REQUIRES TWO-THIRDS MAJORITY VOTE (§§ 40, 53)

                                                                         

                                                                                                                                        A.B. 5

 

Assembly Bill No. 5–Joint Rules Committee

 

Prefiled June 13, 2001

____________

 

Referred to Committee of the Whole

 

SUMMARY—Revises and repeals various provisions concerning utilities and energy. (BDR 58‑21)

 

FISCAL NOTE:  Effect on Local Government: No.

                             Effect on the State: Yes.

 

~

 

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

Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to energy; authorizing certain eligible customers to purchase electrical energy, capacity and certain ancillary services from providers of new electric resources; establishing the universal energy charge to fund low-income energy assistance and conservation; requiring certain retail customers to pay the universal energy charge; requiring certain public utilities and municipal utilities to perform certain functions related to the universal energy charge; creating the fund for energy assistance and conservation and setting forth the criteria to determine the eligibility of a household to receive assistance from money in the fund; authorizing certain agencies to render emergency assistance to households in certain circumstances; revising and repealing various provisions concerning the regulation of public utilities and the process of establishing and changing rates; expanding the public utilities commission of Nevada from three to five members; revising the authority of the commission to regulate mergers, acquisitions and certain other transactions involving public utilities and other entities; making various changes with respect to net metering; authorizing the director of the department of business and industry to issue industrial development revenue bonds for certain renewable energy generation projects; creating the task force for renewable energy and energy conservation and prescribing its membership and duties; creating the trust fund for renewable energy and energy conservation; creating the office of energy within the office of the governor; transferring control of the Nevada state energy office from the director of the department of business and industry to the office of energy within the office of the governor; requiring certain lodging establishments to include certain information concerning energy costs on their statement of rates; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

 

 


2-1    Section 1. For the purposes of sections 3 to 26, inclusive, of this act,

2-2  the legislature hereby finds and declares that:

2-3    1.  A reliable and reasonably priced supply of electricity is critical to

2-4  the economy of this state and to the health, safety and welfare of the

2-5  residents of this state;

2-6    2.  The electric utilities in this state depend on regional energy markets

2-7  to purchase approximately 50 percent of the electricity needed to serve

2-8  their customers in this state, and such purchases are often made pursuant to

2-9  agreements with terms of 1 year or less;

2-10    3.  The energy markets in the western United States currently are

2-11  characterized by critical shortages in the supply of electricity and

2-12  extremely high prices for electricity, both of which are damaging to the

2-13  strength of the economy of this state and to the well-being of the residents

2-14  of this state;

2-15    4.  The residents of this state would benefit from construction of new

2-16  generation assets in this state and from access to other new electric

2-17  resources, wherever located, that provide lower-priced electricity;

2-18    5.  The economic development that would result from construction in

2-19  this state of new generation assets, supporting gas pipelines and additional

2-20  infrastructure would be of special benefit to the rural areas of this state

2-21  where the new generation assets are most likely to be located;

2-22    6.  During the 71st session of the Nevada Legislature, the legislature

2-23  considered a number of different but complementary approaches to

2-24  developing and using new generation assets and other new electric

2-25  resources and to increasing the supply of reasonably priced electricity in

2-26  this state;

2-27    7.  The development and use of new generation assets and other new

2-28  electric resources by eligible customers would permit the electric utilities

2-29  in this state to reduce their dependence on purchases of excessively priced

2-30  electricity from dysfunctional, short-term energy markets and would

2-31  thereby reduce the average system costs for such electric utilities;

2-32    8.  The development and use of new generation assets and other new

2-33  electric resources can be encouraged by allowing eligible customers to use

2-34  their own resources, initiative, expertise and credit to develop, access and

2-35  enter into agreements for the purchase of electricity from new generation

2-36  assets and other new electric resources; and

2-37    9.  To protect the electric utilities in this state and their remaining

2-38  customers, all transactions proposed by eligible customers pursuant to

2-39  sections 3 to 26, inclusive, of this act must be carefully reviewed by the

2-40  public utilities commission of Nevada to ensure that the electric utilities in

2-41  this state and their remaining customers are not subject to increased costs

2-42  as a result of the proposed transactions and that the proposed transactions

2-43  are not otherwise contrary to the public interest.

2-44    Sec. 2.  Title 58 of NRS is hereby amended by adding thereto a new

2-45  chapter to consist of the provisions set forth as sections 3 to 26, inclusive,

2-46  of this act.

2-47    Sec. 3.  As used in this chapter, unless the context otherwise

2-48  requires, the words and terms defined in sections 4 to 16, inclusive, of

2-49  this act have the meanings ascribed to them in those sections.


3-1    Sec. 4.  “Ancillary services” means those generation services that:

3-2    1.  Are necessary to support the transmission of energy and capacity

3-3  from resources to loads while maintaining reliable operation of the

3-4  transmission system of the electric utility; and

3-5    2.  Are defined and established in applicable transmission tariffs on

3-6  file with the Federal Energy Regulatory Commission.

3-7    Sec. 5.  “Calendar quarter” means each period of 3 consecutive

3-8  calendar months ending on March 31, June 30, September 30 and

3-9  December 31 in each calendar year.

3-10    Sec. 6.  “Commission” means the public utilities commission of

3-11  Nevada.

3-12    Sec. 7.  1.  “Electric utility” means any public utility or successor in

3-13  interest that:

3-14    (a) Is in the business of providing electric service to customers;

3-15    (b) Holds a certificate of public convenience and necessity issued or

3-16  transferred pursuant to chapter 704 of NRS; and

3-17    (c) In the most recently completed calendar year or in any other

3-18  calendar year within the 7 calendar years immediately preceding the

3-19  most recently completed calendar year, had a gross operating revenue of

3-20  $250,000,000 or more in this state.

3-21    2.  The term does not include a cooperative association, nonprofit

3-22  corporation, nonprofit association or provider of electric service which is

3-23  declared to be a public utility pursuant to NRS 704.673 and which

3-24  provides service only to its members.

3-25    Sec. 8.  “Electric utility that primarily serves densely populated

3-26  counties” means an electric utility that, with regard to the provision of

3-27  electric service, derives more of its annual gross operating revenue in

3-28  this state from customers located in counties whose population is 400,000

3-29  or more than it does from customers located in counties whose

3-30  population is less than 400,000.

3-31    Sec. 9.  “Electric utility that primarily serves less densely populated

3-32  counties” means an electric utility that, with regard to the provision of

3-33  electric service, derives more of its annual gross operating revenue in

3-34  this state from customers located in counties whose population is less

3-35  than 400,000 than it does from customers located in counties whose

3-36  population is 400,000 or more.

3-37    Sec. 10.  “Eligible customer” means an end-use customer which is:

3-38    1.  A nongovernmental commercial or industrial end-use customer

3-39  that has an average annual load of 1 megawatt or more in the service

3-40  territory of an electric utility.

3-41    2.  A governmental entity, including, without limitation, a

3-42  governmental entity providing educational or health care services, that:

3-43    (a) Performs its functions using one or more facilities which are

3-44  operated under a common budget and common control; and

3-45    (b) Has an average annual load of 1 megawatt or more in the service

3-46  territory of an electric utility.

3-47    Sec. 11.  “Energy” means electrical energy.

 


4-1    Sec. 12.  “Generation asset” means any plant, facility, equipment or

4-2  system which is located within or outside this state and which converts

4-3  nonelectrical energy into electrical energy or otherwise produces

4-4  electrical energy.

4-5    Sec. 13.  “New electric resource” means:

4-6    1.  The energy, capacity or ancillary services and any increased or

4-7  additional energy, capacity or ancillary services which are:

4-8    (a) Made available from a generation asset that is not owned by an

4-9  electric utility or is not subject to contractual commitments to an electric

4-10  utility that make the energy, capacity or ancillary services from the

4-11  generation asset unavailable for purchase by an eligible customer; and

4-12    (b) Able to be delivered to an eligible customer.

4-13    2.  Any increased energy, capacity or ancillary services made

4-14  available from a generation asset pursuant to an agreement described in

4-15  section 18 of this act.

4-16    Sec. 14.  “Person” means:

4-17    1.  A natural person.

4-18    2.  Any form of business or social organization and any other

4-19  nongovernmental legal entity, including, without limitation, a

4-20  corporation, partnership, association, trust or unincorporated

4-21  organization.

4-22    3.  A governmental entity other than:

4-23    (a) This state or an agency or instrumentality of this state; or

4-24    (b) A political subdivision of this state or an agency or instrumentality

4-25  of a political subdivision of this state.

4-26    Sec. 15.  “Provider of new electric resources” and “provider” mean a

4-27  person who makes energy, capacity or ancillary services from a new

4-28  electric resource available to an eligible customer.

4-29    Sec. 16.  “Time-of-use meter” means a meter that:

4-30    1.  Measures and records the electric demand, energy and power

4-31  factor on 15-minute intervals; and

4-32    2.  Is suitable for use with an electric demand of 1 megawatt or more.

4-33    Sec. 17.  1.  The provisions of this chapter do not alter, diminish or

4-34  otherwise affect any rights or obligations arising under any contract

4-35  which requires an electric utility to purchase energy, capacity or

4-36  ancillary services from another party and which exists on the effective

4-37  date of this act.

4-38    2.  Each electric utility or its assignee shall comply with the terms of

4-39  any contract which requires the electric utility or its assignee to purchase

4-40  energy, capacity or ancillary services from another party and which

4-41  exists on the effective date of this act.

4-42    Sec. 18.  1.  Except as otherwise provided in this section, an electric

4-43  utility may, at its discretion, enter into agreements relating to its

4-44  generation assets and the energy, capacity or ancillary services provided

4-45  by its generation assets with one or more other persons who are not

4-46  electric utilities. Such agreements, without limitation:

4-47    (a) May include agreements to construct or install a new generation

4-48  asset on real property that is adjacent to an existing generation asset

4-49  owned by the electric utility; and


5-1    (b) May provide for the sharing of available common facilities with

5-2  the existing generation asset or the reengineering, repowering or

5-3  expansion of the existing generation asset to generate energy more

5-4  efficiently and at a lower cost and to make more energy available to

5-5  customers in this state.

5-6    2.  Any increased energy, capacity or ancillary services made

5-7  available from a new generation asset or an existing generation asset

5-8  pursuant to an agreement described in subsection 1 shall be deemed to be

5-9  a new electric resource that may be:

5-10    (a) Owned by the parties to the agreement who are not electric

5-11  utilities; and

5-12    (b) Used or consumed by such parties for their own purposes, sold at

5-13  wholesale by such parties or sold by such parties to one or more eligible

5-14  customers pursuant to the provisions of this chapter.

5-15    3.  A transaction undertaken pursuant to an agreement described in

5-16  subsection 1:

5-17    (a) Must not impair system reliability or the ability of the electric

5-18  utility to provide electric service to its customers; and

5-19    (b) Must not violate the provisions of sections 8 to 18, inclusive, of

5-20  chapter 16, Statutes of Nevada 2001.

5-21    4.  The provisions of this section do not exempt any party to an

5-22  agreement described in subsection 1 from any applicable statutory or

5-23  regulatory requirements relating to siting, construction and operation of

5-24  a generation asset.

5-25    5.  The commission shall encourage the development of new electric

5-26  resources and shall not exercise its regulatory authority in a manner that

5-27  unnecessarily or unreasonably restricts, conditions or discourages any

5-28  agreement described in subsection 1 that is likely to result in increased

5-29  energy, capacity or ancillary services from a generation asset or

5-30  improved or more efficient operation or management of a generation

5-31  asset.

5-32    Sec. 19.  1.  Except as otherwise provided in this section, a provider

5-33  of new electric resources may sell energy, capacity or ancillary services to

5-34  one or more eligible customers if the eligible customers have been

5-35  approved to purchase energy, capacity and ancillary services from the

5-36  provider pursuant to the provisions of sections 20 and 21 of this act.

5-37    2.  A provider of new electric resources shall not sell energy, capacity

5-38  or ancillary services to an eligible customer:

5-39    (a) Before April 1, 2002, if the eligible customer’s load is in the

5-40  service territory of an electric utility that primarily serves less densely

5-41  populated counties;

5-42    (b) Before June 1, 2002, if the eligible customer’s load is in the

5-43  service territory of an electric utility that primarily serves densely

5-44  populated counties; or

5-45    (c) If the transaction violates the provisions of this chapter.

5-46    3.  A provider of new electric resources that sells energy, capacity or

5-47  ancillary services to an eligible customer pursuant to the provisions of

5-48  this chapter:


6-1    (a) Does not become and shall not be deemed to be a public utility

6-2  solely because of that transaction; and

6-3    (b) Does not become and shall not be deemed to be subject to the

6-4  jurisdiction of the commission except as otherwise provided in this

6-5  chapter or by specific statute.

6-6    4.  If a provider of new electric resources is not a public utility in this

6-7  state and is not otherwise authorized by the provisions of a specific

6-8  statute to sell energy, capacity or ancillary services at retail in this state,

6-9  the provider shall not sell energy, capacity or ancillary services at retail

6-10  in this state to a person or entity that is not an eligible customer.

6-11    Sec. 20.  1.  An eligible customer that is purchasing electric service

6-12  from an electric utility shall not purchase energy, capacity or ancillary

6-13  services from a provider of new electric resources and an eligible

6-14  customer that is purchasing energy, capacity or ancillary services from a

6-15  provider of new electric resources shall not purchase energy, capacity or

6-16  ancillary services from another provider unless:

6-17    (a) The eligible customer files an application with the commission not

6-18  later than 180 days before the date on which the eligible customer

6-19  intends to begin purchasing energy, capacity or ancillary services from

6-20  the provider; and

6-21    (b) The commission approves the application by a written order issued

6-22  in accordance with the provisions of this section and section 21 of this

6-23  act.

6-24  The date on which the eligible customer intends to begin purchasing

6-25  energy, capacity or ancillary services from the provider must not be

6-26  sooner than the date on which the provider is authorized by section 19 of

6-27  this act to begin selling energy, capacity or ancillary services to the

6-28  eligible customer.

6-29    2.  Except as otherwise provided in subsection 3, each application

6-30  filed pursuant to this section must include:

6-31    (a) Information demonstrating that the person filing the application is

6-32  an eligible customer;

6-33    (b) Information demonstrating that the proposed provider will provide

6-34  energy, capacity or ancillary services from a new electric resource;

6-35    (c) Information concerning the terms and conditions of the proposed

6-36  transaction that is necessary for the commission to evaluate the impact of

6-37  the proposed transaction on customers and the public interest, including,

6-38  without limitation, information concerning the duration of the proposed

6-39  transaction and the amount of energy and capacity to be purchased from

6-40  the provider; and

6-41    (d) Any other information required pursuant to the regulations

6-42  adopted by the commission.

6-43    3.  Except as otherwise provided in section 21 of this act, the

6-44  commission shall not require the eligible customer or provider to

6-45  disclose:

6-46    (a) The price that is being paid by the eligible customer to purchase

6-47  energy, capacity or ancillary services from the provider; or

6-48    (b) Any other terms or conditions of the proposed transaction that the

6-49  commission determines are commercially sensitive.


7-1    4.  The commission shall provide public notice of the application of

7-2  the eligible customer and an opportunity for a hearing on the application

7-3  in a manner that is consistent with the provisions of NRS 703.320 and

7-4  the regulations adopted by the commission.

7-5    5.  The commission shall approve the application of the eligible

7-6  customer unless the commission finds that the proposed transaction:

7-7    (a) Will be contrary to the public interest; or

7-8    (b) Does not comply with the provisions of section 21 of this act, if

7-9  those provisions apply to the proposed transaction.

7-10    6.  In determining whether the proposed transaction will be contrary

7-11  to the public interest, the commission shall consider, without limitation:

7-12    (a) Whether the electric utility that has been providing electric service

7-13  to the eligible customer will be burdened by increased costs as a result of

7-14  the proposed transaction or whether any remaining customer of the

7-15  electric utility will pay increased costs for electric service as a result of

7-16  the proposed transaction;

7-17    (b) Whether the proposed transaction will impair system reliability or

7-18  the ability of the electric utility to provide electric service to its remaining

7-19  customers; and

7-20    (c) Whether the proposed transaction will add energy, capacity or

7-21  ancillary services to the supply in this state.

7-22    7.  If the commission approves the application of the eligible

7-23  customer:

7-24    (a) The eligible customer shall not begin purchasing energy, capacity

7-25  or ancillary services from the provider pursuant to the proposed

7-26  transaction sooner than 180 days after the date on which the application

7-27  was filed; and

7-28    (b) The commission shall order such terms, conditions and payments

7-29  as the commission deems necessary and appropriate to ensure that the

7-30  proposed transaction will not be contrary to the public interest. Such

7-31  terms, conditions and payments:

7-32      (1) Must be fair and nondiscriminatory as between the eligible

7-33  customer and the remaining customers of the electric utility; and

7-34      (2) Must include, without limitation, payment by the eligible

7-35  customer to the electric utility of the eligible customer’s load-share

7-36  portion of any unrecovered balance in the deferred accounts of the

7-37  electric utility.

7-38    8.  If the commission does not enter a final order on the application

7-39  of the eligible customer within 90 days after the date on which the

7-40  application was filed with the commission:

7-41    (a) The application shall be deemed to be approved by the

7-42  commission; and

7-43    (b) The eligible customer shall not begin purchasing energy, capacity

7-44  or ancillary services from the provider pursuant to the proposed

7-45  transaction sooner than 180 days after the date on which the application

7-46  was filed.

7-47    Sec. 21.  1.  For eligible customers whose loads are in the service

7-48  territory of an electric utility that primarily serves densely populated

7-49  counties, the aggregate amount of energy that all such eligible customers


8-1  purchase from providers of new electric resources before July 1, 2003,

8-2  must not exceed 50 percent of the difference between the existing supply

8-3  of energy generated in this state that is available to the electric utility and

8-4  the existing demand for energy in this state that is consumed by the

8-5  customers of the electric utility, as determined by the commission.

8-6    2.  An eligible customer that is a nongovernmental commercial or

8-7  industrial end-use customer whose load is in the service territory of an

8-8  electric utility that primarily serves densely populated counties shall not

8-9  purchase energy, capacity or ancillary services from a provider of new

8-10  electric resources unless, as part of the proposed transaction, the eligible

8-11  customer agrees to:

8-12    (a) Contract with the provider to purchase:

8-13      (1) An additional amount of energy which is equal to 10 percent of

8-14  the total amount of energy that the eligible customer is purchasing for its

8-15  own use under the proposed transaction and which is purchased at the

8-16  same price, terms and conditions as the energy purchased by the eligible

8-17  customer for its own use; and

8-18      (2) The capacity and ancillary services associated with the

8-19  additional amount of energy at the same price, terms and conditions as

8-20  the capacity and ancillary services purchased by the eligible customer for

8-21  its own use; and

8-22    (b) Offers to assign the rights to the contract to the electric utility for

8-23  use by the remaining customers of the electric utility.

8-24    3.  If an eligible customer is subject to the provisions of subsection 2,

8-25  the eligible customer shall include with its application filed pursuant to

8-26  section 20 of this act all information concerning the contract offered to

8-27  the electric utility that is necessary for the commission to determine

8-28  whether it is in the best interest of the remaining customers of the electric

8-29  utility for the electric utility to accept the rights to the contract. Such

8-30  information must include, without limitation, the amount of the energy

8-31  and capacity to be purchased under the contract, the price of the energy,

8-32  capacity and ancillary services and the duration of the contract.

8-33    4.  Notwithstanding any specific statute to the contrary, information

8-34  concerning the price of the energy, capacity and ancillary services and

8-35  any other terms or conditions of the contract that the commission

8-36  determines are commercially sensitive:

8-37    (a) Must not be disclosed by the commission except to the regulatory

8-38  operations staff of the commission, the consumer’s advocate and his staff

8-39  and the electric utility for the purposes of carrying out the provisions of

8-40  this section; and

8-41    (b) Shall be deemed to be confidential for all other purposes, and the

8-42  commission shall take such actions as are necessary to protect the

8-43  confidentiality of such information.

8-44    5.  If the commission determines that the contract:

8-45    (a) Is not in the best interest of the remaining customers of the electric

8-46  utility, the electric utility shall not accept the rights to the contract, and

8-47  the eligible customer is entitled to all rights to the contract.

8-48    (b) Is in the best interest of the remaining customers of the electric

8-49  utility, the electric utility shall accept the rights to the contract and the


9-1  eligible customer shall assign all rights to the contract to the electric

9-2  utility. A contract that is assigned to the electric utility pursuant to this

9-3  paragraph shall be deemed to be an approved part of the resource plan of

9-4  the electric utility and a prudent investment, and the electric utility may

9-5  recover all costs for the energy, capacity and ancillary services acquired

9-6  pursuant to the contract. To the extent practicable, the commission shall

9-7  take actions to ensure that the electric utility uses the energy, capacity

9-8  and ancillary services acquired pursuant to each such contract only for

9-9  the benefit of the remaining customers of the electric utility that are not

9-10  eligible customers, with a preference for the remaining customers of the

9-11  electric utility that are residential customers with small loads.

9-12    6.  The provisions of this section do not exempt the electric utility, in

9-13  whole or in part, from the requirements imposed on the electric utility

9-14  pursuant to sections 3 to 12, inclusive, of chapter 519, Statutes of Nevada

9-15  2001, to comply with its portfolio standard for renewable energy. The

9-16  commission shall not take any actions pursuant to this section that

9-17  conflict with or diminish those requirements.

9-18    7.  As used in this section, “consumer’s advocate” means the

9-19  consumer’s advocate of the bureau of consumer protection in the office

9-20  of the attorney general.

9-21    Sec. 22.  1.  If an eligible customer is purchasing energy, capacity

9-22  or ancillary services from a provider of new electric resources, the

9-23  eligible customer may, pursuant to tariffs approved by the commission,

9-24  replace some or all, but not less than all at a single time-of-use meter, of

9-25  the energy, capacity or ancillary services purchased from the provider of

9-26  new electric resources with energy, capacity or ancillary services

9-27  purchased from an electric utility.

9-28    2.  The tariffs approved by the commission pursuant to this section

9-29  must include, without limitation:

9-30    (a) Provisions requiring the eligible customer to pay any incremental

9-31  costs that are incurred by the electric utility to provide energy to the

9-32  eligible customer;

9-33    (b) Provisions requiring the eligible customer to provide reasonable

9-34  and adequate notice to the electric utility;

9-35    (c) Provisions establishing minimum terms during which the eligible

9-36  customer must continue to purchase energy from the electric utility; and

9-37    (d) Any other provisions that the commission determines are

9-38  necessary and reasonable to carry out and enforce the provisions of this

9-39  section.

9-40    Sec. 23.  1.  A provider of new electric resources shall not sell

9-41  energy, capacity or ancillary services to an eligible customer unless the

9-42  customer has a time-of-use meter installed at the point of delivery of

9-43  energy to the eligible customer.

9-44    2.  An electric utility shall install a time-of-use meter at each point of

9-45  delivery of energy to the eligible customer if the eligible customer does

9-46  not have a time-of-use meter at that point of delivery. If the eligible

9-47  customer is:

9-48    (a) A nongovernmental commercial or industrial end-use customer,

9-49  the eligible customer or the provider shall pay all costs for the time-of-


10-1  use meter and for installation of the time-of-use meter by the electric

10-2  utility.

10-3    (b) A governmental entity, the provider shall pay all costs for the time-

10-4  of-use meter and for installation of the time-of-use meter by the electric

10-5  utility.

10-6    3.  Not more than one person or entity may sell the energy that is

10-7  delivered to an eligible customer through any one time-of-use meter.

10-8    4.  The provisions of this section do not prohibit:

10-9    (a) An eligible customer from having more than one time-of-use meter

10-10  installed for the same service location; or

10-11  (b) An eligible customer from installing any other meter or equipment

10-12  that is necessary or appropriate to the transaction with the provider, if

10-13  such a meter or equipment is otherwise consistent with system reliability.

10-14  Sec. 24.  1.  An electric utility shall provide all transmission,

10-15  distribution, metering and other components of electric service that are

10-16  necessary for a provider of new electric resources to sell energy, capacity

10-17  and ancillary services to an eligible customer pursuant to the provisions

10-18  of this chapter. An electric utility shall provide each such component of

10-19  electric service pursuant to the tariffs and service agreements filed with

10-20  and approved by the appropriate regulatory authorities having

10-21  jurisdiction over each such component of electric service.

10-22  2.  For each such component of electric service that is within the

10-23  jurisdiction of the commission, the commission shall establish just,

10-24  reasonable and nondiscriminatory rates.

10-25  3.  The provisions of this chapter do not enlarge or expand any

10-26  existing rights under federal law or create any other rights with regard to

10-27  the transmission system of the electric utility.

10-28  4.  When providing service pursuant to this chapter, an electric utility

10-29  is subject to all applicable statutes and regulations of this state and the

10-30  United States.

10-31  Sec. 25.  Not later than 30 days after the end of each calendar

10-32  quarter, the commission shall submit to the legislative commission a

10-33  written report which summarizes for that calendar quarter:

10-34  1.  Each application which was filed with the commission pursuant to

10-35  the provisions of this chapter and which requested approval of a

10-36  proposed transaction between an eligible customer and a provider of new

10-37  electric resources;

10-38  2.  The information that the eligible customer included with the

10-39  application;

10-40  3.  The findings of the commission concerning the effect of the

10-41  proposed transaction on the public interest; and

10-42  4.  Whether the commission approved the application and, if so, the

10-43  effective date of the proposed transaction, the terms and conditions of the

10-44  proposed transaction, and the terms, conditions and payments ordered by

10-45  the commission.

10-46  Sec. 26.  The commission shall adopt regulations to carry out and

10-47  enforce the provisions of this chapter.


11-1    Sec. 27.  Title 58 of NRS is hereby amended by adding thereto a new

11-2  chapter to consist of the provisions set forth as sections 28 to 45, inclusive,

11-3  of this act.

11-4    Sec. 28.  As used in this chapter, unless the context otherwise

11-5  requires, the words and terms defined in sections 29 to 38, inclusive, of

11-6  this act have the meanings ascribed to them in those sections.

11-7    Sec. 29.  “Calendar quarter” means each period of 3 consecutive

11-8  calendar months ending on March 31, June 30, September 30 and

11-9  December 31 in each calendar year.

11-10  Sec. 30.  “Commission” means the public utilities commission of

11-11  Nevada.

11-12  Sec. 31.  “Fund” means the fund for energy assistance and

11-13  conservation created by section 42 of this act.

11-14  Sec. 32.  “Housing division” means the housing division of the

11-15  department of business and industry.

11-16  Sec. 33.  “Municipal utility” includes, without limitation:

11-17  1.  A utility established pursuant to chapter 709 or 710 of NRS.

11-18  2.  Any other utility that is owned, operated or controlled by a county,

11-19  city or other local governmental entity.

11-20  Sec. 34.  “Person” means:

11-21  1.  A natural person;

11-22  2.  Any form of business or social organization and any other

11-23  nongovernmental legal entity, including, without limitation, a

11-24  corporation, partnership, association, trust or unincorporated

11-25  organization;

11-26  3.  A government or an agency or instrumentality of a government,

11-27  including, without limitation, this state or an agency or instrumentality

11-28  of this state; and

11-29  4.  A political subdivision of this state or of any other government or

11-30  an agency or instrumentality of a political subdivision of this state or of

11-31  any other government.

11-32  Sec. 35.  “Public utility” has the meaning ascribed to it in NRS

11-33  704.020 and 704.030.

11-34  Sec. 36.  1.  “Retail customer” means an end-use customer that

11-35  purchases natural gas or electricity for consumption in this state.

11-36  2.  The term includes, without limitation:

11-37  (a) A residential, commercial or industrial end-use customer that

11-38  purchases natural gas or electricity for consumption in this state,

11-39  including, without limitation, an eligible customer that purchases

11-40  electricity for consumption in this state from a provider of new electric

11-41  resources pursuant to the provisions of sections 3 to 26, inclusive, of this

11-42  act.

11-43  (b) A landlord of a mobile home park or owner of a company town

11-44  who is subject to any of the provisions of NRS 704.905 to 704.960,

11-45  inclusive.

11-46  (c) A landlord who pays for natural gas or electricity that is delivered

11-47  through a master meter and who distributes or resells the natural gas or

11-48  electricity to one or more tenants for consumption in this state.


12-1    3.  The term does not include this state, a political subdivision of this

12-2  state or an agency or instrumentality of this state or political subdivision

12-3  of this state when it is an end-use customer that purchases natural gas or

12-4  electricity for consumption in this state, including, without limitation,

12-5  when it is an eligible customer that purchases electricity for consumption

12-6  in this state from a provider of new electric resources pursuant to the

12-7  provisions of sections 3 to 26, inclusive, of this act.

12-8    Sec. 37.  “Universal energy charge” means the charge imposed

12-9  pursuant to section 40 of this act.

12-10  Sec. 38.  “Welfare division” means the welfare division of the

12-11  department of human resources.

12-12  Sec. 39.  1.  The provisions of section 40 of this act do not apply to

12-13  any therm of natural gas or any kilowatt-hour of electricity that a retail

12-14  customer purchases from:

12-15  (a) A rural electric cooperative established pursuant to chapter 81 of

12-16  NRS.

12-17  (b) A general improvement district established pursuant to chapter

12-18  318 of NRS.

12-19  (c) A cooperative association, nonprofit corporation, nonprofit

12-20  association or provider of service which is declared to be a public utility

12-21  pursuant to NRS 704.673 and which provides service only to its members.

12-22  2.  If a retail customer is exempted from paying the universal energy

12-23  charge pursuant to subsection 1, the retail customer may not receive

12-24  money or other assistance from:

12-25  (a) The welfare division pursuant to section 43 of this act for any

12-26  utility service for which the retail customer is exempted from paying the

12-27  universal energy charge; or

12-28  (b) The housing division pursuant to section 44 of this act.

12-29  Sec. 40.  1.  Except as otherwise provided in this section and section

12-30  39 of this act, each retail customer shall pay:

12-31  (a) A universal energy charge of 3.30 mills on each therm of natural

12-32  gas that the retail customer purchases from another person for

12-33  consumption in this state; and

12-34  (b) A universal energy charge of 0.39 mills on each kilowatt-hour of

12-35  electricity that the retail customer purchases from another person for

12-36  consumption in this state.

12-37  2.  The provisions of subsection 1 do not apply to:

12-38  (a) Any therm of natural gas used as a source of energy to generate

12-39  electricity.

12-40  (b) Any kilowatt-hour of electricity used in industries utilizing

12-41  electrolytic-manufacturing processes.

12-42  3.  If a retail customer uses the distribution services of a public utility

12-43  or municipal utility to acquire natural gas or electricity that is subject to

12-44  the universal energy charge, the public utility or municipal utility

12-45  providing the distribution services shall:

12-46  (a) Collect the universal energy charge from each such retail

12-47  customer;

12-48  (b) Ensure that the universal energy charge is set forth as a separate

12-49  item or entry on the bill of each such retail customer; and


13-1    (c) Not later than 30 days after the end of each calendar quarter,

13-2  remit to the commission the total amount of money collected by the

13-3  public utility or municipal utility for the universal energy charge for the

13-4  immediately preceding calendar quarter.

13-5    4.  If a retail customer does not use the distribution services of a

13-6  public utility or municipal utility to acquire natural gas or electricity that

13-7  is subject to the universal energy charge, not later than 30 days after the

13-8  end of each calendar quarter, the retail customer shall remit to the

13-9  commission the total amount of money owed by the retail customer for

13-10  the universal energy charge for the immediately preceding calendar

13-11  quarter.

13-12  5.  If, for any calendar quarter, a single retail customer or multiple

13-13  retail customers under common ownership and control pay, in the

13-14  aggregate, a universal energy charge of more than $25,000 for all

13-15  consumption of natural gas and electricity during the calendar quarter,

13-16  such retail customers are entitled to a refund, for that calendar quarter,

13-17  of the amount of the universal energy charge that exceeds $25,000. To

13-18  receive a refund pursuant to this section, not later than 90 days after the

13-19  end of the calendar quarter for which the refund is requested, such retail

13-20  customers must file with the commission a request for a refund. If a

13-21  request for a refund is filed with the commission:

13-22  (a) The commission shall determine and certify the amount of the

13-23  refund; and

13-24  (b) The refund must be paid as other claims against the state are paid

13-25  from money in the fund.

13-26  Sec. 41.  1.  The commission shall adopt regulations to carry out

13-27  and enforce the provisions of section 40 of this act. Such regulations may

13-28  require public utilities, municipal utilities and retail customers that are

13-29  required to collect or remit money for the universal energy charge to file

13-30  reports and to provide the commission with information relating to

13-31  compliance with the requirements of the universal energy charge.

13-32  2.  In carrying out the provisions of section 40 of this act, the

13-33  commission shall solicit advice from the consumer’s advocate of the

13-34  bureau of consumer protection in the office of the attorney general,

13-35  public utilities and municipal utilities and other knowledgeable persons.

13-36  3.  The commission may conduct audits and investigations of public

13-37  utilities, municipal utilities and retail customers that are required to

13-38  collect or remit money for the universal energy charge, if the commission

13-39  determines that such audits and investigations are necessary to verify

13-40  compliance with the requirements of the universal energy charge. In

13-41  conducting such audits and investigations, the commission may exercise

13-42  any of the investigative powers granted to the commission pursuant to

13-43  chapter 703 of NRS, including, without limitation, the power to issue

13-44  orders to compel the appearance of witnesses and the production of

13-45  books, accounts, papers and records.

13-46  4.  To carry out its powers and duties pursuant to this chapter, the

13-47  commission is entitled to an administrative charge of not more than 3

13-48  percent of the money collected for the universal energy charge. After

13-49  deduction of its administrative charge, the commission shall deposit the


14-1  remaining money collected for the universal energy charge in the state

14-2  treasury for credit to the fund.

14-3    5.  The commission may bring an appropriate action in its own name

14-4  for recovery of any money that a person fails to pay, collect or remit in

14-5  violation of the requirements of the universal energy charge.

14-6    Sec. 42.  1.  There is hereby created as a special revenue fund in the

14-7  state treasury the fund for energy assistance and conservation. The

14-8  welfare division shall administer the fund.

14-9    2.  In addition to the money that must be credited to the fund from the

14-10  universal energy charge, all money received from private or public

14-11  sources to carry out the purposes of this chapter must be deposited in the

14-12  state treasury for credit to the fund.

14-13  3.  The welfare division shall, to the extent practicable, ensure that

14-14  the money in the fund is administered in a manner which is coordinated

14-15  with all other sources of money that are available for energy assistance

14-16  and conservation, including, without limitation, money contributed from

14-17  private sources, money obtained from the Federal Government and

14-18  money obtained from any agency or instrumentality of this state or

14-19  political subdivision of this state.

14-20  4.  The interest and income earned on the money in the fund, after

14-21  deducting any applicable charges, must be credited to the fund. All

14-22  claims against the fund must be paid as other claims against the state are

14-23  paid.

14-24  5.  After deduction of any refunds paid from the fund pursuant to

14-25  section 40 of this act, the money in the fund must be distributed pursuant

14-26  to sections 43 and 44 of this act.

14-27  Sec. 43.  1.  Seventy-five percent of the money in the fund must be

14-28  distributed to the welfare division for programs to assist eligible

14-29  households in paying for natural gas and electricity. The welfare division

14-30  may use not more than 3 percent of the money distributed to it pursuant

14-31  to this section for its administrative expenses.

14-32  2.  Except as otherwise provided in section 39 of this act, after

14-33  deduction for its administrative expenses, the welfare division may use

14-34  the money distributed to it pursuant to this section only to:

14-35  (a) Assist eligible households in paying for natural gas and electricity.

14-36  (b) Carry out activities related to consumer outreach.

14-37  (c) Pay for program design.

14-38  (d) Pay for the annual evaluations conducted pursuant to section 45

14-39  of this act.

14-40  3.  Except as otherwise provided in subsection 4, to be eligible to

14-41  receive assistance from the welfare division pursuant to this section, a

14-42  household must have a household income that is not more than 150

14-43  percent of the federally designated level signifying poverty, as determined

14-44  by the welfare division.

14-45  4.  The welfare division is authorized to render emergency assistance

14-46  to a household if an emergency related to the cost or availability of

14-47  natural gas or electricity threatens the health or safety of one or more of

14-48  the members of the household. Such emergency assistance may be


15-1  rendered upon the good faith belief that the household is otherwise

15-2  eligible to receive assistance pursuant to this section.

15-3    5.  Before July 1, 2002, if a household is eligible to receive assistance

15-4  pursuant to this section, the welfare division shall determine the amount

15-5  of assistance that the household will receive by using the existing

15-6  formulas set forth in the state plan for low-income home energy

15-7  assistance.

15-8    6.  On or after July 1, 2002, if a household is eligible to receive

15-9  assistance pursuant to this section, the welfare division:

15-10  (a) Shall, to the extent practicable, determine the amount of assistance

15-11  that the household will receive by determining the amount of assistance

15-12  that is sufficient to reduce the percentage of the household’s income that

15-13  is spent on natural gas and electricity to the median percentage of

15-14  household income spent on natural gas and electricity statewide.

15-15  (b) May adjust the amount of assistance that the household will

15-16  receive based upon such factors as:

15-17     (1) The income of the household;

15-18     (2) The size of the household;

15-19     (3) The type of energy that the household uses; and

15-20     (4) Any other factor which, in the determination of the welfare

15-21  division, may make the household particularly vulnerable to increases in

15-22  the cost of natural gas or electricity.

15-23  7.  The welfare division shall adopt regulations to carry out and

15-24  enforce the provisions of this section and section 42 of this act.

15-25  8.  In carrying out the provisions of this section, the welfare division

15-26  shall:

15-27  (a) Solicit advice from the housing division and from other

15-28  knowledgeable persons;

15-29  (b) Identify and implement appropriate delivery systems to distribute

15-30  money from the fund and to provide other assistance pursuant to this

15-31  section;

15-32  (c) Coordinate with other federal, state and local agencies that provide

15-33  energy assistance or conservation services to low-income persons and, to

15-34  the extent allowed by federal law and to the extent practicable, use the

15-35  same simplified application forms as those other agencies;

15-36  (d) Establish a process for evaluating the programs conducted

15-37  pursuant to this section;

15-38  (e) Develop a process for making changes to such programs; and

15-39  (f) Engage in annual planning and evaluation processes with the

15-40  housing division as required by section 45 of this act.

15-41  Sec. 44.  1.  Twenty-five percent of the money in the fund must be

15-42  distributed to the housing division for programs of energy conservation,

15-43  weatherization and energy efficiency for eligible households. The

15-44  housing division may use not more than 6 percent of the money

15-45  distributed to it pursuant to this section for its administrative expenses.

15-46  2.  Except as otherwise provided in section 39 of this act, after

15-47  deduction for its administrative expenses, the housing division may use

15-48  the money distributed to it pursuant to this section only to:


16-1    (a) Provide an eligible household with services of basic home energy

16-2  conservation and home energy efficiency or to assist an eligible

16-3  household to acquire such services, including, without limitation,

16-4  services of load management.

16-5    (b) Pay for appropriate improvements associated with energy

16-6  conservation, weatherization and energy efficiency.

16-7    (c) Carry out activities related to consumer outreach.

16-8    (d) Pay for program design.

16-9    (e) Pay for the annual evaluations conducted pursuant to section 45

16-10  of this act.

16-11  3.  Except as otherwise provided in subsection 4, to be eligible to

16-12  receive assistance from the housing division pursuant to this section, a

16-13  household must have a household income that is not more than 150

16-14  percent of the federally designated level signifying poverty, as determined

16-15  by the housing division.

16-16  4.  The housing division is authorized to render emergency assistance

16-17  to a household if the health or safety of one or more of the members of

16-18  the household is threatened because of the structural, mechanical or

16-19  other failure of:

16-20  (a) The unit of housing in which the household dwells; or

16-21  (b) A component or system of the unit of housing in which the

16-22  household dwells.

16-23  Such emergency assistance may be rendered upon the good faith belief

16-24  that the household is otherwise eligible to receive assistance pursuant to

16-25  this section.

16-26  5.  The housing division shall adopt regulations to carry out and

16-27  enforce the provisions of this section.

16-28  6.  In carrying out the provisions of this section, the housing division

16-29  shall:

16-30  (a) Solicit advice from the welfare division and from other

16-31  knowledgeable persons;

16-32  (b) Identify and implement appropriate delivery systems to distribute

16-33  money from the fund and to provide other assistance pursuant to this

16-34  section;

16-35  (c) Coordinate with other federal, state and local agencies that provide

16-36  energy assistance or conservation services to low-income persons and, to

16-37  the extent allowed by federal law and to the extent practicable, use the

16-38  same simplified application forms as those other agencies;

16-39  (d) Encourage other persons to provide resources and services,

16-40  including, to the extent practicable, schools and programs that provide

16-41  training in the building trades and apprenticeship programs;

16-42  (e) Establish a process for evaluating the programs conducted

16-43  pursuant to this section;

16-44  (f) Develop a process for making changes to such programs; and

16-45  (g) Engage in annual planning and evaluation processes with the

16-46  welfare division as required by section 45 of this act.

16-47  Sec. 45.  1.  The welfare division and the housing division jointly

16-48  shall establish an annual plan to coordinate their activities and programs

16-49  pursuant to this chapter. In preparing the annual plan, the divisions


17-1  shall solicit advice from knowledgeable persons. The annual plan must

17-2  include, without limitation, a description of:

17-3    (a) The resources and services being used by each program and the

17-4  efforts that will be undertaken to increase or improve those resources

17-5  and services;

17-6    (b) The efforts that will be undertaken to improve administrative

17-7  efficiency;

17-8    (c) The efforts that will be undertaken to coordinate with other

17-9  federal, state and local agencies, nonprofit organizations and any private

17-10  business or trade organizations that provide energy assistance or

17-11  conservation services to low-income persons;

17-12  (d) The measures concerning program design that will be undertaken

17-13  to improve program effectiveness; and

17-14  (e) The efforts that will be taken to address issues identified during the

17-15  most recently completed annual evaluation conducted pursuant to

17-16  subsection 2.

17-17  2.  The welfare division and the housing division jointly shall:

17-18  (a) Conduct an annual evaluation of the programs that each division

17-19  carries out pursuant to sections 43 and 44 of this act;

17-20  (b) Solicit advice from the commission as part of the annual

17-21  evaluation; and

17-22  (c) Prepare a report concerning the annual evaluation and submit the

17-23  report to the governor, the legislative commission and the interim finance

17-24  committee.

17-25  3.  The report prepared pursuant to subsection 2 must include,

17-26  without limitation:

17-27  (a) A description of the objectives of each program;

17-28  (b) An analysis of the effectiveness and efficiency of each program in

17-29  meeting the objectives of the program;

17-30  (c) The amount of money distributed from the fund for each program

17-31  and a detailed description of the use of that money for each program;

17-32  (d) An analysis of the coordination between the divisions concerning

17-33  each program; and

17-34  (e) Any changes planned for each program.

17-35  Sec. 46.  Chapter 703 of NRS is hereby amended by adding thereto a

17-36  new section to read as follows:

17-37  1.  In any contested case pending before the commission, the

17-38  regulatory operations staff of the commission may, without filing a

17-39  petition for leave to intervene:

17-40  (a) Appear and participate in the contested case as an independent

17-41  party; and

17-42  (b) Be represented by legal counsel in the contested case.

17-43  2.  A commissioner may not discuss with a member of the regulatory

17-44  operations staff of the commission any substantive issues of fact or law

17-45  concerning a contested case pending before the commission except upon

17-46  notice to all parties to the contested case and an opportunity for all such

17-47  parties to participate.

17-48  3.  As used in this section, “contested case” has the meaning ascribed

17-49  to it in NRS 233B.032.


18-1    Sec. 47.  NRS 703.030 is hereby amended to read as follows:

18-2    703.030  1.  The commission consists of [three] five commissioners

18-3  appointed by the governor . [for terms of] After the initial terms, the term

18-4  of each commissioner is 4 years.

18-5    2.  The governor shall appoint [as members of the commission

18-6  persons] :

18-7    (a) One commissioner to represent the general public.

18-8    (b) Four commissioners who have at least 2 years of experience in one

18-9  or more of the following fields:

18-10  [(a)] (1) Accounting.

18-11  [(b)] (2) Business administration.

18-12  [(c)] (3) Finance or economics.

18-13  [(d)] (4) Administrative law.

18-14  [(e)] (5) Professional engineering.

18-15  Not more than two of the commissioners appointed pursuant to this

18-16  paragraph may be from the same field of experience.

18-17  3.  Not more than [two] three of the commissioners may be [:

18-18  (a) Members] members of the same political party.

18-19  [(b) From the same field of experience.]

18-20  4.  A vacancy on the commission must be filled for the remainder of

18-21  the unexpired term in the same manner as the original appointment.

18-22  Sec. 48.  NRS 703.110 is hereby amended to read as follows:

18-23  703.110  1.  [The] Except as otherwise provided in subsection 2, a

18-24  majority of the commissioners [have] has full power to act in all matters

18-25  within [their jurisdiction.] the jurisdiction of the commission and shall

18-26  exercise all the powers of the commission.

18-27  2.  If [two] a majority of the commissioners are disqualified or if there

18-28  are [two] vacancies within the [commission,] offices of a majority of the

18-29  commissioners, the remaining commissioners or, if only one

18-30  commissioner is remaining, the remaining commissioner [or] has full

18-31  power to act in all matters within the jurisdiction of the commission and

18-32  shall exercise all the powers of the commission.

18-33  3.  Except as otherwise provided in this chapter, all hearings and

18-34  meetings conducted by the commission must be open to the public.

18-35  Sec. 49.  NRS 703.130 is hereby amended to read as follows:

18-36  703.130  1.  The commission shall appoint a deputy commissioner

18-37  who shall serve in the unclassified service of the state.

18-38  2.  The commission shall appoint a secretary who shall perform such

18-39  administrative and other duties as are prescribed by the commission. The

18-40  commission shall also appoint an assistant secretary.

18-41  3.  The commission may employ such other clerks, experts or engineers

18-42  as may be necessary.

18-43  4.  Except as otherwise provided in subsection 5, the commission:

18-44  (a) May appoint one or more hearing officers for a period specified by

18-45  the commission to conduct proceedings or hearings that may be conducted

18-46  by the commission pursuant to chapters 704, 704A, 705, 708 and 711 of

18-47  NRS [.] and sections 3 to 26, inclusive, and sections 40 and 41 of this act.

18-48  (b) Shall prescribe by regulation the procedure for appealing a decision

18-49  of a hearing officer to the commission.


19-1    5.  The commission shall not appoint a hearing officer to conduct

19-2  proceedings or hearings :

19-3    (a) In any matter pending before the commission pursuant to sections

19-4  8 to 18, inclusive, of [this act.] chapter 16, Statutes of Nevada 2001; or

19-5    (b) In any matter pending before the commission pursuant to NRS

19-6  704.070 to 704.110, inclusive, and sections 63 to 68, inclusive, of this act

19-7  in which an electric utility has filed a general rate application or an

19-8  application to clear its deferred accounts.

19-9    6.  As used in this section, “electric utility” has the meaning ascribed

19-10  to it in section 19 of chapter 16, Statutes of Nevada 2001.

19-11  Sec. 50.  NRS 703.147 is hereby amended to read as follows:

19-12  703.147  1.  The public utilities commission regulatory fund is hereby

19-13  created as a special revenue fund. Except as otherwise provided in section

19-14  12 of [this act,] chapter 519, Statutes of Nevada 2001, and section 41 of

19-15  this act, all money collected by the commission pursuant to law must be

19-16  deposited in the state treasury for credit to the fund. Money collected for

19-17  the use of the consumer’s advocate of the bureau of consumer protection in

19-18  the office of the attorney general must be transferred pursuant to the

19-19  provisions of subsection 8 of NRS 704.035.

19-20  2.  Money in the fund which belongs to the commission may be used

19-21  only to defray the costs of:

19-22  (a) Maintaining staff and equipment to regulate adequately public

19-23  utilities and other persons subject to the jurisdiction of the commission.

19-24  (b) Participating in all rate cases involving those persons.

19-25  (c) Audits, inspections, investigations, publication of notices, reports

19-26  and retaining consultants connected with that regulation and participation.

19-27  (d) The salaries, travel expenses and subsistence allowances of the

19-28  members of the commission.

19-29  3.  All claims against the fund must be paid as other claims against the

19-30  state are paid.

19-31  4.  The commission must furnish upon request a statement showing the

19-32  balance remaining in the fund as of the close of the preceding fiscal year.

19-33  Sec. 51.  NRS 703.164 is hereby amended to read as follows:

19-34  703.164  1.  The commission may employ, or retain on a contract

19-35  basis, legal counsel who shall:

19-36  (a) Except as otherwise provided in subsection 2, be counsel and

19-37  attorney for the commission in all actions, proceedings and hearings.

19-38  (b) Prosecute in the name of the [public utilities commission of Nevada]

19-39  commission all civil actions for the enforcement of chapters 704, 704A,

19-40  705 and 708 of NRS and sections 3 to 26, inclusive, and sections 40 and

19-41  41 of this act and for the recovery of any penalty or forfeiture provided for

19-42  therein.

19-43  (c) Generally aid the commission in the performance of its duties and

19-44  the enforcement of chapters 704, 704A, 705 and 708 of NRS [.] and

19-45  sections 3 to 26, inclusive, and sections 40 and 41 of this act.

19-46  2.  Each district attorney shall:

19-47  (a) Prosecute any violation of chapter 704, 704A, 705, 708 or 711 of

19-48  NRS for which a criminal penalty is provided and which occurs in his

19-49  county.


20-1    (b) Aid in any investigation, prosecution, hearing or trial held under the

20-2  provisions of chapter 704, 704A, 705, 708 or 711 of NRS and, at the

20-3  request of the commission or its legal counsel, act as counsel and attorney

20-4  for the commission.

20-5    3.  The attorney general shall, if the district attorney fails or refuses to

20-6  do so, prosecute all violations of the laws of this state by public utilities

20-7  under the jurisdiction of the commission and their officers, agents and

20-8  employees.

20-9    4.  The attorney general is not precluded from appearing in or moving

20-10  to intervene in any action and representing the interest of the State of

20-11  Nevada in any action in which the commission is a party and is represented

20-12  by independent counsel.

20-13  Sec. 52.  NRS 703.196 is hereby amended to read as follows:

20-14  703.196  1.  Any books, accounts, records, minutes, papers and

20-15  property of any public utility that are subject to examination pursuant to

20-16  NRS 703.190 or 703.195 and are made available to the commission, any

20-17  officer or employee of the commission, the bureau of consumer protection

20-18  in the office of the attorney general or any other person under the condition

20-19  that the disclosure of such information to the public be withheld or

20-20  otherwise limited, must not be disclosed to the public unless the

20-21  commission first determines that the disclosure is justified.

20-22  2.  The commission shall take such actions as are necessary to protect

20-23  the confidentiality of such information, including, without limitation:

20-24  (a) Granting such protective orders as it deems necessary; and

20-25  (b) Holding closed hearings to receive or examine such information.

20-26  3.  If the commission closes a hearing to receive or examine such

20-27  information, it shall:

20-28  (a) Restrict access to the records and transcripts of such hearings

20-29  without the prior approval of the commission or an order of a court of

20-30  competent jurisdiction authorizing access to the records or transcripts; and

20-31  (b) Prohibit any participant at such a hearing from disclosing such

20-32  information without the prior authorization of the commission.

20-33  4.  A representative of the regulatory operations staff of the

20-34  commission and the bureau of consumer protection:

20-35  (a) May attend any closed hearing held pursuant to this section; and

20-36  (b) Have access to any records or other information determined to be

20-37  confidential pursuant to this section.

20-38  5.  The commission shall consider in an open meeting whether the

20-39  information reviewed or examined in a closed hearing may be disclosed

20-40  without revealing the confidential subject matter of the information. To the

20-41  extent the commission determines the information may be disclosed, the

20-42  information must become a part of the records available to the public.

20-43  Information which the commission determines may not be disclosed must

20-44  be kept under seal.

20-45  Sec. 53.  NRS 703.197 is hereby amended to read as follows:

20-46  703.197  1.  The commission may collect fees for the filing of any

20-47  official document required by this chapter and chapters 704, 704A, 705 and

20-48  708 of NRS and sections 3 to 26, inclusive, of this act or by a regulation

20-49  of the commission.


21-1    2.  Filing fees may not exceed:

21-2    (a) For applications, $200.

21-3    (b) For petitions seeking affirmative relief, $200.

21-4    (c) For each tariff page which requires public notice and is not attached

21-5  to an application, $10. If more than one page is filed at one time, the total

21-6  fee may not exceed the cost of notice and publication.

21-7    (d) For all other documents which require public notice, $10.

21-8    3.  If an application or other document is rejected by the commission

21-9  because it is inadequate or inappropriate, the filing fee must be returned.

21-10  4.  The commission may not charge any fee for filing [a] :

21-11  (a) A complaint.

21-12  (b) A request for a refund pursuant to section 40 of this act.

21-13  Sec. 54.  NRS 703.320 is hereby amended to read as follows:

21-14  703.320  1.  In any matter pending before the commission, if a hearing

21-15  is required by a specific statute or is otherwise required by the commission,

21-16  the commission shall give notice of the pendency of the matter to all

21-17  persons entitled to notice of the hearing. The commission shall by

21-18  regulation specify:

21-19  (a) The manner of giving notice in each type of proceeding; and

21-20  (b) The persons entitled to notice in each type of proceeding.

21-21  2.  The commission shall not dispense with a hearing [in] :

21-22  (a) In any matter pending before the commission pursuant to sections 8

21-23  to 18, inclusive, of [this act.] chapter 16, Statutes of Nevada 2001; or

21-24  (b) Except as otherwise provided in subsection 4 of NRS 704.100, in

21-25  any matter pending before the commission pursuant to NRS 704.070 to

21-26  704.110, inclusive, and sections 63 to 68, inclusive, of this act in which

21-27  an electric utility has filed a general rate application or an application to

21-28  clear its deferred accounts.

21-29  3.  In any other matter pending before the commission, the commission

21-30  may dispense with a hearing and act upon the matter pending unless,

21-31  within 10 days after the date of the notice of pendency, a person entitled to

21-32  notice of the hearing files with the commission a request that the hearing

21-33  be held. If such a request for a hearing is filed, the commission shall give at

21-34  least 10 days’ notice of the hearing.

21-35  4.  As used in this section, “electric utility” has the meaning ascribed

21-36  to it in section 19 of chapter 16, Statutes of Nevada 2001.

21-37  Sec. 55.  NRS 703.330 is hereby amended to read as follows:

21-38  703.330  1.  A complete record must be kept of all hearings before the

21-39  commission . [, and all] All testimony at such hearings must be taken

21-40  down by the stenographer appointed by the commission, or, under the

21-41  direction of any competent person appointed by the commission, must be

21-42  reported by sound recording equipment in the manner authorized for

21-43  reporting testimony in district courts. The testimony reported by a

21-44  stenographer must be transcribed, and the transcript filed with the record in

21-45  the matter. The commission may by regulation provide for the transcription

21-46  or safekeeping of sound recordings. Cost of recording and transcribing

21-47  testimony at any hearing, except those hearings ordered pursuant to NRS

21-48  703.310 , must be paid by the applicant. If a complaint is made pursuant to

21-49  NRS 703.310 by a customer or by a political subdivision of the state or


22-1  municipal organization, the complainant is not liable for any costs.

22-2  Otherwise, if there are several applicants or parties to any hearing, the

22-3  commission may apportion the costs among them in its discretion.

22-4    2.  [Whenever any complaint] If a petition is served upon the

22-5  commission as provided in NRS 703.373 for the bringing of an action

22-6  against the commission, before the action is reached for trial, the

22-7  commission shall file a certified copy of all proceedings and testimony

22-8  taken with the clerk of the court in which the action is pending.

22-9    3.  A copy of the proceedings and testimony must be furnished to any

22-10  party, on payment of a reasonable amount, to be fixed by the commission,

22-11  and the amount must be the same for all parties.

22-12  4.  The provisions of this section do not prohibit the commission from

22-13  [restricting] :

22-14  (a) Restricting access to the records and transcripts of a hearing

22-15  pursuant to paragraph (a) of subsection 3 of NRS 703.196.

22-16  (b) Protecting the confidentiality of information pursuant to section

22-17  20 or 21 of this act.

22-18  Sec. 56.  NRS 703.374 is hereby amended to read as follows:

22-19  703.374  1.  A court of competent jurisdiction, after hearing, may

22-20  issue an injunction suspending or staying any final order of the commission

22-21  if:

22-22  (a) The applicant has filed a motion for a preliminary injunction;

22-23  (b) The applicant has served the motion on the commission and other

22-24  interested parties within 20 days after the rendition of the order on which

22-25  the complaint is based;

22-26  (c) The court finds there is a reasonable likelihood that the applicant

22-27  will prevail on the merits of the matter and will suffer irreparable injury if

22-28  injunctive relief is not granted; and

22-29  (d) The applicant files a bond or other undertaking to secure the adverse

22-30  parties in such manner as the court finds sufficient.

22-31  2.  The decision of the commission on each matter considered shall be

22-32  deemed reasonable and just until set aside by the court . [, and in] In all

22-33  actions for an injunction or [otherwise] for any other relief, the burden of

22-34  proof is upon the party attacking or resisting the order of the commission to

22-35  show by clear and satisfactory evidence that the order is unlawful [,] or

22-36  unreasonable . [, as the case may be.]

22-37  3.  If an injunction is granted by the court and the order complained of

22-38  is one which [permanently suspends] :

22-39  (a) Disapproves a public utility’s proposed changes in a schedule of

22-40  rates [and charges or a] , or any part thereof , [filed by any public utility]

22-41  pursuant to NRS 704.070 to 704.110, inclusive, [or which otherwise] and

22-42  sections 63 to 68, inclusive, of this act; or

22-43  (b) Otherwise prevents the proposed changes in the schedule , or any

22-44  part thereof , from taking effect,

22-45  the public utility complaining may [keep in effect or put] place into

22-46  effect [, as the case may be, the suspended] the proposed changes in the

22-47  schedule , or any part thereof , pending final determination by the court

22-48  having jurisdiction, by filing a bond with the court in such an amount as

22-49  the court may fix, conditioned upon the refund to persons entitled to the


23-1  excess amount if the [rate or rates so suspended] proposed changes in the

23-2  schedule, or any part thereof, are finally determined by the court to be

23-3  excessive.

23-4    Sec. 57.  NRS 703.377 is hereby amended to read as follows:

23-5    703.377  1.  [No] Any certificate of public convenience and necessity,

23-6  permit or license issued or transferred in accordance with the [terms]

23-7  provisions of NRS [704.005] 704.001 to 704.751, inclusive, is [either] not

23-8  a franchise or irrevocable.

23-9    2.  Upon receipt of a written complaint or on its own motion, the

23-10  commission may, after investigation and hearing, revoke any certificate,

23-11  permit or license, [but as to] except that the commission may not revoke

23-12  the certificate of a public utility [only if] unless the commission has

23-13  arranged for another public utility to provide the service for which the

23-14  certificate was granted.

23-15  3.  [The proceedings thereafter are governed by] If the commission

23-16  revokes any certificate, permit or license, the person who held the

23-17  certificate, permit or license may seek judicial review pursuant to the

23-18  provisions of NRS 703.373 to 703.376, inclusive.

23-19  Sec. 58.  Chapter 704 of NRS is hereby amended by adding thereto the

23-20  provisions set forth as sections 59 to 68, inclusive, of this act.

23-21  Sec. 59.  “Biomass” means any organic matter that is available on a

23-22  renewable basis, including, without limitation:

23-23  1.  Agricultural crops and agricultural wastes and residues;

23-24  2.  Wood and wood wastes and residues;

23-25  3.  Animal wastes;

23-26  4.  Municipal wastes; and

23-27  5.  Aquatic plants.

23-28  Sec. 60.  “Consumer’s advocate” means the consumer’s advocate of

23-29  the bureau of consumer protection in the office of the attorney general.

23-30  Sec. 61.  “Renewable energy” has the meaning ascribed to it in

23-31  section 7 of chapter 519, Statutes of Nevada 2001.

23-32  Sec. 62.  1.  For the purposes of protecting the health of residential

23-33  customers who receive gas, water or electricity from public utilities, the

23-34  commission shall adopt or amend regulations that:

23-35  (a) Establish the criteria that will be used to determine when a public

23-36  utility is required to postpone its termination of utility service to the

23-37  residence of a residential customer who has failed to pay for such

23-38  service. Such criteria may be based in part upon the residential

23-39  customer’s ability to pay.

23-40  (b) Require a public utility to postpone its termination of utility service

23-41  to the residence of a residential customer who has failed to pay for such

23-42  service if the residential customer satisfies the criteria established by the

23-43  commission and termination of the utility service is reasonably likely to

23-44  threaten the health of an occupant of the residence of the residential

23-45  customer.

23-46  2.  In addition to the regulations adopted or amended pursuant to

23-47  subsection 1, for the purposes of regulating public utilities that provide

23-48  gas, water or electricity to landlords who pay for the utility service and

23-49  who distribute or resell the gas, water or electricity to one or more


24-1  residential tenants, the commission shall adopt or amend regulations to

24-2  require a public utility to use its best efforts to post, in a conspicuous

24-3  location, notice of the intent of the public utility to terminate utility

24-4  service because the landlord has failed to pay for such service. Such

24-5  notice must provide sufficient information to allow residential tenants or

24-6  their occupants to contact the public utility if termination of the utility

24-7  service is reasonably likely to threaten the health of an occupant of the

24-8  residence of a residential tenant.

24-9    3.  A public utility shall not terminate utility service for gas, water or

24-10  electricity without complying with the regulations adopted by the

24-11  commission pursuant to this section.

24-12  4.  As used in this section:

24-13  (a) “Gas” includes, without limitation, liquefied petroleum gas and

24-14  natural gas.

24-15  (b) “Landlord” means a landlord who is subject, in whole or in part,

24-16  to the provisions of chapter 118A or 118B of NRS.

24-17  Sec. 63.  As used in NRS 704.070 to 704.110, inclusive, and sections

24-18  63 to 68, inclusive, of this act, unless the context otherwise requires, the

24-19  words and terms defined in sections 64, 65 and 66 of this act have the

24-20  meanings ascribed to them in those sections.

24-21  Sec. 64.  “Application to make changes in any schedule” and

24-22  “application” include, without limitation:

24-23  1.  A general rate application;

24-24  2.  An application to recover the increased cost of purchased fuel,

24-25  purchased power, or natural gas purchased for resale; and

24-26  3.  An application to clear deferred accounts.

24-27  Sec. 65.  “Rate” means any individual or joint rate, toll or charge

24-28  imposed by a public utility for a service performed or product furnished

24-29  by the public utility.

24-30  Sec. 66.  “Schedule” means any schedule that establishes or

24-31  otherwise sets the rates for a public utility and any individual or joint

24-32  rule, regulation, practice, classification or measurement that in any

24-33  manner affects those rates.

24-34  Sec. 67.  For the purposes of NRS 704.070 to 704.110, inclusive, and

24-35  sections 63 to 68, inclusive, of this act, a public utility shall be deemed to

24-36  make changes in a schedule if the public utility implements a new

24-37  schedule or amends an existing schedule.

24-38  Sec. 68.  1.  The commission shall conduct a consumer session to

24-39  solicit comments from the public in any matter pending before the

24-40  commission pursuant to NRS 704.070 to 704.110, inclusive, and sections

24-41  63 to 68, inclusive, of this act in which:

24-42  (a) A public utility has filed a general rate application, an application

24-43  to recover the increased cost of purchased fuel, purchased power, or

24-44  natural gas purchased for resale or an application to clear its deferred

24-45  accounts; and

24-46  (b) The changes proposed in the application will result in an increase

24-47  in annual gross operating revenue, as certified by the applicant, in an

24-48  amount that will exceed $50,000 or 10 percent of the applicant’s annual

24-49  gross operating revenue, whichever is less.


25-1    2.  In addition to the case-specific consumer sessions required by

25-2  subsection 1, the commission shall, during each calendar year, conduct

25-3  at least one general consumer session in the county with the largest

25-4  population in this state and at least one general consumer session in the

25-5  county with the second largest population in this state. At each general

25-6  consumer session, the commission shall solicit comments from the public

25-7  on issues concerning public utilities. Not later than 60 days after each

25-8  general consumer session, the commission shall submit the record from

25-9  the general consumer session to the legislative commission.

25-10  Sec. 69.  NRS 704.005 is hereby amended to read as follows:

25-11  704.005  As used in this chapter, unless the context otherwise requires,

25-12  the words and terms defined in NRS 704.010 to 704.030, inclusive, and

25-13  sections 59 and 60 of this act have the meanings ascribed to them in those

25-14  sections.

25-15  Sec. 70.  NRS 704.033 is hereby amended to read as follows:

25-16  704.033  1.  The commission shall levy and collect an annual

25-17  assessment from all public utilities subject to the jurisdiction of the

25-18  commission.

25-19  2.  Except as otherwise provided in subsection 3, the annual assessment

25-20  must be:

25-21  (a) For the use of the commission, not more than 3.50 mills; and

25-22  (b) For the use of the consumer’s advocate , [of the bureau of consumer

25-23  protection in the office of the attorney general,] not more than

25-24  0.75 mills,

25-25  on each dollar of gross operating revenue derived from the intrastate

25-26  operations of such utilities in the State of Nevada, except that the minimum

25-27  assessment in any 1 year must be $10. The total annual assessment must be

25-28  not more than 4.25 mills.

25-29  3.  For railroads the total annual assessment must be the amount levied

25-30  for the use of the commission pursuant to paragraph (a) of subsection 2.

25-31  The levy for the use of the consumer’s advocate must not be assessed

25-32  against railroads.

25-33  4.  The gross operating revenue of the utilities must be determined for

25-34  the preceding calendar year. In the case of:

25-35  (a) Telephone utilities, except as otherwise provided in paragraph (c),

25-36  the revenue shall be deemed to be all intrastate revenues that are

25-37  considered by the commission for the purpose of establishing rates.

25-38  (b) Railroads, the revenue shall be deemed to be the revenue received

25-39  only from freight and passenger intrastate movements.

25-40  (c) All public utilities, the revenue does not include the proceeds of any

25-41  commodity, energy or service furnished to another public utility for resale.

25-42  Sec. 71.  NRS 704.035 is hereby amended to read as follows:

25-43  704.035  1.  On or before June 1 of each year, the commission shall

25-44  mail revenue report forms to all public utilities under its jurisdiction, to the

25-45  address of those utilities on file with the commission. The revenue report

25-46  form serves as notice of the commission’s intent to assess the utilities, but

25-47  failure to notify any utility does not invalidate the assessment with respect

25-48  thereto.


26-1    2.  Each public utility subject to the provisions of NRS 704.033 shall

26-2  complete the revenue report referred to in subsection 1, compute the

26-3  assessment and return the completed revenue report to the commission

26-4  accompanied by payment of the assessment and any penalty due, pursuant

26-5  to the provisions of subsection 5.

26-6    3.  The assessment is due on July 1 of each year, but may, at the option

26-7  of the public utility, be paid quarterly on July 1, October 1, January 1 and

26-8  April 1.

26-9    4.  The assessment computed by the utility is subject to review and

26-10  audit by the commission, and the amount of the assessment may be

26-11  adjusted by the commission as a result of the audit and review.

26-12  5.  Any public utility failing to pay the assessment provided for in NRS

26-13  704.033 on or before August 1, or if paying quarterly, on or before

26-14  August 1, October 1, January 1 or April 1, shall pay, in addition to such

26-15  assessment, a penalty of 1 percent of the total unpaid balance for each

26-16  month or portion thereof that the assessment is delinquent, or $10,

26-17  whichever is greater, but no penalty may exceed $1,000 for each

26-18  delinquent payment.

26-19  6.  When a public utility sells, transfers or conveys substantially all of

26-20  its assets or certificate of public convenience and necessity, the

26-21  commission shall determine, levy and collect the accrued assessment for

26-22  the current year not later than 30 days after the sale, transfer or

26-23  conveyance, unless the transferee has assumed liability for the assessment.

26-24  For purposes of this subsection the jurisdiction of the commission over the

26-25  selling, transferring or conveying public utility continues until it has paid

26-26  the assessment.

26-27  7.  The commission may bring an appropriate action in its own name

26-28  for the collection of any assessment and penalty which is not paid as

26-29  provided in this section.

26-30  8.  The commission shall, on a quarterly basis, transfer to the account

26-31  for the consumer’s advocate [of the bureau of consumer protection in the

26-32  office of the attorney general] that portion of the assessments collected

26-33  which belongs to the consumer’s advocate.

26-34  Sec. 72.  NRS 704.070 is hereby amended to read as follows:

26-35  704.070  Unless exempt under the provisions of NRS 704.075 ,

26-36  704.095 or 704.097:

26-37  1.  [Every] Each public utility shall file with the commission, within a

26-38  time to be fixed by the commission, a copy of all schedules [which] that

26-39  are currently in force for the public utility. Such schedules must be open

26-40  to public inspection . [, showing all rates, tolls and charges which it has

26-41  established and which are in force at the time for any service performed or

26-42  product furnished in connection therewith by any public utility controlled

26-43  and operated by it.

26-44  2.  All rules or regulations that in any manner affect the rates charged

26-45  or to be charged for any service or product must be filed with that

26-46  schedule.]

26-47  2.  A copy of each schedule that is currently in force for the public

26-48  utility, or so much of the schedule as the commission deems necessary

26-49  for inspection by the public, must be:


27-1    (a) Printed in plain type and posted in each office of the public utility

27-2  where payments are made to the public utility by its customers; and

27-3    (b) Open to inspection by the public and in such form and place as to

27-4  be readily accessible to and conveniently inspected by the public.

27-5    Sec. 73.  NRS 704.075 is hereby amended to read as follows:

27-6    704.075  1.  As used in this section, with respect to the sale of natural

27-7  gas:

27-8    (a) “Generating customer” means a customer who generates electricity

27-9  by burning natural gas.

27-10  (b) “Industrial customer” means a customer engaged primarily in

27-11  manufacturing or processing which changes raw or unfinished materials

27-12  into another form or creates another product.

27-13  (c) “Large commercial customer” means a customer whose

27-14  requirements equal or exceed [50 thousand] 50,000 cubic feet of natural

27-15  gas per day on any day and which is an institution, an agency of federal,

27-16  state or local government, or engaged primarily in renting out offices or

27-17  other commercial space, in providing lodging or in the sale of other goods

27-18  or services.

27-19  2.  The commission shall establish standards for the setting, increase or

27-20  decrease of rates [and charges] for natural gas to generating, industrial and

27-21  large commercial customers. These standards must authorize increases or

27-22  decreases on less than 30 days’ notice. Establishing different classes of

27-23  customers, and charging different rates to customers of the same class, for

27-24  these customers do not violate this chapter.

27-25  3.  The commission may, for sales to generating, industrial and large

27-26  commercial customers:

27-27  (a) Exempt the [filing of] rates for natural gas from those provisions of

27-28  NRS [704.080, 704.090,] 704.070, 704.100 and 704.110 [which it] that the

27-29  commission determines are not needed to protect the public interest.

27-30  (b) Authorize the establishment of different classes of customer or the

27-31  charging of different rates for customers of the same class, based on value

27-32  of the service and on the customer’s ability to change from one fuel to

27-33  another.

27-34  Sec. 74.  NRS 704.100 is hereby amended to read as follows:

27-35  704.100  Except as otherwise provided in NRS 704.075 or as may

27-36  otherwise be provided by the commission pursuant to NRS 704.095 [,

27-37  704.097 or 704.275:

27-38  1.  No changes may be made] or 704.097:

27-39  1.  A public utility shall not make changes in any schedule, [including

27-40  schedules of joint rates, or in the rules or regulations affecting any rates or

27-41  charges, except upon 30 days’ notice to the commission, and all changes

27-42  must be plainly indicated, or by filing new schedules in lieu thereof 30

27-43  days before the time the schedules are to take effect. The commission,

27-44  upon application of any public utility, may prescribe a shorter time within

27-45  which a reduction may be made.

27-46  2.  Copies] unless the public utility:

27-47  (a) Files with the commission an application to make the proposed

27-48  changes and the commission approves the proposed changes pursuant to

27-49  NRS 704.110; or


28-1    (b) Files the proposed changes with the commission using a letter of

28-2  advice in accordance with the provisions of subsection 4.

28-3    2.  A public utility shall post copies of all proposed[,] schedules and

28-4  all new or amended schedules [must be filed and posted in the offices of

28-5  public utilities as required for original schedules.] in the same offices and

28-6  in substantially the same form, manner and places as required by NRS

28-7  704.070 for the posting of copies of schedules that are currently in force.

28-8    3.  A public utility may not set forth as justification for a rate increase

28-9  any items of expense or rate base [which] that previously have been

28-10  considered and disallowed by the commission, [only if] unless those items

28-11  are clearly identified in the application and new facts or considerations of

28-12  policy for each item are advanced in the application to justify a reversal of

28-13  the [commission’s] prior decision[.

28-14  4.  The commission shall determine whether a hearing must be held

28-15  when] of the commission.

28-16  4.  Except as otherwise provided in subsection 5, if the proposed

28-17  change in any schedule [stating a new or revised individual or joint rate,

28-18  fare or charge, or any new or revised individual or joint regulation or

28-19  practice affecting any rate, fare or charge,] does not change any rate or

28-20  will result in an increase in annual gross operating revenue , as certified by

28-21  the [applicant of $2,500 or less.] public utility, in an amount that does not

28-22  exceed $2,500:

28-23  (a) The public utility may file the proposed change with the

28-24  commission using a letter of advice in lieu of filing an application; and

28-25  (b) The commission shall determine whether it should dispense with a

28-26  hearing regarding the proposed change.

28-27  5.  If the applicant is a public utility furnishing telephone service and

28-28  the proposed change in any schedule will result in an increase in annual

28-29  gross operating revenue, as certified by the applicant, in an amount that

28-30  does not exceed $50,000 or 10 percent of the applicant’s annual gross

28-31  operating revenue, whichever is less, the commission shall determine

28-32  whether it should dispense with a hearing regarding the proposed

28-33  change.

28-34  6.  In making the determination pursuant to subsection 4 or 5, the

28-35  commission shall first consider all timely written protests, any presentation

28-36  that the regulatory operations staff of the commission may desire to

28-37  present, the application or letter of advice of the public utility and any

28-38  other matters deemed relevant by the commission.

28-39  Sec. 75.  NRS 704.110 is hereby amended to read as follows:

28-40  704.110  Except as otherwise provided in NRS 704.075 or as may

28-41  otherwise be provided by the commission pursuant to NRS 704.095 or

28-42  704.097:

28-43  1.  [Whenever there is filed] If a public utility files with the

28-44  commission an application to make changes in any schedule [stating a

28-45  new or revised individual or joint rate or charge, or any new or revised

28-46  individual or joint regulation or practice affecting any rate or charge, or

28-47  any schedule resulting] , including, without limitation, changes that will

28-48  result in a discontinuance, modification or restriction of service, the

28-49  commission [may, upon complaint or upon its own motion without


29-1  complaint, at once, without answer or formal pleading by the interested

29-2  utility, investigate or, upon reasonable notice, conduct a hearing

29-3  concerning] shall investigate the propriety of the [rate, charge,

29-4  classification, regulation, discontinuance, modification, restriction or

29-5  practice.

29-6    2.  Pending the investigation or hearing and the decision thereon, the

29-7  commission, upon delivering to the utility affected thereby a statement in

29-8  writing of its reasons for the suspension, may suspend the operation of the

29-9  schedule and defer the use of the rate, charge, classification, regulation,

29-10  discontinuance, modification, restriction or practice. If the rate, charge,

29-11  classification, regulation, discontinuance, modification, restriction or

29-12  practice is part of:

29-13  (a) A filing made pursuant to subsection 7, the suspension must not be

29-14  effective for more than 90 days beyond the time when the rate, charge,

29-15  classification, regulation, discontinuance, modification, restriction or

29-16  practice would otherwise go into effect.

29-17  (b) Any other filing made pursuant to this section, the suspension must

29-18  not be effective for more than 150 days beyond the time when the rate,

29-19  charge, classification, regulation, discontinuance, modification, restriction

29-20  or practice would otherwise go into effect.

29-21  3.  Whenever there is filed] proposed changes to determine whether to

29-22  approve or disapprove the proposed changes. If an electric utility files

29-23  such an application and the application is a general rate application or

29-24  an application to clear its deferred accounts, the consumer’s advocate

29-25  shall be deemed a party of record.

29-26  2.  Except as otherwise provided in subsection 3, if a public utility

29-27  files with the commission an application to make changes in any

29-28  schedule, not later than 180 days after the date on which the application

29-29  is filed, the commission shall issue a written order approving or

29-30  disapproving, in whole or in part, the proposed changes.

29-31  3.  If a public utility files with the commission [any schedule stating an

29-32  increased individual or joint rate or charge for service or equipment,] a

29-33  general rate application, the public utility shall submit with its application

29-34  a statement showing the recorded results of revenues, expenses,

29-35  investments and costs of capital for its most recent 12 months for which

29-36  data were available when the application was prepared. [During any

29-37  hearing concerning the increased rates or charges determined by the

29-38  commission to be necessary,] In determining whether to approve or

29-39  disapprove any increased rates, the commission shall consider evidence in

29-40  support of the increased rates [or charges] based upon actual recorded

29-41  results of operations for the same 12 months, adjusted for increased

29-42  revenues, any increased investment in facilities, increased expenses for

29-43  depreciation, certain other operating expenses as approved by the

29-44  commission and changes in the costs of securities which are known and are

29-45  measurable with reasonable accuracy at the time of filing and which will

29-46  become effective within 6 months after the last month of those 12 months,

29-47  but [no new rates or charges may be placed] the public utility shall not

29-48  place into effect any increased rates until the changes have been

29-49  experienced and certified by the public utility to the commission [.] and


30-1  the commission has approved the increased rates. The commission shall

30-2  also consider evidence supporting expenses for depreciation, calculated on

30-3  an annual basis, applicable to major components of the public utility’s

30-4  plant placed into service during the recorded test period or the period for

30-5  certification as set forth in the application. Adjustments to revenues,

30-6  operating expenses and costs of securities must be calculated on an annual

30-7  basis. Within 90 days after the [filing with the commission of] date on

30-8  which the certification required [in] by this subsection [, or before the

30-9  expiration of any period of suspension ordered pursuant to subsection 2,] is

30-10  filed with the commission, or within 180 days after the date on which the

30-11  general rate application is filed with the commission, whichever time is

30-12  longer, the commission shall make such order in reference to [those rates

30-13  or charges] the increased rates as is required by this chapter. An electric

30-14  utility shall file a general rate application pursuant to this subsection at

30-15  least once every 24 months.

30-16  4.  [After full investigation or hearing, whether completed before or

30-17  after the date upon which the rate, charge, classification, regulation,

30-18  discontinuance, modification, restriction or practice is to go into effect, the

30-19  commission may make such order in reference to the rate, charge,

30-20  classification, regulation, discontinuance, modification, restriction or

30-21  practice as would be proper in a proceeding initiated after the rate, charge,

30-22  classification, regulation, discontinuance, modification, restriction or

30-23  practice has become effective.

30-24  5.  Except as otherwise provided in subsection 6, whenever] If a public

30-25  utility files with the commission an application to make changes in any

30-26  schedule and the commission does not issue a final written order

30-27  regarding the proposed changes within the time required by this section,

30-28  the proposed changes shall be deemed to be approved by the commission.

30-29  5.  If a public utility files with the commission a general rate

30-30  application [for an increased rate or charge for, or classification, regulation,

30-31  discontinuance, modification, restriction or practice involving service or

30-32  equipment has been filed with the commission, a] , the public utility shall

30-33  not [submit] file with the commission another general rate application until

30-34  all pending general rate applications [for increases in rates submitted] filed

30-35  by that public utility have been decided by the commission unless, after

30-36  application and hearing, the commission determines that a substantial

30-37  financial emergency would exist if the [other application] public utility is

30-38  not permitted to [be submitted] file another general rate application

30-39  sooner. The provisions of this subsection do not prohibit the public utility

30-40  from filing with the commission, while a general rate application is

30-41  pending, an application to recover the increased cost of purchased fuel,

30-42  purchased power, or natural gas purchased for resale pursuant to

30-43  subsection 6 or an application to clear its deferred accounts pursuant to

30-44  subsection 7, if the public utility is otherwise authorized by those

30-45  provisions to file such an application.

30-46  6.  A public utility may file an application to recover the increased cost

30-47  of purchased fuel, purchased power, or natural gas purchased for resale

30-48  once every 30 days. The provisions of this subsection do not apply to an


31-1  electric utility using deferred accounting pursuant to section 19 of [this

31-2  act.] chapter 16, Statutes of Nevada 2001.

31-3    7.  Except as otherwise provided in subsection 8 [, whenever] and

31-4  subsection 4 of NRS 704.100, if an electric utility using deferred

31-5  accounting pursuant to section 19 of [this act] chapter 16, Statutes of

31-6  Nevada 2001, files an application to clear its deferred accounts and to

31-7  change one or more of its rates [or charges] based upon changes in the

31-8  costs for purchased fuel or purchased power, the commission, after a public

31-9  hearing and by an appropriate order:

31-10  (a) Shall allow the electric utility to clear its deferred accounts by

31-11  refunding any credit balance or recovering any debit balance over a period

31-12  not to exceed 3 years, as determined by the commission.

31-13  (b) Shall not allow the electric utility to recover any debit balance, or

31-14  portion thereof, in an amount that would result in a rate of return during the

31-15  period of recovery that exceeds the rate of return authorized by the

31-16  commission in the most recently completed rate proceeding for the electric

31-17  utility.

31-18  8.  Before allowing an electric utility to clear its deferred accounts

31-19  pursuant to subsection 7, the commission shall determine whether the costs

31-20  for purchased fuel and purchased power that the electric utility recorded in

31-21  its deferred accounts are recoverable and whether the revenues that the

31-22  electric utility collected from customers in this state for purchased fuel and

31-23  purchased power are properly recorded and credited in its deferred

31-24  accounts. The commission shall not allow the electric utility to recover any

31-25  costs for purchased fuel and purchased power that were the result of any

31-26  practice or transaction that was undertaken, managed or performed

31-27  imprudently by the electric utility.

31-28  9.  [Whenever] If an electric utility files an application to clear its

31-29  deferred accounts pursuant to subsection 7 while a general rate application

31-30  is pending, the electric utility shall:

31-31  (a) Submit with its application to clear its deferred accounts information

31-32  relating to the cost of service and rate design; and

31-33  (b) Supplement its general rate application with the same information, if

31-34  such information was not submitted with the general rate application.

31-35  10.  A utility facility identified in a 3-year plan submitted pursuant to

31-36  NRS 704.741 and accepted by the commission for acquisition or

31-37  construction pursuant to NRS 704.751 and the regulations adopted

31-38  pursuant thereto shall be deemed to be a prudent investment. The utility

31-39  may recover all just and reasonable costs of planning and constructing such

31-40  a facility.

31-41  11.  As used in this section, “electric utility” has the meaning ascribed

31-42  to it in section 19 of [this act.] chapter 16, Statutes of Nevada 2001.

31-43  Sec. 76.  NRS 704.329 is hereby amended to read as follows:

31-44  704.329  1.  Except as otherwise provided in [this section,] subsection

31-45  6, a person shall not merge with, directly acquire, indirectly acquire

31-46  through a subsidiary or affiliate, or otherwise directly or indirectly obtain

31-47  control of a public utility doing business in this state or an entity that holds

31-48  a controlling interest in such a public utility without first submitting to the

31-49  commission an application for authorization of the proposed [merger,


32-1  acquisition or other] transaction and obtaining authorization from the

32-2  commission.

32-3    2.  Any [merger, acquisition or other] transaction that violates the

32-4  provisions of this section is void and unenforceable and is not valid for any

32-5  purpose.

32-6    3. Before authorizing a proposed [merger, acquisition or other]

32-7  transaction pursuant to this section, the commission shall consider the

32-8  effect of the proposed [merger, acquisition or other] transaction on the

32-9  public interest and the customers in this state. The commission shall not

32-10  authorize the proposed [merger, acquisition or other] transaction unless the

32-11  commission finds that the proposed [merger, acquisition or other]

32-12  transaction:

32-13  (a) Will be in the public interest; and

32-14  (b) Complies with the provisions of sections 8 to 18, inclusive, of [this

32-15  act,] chapter 16, Statutes of Nevada 2001, if the proposed [merger,

32-16  acquisition or other] transaction is subject to those provisions.

32-17  4.  The commission may base its authorization of the proposed [merger,

32-18  acquisition or other] transaction upon such terms, conditions or

32-19  modifications as the commission deems appropriate.

32-20  5.  If the commission does not issue a final order regarding the

32-21  proposed [merger, acquisition or other] transaction within 180 days after

32-22  the date on which an application or amended application for authorization

32-23  of the proposed [merger, acquisition or other] transaction was filed with the

32-24  commission, and the proposed [merger, acquisition or other] transaction is

32-25  not subject to the provisions of sections 8 to 18, inclusive, of [this act,]

32-26  chapter 16, Statutes of Nevada 2001, the proposed [merger, acquisition or

32-27  other] transaction shall be deemed to be authorized by the commission.

32-28  6. The provisions of this section do not apply to [the]:

32-29  (a) The transfer of stock of a public utility doing business in this state or

32-30  to the transfer of the stock of an entity [holding]that holds a controlling

32-31  interest in such a public utility, if a transfer of not more than 25 percent of

32-32  the common stock of such a public utility or entity is proposed.

32-33  (b) Except as otherwise provided in this paragraph, a proposed

32-34  transaction involving a public utility doing business in this state

32-35  providing telecommunication services or an entity that holds a

32-36  controlling interest in such a public utility if, in the most recently

32-37  completed calendar year, not more than 10 percent of the gross operating

32-38  revenue of the public utility or the entity that holds a controlling interest

32-39  in the public utility was derived from intrastate telecommunication

32-40  services provided to retail customers in this state by the public utility.

32-41  Such a proposed transaction is not exempted from the provisions of this

32-42  section if:

32-43     (1) Not later than 30 days after the date on which the person

32-44  undertaking the proposed transaction submits the notification required

32-45  by 15 U.S.C. § 18a, the regulatory operations staff of the commission or

32-46  the consumer’s advocate requests an order from the commission

32-47  requiring the person to file an application for authorization of the

32-48  proposed transaction;


33-1      (2) The request alleges in sufficient detail that the proposed

33-2  transaction may materially affect retail customers of public utilities in

33-3  this state; and

33-4      (3) The commission issues an order requiring the person to file an

33-5  application for authorization of the proposed transaction.

33-6    7.  As used in this section:

33-7    (a) “Person” means:

33-8      (1) A natural person;

33-9      (2) Any form of business or social organization and any other

33-10  nongovernmental legal entity, including, without limitation, a

33-11  corporation, partnership, association, trust or unincorporated

33-12  organization;

33-13     (3) A government or an agency or instrumentality of a government,

33-14  including, without limitation, this state or an agency or instrumentality

33-15  of this state; and

33-16     (4) A political subdivision of this state or of any other government

33-17  or an agency or instrumentality of a political subdivision of this state or

33-18  of any other government.

33-19  (b) “Transaction” means a merger, acquisition or change in control

33-20  described in subsection 1.

33-21  Sec. 77.  NRS 704.68964 is hereby amended to read as follows:

33-22  704.68964  1.  An electing carrier may, pursuant to this section and in

33-23  accordance with NRS 704.68976, exercise flexibility in the pricing of:

33-24  (a) Competitive services and discretionary services. The commission

33-25  shall not specify a maximum rate for any competitive services or

33-26  discretionary services of the electing carrier. The electing carrier shall, with

33-27  regard to any competitive or discretionary service that it provides, set the

33-28  price of that service above the price floor of the service.

33-29  (b) A package of services, which may include basic network services,

33-30  competitive services, discretionary services and other essential services.

33-31  2.  Except as otherwise provided in this subsection, an electing carrier

33-32  may, upon 30-days’ notice to the commission in writing, exercise

33-33  flexibility in the pricing of its services pursuant to subsection 1 and is

33-34  exempt, with respect to the pricing of its services, from the provisions of

33-35  NRS 704.100 and 704.110 and the regulations of the commission relating

33-36  thereto. The notice must include a description in reasonable detail of:

33-37  (a) The characteristics of the services that will be subject to flexibility in

33-38  pricing;

33-39  (b) The terms and conditions applicable to the services;

33-40  (c) The nature of any limitations on the duration or geographical

33-41  availability of the services;

33-42  (d) The price or prices of the services or packages of services; and

33-43  (e) A certificate which provides that the electing carrier has prepared a

33-44  cost study of the price floor to support the price or prices for each service

33-45  and that, on and after the date on which the notice is filed with the

33-46  commission, any affected person may, upon request, inspect and copy the

33-47  cost study, subject to reasonable terms and conditions of any applicable

33-48  confidentiality and nondisclosure agreement relating to the

33-49  services.


34-1  The notice requirements of this subsection do not apply to an electing

34-2  carrier with respect to the pricing of competitive services or for packages

34-3  comprised exclusively of competitive services.

34-4    3.  The price for a package of services must not be lower than the lesser

34-5  of:

34-6    (a) The sum of the price floors for each of the services contained in the

34-7  package; or

34-8    (b) The sum of the prices of the basic network services, as set forth in

34-9  the tariffs of the electing carrier, and the price floors for each of the other

34-10  services contained in the package.

34-11  4.  The commission shall not specify a maximum rate for a package of

34-12  services.

34-13  5.  Each of the services included in a package pursuant to paragraph (b)

34-14  of subsection 1 must be made available on an individual basis.

34-15  6.  An electing carrier must provide 30-days’ notice to the

34-16  commission in writing before the electing carrier may implement any

34-17  amendment or change to an existing service noticed pursuant to

34-18  subsection 2.

34-19  Sec. 78.  NRS 704.68972 is hereby amended to read as follows:

34-20  704.68972  1.  An electing carrier may introduce new services upon

34-21  30-days’ notice to the commission in writing. The notice must include a

34-22  description in reasonable detail of:

34-23  (a) The characteristics of each new service;

34-24  (b) The terms and conditions applicable to each new service;

34-25  (c) The nature of any limitations on the duration or geographical

34-26  availability of each new service;

34-27  (d) The price or prices of each new service; and

34-28  (e) A certificate that provides that the electing carrier has prepared a

34-29  cost study of the price floor to support the price or prices for each new

34-30  service and that, on and after the date on which the notice is filed with the

34-31  commission, any affected person may, upon request, inspect and copy the

34-32  cost study, subject to reasonable terms and conditions of any applicable

34-33  confidentiality and nondisclosure agreement.

34-34  2.  Each new service is subject to the conditions set forth in NRS

34-35  704.68964.

34-36  3.  Each new service is exempt from the provisions of NRS 704.100

34-37  and 704.110 and the regulations of the commission relating thereto.

34-38  4.  Unless otherwise classified by the commission as a competitive

34-39  service pursuant to its regulations, a new service must be classified as a

34-40  discretionary service for which the commission shall not specify a

34-41  maximum rate. The electing carrier shall set the price of the new service

34-42  above the price floor of the service.

34-43  5.  As used in this section, a “new service” means a telecommunication

34-44  service:

34-45  (a) That provides a function, feature or capability which is materially

34-46  different from any service or services previously offered by the carrier; or

34-47  (b) Combines two or more previously provided new services.

 

 


35-1    Sec. 79.  NRS 704.743 is hereby amended to read as follows:

35-2    704.743  1.  A utility which supplies electricity in this state may apply

35-3  to the commission for authority to charge, as part of a program of optional

35-4  pricing, a higher rate for electricity that is generated from renewable

35-5  energy.

35-6    2.  The program may provide the customers of the utility with the

35-7  option of paying a higher rate for electricity to support the increased use by

35-8  the utility of renewable energy in the generation of electricity.

35-9    3.  As used in this section [:

35-10  (a) “Biomass” has the meaning ascribed to it in section 4 of this act.

35-11  (b) “Renewable energy” means a source of energy that occurs naturally

35-12  or is regenerated naturally, including, without limitation:

35-13     (1) Wind;

35-14     (2) Solar energy;

35-15     (3) Geothermal energy; and

35-16     (4) Biomass.

35-17  The term does not include coal, natural gas, oil, propane or any other fossil

35-18  fuel, or nuclear energy.] , “renewable energy” has the meaning ascribed

35-19  to it in section 7 of chapter 519, Statutes of Nevada 2001.

35-20  Sec. 80.  NRS 704.767 is hereby amended to read as follows:

35-21  704.767  As used in NRS [704.767] 704.766 to 704.775, inclusive,

35-22  unless the context otherwise requires, the words and terms defined in NRS

35-23  704.768 to 704.772, inclusive, and section 61 of this act have the

35-24  meanings ascribed to them in those sections.

35-25  Sec. 81.  NRS 704.771 is hereby amended to read as follows:

35-26  704.771  “Net metering system” means a facility or energy system for

35-27  the [production of electrical energy] generation of electricity that:

35-28  1.  Uses [wind or solar] renewable energy as its primary source of

35-29  [fuel;] energy to generate electricity;

35-30  2.  Has a generating capacity of not more than 10 kilowatts;

35-31  3.  Is located on the customer-generator’s premises;

35-32  4.  Operates in parallel with the utility’s transmission and distribution

35-33  facilities; and

35-34  5.  Is intended primarily to offset part or all of the customer-generator’s

35-35  requirements for electricity.

35-36  Sec. 82.  NRS 704.773 is hereby amended to read as follows:

35-37  704.773  1.  A utility shall offer net metering, as set forth in NRS

35-38  704.775, to the customer-generators operating within its service area .

35-39  [until 100 of those customer-generators have accepted the offer.]

35-40  2.  A utility:

35-41  (a) Shall offer to make available to each of its customer-generators who

35-42  has accepted its offer for net metering an energy meter that is capable of

35-43  registering the flow of electricity in two directions.

35-44  (b) May, at its own expense and with the written consent of the

35-45  customer-generator, install one or more additional meters to monitor the

35-46  flow of electricity in each direction.

35-47  (c) Shall not charge a customer-generator any fee or charge that would

35-48  increase the customer-generator’s minimum monthly charge to an amount


36-1  greater than that of other customers of the utility in the same rate class as

36-2  the customer-generator.

36-3    Sec. 83.  NRS 704.775 is hereby amended to read as follows:

36-4    704.775  1.  The billing period for net metering may be either a

36-5  monthly period or, with the written consent of the customer-generator, an

36-6  annual period.

36-7    2.  The net energy measurement must be calculated in the following

36-8  manner:

36-9    (a) The utility shall measure the net electricity produced or consumed

36-10  during the billing period, in accordance with normal metering practices.

36-11  (b) If the electricity supplied by the utility exceeds the electricity

36-12  generated by the customer-generator which is fed back to the utility during

36-13  the billing period, the customer-generator must be billed for the net

36-14  electricity supplied by the utility.

36-15  (c) If the electricity generated by the customer-generator which is fed

36-16  back to the utility exceeds the electricity supplied by the utility during the

36-17  billing period [, neither] :

36-18     (1) Neither the utility nor the customer-generator is entitled to

36-19  compensation for electricity provided to the other during the billing period

36-20  [.] ; and

36-21     (2) The excess electricity which is fed back to the utility shall be

36-22  deemed to be electricity that the utility generated or acquired from a

36-23  renewable energy system for the purposes of complying with its portfolio

36-24  standard pursuant to sections 3 to 12, inclusive, of chapter 519, Statutes

36-25  of Nevada 2001.

36-26  Sec. 84.  NRS 228.360 is hereby amended to read as follows:

36-27  228.360  The consumer’s advocate:

36-28  1.  Shall intervene in and represent the public interest in [all] :

36-29  (a) All proceedings conducted pursuant to sections 8 to 18, inclusive, of

36-30  [this act.] chapter 16, Statutes of Nevada 2001; and

36-31  (b) All proceedings conducted pursuant to NRS 704.070 to 704.110,

36-32  inclusive, and sections 63 to 68, inclusive, of this act in which an electric

36-33  utility has filed a general rate application or an application to clear its

36-34  deferred accounts.

36-35  2.  May, with respect to all public utilities except railroads and

36-36  cooperative utilities, and except as otherwise provided in NRS 228.380:

36-37  (a) Conduct or contract for studies, surveys, research or expert

36-38  testimony relating to matters affecting the public interest or the interests of

36-39  utility customers.

36-40  (b) Examine any books, accounts, minutes, records or other papers or

36-41  property of any public utility subject to the regulatory authority of the

36-42  public utilities commission of Nevada in the same manner and to the same

36-43  extent as authorized by law for members of the public utilities commission

36-44  of Nevada and its staff.

36-45  (c) Except as otherwise provided in subsection 1, petition for, request,

36-46  initiate, appear or intervene in any proceeding concerning rates, charges,

36-47  tariffs, modifications of service or any related matter before the public

36-48  utilities commission of Nevada or any court, regulatory body, board,

36-49  commission or agency having jurisdiction over any matter which the


37-1  consumer’s advocate may bring before or has brought before the public

37-2  utilities commission of Nevada or in which the public interest or the

37-3  interests of any particular class of utility customers are involved. The

37-4  consumer’s advocate may represent the public interest or the interests of

37-5  any particular class of utility customers in any such proceeding, and he is a

37-6  real party in interest in the proceeding.

37-7    3.  As used in this section, “electric utility” has the meaning ascribed

37-8  to it in section 19 of chapter 16, Statutes of Nevada 2001.

37-9    Sec. 85.  NRS 228.390 is hereby amended to read as follows:

37-10  228.390  Except as otherwise provided in NRS 704.110 and sections 8

37-11  to 18, inclusive, of [this act:] chapter 16, Statutes of Nevada 2001:

37-12  1.  The consumer’s advocate has sole discretion to represent or refrain

37-13  from representing the public interest and any class of customers in any

37-14  proceeding.

37-15  2.  In exercising his discretion, the consumer’s advocate shall consider

37-16  the importance and extent of the public interest or the customers’ interests

37-17  involved and whether those interests would be adequately represented

37-18  without his participation.

37-19  3.  If the consumer’s advocate determines that there would be a conflict

37-20  between the public interest and any particular class of customers or any

37-21  inconsistent interests among the classes of customers involved in a

37-22  particular matter, he may choose to represent one of the interests, to

37-23  represent no interest, or to represent one interest through his office and

37-24  another or others through outside counsel engaged on a case basis.

37-25  Sec. 86.  Chapter 349 of NRS is hereby amended by adding thereto the

37-26  provisions set forth as sections 87 to 90, inclusive, of this act.

37-27  Sec. 87.  “Biomass” means any organic matter that is available on a

37-28  renewable basis, including, without limitation:

37-29  1.  Agricultural crops and agricultural wastes and residues;

37-30  2.  Wood and wood wastes and residues;

37-31  3.  Animal wastes;

37-32  4.  Municipal wastes; and

37-33  5.  Aquatic plants.

37-34  Sec. 88.  “Fuel cell” means a device or contrivance that, through the

37-35  chemical process of combining ions of hydrogen and oxygen, produces

37-36  electricity and water.

37-37     Sec. 89. 1.  “Renewable energy” means a source of energy that

37-38  occurs naturally or is regenerated naturally, including, without

37-39  limitation:

37-40  (a) Biomass;

37-41  (b) Fuel cells;

37-42  (c) Geothermal energy;

37-43  (d) Solar energy;

37-44  (e) Waterpower; and

37-45  (f) Wind.

37-46  2.  The term does not include coal, natural gas, oil, propane or any

37-47  other fossil fuel, or nuclear energy.


38-1    Sec. 90.  1.  “Renewable energy generation project” means a project

38-2  involving an electric generating facility or system that uses renewable

38-3  energy as its primary source of energy to generate electricity.

38-4    2.  The term does not include a project involving an electric

38-5  generating facility or system that uses nuclear energy, in whole or in

38-6  part, to generate electricity.

38-7    Sec. 91.  NRS 349.400 is hereby amended to read as follows:

38-8    349.400  As used in NRS 349.400 to 349.670, inclusive, unless the

38-9  context otherwise requires, the words and terms defined in NRS 349.410 to

38-10  349.540, inclusive, and sections 87 to 90, inclusive, of this act have the

38-11  meanings ascribed to them in those sections.

38-12  Sec. 92.  NRS 349.430 is hereby amended to read as follows:

38-13  349.430  “Cost of a project” means all or a designated part of the cost

38-14  of any project, including any incidental cost pertaining to the project. The

38-15  cost of a project may include, among other costs, the costs of:

38-16  1.  Surveys, audits, preliminary plans, other plans, specifications,

38-17  estimates and other costs of preparations;

38-18  2.  Appraising, printing, estimating, advice, services of engineers,

38-19  architects, financial consultants, attorneys, clerical personnel and other

38-20  agents and employees;

38-21  3.  Publishing, posting, mailing and otherwise giving notice, filing or

38-22  recording instruments, taking options and fees to banks;

38-23  4.  Establishment of a reserve for contingencies;

38-24  5.  Interest on bonds for any time which does not exceed the estimated

38-25  period of construction plus 1 year, discounts on bonds, reserves for the

38-26  payment of the principal of and interest on bonds, replacement expenses

38-27  and other costs of issuing bonds;

38-28  6.  Amending any resolution or other instrument authorizing the

38-29  issuance of, or otherwise relating to, bonds for the project; and

38-30  7.  Short-term financing,

38-31  and the expense of operation and maintenance of the project.

38-32  Sec. 93.  NRS 349.510 is hereby amended to read as follows:

38-33  349.510  “Project” means:

38-34  1.  Any land, building or other improvement and all real and personal

38-35  properties necessary in connection therewith, excluding inventories, raw

38-36  materials and working capital, whether or not in existence, suitable for new

38-37  construction, improvement, rehabilitation or redevelopment for:

38-38  (a) Industrial uses, including assembling, fabricating, manufacturing,

38-39  processing or warehousing;

38-40  (b) Research and development relating to commerce or industry,

38-41  including professional, administrative and scientific offices and

38-42  laboratories;

38-43  (c) Commercial enterprises;

38-44  (d) Civic and cultural enterprises open to the general public, including

38-45  theaters, museums and exhibitions, together with buildings and other

38-46  structures, machinery, equipment, facilities and appurtenances thereto

38-47  which the director deems useful or desirable in connection with the

38-48  conduct of any such enterprise;


39-1    (e) An educational institution operated by a nonprofit organization not

39-2  otherwise directly funded by the state which is accredited by a nationally

39-3  recognized educational accrediting association;

39-4    (f) Health and care facilities and supplemental facilities for health and

39-5  care; [or]

39-6    (g) The purposes of a corporation for public benefit [.]; or

39-7    (h) A renewable energy generation project.

39-8    2.  Any real or personal property appropriate for addition to a hotel,

39-9  motel, apartment building, casino or office building to protect it or its

39-10  occupants from fire.

39-11  3.  The preservation of a historic structure or its restoration for its

39-12  original or another use, if the plan has been approved by the office of

39-13  historic preservation of the department of cultural affairs.

39-14  Sec. 94.  NRS 349.560 is hereby amended to read as follows:

39-15  349.560  It is the intent of the legislature to authorize the director to

39-16  finance, acquire, own, lease, improve and dispose of properties to:

39-17  1.  Promote industry and employment and develop trade by inducing

39-18  manufacturing, industrial, warehousing and commercial enterprises and

39-19  organizations for research and development to locate, remain or expand in

39-20  this state to further prosperity throughout the state and to further the use of

39-21  the agricultural products and the natural resources of this state.

39-22  2.  Enhance public safety by protecting hotels, motels, apartment

39-23  buildings, casinos, office buildings and their occupants from fire.

39-24  3.  Promote the public health by enabling the acquisition, development,

39-25  expansion and maintenance of health and care facilities and supplemental

39-26  facilities for health and care facilities which will provide services of high

39-27  quality at reasonable rates to the residents of the community in which the

39-28  facilities are situated.

39-29  4.  Promote the educational, cultural, economic and general welfare of

39-30  the public by financing civic and cultural enterprises, certain educational

39-31  institutions and the preservation or restoration of historic structures.

39-32  5.  Promote the social welfare of the residents of this state by enabling

39-33  a corporation for public benefit to acquire, develop, expand and maintain

39-34  facilities that provide services for those residents.

39-35  6.  Promote the generation of electricity in this state.

39-36  Sec. 95.  NRS 349.565 is hereby amended to read as follows:

39-37  349.565  1.  The director may not, under NRS 349.400 to 349.670,

39-38  inclusive:

39-39  (a) Operate any manufacturing, industrial, warehousing or commercial

39-40  enterprise or an organization for research and development or any health

39-41  and care facility to which he provided assistance; or

39-42  (b) Except as otherwise provided in subsection 2, assist any

39-43  manufacturing, industrial, warehousing or commercial enterprise or an

39-44  organization for research and development to locate in a county or city

39-45  which would result in the abandonment or closure of an existing facility of

39-46  a like nature located within that county or city, unless the existing facility

39-47  is operated by the contemplated lessee, purchaser or other obligor or an

39-48  affiliate of such a person and the facility is to be abandoned or closed


40-1  because of obsolescence, lack of available labor or limitations at the site of

40-2  the facility.

40-3    2.  The provisions of paragraph (b) of subsection 1 do not apply to:

40-4    (a) Health and care facilities and supplemental facilities for a health and

40-5  care facility;

40-6    (b) Civic and cultural enterprises open to the general public;

40-7    (c) Enterprises located in a redevelopment area created pursuant to NRS

40-8  279.382 to 279.685, inclusive;

40-9    (d) Enterprises located in an area designated as an empowerment zone

40-10  pursuant to sections 1391 to 1397, inclusive, of the Internal Revenue Code

40-11  of 1986, 26 U.S.C. §§ 1391-97, future amendments to those sections and

40-12  the corresponding provisions of future internal revenue laws;

40-13  (e) Facilities established by a corporation for public benefit; [and]

40-14  (f) Enterprises whose products are substantially sold, used or distributed

40-15  outside this state [.]; and

40-16  (g) Renewable energy generation projects.

40-17  Sec. 96.  NRS 349.580 is hereby amended to read as follows:

40-18  349.580  Except as otherwise provided in NRS 349.595 and 349.640,

40-19  the director shall not finance a project unless, before financing:

40-20  1.  The director finds that:

40-21  (a) The project to be financed has been approved for financing pursuant

40-22  to the requirements of NRS 244A.669 to 244A.763, inclusive, or 268.512

40-23  to 268.568, inclusive; and

40-24  (b) There has been a request by a city or county to have the director

40-25  issue bonds to finance the project; or

40-26  2.  The director finds and both the board and the governing body of the

40-27  city or county where the project is to be located approve the findings of the

40-28  director that:

40-29  (a) The project consists of any land, building or other improvement and

40-30  all real and personal properties necessary in connection therewith,

40-31  excluding inventories, raw materials and working capital, whether or not in

40-32  existence, which is suitable for new construction, improvement,

40-33  preservation, restoration, rehabilitation or redevelopment:

40-34     (1) For manufacturing, industrial, warehousing, civic, cultural or

40-35  other commercial enterprises, educational institutions, corporations for

40-36  public benefit or organizations for research and development;

40-37     (2) For a health and care facility or a supplemental facility for a

40-38  health and care facility;

40-39     (3) Of real or personal property appropriate for addition to a hotel,

40-40  motel, apartment building, casino or office building to protect it or its

40-41  occupants from fire; [or]

40-42     (4) Of a historic structure; or

40-43     (5) For a renewable energy generation project;

40-44  (b) The project will provide a public benefit;

40-45  (c) The contemplated lessee, purchaser or other obligor has sufficient

40-46  financial resources to place the project in operation and to continue its

40-47  operation, meeting the obligations of the lease, purchase contract or

40-48  financing agreement;


41-1    (d) There are sufficient safeguards to assure that all money provided by

41-2  the department will be expended solely for the purposes of the project;

41-3    (e) The project would be compatible with existing facilities in the area

41-4  adjacent to the location of the project;

41-5    (f) The project [is]:

41-6      (1) Is compatible with the plan of the state for economic

41-7  diversification and development or for the marketing and development of

41-8  tourism in this state; or

41-9      (2) Promotes the generation of electricity in this state;

41-10  (g) Through the advice of counsel or other reliable source, the project

41-11  has received all approvals by the local, state and federal governments

41-12  which may be necessary to proceed with construction, improvement,

41-13  rehabilitation or redevelopment of the project; and

41-14  (h) There has been a request by a city, county, lessee, purchaser, other

41-15  obligor or other enterprise to have the director issue revenue bonds for

41-16  industrial development to finance the project.

41-17  Sec. 97.  Chapter 523 of NRS is hereby amended by adding thereto the

41-18  provisions set forth as sections 98 to 109, inclusive, of this act.

41-19  Sec. 98.  “Biomass” means any organic matter that is available on a

41-20  renewable basis, including, without limitation:

41-21  1.  Agricultural crops and agricultural wastes and residues;

41-22  2.  Wood and wood wastes and residues;

41-23  3.  Animal wastes;

41-24  4.  Municipal wastes; and

41-25  5.  Aquatic plants.

41-26  Sec. 99.  “Consumer’s advocate” means the consumer’s advocate of

41-27  the bureau of consumer protection in the office of the attorney general.

41-28  Sec. 100.  “Director” means the director of the office of energy

41-29  appointed pursuant to section 109 of this act.

41-30  Sec. 101.  “Fuel cell” means a device or contrivance that, through

41-31  the chemical process of combining ions of hydrogen and oxygen,

41-32  produces electricity and water.

41-33  Sec. 102.  1.  “Renewable energy” means a source of energy that

41-34  occurs naturally or is regenerated naturally, including, without

41-35  limitation:

41-36  (a) Biomass;

41-37  (b) Fuel cells;

41-38  (c) Geothermal energy;

41-39  (d) Solar energy;

41-40  (e) Waterpower; and

41-41  (f) Wind.

41-42  2.  The term does not include coal, natural gas, oil, propane or any

41-43  other fossil fuel, or nuclear energy.

41-44  Sec. 103.  1.  “Renewable energy generation project” means a

41-45  project involving an electric generating facility or system that uses

41-46  renewable energy as its primary source of energy to generate electricity.

41-47  2.  The term does not include a project involving an electric

41-48  generating facility or system that uses nuclear energy, in whole or in

41-49  part, to generate electricity.


42-1    Sec. 104.  “Task force” means the task force for renewable energy

42-2  and energy conservation created by section 106 of this act.

42-3    Sec. 105.  1.  The trust fund for renewable energy and energy

42-4  conservation is hereby created in the state treasury.

42-5    2.  The task force shall administer the fund. As administrator of the

42-6  fund, the task force:

42-7    (a) Shall maintain the financial records of the fund;

42-8    (b) Shall invest the money in the fund as the money in other state

42-9  funds is invested;

42-10  (c) Shall manage any account associated with the fund;

42-11  (d) Shall maintain any instruments that evidence investments made

42-12  with the money in the fund;

42-13  (e) May contract with vendors for any good or service that is

42-14  necessary to carry out the provisions of this section; and

42-15  (f) May perform any other duties that are necessary to administer the

42-16  fund.

42-17  3.  The interest and income earned on the money in the fund must,

42-18  after deducting any applicable charges, be credited to the fund. All

42-19  claims against the fund must be paid as other claims against the state are

42-20  paid.

42-21  4.  Not more than 2 percent of the money in the fund may be used to

42-22  pay the costs of administering the fund.

42-23  5.  The money in the fund remains in the fund and does not revert to

42-24  the state general fund at the end of any fiscal year.

42-25  6.  All money that is deposited or paid into the fund may only be

42-26  expended pursuant to an allocation made by the task force. Money

42-27  expended from the fund must not be used to supplant existing methods of

42-28  funding that are available to public agencies.

42-29  Sec. 106.  1.  The task force for renewable energy and energy

42-30  conservation is hereby created. The task force consists of nine members

42-31  who are appointed as follows:

42-32  (a) Two members appointed by the majority leader of the senate, one

42-33  of whom represents the interests of the renewable energy industry in this

42-34  state with respect to biomass and the other of whom represents the

42-35  interests of the mining industry in this state.

42-36  (b) Two members appointed by the speaker of the assembly, one of

42-37  whom represents the interests of the renewable energy industry in this

42-38  state with respect to geothermal energy and the other of whom represents

42-39  the interests of a nonprofit organization dedicated to the protection of the

42-40  environment or to the conservation of energy or the efficient use of

42-41  energy.

42-42  (c) One member appointed by the minority leader of the senate to

42-43  represent the interests of the renewable energy industry in this state with

42-44  respect to solar energy.

42-45  (d) One member appointed by the minority leader of the assembly to

42-46  represent the interests of the public utilities in this state.

42-47  (e) Two members appointed by the governor, one of whom represents

42-48  the interests of the renewable energy industry in this state with respect to


43-1  wind and the other of whom represents the interests of the gaming

43-2  industry in this state.

43-3    (f) One member appointed by the consumer’s advocate to represent

43-4  the interests of the consumers in this state.

43-5    2.  A member of the task force:

43-6    (a) Must be a citizen of the United States and a resident of this state.

43-7    (b) Must have training, education, experience or knowledge

43-8  concerning:

43-9      (1) The development or use of renewable energy;

43-10     (2) Financing, planning or constructing renewable energy

43-11  generation projects;

43-12     (3) Measures which conserve or reduce the demand for energy or

43-13  which result in more efficient use of energy;

43-14     (4) Weatherization;

43-15     (5) Building and energy codes and standards;

43-16     (6) Grants or incentives concerning energy;

43-17     (7) Public education or community relations; or

43-18     (8) Any other matter within the duties of the task force.

43-19  (c) Must not be an officer or employee of the legislative or judicial

43-20  department of state government.

43-21  3.  After the initial terms, the term of each member of the task force is

43-22  3 years. A vacancy on the task force must be filled for the remainder of

43-23  the unexpired term in the same manner as the original appointment. A

43-24  member may be reappointed to the task force.

43-25  4.  A member of the task force who is an officer or employee of this

43-26  state or a political subdivision of this state must be relieved from his

43-27  duties without loss of his regular compensation so that he may prepare

43-28  for and attend meetings of the task force and perform any work that is

43-29  necessary to carry out the duties of the task force in the most timely

43-30  manner practicable. A state agency or political subdivision of this state

43-31  shall not require an officer or employee who is a member of the task

43-32  force to:

43-33  (a) Make up the time he is absent from work to carry out his duties as

43-34  a member of the task force; or

43-35  (b) Take annual leave or compensatory time for the absence.

43-36  Sec. 107.  1.  The members of the task force shall select a chairman

43-37  and vice chairman from among their membership. The vice chairman

43-38  shall perform the duties of the chairman during any absence of the

43-39  chairman.

43-40  2.  The chairman and vice chairman serve in those positions for

43-41  terms of 1 year. If a vacancy occurs in the chairmanship or vice

43-42  chairmanship, the vacancy must be filled for the remainder of the

43-43  unexpired term in the same manner as the original selection.

43-44  3.  A majority of the members of the task force constitutes a quorum.

43-45  A majority of the members present during a quorum may exercise all the

43-46  power and authority conferred on the task force.

43-47  4.  The task force shall meet at least four times annually or more

43-48  frequently at the discretion of the chairman.


44-1    5.  Except as otherwise provided in this subsection, the members of

44-2  the task force serve without compensation and are not entitled to the per

44-3  diem and travel expenses provided for state officers and employees

44-4  generally. For each day of attendance at a meeting of the task force and

44-5  while engaged in the business of the task force, a member of the task

44-6  force who:

44-7    (a) Is an officer or employee of this state or a political subdivision of

44-8  this state is entitled to receive the per diem and travel expenses provided

44-9  for state officers and employees generally, paid by his governmental

44-10  employer.

44-11  (b) Represents the interests of a nonprofit organization is entitled to

44-12  receive the per diem and travel expenses provided for state officers and

44-13  employees generally, paid from the trust fund for renewable energy and

44-14  energy conservation.

44-15  6.  The consumer’s advocate shall provide the task force with

44-16  administrative and clerical support and with such other assistance as

44-17  may be necessary for the task force to carry out its duties. Such support

44-18  and assistance must include, without limitation, making arrangements

44-19  for facilities, equipment and other services in preparation for and during

44-20  meetings.

44-21  Sec. 108.  1.  The task force shall:

44-22  (a) Advise the office of energy in the development and periodic review

44-23  of the comprehensive state energy plan with regard to the use of

44-24  renewable energy and the use of measures which conserve or reduce the

44-25  demand for energy or which result in more efficient use of energy.

44-26  (b) Coordinate its activities and programs with the activities and

44-27  programs of the office of energy, the consumer’s advocate and the public

44-28  utilities commission of Nevada and other federal, state and local officers

44-29  and agencies that promote, fund, administer or operate activities and

44-30  programs related to the use of renewable energy and the use of measures

44-31  which conserve or reduce the demand for energy or which result in more

44-32  efficient use of energy.

44-33  (c) Spend the money in the trust fund for renewable energy and

44-34  energy conservation to:

44-35     (1) Educate persons and entities concerning renewable energy and

44-36  measures which conserve or reduce the demand for energy or which

44-37  result in more efficient use of energy.

44-38     (2) Create incentives for investment in and the use of renewable

44-39  energy and measures which conserve or reduce the demand for energy or

44-40  which result in more efficient use of energy.

44-41     (3) Distribute grants and other money to establish programs and

44-42  projects which incorporate the use of renewable energy and measures

44-43  which conserve or reduce the demand for energy or which result in more

44-44  efficient use of energy.

44-45     (4) Conduct feasibility studies, including, without limitation, a

44-46  feasibility study concerning the establishment of an incentive fund,

44-47  grants or other programs to enable or assist residential, small

44-48  commercial and agricultural customers to reduce the cost of purchasing


45-1  on-site generation systems, net metering systems and distributed

45-2  generation systems that use renewable energy.

45-3    (d) Take any other actions that the task force deems necessary to carry

45-4  out its duties, including, without limitation, contracting with consultants,

45-5  if necessary, for the purposes of program design or to assist the task

45-6  force in carrying out its duties.

45-7    2.  The task force shall prepare an annual report concerning its

45-8  activities and programs and submit the report to the legislative

45-9  commission and the governor on or before January 30 of each year. The

45-10  annual report must include, without limitation:

45-11  (a) A description of the objectives of each activity and program;

45-12  (b) An analysis of the effectiveness and efficiency of each activity and

45-13  program in meeting the objectives of the activity or program;

45-14  (c) The amount of money distributed for each activity and program

45-15  from the trust fund for renewable energy and energy conservation and a

45-16  detailed description of the use of that money for each activity and

45-17  program;

45-18  (d) An analysis of the coordination between the task force and other

45-19  officers and agencies; and

45-20  (e) Any changes planned for each activity and program.

45-21  3.  As used in this section:

45-22  (a) “Distributed generation system” means a facility or system for the

45-23  generation of electricity that is in close proximity to the place where the

45-24  electricity is consumed.

45-25  (b) “Net metering system” has the meaning ascribed to it in NRS

45-26  704.771.

45-27  Sec. 109.  1.  The office of energy is hereby created within the office

45-28  of the governor.

45-29  2.  The governor shall appoint the director. The director:

45-30  (a) Is in the unclassified service of the state; and

45-31  (b) Serves at the pleasure of the governor.

45-32  3.  The director may, within the limits of available money, employ:

45-33  (a) Such persons in the unclassified service of the state as the director

45-34  determines to be necessary to carry out the duties of the office of energy

45-35  pursuant to this chapter; and

45-36  (b) Such additional personnel as may be required to carry out the

45-37  duties of the office of energy pursuant to this chapter, who must be in the

45-38  classified service of the state.

45-39  4.  A person employed by the director pursuant to this section must be

45-40  qualified by training and experience to perform the duties for which the

45-41  director employs him.

45-42  5.  The director and the persons employed by the director shall not

45-43  have any conflict of interest relating to the performance of their duties

45-44  pursuant to this chapter.

45-45  6.  The provisions of NRS 223.085 do not apply to the director or to

45-46  any person employed by the director pursuant to this section.

45-47  Sec. 110.  NRS 523.011 is hereby amended to read as follows:

45-48  523.011  1.  The legislature finds that:


46-1    (a) Energy is essential to the economy of the state and to the health,

46-2  safety and welfare of the people of the state.

46-3    (b) The state has a responsibility to encourage the maintenance of a

46-4  reliable and economical supply of energy at a level which is consistent with

46-5  the protection of environmental quality.

46-6    (c) The state has a responsibility to encourage the utilization of a wide

46-7  range of measures which reduce wasteful uses of energy resources.

46-8    (d) Planning for energy conservation and future energy requirements

46-9  should include consideration of state, regional and local plans for land use,

46-10  urban expansion, transportation systems, environmental protection and

46-11  economic development.

46-12  (e) Government and private enterprise need to accelerate research and

46-13  development of [alternative] sources of renewable energy and to improve

46-14  technology related to the research and development of existing sources of

46-15  energy.

46-16  (f) While government and private enterprise are seeking to accelerate

46-17  research and development of [alternative] sources of renewable energy,

46-18  they must also prepare for and respond to the advent of competition within

46-19  the electrical energy industry and are, therefore, encouraged to maximize

46-20  the use of indigenous energy resources to the extent competitively and

46-21  economically feasible.

46-22  (g) Prevention of delays and interruptions in providing energy,

46-23  protecting environmental values and conserving energy require expanded

46-24  authority and capability within state government.

46-25  2.  It is the policy of this state to encourage participation with all levels

46-26  of government and private enterprise in cooperative state, regional and

46-27  national programs to assure adequate supplies of energy resources and

46-28  markets for such energy resources.

46-29  3.  It is the policy of this state to assign the responsibility for managing

46-30  and conserving energy and its sources to agencies whose other programs

46-31  are similar, to avoid duplication of effort in developing policies and

46-32  programs for energy.

46-33  Sec. 111.  NRS 523.021 is hereby amended to read as follows:

46-34  523.021  As used in this chapter, unless the context otherwise

46-35  requires[:

46-36  1.  “Department” means the department of business and industry.

46-37  2.  “Director” means the director of the department.] , the words and

46-38  terms defined in sections 98 to 104, inclusive, of this act have the

46-39  meanings ascribed to them in those sections.

46-40  Sec. 112.  NRS 523.051 is hereby amended to read as follows:

46-41  523.051  The director may:

46-42  1.  Administer any gifts or grants which the [department] office of

46-43  energy is authorized to accept for the purposes of this chapter.

46-44  2.  Expend money received from those gifts or grants or from

46-45  legislative appropriations to contract with qualified persons or institutions

46-46  for research in the production and efficient use of energy resources.

46-47  3.  Enter into any cooperative agreement with any federal or state

46-48  agency or political subdivision.


47-1    4.  Participate in any program established by the Federal Government

47-2  relating to sources of energy and adopt regulations appropriate to that

47-3  program.

47-4    5.  Assist developers of renewable energy generation projects in

47-5  preparing and making requests to obtain money for development from

47-6  the issuance of industrial development revenue bonds pursuant to NRS

47-7  349.400 to 349.670, inclusive, and sections 87 to 90, inclusive, of this act.

47-8    6.  Adopt any regulations that the director determines are necessary

47-9  to carry out the duties of the office of energy pursuant to this chapter.

47-10  Sec. 113.  NRS 523.131 is hereby amended to read as follows:

47-11  523.131  The director shall:

47-12  1.  Acquire and analyze information relating to energy and to the

47-13  supply, demand and conservation of its sources.

47-14  2.  Utilize all available public and private means to provide information

47-15  to the public about problems relating to energy and to explain how

47-16  conservation of energy and its sources may be accomplished.

47-17  3.  Review and evaluate information which identifies trends and

47-18  permits forecasting of the energy available to the state. Such forecasts must

47-19  include estimates on:

47-20  (a) The level of demand for energy in the state for 5-, 10- and 20-year

47-21  periods;

47-22  (b) The amount of energy available to meet each level of demand;

47-23  (c) The probable implications of the forecast on the demand and supply

47-24  of energy; and

47-25  (d) The sources of renewable energy and other alternative sources of

47-26  energy which are available and their possible effects.

47-27  4.  Study means of reducing wasteful, inefficient, unnecessary or

47-28  uneconomical uses of energy and encourage the maximum utilization of

47-29  existing sources of energy in the state.

47-30  5.  Encourage the development of [any existing and alternative] :

47-31  (a) Any sources of renewable energy and any other energy projects

47-32  which will benefit the state [.] ; and

47-33  (b) Any measures which conserve or reduce the demand for energy or

47-34  which result in more efficient use of energy.

47-35  6.  In conjunction with the desert research institute, review policies

47-36  relating to the research and development of the state’s geothermal

47-37  resources and make recommendations to the appropriate state and federal

47-38  agencies for establishing methods of developing the geothermal resources

47-39  within the state.

47-40  7.  Solicit and serve as the point of contact for grants and other

47-41  money from the Federal Government and other sources to promote:

47-42  (a) Energy projects that enhance the economic development of the

47-43  state;

47-44  (b) The use of renewable energy; and

47-45  (c) The use of measures which conserve or reduce the demand for

47-46  energy or which result in more efficient use of energy.

47-47  8.  Coordinate the activities and programs of the office of energy with

47-48  the activities and programs of the task force, the consumer’s advocate

47-49  and the public utilities commission of Nevada and other federal, state


48-1  and local officers and agencies that promote, fund, administer or operate

48-2  activities and programs related to the use of renewable energy and the

48-3  use of measures which conserve or reduce the demand for energy or

48-4  which result in more efficient use of energy.

48-5    9.  Carry out all other directives concerning energy that are

48-6  prescribed by the governor.

48-7    Sec. 114.  NRS 523.141 is hereby amended to read as follows:

48-8    523.141  1.  The director shall prepare a comprehensive state energy

48-9  [conservation] plan which provides [methods for conserving and improving

48-10  efficiency in the use of energy resources and establishes procedures for

48-11  reducing the rate of growth of energy demand and minimizing the adverse

48-12  social, economic, political and environmental effects of increasing energy

48-13  resource consumption.

48-14  2.  The plan must be presented to the governor, and upon approval by

48-15  the governor, may be submitted by him in compliance with any program

48-16  established by the Federal Government.] for the promotion of:

48-17  (a) Energy projects that enhance the economic development of the

48-18  state;

48-19  (b) The use of renewable energy; and

48-20  (c) The use of measures which conserve or reduce the demand for

48-21  energy or which result in more efficient use of energy.

48-22  2.  The comprehensive state energy plan must include provisions for:

48-23  (a) The assessment of the potential benefits of proposed energy

48-24  projects on the economic development of the state.

48-25  (b) The education of persons and entities concerning renewable

48-26  energy and measures which conserve or reduce the demand for energy or

48-27  which result in more efficient use of energy.

48-28  (c) The creation of incentives for investment in and the use of

48-29  renewable energy and measures which conserve or reduce the demand

48-30  for energy or which result in more efficient use of energy.

48-31  (d) Grants and other money to establish programs and conduct

48-32  activities which promote:

48-33     (1) Energy projects that enhance the economic development of the

48-34  state;

48-35     (2) The use of renewable energy; and

48-36     (3) The use of measures which conserve or reduce the demand for

48-37  energy or which result in more efficient use of energy.

48-38  (e) The development or incorporation by reference of model and

48-39  uniform building and energy codes and standards which are written in

48-40  language which is easy to understand and which include performance

48-41  standards for conservation of energy and efficient use of energy.

48-42  (f) Oversight and accountability with respect to all programs and

48-43  activities described in this subsection.

48-44  (g) Any other matter that the director determines to be relevant to the

48-45  issues of energy resources, energy use, energy conservation and energy

48-46  efficiency.

48-47  Sec. 115.  NRS 523.161 is hereby amended to read as follows:

48-48  523.161  1.  [Except for those energy resources for whose priorities of

48-49  use are established by the public utilities commission of Nevada, the] The


49-1  director may recommend to state agencies, local governments and

49-2  appropriate private persons and entities [,] standards for conservation of

49-3  energy and its sources and for carrying out the state comprehensive energy

49-4  plan . [for the conservation of energy.]

49-5    2.  In recommending such standards , the director shall consider the

49-6  usage of energy and its sources in the state and the methods available for

49-7  conservation of those sources.

49-8    Sec. 116.  NRS 523.164 is hereby amended to read as follows:

49-9    523.164  1.  The director shall adopt regulations for the conservation

49-10  of energy in buildings, including manufactured homes, which establish the

49-11  minimum standards for:

49-12  (a) The construction of floors, walls, ceilings and roofs;

49-13  (b) The equipment and systems for heating, ventilation and air-

49-14  conditioning;

49-15  (c) Electrical equipment and systems;

49-16  (d) Insulation; and

49-17  (e) Other factors which affect the use of energy in a building.

49-18  2.  The director may exempt a building from a standard if he

49-19  determines that application of the standard to the building would not

49-20  accomplish the purpose of the regulations.

49-21  3.  The regulations must authorize allowances in design and

49-22  construction for [solar, wind or any other renewable source] sources of

49-23  renewable energy used to supply all or a part of the energy required in a

49-24  building.

49-25  4.  The standards adopted by the director are the minimum standards

49-26  for the conservation of energy which apply only to areas in which the

49-27  governing body of the local government has not adopted standards for the

49-28  conservation of energy in buildings. Such governing bodies shall assist the

49-29  director in the enforcement of the regulations adopted pursuant to this

49-30  section.

49-31  5.  The director shall solicit comments regarding the adoption of

49-32  regulations pursuant to this section from:

49-33  (a) Persons in the business of constructing and selling homes;

49-34  (b) Contractors;

49-35  (c) Public utilities;

49-36  (d) Local building inspectors; and

49-37  (e) The general public,

49-38  before adopting any regulations. The director must conduct at least three

49-39  hearings in different locations in the state, after giving 30 days’ notice of

49-40  each hearing, before he may adopt any regulations pursuant to this section.

49-41  Sec. 117.  NRS 523.167 is hereby amended to read as follows:

49-42  523.167  1.  In a county whose population is 100,000 or more, a

49-43  building whose construction began on or after October 1, 1983, must not

49-44  contain a system using electric resistance for heating spaces unless:

49-45  (a) The system is merely supplementary to another means of heating;

49-46  (b) Under the particular circumstances no other primary means of

49-47  heating the spaces is a feasible or economical alternative to heating by

49-48  electric resistance; or


50-1    (c) The [department] director determines that the present or future

50-2  availability of other sources of energy is so limited as to justify the use of

50-3  such a system.

50-4    2.  This section does not prohibit the use of incandescent or fluorescent

50-5  lighting.

50-6    Sec. 118.  NRS 651.040 is hereby amended to read as follows:

50-7    651.040  1.  As used in this section, unless the context otherwise

50-8  requires:

50-9    (a) “Establishment” means any hotel, motel, inn or motor court.

50-10  (b) “Owner” or “keeper” means any person, firm, association or

50-11  corporation.

50-12  (c) “Rates” means the total charge levied at the establishment for rooms

50-13  or accommodations.

50-14  2.  The rates listed on the printed statement required to be maintained

50-15  by an owner or keeper of an establishment pursuant to NRS 651.030 must

50-16  include [the] :

50-17  (a) The daily rate of the room for occupancy by one person [,] and for

50-18  occupancy by two persons [, the] ;

50-19  (b) The additional charge, if any, for occupancy by each additional

50-20  person over two persons [and the] ;

50-21  (c) The additional charge, if any, for each additional bed provided in the

50-22  room [.] ; and

50-23  (d) The additional charge, if any, to offset energy costs incurred by the

50-24  establishment.

50-25  3.  Every establishment shall maintain a registration card for each room

50-26  and supply the person or persons registering for accommodations a receipt.

50-27  Both the registration card and the receipt must reflect the type of

50-28  accommodations supplied, the number of persons occupying the

50-29  accommodation and the rate charged each person therefor. An

50-30  establishment shall not charge more than the rates listed on the printed

50-31  statement required to be maintained by an owner or keeper of an

50-32  establishment pursuant to NRS 651.030

50-33  [3.] 4. For any violation of this section, or any provision herein

50-34  contained, the offender shall forfeit to the injured party 3 times the amount

50-35  of the sum charged in excess of what he is entitled to charge.

50-36  [4.] 5. Any owner or keeper of any establishment who violates any of

50-37  the provisions of this section is guilty of a misdemeanor.

50-38  Sec. 119.  Chapter 16, Statutes of Nevada 2001, is hereby amended by

50-39  adding thereto a new section designated sec. 15.5, following sec. 15, to

50-40  read as follows:

50-41  Sec. 15.5.  The provisions of sections 8 to 18, inclusive, of this

50-42  act do not prohibit an electric utility from pledging, mortgaging,

50-43  granting a security interest in or otherwise encumbering any of its

50-44  generation assets or other property for the purpose of securing

50-45  indebtedness of the electric utility which exists on the effective date

50-46  of this act or which is issued or incurred by the electric utility after

50-47  the effective date of this act in financing transactions approved by

50-48  the commission.


51-1    Sec. 120.  Section 35 of chapter 16, Statutes of Nevada 2001, is hereby

51-2  amended to read as follows:

51-3  Sec. 35. Except as otherwise provided in section 36 of this act

51-4  and notwithstanding the provisions of any other specific statute to the

51-5  contrary:

51-6  1.  An electric utility shall not file an application for a fuel and

51-7  purchased power rider on or after the effective date of this act.

51-8  2.  Each application for a fuel and purchased power rider filed by

51-9  an electric utility which is pending with the commission on the

51-10  effective date of this act and which the electric utility did not place

51-11  into effect before or on April 1, 2001, is void and unenforceable and is

51-12  not valid for any purpose after April 1, 2001.

51-13  3.  If, before March 1, 2001, an electric utility incurred any costs

51-14  for fuel or purchased power, including, without limitation, any costs

51-15  for fuel or purchased power recorded or carried on the books and

51-16  records of the electric utility, and those costs were not recovered or

51-17  could not be recovered pursuant to a fuel and purchased power rider

51-18  placed into effect by the electric utility before March 1, 2001, the

51-19  electric utility is not entitled, on or after March 1, 2001, to recover

51-20  any of those costs for fuel or purchased power from customers, and

51-21  the commission shall not allow the electric utility to recover any of

51-22  those costs for fuel or purchased power from customers.

51-23  4.  Except as otherwise provided in this section, on and after the

51-24  effective date of this act:

51-25  (a) The commission shall not take any further action on the

51-26  comprehensive energy plan, and each electric utility that jointly filed

51-27  the comprehensive energy plan shall be deemed to have withdrawn

51-28  the comprehensive energy plan;

51-29  (b) The rates that each electric utility placed into effect on

51-30  March 1, 2001, pursuant to the comprehensive energy plan shall be

51-31  deemed to be a component of the electric utility’s rates for fuel and

51-32  purchased power; and

51-33  (c) The revenues [collected] for services provided by each electric

51-34  utility [before April] for the period of March 1, 2001, to March 31,

51-35  2001, inclusive, from the rates that each electric utility placed into

51-36  effect on March 1, 2001, pursuant to the comprehensive energy plan

51-37  shall be deemed to be a credit in the electric utility’s deferred

51-38  accounts.

51-39  5.  On or before October 1, 2001, each electric utility that

51-40  primarily serves densely populated counties shall file a general rate

51-41  application pursuant to subsection 3 of NRS 704.110, as amended by

51-42  this act [.] and Assembly Bill No. 5 of the 17th special session of the

51-43  Nevada Legislature. On or before December 1, 2001, each electric

51-44  utility that primarily serves densely populated counties shall file an

51-45  application to clear its deferred accounts pursuant to subsection 7 of

51-46  NRS 704.110, as amended by this act [.] and Assembly Bill No. 5 of

51-47  the 17th special session of the Nevada Legislature. After such an

51-48  electric utility files the application to clear its deferred accounts, the

51-49  commission shall investigate and determine whether the rates that the


52-1  electric utility placed into effect on March 1, 2001, pursuant to the

52-2  comprehensive energy plan are just and reasonable and reflect prudent

52-3  business practices. On the date on which the commission issues a final

52-4  order on the general rate application, the commission shall issue a

52-5  final order on the electric utility’s application to clear its deferred

52-6  accounts. The total rates to provide electric service that were in effect

52-7  on April 1, 2001, for the electric utility must remain in effect until the

52-8  date on which the commission issues a final order on the general rate

52-9  application. The commission shall not adjust the rates of the electric

52-10  utility during this period unless such an adjustment is absolutely

52-11  necessary to avoid rates that are confiscatory under the Constitution of

52-12  the United States or the constitution of this state. The commission:

52-13  (a) May make such an adjustment only to the extent that it is

52-14  absolutely necessary to avoid an unconstitutional result; and

52-15  (b) Shall not, in any proceedings concerning such an adjustment,

52-16  approve any rate or grant any relief that is not absolutely necessary to

52-17  avoid an unconstitutional result.

52-18  After the electric utility files the general rate application that is

52-19  required by this subsection, the electric utility shall file general rate

52-20  applications in accordance with subsection 3 of NRS 704.110, as

52-21  amended by this act [.] and Assembly Bill No. 5 of the 17th special

52-22  session of the Nevada Legislature. After the electric utility files the

52-23  application to clear its deferred accounts that is required by this

52-24  subsection, the electric utility shall file applications to clear its

52-25  deferred accounts in accordance with section 19 of this act and

52-26  subsection 7 of NRS 704.110, as amended by this act [.] and

52-27  Assembly Bill No. 5 of the 17th special session of the Nevada

52-28  Legislature.

52-29  6.  On or before December 1, 2001, each electric utility that

52-30  primarily serves less densely populated counties shall file a general

52-31  rate application pursuant to subsection 3 of NRS 704.110, as amended

52-32  by this act [.] and Assembly Bill No. 5 of the 17th special session of

52-33  the Nevada Legislature. On or before February 1, 2002, each electric

52-34  utility that primarily serves less densely populated counties shall file

52-35  an application to clear its deferred accounts pursuant to subsection 7

52-36  of NRS 704.110, as amended by this act [.] and Assembly Bill No. 5

52-37  of the 17th special session of the Nevada Legislature. After such an

52-38  electric utility files the application to clear its deferred accounts, the

52-39  commission shall investigate and determine whether the rates that the

52-40  electric utility placed into effect on March 1, 2001, pursuant to the

52-41  comprehensive energy plan are just and reasonable and reflect prudent

52-42  business practices. On the date on which the commission issues a final

52-43  order on the general rate application, the commission shall issue a

52-44  final order on the electric utility’s application to clear its deferred

52-45  accounts. The total rates to provide electric service that were in effect

52-46  on April 1, 2001, for the electric utility must remain in effect until the

52-47  date on which the commission issues a final order on the general rate

52-48  application. The commission shall not adjust the rates of the electric

52-49  utility during this period unless such an adjustment is absolutely


53-1  necessary to avoid rates that are confiscatory under the Constitution of

53-2  the United States or the constitution of this state. The commission:

53-3  (a) May make such an adjustment only to the extent that it is

53-4  absolutely necessary to avoid an unconstitutional result; and

53-5  (b) Shall not, in any proceedings concerning such an adjustment,

53-6  approve any rate or grant any relief that is not absolutely necessary to

53-7  avoid an unconstitutional result.

53-8  After the electric utility files the general rate application that is

53-9  required by this subsection, the electric utility shall file general rate

53-10  applications in accordance with subsection 3 of NRS 704.110, as

53-11  amended by this act [.] and Assembly Bill No. 5 of the 17th special

53-12  session of the Nevada Legislature. After the electric utility files the

53-13  application to clear its deferred accounts that is required by this

53-14  subsection, the electric utility shall file applications to clear its

53-15  deferred accounts in accordance with section 19 of this act and

53-16  subsection 7 of NRS 704.110, as amended by this act [.] and

53-17  Assembly Bill No. 5 of the 17th special session of the Nevada

53-18  Legislature.

53-19  Sec. 121.  Section 36 of chapter 16, Statutes of Nevada 2001, is hereby

53-20  amended to read as follows:

53-21  Sec. 36.  Notwithstanding the provisions of any other specific

53-22  statute to the contrary:

53-23  1.  If, on or after January 1, 1999, and before the effective date of

53-24  this act, an electric utility holding company entered into any

53-25  transaction to acquire a controlling interest in a public utility that

53-26  provides electric service primarily to customers located outside of this

53-27  state, the electric utility holding company shall not carry out the

53-28  transaction unless, on or after the effective date of this act:

53-29  (a) The electric utility holding company files with the commission

53-30  an application for authorization of the transaction; and

53-31  (b) The commission issues a written order that authorizes the

53-32  transaction. The commission shall not authorize the transaction unless

53-33  the commission finds that the transaction will be in the public interest.

53-34  The commission may base its authorization of the transaction upon

53-35  such terms, conditions or modifications as the commission deems

53-36  appropriate.

53-37  2.  If the commission authorizes a transaction described in

53-38  subsection 1 and, before July 1, 2003, the electric utility holding

53-39  company acquires a controlling interest in such a public utility, or any

53-40  affiliate thereof, pursuant to the transaction:

53-41  (a) Each electric utility in which the electric utility holding

53-42  company holds a controlling interest shall not use deferred accounting

53-43  pursuant to section 19 of this act on or after the date on which the

53-44  electric utility holding company acquires a controlling interest in the

53-45  public utility, or any affiliate thereof;

53-46  (b) Not later than 90 days after that date, each such electric utility

53-47  shall file one final application to clear the remaining balance in its

53-48  deferred accounts pursuant to subsection 7 of NRS 704.110, as


54-1  amended by this act [;] and Assembly Bill No. 5 of the 17th special

54-2  session of the Nevada Legislature;

54-3  (c) For each such electric utility, the commission shall not carry

54-4  out the provisions of section 35 of this act concerning deferred

54-5  accounting and deferred accounts; and

54-6  (d) The commission shall carry out the remaining provisions of

54-7  section 35 of this act, including, without limitation, the commission’s

54-8  investigation and determination whether the rates that each electric

54-9  utility placed into effect on March 1, 2001, pursuant to the

54-10  comprehensive energy plan are just and reasonable and reflect prudent

54-11  business practices.

54-12  3.  Any transaction that violates the provisions of this section is

54-13  void and unenforceable and is not valid for any purpose.

54-14  Sec. 122.  Section 21 of chapter 275, Statutes of Nevada 2001, is

54-15  hereby amended to read as follows:

54-16  Sec. 21.  NRS 523.164 is hereby amended to read as follows:

54-17  523.164  1.  The director shall adopt regulations for the

54-18  conservation of energy in buildings, including manufactured homes,

54-19  which establish the minimum standards for:

54-20  (a) The construction of floors, walls, ceilings and roofs;

54-21  (b) The equipment and systems for heating, ventilation and air-

54-22  conditioning;

54-23  (c) Electrical equipment and systems;

54-24  (d) Insulation; and

54-25  (e) Other factors which affect the use of energy in a building.

54-26  2.  The director may exempt a building from a standard if he

54-27  determines that application of the standard to the building would not

54-28  accomplish the purpose of the regulations.

54-29  3.  The regulations must authorize allowances in design and

54-30  construction for sources of renewable energy used to supply all or a

54-31  part of the energy required in a building.

54-32  4.  The standards adopted by the director are the minimum

54-33  standards for the conservation of energy which apply only to areas in

54-34  which the governing body of the local government has not adopted

54-35  standards for the conservation of energy in buildings. Such governing

54-36  bodies shall assist the director in the enforcement of the regulations

54-37  adopted pursuant to this section.

54-38  5.  The director shall solicit comments regarding the adoption of

54-39  regulations pursuant to this section from:

54-40  (a) Persons in the business of constructing and selling homes;

54-41  (b) Contractors;

54-42  (c) Public utilities;

54-43  (d) Local building [inspectors;] officials; and

54-44  (e) The general public,

54-45  before adopting any regulations. The director must conduct at least

54-46  three hearings in different locations in the state, after giving 30 days’

54-47  notice of each hearing, before he may adopt any regulations pursuant

54-48  to this section.


55-1    Sec. 123.  Section 1 of chapter 349, Statutes of Nevada 2001, is hereby

55-2  amended to read as follows:

55-3  Section 1.  Chapter 704 of NRS is hereby amended by adding

55-4  thereto a new section to read as follows:

55-5  1.  On and after October 1, 2001, each electric utility shall

55-6  disclose to its retail customers information about electric services,

55-7  and any products and services relating thereto, that are being

55-8  provided to or purchased for those retail customers by the electric

55-9  utility. The disclosure must:

55-10  (a) Be in a standard, uniform format established by the

55-11  commission by regulation;

55-12  (b) Be included:

55-13       (1) At least two times each calendar year, as an insert in the

55-14  bills that the electric utility sends to its retail customers; and

55-15        (2) If the electric utility maintains a website on the Internet or

55-16  any successor to the Internet, on that website; and

55-17  (c) Include adequate information so that a retail customer can

55-18  readily evaluate his options for obtaining electric services and any

55-19  products or services relating thereto.

55-20  2.  A disclosure required by this section must include, if

55-21  applicable:

55-22  (a) The average mix of energy sources used to generate the

55-23  electricity sold by the electric utility to the retail customer. An

55-24  electric utility may, if available, use a regional average that has been

55-25  determined by the commission for that portion of electricity sold by

55-26  the electric utility to the retail customer for which the specific mix of

55-27  energy sources cannot be discerned.

55-28  (b) The average emissions, measured in pounds per megawatt-

55-29  hour, of:

55-30        (1) Any high-level radioactive waste, sulfur dioxide, carbon

55-31  dioxide, oxides of nitrogen and heavy metals released in this state

55-32  from the generation of the electricity sold by the electric utility to the

55-33  retail customer; and

55-34        (2) Any other substances released in this state from the

55-35  generation of the electricity sold by the electric utility to the retail

55-36  customer which the commission, in cooperation with the division of

55-37  environmental protection of the state department of conservation

55-38  and natural resources, determines may cause a significant health or

55-39  environmental impact and for which sufficiently accurate and

55-40  reliable data is available.

55-41  If an electric utility uses a regional average for the mix of energy

55-42  sources pursuant to paragraph (a), the electric utility shall, if

55-43  available, use for the average emissions pursuant to this paragraph

55-44  a regional calculation that has been determined by the commission.

55-45  (c) Information concerning customer service.

55-46  (d) Information concerning any energy programs that provide

55-47  assistance to retail customers with low incomes, including, without

55-48  limitation, information on the procedures to apply for such

55-49  programs.


56-1  3.  An electric utility:

56-2  (a) Shall make the disclosures required pursuant to this section

56-3  in accordance with the requirements adopted by the commission as

56-4  to form and substance; and

56-5  (b) Shall ensure that it provides the information in compliance

56-6  with all applicable state and federal law governing unfair

56-7  advertising and labeling.

56-8  4.  The commission shall adopt such regulations concerning

56-9  form and substance for the disclosures required by this section as

56-10  are necessary to ensure that retail customers are provided with

56-11  sufficient information so that they can readily evaluate their options

56-12  for obtaining electric services and any products and services relating

56-13  thereto.

56-14  5.  The provisions of this section do not require an electric utility

56-15  to disclose to its retail customers any information about electric

56-16  services, and any products and services relating thereto, that are

56-17  subject to the provisions of sections 3 to 26, inclusive, of Assembly

56-18  Bill No. 5 of the 17th special session of the Nevada Legislature.

56-19  6.  As used in this section:

56-20  (a) “Electric utility” has the meaning ascribed to it in section 19

56-21  of chapter 16, Statutes of Nevada 2001.

56-22  (b) “Energy source” includes, without limitation:

56-23        (1) Coal, natural gas, oil, propane and any other fossil fuel;

56-24        (2) Geothermal energy, solar energy, nuclear energy,

56-25  waterpower, wind, biofuel and biomass; and

56-26        (3) Any other specific energy source that is used to generate

56-27  the electricity provided to the retail customer.

56-28  Sec. 124.  Section 1 of chapter 371, Statutes of Nevada 2001, is hereby

56-29  amended to read as follows:

56-30  Section 1.  NRS 704.033 is hereby amended to read as follows:

56-31  704.033  1.  [The] Except as otherwise provided in subsection 6,

56-32  the commission shall levy and collect an annual assessment from all

56-33  public utilities , providers of discretionary natural gas service and

56-34  alternative sellers subject to the jurisdiction of the commission.

56-35  2.  Except as otherwise provided in [subsection 3,] subsections 3

56-36  and 4, the annual assessment must be:

56-37  (a) For the use of the commission, not more than 3.50 mills; and

56-38  (b) For the use of the consumer’s advocate, not more than

56-39  0.75 mills,

56-40  on each dollar of gross operating revenue derived from the intrastate

56-41  operations of such utilities , providers of discretionary natural gas

56-42  service and alternative sellers in the State of Nevada . [, except that

56-43  the minimum assessment in any 1 year must be $10.] The total annual

56-44  assessment must be not more than 4.25 mills.

56-45  3.  [For railroads the total annual assessment must be the amount

56-46  levied for the use of the commission pursuant to paragraph (a) of

56-47  subsection 2.] The levy for the use of the consumer’s advocate must

56-48  not be assessed against railroads.

56-49  4.  The minimum assessment in any 1 year must be $100.


57-1  5.  The gross operating revenue of the utilities must be determined

57-2  for the preceding calendar year. In the case of:

57-3  (a) Telephone utilities, except as otherwise provided in paragraph

57-4  (c), the revenue shall be deemed to be all intrastate revenues . [that are

57-5  considered by the commission for the purpose of establishing rates.]

57-6  (b) Railroads, the revenue shall be deemed to be the revenue

57-7  received only from freight and passenger intrastate movements.

57-8  (c) All public utilities, providers of discretionary natural gas

57-9  service and alternative sellers, the revenue does not include the

57-10  proceeds of any commodity, energy or service furnished to another

57-11  public utility , provider of discretionary natural gas service or

57-12  alternative seller for resale.

57-13  6.  Providers of commercial mobile radio service are not subject

57-14  to the annual assessment and, in lieu thereof, shall pay to the

57-15  commission an annual licensing fee of $200.

57-16  Sec. 125.  Section 2 of chapter 371, Statutes of Nevada 2001, is hereby

57-17  amended to read as follows:

57-18  Sec. 2.  NRS 704.035 is hereby amended to read as follows:

57-19  704.035  1.  On or before June 1 of each year, the commission

57-20  shall mail revenue report forms to all public utilities , providers of

57-21  discretionary natural gas service and alternative sellers under its

57-22  jurisdiction, to the address of those utilities , providers of

57-23  discretionary natural gas service and alternative sellers on file with

57-24  the commission. The revenue report form serves as notice of the

57-25  commission’s intent to assess [the utilities,] such entities, but failure

57-26  to notify any [utility] such entity does not invalidate the assessment

57-27  with respect thereto.

57-28  2.  Each public utility , provider of discretionary natural gas

57-29  service and alternative seller subject to the provisions of NRS

57-30  704.033 shall complete the revenue report referred to in subsection 1,

57-31  compute the assessment and return the completed revenue report to

57-32  the commission accompanied by payment of the assessment and any

57-33  penalty due, pursuant to the provisions of subsection 5.

57-34  3.  The assessment is due on July 1 of each year, but may, at the

57-35  option of the public utility, provider of discretionary natural gas

57-36  service or alternative seller be paid quarterly on July 1, October 1,

57-37  January 1 and April 1.

57-38  4.  The assessment computed by the utility , provider of

57-39  discretionary natural gas service or alternative seller is subject to

57-40  review and audit by the commission, and the amount of the

57-41  assessment may be adjusted by the commission as a result of the audit

57-42  and review.

57-43  5.  Any public utility , provider of discretionary natural gas

57-44  service or alternative seller failing to pay the assessment provided for

57-45  in NRS 704.033 on or before August 1, or if paying quarterly, on or

57-46  before August 1, October 1, January 1 or April 1, shall pay, in

57-47  addition to such assessment, a penalty of 1 percent of the total unpaid

57-48  balance for each month or portion thereof that the assessment is


58-1  delinquent, or $10, whichever is greater, but no penalty may exceed

58-2  $1,000 for each delinquent payment.

58-3  6.  When a public utility , provider of discretionary natural gas

58-4  service or alternative seller sells, transfers or conveys substantially all

58-5  of its assets or , if applicable, its certificate of public convenience and

58-6  necessity, the commission shall determine, levy and collect the

58-7  accrued assessment for the current year not later than 30 days after the

58-8  sale, transfer or conveyance, unless the transferee has assumed

58-9  liability for the assessment. For purposes of this subsection , the

58-10  jurisdiction of the commission over the selling, transferring or

58-11  conveying public utility , provider of discretionary natural gas

58-12  service or alternative seller continues until it has paid the assessment.

58-13  7.  The commission may bring an appropriate action in its own

58-14  name for the collection of any assessment and penalty which is not

58-15  paid as provided in this section.

58-16  8.  The commission shall, on a quarterly basis, transfer to the

58-17  account for the consumer’s advocate that portion of the assessments

58-18  collected which belongs to the consumer’s advocate.

58-19  Sec. 126.  Section 6 of chapter 519, Statutes of Nevada 2001, is hereby

58-20  amended to read as follows:

58-21  Sec. 6.  1.  “Provider of electric service” and “provider” mean

58-22  any person or entity that is in the business of selling electricity to

58-23  retail customers for consumption in this state, regardless of whether

58-24  the person or entity is otherwise subject to regulation by the

58-25  commission.

58-26  2.  The term includes, without limitation, a provider of new

58-27  electric resources that is selling electricity to an eligible customer

58-28  for consumption in this state pursuant to the provisions of sections 3

58-29  to 26, inclusive, of Assembly Bill No. 5 of the 17th special session of

58-30  the Nevada Legislature.

58-31  3.  The term does not include:

58-32  (a) This state or an agency or instrumentality of this state.

58-33  (b) A rural electric cooperative established pursuant to chapter 81

58-34  of NRS.

58-35  (c) A general improvement district established pursuant to chapter

58-36  318 of NRS.

58-37  (d) A utility established pursuant to chapter 709 or 710 of NRS.

58-38  (e) A cooperative association, nonprofit corporation, nonprofit

58-39  association or provider of electric service which is declared to be a

58-40  public utility pursuant to NRS 704.673 and which provides service

58-41  only to its members.

58-42  (f) A landlord of a mobile home park or owner of a company town

58-43  who is subject to any of the provisions of NRS 704.905 to 704.960,

58-44  inclusive.

58-45  (g) A landlord who pays for electricity that is delivered through a

58-46  master meter and who distributes or resells the electricity to one or

58-47  more tenants for consumption in this state.

58-48  Sec. 127.  Section 8 of chapter 519, Statutes of Nevada 2001, is hereby

58-49  amended to read as follows:


59-1  Sec. 8.  “Renewable energy system” means:

59-2  1.  A facility or energy system that:

59-3  (a) Uses renewable energy to generate electricity; and

59-4  (b) Transmits or distributes the electricity that it generates from

59-5  renewable energy via:

59-6        (1) A power line which is dedicated to the transmission or

59-7  distribution of electricity generated from renewable energy and which

59-8  is connected to a facility or system owned, operated or controlled by a

59-9  provider of electric service; or

59-10        (2) A power line which is shared with not more than one facility

59-11  or energy system generating electricity from nonrenewable energy

59-12  and which is connected to a facility or system owned, operated or

59-13  controlled by a provider of electric service.

59-14  2.  A solar thermal energy system that reduces the consumption of

59-15  electricity.

59-16  3.  A net metering system used by a customer-generator

59-17  pursuant to NRS 704.766 to 704.775, inclusive.

59-18  Sec. 128.  Section 9 of chapter 519, Statutes of Nevada 2001, is hereby

59-19  amended to read as follows:

59-20  Sec. 9.  1.  “Retail customer” means [a customer who] an end-

59-21  use customer that purchases electricity [at retail.] for consumption in

59-22  this state.

59-23  2.  The term includes, without limitation:

59-24  (a) This state, a political subdivision of this state or an agency or

59-25  instrumentality of this state or political subdivision of this state when

59-26  it is an end-use customer that purchases electricity [at retail; and] for

59-27  consumption in this state, including, without limitation, when it is

59-28  an eligible customer that purchases electricity for consumption in

59-29  this state from a provider of new electric resources pursuant to the

59-30  provisions of sections 3 to 26, inclusive, of Assembly Bill No. 5 of

59-31  the 17th special session of the Nevada Legislature.

59-32  (b) A residential, commercial or industrial end-use customer that

59-33  purchases electricity for consumption in this state, including,

59-34  without limitation, an eligible customer that purchases electricity for

59-35  consumption in this state from a provider of new electric resources

59-36  pursuant to the provisions of sections 3 to 26, inclusive, of Assembly

59-37  Bill No. 5 of the 17th special session of the Nevada Legislature.

59-38  (c) A landlord of a mobile home park or owner of a company town

59-39  who is subject to any of the provisions of NRS 704.905 to 704.960,

59-40  inclusive.

59-41  (d) A landlord who pays for electricity that is delivered through a

59-42  master meter and who distributes or resells the electricity to one or

59-43  more tenants for consumption in this state.

59-44  Sec. 129.  1.  NRS 523.171, 704.080, 704.090 and 704.275 are

59-45  hereby repealed.

59-46  2.  Section 10 of chapter 16, Statutes of Nevada 2001, is hereby

59-47  repealed.

59-48  3.  Section 2 of chapter 349, Statutes of Nevada 2001, is hereby

59-49  repealed.


60-1    4.  Section 4 of chapter 519, Statutes of Nevada 2001, is hereby

60-2  repealed.

60-3    Sec. 130.  1.  For the purposes of sections 3 to 26, inclusive, of this

60-4  act:

60-5    (a) An electric utility that provides distribution services to an eligible

60-6  customer who is purchasing energy, capacity or ancillary services from a

60-7  provider of new electric resources shall charge the eligible customer based

60-8  upon the rates for the electric utility’s distribution services that were on file

60-9  with the commission on April 1, 2001, until the commission approves a

60-10  change in those rates and such a change becomes effective.

60-11  (b) Not later than March 1, 2002, the commission shall establish the

60-12  initial rates for all other components of electric service which are within

60-13  the jurisdiction of the commission and which are necessary for a provider

60-14  of new electric resources to sell energy, capacity and ancillary services to

60-15  an eligible customer pursuant to the provisions of sections 3 to 26,

60-16  inclusive, of this act. The commission may establish such initial rates as a

60-17  part of a general rate application that is pending or filed with the

60-18  commission on or after the effective date of this act.

60-19  2.  The commission shall:

60-20  (a) Not later than November 1, 2001, adopt regulations to carry out and

60-21  enforce the provisions of sections 3 to 26, inclusive, of this act.

60-22  (b) Not later than March 1, 2002, approve tariffs to carry out and

60-23  enforce the provisions of section 22 of this act.

60-24  3.  Notwithstanding the provisions of section 25 of this act, the

60-25  commission is not required to submit a report to the legislative commission

60-26  for any calendar quarter that ends before October 1, 2001.

60-27  4.  As used in this section, the words and terms defined in sections 4 to

60-28  16, inclusive, of this act have the meanings ascribed to them in those

60-29  sections.

60-30  Sec. 131.  1.  As soon as practicable after July 1, 2003, the governor

60-31  shall appoint two additional commissioners to the public utilities

60-32  commission of Nevada in accordance with the provisions of section 47 of

60-33  this act. For the initial terms of those commissioners, the governor shall

60-34  appoint:

60-35  (a) One commissioner whose term begins on October 1, 2003, and

60-36  expires on September 30, 2005; and

60-37  (b) One commissioner whose term begins on October 1, 2003, and

60-38  expires on September 30, 2006.

60-39  2.  The provisions of this act do not abrogate or affect the term of office

60-40  of any other commissioner of the public utilities commission of Nevada.

60-41  Sec. 132.  1.  The provisions of section 76 of this act do not apply

60-42  to any transaction entered into by a local governmental entity before

60-43  January 1, 2002, to acquire or otherwise obtain control of the assets of a

60-44  public utility providing water services.

60-45  2.  As used in this section:

60-46  (a) “Assets” includes, without limitation, any hydroelectric plant,

60-47  facility, equipment or system which has a generating capacity of not more

60-48  than 15 megawatts and which is located on the Truckee River or on a

60-49  waterway that is appurtenant to or connected to the Truckee River.


61-1    (b) “Local governmental entity” means a political subdivision of this

61-2  state or an agency or instrumentality of one or more political subdivisions

61-3  of this state. The term includes, without limitation, a public water authority

61-4  created by or consisting of one or more political subdivisions of this state.

61-5    Sec. 133.  1.  As soon as practicable after the effective date of this

61-6  act, the appointing authorities set forth in section 106 of this act shall

61-7  appoint members to the task force for renewable energy and energy

61-8  conservation which is created by section 106 of this act.

61-9    2.  At the first meeting of the task force following the appointment of

61-10  the initial members of the task force, the initial members of the task force

61-11  shall draw lots to determine which:

61-12  (a) Five members of the task force will serve initial terms that expire on

61-13  June 30, 2004.

61-14  (b) Four members of the task force will serve initial terms that expire on

61-15  June 30, 2003.

61-16  3.  Not later than 10 days after the first meeting of the task force

61-17  following the appointment of the initial members of the task force, the

61-18  public utilities commission of Nevada shall transfer the sum of $250,000

61-19  from its reserve account in the public utilities commission regulatory fund,

61-20  created by NRS 703.147, to the trust fund for renewable energy and energy

61-21  conservation, created by section 105 of this act.

61-22  Sec. 134.  1.  Notwithstanding the provisions of this act and except as

61-23  otherwise provided in subsection 2, the department of business and

61-24  industry and its director shall exercise all the power and perform all the

61-25  duties that are assigned to the office of energy and its director pursuant to

61-26  the provisions of chapter 523 of NRS, as amended by this act, until the date

61-27  on which the governor certifies that the office of energy and its director are

61-28  prepared to carry out those provisions, or until January 1, 2002, whichever

61-29  occurs earlier.

61-30  2.  During the period described in subsection 1, the office of energy and

61-31  its director may exercise any power and perform any duty assigned to them

61-32  pursuant to the provisions of chapter 523 of NRS, as amended by this act,

61-33  if the exercise of the power or the performance of the duty is necessary as

61-34  an organizational, preparatory or preliminary measure to prepare the office

61-35  of energy and its director to carry out those provisions.

61-36  Sec. 135.  1.  Any administrative regulations adopted by an officer or

61-37  an agency whose name has been changed or whose responsibilities have

61-38  been transferred pursuant to the provisions of this act to another officer or

61-39  agency remain in force until amended by the officer or agency to which the

61-40  responsibility for the adoption of the regulations has been transferred.

61-41  2.  Any contracts or other agreements entered into by an officer or

61-42  agency whose name has been changed or whose responsibilities have been

61-43  transferred pursuant to the provisions of this act to another officer or

61-44  agency are binding upon the officer or agency to which the responsibility

61-45  for the administration of the provisions of the contract or other agreement

61-46  has been transferred. Such contracts and other agreements may be enforced

61-47  by the officer or agency to which the responsibility for the enforcement of

61-48  the provisions of the contract or other agreement has been transferred.


62-1    3.  Any action taken by an officer or agency whose name has been

62-2  changed or whose responsibilities have been transferred pursuant to the

62-3  provisions of this act to another officer or agency remains in effect as if

62-4  taken by the officer or agency to which the responsibility for the

62-5  enforcement of such actions has been transferred.

62-6    Sec. 136.  1.  This section and sections 1 to 46, inclusive, 49 to 117,

62-7  inclusive, 119 to 135, inclusive, and 137 of this act become effective upon

62-8  passage and approval.

62-9    2.  Section 118 of this act becomes effective on July 1, 2001.

62-10  3.  Sections 47 and 48 of this act become effective on October 1, 2003.

62-11  Sec. 137.  1.  The legislative counsel shall:

62-12  (a) In preparing the reprint and supplements to the Nevada Revised

62-13  Statutes, appropriately change any references to an officer or agency whose

62-14  name is changed or whose responsibilities have been transferred pursuant

62-15  to the provisions of this act to refer to the appropriate officer or agency.

62-16  (b) In preparing supplements to the Nevada Administrative Code,

62-17  appropriately change any references to an officer or agency whose name is

62-18  changed or whose responsibilities have been transferred pursuant to the

62-19  provisions of this act to refer to the appropriate officer or agency.

62-20  2.  Any reference in a bill or resolution passed by the 71st session of

62-21  the Nevada Legislature or the 17th special session of the Nevada

62-22  Legislature to an officer or agency whose name is changed or whose

62-23  responsibilities have been transferred pursuant to the provisions of this act

62-24  to another officer or agency shall be deemed to refer to the officer or

62-25  agency to which the responsibility is transferred.

 

 

62-26  TEXT OF REPEALED SECTIONS

 

 

62-27  523.171  Information and assistance to state agencies. The

62-28   director, in cooperation with the chief of the buildings and grounds

62-29   division of the department of administration, shall, upon request, provide

62-30   information and assistance to any agency, bureau, board, commission,

62-31   department or division which is engaged in the management, planning,

62-32   utilization and distribution of energy.

62-33  704.080  Printing and posting of schedules. A copy, or so much of

62-34   the schedule as the commission shall deem necessary for the use of the

62-35   public, shall be printed in plain type and posted in every station or office

62-36   of such public utility where payments are made by the consumers or users,

62-37   open to the public, in such form and place as to be readily accessible to the

62-38   public and conveniently inspected.

62-39  704.090  Schedule of joint rates: Filing; printing; posting. When a

62-40   schedule of joint rates or charges is or may be in force between two or

62-41   more public utilities, such schedule shall, in like manner, be printed and

62-42   filed with the commission, and so much thereof as the commission may

62-43   deem necessary for the use of the public shall be posted conspicuously in

62-44   every station or office as provided in NRS 704.080.


63-1  704.275  Powers of commission: Standards for requiring hearing

63-2  on telephone rates. The commission shall determine whether a hearing

63-3   must be held when the proposed change by a public utility furnishing

63-4   telephone service in any schedule stating a new or revised individual or

63-5   joint rate or charge, or any new or revised individual or joint regulation or

63-6   practice affecting any rate or charge, will result in an increase in annual

63-7   gross revenue as certified by the applicant of $50,000 or 10 percent of the

63-8   applicant’s gross revenue, whichever is less.

63-9  Section 10 of chapter 16, Statutes of Nevada 2001:

63-10  Sec. 10. “Consumer’s advocate” means the consumer’s

63-11   advocate of the bureau of consumer protection in the office of the

63-12   attorney general.

63-13  Section 2 of chapter 349, Statutes of Nevada 2001:

63-14  Sec. 2.  NRS 704.965 is hereby amended to read as follows:

63-15  704.965  As used in NRS 704.965 to 704.990, inclusive, and

63-16   section 1 of this act, unless the context otherwise requires, the words

63-17   and terms defined in NRS 704.966 to 704.975, inclusive, have the

63-18   meanings ascribed to them in those sections.

63-19  Section 4 of chapter 519, Statutes of Nevada 2001:

63-20  Sec. 4. “Biomass” means any organic matter that is available

63-21   on a renewable basis, including, without limitation:

63-22  1.  Agricultural crops and agricultural wastes and residues;

63-23  2.  Wood and wood wastes and residues;

63-24  3.  Animal wastes;

63-25  4.  Municipal wastes; and

63-26  5.  Aquatic plants.

 

63-27  H