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 704.324 is hereby amended to read as follows:

1-2 704.324 1. Upon receipt of an application for an order authorizing

1-15 accounting and rate making for an existing or new variable-rate security

2-1 which ensures that the recovery of the utility’s expenses for issuing or

2-2 maintaining that security from the rates charged to its customers will equal

2-3 the interest or dividends actually paid on the security.

2-4 3. The commission shall not require a public utility to issue or

2-5 maintain a variable-rate security if the recovery of the utility’s expenses for

2-6 issuing or maintaining that security from the rates charged to its customers

2-7 does not equal the interest or dividends actually paid on the security.

2-8 4. The commission may from time to time make such supplemental

2-9 orders in the premises as it may find necessary or appropriate. The

2-10 supplemental order may modify the provisions of any previous order as to

2-11 the particular purposes, uses and extent to which, or the conditions under

2-12 which, any security theretofore authorized or the proceeds thereof may be

2-13 applied.

2-14 5. The commission shall not make any order or supplemental order

2-15 granting any application hereunder unless it finds that the issue or

2-16 assumption:

2-17 (a) Is for some lawful object, within the corporate purposes of the

2-18 applicant and compatible with the public interest, which is necessary or

2-19 appropriate for or consistent with the proper performance by the applicant

2-20 of service as a public utility and which will not impair its ability to perform

2-21 that service; and

2-22 (b) Is reasonably necessary or appropriate for those purposes.

2-23 6. The commission shall not authorize the capitalization of the right to

2-24 be a corporation or any franchise, permit or contract for consolidation,

2-25 merger or lease in excess of the amount, exclusive of any tax or annual

2-26 charge, actually paid as the consideration for the right, franchise, permit or

2-27 contract.

2-28 Sec. 2. For the purposes of the amendatory provisions of this act, an

2-29 application for an order authorizing the issuance of any security or the

2-30 assumption of any obligation in respect to any security of another that is

2-31 pending before the public utilities commission of Nevada on the effective

2-32 date of this act shall be deemed to have been received by the commission

2-33 on the effective date of this act.

2-34 Sec. 3. This act becomes effective upon passage and approval.