Nevada Code § 704.9904

Application for establishment of alternative rate-making plan; action by Commission on application; consumer session required; requirements if plan authorizes recovery of costs of capital expenditure; acceptance or rejection of modified plan by utility; investigation relating to plan
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1. Except as otherwise provided in
subsection 3 of NRS 704.99039 and in
accordance with the regulations adopted by the Commission pursuant to NRS 704.99039 , not earlier than the date
on which the Commission first adopts regulations pursuant to NRS 704.99039 , a natural gas utility 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. A natural gas utility may file an
application pursuant to subsection 1:
(a) At the same time the natural gas utility
files a general rate application pursuant to NRS
704.110 ; or
(b) Not later than 6 months after the date on
which the Commission issues an order approving a general rate application filed
by the natural gas utility pursuant to NRS
704.110 .
3. 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.
4. The Commission shall conduct a consumer
session pursuant to NRS 704.069 in each
major geographic area in which the natural gas utility provides services to
solicit comments from the public before taking action on an application
submitted pursuant to subsection 1.
5. 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;
(c) Protects the interests of the customers of
the natural gas utility;
(d) Satisfies the criteria established by the
Commission pursuant to paragraph (g) of subsection 1 of NRS 704.99039 ;
(e) Specifies the time period to which the plan
applies; and
(f) Includes a plan for educating the customers
of the natural gas utility regarding the alternative rate-making mechanisms
included in the plan.
6. An alternative rate-making plan may
include, without limitation:
(a) An earnings-sharing mechanism that balances
the interests of customers that purchase natural gas for consumption in this
State and the shareholders of the natural gas utility; and
(b) Any other term or condition proposed by a
natural gas utility or any party participating in the proceeding or that the
Commission finds is reasonable and serves the public interest.
7. If the Commission approves an
application for an alternative rate-making plan that authorizes the recovery of
the costs of a capital expenditure:
(a) The natural gas utility must prove that the
capital expenditure was prudent at the time the natural gas utility files a
general rate application pursuant to NRS
704.110 or at any time established by regulation of the Commission; and
(b) If the Commission determines during a general
rate case proceeding conducted pursuant to NRS
704.110 that the natural gas utility did not prove that the capital expenditure
was prudent, the Commission shall require the natural gas utility to refund the
customers of the natural gas utility the amount previously recovered through
charges to customers of the natural gas utility for the costs of the capital
expenditure.
8. If the Commission approves an
application for an alternative rate-making plan with modifications pursuant to
subsection 3, the natural gas utility may accept or reject the modified
alternative rate-making plan by filing a notice with the Commission not later
than 30 days after the date on which the Commission issues an order approving
the application. If a natural gas utility files a notice to reject the modified
alternative rate-making plan, the alternative rate-making plan shall be deemed
withdrawn and:
(a) If a general rate application was filed at
the same time as the application for the alternative rate-making plan and the
general rate application or any portion thereof was approved, the rates
approved in the general rate application shall be deemed in effect. To the
extent that a portion of a general rate application is approved, the rates that
were in effect before the portion of the general rate application was approved
by the Commission remain in effect for any portion of the general rate application
not approved by the Commission until changed or modified by the Commission.
(b) If a general rate application was not filed
at the same time as the application for the alternative rate-making plan, the
rates that were in effect before the modified alternative rate-making plan was
approved remain in effect until changed or modified by the Commission.
9. The Commission may at any time, upon
its own motion or after receiving a complaint from any customer, the Consumers
Advocate or the Regulatory Operations Staff of the Commission, investigate any
of the rates, tolls, charges, rules, regulations, practices and services
relating to the 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 .

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