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. Chapter 704 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 to 9, inclusive, of this act.

1-3 Sec. 2. As used in sections 2 to 9, inclusive, of this act, unless the

1-4 context otherwise requires, the words and terms defined in sections 3 and

1-5 4 of this act have the meanings ascribed to them in those sections.

1-6 Sec. 3. "Consumer group" means a consumer group as designated

1-7 by the governing body of a county or municipality pursuant to sections 2

1-8 to 9, inclusive, of this act.

2-1 Sec. 4. "Governing body" means the governing body of a county or

2-2 municipality.

2-3 Sec. 5. 1. The governing body of a county or municipality may, by

2-4 resolution, designate the county or municipality to be a consumer group

2-5 for the purpose of obtaining electric services at a competitive price for the

2-6 residents and small businesses in the county or municipality, as

2-7 appropriate.

2-8 2. The governing body shall, on behalf of the consumer group, enter

2-9 into contracts with electric distribution utilities and alternative sellers to

2-10 procure generation, aggregation and other potentially competitive

2-11 services for the residents and small businesses participating in the

2-12 consumer group.

2-13 3. The governing body may aggregate or bundle such electric

2-14 services as it determines necessary for the consumer group, or may

2-15 employ or enter into a contract with a person to aggregate or bundle the

2-16 electric services for the consumer group.

2-17 4. A governing body that procures generation, aggregation and other

2-18 potentially competitive services for a consumer group pursuant to

2-19 sections 2 to 9, inclusive, of this act is not subject to the jurisdiction of the

2-20 commission as a utility or alternative seller.

2-21 Sec. 6. Each resident and small business in a county or municipality

2-22 that has been designated a consumer group pursuant to sections 2 to 9,

2-23 inclusive, of this act is a member of the consumer group unless the

2-24 resident or small business requests, in writing, to be excluded from

2-25 participation in the consumer group. If a resident or small business

2-26 chooses to be excluded from participation in a consumer group, the

2-27 resident or small business shall so notify the governing body and the

2-28 utility or alternative seller that is providing the electric services to the

2-29 consumer group.

2-30 Sec. 7. A resident who, or a small business that, is participating in a

2-31 consumer group is responsible for the payment of the electric services

2-32 provided in accordance with sections 2 to 9, inclusive, of this act to the

2-33 resident or small business, respectively.

2-34 Sec. 8. A governing body may enter into a cooperative agreement in

2-35 accordance with NRS 277.045 with another governing body to create a

2-36 consumer group consisting of the residents and small businesses located

2-37 within the combined jurisdiction of the governing bodies. The

2-38 cooperative agreement must include, without limitation, the designation

2-39 of the person, governing body or other entity that will act on behalf of the

2-40 consumer group to procure generation, aggregation and other potentially

2-41 competitive services for the residents and small businesses participating

2-42 in the combined consumer group.

3-1 Sec. 9. A governing body may, by resolution, dissolve the consumer

3-2 group if the governing body determines that the number of customers

3-3 participating in the consumer group has been reduced to such an extent

3-4 that the continuation of the consumer group would be economically

3-5 untenable. If the consumer group was created pursuant to a cooperative

3-6 agreement in accordance with section 8 of this act, the consumer group

3-7 may be dissolved only if each governing body subject to the cooperative

3-8 agreement agrees, by resolution, to the dissolution of the consumer

3-9 group.

3-10 Sec. 10. NRS 704.965 is hereby amended to read as follows:

3-11 704.965 As used in NRS 704.965 to 704.990, inclusive, and sections 2

3-14 meanings ascribed to them in those sections.

3-15 Sec. 11. This act becomes effective on July 1, 1999.