1. The Commission shall adopt regulations to establish procedures for a natural gas 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) Prescribe the information that must be included in an alternative rate-making plan and an application submitted in accordance with the regulations adopted pursuant to this section. (c) Specify the circumstances under which a natural gas 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) or after any period of time established by regulation of the Commission. (d) Provide a process to educate customers of a natural gas utility regarding the available alternative rate-making mechanisms that may be included in an alternative rate-making plan. (e) Establish requirements for a natural gas 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 natural gas utility would have been required to submit to the Commission as part of an application filed pursuant to NRS 704.110 or 704.185 , 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 a natural gas utility to include in its application for the approval of an alternative rate-making plan: (1) One or more cost-of-service studies; and (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 the criteria for the evaluation of an alternative rate-making plan for a natural gas utility which may include, without limitation, whether the plan: (1) Provides for just and reasonable rates that are comparable to rates established pursuant to NRS 704.110 ; (2) Ensures that customers of a natural gas utility benefit from lower regulatory administrative costs where appropriate; (3) Aligns an economically viable utility model with state public policy goals; (4) Enables the delivery of natural gas service and options for service and pricing that customers of a natural gas utility value, including, without limitation, the development and use of low carbon fuels by customers that prioritize such an option over other factors, including price; (5) Fosters statewide improvements to the economic and operational efficiency of the natural gas infrastructure system; (6) Furthers the public interest, including, without limitation, the promotion of safe, economic, efficient and reliable service to all customers of the natural gas utility; (7) Enhances the resilience and security of the natural gas infrastructure system while addressing concerns relating to customer privacy; (8) Facilitates the research and development of innovative natural gas services and options to benefit customers; and (9) Balances the interests of customers and shareholders by providing services customers want while preserving reasonable shareholder value. 2. In addition to any requirement adopted by regulation of the Commission pursuant to subsection 1, if a natural gas utility files an application for an alternative rate-making plan that includes formula rates or a multi-year rate plan, the alternative rate-making plan must include, without limitation: (a) An earnings-sharing mechanism; and (b) A discussion identifying any changes in risk to the natural gas utility and a calculation to adjust the rate of return of the natural gas utility based on the changes in risk to the natural gas utility, which must demonstrate the impact of the changes on the rates charged to customers of the natural gas utility. 3. 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.
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