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).

1-1 Section 1. NRS 704.976 is hereby amended to read as follows:

1-2 704.976 1. The date upon which customers may begin obtaining

1-16 alternative sellers in different geographic areas; and

2-1 (b) Authorize, in gradual phases, the right to buy from alternative

2-2 sellers.

2-3 3. The commission shall determine that an electric service is a

2-4 potentially competitive service if provision of the service by alternative

2-5 sellers:

2-6 (a) Will not harm any class of customers;

2-7 (b) Will decrease the cost of providing the service to customers in this

2-8 state or increase the quality or innovation of the service to customers in

2-9 this state;

2-10 (c) Is a service for which effective competition in the market is likely to

2-11 develop;

2-12 (d) Will advance the competitive position of this state relative to

2-13 surrounding states; and

2-14 (e) Will not otherwise jeopardize the safety and reliability of the electric

2-15 service in this state.

2-16 4. If the commission determines that a market for a potentially

2-17 competitive service does not have effective competition, the commission

2-18 shall, by regulation, establish the method for determining prices for the

2-19 service and the terms and conditions for providing the service. The

2-20 regulations must ensure that the pricing method, terms and conditions are

2-21 just and reasonable and not unduly discriminatory. The regulations may

2-22 include pricing alternatives which authorize the seller to reduce prices

2-23 below maximum pricing levels specified by the commission or any other

2-24 form of alternative pricing which the commission determines to be

2-25 consistent with the provisions of this subsection. In determining whether a

2-26 market for an electric service has effective competition, the commission

2-27 shall:

2-28 (a) Identify the relevant market;

2-29 (b) Identify, where feasible, the alternative sellers that participate and

2-30 are reasonably expected to participate in the relevant market; and

2-31 (c) Calculate, where feasible, the market share of each participant in the

2-32 market and evaluate the significance of each share.

2-33 5. On or before October 1, 2000, the commission shall submit to the

2-34 director of the legislative counsel bureau for transmittal to the appropriate

2-35 legislative committee a report which:

2-36 (a) Evaluates the effectiveness of competition in the market for each

2-37 service which customers have the right to purchase from alternative sellers;

2-38 and

2-39 (b) Recommends actions which the legislature should take to increase

2-40 the effectiveness of competition in the markets for all potentially

2-41 competitive services.

2-42 6. On or before October 1, 2001, an electric service that has been

2-43 found to be potentially competitive shall be deemed to be competitive.

3-1 7. The commission may reconsider any determination made pursuant

3-2 to this section upon its own motion or upon a showing of good cause by a

3-3 party requesting a reconsideration. Upon a finding by the commission that

3-4 the market for a service previously found not to have effective competition

3-5 has become effectively competitive, the commission shall repeal the

3-6 regulations which established the pricing methods and the terms and

3-7 conditions for providing that service. The commission shall conduct any

3-8 proceedings for the reconsideration of any such determination as

3-9 expeditiously as practicable considering the current work load of the

3-10 commission and the need to protect the public interest.

3-11 8. A vertically integrated electric utility shall not provide a potentially

3-12 competitive service except through an affiliate:

3-13 (a) On or after [December 31, 1999;] March 1, 2000; or

3-14 (b) The date on which the commission determines that the service is

3-15 potentially competitive,

3-16 whichever is later.

3-17 Sec. 2. This act becomes effective upon passage and approval.