(a) Establish the criteria that will be used to determine when a public utility is required to postpone its termination of utility service to the residence of a residential customer who has failed to pay for such service. Such criteria may be based in part upon the residential customer’s ability to pay.

(b) Require a public utility to postpone its termination of utility service to the residence of a residential customer who has failed to pay for such service if the residential customer satisfies the criteria established by the Commission and termination of the utility service is reasonably likely to threaten the health of an occupant of the residence of the residential customer.

2. In addition to the regulations adopted pursuant to subsection 1, for the purposes of regulating public utilities that provide gas, water or electricity to landlords who pay for the utility service and who distribute or resell the gas, water or electricity to one or more residential tenants, the Commission shall adopt or amend regulations to require a public utility to use its best efforts to post, in a conspicuous location, notice of the intent of the public utility to terminate utility service because the landlord has failed to pay for such service. Such notice must provide sufficient information to allow residential tenants or their occupants to contact the public utility if termination of the utility service is reasonably likely to threaten the health of an occupant of the residence of a residential tenant.

3. A public utility shall not terminate utility service for gas, water or electricity without complying with the regulations adopted by the Commission pursuant to this section.

4. As used in this section:

(a) “Gas” includes, without limitation, liquefied petroleum gas and natural gas.

(b) “Landlord” means a landlord who is subject, in whole or in part, to the provisions of chapter 118A or 118B of NRS.

(Added to NRS by 2001, 3242)

DEFERRED ACCOUNTING

NRS 704.185 Use of deferred accounting by certain natural gas utilities; procedure; limitations.

1. Except as otherwise provided in subsection 8 of NRS 704.110, 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. Any public utility which 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. 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 subsection 1. 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.

3. When a public utility which purchases natural gas for resale files an annual rate adjustment application or an annual deferred energy accounting adjustment application, the proceeding regarding the application must include a review of the transactions and recorded costs of natural gas included in the application. There is no presumption of reasonableness or prudence for any transactions or recorded costs of natural gas included in the application, and the public utility has the burden of proving reasonableness and prudence in the proceeding.

4. A public utility which purchases natural gas for resale and which has received approval from the Commission to make quarterly adjustments to a deferred energy accounting adjustment pursuant to subsection 8 of NRS 704.110 is not eligible to request an adjustment to its deferred energy accounting adjustment in its annual rate adjustment application.

(Added to NRS by 1975, 1560; A 1979, 1108; 1999, 3263; 2003, 1257; 2005, 1924; 2007, 556; 2011, 392)

NRS 704.187 Use of deferred accounting by certain electric utilities; procedure; limitations.

1. An electric utility that:

(a) Purchases fuel or power shall use deferred accounting by recording upon its books and records in deferred accounts all increases and decreases in costs for purchased fuel and purchased power that are prudently incurred by the electric utility.

(b) Pursuant to NRS 704.752 is approved by the Commission to charge a just and reasonable price for the electricity generated by a renewable energy facility shall use deferred accounting in accordance with the regulations adopted by that section.

2. An electric utility using deferred accounting:

(a) Pursuant to paragraph (a) of subsection 1 shall include in its annual report to the Commission a statement showing, for the period of recovery, the allocated rate of return for each of its operating departments in this State using deferred accounting.

(b) Pursuant to paragraph (b) of subsection 1 shall include in its annual report to the Commission any information that is required to be included in the annual report by the regulations adopted pursuant to NRS 704.752.

3. Except as otherwise provided in this section, an electric utility using deferred accounting shall file an annual deferred energy accounting adjustment application on or before March 1, 2008, and on or before March 1 of each year thereafter.

4. An electric utility that purchases fuel or power and has received approval from the Commission to make quarterly adjustments to its deferred energy accounting adjustment pursuant to subsection 10 of NRS 704.110 is not eligible to request an adjustment to its deferred energy accounting adjustment in its annual deferred energy accounting adjustment application.

5. An electric utility that, pursuant to NRS 704.752, is approved by the Commission to charge a just and reasonable price for the electricity generated by a renewable energy facility shall file deferred energy accounting adjustments in accordance with the regulations adopted pursuant to NRS 704.752.

6. As used in this section:

(a) “Annual deferred energy accounting adjustment application” means an application filed by an electric utility pursuant to this section and subsection 11 of NRS 704.110.

(b) “Costs for purchased fuel and purchased power” means all costs which are prudently incurred by an electric utility and which are required to purchase fuel, to purchase capacity and to purchase energy. The term does not include any costs that the Commission determines are not recoverable pursuant to subsection 11 of NRS 704.110.

(1) Is in the business of providing electric service to customers;

(2) Holds a certificate of public convenience and necessity issued or transferred pursuant to this chapter; and

(3) In the most recently completed calendar year or in any other calendar year within the 7 calendar years immediately preceding the most recently completed calendar year, had a gross operating revenue of $250,000,000 or more in this State.

Ê The term does not include a cooperative association, nonprofit corporation, nonprofit association or provider of electric service which is declared to be a public utility pursuant to NRS 704.673 and which provides service only to its members.

(d) “Renewable energy facility” has the meaning ascribed to it in NRS 704.7315.

(Added to NRS by 2001, 345; A 2005, 1279, 1924; 2007, 2985; 2011, 393; 2019, 13)

NOTICES; REPORTS; RECORDS

NRS 704.188 Required notice to customer may be provided by electronic transmission if requested by customer and within utility’s capability. If notice is required to be provided by a public utility to a customer pursuant to this chapter or the regulations adopted pursuant thereto, the notice may be provided to the customer, if requested by the customer and within the capability of the public utility, by electronic transmission to the most recent electronic mail address provided to the public utility by the customer.

(Added to NRS by 2021, 412)

NRS 704.190 Report and investigation of accident or motor vehicle crash; regulations; forms; public inspection of report; inadmissibility of report in action for damages.

1. Every public utility operating in this State shall, whenever an accident or motor vehicle crash occurs in the conduct of its operation causing death, give prompt notice thereof to the Commission, in such manner and within such time as the Commission may prescribe. If, in its judgment, the public interest requires it, the Commission may cause an investigation to be made forthwith of any accident or crash, at such place and in such manner as the Commission deems best.

2. Every such public utility shall report to the Commission, at the time, in the manner and on such forms as the Commission by its printed rules and regulations prescribes, all accidents or crashes happening in this State and occurring in, on or about the premises, plant, instrumentality or facility used by any such utility in the conduct of its business.

3. The Commission shall adopt all reasonable rules and regulations necessary for the administration and enforcement of this section. The rules and regulations must require that all accidents or crashes required to be reported pursuant to this section be reported to the Commission at least once every calendar month by such officer or officers of the utility as the Commission directs.

4. The Commission shall adopt and utilize all accident and crash report forms, which must be so designed as to provide a concise and accurate report of the accident or crash. The report must show the true cause of the accident or crash. The accident report forms adopted for the reporting of railroad accidents must, as near as practicable, be the same in design as the railroad accident report forms provided and used by the Surface Transportation Board.

5. If any accident or crash is reported to the Commission by the utility as being caused by or through the negligence of an employee and thereafter the employee is absolved from such negligence by the utility and found not to be responsible for the accident or crash, that fact must be reported by the utility to the Commission.

6. Each accident report required to be made by a public utility pursuant to this section must be filed in the office of the Commission and there preserved. Each accident or crash report required to be made by a public utility pursuant to this chapter and each report made by the Commission pursuant to its investigation of any accident or crash:

(a) Except as otherwise provided in subsection 2 of NRS 703.190, must be open to public inspection; and

(b) Notwithstanding any specific statute to the contrary, must not, in whole or in part, be admitted as evidence or used for any purpose in any suit or action for damages arising out of any matter mentioned in:

(1) The accident or crash report required to be made by the public utility; or

(2) The report made by the Commission pursuant to its investigation.

[34:109:1919; A 1937, 404; 1931 NCL § 6134]—(NRS A 1967, 1384; 1997, 1630; 2001, 1764; 2015, 1698)

NRS 704.195 Recording of telephone call concerning emergency or service outage; disclosure.

1. A public utility may record any telephone call:

(a) Concerning an emergency; or

(b) Relating to a service outage,

Ê if the telephone call is received on a line specified for such telephone calls, the number of which is published in an appropriate telephone directory. The publication must contain a notice to callers that a telephone call received on that line concerning an emergency or relating to a service outage is subject to recording.

2. A telephone call made pursuant to subsection 1 is not a private conversation and the existence, content, substance, purport, effect or meaning of the conversation recorded may be disclosed by any person.

3. As used in this section, “record” means the acquisition of the contents of a wire communication through the use of a recording device.

(Added to NRS by 1989, 657)

1. A public administrator, deputy designated by the public administrator or a person employed or contracted with pursuant to NRS 253.125, as applicable, may submit a written request to a public utility for the name and address of a person listed in the records of the public utility if the information is necessary to assist the public administrator or a person employed or contracted with pursuant to NRS 253.125, as applicable, in carrying out the public administrator’s or person’s duties pursuant to chapter 253 of NRS.

2. Upon receipt of a written request pursuant to subsection 1, a public utility shall disclose the name and address of the person listed in the records of customers of the public utility to the public administrator, a deputy designated by the public administrator or a person employed or contracted with pursuant to NRS 253.125, as applicable.

3. A disclosure made in good faith pursuant to subsection 1 does not give rise to any action for damages for the disclosure of the name and address of a customer by a public utility.

(Added to NRS by 1999, 921; A 2019, 1551)

NRS 704.201 Investigation by law enforcement agency: Issuance of subpoena to public utility for name and address of person listed in records of customers.

1. To further a criminal or civil investigation, the chief executive officer of a law enforcement agency of this State or a command officer designated by the chief executive officer may issue a subpoena to a public utility for the name and address of a person listed in the records of the customers of the public utility.

2. The subpoena must:

(a) If available, contain the social security number of the person about whom the subpoena is made;

(b) Contain a statement that the subpoena is made to further a criminal or civil investigation being conducted by the agency; and

(c) Be signed by the chief executive officer of the law enforcement agency or the command officer designated by the chief executive officer.

3. As used in this section, “command officer” means an officer in charge of a department, division or bureau of the law enforcement agency.

(Added to NRS by 1989, 803; A 1991, 147; 1997, 102)

1. Upon receipt of a subpoena by a law enforcement agency pursuant to NRS 704.201, a public utility shall disclose the name and address of the person listed in the records of customers of the public utility to the agency.

2. The public utility may charge a reasonable fee for any administrative expense related to the disclosure.

3. A disclosure made in good faith pursuant to subsection 1 does not give rise to any action for damages for the disclosure of the name and address of a customer by a public utility.

(Added to NRS by 1989, 803; A 1997, 102)

1. A public utility, other than a public utility furnishing telephone services, shall provide a list of the names and addresses of the customers of the public utility upon the request of any:

(a) District judge; or

(b) Jury commissioner,

Ê for use in the selection of jurors.

2. The court or jury commissioner who requests the list of customers shall reimburse the public utility for the reasonable cost of compiling the list.

3. A disclosure made in good faith pursuant to subsection 1 does not give rise to any action for damages for the disclosure of the name and address of a customer by a public utility.

(Added to NRS by 1989, 2041; A 2007, 240)

OTHER STANDARDS AND PRACTICES

NRS 704.210 Powers of Commission: Adoption of regulations; supervision and regulation of public utilities; exceptions.

1. Except as otherwise provided in subsection 2, the Commission may:

(a) Adopt necessary and reasonable regulations governing the procedure, administration and enforcement of the provisions of this chapter, subject to the provisions of NRS 416.060.

(b) Prescribe classifications of the service of all public utilities and, except as otherwise provided in NRS 704.075, fix and regulate the rates therefor.

(c) Fix just and reasonable charges for transportation of all intrastate freight and passengers and the rates and tolls for the use of telephone lines within the State.

(d) Adopt just and reasonable regulations for the apportionment of all joint rates and charges between public utilities.

(e) Consider the need for the conservation of energy when acting pursuant to the provisions of this subsection.

2. The provisions of subsection 1 do not apply to a competitive supplier.

[17:109:1919; 1919 RL p. 3159; NCL § 6116]—(NRS A 1969, 1158; 1977, 552, 884; 1985, 1129; 1997, 1910; 2007, 702)

NRS 704.215 Powers of Commission: Adoption of certain rules, regulations and rates by reference.

1. Subject to the provisions of this chapter, the Commission may adopt by reference all or part of any appropriate:

(a) Rule, regulation or rate schedule relating to telecommunication service issued by an agency of the Federal Government or of any state.

(b) Regulation proposed by the National Association of Regulatory Utility Commissioners or code issued by a national or state professional society.

2. A copy of each such rule, regulation, rate schedule or code adopted by the Commission pursuant to this section must be included with the regulations filed with the Secretary of State.

(Added to NRS by 1969, 1000; A 1991, 515; 2007, 702)

1. The Commission may, when necessary:

(a) Ascertain and prescribe for each kind of public utility adequate, convenient and serviceable standards for the measurement of quality, pressure, voltage or other conditions pertaining to the supply of the product or service rendered by any public utility; and

(b) Prescribe reasonable regulations for the examination and testing of such products or service and for the measurement thereof.

2. Any consumer, user or person served may have the quality or quantity of the product or the character of any service rendered by any public utility tested upon the payment of fees fixed by the Commission, which fees, however, shall be paid by the public utility and repaid to the complaining party if the quality or quantity of the product or the character of the service be found by the Commission defective or insufficient in a degree to justify the demand for testing; or the Commission may apportion the fees between the parties as justice may require.

[Part 13:109:1919; A 1931, 320; 1955, 421]

NRS 704.223 Purchase or transmission of electricity to certain businesses to reduce overall cost of electricity to business: Authorization; additional facilities; agreement; terms and conditions.

1. If a business with a new industrial load has been certified by the Office of Economic Development pursuant to NRS 231.139, the Public Utilities Commission of Nevada may authorize a public utility that furnishes electricity for the business to purchase or transmit a portion of the electricity provided to the business to reduce the overall cost of the electricity to the business. The purchases of electricity may be made by the business with the new industrial load, by agreement between the public utility and the business or by the public utility on behalf of the business, and must be made in accordance with such rates, terms and conditions as are established by the Public Utilities Commission of Nevada.

2. If additional facilities are determined by the affected utility to be required as the result of authorization granted pursuant to subsection 1, the facilities must be constructed, owned and operated by the affected utility. The business must agree as a condition to the authorization granted pursuant to subsection 1 to continue its business in operation in Nevada for 30 years. The agreement must require appropriate security for the reimbursement of the utility for the remaining portion of the value of the facilities which has not been depreciated by the utility and will not be mitigated by use of the facilities for other customers in the event that the business, or its successor in interest, does not remain in operation for 30 years.

3. Nothing in this section authorizes the Federal Energy Regulatory Commission to order the purchase or transmittal of electricity in the manner described in subsection 1.

4. All of the rules, regulations and statutes pertaining to the Public Utilities Commission of Nevada and public utilities apply to actions taken pursuant to this section.

5. Any authorization granted by the Public Utilities Commission of Nevada pursuant to this section must include such terms and conditions as the Commission determines are necessary to ensure that the rates or charges assessed to other customers of the public utility do not subsidize the cost of providing service to the business.

(Added to NRS by 1993, 817; A 1997, 1910; 2011, 3483)

NRS 704.225 Regulations requiring lower rates for electricity for irrigation pumps: Interruptible service.

1. The Commission shall by regulation require each public utility which furnishes electricity to provide lower rates for electricity for irrigation pumps under a schedule which:

(a) Will be applied:

(1) From March 1 to October 31, inclusive; and

(2) If the customer concedes to the utility a right to interrupt services to the customer’s irrigation pumps under conditions established by the utility and approved by the Commission.

(b) Provides for a maximum rate for interruptible service per kilowatt-hour of electricity used. The rate must be determined by dividing the sum of the lowest charge per kilowatt-hour offered by each public utility and each cooperative association under any of its rate schedules applicable to its residential, commercial or industrial customers or members in Nevada by the total number of public utilities and cooperative associations which furnish electricity in this State. No charges may be included for minimum billings or costs relating to standby, customers or demand. A public utility or cooperative association shall provide such information as is necessary for the Commission to determine the maximum rate for interruptible service pursuant to this section.

2. As used in this section:

(a) “Cooperative association” means a cooperative association, nonprofit cooperation or association or any other provider of services described in this chapter that supplies those services for the use of its members; and

(b) “Public utility” includes a municipal utility as defined in NRS 702.060.

(Added to NRS by 1981, 1152; A 1987, 22; 2007, 2867)

1. Except as otherwise provided in this section or in any special law for the incorporation of a city, it is unlawful for any public utility, for any purpose or object whatever, in any city or town containing more than 7,500 inhabitants, to install, operate or use, within such city or town, any mechanical water meters or similar mechanical device, to measure the quantity of water delivered to residential water users.

2. A public utility which furnishes water shall file with the Commission a schedule establishing a separate individual and joint rate or charge for residential users who have installed water meters or similar devices to measure the consumption of water.

3. A water meter or similar device may be installed to measure the consumption of water by a residential customer:

(a) With the consent of the customer; and

(b) To obtain information concerning a representative sample of residential customers to determine what benefits, if any, would be derived from the installation and use of water meters for residential customers generally.

Ê Unless the residential customer has agreed, in writing, to pay the separate rate, the public utility shall charge the residential customer for whom a meter is installed the same amount for water used as if no meter had been installed.

4. A water meter or similar device may be installed to measure the quantity of water delivered and determine the charge to residential users of water if:

(a) The owner of the property on which it is installed consents in writing to the installation, operation and use of the device; and

(b) The written consent is recorded with the county recorder of the county in which the property is located.

Ê The written consent binds any successor in interest to that property to the provisions thereof.

5. Every newly constructed residential building which is occupied for the first time after July 1, 1988, must be equipped with a water meter.

6. This section does not apply to cities and towns owning and operating municipal waterworks, or to cities and towns located in a county whose population is 700,000 or more.

[Part 13:109:1919; A 1931, 320; 1955, 421]—(NRS A 1961, 101; 1967, 357; 1969, 1545; 1977, 1402; 1979, 559; 1985, 656; 1989, 1934; 2011, 1308)

1. Every newly constructed residential building which is occupied for the first time after July 1, 1988, must be equipped with a water meter.

2. Subsection 1 does not apply to cities and towns owning and operating municipal waterworks, or to cities and towns located in a county whose population is 700,000 or more.

[Part 13:109:1919; A 1931, 320; 1955, 421]—(NRS A 1961, 101; 1967, 357; 1969, 1545; 1977, 1402; 1979, 559; 1985, 656; 1989, 1394, 1934, 1937; 2011, 1308, effective when certain conditions concerning agreement between Sierra Pacific Power Company and Pyramid Lake Paiute Tribe have been met)

NRS 704.235 Use by local government of facilities of public utility for treatment, transportation or exchange of water.

1. The Commission may, upon application of a local government which provides water services, issue an order directing a public utility which has facilities for the treatment and transmission of water to allow the local government to use the facilities to treat, transport or exchange water, or any combination thereof, to service connections not served by the public utility. The order may require the public utility to do everything reasonably necessary, as determined by the Commission, to treat, transport or exchange water. The Commission shall determine the rates and charges to be paid by the local government to the public utility for the services provided. In making this determination, the Commission shall consider all direct and indirect costs attributable to the treatment, transportation or exchange of water. The order may impose conditions and requirements on the local government and public utility to ensure that customers of the utility continue to receive at just and reasonable rates, an adequate supply of water.

2. A local government which files an application with the Commission pursuant to subsection 1 shall file a copy of that application with each city planning commission of an affected incorporated city and with the regional planning commission of an affected county, if one exists, for its review and comment.

3. The provisions of this section do not preclude any local government from bringing an action pursuant to chapter 37 of NRS for the same purpose for which a local government is allowed to use the facilities of a public utility pursuant to this section.

(Added to NRS by 1989, 726)

NRS 704.240 Powers of Commission: Purchase of apparatus for examinations and tests; entry on premises to make examination and test; penalties for refusal to allow examination.

1. The Commission may, in its discretion, purchase such materials, apparatus and standard measuring instruments for such examination and tests as it deems necessary.

2. The Commission may enter upon any premises occupied by any public utility for the purpose of making the examination and tests provided for in this chapter and set up and use on the premises any necessary apparatus and appliances and occupy reasonable space therefor.

3. Any public utility refusing to allow the examination to be made as herein provided is subject to the penalties prescribed in NRS 703.380.

[Part 13:109:1919; A 1931, 320; 1955, 421]—(NRS A 1981, 1598)

NRS 704.250 Powers of Commission: Standards for maintenance, use and operation of electric poles, wires, cables and appliances. The Commission is authorized and directed to prescribe the standards for the maintenance, use and operation of electric poles, wires, cables and appliances of all public utilities within the State engaged in the business of furnishing electric power, light and energy.

[Part 13:109:1919; A 1931, 320; 1955, 421]

NRS 704.260 Powers of Commission: Requiring repair and construction of property and use of appliances for safety; regulations. The Commission shall have power, in the interest of safety or service, after hearing:

1. To determine and order required and necessary repairs, reinforcements, construction and connection of property, lines, equipment, appliances, buildings, tracks and all property used or useful in public utility service.

2. To order the use of safety appliances in the interest of the public.

3. To make and enforce necessary rules and regulations.

[Part 18:109:1919; A 1925, 243; 1929, 73; NCL § 6117]—(NRS A 1973, 1024)

NRS 704.280 Powers of Commission: Regulation of lines and tracks; regulations; safety devices. The Commission may:

1. Regulate the manner in which power and telephone lines, pipelines and the tracks of any street, steam or electric railroad or other common carrier cross or connect with any other such lines or common carriers.

2. Prescribe such regulations and safety devices, respectively, as may be necessary for the purpose of securing adequate service and for the protection of the public.

[Part 18:109:1919; A 1925, 243; 1929, 73; NCL § 6117]—(NRS A 1963, 813; 1981, 155; 2013, 1947)

NRS 704.285 Violation of law governing interception or disclosure of communications made by wire or radio: Investigation; hearing; orders to cease and desist.

1. The Commission, upon its own information or knowledge or upon a complaint by any person, firm, partnership or corporation that any public utility is acting in violation of the provisions of NRS 179.410 to 179.515, inclusive, or NRS 200.610 to 200.690, inclusive, or is knowingly allowing another person to violate those provisions, shall proceed without notice to make an investigation of the information or complaint.

2. If, after its investigation, the Commission determines that there is probable cause to believe that the utility is acting in violation of the provisions of NRS 179.410 to 179.515, inclusive, or NRS 200.610 to 200.690, inclusive, or allowing another to act in violation of those provisions, the Commission shall forthwith issue a cease and desist order to the utility. The order is permanent unless the utility, within 20 days after receipt of the order, files a written request for a hearing with the Commission.

3. When a written request for a hearing is filed pursuant to subsection 2, the Commission shall conduct the hearing pursuant to the provisions of NRS 703.320 to 703.370, inclusive.

4. If, as the result of a hearing, it is determined that the utility is acting in violation of the provisions of NRS 179.410 to 179.515, inclusive, or NRS 200.610 to 200.690, inclusive, or allowing another to act in violation of those provisions, the Commission shall issue a permanent cease and desist order and notify the district attorney of the county where the violation occurred of its determination.

5. This section is applicable whether or not the utility involved is required to have a certificate of public convenience and necessity from the Commission.

(Added to NRS by 1967, 958; A 1969, 999; 1973, 1750; 1979, 247)

NRS 704.300 Railroad crossings: Powers of Commission; payment of expenses.

1. After an investigation initiated either upon the Commission’s own motion or as the result of the filing of a formal application or complaint by the Department of Transportation, the board of county commissioners of any county, the town board or council of any town or municipality, or any railroad company, the Commission may order for the safety of the traveling public:

(a) The elimination, alteration, addition or change of a highway crossing or crossings over any railroad at grade, or above or below grade, including its approaches and surface.

(b) Changes in the method of crossing at grade, or above or below grade.

(d) The removal of obstructions to the public view in approaching any crossing.

(e) Such other details of use, construction and operation as may be necessary to make grade-crossing elimination, changes and betterments for the protection of the public and the prevention of accidents and motor vehicle crashes effective.

2. The Commission shall order that the cost of any elimination, removal, addition, change, alteration or betterment so ordered must be divided and paid in such proportion by the State, county, town or municipality and the railroad or railroads interested as is provided according to the circumstances occasioning the cost in NRS 704.305.

3. If the Commission chooses to conduct a hearing before issuing an order pursuant to subsection 1, all costs incurred by reason of the hearing, including, but not limited to, publication of notices, reporting, transcripts and rental of hearing room, must be apportioned 50 percent to the governmental unit or units affected and 50 percent to the railroad or railroads.

[18A:109:1919; 1919 RL p. 3160; NCL § 6118]—(NRS A 1963, 813; 1971, 573; 1979, 1816; 2007, 1772; 2015, 1699)

NRS 704.305 Railroad crossings: Apportionment of costs of construction, reconstruction and protective devices; maintenance of surface.

1. The entire cost of a new grade crossing or a new grade separation, including any automatic protection devices that may be required, where no existing grade crossing located at or in the immediate vicinity of the new grade crossing or grade separation structure is eliminated, shall be apportioned to and borne by the governmental unit or units affected if a governmental unit initiates the proceeding, or by the railroad or railroads if the proceeding is initiated by a railroad.

2. Where a new grade separation will directly result in the elimination of an existing grade crossing located at or in the immediate vicinity of the grade separation or an existing grade separation is reconstructed, 13 percent of the cost shall be apportioned to and borne by the railroad or railroads and the remainder of the cost shall be apportioned to and borne by the governmental unit or units affected. If a grade separation structure provides either more highway lanes or space for more highway lanes than are in place on the existing highway grade crossing being eliminated, the railroad share of cost shall be limited to 13 percent of the cost of constructing a grade separation structure having the same number of highway lanes that were in place on the highway prior to construction of the grade separation structure.

3. Where automatic protection devices are added or materially altered, changed or improved at an existing grade crossing, 87 percent of the cost of such added, altered, changed or improved automatic protection devices shall be apportioned to and borne by the governmental unit or units affected and 13 percent of the cost shall be apportioned to and borne by the railroad or railroads.

4. The cost of maintaining any new, added or materially altered, changed or improved grade crossing automatic protection devices and appurtenances shall be apportioned 50 percent to the governmental unit or units affected and 50 percent to the railroad or railroads.

5. The maintenance of a new or reconstructed grade separation structure shall be performed by the governmental unit or units affected, and the cost thereof shall be apportioned to and be borne by the governmental unit or units affected, except that the maintenance of waterproofing, ballast, ties, tracks and other railroad equipment shall be performed by the railroad or railroads, and the cost of such maintenance shall be apportioned to and borne by the railroad or railroads.

6. The railroad shall maintain at its expense the surface of grade crossings to a distance of 2 feet on the outer side of each outermost rail, and such maintenance shall include, but is not limited to, the railroad roadbed, rails and all appurtenant facilities.

7. On projects where federal funds are used, apportionment and division of costs shall be in accordance with federal law and the rules, regulations and orders of the federal agency administering such law to the extent that such law, rule or regulations and orders require a different apportionment of costs than is set forth in this section. The provisions of this section may not otherwise be invoked on projects to the extent that such federal law, rules, regulations and orders are applicable.

8. The provisions of this section impose no limitation upon the right of governmental units or railroads to negotiate agreements apportioning costs. To the extent that costs are apportioned by such agreement, the Commission shall order that costs be apportioned and borne in the manner provided by such agreement.

(Added to NRS by 1971, 572)

1. Perform such duties and functions as are necessary:

(a) To ensure the safety of railroad equipment, facilities, rolling stock and operations in this state.

(b) For this state to participate in any federal safety program relating to railroads.

2. Adopt such regulations as it determines are necessary in carrying out the provisions of this section.

(Added to NRS by 1997, 1274)

1. The Commission shall levy and collect an annual assessment from each railroad subject to the jurisdiction of the Commission that transports cargo into, out of or through this State to support the activities of the Commission relating to railroad safety.

2. The annual assessment levied on railroads:

(a) Must be equal to the costs incurred by the Commission that are not offset by the fees paid pursuant to NRS 459.512.

(b) Must be not more than 1 cent per ton of cargo transported by the railroads into, out of or through this State during the immediately preceding calendar year.

3. On or before September 1 of each year, the Commission shall:

(a) Calculate the amount of the assessment to be levied pursuant to this section for the previous fiscal year; and

(b) Mail to each railroad subject to the provisions of this section to the current address of the railroad on file with the Commission a notice indicating the amount of the assessment. The failure of the Commission to so notify a railroad does not invalidate the assessment.

4. An assessment levied pursuant to this section is due on or before November 1 of each year. Each railroad that is subject to the provisions of this section which fails to pay the assessment on or before December 1, shall pay, in addition to the assessment, a fee of 1 percent of the total unpaid balance for each month or portion thereof that the assessment is delinquent or $10, whichever is greater, except that no fee may exceed $1,000 for each delinquent payment.

5. If a railroad sells or transfers its certificate of public convenience and necessity or sells or transfers substantially all of its assets, the Commission shall calculate, levy and collect the accrued assessment for the current year not later than 30 days after the sale or transfer, unless the purchaser or transferee has assumed liability for the assessment. For the purposes of this subsection, the jurisdiction of the Commission over the sale or transfer of a railroad continues until the assessment of the railroad has been paid.

6. The Commission may bring an appropriate action in its own name for the collection of any assessment and fee that is not paid pursuant to this section.

(Added to NRS by 1997, 1496; A 2001, 1765; 2007, 37)

NRS 704.310 Sale of surplus light, heat or power by person not public utility: Application; approval of contract by Commission.

1. Whenever any person, company, corporation or association which is not engaged in business as a public utility as defined by this chapter, and which does not furnish, sell, produce or deliver to others light, heat or power, under a franchise received from this State or from any county or municipality within this State, is able, from any surplus beyond the needs or requirements of its own business, and desires to sell, produce, furnish and deliver to any other person, company, association or corporation any light, heat or power, the person, company, association or corporation shall apply to the Commission for authority to sell, produce, furnish or deliver any such surplus light, heat or power, and shall submit to the Commission the proposed contract by which such light, heat or power is to be sold, furnished, produced or delivered.

2. The Commission shall thereupon ascertain whether it is advisable in the public interest that the contract be executed and, if the Commission approves the contract, then the person, company, corporation or association has the right to furnish, sell, produce and deliver such light, heat or power in accordance with the terms of the contract, and does not thereby become a public utility within the meaning of this chapter, nor is it subject to the jurisdiction of the Commission.

[37:109:1919; 1919 RL p. 3166; NCL § 6138]—(NRS A 1997, 1911)

NRS 704.320 Purchase of surplus water or electric current by public utility for resale; application filed with Commission; approval of application; seller not deemed public utility.

1. Every person, company, corporation or association which is engaged in business in this state as a public utility shall have, and is hereby given, the right to purchase water or electric current for its use as such public utility from any other person or corporation having for sale a surplus of such water or electric current.

2. Any public utility desiring to purchase such water or electric current for resale or for purposes other than its own use shall file an application with the Commission, setting forth:

(a) The terms and conditions of the proposed purchase of such electric current or water.

(b) The person or corporation from whom such purchase is proposed to be made.

(d) Such other information relative thereto and in the possession of the applicant as the Commission shall prescribe.

3. If the Commission shall find it desirable in the public interest that the purchase be made, it shall approve the application, and upon approval the public utility may make and execute the contract of purchase.

4. The person or corporation selling such water or electric current to the public utility under the contract approved by the Commission shall not thereby become, or be deemed to be, a public utility within the meaning of any statute of this state, nor shall it by virtue of such contract be deemed to be within or subject to the jurisdiction of the Commission in any respect whatsoever, nor shall it thereby be deemed to be in any sense a public service corporation, or engaged in a public service.

5. The terms and provisions of this section shall be taken and considered to be a part of any such contract, and the faith of the State of Nevada is hereby pledged against any alteration, amendment or repeal of this section during the existence of any such contract, or any extension thereof, approved by the Commission.

[1:103:1921; NCL § 6147] + [2:103:1921; NCL § 6148] + [3:103:1921; NCL § 6149]

STOCKS AND SECURITY TRANSACTIONS

NRS 704.322 “Security” defined. As used in NRS 704.322 to 704.328, inclusive, “security” means any note, stock, treasury stock, bond, debenture or other evidence of interest in or indebtedness of a person, firm or corporation.

(Added to NRS by 1957, 444)

NRS 704.323 Issuance of security or assumption of obligation by privately owned public utility subject to authorization by Commission; exceptions.

1. No privately owned public utility organized under the laws of and operating in the State of Nevada shall issue any security, or assume any obligation as guarantor, endorser, surety or otherwise, in respect of any security of any other person, firm or corporation, unless and until, and only to the extent, authorized by a written order of the Commission.

2. The provisions of subsection 1 shall not apply to the issue or renewal of, or assumption of liability on, a note or draft maturing not more than 1 year after the date of such issue, renewal or assumption of liability, but in the case of privately owned electric or combination electric utilities subject to the jurisdiction of the Commission the provisions of subsection 1 shall apply to all security issues, or renewals or assumption of obligations as guarantor, endorser, surety or otherwise, having a maturity of 1 year or less where the combined sum of such security issues, renewals or assumptions exceeds $1,000,000 or 5 percent of the par value of the other securities of the public utility then outstanding. In case of securities having no par value the par value for purposes of this subsection shall be the fair market value as of the date of issue of the privately owned or combination electric utilities, whichever sum is greater.

(Added to NRS by 1957, 444; A 1965, 1011)

NRS 704.324 Order authorizing issuance of security or assumption of obligation; variable-rate securities; supplemental order; findings; conditions.

1. Upon receipt of an application for an order authorizing the issuance of any security or the assumption of any obligation in respect to any security of another, the Commission may grant the application in whole or in part and with such modifications and upon such terms and conditions as it may find necessary or appropriate.

2. The Commission may authorize the issuance of a variable-rate security and it may authorize the public utility to use a method for accounting and rate making for an existing or new variable-rate security which ensures that the recovery of the utility’s expenses for issuing or maintaining that security from the rates charged to its customers will equal the interest or dividends actually paid on the security.

3. The Commission shall not require a public utility to issue or maintain a variable-rate security if the recovery of the utility’s expenses for issuing or maintaining that security from the rates charged to its customers does not equal the interest or dividends actually paid on the security.

4. The Commission may from time to time make such supplemental orders in the premises as it may find necessary or appropriate. The supplemental order may modify the provisions of any previous order as to the particular purposes, uses and extent to which, or the conditions under which, any security theretofore authorized or the proceeds thereof may be applied.

5. The Commission shall not make any order or supplemental order granting any application hereunder unless it finds that the issue or assumption:

(a) Is for some lawful object, within the corporate purposes of the applicant and compatible with the public interest, which is necessary or appropriate for or consistent with the proper performance by the applicant of service as a public utility and which will not impair its ability to perform that service; and

(b) Is reasonably necessary or appropriate for those purposes.

6. The Commission shall not authorize the capitalization of the right to be a corporation or any franchise, permit or contract for consolidation, merger or lease in excess of the amount, exclusive of any tax or annual charge, actually paid as the consideration for the right, franchise, permit or contract.

(Added to NRS by 1957, 444; A 1989, 1113)

NRS 704.325 Limitations on application of security or proceeds. No public utility shall, without the consent of the Commission, apply any security or any proceeds thereof to any purpose not specified in the Commission’s order, or supplemental order, or to any purpose in excess of the amount allowed for such purpose in such order, or otherwise in contravention of such order.

(Added to NRS by 1957, 445)

NRS 704.326 Guarantee or obligation of State not implied. Nothing in NRS 704.322 to 704.325, inclusive, shall be construed to imply any guarantee or obligation on the part of the State of Nevada in respect of any securities to which the provisions of such sections relate.

(Added to NRS by 1957, 445)

NRS 704.327 Payment of necessary expenses of Commission by public utility. All necessary expenses incurred by the Commission in the administration of NRS 704.322 to 704.326, inclusive, shall be charged against and collected from the public utility by the Commission.

(Added to NRS by 1957, 445; A 1973, 1834)

NRS 704.328 Inapplicability of NRS 704.322 to 704.326, inclusive, to certain public utilities. The provisions of NRS 704.322 to 704.326, inclusive, do not apply to:

1. A public utility engaged in:

(a) Interstate commerce if 25 percent or more of the operating revenues of such public utility are derived from interstate commerce.

(b) The business of furnishing, for compensation, water or services for the disposal of sewage, or both, to persons within this State if the utility:

(1) Serves 15 persons or less; and

(2) Operates in a county whose population is 700,000 or more.

2. A competitive supplier.

(Added to NRS by 1957, 445; A 1963, 814; 1965, 1011; 2003, 369; 2007, 702; 2011, 1308)

MERGERS, ACQUISITIONS OR CHANGES IN CONTROL

1. Except as otherwise provided in subsection 6, a person shall not merge with, directly acquire, indirectly acquire through a subsidiary or affiliate, or otherwise directly or indirectly obtain control of a public utility doing business in this State or an entity that holds a controlling interest in such a public utility without first submitting to the Commission an application for authorization of the proposed transaction and obtaining authorization from the Commission.

2. Any transaction that violates the provisions of this section is void and unenforceable and is not valid for any purpose.

3. Before authorizing a proposed transaction pursuant to this section, the Commission shall consider the effect of the proposed transaction on the public interest and the customers in this State. The Commission shall not authorize the proposed transaction unless the Commission finds that the proposed transaction:

(a) Will be in the public interest; and

(b) Complies with the provisions of NRS 704.7561 to 704.7595, inclusive, if the proposed transaction is subject to those provisions.

4. The Commission may base its authorization of the proposed transaction upon such terms, conditions or modifications as the Commission deems appropriate.

5. If the Commission does not issue a final order regarding the proposed transaction within 180 days after the date on which an application or amended application for authorization of the proposed transaction was filed with the Commission, and the proposed transaction is not subject to the provisions of NRS 704.7561 to 704.7595, inclusive, the proposed transaction shall be deemed to be authorized by the Commission.

6. The provisions of this section do not apply to:

(a) The transfer of stock of a public utility doing business in this State or to the transfer of the stock of an entity that holds a controlling interest in such a public utility, if a transfer of not more than 25 percent of the common stock of such a public utility or entity is proposed.

(b) Except as otherwise provided in this paragraph, a proposed transaction involving a public utility doing business in this State providing telecommunication services or an entity that holds a controlling interest in such a public utility if, in the most recently completed calendar year, not more than 10 percent of the gross operating revenue of the public utility or the entity that holds a controlling interest in the public utility was derived from intrastate telecommunication services provided to retail customers in this State by the public utility. A person who proposes such a transaction shall file with the Commission written notice of the proposed transaction. The notice must identify each party to the proposed transaction and include a verified statement that not more than 10 percent of the gross operating revenue of the public utility or the entity that holds a controlling interest in the public utility was derived from intrastate telecommunication services provided to retail customers in this State by the public utility in the most recently completed calendar year. Upon filing the notice required by this paragraph, the person may submit a written request that the Regulatory Operations Staff of the Commission and the Consumer’s Advocate waive the right pursuant to subparagraph (1) to request an order from the Commission requiring the person to file an application for authorization of the proposed transaction. If the Regulatory Operations Staff and the Consumer’s Advocate waive in writing the right to request an order from the Commission requiring the person to file an application, the proposed transaction is exempted from the provisions of this section. Such a proposed transaction is not exempted from the provisions of this section if:

(1) Not later than 30 days after the date on which the person undertaking the proposed transaction files the notice required by this paragraph, the Regulatory Operations Staff of the Commission or the Consumer’s Advocate requests an order from the Commission requiring the person to file an application for authorization of the proposed transaction, and has not waived its right to request such an order;

(2) The request alleges in sufficient detail that the proposed transaction may materially affect retail customers of public utilities in this State; and

(3) The Commission issues an order requiring the person to file an application for authorization of the proposed transaction.

(c) A public utility engaged in the business of furnishing, for compensation, water or services for the disposal of sewage, or both, to persons within this State if the utility:

(1) Serves 15 persons or less; and

(2) Operates in a county whose population is 700,000 or more.

(d) A provider of commercial mobile radio service.

7. As used in this section:

(a) “Person” means:

(1) A natural person;

(2) Any form of business or social organization and any other nongovernmental legal entity, including, without limitation, a corporation, partnership, association, trust or unincorporated organization;

(3) A government or an agency or instrumentality of a government, including, without limitation, this State or an agency or instrumentality of this State; and

(4) A political subdivision of this State or of any other government or an agency or instrumentality of a political subdivision of this State or of any other government.

(b) “Transaction” means a merger, acquisition or change in control described in subsection 1.

(Added to NRS by 1997, 3042; A 2001, 349, 3250; 2003, 369; 2011, 1308; 2013, 199)

CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY

NRS 704.3296 “Electric utility” defined. As used in NRS 704.3296 to 704.410, inclusive, unless the context otherwise requires, “electric utility” has the meaning ascribed to it in NRS 704.7571.

(Added to NRS by 2001, 343; A 2007, 38, 494)

1. Except as otherwise provided in this section, any person owning, controlling, operating or maintaining or having any contemplation of owning, controlling or operating any public utility shall, before beginning such operation or continuing operations or construction of any line, plant or system or any extension of a line, plant or system within this State, obtain from the Commission a certificate that the present or future public convenience or necessity requires or will require such continued operation or commencement of operations or construction.

2. The provisions of this section do not require a public utility to secure such a certificate for any extension within any town or city within which it lawfully has commenced operations or for any other extension if the extension:

(a) Is undertaken by a small-scale provider of last resort to serve a telephone toll station or stations to be located not more than 10 miles from existing telephone facilities;

(b) Is undertaken for any purpose by a competitive supplier; or

(c) Remains within the boundaries of the service area which have been established by the Commission for its railroad, line, plant or system, and not then served by a public utility of like character.

3. Upon the granting of any certificate of public convenience, the Commission may make such an order and prescribe such terms and conditions for the location of lines, plants or systems to be constructed, extended or affected as may be just and reasonable.

4. When a complaint has been filed with the Commission alleging that any utility is being operated without a certificate of public convenience and necessity as required by this section, or when the Commission has reason to believe that any provision of this section is being violated, the Commission shall investigate such operations and the Commission may, after a hearing, make its order requiring the owner or operator of the utility to cease and desist from any operation in violation of this section. The Commission shall enforce compliance with such an order under the powers vested in the Commission by law.

5. If any public utility in constructing or extending its line, plant or system interferes or is about to interfere with the operation of the line, plant or system of any other public utility already constructed, the Commission, on complaint of the public utility claiming to be injuriously affected, after hearing, may make such an order prohibiting the construction or extension, or prescribing such terms and conditions for the location of the lines, plants or systems affected, as to it may seem just and reasonable.

6. Except as otherwise provided in subsections 7 and 8, if the Commission, after a hearing upon its own motion or upon complaint, finds that there is or will be a duplication of service by public utilities in any area, the Commission shall either issue a certificate of public convenience and necessity assigning specific territories to one or to each of such utilities, or, by certificate of public convenience and necessity, otherwise define the conditions of rendering service and construction, extensions within such territories, and shall order the elimination of such duplication, all upon such terms as are just and reasonable, having due regard to due process of law and to all the rights of the respective parties and to public convenience and necessity.

7. The Commission may allow and regulate a duplication of service by telecommunication providers in an area where the provider of last resort is a small-scale provider of last resort if the Commission finds that the competition should occur and that any duplication of service is reasonable.

8. The Commission:

(a) Shall allow a duplication of service or facilities by telecommunication providers in an area where the provider of last resort is a competitive supplier; and

(b) On or after January 1, 2012, shall not regulate a duplication of service or facilities by telecommunication providers in an area where the provider of last resort is a competitive supplier.

9. A competitive supplier that is a provider of last resort:

(a) Must provide to the Commission a description of and map depicting the boundaries of the service area in which the Commission has designated the competitive supplier as the provider of last resort; and

(b) May change the boundaries of that service area by filing an application with the Commission. The application shall be deemed approved if the Commission does not act on the application within 120 days after the date the application is filed with the Commission.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955, 407]—(NRS A 1959, 269; 1963, 814, 1117; 1971, 727; 1985, 1018; 2007, 703)

NRS 704.340 Municipalities and certain trusts for furtherance of public functions not required to obtain certificates; approval and jurisdiction of Commission.

1. Subject to the provisions of subsection 3, a municipality constructing, leasing, operating or maintaining any public utility, or a trust created for the benefit and furtherance of any public function pursuant to the provisions of general or special law, is not required to obtain a certificate of public convenience, but any trust so created which undertakes the operation of a public utility shall first submit a certified copy of the trust documents or prepared trust documents to the Commission together with a detailed explanation of the purposes, scope, area to be affected and such other pertinent information necessary to assist the Commission in making a determination as to whether the service presently being offered by any existing public utility would be unreasonably impaired by the approval of such trust documents.

2. The Commission shall, after investigation and hearing on any contemplated trust coming within the provisions of subsection 1, submit a report of its findings and reasons therefor to the State and each political subdivision within which such trust contemplates operation. Such trust does not become effective unless and until written approval has been given by the Commission.

3. If a municipality assumes operation and control of a package plant for sewage treatment pursuant to the provisions of NRS 445A.555 or subsection 2 or 3 of NRS 268.4105, the plant is exempt from the jurisdiction of the Commission only for the period of time the municipality continues the maintenance and operation of the plant. The certificate of public convenience as it applies to that plant is suspended for that period of time.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955, 407]—(NRS A 1971, 1036; 1975, 1409; 1979, 1921; 1997, 1911)

NRS 704.350 Prerequisites to issuance of certificate. Every applicant for a certificate of public convenience shall furnish such evidence of its corporate character and of its franchise or permits as may be required by the Commission.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955, 407]

NRS 704.355 Considerations for issuance of certificate to certain utilities providing water service or sewage service. In determining whether to issue a certificate of public convenience and necessity to a new public utility that authorizes the construction, ownership, control or operation of any line, plant or system for the purpose of furnishing water for municipal, industrial or domestic purposes or services for the disposal of sewage, or both, the Commission shall consider whether another public utility or person is ready, willing and able to provide the services in the geographic area proposed by the applicant for the certificate.

(Added to NRS by 2007, 488)

NRS 704.360 Conduct of investigations and hearings. All hearings and investigations under NRS 704.3296 to 704.410, inclusive, shall be conducted substantially as is provided for hearings and investigations of tolls, charges and service.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955, 407]—(NRS A 2007, 38)

NRS 704.370 Issuance or refusal of certificate: Terms and conditions; hearing required for certain applications; power of Commission to dispense with hearing for certain applications.

1. The Commission shall have the power, after hearing, to issue or refuse such certificate of public convenience, or to issue it for the construction of a portion only of the contemplated line, plant or systems, or extension thereof, and may attach thereto such terms and conditions as, in its judgment, the public convenience and necessity may require.

2. Except as otherwise provide in subsection 3, the Commission, in its discretion and after investigation, may dispense with the hearing on the application 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.

3. The Commission shall not dispense with the hearing on the application of an electric utility.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955, 407]—(NRS A 1963, 814; 2001, 350)

NRS 704.380 Public utility beginning, prosecuting or completing new construction without certificate: Levy of tolls and charges prohibited and void; exceptions.

1. Except as otherwise provided in subsection 2, any public utility beginning, prosecuting or completing any new construction in violation of this chapter is not permitted to levy any tolls or charges for services rendered, and all such tolls and charges are void.

2. The provisions of subsection 1 do not apply to a competitive supplier that is operating in accordance with the provisions of this chapter governing telecommunication providers.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955, 407]—(NRS A 2007, 704)

1. Except as otherwise provided in NRS 704.68861 to 704.68887, inclusive, 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. Except as otherwise provided in subsection 3, 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.

3. The Commission shall not dispense with the hearing on the application of an electric utility.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955, 407]—(NRS A 1963, 815; 1969, 1159; 2001, 350; 2007, 704; 2021, 1748)

NRS 704.400 Order of Commission prima facie lawful from date of order. Every order refusing or granting any certificates of public convenience, or granting or refusing permission to discontinue, modify or restrict service, as provided in NRS 704.3296 to 704.410, inclusive, is prima facie lawful from the date of the order until changed or modified by the order of the Commission or pursuant to NRS 703.373 to 703.376, inclusive.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955, 407]—(NRS A 1983, 968; 2007, 38)

1. Any public utility subject to the provisions of NRS 704.001 to 704.7595, inclusive, to which a certificate of public convenience and necessity has been issued pursuant to NRS 704.001 to 704.7595, inclusive, may transfer the certificate to any person qualified under NRS 704.001 to 704.7595, inclusive. Such a transfer is void and unenforceable and is not valid for any purpose unless:

(a) A joint application to make the transfer has been made to the Commission by the transferor and the transferee or the transfer is incident to a transaction that is subject to an application under NRS 704.329 approved by the Commission; and

(b) The Commission has authorized the substitution of the transferee for the transferor. If the transferor is an electric utility, the Commission shall not authorize the transfer unless the transfer complies with the provisions of NRS 704.7561 to 704.7595, inclusive.

2. The Commission:

(a) Shall conduct a hearing on a transfer involving an electric utility. The hearing must be noticed and conducted in the same manner as other contested hearings before the Commission.

(b) May direct that a hearing be conducted on a transfer involving any other public utility. If the Commission determines that such a hearing should be held, the hearing must be noticed and conducted in the same manner as other contested hearings before the Commission. The Commission may dispense with such a hearing if, upon the expiration of the time fixed in the notice thereof, no protest to the proposed transfer has been filed by or on behalf of any interested person.

3. In determining whether the transfer of a certificate of public convenience and necessity to an applicant transferee should be authorized, the Commission must take into consideration:

(a) The utility service performed by the transferor and the proposed utility service of the transferee;

(b) Other authorized utility services in the territory for which the transfer is sought;

(c) Whether the transferee is fit, willing and able to perform the services of a public utility and whether the proposed operation will be consistent with the legislative policies set forth in NRS 704.001 to 704.7595, inclusive; and

(d) Whether the transfer will be in the public interest.

4. The Commission may make such amendments, restrictions or modifications in a certificate upon transferring it as the public interest requires.

5. No transfer is valid beyond the life of the certificate transferred.

[Part 36 1/2:109:1919; A 1925, 243; 1947, 743; 1955, 407]—(NRS A 1963, 815; 1969, 1159; 1971, 1118; 1985, 316; 1989, 727; 1997, 3042; 2001, 350; 2007, 704)

VALUATION OF PROPERTY

NRS 704.440 Investigation and ascertainment of value of property of public utility; exceptions.

1. Except as otherwise provided in subsection 2, the Commission may, in its discretion, investigate and ascertain the value of all property of every public utility actually used and useful for the convenience of the public. In making such an investigation, the Commission may avail itself of all information contained in the assessment rolls of the various counties and the public records and files of all state departments, offices and commissions, and any other information obtainable.

2. The provisions of subsection 1 do not apply to a competitive supplier.

[8:109:1919; 1919 RL p. 3157; NCL § 6107]—(NRS A 2007, 705)

VIOLATIONS, PENALTIES AND REMEDIES

NRS 704.595 Civil penalty for violation of regulations adopted in conformity with Natural Gas Pipeline Safety Act of 1968; compromise and recovery of penalty.

1. Any person who violates any provision of any regulation adopted by the Commission in conformity with the Natural Gas Pipeline Safety Act of 1968, as amended, 49 U.S.C. §§ 60101 et seq., or with a federal regulation adopted pursuant thereto, is subject to a civil penalty not to exceed $200,000 for each violation for each day that the violation persists, but the maximum civil penalty must not exceed $2,000,000 for any related series of violations. Unless compromised, the amount of any such civil penalty must be determined by a court of competent jurisdiction.

2. 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.

3. The amount of the penalty, when finally determined, or the amount agreed upon in compromise, may be deducted from any sum owing by the State to the person charged or may be recovered in a civil action in any court of competent jurisdiction.

(Added to NRS by 1969, 1000; A 1993, 297; 2005, 304; 2015, 322)

NRS 704.600 Administrative fines for failure or refusal to make reports or allow examination. Any officer, agent or employee of any public utility who:

1. Willfully fails or refuses to fill out and return any blanks as required by this chapter;

2. Willfully fails or refuses to answer any questions therein propounded;

3. Knowingly or willfully gives a false answer to the questions;

4. Evades the answer to any question where the fact inquired of is within the knowledge of the officer, agent or employee; or

5. Upon proper demand, willfully fails or refuses to exhibit to the Commission or any Commissioners, or any person also authorized to examine the same, any book, paper or account of such public utility which is in the possession or under the control of the officer, agent or employee,

Ê is subject to the administrative fine prescribed in NRS 703.380.

[31:109:1919; 1919 RL p. 3164; NCL § 6131]—(NRS A 1981, 1598; 2007, 38)

NRS 704.630 Additional civil remedies of Commission. In addition to all the other remedies provided by this chapter for the prevention and punishment of any and all violations of the provisions thereof and of all orders of the Commission, the Commission may compel compliance with the provisions of this chapter and with the orders of the Commission by proceedings in mandamus, injunction or by other civil remedies.

[38:109:1919; 1919 RL p. 3166; NCL § 6139]

NRS 704.635 Order by Commission to cease and desist. 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 704.754, inclusive, or 704.9901 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 704.754, inclusive, or 704.9901. The Commission shall enforce the order under the powers vested in the Commission by NRS 704.005 to 704.754, inclusive, or 704.9901 or other law.

(Added to NRS by 1969, 1161; A 1985, 317; 1989, 728; 2003, 3029; 2017, 2471)

NRS 704.638 Unlawful to post sign on device of public utility used to support line for telephone or electricity. It is unlawful for any person to post any advertising sign, display or device, including a temporary political sign, on any pole, support or other device of a public utility which is used to support a telephone or electric transmission line.

(Added to NRS by 1979, 436; A 2013, 1948)

NRS 704.640 Criminal penalties. Except as otherwise provided in NRS 704.6881 to 704.6884, inclusive, any person who:

1. Operates any public utility to which NRS 704.005 to 704.754, inclusive, 704.9901 and 704.993 to 704.999, inclusive, 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 704.754, inclusive, 704.9901 and 704.993 to 704.999, inclusive, or by the Commission pursuant to NRS 704.005 to 704.754, inclusive, 704.9901 and 704.993 to 704.999, inclusive;

3. Violates, or procures, aids or abets the violating of any provision of NRS 704.005 to 704.754, inclusive, 704.9901 and 704.993 to 704.999, inclusive;

4. Fails to obey any order, decision or regulation of the Commission;

5. Procures, aids or abets any person in the failure to obey the order, decision or regulation; or

6. Advertises, solicits, proffers bids or otherwise holds himself, herself or itself out to perform as a public utility in violation of any of the provisions of NRS 704.005 to 704.754, inclusive, 704.9901 and 704.993 to 704.999, inclusive,

Ê shall be fined not more than $50,000.

[41:109:1919; 1919 RL p. 3167; NCL § 6142]—(NRS A 1967, 656; 1969, 999; 1979, 1493; 1985, 317; 1989, 728; 1997, 1497, 1912, 3043; 1999, 631, 632, 1319, 1320; 2003, 3029; 2017, 2471; 2021, 271)

NRS 704.645 Remedies of State cumulative; election of remedies. The remedies of the State provided for in this chapter are cumulative, and no action taken by the Commission constitutes an election on the part of the State or any of its officers to pursue any remedy under this chapter to the exclusion of any other remedy for which provision is made in this chapter.

(Added to NRS by 1969, 1000)

CUSTOMER DEPOSITS

NRS 704.655 Public utility required to pay interest on deposits made by customers; penalty.

1. Every public utility which furnishes the public with light and power, telephone service, gas or water, or any of them, shall pay to every customer from whom any deposit has been required interest on the deposit at the rate fixed for 6-month Treasury bills of the United States at the first auction:

(a) On or after December 1 of any year for the period from January 1 to June 30 of the succeeding year; or

(b) On or after June 1 of any year for the period from July 1 to December 31 of that year,

Ê from the date of deposit until the date of settlement or withdrawal of deposit. Where the deposit remains for 1 year or more and the person making the deposit continues to be a customer, the interest on the deposit must be either paid in cash to the depositor or applied on current bills for the use of the service provided by the public utility, as the depositor may desire.

2. Any public utility which fails, refuses or neglects to pay the interest provided in subsection 1 in the manner required by subsection 1 is guilty of a misdemeanor.

(Added to NRS by 1971, 858; A 1981, 56, 840; 1983, 546; 1985, 2050)

WATER SERVICE AND SEWAGE SERVICE

NRS 704.660 Public utility supplying water required to provide reasonably adequate supply of water for fire protection at reasonable rates; regulations by Commission; proceedings; violations.

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, the installation of appliances to assure a reasonably sufficient pressure for fire protection and the maintenance of fire hydrants that are the property of the public utility and located either within a public right-of-way or upon private property to which the public utility is permitted reasonable access without cost.

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. 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.

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.

[1:255:1913; 1919 RL p. 3172; NCL § 6158] + [2:255:1913; 1919 RL p. 3172; NCL § 6159] + [3:255:1913; 1919 RL p. 3172; NCL § 6160] + [4:255:1913; 1919 RL p. 3173; NCL § 6161] + [5:255:1913; 1919 RL p. 3173; NCL § 6162]—(NRS A 1979, 248; 1989, 728; 2003, 3029; 2007, 494)

1. Except as otherwise provided in this section, a public utility that furnishes water for municipal, industrial or domestic purposes or services for the disposal of sewage, or both, and which had an annual gross operating revenue of $1,000,000 or more for at least 1 year during the immediately preceding 3 years shall, on or before March 1 of every third year, in the manner specified by the Commission, submit a plan to the Commission to provide sufficient water or services for the disposal of sewage to satisfy the demand made on its system by its customers. If a public utility furnishes both water and services for the disposal of sewage, its annual gross operating revenue for each service must be considered separately for determining whether the public utility meets the requirements of this subsection for either service.

2. A public utility may request a waiver from the requirements of subsection 1 by submitting such a request in writing to the Commission not later than 180 days before the date on which the plan is required to be submitted pursuant to subsection 1. A request for a waiver must include proof satisfactory that the public utility will not experience a significant increase in demand for its services or require the acquisition or construction of additional infrastructure to meet present or future demand during the 3-year period covered by the plan which the public utility would otherwise be required to submit pursuant to subsection 1.

3. The Commission shall, not later than 45 days after receiving a request for a waiver pursuant to subsection 2, issue an order approving or denying the request. The Commission shall not approve the request of a public utility for a waiver for consecutive 3-year periods.

4. The Commission:

(a) Shall adopt regulations to provide for the contents of and the method and schedule for preparing, submitting, reviewing and approving a plan submitted pursuant to subsection 1; and

(b) May adopt regulations relating to the submission of requests for waivers pursuant to subsection 2.

5. Not later than 180 days after a public utility has filed a plan pursuant to subsection 1, the Commission shall issue an order accepting or modifying the plan or specifying any portion of the plan it finds to be inadequate. If the Commission issues an order modifying the plan, the public utility may consent to or reject some or all of the modifications by filing with the Commission a notice to that effect. Any such notice must be filed not later than 30 days after the date of issuance of the order. If such a notice is filed, any petition for reconsideration or rehearing of the order must be filed with the Commission not later than 10 business days after the date the notice is filed.

6. If a plan submitted pursuant to subsection 1 and accepted by the Commission pursuant to subsection 5 and any regulations adopted pursuant to subsection 4 identifies a facility for acquisition or construction, the facility shall be deemed to be a prudent investment and the public utility may recover all just and reasonable costs of planning and constructing or acquiring the facility. For the purposes of this subsection, a plan shall be deemed to be accepted by the Commission only as to that portion of the plan accepted as filed or modified with the consent of the public utility pursuant to subsection 5.

7. All prudent and reasonable expenditures made by a public utility to develop a plan filed pursuant to subsection 1, including, without limitation, any environmental, engineering or other studies, must be recovered from the rates charged to the public utility’s customers.

(Added to NRS by 2007, 489; A 2009, 2476; 2013, 25; 2015, 1094)

1. Except as otherwise provided in subsection 5, each public utility which furnishes, for compensation, any water for municipal, industrial or domestic purposes shall adopt a plan of water conservation based on the climate and the living conditions in its service area in accordance with the provisions of NRS 704.6622. The provisions of the plan must only apply to the public utility’s property and its customers.

2. As part of the procedure of adopting a plan, the public utility shall provide an opportunity for any interested party, including, but not limited to, any private or public entity that supplies water for municipal, industrial or domestic purposes, to submit written views and recommendations on the plan.

3. Except as otherwise provided in subsection 6, the plan:

(a) Must be available for inspection by members of the public during office hours at the office of the public utility; and

(b) May be revised from time to time to reflect the changing needs and conditions of the service area. Each such revision must be filed with the Commission and made available for inspection by members of the public within 30 days after its adoption.

4. The plan must be approved by the Commission before it is put into effect.

5. In lieu of adopting a plan pursuant to subsection 1, a public utility which is subject to the provisions of NRS 704.095 may elect to comply with a plan of water conservation adopted by the Commission for this purpose.

6. If the public utility is required by order of the Commission to file a management plan for water resources, the public utility may adopt and file the plan of water conservation with the Commission at the same time it is required to file the management plan for water resources.

(Added to NRS by 1991, 522; A 2001, 1766)

NRS 704.6622 Plan of water conservation: Contents; approval by Commission.

1. A plan of water conservation submitted to the Commission for approval must include provisions relating to:

(a) Methods of public education to:

(1) Increase public awareness of the limited supply of water in this state and the need to conserve water.

(2) Encourage reduction in the size of lawns and encourage the use of plants that are adapted to arid and semiarid climates.

(b) Specific conservation measures required to meet the needs of the service area, including, but not limited to, any conservation measures required by law.

(c) The management of water to identify and reduce water loss in water supplies, inaccuracies in water meters and high pressure in water supplies, which must include, without limitation:

(1) Goals for acceptable levels of water loss in water supplies. Such goals may use the following performance indicators and analyses, without limitation:

(I) Infrastructure water loss index;

(II) Water audit data validity score;

(III) Operational basic apparent losses;

(IV) Operational basic real losses; and

(V) Economic level of water loss.

(2) A plan which analyzes how the public utility will progress towards the goals established for the acceptable levels of water loss.

(d) The management of water to, where applicable, increase the reuse of effluent.

(e) A contingency plan for drought conditions that ensures a supply of potable water.

(f) A schedule for carrying out the plan.

(g) A plan for how the public utility will progress towards the installation of meters on all connections, if applicable.

(h) Standards for water efficiency for new development.

(i) Tiered rate structures for the pricing of water to promote the conservation of water, including, without limitation, an estimate of the manner in which the tiered rate structure will impact the consumptive use of water.

(j) Watering restrictions based on the time of day and the day of the week.

(k) Measures to evaluate the effectiveness of the plan.

2. A plan submitted for approval must be accompanied by an analysis of the feasibility of charging variable rates for the use of water to encourage the conservation of water.

3. The Commission shall review any plan submitted to it and approve the plan if it is based on the climate and living conditions of the service area and complies with the requirements of this section.

(Added to NRS by 1991, 523; A 2019, 2105)

1. Except as otherwise provided in subsection 4, each public utility that is required to adopt or update a plan of water conservation in accordance with the provisions of NRS 704.662 and:

(a) Serves 3,300 persons or more must conduct a water loss audit in accordance with the methodology and software of the American Water Works Association for water loss auditing. The results of the water loss audit must be submitted by the public utility to the Commission with the plan of water conservation or update to the plan of water conservation, as applicable.

(b) Serves less than 3,300 persons must calculate the amount of water delivered by the supplier of water and the amount of water that was billed to customers of the supplier of water for each year. The calculations must be submitted by the public utility to the Commission with the plan for water conservation or update to the plan of water conservation, as applicable.

2. If the public utility has previously submitted the results of a water loss audit to the Commission pursuant to paragraph (a) of subsection 1, and is submitting an update to the plan of water conservation, the public utility must also submit to the Commission:

(a) A comparison between the results of the new water loss audit and the previous water loss audit; and

(b) An analysis of any progress made by the public utility towards the goals for acceptable water loss established in the plan for water conservation pursuant to paragraph (c) of subsection 1 of NRS 704.6622.

3. If the public utility has previously submitted the results of the calculations conducted pursuant to paragraph (b) of subsection 1 to the Commission, and is submitting an update to the plan of water conservation, the supplier must also submit to the Commission:

(a) A comparison between the results of the new calculations and the previous calculations; and

4. The provisions of this section do not apply to a transient water system as defined in NRS 445A.848.

(Added to NRS by 2019, 2104)

NRS 704.6624 Plan to provide incentives for water conservation: Procedure for adoption; revision; review and approval by Commission.

1. Each public utility which furnishes, for compensation, any water for municipal, industrial or domestic purposes shall adopt a plan to provide incentives:

(a) To encourage water conservation in its service area;

(b) To retrofit existing structures with plumbing fixtures designed to conserve the use of water; and

2. As part of the procedure of adopting a plan, the public utility shall provide an opportunity for any interested person to submit written views and recommendations on the plan.

3. The plan:

(a) Must be available for inspection by members of the public during office hours at the office of the public utility; and

4. The Commission shall review the plan for compliance with this section within 30 days after its submission. The plan must be approved by the Commission before it is put into effect.

(Added to NRS by 1991, 523; A 2001, 1766)

NRS 704.663 Certain public utilities furnishing water or sewage service: Regulations by Commission to consider certain requests by utility to recover costs or impose surcharge. The Commission shall adopt regulations specifying the information the Commission will consider:

1. In reviewing a request included in an application to make changes in any schedule submitted pursuant to NRS 704.110 by a public utility which furnishes, for compensation, any water for municipal, industrial or domestic purposes, or services for the disposal of sewage, or both, to recover an amount based on the anticipated effects of implementing a plan of water conservation, including, without limitation, the anticipated effects of decreased consumption of water by customers of the public utility as the result of the implementation of a plan for water conservation or the charging of rates to encourage water conservation;

2. In reviewing a request included in an application to make changes in any schedule submitted pursuant to NRS 704.110 by a public utility which furnishes, for compensation, any water for municipal, industrial or domestic purposes, or services for the disposal of sewage, or both, to recover the costs of providing service without regard to the difference in the quantity of water actually sold by the public utility by taking into account the adjusted and annualized quantity of water sold during a test year and the growth in the number of customers of the public utility; and

3. In reviewing a request included in a plan or amendment to a plan submitted pursuant to NRS 704.661 by a public utility which furnishes, for compensation, any water for municipal, industrial or domestic purposes, or services for the disposal of sewage, or both, and which had an annual gross operating revenue of $1,000,000 or more for at least 1 year during the immediately preceding 3 years or, if the public utility is authorized to follow the simplified procedures or methodologies for a change of rates pursuant to NRS 704.095, made in such other form as prescribed by the Commission, to impose a surcharge for the purpose of funding and encouraging investment in infrastructure in the period between the filing of rate cases by the public utility. The imposition of any such surcharge approved by the Commission is not subject to the provisions of NRS 704.110.

(Added to NRS by 2013, 2311)

1. A county shall not impose the tax authorized by NRS 244.3661 on the use of water by customers of a supplier of water that is a public utility, or make changes to the ordinance imposing such a tax, without the prior approval of the Commission.

2. The Commission shall review an application made by a county for the approval required by subsection 1 in the same manner and to the same extent as it would review an application by a public utility for increased rates based upon construction by the public utility of the same facility.

3. The Commission shall not approve the imposition of the tax or changes to the ordinance imposing the tax authorized by NRS 244.3661 unless, after an investigation and a hearing, it determines:

(a) The basis for the need of the facility;

(b) The nature of the probable effect on the environment;

(c) That the facility represents the minimum adverse effect on the environment, considering the state of available technology and the nature and economics of the various alternatives and other pertinent considerations;

(d) That the location of the facility as proposed conforms to applicable state and local laws and any regulations issued pursuant thereto;

(e) That the facility will serve the public interest;

(f) That the tax which the county proposes to impose is just and reasonable and consistent with the policies of the Commission applicable to rates and rate design for public utilities;

(g) That the aggregate amount generated by the tax will be sufficient to provide for the payment of the obligations issued by the county to acquire and construct the new facility;

(h) That the water treatment services of the new facility will be available for use by the public utility for as long as the public utility holds a certificate of public convenience and necessity to provide service as a water utility within the boundaries of the county on terms and conditions which are reasonable and just to the utility and its customers;

(i) That the construction of the facility is consistent with a resource plan approved by the Commission and the facility can be integrated into existing water systems;

(j) That the financing of the facility pursuant to this section is economically more advantageous to the customers of the public utility who will pay the tax than any alternative means of financing a new facility by the public utility; and

(k) That the construction of the facility and the imposition of the tax is otherwise in the public interest.

4. The Commission shall adopt such regulations as are necessary to carry out the provisions of this section.

(Added to NRS by 1991, 1941)

NRS 704.6642 Facility for treatment of water acquired and constructed by county: Billing and collection of tax imposed on customers of public utility.

1. A county shall not require a public utility whose customers pay a tax imposed pursuant to NRS 244.3661 to bill and collect the tax except pursuant to an agreement entered into pursuant to subsection 2. At the request of a county, a public utility shall provide such information as is reasonably necessary for the county to bill for and collect any tax imposed upon the customers of the public utility pursuant to NRS 244.3661.

2. A public utility whose customers pay a tax imposed pursuant to NRS 244.3661 may enter into an agreement with the county with respect to billing for and collecting the tax. The agreement may provide for collection remedies which may include the collection remedies available to the public utility.

(Added to NRS by 1991, 1942)

1. A public utility must not be required to use the water treatment services provided by a facility acquired and constructed or to be acquired and constructed by the county pursuant to NRS 244.3661 without the consent of the public utility and the Commission.

2. A public utility that supplies water within the boundaries of a county may enter into an agreement with that county to use the water treatment services provided by a facility acquired and constructed or to be acquired and constructed by the county pursuant to NRS 244.3661. The term of the agreement may be for more than 1 fiscal year. Any such agreement must be approved by the Commission before it becomes effective.

3. The Commission shall not approve an agreement executed pursuant to this section unless it determines that:

(a) The agreement provides that the water treatment services of the facility will be available for use by the public utility for as long as the public utility holds a certificate of public convenience and necessity to provide service as a water utility within the boundaries of the county;

(b) The basis for payment of the expenses of operating and maintaining the facility provided in the agreement is reasonable and just; and

(Added to NRS by 1991, 1942)

1. A public utility may enter into an agreement with a county to operate and maintain a facility acquired and constructed or to be acquired and constructed by a county pursuant to NRS 244.3661. The term of the agreement may be for more than 1 fiscal year. Any such agreement must be approved by the Commission before it becomes effective.

2. The Commission shall not approve an agreement executed pursuant to this section unless it determines that:

(a) The payments to be made under the agreement to the utility for operation and maintenance of the facility are reasonable and just; and

(b) The agreement is in the public interest.

(Added to NRS by 1991, 1942)

NRS 704.665 Water to be provided through single connection to building containing multiple units for occupancy; exception. Unless the owner of the water system within a building containing multiple occupancy units otherwise requests in writing, a public utility shall provide water to the building through a single connection, in which case the utility may require, where water meters are otherwise permitted by law, that there be a single water meter or meter facility, but it shall not require a separate meter facility for each unit therein.

(Added to NRS by 1979, 1391)

NRS 704.667 Public utility not required to furnish water for artificial lake or stream if prohibited or restricted by ordinance in certain counties; exceptions. In any county whose population is 700,000 or more:

1. Except as otherwise provided in subsection 2, nothing in this chapter requires a public utility to furnish water for the purpose of filling or maintaining an artificial lake or stream where that use of water is prohibited or restricted by ordinance of:

(a) The county, if the artificial lake or stream is located within the unincorporated areas of the county; or

(b) A city, if the artificial lake or stream is located within the boundaries of the city.

2. The provisions of subsection 1 and of any ordinance referred to in subsection 1 do not apply to:

(a) Water stored in an artificial reservoir for use in flood control, in meeting peak water demands or for purposes relating to the treatment of sewage;

(b) Water used in a mining reclamation project; or

(c) A body of water located in a recreational facility that is open to the public and owned or operated by the United States or the State of Nevada.

(Added to NRS by 1989, 1446; A 2011, 1310)

NRS 704.6672 Review of water supply and sewage service for certain proposed subdivisions: Duties of Commission; fee; exceptions.

1. The Commission shall review each tentative map for a subdivision received pursuant to NRS 278.335 and conduct an investigation, if deemed necessary, to determine the continuity and adequacy of the water supply or sewer service, or both, for the subdivision. If the Commission approves the final map for the subdivision, the Commission shall, for the purposes of NRS 278.377, submit written verification of its approval to the Division of Public and Behavioral Health of the Department of Health and Human Services and the Division of Water Resources of the State Department of Conservation and Natural Resources.

2. The Commission shall collect a fee not to exceed $200, which fee must be used to defray the cost of conducting any investigation under the provisions of subsection 1.

3. The provisions of subsections 1 and 2 shall not apply in any case where:

(a) The person to furnish the water supply or sewer service has already been granted a certificate of public convenience and necessity by the Commission to serve the area set forth in the tentative map.

(b) Any county, municipality or other form of local government, including, but not limited to, districts formed under the provisions of chapter 318 of NRS, will furnish the water supply or sewer service to the area set forth in the tentative map.

(Added to NRS by 1971, 1209; A 2005, 694)

NRS 704.6674 Supplier of water or services for sewage: Regulation by county; exceptions; appointment of receiver upon petition of county commissioners.

1. The board of county commissioners of any county may regulate by ordinance any person furnishing a water supply or sewer services, or water and sewer services, for compensation to persons within that county except those persons regulated by the Commission, the services furnished to its residents by a political subdivision, and services furnished to its members by a nonprofit association in which the rights and interests of all its members are equal.

2. Any person who is a customer of an entity subject to regulation by the board of county commissioners as provided in subsection 1 may request the board to review that entity, the service it is providing and the manner in which it is providing the service to determine whether a receiver should be appointed for that entity. If the board determines it to be appropriate, it shall file a petition for the appointment of a receiver for the entity in the same manner and with the same duties and powers as a receiver appointed upon petition of the Commission for a public utility as provided in NRS 704.6676.

(Added to NRS by 1971, 1209; A 1979, 202, 803)

NRS 704.6676 Supplier of water or services for sewage: Appointment of receiver upon petition of Commission.

1. If the Commission determines after notice and hearing that a public utility which furnishes water or services for the disposal of sewage, or both:

(a) Is unable to provide reasonably continuous and adequate service; or

(b) Otherwise qualifies for appointment of a receiver pursuant to NRS 32.010,

Ê the Commission may file a petition for the appointment of a receiver for the public utility in the district court for the county in which the principal office of the utility is located within this state, or in the district court for Carson City if the principal office of the utility is located outside this state, to insure the public interest in receiving service from the public utility in the manner required by law.

2. The district court in which the petition is filed pursuant to subsection 1 shall immediately appoint a receiver qualified to manage the type of public utility for which the petition was filed if it finds the determination of the Commission to be correct.

3. Any person so appointed receiver is, from the time of the person’s appointment until the termination of the person’s duties pursuant to law, subject to all duties and has all powers generally conferred upon a receiver by law, including the power to petition for relief in bankruptcy and to sell or transfer the assets of the public utility for the benefit of the public utility’s creditors.

(Added to NRS by 1979, 803; A 1987, 478)

NRS 704.668 Disposal or encumbrance of property by certain public utilities furnishing water or services for sewage: Approval of Commission required; hearing required in certain matters; regulations.

1. It is unlawful for any public utility which serves 3,000 or fewer persons and furnishes water or services for the disposal of sewage, or both, to:

(a) Sell, lease or otherwise dispose of; or

(b) Encumber by mortgage, deed of trust, security agreement or otherwise,

Ê any or all of its real property or goods, including fixtures, or any combination thereof which are necessary in the present or future performance of its duties to the public regarding water or sewage without first obtaining approval from the Commission which authorizes the public utility to do so. This limitation applies to any interest in real property, including, without limitation, easements and water rights.

2. Any such action:

(a) Which is not taken in accordance with the approval of the Commission; or

(b) Which is taken without obtaining the approval from the Commission,

Ê is void.

3. If the public utility is disposing of all of its real property and goods, the Commission shall hold a public hearing on the matter before determining whether to approve the disposal.

4. The Commission shall adopt regulations which set forth the types and quantities of property and goods that are necessary in the performance of the duties of the various classes of public utilities.

5. The provisions of this section are not intended to limit the regulatory authority of the Commission granted in other sections of this chapter.

6. The provisions of this section do not apply to a public utility engaged in the business of furnishing, for compensation, water or services for the disposal of sewage, or both, to persons within this state if the utility:

(a) Serves 15 persons or less; and

(b) Operates in a county whose population is 700,000 or more.

(Added to NRS by 1991, 144; A 2003, 370; 2011, 1310)

GEOTHERMAL ENERGY

NRS 704.669 Regulation of sale of geothermal energy to public; system of operating permits.

1. Except as otherwise provided in subsection 2, every corporation or other person who sells geothermal energy to the public is affected with a public interest, is a public utility and is subject to the jurisdiction and control of the Commission. The authority of the Commission to regulate such persons is limited to the authority granted by this section and NRS 704.033 and 704.035.

2. This section does not apply to any corporation or other person described in subsection 4 of NRS 704.021 or to any political subdivision of the State authorized to sell energy to the public.

3. The Commission shall adopt just and reasonable regulations governing the sale of energy from geothermal resources to the public. The regulations must provide for a system of operating permits which:

(a) May not be denied because the area which the applicant proposes to serve is already being served by a gas or electric utility.

(b) May not convey an exclusive right to supply geothermal energy in the area which the applicant proposes to serve.

(c) Specify in each case the geographic area in which the applicant reasonably can provide the services authorized in the permit.

(d) Require the applicant to enter into a contract with each customer served by the utility. The form and scope of the contract must be subject to review and approval of the Commission. The contract must specify at least:

(1) The period of time during which service will be provided. The contract must provide for a period of at least 3 years unless such a provision is expressly waived by the customer.

(2) The rates or the formula for determining rates to be charged during the term of the contract.

(3) That the utility will submit to binding arbitration, pursuant to chapter 38 of NRS, matters relating to damages suffered by the customer as a result of a disruption in service and that in any such arbitration, the utility is liable for damages unless it establishes that the disruption was caused by circumstances beyond its control, or another affirmative defense, or establishes that it was not negligent.

4. Before issuing an operating permit the Commission must find that:

(a) The applicant is fit, willing and able to provide the services authorized in the permit.

(b) The applicant has tested the geothermal reservoir to determine whether it appears to be capable of providing sufficient energy to supply the intended uses.

5. The Commission has continuing authority to regulate the utilities described in this section to ensure that each utility adheres to the conditions set forth in its operating permit and that the utility provides adequate services.

(Added to NRS by 1981, 660; A 1997, 1912)

COOPERATIVE ASSOCIATIONS, NONPROFIT CORPORATIONS AND ASSOCIATIONS AND OTHER SIMILAR ENTITIES

NRS 704.673 Cooperatives, nonprofit corporations and associations supplying services both to public and members declared public utilities; regulation by Commission.

1. Except as otherwise provided in subsection 2, every cooperative association or nonprofit corporation or association and every other supplier of services described in this chapter supplying such services for the use of the public and for the use of its own members is hereby declared to be affected with a public interest, to be a public utility, and to be subject to the jurisdiction, control and regulation of the Commission and to the provisions of this chapter.

2. In the case of the acquisition of the certificate or all or any part of the territory of a public utility, as defined in paragraph (a) of subsection 2 of NRS 704.020, by a cooperative association or nonprofit corporation or association which before April 26, 1963, had supplied services for the use of its own members only, the provisions of subsection 1 are not applicable for a period of 6 months or the expiration of such reasonable extension or extensions of that 6-month period as may be ordered by the Commission, during which period the cooperative association or nonprofit corporation or association may enroll as its members the customers of the public utility whose certificate or territory was acquired so as to make such acquiring cooperative association or nonprofit corporation or association subject only to the limited jurisdiction, control and regulation of the Commission, and only to the specific provisions of this chapter as provided by NRS 704.675.

(Added to NRS by 1963, 1114; A 2007, 1773)

NRS 704.675 Cooperatives, nonprofit corporations and associations supplying services to members only declared public utilities; limited jurisdiction of Commission. Every cooperative association or nonprofit corporation or association and every other supplier of services described in this chapter supplying those services for the use of its own members only is hereby declared to be affected with a public interest, to be a public utility, and to be subject to the jurisdiction, control and regulation of the Commission for the purposes of NRS 703.191, 704.330, 704.350 to 704.410, inclusive, and 704.7821, but not to any other jurisdiction, control and regulation of the Commission or to the provisions of any section not specifically mentioned in this section.

(Added to NRS by 1963, 1114; A 1967, 1385; 1979, 149, 248; 1981, 1679; 2007, 39; 2019, 14)

NRS 704.677 Certificates of public convenience and necessity to be issued to certain cooperatives, nonprofit corporations and associations; contents of statement and certificate.

1. Every cooperative association or nonprofit corporation or association and every other supplier of services described in this chapter which has, prior to April 26, 1963, supplied such services for the use of the public or for the use of its own members, or has constructed facilities to provide such services and has done so prior to March 15, 1963, is hereby entitled to receive a certificate of public convenience and necessity from the Commission to cover such facilities and such area as it served prior to April 26, 1963.

2. Every cooperative association or nonprofit corporation or association and every other supplier of services described in this chapter which has, prior to April 26, 1963, supplied such services and is thereby entitled to a certificate of public convenience and necessity for such facilities and area served shall file with the Commission a statement setting forth:

(a) The name or names of the cooperative association or nonprofit corporation or association, as the case may be, by whom the facilities have been operated.

(b) A physical description of all of the plan and facilities used by such association in rendering such service.

(d) Such other information as the Commission may reasonably prescribe.

3. The Commission shall, within 60 days after receiving such statement, issue a certificate of public convenience and necessity to the cooperative association or nonprofit corporation or association. The certificate of public convenience and necessity shall contain a description of the territory which has been served by such cooperative association or nonprofit corporation or association prior to April 26, 1963, and such territory shall be considered the service area within which the cooperative association or nonprofit corporation or association may conduct its business within the State of Nevada.

(Added to NRS by 1963, 1115)

BROADBAND SERVICE

NRS 704.684 Limitations on regulation of broadband service; exceptions.

1. Except as otherwise provided in this section, the Commission shall not regulate any broadband service, including imposing any requirements relating to the terms, conditions, rates or availability of broadband service.

2. The provisions of subsection 1 do not limit or modify the authority of the Commission to:

(a) Consider any revenues, costs and expenses that a small-scale provider of last resort derives from providing a broadband service, if the Commission is determining the rates of the provider under a general rate application that is filed pursuant to subsection 3 of NRS 704.110;

(b) Act on a complaint filed pursuant to NRS 703.310, if the complaint relates to a broadband service that is provided by a public utility;

(c) Include any appropriate gross operating revenue that a public utility derives from providing broadband service when the Commission calculates the gross operating revenue of the public utility for the purposes of levying and collecting the annual assessment in accordance with the provisions of NRS 704.033; or

(d) Determine the rates, pricing, terms and conditions of intrastate switched or special access services provided by a telecommunication provider.

3. The provisions of subsection 1 do not:

(a) Apply to the Commission in connection with any actions or decisions required or permitted by the Telecommunications Act of 1996, Public Law 104-104, 110 Stat. 56-161;

(b) Prevent the Commission from exercising its authority pursuant to 47 U.S.C. § 214(e) or § 254(f) relating to the implementation of the federal universal service program, including, without limitation, taking any action within the scope of that authority because of a regulation or order of the Federal Communications Commission; or

(1) The duties of a telecommunication provider regarding the provision of network interconnection, unbundled network elements and resold services under the provisions of the Telecommunications Act of 1996, Public Law 104-104, 110 Stat. 56-161; or

(2) The authority of the Commission to act pursuant to NRS 704.6881 and 704.6882.

4. As used in this section, “broadband service” means any two-way service that transmits information at a rate that is generally not less than 200 kilobits per second in at least one direction.

(Added to NRS by 2003, 3036; A 2007, 705; 2013, 200)

INTERNET PROTOCOL-ENABLED SERVICE AND VOICE OVER INTERNET PROTOCOL SERVICE

NRS 704.685 Limitations on regulation of Internet Protocol-enabled service or Voice over Internet Protocol service; exceptions.

1. Except as otherwise provided in subsection 2, a state agency or political subdivision of the State may not, directly or indirectly, regulate the rates charged for, service or contract terms for, conditions for, or requirements for entry for Internet Protocol-enabled service or Voice over Internet Protocol service.

2. The provisions of subsection 1 must not be construed to:

(a) Affect or limit the enforcement of criminal or civil laws, including, without limitation, laws concerning consumer protection and unfair or deceptive trade practices, that apply generally to the conduct of business;

(b) Affect, mandate or prohibit:

(1) The assessment of taxes, fees or surcharges which are of general applicability or which are otherwise authorized by statute; or

(2) The levy and collection of the assessment required by NRS 704.033 from a provider of Voice over Internet Protocol service that has a certificate of public convenience and necessity; or

(1) Any right or obligation of any telecommunication provider, or the authority granted to the Commission pursuant to 47 U.S.C. §§ 251 and 252, including, without limitation, any authority granted to the Commission to address or affect the resolution of disputes regarding reciprocal compensation and interconnection;

(2) Any obligation relating to the provision of video service by any person pursuant to chapter 711 of NRS;

(3) Any applicable wholesale tariff; or

(4) Any authority granted to the Commission pursuant to 47 U.S.C. §§ 214(e) and 254(f).

3. As used in this section:

(a) “Internet Protocol-enabled service” means any service, functionality or application which uses Internet Protocol or a successor protocol that enables an end-user to send or receive voice, data or video communications. The term does not include Voice over Internet Protocol service.

(b) “Voice over Internet Protocol service” means any service that:

(1) Enables real-time, two-way voice communication originating from or terminating at the user’s location in Internet Protocol or a successor protocol;

(2) Uses a broadband connection from the user’s location; and

(3) Permits a user to receive a call that originates on the public switched telephone network and to terminate a call to the public switched telephone network.

(Added to NRS by 2013, 1946)

BROADCAST TELEVISION SERVICE

NRS 704.687 Limitations on exclusion from viewing of televised broadcasts of sporting or other special events; exception.

1. Except as provided in subsections 2 and 3, a televised broadcast of a sporting event or other special event originating within this state must not be excluded from viewing at the time it takes place by persons in the area of the event if all tickets available for sale are sold 24 hours or more before the event.

2. Except as provided in subsection 3, a televised broadcast of an athletic event governed by the National Collegiate Athletic Association or the Association of Intercollegiate Athletics for Women must not be excluded from viewing at the time it takes place by persons in the area of the event if all tickets available for sale are sold 48 hours or more before the event.

3. This section does not apply to sporting events or other special events which are televised for viewing on a closed circuit only.

(Added to NRS by 1979, 823)

TELECOMMUNICATION SERVICE

Standards and Practices

NRS 704.6873 Adoption of regulations regarding telecommunication service furnished to certain public facilities, providers of health care, low-income persons and rural, insular and high-cost areas.

1. The Commission shall adopt regulations that require each telecommunication provider furnishing service to:

(a) An elementary or secondary public school; or

(b) A public library,

Ê to establish discounts in the rates for the telecommunication services that the provider furnishes to that school or library. The amount of the discount must be determined by the Commission in a manner that is consistent with the provisions of 47 U.S.C. § 254.

2. The Commission shall adopt regulations that require each telecommunication provider furnishing service to:

(a) Public or private nonprofit providers of health care which serve persons in rural areas; or

(b) Persons with low income and persons in rural, insular and high-cost areas,

Ê to ensure that such providers of health care and persons have access to telecommunication services that are reasonably comparable to those services available in urban areas and that the rates for such services charged by the telecommunication provider are reasonably comparable to those charged in the urban areas, to the extent required by the provisions of 47 U.S.C. § 254.

3. The Commission shall adopt regulations which set forth the requirements for eligibility for:

(a) Persons with low income to receive a reduction in rates for telephone service pursuant to NRS 707.400 to 707.500, inclusive. The regulations adopted pursuant to this paragraph must provide that:

(1) An eligible provider shall provide a reduction in rates for telephone service if the income of a person’s household is at or below the greater of:

(I) The percentage of the federally designated level signifying poverty for a household of that size specified by 47 C.F.R. § 54.409, as that section existed on June 28, 2012; or

(II) The percentage of the federally designated level signifying poverty for a household of that size specified by the Commission; and

(2) The percentage of the federally designated level signifying poverty specified pursuant to subparagraph (1) is applicable to all eligible providers.

(b) Small-scale providers of last resort to apply to receive payments from the fund to maintain the availability of telephone service with regard to rural, insular and high-cost areas.

(c) Competitive suppliers that are providers of last resort to apply to receive payments from the fund to maintain the availability of telephone service with regard to rural, insular and high-cost areas.

4. Any regulations adopted pursuant to this section and NRS 704.040 regarding the availability of telephone service must:

(a) Be consistent with the applicable provisions of 47 U.S.C. §§ 214 and 254;

(b) Define rural, insular and high-cost areas;

(c) Establish nondiscriminatory eligibility requirements for all small-scale providers of last resort that apply to receive payments from the fund to maintain the availability of telephone service with regard to rural, insular and high-cost areas; and

(d) Allow competitive suppliers which are providers of last resort and which meet the eligibility requirements established by the Commission to apply to receive payments from the fund to maintain the availability of telephone service with regard to rural, insular and high-cost areas.

5. As used in this section:

(a) “Eligible provider” has the meaning ascribed to it in NRS 707.440.

(b) “Household” has the meaning ascribed to it in 47 C.F.R. § 54.400(h), as that section existed on April 2, 2012.

(Added to NRS by 1997, 1902; A 2007, 706; 2013, 201)

NRS 704.6875 Customer entitled to written notice of duration of certain calls.

1. Except as otherwise provided in subsection 2, each telecommunication provider shall provide timely written notice to a customer of the duration of each call that is billed to the customer, reported in minutes, seconds or any fraction thereof, if the charges for the telecommunication services are calculated, in whole or in part, on the basis of the duration of the call.

2. The provisions of this section do not apply to measured rate service.

(Added to NRS by 2003, 3036; A 2007, 707)

NRS 704.6877 Adoption of regulations regarding notice provided by incumbent local exchange carriers of certain interconnection agreements.

1. The Commission shall by regulation establish a procedure for an incumbent local exchange carrier to provide notice via the Internet of interconnection agreements entered into with another telecommunication provider.

2. The procedure established by the Commission pursuant to this section for providing notice via the Internet is the exclusive method for providing such notice, and the Commission may not require another method of notice.

3. When an incumbent local exchange carrier provides notice via the Internet pursuant to this section, the notice must include a link to the public area of its website where an electronic copy of the interconnection agreements may be obtained.

(Added to NRS by 2007, 686)

NRS 704.6878 Adoption of regulations regarding incumbent local exchange carriers and the obligations of providers of last resort. The Commission shall adopt regulations that establish the obligations of incumbent local exchange carriers as providers of last resort giving due consideration to the status of the incumbent local exchange carriers as either competitive suppliers or small-scale providers of last resort.

(Added to NRS by 2007, 686; A 2013, 1948)

Competition Among Providers; Complaints

NRS 704.6881 Establishment of standards and penalties to encourage competition and discourage discrimination in provision of local telecommunication services; regulations. The Commission may, by regulation:

1. Establish standards of performance and reporting regarding the provision of interconnection, unbundled network elements and resold services, which encourage competition and discourage discriminatory conduct in the provision of local telecommunication services; and

2. Notwithstanding the provisions of NRS 703.320 to the contrary, establish penalties and expedited procedures for imposing penalties upon a telecommunication provider for actions that are inconsistent with the standards established by the Commission pursuant to subsection 1, if any. Such penalties may include financial payment to the complaining telecommunication provider for a violation of the standards established by the Commission pursuant to subsection 1, if any, provided that any penalty paid must be deducted, with interest, from any other award under any other judicial or administrative procedure for the same conduct in the same reporting period. Any penalty imposed pursuant to this subsection is in lieu of the administrative fine set forth in NRS 703.380 and must be:

(a) Imposed for violating a standard or standards established by regulations of the Commission pursuant to subsection 1;

(b) Determined by the Commission to further the goal of encouraging competition or discouraging discriminatory conduct; and

(Added to NRS by 1999, 1319; A 2007, 39, 708; 2015, 1109)

NRS 704.6882 Establishment of expedited procedures for certain complaints filed by provider against another provider; regulations. Notwithstanding the provisions of NRS 703.310 and 703.320, the Commission shall establish by regulation expedited procedures for complaints filed by a telecommunication provider against another telecommunication provider for any dispute arising under this chapter, including, without limitation, a dispute arising under the standards set forth in NRS 704.68887, or arising under chapter 703 of NRS. The regulations may include, without limitation, specific procedures for interim relief that may include a preliminary decision by a single Commissioner except as to the imposition of monetary penalties.

(Added to NRS by 1999, 1319; A 2007, 708)

NRS 704.6883 Judicial review of certain decisions of Commission. Any judicial review of a decision by the Commission pursuant to NRS 704.6881 and 704.6882 must be made in accordance with NRS 703.373 to 703.376, inclusive.

(Added to NRS by 1999, 1319)—(Substituted in revision for NRS 704.283)

NRS 704.6884 Providers required to comply with state and federal consumer and antitrust protections; providers subject to laws governing unfair trade practices for violations of standards established by Commission. The provisions of NRS 704.6881 to 704.6884, inclusive, must not be construed to exempt telecommunication providers from any other applicable statute of this State or the United States relating to consumer and antitrust protections. The exemption provided in paragraph (c) of subsection 3 of NRS 598A.040 does not apply to conduct of, or actions taken by, a telecommunication provider in violation of the standards established pursuant to subsection 1 of NRS 704.6881, if any.

(Added to NRS by 1999, 1319; A 2007, 708; 2015, 1110)

Competitive Suppliers

NRS 704.68861 Applicability.

1. Except as otherwise provided in this section, any telecommunication provider operating within this State is a competitive supplier that is subject to the provisions of NRS 704.68861 to 704.68887, inclusive.

2. A small-scale provider of last resort is not a competitive supplier that is subject to the provisions of NRS 704.68861 to 704.68887, inclusive, unless the small-scale provider of last resort is authorized by the Commission pursuant to NRS 704.68869 to be regulated as a competitive supplier.

(Added to NRS by 2007, 686; A 2013, 1948; 2021, 1749)

NRS 704.68863 Powers and duties under certain federal and state laws preserved. The provisions of NRS 704.68861 to 704.68887, inclusive, do not:

1. Apply to the Commission in connection with any actions or decisions required or permitted by the Telecommunications Act of 1996, Public Law 104-104, 110 Stat. 56-161; or

2. Limit or modify:

(a) The duties of a competitive supplier that is an incumbent local exchange carrier regarding the provision of network interconnection, unbundled network elements and resold services under the provisions of the Telecommunications Act of 1996, Public Law 104-104, 110 Stat. 56-161; or

(b) The authority of the Commission to act pursuant to NRS 704.6881 and 704.6882.

(Added to NRS by 2007, 687; A 2013, 1948; 2021, 1749)

NRS 704.68865 Adoption of regulations. The Commission may adopt any regulations that are necessary to carry out the provisions of NRS 704.68861 to 704.68887, inclusive.

(Added to NRS by 2007, 687; A 2013, 1949)

NRS 704.68867 Filing of reports.

1. Each competitive supplier that is an incumbent local exchange carrier on May 31, 2007, shall:

(a) On or before October 1, 2008, prepare and submit to the Commission and the Bureau of Consumer Protection in the Office of the Attorney General a report regarding competition in the local markets for telecommunication service, including, without limitation, competition from available alternative services that serve as technological substitutes for telecommunication service. The report must be based on information that is reasonably available from public sources and must contain data, statistical measures and analyses for assessing:

(1) The existing number of customers of the competitive supplier, the forms of telecommunication service provided by the competitive supplier and the prices for such services;

(2) The number of competitors in the local markets within the service territory of the competitive supplier for various forms of telecommunication service, including, without limitation, wireline and wireless telecommunication service, and any available alternative services that serve as technological substitutes for telecommunication service, such as broadband services, and a comparison of the services provided by such competitors and prices for telecommunication service and broadband service;

(3) The growth or decline, if any, in customers and primary access lines of the competitive supplier during the preceding 5 years; and

(4) The number of persons receiving a reduction in rates for telephone service pursuant to NRS 707.400 to 707.500, inclusive, within the service territory of the competitive supplier, the price of such service, the consumer outreach and informational programs used to expand participation of eligible persons in such service, and the management, coordination and training programs implemented by the competitive supplier to increase awareness and use of lifeline and tribal link up programs.

(b) On or before October 1 of each year thereafter for a period of 4 years, prepare and submit to the Commission and the Bureau of Consumer Protection in the Office of the Attorney General a report that compares and evaluates any changes in the data, prices, statistical measures and analyses set forth in the report submitted by the competitive supplier pursuant to paragraph (a).

2. The Commission shall:

(a) On or before December 1 of each applicable year, provide to the Legislative Commission a copy of the reports received pursuant to subsection 1; and

(b) On or before December 1, 2010, prepare and submit to the Legislative Commission and the Bureau of Consumer Protection in the Office of the Attorney General a report that:

(1) Summarizes and evaluates the data, prices, statistical measures and analyses set forth in the reports submitted by competitive suppliers pursuant to subsection 1;

(2) Provides an assessment of market conditions and the state of competition for telecommunication service in the various geographical areas of this State; and

(3) Includes, without limitation:

(I) A discussion of the types of alternative services that serve as technological substitutes for telecommunication service and the availability of such alternative services in the various geographical areas of this State; and

(II) An assessment of the alternative services that are available for basic network service and business line service considering intermodal alternatives, technological developments, market conditions and the availability of comparable alternative services in the various geographical areas of this State.

3. As used in this section:

(a) “Lifeline” has the meaning ascribed to it in NRS 707.450.

(b) “Tribal link up” has the meaning ascribed to it in NRS 707.460.

(Added to NRS by 2007, 687; A 2013, 202)

NRS 704.68869 Regulation of small-scale provider of last resort as competitive supplier: Application; grant or denial of application by Commission.

1. A small-scale provider of last resort may apply to the Commission to be regulated as a competitive supplier pursuant to NRS 704.68861 to 704.68887, inclusive.

2. The Commission may grant the application if it finds that the public interest will be served by allowing the small-scale provider of last resort to be regulated as a competitive supplier.

3. If the Commission denies the application, the small-scale provider of last resort:

(a) May not be regulated as a competitive supplier but remains subject to regulation pursuant to this chapter as a telecommunication provider; and

(b) May not submit another application to be regulated as a competitive supplier sooner than 1 year after the date the most recent application was denied, unless the Commission, upon a showing of good cause or changed circumstances, allows the provider to submit another application sooner.

(Added to NRS by 2007, 688; A 2013, 1949)

NRS 704.68871 Exemption from review and monitoring of certain financial data; limited financial and accounting requirements.

1. Except as otherwise provided by NRS 704.688795, a competitive supplier is not subject to any review of earnings or monitoring of the rate base or any other regulation by the Commission relating to the net income or rate of return of the competitive supplier, and the Commission shall not consider the rate of return, the rate base or any other earnings of the competitive supplier in carrying out the provisions of NRS 704.68861 to 704.68887, inclusive.

2. On or before May 15 of each year, a competitive supplier shall file with the Commission an annual statement of income, a balance sheet, a statement of cash flows for the total operations of the competitive supplier and a statement of intrastate service revenues, each prepared in accordance with generally accepted accounting principles.

3. Except as otherwise provided by NRS 704.688795, a competitive supplier is not required to submit any other form of financial report or comply with any other accounting requirements, including, without limitation, requirements relating to depreciation and affiliate transactions, imposed upon a public utility by this chapter, chapter 703 of NRS or the regulations of the Commission.

(Added to NRS by 2007, 688; A 2013, 1949; 2021, 1749)

NRS 704.68873 Exemption from regulation of telecommunication service; exceptions.

1. Except as otherwise provided in NRS 704.68861 to 704.68887, inclusive, a competitive supplier:

(a) Is exempt from the provisions of NRS 704.100 and 704.110 and the regulations of the Commission relating thereto and from any other provision of this chapter governing the rates, pricing, terms and conditions of any telecommunication service; and

(b) May exercise complete flexibility in the rates, pricing, terms and conditions of any telecommunication service.

2. The rates, pricing, terms and conditions of intrastate switched or special access service provided by a competitive supplier that is an incumbent local exchange carrier and the applicability of such access service to intrastate interexchange traffic are subject to regulation by the Commission, which must be consistent with federal law, unless the Commission deregulates intrastate switched or special access service pursuant to NRS 704.68879.

3. A competitive supplier that is an incumbent local exchange carrier shall use a letter of advice to change any rates, pricing, terms and conditions of intrastate switched or special access service, universal lifeline service or access to emergency 911 service. A letter of advice submitted pursuant to this subsection shall be deemed approved if the Commission does not otherwise act on the letter of advice within 120 days after the date on which the letter is filed with the Commission.

(Added to NRS by 2007, 689; A 2013, 1949)

NRS 704.68875 Exemption from filing schedules or tariffs; requirements regarding publication of certain rate and service information.

1. Except as otherwise provided by NRS 704.688795, a competitive supplier is not required to maintain or file any schedule or tariff with the Commission.

2. For any area in which a competitive supplier is a provider of last resort, the competitive supplier:

(a) Shall publish the rates, pricing, terms and conditions of basic network service by:

(1) Posting such rates, pricing, terms and conditions electronically on a publicly available Internet website maintained by the competitive supplier;

(2) Maintaining for inspection by the public a copy of such rates, pricing, terms and conditions at the principal office in Nevada of the competitive supplier; or

(3) Delivering to the customer a copy of the rates, pricing, terms and conditions in writing with the first invoice, billing statement or other written summary of charges for the telecommunication service provided by the competitive supplier to the customer; and

(b) May publish the rates, pricing, terms and conditions of other telecommunication service by:

(1) Posting such rates, pricing, terms and conditions electronically on a publicly available Internet website maintained by the competitive supplier;

(2) Maintaining for inspection by the public a copy of such rates, pricing, terms and conditions at the principal office in Nevada of the competitive supplier; or

3. A competitive supplier that provides an inmate calling service shall publish the rates, pricing, terms and conditions of the inmate calling service by:

(a) Posting such rates, pricing, terms and conditions electronically on a publicly available Internet website maintained by the competitive supplier;

(b) Maintaining for inspection by the public a copy of such rates, pricing, terms and conditions at the principal office in Nevada of the competitive supplier; and

(c) Delivering to the customer a copy of the rates, pricing, terms and conditions in writing with the first invoice, billing statement or other written summary of charges for the telecommunication service provided by the competitive supplier to the customer.

(Added to NRS by 2007, 689; A 2013, 1950; 2021, 1749)

NRS 704.68877 Requirements and exemptions regarding basic network service.

1. The Commission shall not decrease the rates or pricing of basic network service provided by a competitive supplier, unless the competitive supplier files a general rate application pursuant to paragraph (b) of subsection 2 and the Commission orders a decrease in the rates or pricing of such service in a general rate case proceeding conducted pursuant thereto.

2. Except as otherwise provided in this section, a competitive supplier that is an incumbent local exchange carrier shall not:

(a) Without the approval of the Commission, discontinue basic network service or change the terms and conditions of basic network service as set forth in the tariffs of the competitive supplier that were in effect on January 1, 2007.

(b) Before January 1, 2012, increase the rates or pricing of basic network service as set forth in the tariffs of the competitive supplier that were in effect on January 1, 2007, except that notwithstanding any other provision of this chapter:

(1) On or after January 1, 2011, and before January 1, 2012, the competitive supplier may, without the approval of the Commission, increase the rates or pricing of basic network service provided by the competitive supplier but the total of all increases during that period may not result in rates or pricing of basic network service that is more than $1 above the rates or pricing set forth in the tariffs of the competitive supplier that were in effect on January 1, 2007; and

(2) The Commission may allow the competitive supplier to increase the rates or pricing of basic network service above the amounts authorized by this subsection only if the competitive supplier files a general rate application and proves in a general rate case proceeding conducted pursuant to NRS 704.110 and 704.120 that the increase is absolutely necessary to avoid rates or prices that are confiscatory under the Constitution of the United States or the Constitution of this State. In such a general rate case proceeding, the Commission:

(I) May allow an increase in the rates or pricing of basic network service provided by the competitive supplier only in an amount that the competitive supplier proves in the general rate case proceeding is absolutely necessary to avoid an unconstitutional result and shall not authorize in the general rate case proceeding any rate, price or other relief for the competitive supplier that is not proven by the competitive supplier to be absolutely necessary to avoid an unconstitutional result; and

(II) May order a decrease in the rates or pricing of basic network service provided by the competitive supplier if the Commission determines in the general rate case proceeding that the decrease is necessary to provide customers with just and reasonable rates.

3. On or after January 1, 2012:

(a) A competitive supplier that is an incumbent local exchange carrier may exercise flexibility in the rates, pricing, terms and conditions of basic network service in the same manner permitted for other telecommunication service pursuant to NRS 704.68873; and

(b) The Commission shall not:

(1) Regulate the rates, pricing, terms and conditions of basic network service provided by such a competitive supplier; or

(2) Require such a competitive supplier to maintain any schedule or tariff for basic network service.

4. For any area in which a competitive supplier is a provider of last resort, the competitive supplier must provide reasonably detailed information concerning the rates, pricing, terms and conditions of basic network service in the manner required by NRS 704.68875.

(Added to NRS by 2007, 690; A 2013, 1950)

NRS 704.68879 Requirements regarding access to emergency 911 service; requirements and procedure regarding deregulation of intrastate switched or special access service.

1. A competitive supplier shall provide access to emergency 911 service and shall not discontinue such access.

2. The Commission may, upon its own motion or the petition of any person, deregulate intrastate switched or special access service provided by a competitive supplier. Unless the Commission deregulates such access service pursuant to this subsection, the rates, pricing, terms and conditions of such access service are subject to tariff regulation by the Commission.

3. If the Commission receives a petition pursuant to subsection 2, the Commission shall act upon the petition not later than 120 days after the date the Commission receives the petition.

(Added to NRS by 2007, 691)

1. Before providing an inmate calling service, a competitive supplier must file with the Commission, for its approval, a schedule or tariff that specifies the rates, pricing, terms and conditions applicable to the inmate calling service to be provided.

2. The Commission:

(a) Shall approve any schedule or tariff that specifies rates, pricing, terms and conditions that:

(1) Do not exceed a rate cap prescribed by the Commission; and

(2) Comply with any limitation prescribed by the Commission.

(b) May approve a schedule or tariff that specifies rates, pricing, terms and conditions that exceed a rate cap or fail to comply with a limitation prescribed by the Commission pursuant to the procedure for approval prescribed by regulations adopted by the Commission pursuant to NRS 704.6888.

3. A competitive supplier that files with the Commission a schedule or tariff that exceeds a rate cap or fails to comply with a limitation prescribed by the Commission shall submit with the schedule or tariff:

(a) A statement that demonstrates that the rate cap or limitation is not a just or reasonable rate or limitation for the competitive supplier; and

(b) Proof that the competitive supplier participated in a public hearing conducted by the Commission for the purposes of establishing the rate cap or limitation.

4. A competitive supplier shall submit a revised schedule or tariff within 30 days after the date on which the Commission revises a rate cap or limitation if the schedule or tariff on file with the Commission for the competitive supplier exceeds the revised rate cap or fails to comply with the revised limitation.

(Added to NRS by 2021, 1747)

NRS 704.6888 Requirements regarding inmate calling service: Regulations; annual review and any necessary revision of rate cap or limitation by Commission.

1. The Commission shall adopt regulations governing the provision of an inmate calling service, which must prescribe a procedure for:

(a) Establishing rate caps for inmate calling services in an amount that does not exceed any rate caps prescribed by the Federal Communications Commission for providers of interstate or international inmate calling services;

(b) Defining and limiting ancillary service charges that providers may charge users of inmate calling services in a manner consistent with any limitations on such charges prescribed by the Federal Communications Commission for providers of interstate or international inmate calling services;

(c) Limiting the taxes or fees that providers may charge users of inmate calling services in a manner consistent with any limitations on the collection of any taxes or fees prescribed by the Federal Communications Commission for providers of interstate or international inmate calling services; and

(d) Approving a schedule or tariff that exceeds a rate cap or fails to comply with a limitation established by the Commission in accordance with this subsection.

2. The Commission shall annually review and, if necessary, revise a rate cap or limitation established by the Commission pursuant to the procedure required by regulations adopted pursuant to subsection 1.

3. As used in this section, “ancillary service charge” means a charge relating to the use of inmate calling services that is not included in the per-minute charge assessed for a call.

(Added to NRS by 2021, 1748)

NRS 704.68881 Authority of provider of last resort to satisfy obligations through alternative voice service; conditions and limitations.

1. For any area in which a competitive supplier is a provider of last resort, the competitive supplier may satisfy its obligation as a provider of last resort through an alternative voice service.

2. The Commission may not exercise jurisdiction over an alternative voice service used by a competitive supplier or its affiliate to satisfy the competitive supplier’s obligation as a provider of last resort, including, without limitation, determining the rates, pricing, terms, conditions or availability of an alternative voice service.

3. The use of an alternative voice service provided by a competitive supplier or an affiliate of the competitive supplier to satisfy the competitive supplier’s obligation as a provider of last resort does not affect any obligation of the competitive supplier:

(a) As an incumbent local exchange carrier pursuant to federal law.

(b) Pursuant to NRS 704.033.

4. As used in this section, “alternative voice service” means a retail voice service made available through any technology or service arrangement that provides:

(a) Voice-grade access to the public switched telephone network; and

(b) Access to emergency 911 service.

(Added to NRS by 2007, 691; A 2013, 1951)

NRS 704.68883 Permitted billing practices if customer charged fixed price or amount for package of services. If a competitive supplier charges a customer a fixed price or amount for a package of services, the competitive supplier, in any bill or statement for the package of services, is permitted to specify only the fixed price or amount for the package of services and is not required to:

1. Identify each separate service or component included in the package of services; or

2. Specify the unit price or amount charged for each separate service or component included in the package of services.

(Added to NRS by 2007, 692)

NRS 704.68885 Requirements regarding discontinuation of service.

1. A competitive supplier that is not a provider of last resort may discontinue any telecommunication service by providing written notice, not less than 10 days before the date of the discontinuation, to any customer of that service and the Commission.

2. A competitive supplier that is a provider of last resort may:

(a) Discontinue any telecommunication service, except basic network service, by providing written notice, not less than 10 days before the date of the discontinuation, to any customer of that service and the Commission.

(b) Apply to the Commission to discontinue basic network service to all or a portion of the service territory of the competitive supplier on terms that are in the public interest.

(Added to NRS by 2007, 692)

1. A competitive supplier that is a provider of last resort may file an application with the Commission to be relieved, in whole or in part, of its obligations and status as a provider of last resort in an area where alternative voice service is provided by:

(a) At least:

(1) One provider that utilizes a wireline technology, is not an affiliate of the provider of last resort and is capable of providing alternative voice service to the entire area for which relief is sought; and

(2) One provider that utilizes any other technology and is capable of providing alternative voice service to the entire area for which relief is sought;

(b) On or after June 1, 2015, two or more providers that utilize a wireless technology and that are capable of providing alternative voice service to the entire area for which relief is sought; or

(c) On or after June 1, 2015, three or more providers that utilize any technology and that are capable of providing alternative voice service to the entire area for which relief is sought.

2. An application filed pursuant to subsection 1 must include:

(a) A map of the entire area for which relief is sought that identifies separately each provider of alternative voice service which is intended to satisfy the requirements of subsection 1. The map must be of sufficient detail to identify the exact boundary by street of the entire area for which relief is sought.

(b) A draft of the notice which the applicant intends to provide pursuant to subsection 4.

3. The Commission shall approve or deny an application filed pursuant to subsection 1 not later than 180 days after the application is filed with the Commission. The Commission shall not approve an application unless the Commission determines that the applicant has satisfied the requirements of this section. The Commission may hold a hearing to determine whether sufficient alternative voice service exists in an area for which relief is sought by an applicant.

4. An applicant shall, not later than 30 days after filing an application pursuant to subsection 1, provide written notice:

(a) To each current customer of the applicant located within the area for which relief is sought. The notice may be included in a bill from the applicant to the customer or included in a special mailing, other than a promotional mailing, which states that important information is enclosed. If a customer has elected to receive his or her bill in an electronic form, such notice must be provided to the customer electronically in the same manner in which he or she receives a bill from the applicant.

(b) To each public safety answering point which is located within the area for which relief is sought.

5. The written notice provided to each customer pursuant to paragraph (a) of subsection 4 must include, in clear and comprehensive language that is understandable to an ordinary layperson:

(a) A statement that the applicant has applied to the Commission for relief of its obligations as a provider of last resort in the area in which the customer resides.

(b) A statement that a consumer session will be conducted by the Commission in accordance with subsection 7 at which the customer may make inquiries or comments concerning the application.

(c) A statement that the Commission will issue a public notice identifying the time, date and location of the consumer session.

(d) Any additional information required by the Commission.

6. A competitive supplier who files an application for relief pursuant to subsection 1 shall conduct at least one meeting concerning the application, which must include the following parties:

(a) The Commission;

(b) The Consumer’s Advocate;

(c) Representatives from each public safety answering point that is located within the area for which relief is sought; and

(d) Each local law enforcement agency whose jurisdiction includes, in whole or in part, the area for which relief is sought.

7. Not later than 120 days after receiving an application filed pursuant to subsection 1, the Commission shall, in collaboration with the applicant, schedule and conduct at least one consumer session in each county in which is located, in whole or in part, any area for which relief is sought under the application. The Commission shall provide notice of the consumer session in accordance with regulations adopted pursuant to NRS 703.320.

8. A competitive supplier that is relieved of its obligation and status as a provider of last resort pursuant to this section shall not apply for, and is not entitled to receive, any money from the fund to maintain the availability of telephone service for any area for which relief has been granted pursuant to this section, except for money for the provision of lifeline service, as the term is defined in NRS 707.450.

9. If the Commission issues an order approving an application for relief pursuant to this section, the relief granted by such approval does not affect or modify any obligation of an incumbent local exchange carrier pursuant to any applicable federal law or regulation.

10. A competitive supplier that is an incumbent local exchange carrier and receives, on or before June 2, 2013, full or partial relief from its obligations as a provider of last resort pursuant to NRS 704.6878 shall be deemed to be fully released from any obligation as a provider of last resort for the area for which relief was granted on or before June 2, 2013.

11. Except as otherwise provided in this section, any relief granted pursuant to this section does not impose any obligation upon a provider of alternative voice service in the area for which relief was granted.

12. The Commission may declare that an emergency exists in any area in which alternative voice service is not available and where a competitive supplier has been granted relief from its obligations as a provider of last resort pursuant to this section. If the Commission declares an emergency pursuant to this subsection, the Commission may:

(a) Take any steps necessary to protect the health, safety and welfare of the affected residents or businesses and may expedite the availability of alternative voice service to the affected residents or businesses.

(b) Utilize the fund to maintain the availability of telephone service to ensure that any affected resident or business has access to alternative voice service.

(c) Issue an order imposing on a provider of alternative voice service one or more obligations, including, without limitation, the obligation to maintain adequate and reliable service for a specified period, but such obligations may be imposed only to the extent that the provider receives money from the fund to maintain the availability of telephone service relating to the provision of service pursuant to the order issued by the Commission pursuant to this paragraph.

13. If, as a result of the approval by the Commission of an application filed pursuant to subsection 1, a residential customer does not have access to telephone service, including alternative voice service, the customer may, on or before May 31, 2016, file a request for service with the Commission. Upon receipt of a request, the Commission shall investigate whether such service is available to the customer. If the Commission determines that service is not available, the Commission may order the competitive supplier that received relief pursuant to this section to provide service to the residential customer for a period specified by the Commission. If a competitive supplier is ordered to provide service to a residential customer pursuant to this subsection, the competitive supplier may satisfy its obligation pursuant to this subsection by providing an alternative voice service as provided in NRS 704.68881.

14. Except as otherwise provided in subsections 12 and 13, a provider of alternative voice service that is not a provider of last resort, or a competitive supplier that has been relieved of its obligations as a provider of last resort, is not required to assume the obligations of a provider of last resort.

15. As used in this section:

(a) “Alternative voice service” means a retail voice service made available through any technology or service arrangement other than satellite service that provides:

(1) Voice-grade access to the public switched telephone network; and

(2) Access to emergency 911 service.

(b) “Public safety answering point” has the meaning ascribed to it in NRS 707.500.

(Added to NRS by 2013, 1943)

NRS 704.68887 Anticompetitive acts and unlawful discrimination prohibited. In exercising flexibility in the rates, pricing, terms and conditions of any telecommunication service, a competitive supplier that is an incumbent local exchange carrier shall not engage in any anticompetitive act or practice or unlawfully discriminate among similarly situated customers.

(Added to NRS by 2007, 692)

ELECTRIC SERVICE

Conversion of Certain Generation Facilities

NRS 704.701 Definitions. As used in NRS 704.701 to 704.731, inclusive, unless the context otherwise requires:

1. “Coal” includes anthracite, bituminous or subbituminous coal, and lignite.

2. “Cost of the conversion” means the cost determined by the Commission to be reasonable and necessary for a conversion, including the cost of:

(a) Engineering, administration and any legal expenses;

(b) Environmental studies and control equipment;

(d) Equipment and facilities for the handling, storage and disposal of the resulting waste, regardless of their location;

(e) Adapting or refurbishing boilers to permit the combustion of coal; and

(f) Interest and other expenses relating to the financing of the conversion,

Ê whether or not those costs are incurred before the date of initial conversion. The term does not include any costs incurred to expand the facility’s generating capacity during the conversion.

3. “Cost saved” means the difference in cost between an amount of coal and an equal amount of gas or oil calculated on the basis of British thermal units.

4. “Date of initial conversion” means the first day on which an existing facility for the generation of electricity which was fired by gas or oil generates electricity for continuous distribution to customers by the combustion of coal, whether or not additional work must be performed to complete construction on or the conversion of the facility.

(Added to NRS by 1983, 751)

NRS 704.706 Conversion of facility to allow firing by coal: Application for adjustment of rates; public hearing.

1. A public utility proposing to convert an existing facility in this state for the generation of electricity which is fired by gas or oil to a facility which is also capable of being fired by coal may apply to the Commission for an adjustment in its rates to permit its recovery of the cost of the conversion.

2. After receipt of such an application, the Commission shall hold a public hearing within 120 days to consider whether to authorize such an adjustment and, if authorized, the methods to be used to permit the recovery.

(Added to NRS by 1983, 752)

NRS 704.711 Decision on application for adjustment; conditions; requirements for approval; federal or state grants.

1. The Commission shall render its written decision within 180 days after receiving the application for such an adjustment.

2. The Commission shall render its decision based on the record and may grant the application, deny it or grant it according to such terms, conditions or modifications as the Commission finds appropriate.

3. The Commission may grant an application for such an adjustment if it determines that:

(a) There is substantial evidence that the projected saving in fuel is greater than the cost of conversion.

(b) The conversion is consistent with and included in the utility’s plan for resources.

4. If the applicant becomes, by reason of the conversion, entitled to any federal or state grant, the Commission shall make such determinations and issue such orders as are necessary to reduce the amount of the cost of the conversion which the applicant would otherwise recover by means of the adjustment. If such a grant is received after the termination of the adjustment, the Commission shall make such determinations and issue such orders as are necessary to return any excess collected to the customers.

(Added to NRS by 1983, 752)

NRS 704.716 Calculation of amount of adjustment; effect on rates, prices and charges.

1. The amount of the adjustment must:

(a) Permit the applicant to recover the cost of the conversion, net of any taxes which may be imposed on the applicant for revenue received because of the adjustment, within the period of recovery authorized by the Commission.

(b) Be at least two-thirds, but not more than three-fourths, of the cost of the fuel saved.

2. The Commission shall not recognize, when calculating any rate, price or charge, other than the amount of the adjustment, the costs of the conversion subject to the requirements of this section.

(Added to NRS by 1983, 752)

NRS 704.721 Filing of tariff on date of conversion. On the date of initial conversion, the public utility shall file with the Commission a tariff which sets forth the adjustment in the rates authorized as a result of the conversion.

(Added to NRS by 1983, 752)

NRS 704.726 Annual accounting of cost of conversion and revenues from adjustment in rates; termination of adjustment upon recovery of cost of conversion.

1. A public utility shall annually present to the Commission a certified accounting of the cost of conversion and an accounting of the revenues it has received in that year from the adjustment in its rates.

2. When a public utility has fully recovered its share of the cost of conversion and the debt and interest thereon are paid, or at the end of the period set for the recovery, whichever is sooner, it shall:

(a) Stop the adjustment;

(b) Rescind the applicable tariff;

(c) Present the Commission with proof of the public utility’s compliance with all orders of the Commission regarding the adjustment; and

(d) Present the Commission with a complete accounting of the cost of conversion and revenues it has received through the adjustment.

3. If the proof so presented in subsection 2 shows that the revenue collected pursuant to the adjustment is not equal to the public utility’s share of the cost of the conversion, the Commission shall order any actions necessary to return any excess or collect the amount still needed for full recovery.

(Added to NRS by 1983, 752)

NRS 704.731 Faith of State pledged. The faith of the State is hereby pledged that NRS 704.701 to 704.731, inclusive, will not be repealed, amended or modified to impair any tariff or charge ordered by the Commission pursuant to those sections.

(Added to NRS by 1983, 753)

Reduction of Emissions From Coal-Fired Electric Generating Plants

NRS 704.7311 Definitions. As used in NRS 704.7311 to 704.7322, inclusive, unless the context otherwise requires, the words and terms defined in NRS 704.7312 to 704.7315, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2013, 3074)

NRS 704.7312 “Coal-fired electric generating plant” defined. “Coal-fired electric generating plant” means an electric generating plant which burns coal to produce electricity and which is owned, in whole or in part, by an electric utility.

(Added to NRS by 2013, 3074)

NRS 704.7313 “Electric utility” defined. “Electric utility” means an electric utility that primarily serves densely populated counties, as that term is defined in paragraph (c) of subsection 17 of NRS 704.110.

(Added to NRS by 2013, 3074)

NRS 704.7314 “Emissions reduction and capacity replacement plan” defined. “Emissions reduction and capacity replacement plan” means a plan filed by an electric utility with the Commission pursuant to NRS 704.7316.

(Added to NRS by 2013, 3074)

NRS 704.7315 “Renewable energy facility” defined. “Renewable energy facility” means an electric generating facility that uses renewable energy to produce electricity. As used in this section, “renewable energy” has the meaning ascribed to it in NRS 704.7715.

(Added to NRS by 2013, 3074; A 2019, 14)

1. An electric utility shall file with the Commission, as part of the plan required to be submitted pursuant to NRS 704.741, a comprehensive plan for the reduction of emissions from coal-fired electric generating plants and the replacement of the capacity of such plants with increased capacity from renewable energy facilities and other electric generating plants.

2. The emissions reduction and capacity replacement plan must provide:

(a) For the retirement or elimination of:

(1) Not less than 300 megawatts of coal-fired electric generating capacity on or before December 31, 2014;

(2) In addition to the generating capacity retired or eliminated pursuant to subparagraph (1), not less than 250 megawatts of coal-fired electric generating capacity on or before December 31, 2017; and

(3) In addition to the generating capacity retired or eliminated pursuant to subparagraphs (1) and (2), not less than 250 megawatts of coal-fired electric generating capacity on or before December 31, 2019.

Ê For the purposes of this paragraph, the generating capacity of a coal-fired electric generating plant must be determined by reference to the most recent resource plan filed by the electric utility pursuant to NRS 704.741 and accepted by the Commission pursuant to NRS 704.751.

(b) Except as otherwise provided in subparagraphs (3) and (7), for the construction or acquisition of, or contracting for, 350 megawatts of electric generating capacity from renewable energy facilities. The electric utility shall:

(1) Issue a request for proposals for 100 megawatts of electric generating capacity from new renewable energy facilities on or before December 31, 2014;

(2) In addition to the request for proposals issued pursuant to subparagraph (1), issue a request for proposals for 100 megawatts of electric generating capacity from new renewable energy facilities on or before December 31, 2015;

(3) In addition to the requests for proposals issued pursuant to subparagraphs (1) and (2), and upon a determination by the Commission that the electric utility has satisfactorily demonstrated a need for such electric generating capacity, issue a request for proposals for not more than 100 megawatts of electric generating capacity from new renewable energy facilities;

(4) Review each proposal received pursuant to subparagraphs (1), (2) and (3) and identify those renewable energy facilities that will provide:

(I) The greatest economic benefit to this State;

(II) The greatest opportunity for the creation of new jobs in this State; and

(III) The best value to customers of the electric utility;

(5) Negotiate, in good faith, to construct, acquire or contract with the renewable energy facilities identified pursuant to subparagraph (4), and file with the Commission an amendment to the plan each time the utility wishes to construct, acquire or contract with such facilities;

(6) Begin, on or before December 31, 2017, the construction or acquisition of a portion of new renewable energy facilities with a generating capacity of approximately 15 megawatts to be owned and operated by the electric utility, and complete construction of such facilities on or before December 31, 2021; and

(7) After June 10, 2015, upon a determination by the Commission that the electric utility has satisfactorily demonstrated a need for such electric generating capacity, begin the construction or acquisition of new renewable energy facilities with a generating capacity of not more than 35 megawatts to be owned and operated by the electric utility.

Ê For the purposes of this paragraph, the generating capacity of a renewable energy facility must be determined by the nameplate capacity of the facility.

(c) For the electric utility to construct or acquire and own electric generating plants with an electric generating capacity of 496 megawatts, which must be constructed or acquired to replace, in an orderly and structured manner, the coal-fired electric generating capacity retired or eliminated pursuant to paragraph (a).

(d) After June 10, 2015, upon a determination by the Commission that the electric utility has satisfactorily demonstrated a need for such electric generating capacity, for the electric utility to construct or acquire and own electric generating plants with an electric generating capacity of not more than 54 megawatts, which must be constructed or acquired to replace, in an orderly and structured manner, the coal-fired electric generating capacity retired or eliminated pursuant to paragraph (a).

(e) If the plan includes the construction or acquisition of one or more natural gas-fired electric generating plants, a strategy for the commercially reasonable physical procurement of fixed-price natural gas by the electric utility.

(f) A plan for tracking and specifying the accounting treatment for all costs associated with the decommissioning of the coal-fired electric generating plants identified for retirement or elimination.

Ê For the purposes of this subsection, an electric utility shall be deemed to own, acquire, retire or eliminate only its pro rata portion of any electric generating facility that is not wholly owned by the electric utility and, except as otherwise provided in paragraph (b), “capacity” means an amount of firm electric generating capacity used by the electric utility for the purpose of preparing a plan filed with the Commission pursuant to NRS 704.736 to 704.754, inclusive.

3. In addition to the requirements for an emissions reduction and capacity replacement plan set forth in subsection 2, the plan may include additional utility facilities, electric generating plants, elements or programs necessary to carry out the plan, including, without limitation:

(a) The construction of natural gas pipelines necessary for the operation of any new natural gas-fired electric generating plants included in the plan;

(b) Entering into contracts for the transportation of natural gas necessary for the operation of any natural gas-fired electric generating plants included in the plan; and

(c) The construction of transmission lines and related infrastructure necessary for the operation or interconnection of any electric generating plants included in the plan.

(Added to NRS by 2013, 3074; A 2015, 3654)

NRS 704.7317 Electric utility required to record certain amounts in regulatory asset. An electric utility shall, upon the completion of construction or acquisition of any electric generating plant or other facility constructed or acquired pursuant to an emissions reduction and capacity replacement plan accepted by the Commission pursuant to NRS 704.751, begin recording in a regulatory asset, with carrying charges, an amount that reflects a return on the electric utility’s investment in the facility, depreciation of the utility’s investment in the facility and the cost of operating and maintaining the facility.

(Added to NRS by 2013, 3076)

1. To ensure the remediation and, when possible, the reuse of any site used for the production of electricity from a coal-fired electric generating plant, natural gas electric generating plant or renewable energy facility in this State, the Division of Environmental Protection of the State Department of Conservation and Natural Resources has exclusive jurisdiction to supervise and regulate the remediation of such sites, including, without limitation, exclusive authority to regulate and supervise the remediation of surface water and groundwater and solid-waste disposal operations located at such a site.

2. The Division of Environmental Protection has exclusive authority to regulate emissions from any electric generating plant constructed on a site previously used for the production of electricity from a coal-fired electric generating plant.

(Added to NRS by 2013, 3076; A 2015, 2215)

NRS 704.7319 General rate proceedings filed before June 1, 2018, which include request to recover certain costs. If, in any general rate proceeding filed by an electric utility before June 1, 2018, the utility includes a request for recovery of any amount related to the implementation of an emissions reduction and capacity replacement plan and recovery of such an amount would result in an increase in the electric utility’s total revenue requirement of more than 5 percent, the utility must propose a method or mechanism by which such excess may be mitigated. The Commission may accept or reject such a rate method or mechanism. If the mitigation method or mechanism is approved by the Commission, the utility shall record any deferred revenue in a regulatory asset account and may calculate carrying charges on the unamortized balance of the regulatory asset.

(Added to NRS by 2013, 3076)

1. An electric utility shall file with the Commission an amendment to the utility’s emissions reduction and capacity replacement plan each time the utility requests approval and acceptance by the Commission of any contract with a new renewable energy facility as the result of a request for proposals pursuant to the current emissions reduction and capacity replacement plan. Except as otherwise provided in subsection 3, the Commission may approve and accept the renewable energy facility if the Commission determines that:

(a) The facility is a renewable energy system as defined in NRS 704.7815; and

(b) The terms and conditions of the contract are just and reasonable and satisfy the capacity requirements set forth in subsection 2 of NRS 704.7316.

2. In considering a contract pursuant to subsection 1, the Commission shall, in addition to considering the cost to customers of the electric utility, give consideration to those contracts or renewable energy facilities that will provide:

(a) The greatest economic benefit to this State;

(b) The greatest opportunity for the creation of new jobs in this State; and

3. The Commission may approve a contract as the result of the issuance of a request for proposals after June 10, 2015, if the Commission:

(a) Authorizes the issuance of the request for proposals pursuant to a written order of the Commission issued after June 10, 2015; and

(b) Determines that the electric utility has satisfactorily demonstrated a need for the capacity that would be acquired or otherwise provided for pursuant to the contract.

(Added to NRS by 2013, 3077; A 2015, 3656)

NRS 704.7321 Commission may recommend to electric utility modification of or amendment to emissions reduction and capacity replacement plan; actions by electric utility. If the Commission deems inadequate any portion of an emissions reduction and capacity replacement plan or any amendment to the plan, the Commission may recommend to the electric utility a modification of that portion of the plan or amendment, and the electric utility may:

1. Accept the modification; or

2. Withdraw the proposed plan or amendment.

(Added to NRS by 2013, 3077)

NRS 704.7322 Regulations. The Commission shall adopt any regulations necessary to carry out the provisions of NRS 704.7311 to 704.7322, inclusive.

(Added to NRS by 2013, 3077)

Surplus Assets

NRS 704.733 Definitions. As used in NRS 704.733 to 704.7341, inclusive, unless the context otherwise requires, the words and terms defined in NRS 704.7331 to 704.7337, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2015, 2214)

NRS 704.7331 “Asset” defined. “Asset” has the meaning ascribed to the term “generation asset” in NRS 704.7575 which contains 50 or more contiguous acres, and of which all real and personal property, including, without limitation, land, structures, equipment and transmission lines and switching stations directly associated with the generation asset, are located wholly or partially within this State.

(Added to NRS by 2015, 2214)

NRS 704.7332 “Decommissioned” defined. “Decommissioned” means a surplus asset on which all operations have ceased and which has been cleared and environmentally remediated as necessary and which is ready for sale or disposal.

(Added to NRS by 2015, 2214)

NRS 704.7333 “Electric utility” defined. “Electric utility” means any public utility that is in the business, on lands within this State, as sole owner or co-owner of an asset that provides sales or service of electricity to customers within or outside of this State.

(Added to NRS by 2015, 2214)

NRS 704.7334 “Operational” defined. “Operational” means an asset which is actively utilized or operating at full capacity or reduced capacity.

(Added to NRS by 2015, 2214)

NRS 704.7335 “Post-operational reserve” defined. “Post-operational reserve” means an asset which was formerly operational that is currently closed or temporarily out-of-service, and held for future energy generation.

(Added to NRS by 2015, 2214)

NRS 704.7336 “Pre-operational reserve” defined. “Pre-operational reserve” means vacant land held for future energy generation or property in planning or under construction for future energy generation and intended for the creation of a future asset.

(Added to NRS by 2015, 2214)

NRS 704.7337 “Surplus” defined. “Surplus” means an asset that is out-of-service and no longer needed, suitable or reasonably intended to be used to generate electricity.

(Added to NRS by 2015, 2214)

NRS 704.7338 Electric utility to file list of assets with Commission; contents of list.

1. Each electric utility that is required to file a plan pursuant to NRS 704.741 shall include as part of that plan a list of all assets of the electric utility.

2. Each electric utility not specified in subsection 1 which holds a permit issued pursuant to NRS 704.870 shall, on or before January 31 of each year, file with the Commission a list of all assets.

3. Each electric utility not specified in subsection 1 or 2 which owns a utility facility, as defined in NRS 704.860, that was permitted by a local authority based on an application filed before July 1, 1971, shall file with the Commission a list of all assets of the electric utility.

4. The list of assets required by subsections 1, 2 and 3 must:

(a) Include a brief description of each asset;

(b) Include the output capacity of each asset;

(c) Classify each asset as operational, pre-operational reserve, post-operational reserve, surplus or decommissioned; and

(d) For each asset classified as pre-operational reserve or post-operational reserve, include a statement in a form approved by the Commission regarding the viability of the future use of the asset for energy generation.

5. Any asset with more than one owner must be included on the list of assets of each owner who is required to file a list pursuant to this section.

(Added to NRS by 2015, 2214)

NRS 704.7339 Reclassification of asset as surplus. For each asset classified by an electric utility as pre-operational reserve or post-operational reserve pursuant to:

1. Subsection 1 of NRS 704.7338, the Commission may, after notice and a hearing pursuant to NRS 704.746, reclassify the asset as surplus if the Commission determines that the asset is no longer used or useful to the customers of the electric utility.

2. Subsection 2 or 3 of NRS 704.7338, the Commission may, after notice and a hearing pursuant to NRS 703.320, reclassify the asset as surplus if the Commission determines that the asset is no longer utilized to produce or transmit electricity and that it is not reasonable to expect that the asset will be used to produce or transmit electricity in the future.

(Added to NRS by 2015, 2215)

NRS 704.734 Surplus asset retirement plans: Filing; contents; subject to approval by Commission.

1. For each asset which has been classified as surplus by an electric utility pursuant to NRS 704.7338 or reclassified as surplus by the Commission pursuant to NRS 704.7339, each electric utility which owns all or part of the asset shall file a surplus asset retirement plan with the Commission within 120 days after the asset has been classified or reclassified as surplus. Such a plan is subject to the approval of the Commission.

2. A surplus asset retirement plan must include:

(a) A brief description of the asset, including without limitation, its generating capacity, its current condition and any details regarding ownership.

(b) A plan for the decommissioning of the site, including without limitation, the closure of any remaining operational activities, any required environmental remediation, the removal and disposal of any physical assets deemed unsuitable for redevelopment and remediation, as determined by the Division of Environmental Protection of the State Department of Conservation and Natural Resources pursuant to NRS 704.7318, or, if decommissioning is underway or completed, a full description of the decommissioning program.

(c) A marketing plan for the sale of the asset, prepared in consultation with the Office of Economic Development, which must disclose any environmental issues or other restrictions and emphasize the value of the asset in its marketplace.

(d) A timeline for implementation of the plan, including without limitation, key dates for completion of benchmarks including a final sale date. To the extent reasonably possible, the timeline must indicate a final sale date that is within 30 months after commencement of the plan.

(Added to NRS by 2015, 2215)

NRS 704.7341 Duty of electric utility to carry out surplus asset retirement plan; amendment of plan by Commission. Except as otherwise provided in this section, each electric utility that owns all or part of an asset which has been classified as surplus by an electric utility pursuant to NRS 704.7338 or reclassified as surplus by the Commission pursuant to NRS 704.7339 shall carry out the surplus asset retirement plan filed pursuant to NRS 704.734. The Commission may, for good cause, extend the projected final sale date or otherwise amend the surplus asset retirement plan.

(Added to NRS by 2015, 2215)

Optional Pricing and Resource Planning

NRS 704.736 Applicability. The application of NRS 704.736 to 704.754, inclusive, is limited to any public utility in the business of supplying electricity which has an annual operating revenue in this state of $2,500,000 or more.

(Added to NRS by 1983, 886; A 1995, 1105; 2009, 993; 2017, 938, 2472; 2019, 14)

NRS 704.7362 Definitions. As used in NRS 704.736 to 704.754, inclusive, unless the context otherwise requires, the words and terms defined in NRS 704.7364, 704.7366 and 704.7368 have the meanings ascribed to them in those sections.

(Added to NRS by 2017, 937; A 2019, 14)

NRS 704.7364 “Cost effective” defined. “Cost effective” means an energy efficiency plan or energy efficiency program has a benefit-cost ratio of 1.0 or greater as determined by the Commission, using a test of the cost effectiveness of the plan or program that:

1. Is selected by the Commission; and

2. Accounts for any non-energy benefits of the plan or program.

(Added to NRS by 2017, 937)

NRS 704.7366 “Energy efficiency and conservation program” defined.

1. “Energy efficiency and conservation program” means a program designed, intended or used to improve energy efficiency by reducing the energy consumption by a retail customer of a utility which supplies electricity in this State.

2. The term includes, without limitation, a demand-side response program or load-limiting program that shifts the consumption of energy by a retail customer from one period to another period.

3. The term does not include the implementation or assessment of any rate which is based on the time of day, day of the week or time of year during which electricity is used or which otherwise varies based upon the time during which the electricity is used.

(Added to NRS by 2017, 938)

NRS 704.7368 “Renewable energy facility” defined. “Renewable energy facility” has the meaning ascribed to it in NRS 704.7315.

(Added to NRS by 2019, 10)

NRS 704.738 Program of optional pricing for electricity generated from renewable energy: Authorization of Commission required; Commission may authorize higher rates.

1. A utility which supplies electricity in this state may apply to the Commission for authority to charge, as part of a program of optional pricing, a higher rate for electricity that is generated from renewable energy.

2. The program may provide the customers of the utility with the option of paying a higher rate for electricity to support the increased use by the utility of renewable energy in the generation of electricity.

3. As used in this section, “renewable energy” has the meaning ascribed to it in NRS 704.7715.

(Added to NRS by 1995, 1104; A 2001, 2530, 3253; 2019, 15)

NRS 704.741 Plan to increase supply or decrease demands: Submission not less than triennially; joint plans by certain affiliated utilities; contents prescribed by regulation; requirements.

1. A utility which supplies electricity in this State shall, on or before June 1 of every third year, or more often if necessary, in the manner specified by the Commission, submit a plan to increase its supply of electricity or decrease the demands made on its system by its customers to the Commission. Two or more utilities that are affiliated through common ownership and that have an interconnected system for the transmission of electricity shall submit a joint plan.

2. The Commission shall, by regulation:

(a) Prescribe the contents of such a plan, including, but not limited to, the methods or formulas which are used by the utility or utilities to:

(1) Forecast the future demands, except that a forecast of the future retail electric demands of the utility or utilities must not include the amount of energy and capacity proposed pursuant to subsection 6 as annual limits on the total amount of energy and capacity that eligible customers may be authorized to purchase from providers of new electric resources through transactions approved by the Commission pursuant to an application submitted pursuant to NRS 704B.310 on or after May 16, 2019; and

(2) Determine the best combination of sources of supply to meet the demands or the best method to reduce them;

(b) Designate renewable energy zones and revise the designated renewable energy zones as the Commission deems necessary; and

(c) Establish requirements governing the manner in which and circumstances under which an amendment may be filed with the Commission to modify an approved plan.

3. The Commission shall require the utility or utilities to include in the plan:

(a) An energy efficiency program for residential customers which reduces the consumption of electricity or any fossil fuel and which includes, without limitation, the use of new solar thermal energy sources.

(b) A proposal for the expenditure of not less than 10 percent of the total expenditures related to energy efficiency and conservation programs on energy efficiency measures for customers of the electric utility in low-income households and residential customers and public schools in historically underserved communities, through both targeted programs and programs directed at residential customers and public schools in general.

(c) A comparison of a diverse set of scenarios of the best combination of sources of supply to meet the demands or the best methods to reduce the demands, which must include:

(1) At least one scenario of low carbon dioxide emissions that:

(I) Uses sources of supply that result in, by 2050, an amount of energy production from zero carbon dioxide emission resources that equals the forecasted demand for electricity by customers of the utility;

(II) Includes the deployment of distributed generation; and

(III) If the plan is submitted on or before June 1, 2027, uses sources of supply that result in, by the year 2030, an 80 percent reduction in carbon dioxide emissions from the generation of electricity to meet the demands of customers of the utility as compared to the amount of such emissions in the year 2005.

(2) At least one scenario that provides for the construction or acquisition of energy resources through contract or ownership to be placed into service to close an open position utilizing dedicated energy resources in this State and dedicated energy resources delivered through firm transmission. A significant share of the renewable energy facilities and energy storage systems included in the scenario must be owned by the utility.

Ê A requirement to include a particular scenario in the plan pursuant to this paragraph, or the compliance of a utility with such a requirement, shall not be construed as indicating a preference by the Commission or the utility for a particular scenario.

(d) An analysis of the effects of the requirements of NRS 704.766 to 704.776, inclusive, on the reliability of the distribution system of the utility or utilities and the costs to the utility or utilities to provide electric service to all customers. The analysis must include an evaluation of the costs and benefits of addressing issues of reliability through investment in the distribution system.

(e) A list of the utility’s or utilities’ assets described in NRS 704.7338.

(f) A surplus asset retirement plan as required by NRS 704.734.

4. For each scenario considered pursuant to subsection 3, the plan must include, without limitation:

(a) For each energy resource proposed:

(1) A description of each energy resource to be constructed, acquired or contracted for by the utility, including, without limitation, the location of the energy resource, the technology to be used by the energy resource to generate electricity, the anticipated capacity of the energy resource and the anticipated date by which the energy resource will be placed into service;

(2) The cost of constructing or acquiring, operating and maintaining the energy resource or, if the energy resource is contracted for by the utility, the price of the energy to be supplied by the energy resource;

(3) Whether the energy resource will be owned by the utility or utilized by the utility pursuant to a contract with a third party; and

(4) Any other information required by the Commission to evaluate the prudence of the scenario.

(b) An evaluation of the impact that the implementation of the scenario will have on:

(1) The ability of the utility to decrease its reliance on market purchases to meet the utility’s open energy load requirements, including, without limitation, any appropriate reserves, and the forecast of energy needs over the next 10 years;

(2) The ability of the utility to reliably integrate into its supply portfolio larger amounts of electricity from variable energy resources, including, without limitation, solar, geothermal, hydropower and wind energy resources;

(3) The ability of the utility to access energy markets or geographic locations that have excess capacity to import into this State through firm transmission to ensure additional reliability in times of increased energy needs;

(4) The ability of the utility to increase access to carbon-free energy, support compliance with the renewable portfolio standard and advance the goals for the reduction of greenhouse gas emissions set forth in NRS 445B.380 and 704.7820 through a balanced portfolio of energy supply and demand-side resources;

(5) The ability of the utility to demonstrate to a regional entity that the utility has adequate resources to meet the forecast for energy needs over the next 10 years;

(6) The ability of the utility to advance cost-effective demand-side management;

(7) The rates charged to the customers of the utility, provided that, in implementing the plan, the utility must endeavor to mitigate costs for the benefit of customers to the extent possible by utilizing federal funding and tax credits available to utilities or third parties for the development of electric resources; and

(8) The benefits from high-quality jobs, job training and apprenticeships provided by the projects included in the plan, whether constructed or operated by the utility or a third-party developer.

5. The Commission shall require the utility or utilities to include in the plan a distributed resources plan. The distributed resources plan must:

(a) Evaluate the locational benefits and costs of distributed resources. This evaluation must be based on reductions or increases in local generation capacity needs, avoided or increased investments in distribution infrastructure, safety benefits, reliability benefits and any other savings the distributed resources provide to the electricity grid for this State or costs to customers of the electric utility or utilities.

(b) Propose or identify standard tariffs, contracts or other mechanisms for the deployment of cost-effective distributed resources that satisfy the objectives for distribution planning.

(c) Propose cost-effective methods of effectively coordinating existing programs approved by the Commission, incentives and tariffs to maximize the locational benefits and minimize the incremental costs of distributed resources.

(d) Identify any additional spending necessary to integrate cost-effective distributed resources into distribution planning consistent with the goal of yielding a net benefit to the customers of the electric utility or utilities.

(e) Identify barriers to the deployment of distributed resources, including, without limitation, safety standards related to technology or operation of the distribution system in a manner that ensures reliable service.

(f) Include a transportation electrification plan as required by NRS 704.7867.

6. The Commission shall require the utility or utilities to include in the plan a proposal for annual limits on the total amount of energy and capacity that eligible customers may be authorized to purchase from providers of new electric resources through transactions approved by the Commission pursuant to an application submitted pursuant to NRS 704B.310 on or after May 16, 2019. In developing the proposal and the forecasts in the plan, the utility or utilities must use a sensitivity analysis that, at a minimum, addresses load growth, import capacity, system constraints and the effect of eligible customers purchasing less energy and capacity than authorized by the proposed annual limit. The proposal in the plan must include, without limitation:

(a) A forecast of the load growth of the utility or utilities;

(b) The number of eligible customers that are currently being served by or anticipated to be served by the utility or utilities;

(c) Information concerning the infrastructure of the utility or utilities that is available to accommodate market-based new electric resources;

(d) Proposals to ensure the stability of rates and the availability and reliability of electric service; and

(e) For each year of the plan, impact fees applicable to each megawatt or each megawatt hour to account for costs reflected in the base tariff general rate and base tariff energy rate paid by end-use customers of the electric utility.

7. The annual limits proposed pursuant to subsection 6 shall not apply to energy and capacity sales to an eligible customer if the eligible customer:

(a) Was not an end-use customer of the electric utility at any time before June 12, 2019; and

(b) Would have a peak load of 10 megawatts or more in the service territory of an electric utility within 2 years of initially taking electric service.

8. As used in this section:

(a) “Distributed generation system” has the meaning ascribed to it in NRS 701.380.

(b) “Distributed resources” means distributed generation systems, energy efficiency, energy storage, electric vehicles and demand-response technologies.

(d) “Energy” has the meaning ascribed to it in NRS 704B.090.

(e) “Energy storage system” has the meaning ascribed to it in NRS 704.793.

(f) “Historically underserved community” has the meaning ascribed to it in NRS 704.78343.

(g) “Low-income household” has the meaning ascribed to it in NRS 704.78347.

(h) “New electric resource” has the meaning ascribed to it in NRS 704B.110.

(i) “Provider of new electric resources” has the meaning ascribed to it in NRS 704B.130.

(j) “Renewable energy zones” means specific geographic zones where renewable energy resources are sufficient to develop generation capacity and where transmission constrains the delivery of electricity from those resources to customers.

(k) “Sensitivity analysis” means a set of methods or procedures which results in a determination or estimation of the sensitivity of a result to a change in given data or a given assumption.

(Added to NRS by 1983, 886; A 1987, 961; 2007, 2986; 2009, 993, 1075; 2015, 2149, 2216; 2017, 938, 4286; 2019, 1199, 3516; 2021, 3793; 2023, 3037)

1. The Commission shall require each utility which supplies electricity in this State, not less than 4 months before filing a plan required pursuant to NRS 704.741, or within a reasonable period before filing an amendment to such a plan in accordance with the regulations adopted by the Commission pursuant to NRS 704.741, to meet with personnel from the Commission and the Bureau of Consumer Protection in the Office of the Attorney General and any other interested persons to provide an overview of the anticipated filing or amendment.

2. Each utility which supplies electricity in this State shall, before filing a plan required pursuant to NRS 704.741 or an amendment to such a plan, schedule at least one consumer session to review the plan or amendment and provide an opportunity for interested persons to:

(a) Learn about the progress of the utility in developing plans and amendments to plans;

(b) Determine whether key assumptions are being applied in a consistent and acceptable manner;

(d) Offer suggestions on other matters as appropriate.

3. Each utility shall prepare a summary of each consumer session held pursuant to subsection 2 and include the summary in the testimony of the utility in support of the plan or amendment to the plan.

(Added to NRS by 2017, 2471; A 2023, 3041)

NRS 704.746 Public hearing on adequacy of plan; determination by Commission; regulations.

1. After a utility has filed its plan pursuant to NRS 704.741, the Commission shall convene a public hearing on the adequacy of the plan.

2. The Commission shall determine the parties to the public hearing on the adequacy of the plan. A person or governmental entity may petition the Commission for leave to intervene as a party. The Commission must grant a petition to intervene as a party in the hearing if the person or entity has relevant material evidence to provide concerning the adequacy of the plan. The Commission may limit participation of an intervener in the hearing to avoid duplication and may prohibit continued participation in the hearing by an intervener if the Commission determines that continued participation will unduly broaden the issues, will not provide additional relevant material evidence or is not necessary to further the public interest.

3. In addition to any party to the hearing, any interested person may make comments to the Commission regarding the contents and adequacy of the plan.

4. After the hearing, the Commission shall determine whether:

(a) The forecast requirements of the utility or utilities are based on substantially accurate data and an adequate method of forecasting.

(b) The plan identifies and takes into account any present and projected reductions in the demand for energy that may result from measures to improve energy efficiency in the industrial, commercial, residential and energy producing sectors of the area being served.

(c) The plan adequately demonstrates the economic, environmental and other benefits to this State and to the customers of the utility or utilities associated with the following possible measures and sources of supply:

(1) Improvements in energy efficiency;

(2) Pooling of power;

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

(4) Facilities that operate on solar or geothermal energy or wind;

(5) Facilities that operate on the principle of cogeneration or hydrogeneration;

(6) Other generation facilities; and

(7) Other transmission facilities.

5. The Commission shall give preference to the measures and sources of supply set forth in paragraph (c) of subsection 4 that:

(a) Provide the greatest economic and environmental benefits to the State;

(b) Are consistent with the provisions of this section;

(d) Provide the greatest opportunity for the creation of new jobs in this State; and

(e) Provide for diverse electricity supply portfolios and which reduce customer exposure to the price volatility of fossil fuels and the potential costs of carbon.

Ê In considering the measures and sources of supply set forth in paragraph (c) of subsection 4 and determining the preference given to such measures and sources of supply, the Commission shall consider the cost of those measures and sources of supply to the customers of the electric utility or utilities.

6. The Commission shall:

(a) Adopt regulations which determine the level of preference to be given to those measures and sources of supply; and

(b) Consider the value to the public of using water efficiently when it is determining those preferences.

7. The Commission shall:

(a) Consider the level of financial commitment from developers of renewable energy projects in each renewable energy zone, as designated pursuant to subsection 2 of NRS 704.741; and

(b) Adopt regulations establishing a process for considering such commitments including, without limitation, contracts for the sale of energy, leases of land and mineral rights, cash deposits and letters of credit.

8. The Commission shall, after a hearing, review and accept or modify an emissions reduction and capacity replacement plan which includes each element required by NRS 704.7316. In considering whether to accept or modify an emissions reduction and capacity replacement plan, the Commission shall consider:

(a) The cost to the customers of the electric utility or utilities to implement the plan;

(b) Whether the plan provides the greatest economic benefit to this State;

(d) Whether the plan represents the best value to the customers of the electric utility or utilities.

9. In considering whether to accept or modify a proposal for annual limits on the total amount of energy and capacity that eligible customers may be authorized to purchase from providers of new electric resources through transactions approved by the Commission pursuant to an application submitted pursuant to NRS 704B.310 after May 16, 2019, which is included in the plan pursuant to subsection 6 of NRS 704.741, the Commission shall consider whether the proposed annual limits:

(a) Further the public interest, including, without limitation, whether the proposed annual limits promote safe, economic, efficient and reliable electric service to all customers of electric service in this State;

(b) Align an economically viable utility model with state public policy goals; and

(c) Encourage the development and use of renewable energy resources located in this State and, in particular, renewable energy resources that are coupled with energy storage.

10. In considering whether to accept or modify a plan to accelerate transportation electrification submitted pursuant to NRS 704.7867, the Commission shall consider:

(a) Whether the proposed investments, incentives, rate designs, systems and programs are reasonably expected to achieve one or more of the following:

(1) Improve the efficiency of the electric utility’s electrical system, operational flexibility or system utilization during off-peak hours;

(2) Improve the ability of the electric utility to integrate renewable energy resources which generate electricity on an intermittent basis into the transmission and distribution grid;

(3) Reduce greenhouse gas emissions and air pollution;

(4) Improve air quality in communities most affected by air pollution from the transportation sector;

(5) Support increased consumer choice in electric vehicle charging and related infrastructure and services;

(6) Increase access to the use of electricity as a transportation fuel by low-income users by including investments, incentives or programs for those users, or for entities operating in communities or at locations that will benefit low-income users;

(7) Foster the investment of private capital in transportation electrification, as defined in NRS 704.7867, and the demand for skilled jobs in related services; and

(8) Provide information and education on the benefits of transportation electrification to customers.

(b) Whether the proposed investments, incentives, rate designs, systems and programs provide electric services and pricing that customers value.

(c) Whether the proposed investments, incentives, systems and programs incorporate public reporting requirements which will serve to inform program design and Commission policy.

(d) The cost to the customers of the electric utility to implement the plan.

(Added to NRS by 1983, 887; A 1989, 1607; 1991, 524; 2007, 1773; 2009, 993, 1323; 2013, 3084; 2017, 2472, 4287; 2019, 3518; 2021, 3796; 2023, 3041)

1. After a utility has filed the plan required pursuant to NRS 704.741, the Commission shall issue an order accepting or modifying the plan or specifying any portions of the plan it deems to be inadequate:

(a) Within 135 days for any portion of the plan relating to the energy supply plan for the utility for the 3 years covered by the plan; and

(b) Within 210 days for all portions of the plan not described in paragraph (a).

Ê If the Commission issues an order modifying the plan, the utility or utilities may consent to or reject some or all of the modifications by filing with the Commission a notice to that effect. Any such notice must be filed not later than 30 days after the date of issuance of the order. If such a notice is filed, any petition for reconsideration or rehearing of the order must be filed with the Commission not later than 10 business days after the date the notice is filed.

2. If a utility files an amendment to a plan, the Commission shall issue an order accepting or modifying the amendment or specifying any portions of the amendment it deems to be inadequate:

(a) Within 165 days after the filing of the amendment; or

(b) Within 180 days after the filing of the amendment for all portions of the amendment which contain an element of the emissions reduction and capacity replacement plan.

Ê If the Commission issues an order modifying the amendment, the utility or utilities may consent to or reject some or all of the modifications by filing with the Commission a notice to that effect. Any such notice must be filed not later than 30 days after the date of issuance of the order. If such a notice is filed, any petition for reconsideration or rehearing of the order must be filed with the Commission not later than 10 business days after the date the notice is filed.

3. Any order issued by the Commission accepting or modifying a plan required pursuant to NRS 704.741 or an amendment to such a plan must include the justification of the Commission for the preferences given pursuant to subsection 5 of NRS 704.746 to the measures and sources of supply set forth in paragraph (c) of subsection 4 of NRS 704.746.

4. All prudent and reasonable expenditures made to develop the utility’s or utilities’ plan, including environmental, engineering and other studies, must be recovered from the rates charged to the utility’s or utilities’ customers.

5. The Commission may accept an energy efficiency plan containing an energy efficiency program submitted pursuant to paragraph (a) of subsection 3 of NRS 704.741 and energy efficiency and conservation programs submitted pursuant to paragraph (b) of subsection 3 of NRS 704.741 that are not cost effective if the energy efficiency plan as a whole is cost effective. Any order issued by the Commission accepting or modifying an energy efficiency plan or an amendment to such a plan must, if the energy efficiency plan remains cost effective, require that not less than 10 percent of the total expenditures of the utility or utilities on approved energy efficiency and conservation programs in the energy efficiency plan must be specifically directed to energy efficiency measures for customers of the utility or utilities in low-income households and residential customers and public schools in historically underserved communities, through both targeted programs and programs directed at residential customers and public schools in general.

6. The Commission may accept a distributed resources plan submitted pursuant to subsection 5 of NRS 704.741 if the Commission determines that the plan includes each element required by that subsection.

7. Any order issued by the Commission accepting or modifying an element of an emissions reduction and capacity replacement plan must include provisions authorizing the electric utility or utilities to construct or acquire and own electric generating plants necessary to meet the capacity amounts approved in, and carry out the provisions of, the plan. As used in this subsection, “capacity” means an amount of firm electric generating capacity used by the electric utility or utilities for the purpose of preparing a plan filed with the Commission pursuant to NRS 704.736 to 704.754, inclusive.

8. The Commission shall accept a transmission infrastructure for a clean energy economy plan that conforms to the requirements of subsections 1 and 2 of NRS 704.79877 and includes the evaluations required by subsection 4 of NRS 704.79877.

9. As used in this section:

(a) “Historically underserved community” has the meaning ascribed to it in NRS 704.78343.

(b) “Low-income household” has the meaning ascribed to it in NRS 704.78347.

(Added to NRS by 1983, 887; A 1989, 1014; 2007, 1774; 2009, 994; 2013, 3085; 2015, 1095; 2017, 939, 2473, 4289; 2021, 3798; 2023, 3044)

1. A utility or two or more utilities under common ownership may, in a plan filed pursuant to NRS 704.741 or an amendment to such a plan, request that the Commission establish a just and reasonable price for the energy produced by a renewable energy facility owned by such utility or utilities by means of reference to a competitive market rate. A request pursuant to this subsection must include a request that the Commission exclude any capital investment associated with the renewable energy facility from the rate base of the utility or utilities and expenses associated with such facility from the revenue requirement of the utility or utilities.

2. If a utility or utilities make a request pursuant to subsection 1, the Commission may grant the request. If the Commission grants the request, any capital investment made by the utility or utilities in such a renewable energy facility must be excluded from the rate base of the utility or utilities and all expenses associated with the facility must be excluded from the revenue requirement of the utility or utilities. The just and reasonable price for the electricity generated by the renewable energy facility must be established by reference to a competitive market price for the electricity, without regard or reference to the principles of cost of service or rate of return price setting. The Commission may determine a competitive market price based on the results of a reasonably contemporaneous competitive request for proposals for a substantially similar product with substantially similar terms and conditions, including duration of the proposal.

3. In an order approving or modifying a plan filed by a utility or utilities pursuant to NRS 704.741 or an amendment to such a plan that includes a provision for the acquisition of a renewable energy facility, the Commission may establish reasonable performance terms and conditions for the generation and sale of the electricity.

4. The Commission shall establish by regulation a mechanism by which a utility that is authorized to charge its customers a just and reasonable price established by the Commission for the electricity generated by a renewable energy facility may account for the electricity generated by the renewable energy facility and charge the just and reasonable price for that electricity to its customers through the mechanism set forth in NRS 704.187. The regulations adopted pursuant to this subsection also must ensure that no costs shall be borne by customers of the utility other than those costs approved by the Commission to be reflected in the mechanism set forth in NRS 704.187 for the term specified in the Commission’s order. At the conclusion of the term, the Commission shall not allow the utility to include the remaining capital investment, if any, associated with such a facility in the utility’s rate base or to include any expenses associated with the facility in the utility’s revenue requirement. The Commission may establish regulations for the utility to make a proposal regarding recovery of a just and reasonable price for energy produced by the facility beyond the initial term approved by the Commission by filing a plan pursuant to NRS 704.741 or an amendment to such a plan. Any such proposal must be reviewed and approved by the Commission before any other costs associated with the facility are charged to customers through the mechanism set forth in NRS 704.187.

5. As part of any order issued by the Commission approving or modifying a plan filed by a utility or utilities pursuant to NRS 704.741 or an amendment to such plan that includes a provision for the acquisition of a renewable energy facility pursuant to subsection 2, the Commission shall make all findings necessary to support the conclusion that the facility is not public utility property as defined in section 168(i) of the Internal Revenue Code, 26 U.S.C. § 168(i).

(Added to NRS by 2019, 10)

NRS 704.753 Acquisition by utility of renewable energy facility from which utility was authorized to purchase electricity in plan approved by Commission. A utility may, without any additional approval of the Commission, acquire an existing renewable energy facility or a renewable energy facility that is being developed if:

1. The Commission has accepted a provision of a plan or an amendment to a plan pursuant to NRS 704.751 that provides for the purchase of the electricity generated by the renewable energy facility pursuant to an agreement for the purchase of that electricity.

2. The utility provides a notice to the Commission which states:

(a) That the utility will not include the renewable energy facility in its rate base or expenses associated with the facility in its revenue requirement and, instead, will use the mechanism established by the regulations adopted by the Commission pursuant to subsection 4 of NRS 704.752 to account for the electricity generated by the renewable energy facility and charge a just and reasonable price for that electricity to its customers through the deferred accounting mechanism set forth in NRS 704.187;

(b) The contract price originally approved by the Commission will be the just and reasonable price that the utility will charge its customers for electricity generated by the renewable energy facility pursuant to the accounting mechanism set forth in NRS 704.187;

(c) The utility agrees to be bound by all of the terms and conditions of the agreement for the purchase of the electricity that was accepted by the Commission pursuant to NRS 704.751 and acknowledges that, following the conclusion of the term of the agreement, the utility may not include:

(1) Any capital investment associated with the renewable energy facility in the utility’s rate base; or

(2) Any expense associated with the renewable energy facility in the utility’s revenue requirement; and

(d) That the utility acknowledges that, at the conclusion of the existing term of the agreement, the utility may not include a just and reasonable charge for the price of the electricity produced by the renewable energy facility in the deferred accounting mechanism set forth in NRS 704.187 unless the Commission approves a just and reasonable charge by reference to a competitive market price through a plan filed pursuant to NRS 704.741, or an amendment to such plan, filed by the utility pursuant to the regulations adopted by the Commission pursuant to subsection 4 of NRS 704.752.

(Added to NRS by 2019, 11)

NRS 704.754 Reports regarding transmission plan. On or before February 15 of each odd-numbered year, the Commission shall review, approve and submit to the Director of the Legislative Counsel Bureau for transmittal to the next regular session of the Legislature a written report compiling all information about any transmission plan proposed by, adopted by or made known to the Commission since the last report.

(Added to NRS by 2009, 992)

Disposal of Generation Assets

NRS 704.7561 Definitions. As used in NRS 704.7561 to 704.7595, inclusive, unless the context otherwise requires, the words and terms defined in NRS 704.7565 to 704.7581, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2001, 343)

NRS 704.7565 “Affiliate” defined. “Affiliate” means a person who, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with an electric utility.

(Added to NRS by 2001, 343)

NRS 704.7568 “Dispose of a generation asset” defined. “Dispose of a generation asset” means to:

1. Sell, lease, assign, transfer or divest an interest in a generation asset, in whole or in part, to another person; or

2. Perform any promise, covenant or obligation to sell, lease, assign, transfer or divest an interest in a generation asset, in whole or in part, to another person pursuant to the terms of a contract or agreement executed before, on or after April 18, 2001, unless, before April 18, 2001:

(a) All terms and conditions of the contract or agreement were satisfied; and

(b) All parties to the contract or agreement fully performed all promises, covenants and obligations under the contract or agreement.

(Added to NRS by 2001, 343)

NRS 704.7571 “Electric utility” defined.

1. “Electric utility” means:

(a) Any public utility or successor in interest that:

(1) Is in the business of providing electric service to customers;

(2) Holds a certificate of public convenience and necessity issued or transferred pursuant to this chapter; and

(b) A subsidiary or affiliate of such a public utility;

(d) A successor in interest to any public utility, subsidiary, affiliate, holding company or person described in paragraph (a), (b) or (c).

2. The term does not include a cooperative association, nonprofit corporation, nonprofit association or provider of electric service which is declared to be a public utility pursuant to NRS 704.673 and which provides service only to its members.

(Added to NRS by 2001, 343)

NRS 704.7575 “Generation asset” defined.

1. “Generation asset” means any plant, facility, equipment or system that:

(a) Converts other forms of energy into electricity or otherwise produces electricity;

(b) Is or was owned, possessed, controlled, leased, operated, administered, maintained, acquired or placed into service by an electric utility before, on or after January 1, 2001;

(d) Is used and useful for the convenience of the public in this State, as determined by the Commission.

2. The term does not include:

(a) Any hydroelectric plant, facility, equipment or system which has a generating capacity of not more than 15 megawatts and which is located on the Truckee River or on a waterway that is appurtenant to or connected to the Truckee River.

(b) Any net metering system, as defined in NRS 704.771.

(Added to NRS by 2001, 344)

NRS 704.7578 “Interest in a generation asset” defined.

1. “Interest in a generation asset” means any interest, in whole or in part, in the physical plant, facility, equipment or system that makes up the generation asset, whether such interest is legal or equitable, present or future, or contingent or vested.

2. The term does not include any interest in the electricity or other energy produced by the generation asset.

(Added to NRS by 2001, 344)

NRS 704.7581 “Person” defined. “Person” means:

1. A natural person;

2. Any form of business or social organization and any other nongovernmental legal entity, including, without limitation, a corporation, partnership, association, trust or unincorporated organization;

3. A government or an agency or instrumentality of a government, including, without limitation, this state or an agency or instrumentality of this state; and

4. A political subdivision of this state or of any other government or an agency or instrumentality of a political subdivision of this state or of any other government.

(Added to NRS by 2001, 344)

NRS 704.7585 Provisions do not prohibit certain transactions involving generation assets or other property. The provisions of NRS 704.7561 to 704.7595, inclusive, do not prohibit an electric utility from pledging, mortgaging, granting a security interest in or otherwise encumbering any of its generation assets or other property for the purpose of securing indebtedness of the electric utility which exists on April 18, 2001, or which is issued or incurred by the electric utility after April 18, 2001, in financing transactions approved by the Commission.

(Added to NRS by 2001, 3269)

NRS 704.7588 Conditions and limitations on disposal of generation assets; approval of Commission required; application; parties; effect of certain orders. Except as otherwise provided in NRS 704.7311 to 704.7322, inclusive, 704.734 and 704.7591:

1. Before July 1, 2003, an electric utility shall not dispose of a generation asset.

2. On or after July 1, 2003, an electric utility shall not dispose of a generation asset unless, before the disposal, the Commission approves the disposal by a written order issued in accordance with the provisions of this section.

3. Not sooner than January 1, 2003, an electric utility may file with the Commission an application to dispose of a generation asset on or after July 1, 2003. If an electric utility files such an application, the Commission shall not approve the application unless the Commission finds that the disposal of the generation asset will be in the public interest. The Commission shall issue a written order approving or disapproving the application. The Commission may base its approval of the application upon such terms, conditions or modifications as the Commission deems appropriate.

4. If an electric utility files an application to dispose of a generation asset, the Consumer’s Advocate shall be deemed a party of record.

5. If the Commission approves an application to dispose of a generation asset before July 1, 2003, the order of the Commission approving the application:

(a) May not become effective sooner than July 1, 2003;

(b) Does not create any vested rights before the effective date of the order; and

(c) For the purposes of NRS 703.373, shall be deemed a final decision on the date on which the order is issued by the Commission.

(Added to NRS by 2001, 344; A 2013, 3086; 2015, 2216)

NRS 704.7591 Conditions and limitations on disposal of generation assets pursuant to certain mergers, acquisitions, transactions and transfers.

1. An electric utility may dispose of its generation assets pursuant to a merger, acquisition or transaction that is authorized pursuant to NRS 704.329 or pursuant to a transfer of its certificate of public convenience and necessity that is authorized pursuant to NRS 704.410, if:

(a) The electric utility disposes of substantially all of its generation assets and substantially all of its other assets to the other person in the merger, acquisition, transaction or transfer; and

(b) The Commission approves of the disposal of the generation assets in an order issued pursuant to NRS 704.7588.

2. Any person who assumes or has assumed ownership, possession, control, operation, administration or maintenance of a generation asset pursuant to a merger, acquisition, transaction or transfer described in subsection 1 is subject to the provisions of NRS 704.7561 to 704.7595, inclusive.

(Added to NRS by 2001, 345; A 2021, 3800)

NRS 704.7595 Effect of violation. If an electric utility disposes of a generation asset in violation of NRS 704.7561 to 704.7595, inclusive, the disposal is void and unenforceable and is not valid for any purpose.

(Added to NRS by 2001, 345)

Alternative Rate-Making Plans

NRS 704.761 Definitions. As used in NRS 704.761 to 704.7622, inclusive, unless the context otherwise requires, the words and terms defined in NRS 704.7611 to 704.7619, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2019, 1187)

NRS 704.7611 “Alternative rate-making mechanism” defined. “Alternative rate-making mechanism” means a rate-making mechanism in an alternative rate-making plan and includes, without limitation, performance-based rates, formula rates, multi-year rate plans, subscription pricing, an earnings-sharing mechanism, decoupling mechanism or any other rate-making mechanism authorized by the Commission by regulation.

(Added to NRS by 2019, 1187)

NRS 704.7612 “Alternative rate-making plan” defined. “Alternative rate-making plan” means a plan that would implement one or more alternative rate-making mechanisms to be used in addition to or in place of the rate-making process established by NRS 704.110.

(Added to NRS by 2019, 1188)

NRS 704.7613 “Decoupling mechanism” defined. “Decoupling mechanism” means a mechanism that disassociates an electric utility’s financial performance and results from the sales of electricity by the electric utility.

(Added to NRS by 2019, 1188)

NRS 704.7614 “Earnings-sharing mechanism” defined. “Earnings-sharing mechanism” means a mechanism designed by the Commission that requires an electric utility to share earnings with its customers.

(Added to NRS by 2019, 1188)

NRS 704.7615 “Electric utility” defined. “Electric utility” has the meaning ascribed to it in NRS 704.187.

(Added to NRS by 2019, 1188)

NRS 704.7616 “Formula rates” defined. “Formula rates” means rates that are periodically adjusted based on a predetermined formula approved by the Commission without the need for an electric utility to file a general rate application pursuant to NRS 704.110.

(Added to NRS by 2019, 1188)

NRS 704.7617 “Multi-year rate plan” defined. “Multi-year rate plan” means a rate mechanism under which the Commission sets rates and revenue requirements for a multi-year plan period of more than 36 months, including, without limitation, a plan which authorizes periodic changes in rates, including, without limitation, adjustments to account for inflation or capital investments, without a general rate application.

(Added to NRS by 2019, 1188)

NRS 704.7618 “Performance-based rates” defined. “Performance-based rates” means rates that are set or adjusted based on the performance of an electric utility as determined by such performance metrics as the Commission may establish.

(Added to NRS by 2019, 1188)

NRS 704.7619 “Subscription pricing” defined. “Subscription pricing” means a rate offering to the customers of an electric utility that is based upon a set, subscription-based fee and may include other conditions for the subscription-based rate.

(Added to NRS by 2019, 1188)

NRS 704.762 Regulations establishing procedures to apply for approval of alternative rate-making plan; Commission not required to accept applications to establish plan if certain criteria not met.

1. The Commission shall adopt regulations to establish procedures for an electric utility to apply to the Commission for the approval of an alternative rate-making plan. The regulations must:

(a) Establish the alternative rate-making mechanisms that may be included in such a plan and any limitations on such alternative rate-making mechanisms as the Commission deems appropriate, including, without limitation, any restrictions on the types of alternative rate-making mechanisms that may be used in concert within the same alternative rate-making plan.

(b) Provide the information that must be included in an alternative rate-making plan and an application submitted pursuant to the regulations adopted pursuant to this section.

(c) Specify the circumstances under which an electric utility for which the Commission has approved an alternative rate-making plan is required to file a general rate application pursuant to NRS 704.110 including, without limitation, if the alternative rate-making plan ceases to meet the criteria established by the Commission pursuant to paragraph (g).

(d) Provide a process to educate customers of an electric utility regarding the available alternative rate-making mechanisms that may be included in an alternative rate-making plan.

(e) Establish requirements for an electric utility for which the Commission has approved an alternative rate-making plan to keep or cause to be kept any information and records which the utility would have been required to submit to the Commission as part of an application pursuant to NRS 704.110 or 704.187, if the filing of any such application is delayed or excused pursuant to the alternative rate-making plan.

(f) If the Commission determines that it is practicable, require an electric utility to include in its application for the approval of an alternative rate-making plan:

(1) One or more cost of service studies.

(2) An analysis estimating and comparing:

(I) The rates that would be charged and the revenue that would be collected under the alternative rate-making plan proposed in the application; and

(II) The rates that would be charged and the revenue that would be collected pursuant to the rate-making process established by NRS 704.110.

(g) Establish criteria for the evaluation of an alternative rate-making plan which may include, without limitation, whether the plan:

(1) Aligns an economically viable utility model with state public policy goals.

(2) Provides for just and reasonable rates that are comparable to rates established pursuant to NRS 704.110.

(3) Enables the delivery of electric service and options for services and pricing that customers value including, without limitation, the development and the use of renewable resources by customers that prioritize such resources above other factors, including price.

(4) Fosters statewide improvements to the economic and operational efficiency of the electrical grid.

(5) Furthers the public interest including, without limitation, the promotion of safe, economic, efficient and reliable electric service to all customers of the electric utility.

(6) Enhances the resilience and security of the electrical grid while addressing concerns regarding customer privacy.

(7) Ensures that customers of an electric utility benefit from lower regulatory administrative costs where appropriate.

(8) Facilitates the research and development of innovative electric utility services and options to benefit customers.

(9) Balances the interests of customers and shareholders by providing for services that customers want while preserving reasonable shareholder value.

2. The Commission is not required to accept applications to establish an alternative rate-making plan if the Commission determines, after a reasonable investigation, that the use of an alternative rate-making plan is not consistent with the criteria established by the Commission pursuant to paragraph (g) of subsection 1.

(Added to NRS by 2019, 1188)

NRS 704.7621 Application for establishment of alternative rate-making plan; action by Commission on application; consumer session required; investigation relating to alternative rate-making plan.

1. Except as otherwise provided in subsection 2 of NRS 704.762, and in accordance with the regulations adopted by the Commission pursuant to NRS 704.762:

(a) Not sooner than the first Monday in January 2020, an electric utility that primarily serves less densely populated counties may apply to the Commission to establish an alternative rate-making plan which sets forth the alternative rate-making mechanisms to be used to establish rates during the time period covered by the plan.

(b) Not sooner than the first Monday in January 2021, an electric utility that primarily serves densely populated counties may apply to the Commission to establish an alternative rate-making plan which sets forth the alternative rate-making mechanisms to be used to establish rates during the time period covered by the plan.

2. The Commission shall approve, with or without modifications, or deny an application submitted pursuant to subsection 1 not later than 210 days after the Commission receives a copy of the application unless the Commission, upon good cause, extends by not more than 90 days the time to act upon the application. If the Commission fails to act upon an application within the time provided by this subsection, the application shall be deemed to be denied.

3. The Commission shall conduct at least one consumer session pursuant to NRS 704.069 to solicit comments from the public before taking action on an application submitted pursuant to subsection 1.

4. The Commission shall not approve an application submitted pursuant to subsection 1 unless the Commission determines that the plan:

(a) Is in the public interest;

(b) Results in just and reasonable rates, as determined by the Commission;

(d) Satisfies the criteria established by the Commission pursuant to paragraph (g) of subsection 1 of NRS 704.762;

(e) Specifies the time period to which the plan applies; and

(f) Includes a plan for educating the customers of the electric utility regarding the alternative rate-making mechanisms included in the plan.

5. An alternative rate-making plan may include, without limitation:

(a) An earnings-sharing mechanism that balances the interests of customers that purchase electricity for consumption in this State and the shareholders of the electric utility.

(b) A term or condition waiving the requirement that the electric utility file a general rate application every 36 months pursuant to subsection 3 of NRS 704.110 or extending beyond 36 months the time between required general rate application filings.

(c) Any other term or condition proposed by an electric utility or any party participating in the proceeding or that the Commission finds is reasonable and serves the public interest.

6. The Commission may at any time, upon its own motion or after receiving a complaint from any customer, the Consumer’s Advocate or the Regulatory Operations Staff of the Commission, investigate any of the rates, tolls, charges, rules, regulations, practices and service relating to an alternative rate-making plan, and, after a full hearing as provided in NRS 704.120, by order, make such changes as may be just and reasonable to the same extent as authorized by NRS 704.120.

7. As used in this section:

(a) “Electric utility that primarily serves densely populated counties” has the meaning ascribed to it in NRS 704.110.

(b) “Electric utility that primarily serves less densely populated counties” has the meaning ascribed to it in NRS 704.110.

(Added to NRS by 2019, 1189)

NRS 704.7622 Prohibition against construction limiting rate-making authority of Commission. The provisions of NRS 704.761 to 704.7622, inclusive, must not be construed to limit the existing rate-making authority of the Commission.

(Added to NRS by 2019, 1191)

Disclosures to Customers

NRS 704.763 Electric utility required to disclose certain information concerning electric services; format, contents and methods of disclosure; regulations; exceptions.

1. On and after October 1, 2001, each electric utility shall disclose to its retail customers information about electric services, and any products and services relating thereto, that are being provided to or purchased for those retail customers by the electric utility. The disclosure must:

(a) Be in a standard, uniform format established by the Commission by regulation;

(b) Be included:

(1) At least two times each calendar year, as an insert in the bills that the electric utility sends to its retail customers; and

(2) If the electric utility maintains a website on the Internet or any successor to the Internet, on that website; and

(c) Include adequate information so that a retail customer can readily evaluate the retail customer’s options for obtaining electric services or any products or services relating thereto.

2. A disclosure required by this section must include, if applicable:

(a) The average mix of energy sources used to generate the electricity sold by the electric utility to the retail customer. An electric utility may, if available, use a regional average that has been determined by the Commission for that portion of electricity sold by the electric utility to the retail customer for which the specific mix of energy sources cannot be discerned.

(b) The average emissions, measured in pounds per megawatt-hour, of:

(1) Any high-level radioactive waste, sulfur dioxide, carbon dioxide, oxides of nitrogen and heavy metals released in this state from the generation of the electricity sold by the electric utility to the retail customer; and

(2) Any other substances released in this state from the generation of the electricity sold by the electric utility to the retail customer which the Commission, in cooperation with the Division of Environmental Protection of the State Department of Conservation and Natural Resources, determines may cause a significant health or environmental impact and for which sufficiently accurate and reliable data is available.

Ê If an electric utility uses a regional average for the mix of energy sources pursuant to paragraph (a), the electric utility shall, if available, use for the average emissions pursuant to this paragraph a regional calculation that has been determined by the Commission.

(d) Information concerning any energy programs that provide assistance to retail customers with low incomes, including, without limitation, information on the procedures to apply for such programs.

3. An electric utility:

(a) Shall make the disclosures required pursuant to this section in accordance with the requirements adopted by the Commission as to form and substance; and

(b) Shall ensure that it provides the information in compliance with all applicable state and federal laws governing unfair advertising and labeling.

4. The Commission shall adopt such regulations concerning form and substance for the disclosures required by this section as are necessary to ensure that retail customers are provided with sufficient information so that they can readily evaluate their options for obtaining electric services and any products and services relating thereto.

5. The provisions of this section do not require an electric utility to disclose to its retail customers any information about electric services, and any products and services relating thereto, that are subject to the provisions of chapter 704B of NRS.

6. As used in this section:

(a) “Electric utility” has the meaning ascribed to it in NRS 704.187.

(b) “Energy source” includes, without limitation:

(1) Coal, natural gas, oil, propane and any other fossil fuel;

(2) Geothermal energy, solar energy, hydroelectric energy, nuclear energy, wind, biofuel and biomass; and

(3) Any other specific energy source that is used to generate the electricity provided to the retail customer.

(Added to NRS by 2001, 1654; A 2001, 3267)

NRS 704.764 Electric utility required to disclose certain information concerning recycling of electronic and other waste; format, contents and methods of disclosure; regulations.

1. The Commission shall adopt regulations requiring each electric utility to disclose to its retail customers information about the safe disposal and recycling of electronic waste, electrical systems and other waste, including, without limitation, compact fluorescent light bulbs, in accordance with the comprehensive state energy plan established by the Director of the Office of Energy pursuant to NRS 701.190. The disclosure must:

(a) Be in a standard, uniform format established by the Commission by regulation; and

(b) Be included:

(1) At least two times each calendar year, as an insert in the bills that the electric utility sends to its retail customers; and

(2) If the electric utility maintains a website on the Internet or any successor to the Internet, on that website.

2. As used in this section, “electric utility” has the meaning ascribed to it in NRS 704.187.

(Added to NRS by 2009, 1391; A 2011, 2076)

Net Metering Systems

NRS 704.766 Legislative declaration. It is hereby declared to be the purpose and policy of the Legislature in enacting NRS 704.766 to 704.776, inclusive, to:

1. Encourage private investment in renewable energy resources;

2. Stimulate the economic growth of this State;

3. Enhance the continued diversification of the energy resources used in this State; and

4. Streamline the process for customers of a utility to apply for and install net metering systems.

(Added to NRS by 1997, 777; A 2007, 3003; 2011, 1941; 2015, 2150; 2019, 1201)

NRS 704.767 Definitions. As used in NRS 704.766 to 704.776, inclusive, unless the context otherwise requires, the words and terms defined in NRS 704.7675 to 704.772, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 1997, 777; A 2001, 3253; 2011, 1941; 2015, 2150; 2017, 4281; 2019, 1201)

NRS 704.7675 “Contiguous” defined. “Contiguous” means either abutting directly on the boundary or separated by a street, alley, public right-of-way, creek, river or the right-of-way of a railroad or other public service corporation.

(Added to NRS by 2011, 1940)

NRS 704.768 “Customer-generator” defined. “Customer-generator” means a user of a net metering system.

(Added to NRS by 1997, 777)

NRS 704.769 “Net metering” defined. “Net metering” means measuring the difference between the electricity supplied by a utility and the electricity generated by a customer-generator which is fed back to the utility over the applicable billing period.

(Added to NRS by 1997, 777)

NRS 704.771 “Net metering system” defined.

1. “Net metering system” means:

(a) A facility or energy system for the generation of electricity that:

(1) Uses renewable energy as its primary source of energy to generate electricity;

(2) Has a generating capacity of not more than 1 megawatt;

(3) Is located on the customer-generator’s premises;

(4) Operates in parallel with the utility’s transmission and distribution facilities; and

(5) Is intended primarily to offset part or all of the customer-generator’s requirements for electricity;

(b) A facility or energy system for the generation of electricity that:

(1) Uses waterpower as its primary source of energy to generate electricity;

(2) Is located on property owned by the customer-generator;

(3) Has a generating capacity of not more than 1 megawatt;

(4) Generates electricity that is delivered to the transmission and distribution facilities of the utility; and

(5) Is intended primarily to offset all or part of the customer-generator’s requirements for electricity on that property or contiguous property owned by the customer-generator; or

(1) Which uses wind power as its primary source of energy to generate electricity;

(2) Which is located on property owned or leased by an institution of higher education in this State;

(3) Which has a generating capacity of not more than 1 megawatt;

(4) Which operates in parallel with the utility’s transmission and distribution facilities;

(5) Which is intended primarily to offset all or part of the customer-generator’s requirements for electricity on that property or on contiguous property owned or leased by the customer-generator;

(6) Which is used for research and workforce training; and

(7) The construction or installation of which is commenced on or before December 31, 2011, and is completed on or before December 31, 2012.

2. The term does not include a facility or energy system for the generation of electricity which has a generating capacity that exceeds the greater of:

(a) The limit on the demand that the class of customer of the customer-generator may place on the system of the utility; or

(b) One hundred percent of the customer-generator’s annual requirements for electricity.

(Added to NRS by 1997, 777; A 2001, 3253; 2003, 1874; 2005, 1816; 2007, 3003; 2011, 1941)

NRS 704.7715 “Renewable energy” defined.

1. “Renewable energy” means:

(a) Biomass;

(b) Geothermal energy;

(d) Waterpower; and

(e) Wind.

2. The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.

3. As used in this section, “waterpower” means power derived from standing, running or falling water which is used for any plant, facility, equipment or system to generate electricity if the generating capacity of the plant, facility, equipment or system is not more than 30 megawatts. Except as otherwise provided in this subsection, the term includes, without limitation, power derived from water that has been pumped from a lower to a higher elevation if the generating capacity of the plant, facility, equipment or system for which the water is used is not more than 30 megawatts. The term does not include power:

(a) Derived from water stored in a reservoir by a dam or similar device, unless:

(1) The water is used exclusively for irrigation;

(2) The dam or similar device was in existence on January 1, 2003; and

(3) The generating capacity of the plant, facility, equipment or system for which the water is used is not more than 30 megawatts;

(b) That requires a new or increased appropriation or diversion of water for its creation; or

(1) The primary purpose of the use of the fossil fuel is not the creation of the power; and

(2) The generating capacity of the plant, facility, equipment or system for which the water is used is not more than 30 megawatts.

(Added to NRS by 2001, 3242; A 2019, 15)

NRS 704.772 “Utility” defined. “Utility” means a public utility that supplies electricity in this state.

(Added to NRS by 1997, 777)

1. An electric utility that primarily serves densely populated counties shall, on or before August 1, 2017, file with the Commission in a manner authorized by NRS 704.110 a request that the Commission establish an optional time-variant rate schedule for customers, including, without limitation, customer-generators who acquire an energy storage system.

2. An electric utility that primarily serves less densely populated counties shall, on or before January 16, 2018, file with the Commission in a manner authorized by NRS 704.100 a request that the Commission establish an optional time-variant rate schedule for customers, including, without limitation, customer-generators who acquire an energy storage system.

3. A request filed pursuant to subsection 1 or 2 must be designed to expand and accelerate the development and use of energy storage systems in this State.

4. The Commission:

(a) Shall review each request filed pursuant to subsection 1 or 2;

(b) May approve each request that the Commission finds to be in the public interest; and

(c) Not later than March 15, 2018, shall issue a written order approving or denying each request filed pursuant to subsection 1 or 2.

5. As used in this section:

(a) “Electric utility that primarily serves densely populated counties” has the meaning ascribed to it in NRS 704.110.

(b) “Electric utility that primarily serves less densely populated counties” has the meaning ascribed to it in NRS 704.110.

(c) “Energy storage system” means any commercially available technology that is capable of retaining energy, storing the energy for a period of time and delivering the energy after storage, including, without limitation, by chemical, thermal or mechanical means.

(d) “Time-variant rate schedule” means a rate schedule that incorporates different rates for different times of day during which electricity may be used by a customer or fed back to the utility by the customer.

(Added to NRS by 2017, 4278)

1. A utility shall offer net metering in accordance with the provisions of NRS 704.766 to 704.776, inclusive, to the customer-generators operating within its service area.

2. If the net metering system of a customer-generator who accepts the offer of a utility for net metering has a capacity of not more than 25 kilowatts, the utility:

(a) Shall offer to make available to the customer-generator an energy meter that is capable of registering the flow of electricity in two directions.

(b) May, at its own expense and with the written consent of the customer-generator, install one or more additional meters to monitor the flow of electricity in each direction.

(c) Except as otherwise provided in subsection 7, shall not charge the customer-generator any fee or charge that is different than that charged to other customers of the utility in the rate class to which the customer-generator would belong if the customer-generator did not have a net metering system.

(d) Shall not reduce the minimum monthly charge of the customer-generator based on the electricity generated by the customer-generator and fed back to the utility.

3. If the net metering system of a customer-generator who accepts the offer of a utility for net metering has a capacity of more than 25 kilowatts, the utility:

(a) May require the customer-generator to install at its own cost:

(1) An energy meter that is capable of measuring generation output and customer load; and

(2) Any upgrades to the system of the utility that are required to make the net metering system compatible with the system of the utility.

(b) Except as otherwise provided in paragraph (d) and subsection 7, shall not charge the customer-generator any fee or charge that is different than that charged to other customers of the utility in the rate class to which the customer-generator would belong if the customer-generator did not have a net metering system, including, without limitation, customer, demand and facility charges.

(c) Shall not reduce the minimum monthly charge of the customer-generator based on the electricity generated by the customer-generator and fed back to the utility.

(d) Shall not charge the customer-generator any standby charge.

4. At the time of installation or upgrade of any portion of a net metering system, the utility must allow a customer-generator governed by subsection 3 to pay the entire cost of the installation or upgrade of the portion of the net metering system.

5. Except as otherwise provided in subsections 2, 3 and 6 and NRS 704.7732, the utility shall not for any purpose assign a customer-generator to a rate class other than the rate class to which the customer-generator would belong if the customer-generator did not have a net metering system, including, without limitation, for the purpose of any fee or charge.

6. If the net metering system of a customer-generator is a net metering system described in paragraph (b) or (c) of subsection 1 of NRS 704.771 and:

(a) The system is intended primarily to offset part or all of the customer-generator’s requirements for electricity on property contiguous to the property on which the net metering system is located; and

(b) The customer-generator sells or transfers his or her interest in the contiguous property,

Ê the net metering system ceases to be eligible to participate in net metering.

7. A utility shall assess against a customer-generator:

(a) If applicable, the universal energy charge imposed pursuant to NRS 702.160; and

(b) Any charges imposed pursuant to chapter 701B of NRS or NRS 704.7827 or 704.785 which are assessed against other customers in the same rate class as the customer-generator.

Ê For any such charges calculated on the basis of a kilowatt-hour rate, the customer-generator must only be charged with respect to kilowatt-hours of energy delivered by the utility to the customer-generator.

8. The Commission and the utility must allow a customer-generator who accepts the offer of the utility for net metering to continue net metering pursuant to NRS 704.766 to 704.776, inclusive, at the location at which the net metering system is originally installed for 20 years. For the purposes of this subsection, “to continue net metering” includes, without limitation:

(a) Retaining the percentage set forth in subsection 3 of NRS 704.7732 to be used to determine the credit for electricity governed by paragraph (c) of subsection 2 of NRS 704.775, which is applicable to the customer-generator; and

(b) Replacing the originally installed net metering system, as needed, at any time before 20 years after the date of the installation of the originally installed net metering system.

9. The Commission shall adopt regulations prescribing the form and substance for a net metering tariff and a standard net metering contract. The regulations must include, without limitation:

(a) The particular provisions, limitations and responsibilities of a customer-generator which must be included in a net metering tariff with regard to:

(1) Metering equipment;

(2) Net energy metering and billing; and

(3) Interconnection,

Ê based on the allowable size of the net metering system.

(b) The particular provisions, limitations and responsibilities of a customer-generator and the utility which must be included in a standard net metering contract.

(d) Any other provisions the Commission finds necessary to carry out the provisions of NRS 704.766 to 704.776, inclusive.

(Added to NRS by 1997, 778; A 2001, 3253; 2005, 1816; 2007, 3004; 2011, 986, 1942; 2013, 3341; 2015, 2150; 2017, 4281; 2019, 1201)

NRS 704.7732 Utility required to provide customer-generator with credit for excess electricity; amount of credit; monthly report of cumulative installed capacity of certain net metering systems.

1. If a customer-generator accepts the offer of a utility for net metering on or after June 15, 2017, and the net metering system of the customer-generator has a capacity of not more than 25 kilowatts, the utility must, in accordance with this section, provide to the customer-generator a credit for each kilowatt-hour of excess electricity governed by paragraph (c) of subsection 2 of NRS 704.775 that is generated by the customer-generator.

2. The credit for each kilowatt-hour of excess electricity described in subsection 1 must equal a percentage, as set forth in subsection 3, of the rate the customer-generator would have paid for a kilowatt-hour of electricity supplied by the utility at the time the customer-generator fed the kilowatt-hour of excess electricity back to the utility.

3. The percentage to be used to determine the credit pursuant to subsection 2 for each kilowatt-hour of excess electricity must equal:

(a) Ninety-five percent, if the customer-generator accepts the offer of the utility for net metering:

(1) On or after June 15, 2017; and

(2) Before the date on which the Commission determines and posts on its Internet website its determination that the cumulative installed capacity of all net metering systems in this State with a capacity of not more than 25 kilowatts for customer-generators who accepted the offer of the utility for net metering on or after June 15, 2017, is equal to 80 megawatts;

(b) Eighty-eight percent, if the customer-generator accepts the offer of the utility for net metering:

(1) On or after the date that the Commission determines that the condition set forth in subparagraph (2) of paragraph (a) has been met; and

(2) Before the date on which the Commission determines and posts on its Internet website its determination that the cumulative installed capacity of all net metering systems in this State with a generating capacity of not more than 25 kilowatts for customer generators who accepted the offer of the utility for net metering on or after the date described in subparagraph (1) is equal to 80 megawatts;

(1) On or after the date that the Commission determines that the condition set forth in subparagraph (2) of paragraph (b) has been met; and

(2) Before the date on which the Commission determines and posts on its Internet website its determination that the cumulative installed capacity of all net metering systems in this State with a generating capacity of not more than 25 kilowatts for customer generators who accepted the offer of the utility for net metering on or after the date described in subparagraph (1) is equal to 80 megawatts;

(d) Seventy-five percent, if the customer-generator accepts the offer of the utility for net metering on or after the date that the Commission determines that the condition set forth in subparagraph (2) of paragraph (c) has been met.

4. On or before the 15th day of each calendar month, a utility shall post on its Internet website and report to the Commission the cumulative installed capacity of the net metering systems with a capacity of not more than 25 kilowatts for which a customer-generator has accepted the offer of that utility as of the close of business of the utility on the last business day of the immediately preceding calendar month.

5. Except as otherwise provided in this subsection, for the purposes of this section, a customer-generator shall be deemed to accept the offer of the utility for net metering on the date the customer-generator submits to the utility a complete application to install a net metering system within the service area of the utility. A customer-generator who accepted the offer of the utility for net metering before June 15, 2017, and whose net metering system has a capacity of not more than 25 kilowatts may, but is not required to, submit a request to be treated for all purposes, including, without limitation, for the purposes of subsection 3, as a customer-generator who accepted the offer of the utility for net metering on the date of submitting the request.

(Added to NRS by 2017, 4279)

NRS 704.774 Standards; utility prohibited from requiring certain customer-generators to meet additional requirements.

1. A net metering system used by a customer-generator must meet all applicable safety and power quality standards established by:

(a) The National Electrical Code;

(b) Underwriters Laboratories Inc.; and

2. A customer-generator whose net metering system meets such safety and quality standards must not be required by the utility to:

(a) Comply with additional standards or requirements;

(b) Perform additional tests;

(d) Purchase additional liability insurance,

Ê arising solely from the status as a customer-generator.

(Added to NRS by 1997, 778)

NRS 704.775 Billing; calculation of net energy measurement; treatment of excess electricity; status of net metering system under portfolio standard.

1. The billing period for net metering must be a monthly period.

2. The net energy measurement must be calculated in the following manner:

(a) The utility shall measure, in kilowatt-hours, the net electricity produced or consumed during the billing period, in accordance with normal metering practices.

(b) If the electricity supplied by the utility exceeds the electricity generated by the customer-generator which is fed back to the utility during the billing period, the customer-generator must be billed for the net electricity supplied by the utility.

(c) Except as otherwise provided in NRS 704.7732, if the electricity generated by the customer-generator which is fed back to the utility exceeds the electricity supplied by the utility during the billing period:

(1) Neither the utility nor the customer-generator is entitled to compensation for the electricity provided to the other during the billing period.

(2) The excess electricity which is fed back to the utility during the billing period is carried forward to the next billing period as an addition to the kilowatt-hours generated by the customer-generator in that billing period. If the customer-generator is billed for electricity pursuant to a time-of-use rate schedule, the excess electricity carried forward must be added to the same time-of-use period as the time-of-use period in which it was generated unless the subsequent billing period lacks a corresponding time-of-use period. In that case, the excess electricity carried forward must be apportioned evenly among the available time-of-use periods.

(3) Excess electricity may be carried forward to subsequent billing periods indefinitely, but a customer-generator is not entitled to receive compensation for any excess electricity that remains if:

(I) The net metering system ceases to operate or is disconnected from the utility’s transmission and distribution facilities;

(II) The customer-generator ceases to be a customer of the utility at the premises served by the net metering system; or

(III) The customer-generator transfers the net metering system to another person.

(4) The value of the excess electricity must not be used to reduce any other fee or charge imposed by the utility.

3. If the cost of purchasing and installing a net metering system was paid for:

(a) In whole or in part by a utility, the electricity generated by the net metering system shall be deemed to be electricity that the utility generated or acquired from a renewable energy system for the purposes of complying with its portfolio standard pursuant to NRS 704.7801 to 704.7828, inclusive.

(b) Entirely by a customer-generator, the Commission shall issue to the customer-generator portfolio energy credits for use within the system of portfolio energy credits adopted by the Commission pursuant to NRS 704.7821 and 704.78213 equal to the electricity generated by the net metering system.

4. A bill for electrical service is due at the time established pursuant to the terms of the contract between the utility and the customer-generator.

(Added to NRS by 1997, 778; A 2001, 3254; 2005, 1816; 2005, 22nd Special Session, 81; 2007, 3005; 2009, 995; 2017, 4284)

1. Each person providing electric service in that service territory shall be deemed to be a utility for the purposes of NRS 704.766 to 704.776, inclusive;

2. The Commission or any other agency designated by law to regulate electric service in this State shall prohibit any person providing electric service in the service territory from impeding or interrupting the operation or performance or otherwise restrict the output of an existing net metering system; and

3. A customer-generator must be required to pay any costs charged to other customers of the person providing electric service to the customer-generator in the rate class to which the customer-generator would belong if the customer-generator did not have a net metering system.

(Added to NRS by 2017, 4281; A 2019, 1203, effective with respect to electricity customers in a service territory on the date on which the Legislature provides for an open, competitive retail electric energy market for all electricity customers within that service territory)

Portfolio Standard

NRS 704.7801 Definitions. As used in NRS 704.7801 to 704.7828, inclusive, unless the context otherwise requires, the words and terms defined in NRS 704.7802 to 704.7819, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2001, 2526; A 2003, 806, 1874; 2005, 22nd Special Session, 82; 2009, 996; 2019, 15)

NRS 704.7802 “Energy efficiency measure” defined.

1. “Energy efficiency measure” means any measure designed, intended or used to improve energy efficiency:

(a) If:

(1) The measure is installed or implemented on or after January 1, 2005, at the service location of or for a retail customer of a provider of electric service in this State;

(2) The measure reduces the consumption of energy by one or more retail customers; and

(3) The costs of the acquisition, installation or implementation of the measure are directly reimbursed, in whole or in part, by the provider of electric service, or by a customer of a provider of new electric resources pursuant to chapter 704B of NRS; or

(b) Which is a geothermal energy system for the provision of heated water to one or more customers and which reduces the consumption of electricity or any fossil fuel, regardless of when constructed.

2. The term does not include any demand response measure or load limiting measure that shifts the consumption of energy by a retail customer from one period to another period.

(Added to NRS by 2005, 22nd Special Session, 80; A 2007, 413, 2986; 2011, 230)

NRS 704.7803 “Portfolio energy credit” defined. “Portfolio energy credit” means any credit which a provider has earned from a portfolio energy system or efficiency measure and which the provider is entitled to use to comply with its portfolio standard, as determined by the Commission.

(Added to NRS by 2005, 22nd Special Session, 80)

NRS 704.7804 “Portfolio energy system or efficiency measure” defined. “Portfolio energy system or efficiency measure” means:

1. Any renewable energy system:

(a) Placed into operation before July 1, 1997, if a provider of electric service used electricity generated or acquired from the renewable energy system to satisfy its portfolio standard before July 1, 2009;

(b) Placed into operation before July 1, 1997, that uses waterpower from a plant, facility, equipment or system to generate electricity, if the waterpower is acquired by the provider of electric service from another party pursuant to a contract for a term of not less than 10 years and the provider of electric service began acquiring the waterpower from the plant, facility, equipment or system before April 22, 2019; or

2. Any energy efficiency measure installed on or before December 31, 2019.

(Added to NRS by 2005, 22nd Special Session, 80; A 2013, 2318; 2019, 16)

NRS 704.7805 “Portfolio standard” defined. “Portfolio standard” means the amount of electricity that a provider must generate, acquire or save from portfolio energy systems or efficiency measures, as established by the Commission pursuant to NRS 704.7821 and 704.78213.

(Added to NRS by 2001, 2527; A 2003, 1875; 2005, 22nd Special Session, 82; 2009, 996)

NRS 704.7808 “Provider of electric service” and “provider” defined.

1. “Provider of electric service” and “provider” mean any person or entity that is in the business of selling electricity to retail customers for consumption in this State, regardless of whether the person or entity is otherwise subject to regulation by the Commission.

2. The term includes, without limitation, a provider of new electric resources that is selling electricity to an eligible customer for consumption in this State pursuant to the provisions of chapter 704B of NRS.

3. The term does not include:

(a) A landlord of a manufactured home park or mobile home park or owner of a company town who is subject to any of the provisions of NRS 704.905 to 704.960, inclusive.

(b) A landlord who pays for electricity that is delivered through a master meter and who distributes or resells the electricity to one or more tenants for consumption in this State.

(Added to NRS by 2001, 2527; A 2001, 3273; 2015, 227; 2019, 16)

NRS 704.7809 “Qualified energy recovery process” defined.

1. “Qualified energy recovery process” means a system with a nameplate capacity of not more than 15 megawatts that converts the otherwise lost energy from:

(a) The heat from exhaust stacks or pipes used for engines or manufacturing or industrial processes; or

(b) The reduction of high pressure in water or gas pipelines before the distribution of the water or gas,

Ê to generate electricity if the system does not use additional fossil fuel or require a combustion process to generate such electricity.

2. The term does not include any system that uses energy, lost or otherwise, from a process whose primary purpose is the generation of electricity, including, without limitation, any process involving engine-driven generation or pumped hydrogeneration.

(Added to NRS by 2003, 1874)

NRS 704.7811 “Renewable energy” defined.

1. “Renewable energy” means:

(a) Biomass;

(b) Geothermal energy;

(d) Waterpower; and

(e) Wind.

2. The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy.

3. As used in this section, “waterpower” means power derived from standing, running or falling water which is used for any plant, facility, equipment or system to generate electricity. Except as otherwise provided in this subsection, the term includes, without limitation, power derived from water that has been pumped from a lower to a higher elevation if the generating capacity of the plant, facility, equipment or system for which the water is used is not more than 30 megawatts, and the plant, facility, equipment or system was in existence and used to derive power from pumped water before January 1, 2019. The term does not include power:

(a) That requires a new or increased appropriation or diversion of water for its creation;

(b) That requires the use of any fossil fuel for its creation, unless the primary purpose of the use of the fossil fuel is not the creation of the power; or

(c) That was produced before April 22, 2019, from a renewable energy system with a generating capacity of more than 30 megawatts placed into operation before July 1, 1997.

(Added to NRS by 2001, 2527; A 2003, 1875; 2019, 16)

NRS 704.7815 “Renewable energy system” defined. “Renewable energy system” means:

1. A facility or energy system that uses renewable energy or energy from a qualified energy recovery process to generate electricity and:

(a) Uses the electricity that it generates from renewable energy or energy from a qualified recovery process in this State; or

(b) Transmits or distributes the electricity that it generates from renewable energy or energy from a qualified energy recovery process to a provider of electric service for delivery into and use in this State.

2. A solar energy system that reduces the consumption of electricity or any fossil fuel.

3. A net metering system used by a customer-generator pursuant to NRS 704.766 to 704.776, inclusive.

(Added to NRS by 2001, 2527; A 2001, 3274; 2003, 1866, 1875; 2005, 22nd Special Session, 82; 2009, 996, 1399; 2011, 1943; 2019, 1203)

NRS 704.7818 “Retail customer” defined.

1. “Retail customer” means an end-use customer that purchases electricity for consumption in this state.

2. The term includes, without limitation:

(a) This state, a political subdivision of this state or an agency or instrumentality of this state or political subdivision of this state when it is an end-use customer that purchases electricity for consumption in this state, including, without limitation, when it is an eligible customer that purchases electricity for consumption in this state from a provider of new electric resources pursuant to the provisions of chapter 704B of NRS.

(b) A residential, commercial or industrial end-use customer that purchases electricity for consumption in this state, including, without limitation, an eligible customer that purchases electricity for consumption in this state from a provider of new electric resources pursuant to the provisions of chapter 704B of NRS.

(c) A landlord of a manufactured home park or mobile home park or owner of a company town who is subject to any of the provisions of NRS 704.905 to 704.960, inclusive.

(d) A landlord who pays for electricity that is delivered through a master meter and who distributes or resells the electricity to one or more tenants for consumption in this state.

(e) An end-use member that purchases electricity for consumption in this state from a cooperative association, nonprofit corporation, nonprofit association or provider of electric service which is declared to be a public utility pursuant to NRS 704.675 and which provides service only to its members.

(Added to NRS by 2001, 2527; A 2001, 3274; 2015, 227; 2019, 17)

NRS 704.7819 “Utility provider” defined. “Utility provider” means a provider of electric service that is a public utility.

(Added to NRS by 2005, 22nd Special Session, 80)

NRS 704.7820 Legislative findings and declarations. The Legislature finds and declares that it is the policy of this State to:

1. Encourage and accelerate the development of new renewable energy projects for the economic, health and environmental benefits provided to the people of this State;

2. Become a leading producer and consumer of clean and renewable energy, with a goal of achieving by 2050 an amount of energy production from zero carbon dioxide emission resources equal to the total amount of electricity sold by providers of electric service in this State; and

3. Ensure that the benefits of the increased use of portfolio energy systems and energy efficiency measures are received by the residents of this State. Such benefits include, without limitation, improved air quality, reduced water use, a more diverse portfolio of resources for generating electricity, reduced fossil fuel consumption and more stable rates for retail customers of electric service.

(Added to NRS by 2019, 11)

1. For each provider of electric service, the Commission shall establish a portfolio standard. Except as otherwise provided in subsections 6, 8 and 9, the portfolio standard must require each provider to generate, acquire or save electricity from portfolio energy systems or efficiency measures in an amount that is:

(a) For calendar years 2005 and 2006, not less than 6 percent of the total amount of electricity sold by the provider to its retail customers in this State during that calendar year.

(b) For calendar years 2007 and 2008, not less than 9 percent of the total amount of electricity sold by the provider to its retail customers in this State during that calendar year.

(c) For calendar years 2009 and 2010, not less than 12 percent of the total amount of electricity sold by the provider to its retail customers in this State during that calendar year.

(d) For calendar years 2011 and 2012, not less than 15 percent of the total amount of electricity sold by the provider to its retail customers in this State during that calendar year.

(e) For calendar years 2013 and 2014, not less than 18 percent of the total amount of electricity sold by the provider to its retail customers in this State during that calendar year.

(f) For calendar years 2015 through 2019, inclusive, not less than 20 percent of the total amount of electricity sold by the provider to its retail customers in this State during that calendar year.

(g) For calendar year 2020, not less than 22 percent of the total amount of electricity sold by the provider to its retail customers in this State during that calendar year.

(h) For calendar year 2021, not less than 24 percent of the total amount of electricity sold by the provider to its retail customers in this State during that calendar year.

(i) For calendar years 2022 and 2023, not less than 29 percent of the total amount of electricity sold by the provider to its retail customers in this State during that calendar year.

(j) For calendar years 2024 through 2026, inclusive, not less than 34 percent of the total amount of electricity sold by the provider to its retail customers in this State during that calendar year.

(k) For calendar years 2027 through 2029, inclusive, not less than 42 percent of the total amount of electricity sold by the provider to its retail customers in this State during that calendar year.

(l) For calendar year 2030 and for each calendar year thereafter, not less than 50 percent of the total amount of electricity sold by the provider to its retail customers in this State during that calendar year.

2. In addition to the requirements set forth in subsection 1, the portfolio standard for each provider must require that:

(a) Of the total amount of electricity that the provider is required to generate, acquire or save from portfolio energy systems or efficiency measures:

(1) During calendar years 2013 and 2014, not more than 25 percent of that amount may be based on energy efficiency measures;

(2) During each calendar year 2015 to 2019, inclusive, not more than 20 percent of that amount may be based on energy efficiency measures;

(3) During each calendar year 2020 to 2024, inclusive, not more than 10 percent of that amount may be based on energy efficiency measures; and

(4) For calendar year 2025 and each calendar year thereafter, no portion of that amount may be based on energy efficiency measures.

Ê If the provider intends to use energy efficiency measures to comply with its portfolio standard during any calendar year, of the total amount of electricity saved from energy efficiency measures for which the provider seeks to obtain portfolio energy credits pursuant to this paragraph, at least 50 percent of that amount must be saved from energy efficiency measures installed at service locations of residential customers of the provider, unless a different percentage is approved by the Commission.

(b) If the provider acquires or saves electricity from a portfolio energy system or efficiency measure pursuant to a renewable energy contract or energy efficiency contract with another party:

(1) The term of the contract must be not less than 10 years, unless the other party agrees to a contract with a shorter term; and

(2) The terms and conditions of the contract must be just and reasonable, as determined by the Commission. If the provider is a utility provider and the Commission approves the terms and conditions of the contract between the utility provider and the other party, the contract and its terms and conditions shall be deemed to be a prudent investment and the utility provider may recover all just and reasonable costs associated with the contract.

3. If, for the benefit of one or more retail customers in this State, the provider has paid for or directly reimbursed, in whole or in part, the costs of the acquisition or installation of a solar energy system which qualifies as a renewable energy system and which reduces the consumption of electricity, the total reduction in the consumption of electricity during each calendar year that results from the solar energy system shall be deemed to be electricity that the provider generated or acquired from a renewable energy system for the purposes of complying with its portfolio standard.

4. The Commission shall adopt regulations that establish a system of portfolio energy credits that may be used by a provider to comply with its portfolio standard.

5. Except as otherwise provided in subsection 6, each provider shall comply with its portfolio standard during each calendar year.

6. If, for any calendar year, a provider is unable to comply with its portfolio standard through the generation of electricity from its own renewable energy systems or, if applicable, through the use of portfolio energy credits, the provider shall take actions to acquire or save electricity pursuant to one or more renewable energy contracts or energy efficiency contracts. The Commission shall exempt the provider, for that calendar year, from the remaining requirements of its portfolio standard or from any appropriate portion thereof, as determined by the Commission if the Commission determines that:

(a) For the calendar year, there is not or will not be a sufficient supply of electricity or a sufficient amount of energy savings made available to the provider pursuant to renewable energy contracts and energy efficiency contracts with just and reasonable terms and conditions, after the provider has made reasonable efforts to secure such contracts; or

(b) The provider is unable to obtain a sufficient supply of electricity to comply with the portfolio standard because of a delay in the completion of the construction of a renewable energy system, or the underperformance of an existing renewable energy system, that is under the control of a person or entity other than the provider and that was intended to provide such electricity.

7. The Commission shall adopt regulations that establish:

(a) Standards for the determination of just and reasonable terms and conditions for the renewable energy contracts and energy efficiency contracts that a provider must enter into to comply with its portfolio standard.

(b) Methods to classify the financial impact of each long-term renewable energy contract and energy efficiency contract as an additional imputed debt of a utility provider. The regulations must allow the utility provider to propose an amount to be added to the cost of the contract, at the time the contract is approved by the Commission, equal to a compensating component in the capital structure of the utility provider. In evaluating any proposal made by a utility provider pursuant to this paragraph, the Commission shall consider the effect that the proposal will have on the rates paid by the retail customers of the utility provider.

8. For the purposes of subsection 1, for calendar year 2019 and for each calendar year thereafter, the total amount of electricity sold by a provider to its retail customers in this State during a calendar year does not include the amount of electricity sold by the provider as part of a program of optional pricing authorized by the Commission pursuant to which the provider either transfers portfolio energy credits to the customer or retires portfolio energy credits above the renewable energy portfolio standard on behalf of the customer.

9. For the purposes of subsection 1, for calendar year 2019 and for each calendar year thereafter, the total amount of electricity sold by the following providers to their retail customers in this State during a calendar year does not include the first 1,000,000 megawatt-hours of electricity sold by the provider to such customers during that calendar year:

(a) A rural electric cooperative established pursuant to chapter 81 of NRS that is in existence on April 22, 2019.

(b) A general improvement district established pursuant to chapter 318 of NRS that is in existence on April 22, 2019.

(d) A cooperative association, nonprofit corporation, nonprofit association or provider of electric service which is declared to be a public utility pursuant to NRS 704.673, which provides service only to its members and which is in existence and providing retail electric service on April 22, 2019.

Ê Such providers do not earn energy portfolio credits under the system of energy portfolio credits established by the Commission pursuant to subsection 4 for electricity generated or acquired by the provider from renewable energy systems to make the first 1,000,000 megawatt-hours of sales to retail customers within this State within a calendar year. The provisions of this subsection do not apply to any successor in interest of such a provider.

10. A provider listed in subsection 9 shall, during any calendar year in which the total amount of electricity sold by the provider to its retail customers in this State during that calendar year is less than 1,000,000 megawatt-hours, submit to the Commission, after the end of the calendar year and within the time prescribed by the Commission, a report of the total amount of electricity sold to its retail customers in this State for that calendar year. The providers described in paragraphs (a) and (d) of subsection 9 shall submit the report required by this subsection to the Commission as part of the annual report filed by such a provider as required by NRS 703.191.

11. As used in this section:

(a) “Energy efficiency contract” means a contract to attain energy savings from one or more energy efficiency measures owned, operated or controlled by other parties.

(b) “Renewable energy contract” means a contract to acquire electricity from one or more renewable energy systems owned, operated or controlled by other parties.

(c) “Terms and conditions” includes, without limitation, the price that a provider must pay to acquire electricity pursuant to a renewable energy contract or to attain energy savings pursuant to an energy efficiency contract.

(Added to NRS by 2001, 2528; A 2003, 1866, 1876; 2005, 22nd Special Session, 82; 2007, 414; 2009, 996, 1399; 2013, 2318; 2019, 18)

NRS 704.78213 Establishment of portfolio standard for providers of new electric resources; requirements; treatment of certain solar energy systems.

1. If the Commission issues an order approving an application that is filed pursuant to NRS 704B.310 or a request that is filed pursuant to NRS 704B.325 regarding a provider of new electric resources and an eligible customer, the Commission must establish in the order a portfolio standard applicable to the electricity sold by the provider of new electric resources to the eligible customer in accordance with the order. The portfolio standard must require the provider of new electric resources to generate, acquire or save electricity from portfolio energy systems or efficiency measures in the amounts described in the portfolio standard set forth in NRS 704.7821.

2. Except as otherwise provided in this subsection, of the total amount of electricity that a provider of new electric resources is required to generate, acquire or save from portfolio energy systems or efficiency measures during each calendar year, not more than 25 percent of that amount may be based on energy efficiency measures. The provisions of this subsection apply to an order of the Commission approving an application that is filed pursuant to NRS 704B.310 or a request filed pursuant to NRS 704B.325 regarding a provider of new electric resources and an eligible customer only:

(a) If the order was issued by the Commission before January 1, 2019; and

(b) For calendar years before 2025.

3. If, for the benefit of one or more eligible customers, the eligible customer of a provider of new electric resources has paid for or directly reimbursed, in whole or in part, the costs of the acquisition or installation of a solar energy system which qualifies as a renewable energy system and which reduces the consumption of electricity, the total reduction in the consumption of electricity during each calendar year that results from the solar energy system shall be deemed to be electricity that the provider of new electric resources generated or acquired from a renewable energy system for the purposes of complying with its portfolio standard.

4. As used in this section:

(a) “Eligible customer” has the meaning ascribed to it in NRS 704B.080.

(b) “Provider of new electric resources” has the meaning ascribed to it in NRS 704B.130.

(Added to NRS by 2009, 992; A 2019, 21)

NRS 704.78215 Calculation of portfolio energy credits.

1. Except as otherwise provided in this section or by specific statute, a provider is entitled to one portfolio energy credit for each kilowatt-hour of electricity that the provider generates, acquires or saves from a portfolio energy system or efficiency measure.

2. The Commission may adopt regulations that give a provider more than one portfolio energy credit for each kilowatt-hour of electricity saved by the provider during its peak load period from energy efficiency measures.

3. Except as otherwise provided in this subsection, for portfolio energy systems placed into operation on or after January 1, 2016, the amount of electricity generated or acquired from a portfolio energy system does not include the amount of any electricity used by the portfolio energy system for its basic operations that reduce the amount of renewable energy delivered to the transmission grid for distribution and sale to customers of the provider. The provisions of this subsection do not apply to a portfolio energy system placed into operation on or after January 1, 2016, if a provider entered into a contract for the purchase of electricity generated by the portfolio energy system on or before December 31, 2012. For the purposes of this subsection, the amount of any electricity used by a portfolio energy system for its basic operations:

(a) Except as otherwise provided in paragraph (b), includes electricity used for the heating, lighting, air-conditioning and equipment of a building located on the site of the portfolio energy system, and for operating any other equipment located on such site.

(b) Does not include the electricity used by a portfolio energy system that generates electricity from geothermal energy for the extraction and transportation of geothermal brine or used to pump or compress geothermal brine.

(Added to NRS by 2005, 22nd Special Session, 80; A 2013, 2320, 3503)

NRS 704.7822 Calculation of electricity generated or acquired from certain solar photovoltaic systems. For the purpose of complying with a portfolio standard established pursuant to NRS 704.7821 or 704.78213, a provider shall be deemed to have generated or acquired 2.4 kilowatt-hours of electricity from a renewable energy system for each 1.0 kilowatt-hour of actual electricity generated or acquired from a solar photovoltaic system, if:

1. The system is installed on the premises of a retail customer;

2. The system was placed into operation on or before December 31, 2015; and

3. On an annual basis, at least 50 percent of the electricity generated by the system is utilized by the retail customer on that premises.

(Added to NRS by 2003, 805; A 2009, 999; 2013, 2321)

1. Except as otherwise provided in subsection 2, any electricity generated by a provider using any system that involves drawing or creating electricity from tires must be deemed to have not come from a renewable energy system for the purpose of complying with a portfolio standard established pursuant to NRS 704.7821 or 704.78213.

2. For the purpose of complying with a portfolio standard established pursuant to NRS 704.7821 or 704.78213, a provider shall be deemed to have generated or acquired 0.7 kilowatt-hours of electricity from a renewable energy system for each 1.0 kilowatt-hour of actual electricity generated or acquired from a system that utilizes a reverse polymerization process, if:

(a) The system is installed on the premises of a retail customer; and

(b) On an annual basis, at least 50 percent of the electricity generated by the system is utilized by the retail customer on that premises.

3. As used in this section:

(a) “Reverse polymerization process” means a process that generates electricity from a tire that:

(1) Uses microwave reduction; and

(2) Does not involve combustion of the tire.

(b) “Tire” includes any tire for any vehicle or device in, upon or by which any person or property is or may be transported or drawn upon land.

(Added to NRS by 2003, 805; A 2009, 999)

NRS 704.7825 Reports; exceptions; regulations regarding additional reports.

1. Except as otherwise provided in subsection 6, each provider of electric service shall submit to the Commission an annual report that provides information relating to the actions taken by the provider to comply with its portfolio standard.

2. Each provider shall submit the annual report to the Commission after the end of each calendar year and within the time prescribed by the Commission. The report must be submitted in a format approved by the Commission.

3. The Commission may adopt regulations that require providers to submit to the Commission additional reports during each calendar year.

4. Each annual report and each additional report must include clear and concise information that sets forth:

(a) The amount of electricity which the provider generated, acquired or saved from portfolio energy systems or efficiency measures during the reporting period and, if applicable, the amount of portfolio energy credits that the provider acquired, sold or traded during the reporting period to comply with its portfolio standard;

(b) The capacity of each renewable energy system owned, operated or controlled by the provider, the total amount of electricity generated by each such system during the reporting period and the percentage of that total amount which was generated directly from renewable energy;

(c) Whether, during the reporting period, the provider began construction on, acquired or placed into operation any renewable energy system and, if so, the date of any such event;

(d) Whether, during the reporting period, the provider participated in the acquisition or installation of any energy efficiency measures and, if so, the date of any such event; and

(e) Any other information that the Commission by regulation may deem relevant.

5. Based on the reports submitted by providers pursuant to this section, the Commission shall compile information that sets forth whether any provider has used energy efficiency measures to comply with its portfolio standard and, if so, the type of energy efficiency measures used and the amount of energy savings attributable to each such energy efficiency measure. The Commission shall report such information to:

(a) The Legislature, not later than the first day of each regular session; and

(b) The Legislative Commission, if requested by the Chair of the Commission.

6. The provisions of this section do not apply to:

(a) A provider of electric service that is subject to NRS 704.787; or

(b) A provider of electric service that is listed in subsection 9 of NRS 704.7821 during any calendar year in which the total amount of electricity sold by the provider to its retail customers in this State during that calendar year is less than 1,000,000 megawatt-hours.

(Added to NRS by 2001, 2529; A 2005, 22nd Special Session, 85; 2019, 22)

NRS 704.78253 Reports by certain providers not subject to jurisdiction of Commission. A provider of electric service that is subject to NRS 704.787 shall, on or before July 1 of each year, submit to the Director of the Office of Energy appointed pursuant to NRS 701.150 a report that contains the information described in subsection 4 of NRS 704.7825.

(Added to NRS by 2019, 12)

NRS 704.7826 Certain providers not subject to jurisdiction of Commission. Notwithstanding any provision of law to the contrary, a provider of electric service that is subject to NRS 704.787 is not subject to the jurisdiction of the Commission.

(Added to NRS by 2019, 12)

NRS 704.7827 Temporary renewable energy development program; regulations.

1. The Commission may adopt regulations to establish a temporary renewable energy development program that is designed to assist with the completion of new renewable energy projects.

2. The Commission may require a utility provider to participate in a temporary renewable energy development program.

3. If the Commission adopts regulations establishing a temporary renewable energy development program, the program may include, without limitation:

(a) The establishment of a private trust administered by an independent trustee; and

(b) The payment of money from the private trust to carry out the terms and conditions of renewable energy contracts approved by the Commission between a utility provider and one or more new renewable energy projects.

4. If a utility provider is participating in a temporary renewable energy development program, the utility provider may apply to the Commission for authority to close the program to new renewable energy projects if the utility provider has achieved an investment grade credit rating as determined by either Moody’s Investors Service, Inc., or Standard and Poor’s Rating Services and has maintained that credit rating for 24 consecutive months.

5. The Commission may grant an application to close a temporary renewable energy development program only after finding that the creditworthiness of the utility provider is sufficiently restored so that closure of the program to new renewable energy projects is in the public interest.

6. An order issued by the Commission closing a temporary renewable energy development program to new renewable energy projects is not effective as to any new renewable energy project which has previously been accepted into the program and which is receiving money from a private trust established under the program until the earlier of:

(a) The expiration or termination of the original renewable energy contract approved by the Commission between the utility provider and the new renewable energy project; or

(b) The original financing, including debt, equity, or both debt and equity, as applicable, entered into by the new renewable energy project upon completion of construction of the project has been fully satisfied pursuant to its original terms.

7. As used in this section, “new renewable energy project” means a project to construct a renewable energy system if:

(a) The project is associated with one or more renewable energy contracts approved by the Commission pursuant to NRS 704.7821; and

(b) Construction on the project commenced on or after July 1, 2001.

(Added to NRS by 2005, 22nd Special Session, 81)

NRS 704.7828 Regulations; authority to carry forward or sell excess electricity; enforcement; administrative fines.

1. The Commission shall adopt regulations to carry out and enforce the provisions of NRS 704.7801 to 704.7828, inclusive. The regulations adopted by the Commission may include any enforcement mechanisms which are necessary and reasonable to ensure that each provider of electric service complies with its portfolio standard. Such enforcement mechanisms may include, without limitation, the imposition of administrative fines.

2. If a provider exceeds the portfolio standard for any calendar year:

(a) The Commission shall authorize the provider to carry forward to subsequent calendar years for the purpose of complying with the portfolio standard for those subsequent calendar years any excess kilowatt-hours of electricity that the provider generates, acquires or saves from portfolio energy systems or efficiency measures;

(b) By more than 10 percent but less than 25 percent of the amount of portfolio energy credits necessary to comply with its portfolio standard for the subsequent calendar year, the provider may sell any portfolio energy credits which are in excess of 10 percent of the amount of portfolio energy credits necessary to comply with its portfolio standard for the subsequent calendar year; and

(c) By 25 percent or more of the amount of portfolio energy credits necessary to comply with its portfolio standard for the subsequent calendar year, the provider shall use reasonable efforts to sell any portfolio energy credits which are in excess of 25 percent of the amount of portfolio energy credits necessary to comply with its portfolio standard for the subsequent calendar year.

Ê Any money received by a provider from the sale of portfolio energy credits pursuant to paragraphs (b) and (c) must be credited against the provider’s costs for purchased fuel and purchased power pursuant to NRS 704.187 in the same calendar year in which the money is received, less any verified administrative costs incurred by the provider to make the sale, including any costs incurred to qualify the portfolio energy credits for potential sale regardless of whether such sales are made.

3. If a provider does not comply with its portfolio standard for any calendar year and the Commission has not exempted the provider from the requirements of its portfolio standard pursuant to NRS 704.7821 or 704.78213, the Commission shall require the provider to carry forward to subsequent calendar years the amount of the deficiency in kilowatt-hours of electricity that the provider does not generate, acquire or save from portfolio energy systems or efficiency measures during a calendar year in violation of its portfolio standard.

4. If the Commission has not exempted a provider from the requirements of its portfolio standard pursuant to NRS 704.7821 or 704.78213 and the provider does not comply with its portfolio standard:

(a) During any calendar year after 2018 but before 2030, and did not comply with its portfolio standard for the 2 immediately preceding calendar years; or

(b) During calendar year 2030 or any subsequent calendar year,

Ê the Commission may impose an administrative fine against the provider or take other administrative action against the provider, or do both.

5. Except as otherwise provided in subsections 4 and 6, the Commission may impose an administrative fine against a provider based upon:

(a) Each kilowatt-hour of electricity that the provider does not generate, acquire or save from portfolio energy systems or efficiency measures during a calendar year in violation of its portfolio standard; or

(b) Any other reasonable formula adopted by the Commission.

6. If a provider sells any portfolio energy credits pursuant to paragraph (b) or (c) of subsection 2 in any calendar year in which the Commission determines that the provider did not comply with its portfolio standard, the Commission shall not make any adjustment to the provider’s expenses or revenues and shall not impose on the provider any administrative fine authorized by this section for that calendar year if:

(a) In the calendar year immediately preceding the calendar year in which the portfolio energy credits were sold, the amount of portfolio energy credits held by the provider and attributable to electricity generated, acquired or saved from portfolio energy systems or efficiency measures by the provider exceeded the amount of portfolio energy credits necessary to comply with the provider’s portfolio standard by more than 10 percent;

(b) The price received for any portfolio energy credits sold by the provider was not lower than the most recent value of portfolio energy credits, net of any energy value if the price was for bundled energy and credits, as determined by reference to the last long-term renewable purchased power agreements approved by the Commission in the most recent proceeding that included such agreements; and

(c) The provider would have complied with the portfolio standard in the relevant year even after the sale of portfolio energy credits based on the load forecast of the provider at the time of the sale.

7. In the aggregate, the administrative fines imposed against a provider for all violations of its portfolio standard for a single calendar year must not exceed the amount which is necessary and reasonable to ensure that the provider complies with its portfolio standard, as determined by the Commission.

8. If the Commission imposes an administrative fine against a utility provider:

(a) The administrative fine is not a cost of service of the utility provider;

(b) The utility provider shall not include any portion of the administrative fine in any application for a rate adjustment or rate increase; and

(c) The Commission shall not allow the utility provider to recover any portion of the administrative fine from its retail customers.

9. All administrative fines imposed and collected pursuant to this section must be deposited in the State General Fund.

(Added to NRS by 2001, 2530; A 2005, 22nd Special Session, 85; 2009, 999; 2013, 2321; 2019, 23)

Energy Savings Goals

NRS 704.783 Definitions. As used in NRS 704.783 to 704.7836, inclusive, unless the context otherwise requires, the words and terms defined in NRS 704.7831 to 704.7834, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2017, 4291; A 2021, 3800)

NRS 704.7831 “Cost effective” defined. “Cost effective” means that an energy efficiency plan has a benefit-cost ratio of 1.0 or greater as measured by the cost-effectiveness test selected by the Commission, which test must account for the nonenergy benefits of the energy efficiency plan.

(Added to NRS by 2017, 4291)

NRS 704.7832 “Electric utility” defined. “Electric utility” has the meaning ascribed to it in NRS 704.187.

(Added to NRS by 2017, 4292)

NRS 704.7833 “Energy efficiency program” defined.

1. “Energy efficiency program” means a program designed, intended or used to improve energy efficiency by reducing the energy consumption by a retail customer of an electric utility.

2. The term includes, without limitation, a demand-side response program or load-limiting program that shifts the consumption of energy by a retail customer from one period to another period.

(Added to NRS by 2017, 4292)

NRS 704.7834 “Energy savings” defined. “Energy savings” means the gross energy savings resulting from energy efficiency measures adopted through the implementation of an energy efficiency program, but does not include net energy savings resulting from energy efficiency measures adopted by retail customers of the electric utility which are not attributable to participation in an energy efficiency program.

(Added to NRS by 2017, 4292)

NRS 704.78343 “Historically underserved community” defined.

1. “Historically underserved community” means:

(a) A census tract:

(1) Designated as a qualified census tract by the Secretary of Housing and Urban Development pursuant to 26 U.S.C. § 42(d)(5)(B)(ii); or

(2) In which, in the immediately preceding census, at least 20 percent of households were not proficient in the English language;

(b) A public school in this State:

(1) In which 75 percent or more of the enrolled pupils in the school are eligible for free or reduced-price lunches pursuant to 42 U.S.C. §§ 1751 et seq.; or

(2) That participates in universal meal service in high poverty areas pursuant to Section 104 of the Healthy, Hunger-Free Kids Act of 2010, Public Law 111-296; or

2. As used in this section:

(a) “Block” means the smallest geographical unit whose boundaries were designated by the Bureau of the Census of the United States Department of Commerce in its topographically integrated geographic encoding and referencing system.

(b) “Block group” means a combination of blocks whose numbers begin with the same digit.

(Added to NRS by 2021, 3781)

NRS 704.78347 “Low-income household” defined. “Low-income household” means a household, which may include one or more persons, with a median household income of not more than 80 percent of the area median household income, based on the guidelines published by the United States Department of Housing and Urban Development.

(Added to NRS by 2021, 3781)

NRS 704.7835 Legislative findings and declarations. The Legislature hereby finds and declares that:

1. Energy is essential to the economy of this State and to the health, safety and welfare of the residents of this State.

2. The State has a responsibility to encourage the maintenance of a reliable and economical supply of energy at a level which is consistent with the protection of the quality of the environment of this State.

3. The State and the public have an interest in encouraging electric utilities to promote and take actions toward the conservation of energy and the reduction of the consumption of energy by consumers in this State.

4. The State has a responsibility to encourage the development of a wide range of standards, goals and programs to reduce energy waste by consumers in this State.

5. Planning for energy conservation and the future energy needs of this State should include consideration of state, regional and local plans for land use, urban expansion, transportation systems, environmental protection and economic development.

6. It is in the interest of this State and the residents of this State that the energy efficiency plans and programs of electric utilities should maximize the implementation of cost-effective, achievable energy efficiency opportunities.

7. The reduction of the consumption of energy by consumers in this State conserves water, reduces carbon dioxide and other emissions and is essential to the economy of this State and to the health, safety and welfare of the residents of this State.

(Added to NRS by 2017, 4292)

1. The Commission shall establish by regulation for each electric utility goals for energy savings resulting from energy efficiency programs implemented by the electric utility each year, which must be included in the resource plan filed by the electric utility pursuant to NRS 704.741.

2. The Commission may:

(a) Modify a goal for energy savings it has previously established for an electric utility.

(b) Upon receipt of a petition submitted by an electric utility, temporarily lower a goal for energy savings it has previously established for the electric utility if the electric utility demonstrates that economic reasons which are not reasonably within the control of the electric utility will prevent the electric utility from meeting the goal for energy savings established pursuant to subsection 1.

3. Upon establishment or modification by the Commission of a goal for energy savings for an electric utility pursuant to this section, the affected electric utility may file an amendment to its most recent resource plan filed pursuant to NRS 704.741 to incorporate the goal for energy savings into the resource plan.

4. Each electric utility shall develop and include in its most recent resource plan filed pursuant to NRS 704.741 an energy efficiency plan that:

(a) Is designed to meet or exceed the goals for energy savings established by the Commission pursuant to this section;

(b) Includes one or more energy efficiency programs; and

5. In approving an energy efficiency plan developed by an electric utility to meet the goals for energy savings established by the Commission pursuant to this section, the Commission shall approve an energy efficiency plan that is:

(a) Designed to meet or exceed the goals for energy savings established by the Commission pursuant to this section; and

(b) Cost effective.

6. The Commission may approve an energy efficiency plan submitted pursuant to NRS 704.741 that consists of energy efficiency and conservation programs that are not cost effective if the Commission determines that the energy efficiency plan as a whole is cost effective.

7. Unless the Commission determines that it is not cost effective, any energy efficiency plan approved by the Commission must provide that not less than 10 percent of the total expenditures related to energy efficiency programs must be spent on energy efficiency measures for customers of the electric utility in low-income households and residential customers and public schools in historically underserved communities, through both targeted programs and programs directed at residential customers and public schools in general. For the purposes of this subsection, programs that can offer variable incentive levels must offer higher incentive levels for low-income households.

(Added to NRS by 2017, 4292; A 2021, 3800)

Energy Efficiency and Conservation Programs

NRS 704.785 Adoption of regulations authorizing electric utility to recover amount based on effects of implementing energy efficiency and conservation programs.

1. The Commission shall adopt regulations authorizing an electric utility to recover an amount based on the measurable and verifiable effects of the implementation by the electric utility of energy efficiency and conservation programs approved by the Commission, which:

(a) Must include:

(1) The costs reasonably incurred by the electric utility in implementing and administering the energy efficiency and conservation programs; and

(2) Any financial disincentives relating to other supply alternatives caused or created by the reasonable implementation of the energy efficiency and conservation programs; and

(b) May, if the Commission determines that it will serve the public interest by removing financial disincentives which discourage an electric utility from implementing or promoting the participation of the customers of the electric utility in energy efficiency and conservation programs, include a rate adjustment mechanism to ensure that the revenue per customer authorized in a general rate application is recovered without regard to the difference in the quantity of electricity actually sold by the electric utility subsequent to the date on which the rates take effect. A rate adjustment mechanism adopted pursuant to this paragraph may apply to one or more rate classes.

2. When considering whether to approve an energy efficiency or conservation program proposed by an electric utility as part of a plan filed pursuant to NRS 704.741, the Commission shall consider the effect of any recovery by the electric utility pursuant to this section on the rates of the customers of the electric utility.

3. As used in this section, “electric utility” has the meaning ascribed to it in NRS 704.187.

(Added to NRS by 2009, 1391; A 2017, 4293)

Expanded Solar Access Program

1. An electric utility shall offer an expanded solar access program to eligible customers within its service area in accordance with the provisions of this section. The size of the expanded solar access program shall not exceed:

(a) For an electric utility that primarily serves densely populated counties, a total capacity of 240,000 megawatt-hours; and

(b) For an electric utility that primarily serves less densely populated counties, a total capacity of 160,000 megawatt-hours.

2. The Commission shall adopt regulations establishing standards for the expanded solar access program. The regulations must:

(a) Advance the development of solar energy resources in this State, including, without limitation, utility scale and community-based solar resources;

(b) Provide for the expanded solar access program to include a reasonable mixture of community-based solar resources and utility scale solar resources;

(d) Provide for solar workforce innovations and opportunity programs related to the construction, maintenance and operation of solar resources, including opportunities for workforce training, apprenticeships or other job opportunities at community-based solar resources;

(e) Provide for equitably broadened access to solar energy;

(f) Provide for the creation of an expanded solar access program rate for participating eligible customers that:

(1) Is based, among other factors, on a new utility scale solar resource accepted by the Commission in an order issued pursuant to NRS 704.751, as approved by the Commission;

(2) Is a fixed rate that replaces the base tariff energy rate and deferred accounting adjustment charged by the electric utility for participating customers and which is adjusted in accordance with the Commission’s quarterly calculations;

(3) For low-income eligible customers, provides for a lower rate, the cost of which must be allocated across all of the rate classes of the utility;

(4) For eligible customers who are not low-income eligible customers, provides stability and predictability and the opportunity for a lower rate; and

(5) Includes for all participating customers any other applicable charges including, without limitation, the universal energy charge, franchise fees, the renewable energy program rate and base tariff general rates, except that the Commission may reduce one or more of these charges for low-income eligible customers to ensure that such customers receive a lower rate pursuant to subparagraph (3);

(g) Establish a process for identifying noncontiguous geographic locations for community-based solar resources which, to the extent practicable, must be located in communities with higher levels of low-income eligible customers;

(h) Provide for the use of at least one utility scale solar resource and at least three but not more than ten community-based solar resources within the service territory of the electric utility;

(i) Require not less than 50 percent of the employees engaged or anticipated to be engaged in construction of community-based solar resources to be residents of this State, which residency may be demonstrated, without limitation, by a notarized statement of the employee that he or she is a resident of this State;

(j) Provide for a mechanism for the host sites of community-based solar resources to receive compensation from the utility for the use of such site;

(k) Provide for the use of a combination of new and other renewable energy facilities, which may be either utility scale or community-based solar resources, that were submitted to the Commission for approval after May 1, 2018, and that were not placed into operation before April 1, 2020;

(l) Provide for an application and selection process for eligible customers to participate in the program;

(m) Ensure reasonable and equitable participation by eligible customers within the service area of the electric utility;

(n) Ensure that eligible customers are able to participate in the program regardless of whether the customer owns, rents or leases the customer’s premises;

(o) Require that:

(1) Twenty-five percent of the capacity of the program, as provided in subsection 1, be reserved for low-income eligible customers;

(2) Twenty-five percent of the capacity of the program, as provided in subsection 1, be reserved for disadvantaged businesses and nonprofit organizations; and

(3) Fifty percent of the capacity of the program, as provided in subsection 1, be reserved for eligible customers who are fully bundled residential customers who own, rent or lease their residence and who certify in a statement which satisfies the requirements established by the Commission pursuant to paragraph (p) that they cannot install solar resources on their premises;

(p) Establish the requirements for a fully bundled residential customer to certify that he or she cannot install solar resources on his or her premises; and

(q) Establish standards for the form, content and manner of submission of an electric utility’s plan for implementing the expanded solar access program.

3. An electric utility shall file a plan for implementing the expanded solar access program in accordance with the regulations adopted by the Commission pursuant to subsection 2.

4. The Commission shall review the plan for the implementation of the expanded solar access program submitted pursuant to subsection 3 and issue an order approving, with or without modifications, or denying the plan within 210 days. The Commission may approve the plan if it finds that the proposed expanded solar access program complies with the regulations adopted by the Commission pursuant to subsection 2.

5. In administering the provisions of this section, the electric utility and the Commission shall establish as the preferred sites for utility scale development of solar energy resources pursuant to this section brownfield sites and land designated by the Secretary of the Interior as Solar Energy Zones and held by the Bureau of Land Management.

6. As used in this section:

(a) “Brownfield site” has the meaning ascribed to it in 42 U.S.C. § 9601.

(b) “Community-based solar resource” means a solar resource which has a nameplate capacity of not more than 1 megawatt and is owned and operated by the electric utility and connected to and used as a component of the distribution system of the electric utility.

(1) Fifty-one percent or more of the owners are women, veterans, members of a racial or ethnic minority group or otherwise part of a traditionally underrepresented group; and

(2) None of the owners has a net worth of more than $250,000, not including the equity held in the business or in a primary residence.

(d) “Electric utility” has the meaning ascribed to it in NRS 704.187.

(e) “Electric utility that primarily serves densely populated counties” has the meaning ascribed to it in NRS 704.110.

(f) “Electric utility that primarily serves less densely populated counties” has the meaning ascribed to it in NRS 704.110.

(g) “Eligible customer” means:

(1) A fully bundled general service customer; or

(2) A fully bundled residential customer of a utility.

(h) “Fully bundled customer” means a customer of an electric utility who receives energy, transmission, distribution and ancillary services from an electric utility.

(i) “Fully bundled general service customer” means a fully bundled customer who is a nonresidential customer with a kilowatt-hour consumption that does not exceed 10,000 kilowatt-hours per month.

(j) “Fully bundled residential customer” means a fully bundled customer who is a single-family or a multifamily residential customer.

(k) “Low-income eligible customer” means a natural person or household who is a fully bundled residential customer of a utility and has an income of not more than 80 percent of the area median income based on the guidelines published by the United States Department of Housing and Urban Development.

(l) “Solar Energy Zone” means an area identified and designated by the Bureau of Land Management as an area well-suited for utility-scale production of solar energy, and where the Bureau of Land Management will prioritize solar energy and associated transmission infrastructure development.

(m) “Solar resource” means a facility or energy system that uses a solar photovoltaic device to generate electricity.

(n) “Solar workforce innovations and opportunity program” means a workforce education, training and job placement program developed by the Department of Employment, Training and Rehabilitation and its appropriate regional industry or sector partnership, if applicable, in conjunction with potential employers and community stakeholders.

(o) “Utility scale solar resource” means a solar resource which has a nameplate capacity of at least 50 megawatts and is interconnected directly to a substation of the electric utility through a generation step-up transformer.

(Added to NRS by 2019, 2311; A 2023, 355)

Transportation Electrification

NRS 704.7867 Plan to accelerate transportation electrification; stakeholder engagement meetings; filing of schedules; participation to be offered on a nondiscriminatory basis; regulations.

1. An electric utility in this State shall file with the Commission, as part of the distributed resources plan required to be submitted pursuant to NRS 704.741, a plan to accelerate transportation electrification in this State. Two or more electric utilities that are affiliated through common ownership and that have an interconnected system for the transmission of electricity shall submit a joint plan.

2. A plan submitted pursuant to subsection 1 may include:

(a) Investments or incentives to facilitate the deployment of charging infrastructure and associated electrical equipment which supports transportation electrification across all customer classes including, without limitation, investments or incentives for residential charging infrastructure at single-family homes and multi-unit dwellings for both shared and assigned parking spaces;

(b) Investments or incentives to facilitate the electrification of public transit and publicly owned vehicle fleets;

(c) Investments or incentives to increase access to the use of electricity as a transportation fuel in historically underserved communities;

(d) Rate designs, programs or management systems that encourage the charging of vehicles in a manner that supports the operation and optimal integration of transportation electrification into the electric grid, including, without limitation, proposed schedules necessary to implement the rate designs or programs; and

(e) Customer education and culturally competent and linguistically appropriate outreach programs that increase awareness of investments, incentives, rate designs and programs of the type listed in paragraphs (a) to (d), inclusive, and of the benefits of transportation electrification.

3. During the 9 months immediately before an electric utility files its first plan pursuant to subsection 1 and during the 12 months immediately before an electric utility files any subsequent plan pursuant to subsection 1, the electric utility shall conduct at least one stakeholder engagement meeting each calendar quarter to discuss the development of the plan and to solicit comments and gather ideas for improvements or additions to the plan which support transportation electrification. Each stakeholder engagement meeting must be open to participation by the Regulatory Operations Staff of the Commission, personnel from the Bureau of Consumer Protection in the Office of the Attorney General and any other interested person. Each plan filed pursuant to subsection 1 must include a summary of the stakeholder engagement meetings conducted in the 9- or 12-month period, as applicable, immediately preceding the filing of the plan, which must include, without limitation, summaries of the comments and ideas provided by the participants.

4. Not more than 60 days after the issuance of an order by the Commission pursuant to NRS 704.751 approving or modifying a plan submitted pursuant to subsection 1, an electric utility which supplies electricity in this State shall file with the Commission any schedules necessary to implement the rate designs and programs included in the plan.

5. To the extent that a plan submitted pursuant to subsection 1 includes programs in which customers may participate, eligibility for participation by customers in such programs must be offered by the electric utility on a nondiscriminatory basis to both bundled retail customers and eligible customers, as defined in NRS 704B.080, who purchase or plan to purchase electricity from a provider of new electric resources, as defined in NRS 704B.130.

6. The Commission shall adopt regulations necessary to carry out the provisions of this section. The regulations adopted pursuant to this section may require an annual review of the progress and budgets of an approved plan submitted pursuant to this section.

7. As used in this section:

(b) “Block group” means a combination of blocks whose numbers begin with the same digit.

(d) “Electric utility” has the meaning ascribed to it in NRS 704.187.

(e) “Historically underserved community” means:

(1) A census tract:

(I) Designated as a qualified census tract by the Secretary of Housing and Urban Development pursuant to 26 U.S.C. § 42(d)(5)(B)(ii); or

(II) In which, in the immediately preceding census, at least 20 percent of households were not proficient in the English language;

(2) A public school in this State:

(I) In which 75 percent or more of the enrolled pupils in the school are eligible for free or reduced-price lunches pursuant to 42 U.S.C. §§ 1751 et seq.; or

(II) That participates in universal meal service in high poverty areas pursuant to Section 104 of the Healthy, Hunger-Free Kids Act of 2010, Public Law 111-296; or

(3) Qualified tribal land, as defined in NRS 370.0325.

(f) “Transportation electrification” means the use of electricity from external sources to power, wholly or in part, passenger vehicles, trucks, buses, trains, boats or other equipment that transports goods or people.

(Added to NRS by 2021, 3782)

Colorado River Commission of Nevada

1. The Colorado River Commission of Nevada may, without being subject to the jurisdiction of the Public Utilities Commission of Nevada, sell electricity and provide transmission service or distribution service, or both, only to meet the existing and future requirements of:

(a) Any customer that the Colorado River Commission of Nevada on July 16, 1997, was serving or had a contract to serve.

(b) The Southern Nevada Water Authority and its member agencies for their water and wastewater operations.

(c) Except as otherwise provided in this paragraph and subsection 2, any customer that receives an allocation of capacity and associated firm energy from the Western Area Power Administration of the United States Department of Energy, and any customer that has had an annual peak load of at least 1 megawatt and receives an allocation of capacity and associated firm energy of at least 1 megawatt from the Colorado River Commission of Nevada, on or after October 1, 2017, from the resource pool of capacity and associated firm energy created pursuant to the Hoover Power Allocation Act of 2011, 43 U.S.C. §§ 619 et seq. The Colorado River Commission of Nevada shall not, by the sale of electricity or by the provision of any transmission service or distribution service pursuant to this paragraph, meet the demand for electricity of any customer that is located within the service area of an electric utility that primarily serves densely populated counties in excess of the allocation made to the customer from the resource pool of capacity and associated firm energy created pursuant to the Hoover Power Allocation Act of 2011, 43 U.S.C. §§ 619 et seq.

2. A customer that receives an allocation of capacity and firm energy as described in paragraph (c) of subsection 1 shall, if the customer is located within the service area of an electric utility that primarily serves densely populated counties, purchase from the electric utility any necessary transmission and distribution services and any balance of capacity and energy which is not purchased pursuant to paragraph (c) of subsection 1 or generated by the customer.

3. Except as otherwise provided in this subsection, a customer shall, for the capacity and firm energy received as described in paragraph (c) of subsection 1:

(a) Pay the universal energy charge imposed pursuant to NRS 702.160, unless the customer is the State, a political subdivision of the State or any other governmental entity or customer that is not required to pay the universal service charge pursuant to NRS 702.160.

(b) Pay any mandatory fees imposed by the Public Utilities Commission of Nevada pursuant to chapter 701B, 702 or 704 of NRS which are assessed against customers in the same rate class.

(c) If the customer is located within the service area of an electric utility that primarily serves densely populated counties, pay to the electric utility a fee or receive a credit from the electric utility which is approved by the Public Utilities Commission of Nevada pursuant to paragraph (b) of subsection 7 of NRS 704B.310 for the purpose of offsetting the customer’s load-share portion of any unrecovered balance in the deferred accounts of the electric utility for the costs for purchased fuel and purchased power and for which the electric utility seeks a rate adjustment pursuant to subsections 10 and 11 of NRS 704.110.

Ê The provisions of this subsection do not apply to a customer who receives an allocation described in paragraph (c) of subsection 1 in accordance with the State Plan for Economic Development developed pursuant to NRS 231.053.

4. The Public Utilities Commission of Nevada shall establish a just and reasonable tariff for:

(a) The electric distribution service authorized by paragraphs (a) and (b) of subsection 1 to be provided by an electric utility that primarily serves densely populated counties to the Colorado River Commission of Nevada for its sale of electricity or electric distribution services, or both, to a customer of the Colorado River Commission of Nevada pursuant to paragraph (a) or (b) of subsection 1.

(b) The electricity and electric distribution service authorized by paragraph (c) of subsection 1 and subsection 2 to be provided by an electric utility that primarily serves densely populated counties to the Colorado River Commission of Nevada for its sale of electricity or electric distribution services, or both, to a customer of the Colorado River Commission of Nevada pursuant to paragraph (c) of subsection 1.

5. An electric utility that primarily serves densely populated counties shall provide electric distribution service pursuant to the tariff required by subsection 4.

6. The Colorado River Commission of Nevada may adopt regulations to carry out the provisions of this section.

7. As used in this section:

(a) “Costs for purchased fuel and purchased power” has the meaning ascribed to it in paragraph (b) of subsection 6 of NRS 704.187.

(b) “Electric utility that primarily serves densely populated counties” means an electric utility that, with regard to the provision of electric service, derives more of its annual gross operating revenue in this State from customers located in counties whose population is 700,000 or more than it does from customers located in counties whose population is less than 700,000.

(Added to NRS by 2001, 1266; A 2009, 873; 2011, 1311; 2013, 452)

Capacity Allocation for New Commercial and Industrial Businesses

NRS 704.7871 Definitions. [Effective through the date on which the last contract entered into pursuant to the Program terminates, whether termination is by expiration of the terms or otherwise.] As used in NRS 704.7871 to 704.7882, inclusive, unless the context otherwise requires, the words and terms defined in NRS 704.7872, 704.7873 and 704.7874 have the meanings ascribed to them in those sections.

(Added to NRS by 2013, 3207; A 2014, 28th Special Session, 10)

NRS 704.7873 “Participant” defined. [Effective through the date on which the last contract entered into pursuant to the Program terminates, whether termination is by expiration of the terms or otherwise.] “Participant” means an applicant who has received initial approval and a letter of eligibility from the Office of Economic Development pursuant to NRS 704.7876 and who enters into a contract approved by the Commission pursuant to NRS 704.7877.

(Added to NRS by 2013, 3207; A 2014, 28th Special Session, 10)

NRS 704.7874 “Program” defined. [Effective through the date on which the last contract entered into pursuant to the Program terminates, whether termination is by expiration of the terms or otherwise.] “Program” means the Economic Development Electric Rate Rider Program established by NRS 704.7875 to carry out the provisions of NRS 704.7871 to 704.7882, inclusive.

(Added to NRS by 2013, 3207; A 2014, 28th Special Session, 10)

1. The Economic Development Electric Rate Rider Program is hereby established for the purpose of attracting new commercial and industrial businesses to this State. The Commission, in consultation with the Office of Economic Development, shall administer the Program.

2. Each electric utility in this State shall set aside an amount of capacity determined by the Commission for allocation to new customers pursuant to the Program, but the total amount of capacity that the Commission may require to be set aside by all electric utilities in this State pursuant to this subsection must not exceed 50 megawatts.

(Added to NRS by 2013, 3207; A 2014, 28th Special Session, 10)

1. A person who, in anticipation of the incentive provided pursuant to the Program, locates or intends to locate a new commercial or industrial business in this State may apply to the Office of Economic Development to participate in the Program.

2. An application to participate in the Program must be submitted on a form approved by the Office of Economic Development and must include:

(a) The name, business address and telephone number of the applicant;

(b) The location or proposed location of the applicant’s facility and a detailed description of the facility;

(c) Proof satisfactory to the Office of Economic Development that the applicant satisfies the criteria for eligibility set forth in subsection 3;

(d) An attestation, on a form approved by the Office of Economic Development, that but for the incentive provided pursuant to the Program, the applicant would not have located or intended to locate the business in this State; and

(e) Any other information required by the Office of Economic Development.

3. To be eligible for participation in the Program, an applicant must demonstrate that:

(a) The applicant is or intends to be a new commercial or industrial customer of an electric utility in this State;

(b) The applicant is not, and has not been during the immediately preceding 12 months, a customer of any other electric utility in this State;

(d) The electric utility has determined that the applicant’s use of the load is not for a project, purpose or facility which carries an abnormal risk or is seasonal, intermittent or temporary; and

(e) The applicant has applied for each economic incentive, including, without limitation, any abatement or partial abatement of taxes, offered by the State or any local government for which the applicant is eligible.

4. Upon the receipt of a completed application, the Office of Economic Development shall consider the application and make a determination of whether the applicant satisfies the criteria for eligibility. If the Office of Economic Development determines that the applicant satisfies the criteria for eligibility, the Office of Economic Development may give initial approval to the applicant if the approval, as determined by the Office of Economic Development, is in the best interests of the State.

5. If the Office of Economic Development gives initial approval to an applicant, the Office of Economic Development shall:

(a) Provide notice of the initial approval to the applicant;

(b) Issue to the applicant a letter of eligibility; and

(Added to NRS by 2013, 3208; A 2014, 28th Special Session, 7, 10)

1. Upon receipt of an application and letter of eligibility pursuant to paragraph (c) of subsection 5 of NRS 704.7876, the Commission shall:

(a) Review the application;

(b) Establish the rates which may be charged to the applicant by the electric utility that will serve the load of the applicant; and

(c) In addition to the terms required by subsection 3, establish any additional terms which must be included in the contract between the applicant and the electric utility.

2. Before any applicant enters into a contract with an electric utility pursuant to the Program, the applicant shall:

(a) Provide to the electric utility that will serve the load of the applicant access to the applicant’s facility or plans for the facility for the purpose of the electric utility making recommendations concerning the energy efficiency of the facility; and

(b) Provide proof satisfactory to the Commission that the new load under the contract will have an annual load factor of 50 percent or more for each year of the term of the contract.

3. An applicant may participate in the Program pursuant to a contract which is entered into by the applicant and the electric utility that will serve the load of the applicant and which is approved by the Commission. A contract entered into pursuant to this section must include provisions setting forth:

(a) The term of the contract, which must be 10 years;

(b) The term of the discounts applicable under the Program, which must be 8 years;

(d) That the discount approved by the Commission does not apply to up-front costs, the base tariff general rate, any otherwise applicable tariff or any taxes, surcharges, amortization or program rate elements;

(e) The deposit requirements, which must be based on the rates applicable under the second year of the contract;

(f) That the participant ceases to be eligible for any discounted rates for electricity if the participant fails to satisfy any requirements set forth in the contract or NRS 704.7871 to 704.7882, inclusive, or any regulations adopted pursuant thereto; and

(g) Any additional requirements prescribed by the Commission.

4. An electric utility shall prepare a contract to be entered into by the electric utility and a participant and submit the contract to the Commission for approval. Upon approval of the contract by the Commission, the electric utility and the applicant may enter into the contract and the applicant may participate in the Program. The Commission shall forward a copy of the approved contract to the Office of Economic Development.

(Added to NRS by 2013, 3209; A 2014, 28th Special Session, 8, 10)

NRS 704.7878 Electric utility required to recover certain amounts through deferred energy accounting adjustment application. [Effective through the date on which the last contract entered into pursuant to the Program terminates, whether termination is by expiration of the terms or otherwise.] Notwithstanding any other provision of this chapter, an electric utility that enters into a contract with a participant pursuant to NRS 704.7877 shall, in the manner provided pursuant to the regulations adopted by the Commission pursuant to paragraph (c) of subsection 1 of NRS 704.7881, recover through a deferred energy accounting adjustment application an amount equal to the discount provided to the participant pursuant to the contract.

(Added to NRS by 2013, 3209; A 2014, 28th Special Session, 10)

NRS 704.7879 Penalty for failure by participant to comply with contract or Program. [Effective through the date on which the last contract entered into pursuant to the Program terminates, whether termination is by expiration of the terms or otherwise.] If the Commission determines that a participant in the Program has failed to fulfill any requirement of the contract or carry out any duty imposed pursuant to the Program, the Commission shall issue an order requiring the participant to pay to the electric utility an amount equal to the rate which would have been charged but for the participant’s participation in the Program.

(Added to NRS by 2013, 3209; A 2014, 28th Special Session, 10)

NRS 704.788 Final date for acceptance or approval of application for participation in Program. [Effective through the date on which the last contract entered into pursuant to the Program terminates, whether termination is by expiration of the terms or otherwise.] The Office of Economic Development shall not accept an application or give initial approval to any applicant for participation in the Program, and the Commission shall not approve an applicant for participation in the Program, after the earlier of December 31, 2024, or the date on which the capacity set aside for allocation pursuant to the Program is fully allocated.

(Added to NRS by 2013, 3210; A 2014, 28th Special Session, 10; 2021, 3801)

NRS 704.7881 Regulations. [Effective through the date on which the last contract entered into pursuant to the Program terminates, whether termination is by expiration of the terms or otherwise.] The Commission, in consultation with the Office of Economic Development:

1. Shall adopt regulations:

(a) Establishing the discounted electric rates that may be charged by an electric utility pursuant to the Program, which must be established as a percentage of the base tariff energy rate and for which:

(1) In the first and second year of a contract entered into pursuant to NRS 704.7877, there shall be no discount of the base tariff energy rate;

(2) In the third and fourth year of a contract entered into pursuant to NRS 704.7877, the reduction in the rates as a result of the discount must not exceed 30 percent of the base tariff energy rate;

(3) In the fifth, sixth, seventh and eighth year of a contract entered into pursuant to NRS 704.7877, the reduction in the rates as a result of the discount must not exceed 20 percent of the base tariff energy rate; and

(4) In the ninth and tenth year of a contract entered into pursuant to NRS 704.7877, the reduction in the rates as a result of the discount must not exceed 10 percent of the base tariff energy rate;

(b) Prescribing the form and content of the contract entered into pursuant to NRS 704.7877;

(c) Prescribing the procedure by which an electric utility is authorized to recover through a deferred energy accounting adjustment application the amount of the discount provided to a participant in the Program; and

(d) Prescribing any additional information which must be submitted by an applicant for participation in the Program.

2. May adopt any other regulations it determines are necessary to carry out the provisions of NRS 704.7871 to 704.7882, inclusive.

(Added to NRS by 2013, 3210; A 2014, 28th Special Session, 9, 10; 2021, 3801)

NRS 704.7882 Preparation of written report by Commission; submission of report to Legislature. [Effective through the date on which the last contract entered into pursuant to the Program terminates, whether termination is by expiration of the terms or otherwise.] The Commission shall, on or before December 31, 2022, prepare a written report concerning the Program and submit the report to the Director of the Legislative Counsel Bureau for transmittal to the 82nd Session of the Legislature. The report must include, without limitation, information concerning:

1. The number of participants in the Program;

2. The amount of electricity allocated pursuant to the Program;

3. The total amount of the discounts provided pursuant to the Program; and

4. The remaining amount of electricity available for allocation pursuant to the Program.

(Added to NRS by 2013, 3210; A 2014, 28th Special Session, 10; 2021, 3802)

Energy Storage System Procurement

NRS 704.791 Definitions. As used in NRS 704.791 to 704.797, inclusive, unless the context otherwise requires, the words and terms defined in NRS 704.792, 704.793 and 704.794 have the meanings ascribed to them in those sections.

(Added to NRS by 2017, 1272)

NRS 704.792 “Electric utility” defined. “Electric utility” has the meaning ascribed to it in NRS 704.187.

(Added to NRS by 2017, 1272)

NRS 704.793 “Energy storage system” defined. “Energy storage system” means commercially available technology that is capable of retaining energy, storing the energy for a period of time and delivering the energy after storage, including, without limitation, by chemical, thermal or mechanical means.

(Added to NRS by 2017, 1272)

NRS 704.794 “Procure” or “procurement” defined. “Procure” or “procurement” means to acquire by ownership or by a contractual right to use the energy from, or the capacity of, an energy storage system.

(Added to NRS by 2017, 1272)

1. On or before October 1, 2018, the Commission shall determine whether it is in the public interest to establish by regulation biennial targets for the procurement of energy storage systems by an electric utility.

2. In making the determination required by subsection 1, the Commission shall consider:

(a) Whether the procurement of energy storage systems by an electric utility will achieve the following purposes:

(1) The integration of renewable energy resources which generate electricity on an intermittent basis into the transmission and distribution grid of the electric utility.

(2) The improvement of the reliability of the systems for the transmission and distribution of electricity.

(3) The increased use of renewable energy resources to generate electricity.

(4) The reduction of the need for the additional generation of electricity during periods of peak demand.

(5) The avoidance or deferral of investment by the electric utility in generation, transmission and distribution of electricity.

(6) The replacement of ancillary services provided by facilities using fossil fuels with ancillary services provided by the use of energy storage systems.

(7) The reduction of greenhouse gas emissions.

(b) The interconnection of energy storage systems at each point of the electric grid, including, without limitation, in the transmission and distribution of electricity and at the site of the customer.

3. For the purposes of subsection 1, the Commission shall determine that the establishment of targets for the procurement of energy storage systems by an electric utility is in the public interest if the benefits to customers of the electric utility exceed the costs of the procurement of energy storage systems. In calculating the benefits and costs of the procurement of energy storage systems, the Commission shall consider all known and measurable benefits and costs, including, without limitation:

(a) A reduction in the need for the additional generation of electricity during periods of peak demand;

(b) A reduction in line losses;

(d) Avoided costs for additional generation, transmission and generation capacity;

(e) The benefits arising from a reduction of greenhouse gas emissions and the emission of other air pollutants;

(f) The benefits and costs related to voltage support;

(g) The benefits of diversifying the types of resources used for the generation of electricity;

(h) The administrative costs incurred by the electric utility;

(i) The cost to the electric utility of the integration of energy storage systems into the transmission and distribution grid; and

(j) The cost of energy storage systems.

(Added to NRS by 2017, 1272)

NRS 704.796 Commission to adopt regulations relating to procurement of energy storage systems if targets for procurement of energy storage systems by electric utility are in public interest. If, pursuant to NRS 704.795, the Commission determines that it is in the public interest to establish by regulation targets for the procurement of energy storage systems by an electric utility, the Commission shall adopt regulations:

1. Establishing biennial targets for the procurement of energy storage systems by the electric utility;

2. Setting forth the points of interconnection on the electric grid for the implementation of energy storage systems;

3. Establishing that an energy storage system may be owned by the electric utility or any other person;

4. Establishing requirements for the filing by the electric utility of annual or biennial plans to meet biennial targets for the procurement and implementation of energy storage systems;

5. Prescribing a procedure by which the Commission must, at least once every 3 years, reevaluate the biennial targets for the procurement of energy storage systems by the electric utility;

6. Establishing a procedure by which an electric utility may obtain a waiver or deferral of the biennial targets for the procurement of energy storage systems if the electric utility is not able to identify energy storage systems that provide benefits to customers of the utility that exceed the costs of energy storage systems; and

7. Requiring the electric utility to include such information as the Commission may require in each plan submitted by the electric utility pursuant to NRS 704.741.

(Added to NRS by 2017, 1273)

NRS 704.797 Requirements for energy storage systems procured to meet targets.

1. If the Commission adopts regulations pursuant to NRS 704.796 to establish biennial targets for the procurement of energy storage systems by an electric utility, to meet the targets set forth in those regulations, the electric utility may procure energy storage systems that are either centralized or distributed and either owned by the utility or by any other person, as prescribed by regulation of the Commission.

2. Electric energy storage systems procured by an electric utility to meet any biennial targets for the procurement of energy storage systems established by regulation pursuant to NRS 704.796 must:

(a) Reduce peak demand for electricity;

(b) Avoid or defer investment by the electric utility in assets for the generation, transmission and distribution of electricity;

(d) Reduce the emission of greenhouse gases or other air pollutants; or

(e) Integrate renewable energy into the electric grid.

(Added to NRS by 2017, 1274)

Natural Disaster Protection Plans

1. An electric utility shall, on or before June 1, 2020, and on or before June 1 of every third year thereafter, in the manner specified by the Commission, submit a natural disaster protection plan to the Commission.

2. A natural disaster protection plan submitted to the Commission pursuant to subsection 1 must:

(a) Identify areas within the service territory of the electric utility that are subject to a heightened threat of a fire or other natural disaster.

(b) Propose an approach for the mitigation of potential fires or other natural disasters that is cost effective, prudent and reasonable.

(c) Describe the preventive measures and programs the electric utility will implement to minimize the risk of its electric infrastructure causing a fire.

(d) Describe the participation of the electric utility, including, without limitation, any commitments made, in any community wildfire protection plans, as defined in 16 U.S.C. § 6511, established in this State.

(e) Propose protocols for de-energizing distribution lines and disabling reclosers on those lines in the event of a fire or other natural disaster. Such protocols must consider the associated impact of such actions on public safety and mitigate any adverse impact on public safety plans, including, without limitation, impact on critical first responders and on health and communication infrastructure.

(f) Describe the procedures the electric utility intends to use to inspect the electric infrastructure of the electric utility.

(g) Describe the procedures the electric utility intends to use for vegetation management.

(h) Describe the procedures the electric utility intends to use to restore its distribution system in the event of a natural disaster.

(i) Demonstrate that the natural disaster protection plan is consistent with the emergency response plan submitted by the electric utility pursuant to NRS 239C.270.

(j) Describe the ability of the electric utility to implement the natural disaster protection plan and identify additional funding needed for the implementation of the plan.

3. The procedures, protocols and measures set forth in a natural disaster protection plan submitted pursuant to subsection 1 must comply with all applicable requirements of the most recent version of the International Wildland-Urban Interface Code, published by the International Code Council or its successor organization, including, without limitation, the requirements relating to clearances set forth in Appendix A of the Code. Nothing in this subsection shall be construed to prohibit an electric utility from setting forth in a natural disaster response plan procedures, protocols and measures that are more restrictive than those set forth in the Code.

4. The Commission shall adopt regulations to provide for the method and schedule for preparing, submitting, reviewing and approving a plan submitted pursuant to subsection 1.

5. An electric utility whose natural disaster protection plan has been approved by the Commission in accordance with the regulations adopted by the Commission pursuant to subsection 4 shall provide a copy of the approved plan to the chief officer of each fire department and each state, city and county emergency manager within the service territory of the electric utility.

6. All prudent and reasonable expenditures made by an electric utility to develop and implement a plan submitted pursuant to subsection 1 must be recovered as a separate monthly rate charged to the customers of the electric utility. The electric utility shall designate the amount charged to each customer as a separate line item on the bill of the customer.

7. A rural electric cooperative established pursuant to chapter 81 of NRS may submit to the Commission a natural disaster protection plan containing the information set forth in subsection 2. The Commission shall review a plan submitted by a rural electric cooperative and provide advice and recommendations. The board of directors of a rural electric cooperative may allow the rural electric cooperative to recover expenditures made to develop and implement a natural disaster protection plan from the rates charged to the customers of the rural electric cooperative.

8. As used in this section, “electric utility” has the meaning ascribed to it in NRS 704.7571.

(Added to NRS by 2019, 555)

Electric Infrastructure Work

NRS 704.7985 Restrictions on persons performing work on or near electric infrastructure.

1. Except as otherwise provided in subsections 2 and 3, a person shall not perform work on the electric infrastructure of an electric utility, including, without limitation, the construction, installation, maintenance, repair or removal of such infrastructure, unless the person is a qualified electrical worker.

2. An apprentice electrical lineman may perform work on the electric infrastructure of an electric utility, including, without limitation, the construction, installation, maintenance, repair or removal of such infrastructure, under the direct supervision of a qualified electrical worker.

3. The Commission may authorize a person who is not an employee of an electric utility to perform tree trimming related to line clearance in an easement or right-of-way dedicated or restricted for use by an electric utility. If a person who is not an employee of an electric utility performs tree trimming related to line clearance in such an easement or right-of-way, the tree trimming must be performed under the direction of an arborist certified by the International Society of Arboriculture.

4. As used in this section:

(a) “Apprentice electrical lineman” means a person employed and individually registered in a bona fide electrical lineman apprenticeship program with:

(1) The Office of Apprenticeship of the Employment and Training Administration of the United States Department of Labor or its successor agency; or

(2) The State Apprenticeship Council pursuant to chapter 610 of NRS.

(b) “Electric utility” has the meaning ascribed to it in NRS 704.7571.

(1) A person who has completed an electrical lineman apprenticeship program lasting at least 4 years that was approved by the Office of Apprenticeship of the Employment and Training Administration of the United States Department of Labor or its successor agency or the State Apprenticeship Council pursuant to chapter 610 of NRS; or

(2) A person who has completed 10,000 hours or more as a journeyman lineman and has performed at least 1,500 hours of documented live-line work on electrical conductors at a voltage of at least 4,160 kilovolts.

(Added to NRS by 2019, 556)

Transmission Infrastructure for a Clean Energy Economy Plan

NRS 704.79871 Definitions. As used in NRS 704.79871 to 704.7988, inclusive, unless the context otherwise requires, the words and terms defined in NRS 704.79872 to 704.79876, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2021, 3783)

NRS 704.79872 “Electric utility” defined. “Electric utility” has the meaning ascribed to it in NRS 704.187.

(Added to NRS by 2021, 3783)

NRS 704.79873 “Electric utility that primarily serves densely populated counties” defined. “Electric utility that primarily serves densely populated counties” has the meaning ascribed to it in NRS 704.110.

(Added to NRS by 2021, 3783)

NRS 704.79874 “Electric utility that primarily serves less densely populated counties” defined. “Electric utility that primarily serves less densely populated counties” has the meaning ascribed to it in NRS 704.110.

(Added to NRS by 2021, 3783)

NRS 704.79875 “High-voltage transmission infrastructure” defined. “High-voltage transmission infrastructure” means bulk transmission lines capable of transmitting electricity at a voltage of 345 kilovolts or more, and associated electrical substations and substation expansions to accommodate the transmission lines.

(Added to NRS by 2021, 3783)

NRS 704.79876 “Transmission infrastructure for a clean energy economy plan” or “plan” defined. “Transmission infrastructure for a clean energy economy plan” or “plan” means a plan filed by an electric utility with the Commission pursuant to NRS 704.79877.

(Added to NRS by 2021, 3784)

1. On or before September 1, 2021, an electric utility shall file an amendment to its most recent resource plan filed pursuant to NRS 704.741 to incorporate into the resource plan a transmission infrastructure for a clean energy economy plan which sets forth a plan for the construction of high-voltage transmission infrastructure that will be placed into service not later than December 31, 2028, to:

(a) Assure a reliable and resilient transmission network in this State to serve the existing and currently projected transmission service obligations of the electric utility;

(b) Assist the utility in meeting the portfolio standard established by NRS 704.7821 and the goals for the reduction of greenhouse gas emissions set forth in NRS 445B.380 and 704.7820;

(c) Promote economic development in this State, including, without limitation, by creating jobs, expanding the tax base or providing other economic benefits;

(d) Expand transmission access to renewable energy zones designated by the Commission pursuant to subsection 2 of NRS 704.741 to promote the development and use of renewable energy resources in this State;

(e) Use federally granted rights-of-way within designated renewable energy transmission corridors before the expiration of such rights-of-way; and

(f) Support the development of regional transmission interconnections that may be required for:

(1) This State to cost-effectively achieve the goals for the reduction of greenhouse gas emissions set forth in NRS 445B.380 and 704.7820; and

(2) The electric utility to participate fully in any future organized competitive regional wholesale electricity market on the Western Interconnection.

Ê Two or more utilities that are affiliated through common ownership and that have an interconnected system for the transmission of electricity shall submit a joint plan.

2. The plan submitted pursuant to subsection 1 must not include any project other than the following high-voltage transmission infrastructure projects for which the Commission has previously approved conceptual designs, permitting and land acquisition:

(a) A project for the implementation of high-voltage transmission infrastructure interconnecting northwest and northeast Nevada, which will increase the transmission import capacity of northern Nevada by not less than 800 megawatts.

(b) A project for the implementation of high-voltage transmission infrastructure located in southern Nevada and accessing a federally designated renewable energy transmission corridor that will accommodate future renewable energy development and increased demand for electricity.

3. Except as otherwise provided in this subsection, if an electric utility that primarily serves densely populated counties and an electric utility that primarily serves less densely populated counties submit a joint plan pursuant to subsection 1, 70 percent of the costs of high-voltage transmission infrastructure projects included in the plan must be allocated to the electric utility that primarily serves densely populated counties and 30 percent of such costs must be allocated to the electric utility that primarily serves less densely populated counties. The Commission may review and reassess the allocation of costs between electric utilities based on the actual benefits that accrue to the electric utilities after the projects are in service. The Commission retains full authority to decide any request by an electric utility for the recovery of such costs before a high-voltage transmission infrastructure project is placed into service, and to determine if any proposed financial incentive will be provided on the recovery of such costs.

4. The plan submitted pursuant to subsection 1 must include an evaluation of the impact that the implementation of the plan will have on:

(a) The reliability of the transmission network of the utility;

(b) The resilience of the transmission network of the utility, including, without limitation, the ability of the transmission network to withstand natural or manmade events that could otherwise disrupt the provision of electric service in this State;

(d) Economic activity and economic development in this State over a period of not less than 20 years from the date of the plan, including, without limitation, capital investments, the direct or indirect creation of jobs and additions to the tax base of this State;

(e) The projected carbon dioxide emissions of the utility resulting from the generation of electricity, including, without limitation, carbon dioxide emissions from the generation of electricity that is purchased by the electric utility;

(f) The ability of the utility to diversify its supply portfolio of renewable energy resources by including larger amounts of geothermal energy generation and hydrogeneration;

(g) The ability of the utility to reliably integrate into its supply portfolio larger amounts of electricity from variable renewable energy resources, including, without limitation, solar and wind energy resources;

(h) The ability of the utility to reduce its energy supply costs by selling to other states electricity generated in this State from renewable energy during periods when the utility’s supply of electricity exceeds the demand for electricity by the customers of the utility;

(i) The ability of the utility to reduce its energy supply costs by purchasing electricity generated in other states from renewable energy during periods when the demand for electricity by the customers of the utility exceeds the availability of electricity from renewable generation in this State;

(j) The utility’s provision of open access to interstate and intrastate transmission services, in accordance with the utility’s open access transmission tariff, to other persons in this State using the utility’s transmission network, including, without limitation, eligible customers, as defined in NRS 704B.080, and providers of new electric resources, as defined in NRS 704B.130, who are or intend to become customers of the utility’s interstate transmission services;

(k) The ability of the utility to accommodate requests for access to renewable energy resources that will allow customers who want to acquire all of their energy from zero carbon dioxide emission resources to do so;

(l) The development of regional transmission interconnections that may be required for this State to cost-effectively achieve the goals for the reduction of greenhouse gas emissions set forth in NRS 445B.380 and 704.7820 or for the electric utility to participate fully in any future organized competitive regional wholesale electricity market on the Western Interconnection;

(m) The rates charged to the bundled retail customers of the utility; and

(n) The financial risk to the customers of the utility.

5. As used in this section, “Western Interconnection” means the synchronously operated electric transmission grid located in the western part of North America, including parts of Montana, Nebraska, New Mexico, South Dakota, Texas, Wyoming and Mexico and all of Arizona, California, Colorado, Idaho, Nevada, Oregon, Utah, Washington and the Canadian Provinces of British Columbia and Alberta.

(Added to NRS by 2021, 3784)

1. In implementing a transmission infrastructure for a clean energy economy plan, an electric utility shall mitigate costs to the extent possible by utilizing available federal tax incentives and federal funding, including, without limitation, direct and indirect grants and loan guarantees.

2. If, in any general rate proceeding filed by an electric utility pursuant to NRS 704.110 or 704.7621, the electric utility includes a request for recovery of any amount related to the implementation of a transmission infrastructure for a clean energy economy plan and the recovery of such an amount would result in an increase in the electric utility’s total revenue requirement of more than 10 percent, the utility must propose a rate method or mechanism by which such an increase may be mitigated. The Commission may accept or reject such a rate method or mechanism and is not obligated to implement any proposed mitigation plan. If a rate method or mechanism is implemented to mitigate an increase in the electric utility’s total revenue requirement pursuant to this section, the electric utility is entitled to recover all of its prudently and reasonably incurred costs and a return on its investment. Nothing in this subsection shall be construed as requiring the Commission to provide a financial incentive to an electric utility.

(Added to NRS by 2021, 3786)

NRS 704.79879 Amendment may be filed as amendment to resource plan. An electric utility may file an amendment to a transmission infrastructure for a clean energy economy plan as an amendment to its resource plan as provided in NRS 704.751.

(Added to NRS by 2021, 3786)

NRS 704.7988 Modifications recommended by the Commission; actions by utility. If the Commission deems inadequate any portion of a transmission infrastructure for a clean energy economy plan or any amendment to the plan, the Commission, as provided in NRS 704.751, may recommend to the electric utility a modification of that portion of the plan or amendment, and the electric utility may:

1. Accept the modification; or

2. Withdraw the proposed plan or amendment.

(Added to NRS by 2021, 3786)

Regional Transmission Coordination

NRS 704.79881 Definitions. As used in NRS 704.79881 to 704.7989, inclusive, unless the context otherwise requires, the words and terms defined in NRS 704.79882 to 704.79885, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2021, 3786)

NRS 704.79882 “Regional transmission organization” defined. “Regional transmission organization” means an entity established for the purpose of coordinating and efficiently managing the dispatch and transmission of electricity among public utilities on a multistate or regional basis that:

1. Is approved by the Federal Energy Regulatory Commission;

2. Effectuates separate control of transmission facilities from control of generation facilities;

3. Implements, to the extent reasonably possible, policies and procedures designed to minimize pancaked transmission rates;

4. Improves service reliability within this State;

5. Achieves the objectives of an open and competitive wholesale electric generation marketplace, elimination of barriers to market entry and preclusion of control of bottleneck electric transmission facilities in the provision of retail electric service;

6. Is of sufficient scope or otherwise operates to substantially increase economical supply options for customers;

7. Has a structure of governance or control that is independent of the users of the transmission facilities, and no member of its board of directors has an affiliation with a user or with an affiliate of a user during the member’s tenure on the board so as to unduly affect the regional transmission organization’s performance;

8. Operates under policies that promote positive performance designed to satisfy the electricity requirements of customers;

9. Has an inclusive and open stakeholder process that does not place unreasonable burdens on or preclude meaningful participation by any stakeholder group;

10. Promotes and assists new economic development in this State; and

11. Is capable of maintaining real-time reliability of the transmission system, ensuring comparable and nondiscriminatory access and necessary service, minimizing system congestion and further addressing real or potential transmission constraints.

(Added to NRS by 2021, 3786)

NRS 704.79883 “Task Force” defined. [Effective through December 31, 2031.] “Task Force” means the Regional Transmission Coordination Task Force created by NRS 704.79887.

(Added to NRS by 2021, 3787)

NRS 704.79884 “Transmission provider” defined. “Transmission provider” means a public utility that owns, controls or operates facilities used for the transmission of electricity in interstate commerce and provides transmission service under a tariff approved by the Federal Energy Regulatory Commission.

(Added to NRS by 2021, 3787)

NRS 704.79885 “User” defined. “User” means any entity or affiliate of an entity that buys or sells electricity in the regional transmission organization’s region or in a neighboring region.

(Added to NRS by 2021, 3787)

NRS 704.79886 Commission to require transmission providers to join regional transmission organization; waiver or delay of requirement.

1. Except as otherwise provided in subsection 2, the Commission shall require every transmission provider in this State to join a regional transmission organization on or before January 1, 2030.

2. Upon application by a transmission provider, the Commission may waive or delay the requirement in subsection 1 if:

(a) The transmission provider files an application with the Commission on or before January 1, 2027, requesting the waiver or delay;

(b) The transmission provider demonstrates:

(1) That the transmission provider has made all reasonable efforts to comply with the requirement but is unable to find a viable and available regional transmission organization that the transmission provider can join on or before January 1, 2030; or

(2) That it would not be in the best interests of the transmission provider and its customers to join a regional transmission organization on or before January 1, 2030; and

(Added to NRS by 2021, 3787)

NRS 704.79887 Regional Transmission Coordination Task Force: Creation; membership; members serve at pleasure of Governor and without compensation. [Effective through June 30, 2024.]

1. The Regional Transmission Coordination Task Force is hereby created.

2. The Governor shall appoint a person to act as the Chair of the Task Force who serves at the pleasure of the Governor. The Chair is a voting member of the Task Force.

3. In addition to the Chair, the Task Force consists of:

(a) The following voting members, appointed by the Governor:

(1) A representative of an electric utility that primarily serves densely populated counties, as defined in NRS 704.110;

(2) A representative of an organization that represents rural electric cooperatives and municipally owned electric utilities in this State;

(3) A representative of the Colorado River Commission of Nevada;

(4) A representative of a transmission line development company operating in this State;

(5) A representative of the large-scale solar energy industry in this State;

(6) A representative of the geothermal energy industry in this State;

(7) A representative of the data center businesses in this State;

(8) A representative of an organization that represents the mining industry in this State;

(9) A representative of an organization that represents the gaming and resort businesses in this State;

(10) A representative of a labor organization in this State;

(11) A representative of an organization in this State that advocates on behalf of environmental or public lands issues who has expertise in or knowledge of environmental or public lands issues;

(12) A representative of the Nevada Indian Commission;

(13) A representative of the Office of Energy;

(14) A representative of the Office of Economic Development;

(15) Two members of the Senate, nominated by the Majority Leader of the Senate, at least one of whom must be a member of the minority political party;

(16) Two members of the Assembly, nominated by the Speaker of the Assembly, at least one of whom must be a member of the minority political party; and

(17) Not more than three persons who represent the general public.

(b) The following nonvoting members, appointed by the Governor:

(1) A representative of the Public Utilities Commission of Nevada; and

(2) A representative of the Bureau of Consumer Protection in the Office of the Attorney General.

4. The members of the Task Force serve at the pleasure of the Governor.

5. The members of the Task Force serve without compensation.

(Added to NRS by 2021, 3788)