Assembly Amendment to Senate Bill No. 438 First Reprint (BDR 58-861)
Proposed by: Assembly Select Committee on Senate Bill No. 438
Amendment Box:
Amends: Summary: Title: Preamble: Joint Sponsorship:
ASSEMBLY ACTION
Initial and Date | SENATE ACTION Initial and DateAdopted Lost | Adopted Lost
Concurred In Not | Concurred In Not
Receded Not | Receded Not
Amend the bill as a whole by deleting sections 1 through 10, renumbering sections 11 and 12 as sections 2 and 3 and adding a new section designated section 1, following the enacting clause, to read as follows:
"Section 1. NRS 703.130 is hereby amended to read as follows:
703.130 1. The commission shall appoint a deputy commissioner who shall serve in the unclassified service of the state.2. The commission shall appoint a secretary who shall perform such administrative and other duties as are prescribed by the commission. The commission shall also appoint an assistant secretary.
3. The commission may employ such other clerks, experts or engineers as may be necessary.
4. The commission may appoint one or more hearing officers for a period specified by the commission to conduct proceedings or hearings that may be conducted by the commission pursuant to chapters 704, 704A, 705, 708 and 711 of NRS. The commission shall prescribe by regulation the procedure for appealing a decision of a hearing officer to the commission.
".Amend sec. 11, page 5, line 13, by deleting:
"12, 13 and 14" and inserting:
"3 to 6, inclusive,".
Amend sec. 12, page 5, by deleting lines 14 through 38 and inserting:
"Sec. 3.
1. A vertically integrated electric utility that is in existence on January 1, 1999, or its successor electric distribution utility or any assignee of the utility shall comply with the terms of any existing obligations for the purchase of power as those terms have been interpreted by the parties to the obligations.2. To recover any costs associated with an obligation for the purchase of power, a vertically integrated electric utility in existence on January 1, 1999, or its successor electric distribution utility or any assignee of the utility must demonstrate to the commission that it has made reasonable efforts to reduce the cost or increase the value of the obligation, including, without limitation, by:
(a) Evaluating the costs and benefits of the obligation and analyzing whether there are any reasonable options under the existing provisions of the obligation that may reduce the costs or increase the benefits of the obligation;
(b) Reporting on the good faith attempts by the utility or its assignee to seek an increase in value or reduction in cost from the provider of the purchased power under the existing provisions of the obligation;
(c) Showing that the utility or its assignee has exercised to the extent practicable the terms of the existing obligation to mitigate the cost of the obligation or has assessed the value of retaining the obligation;
(d) Providing a citation to an order of the commission approving the obligation, or if such an order does not exist or is not available, providing all information, including, without limitation, any actions or statements by the commission or any state or federal agency, that demonstrates the commitment of the utility or its assignee to the obligation; and
(e) Providing all information indicating the extent to which the rates previously established by the commission have compensated shareholders for the risk of not recovering the costs of the obligation.
3. After a utility has made a showing pursuant to subsection 2, the commission shall determine the recoverable costs associated with such an obligation for the purchase of power and shall allow the utility or assignee to recover those costs from all classes of customers through a charge imposed for noncompetitive services.
4. The provisions of this section must not be construed to allow the reinterpretation, modification or termination of any obligation for the purchase of power in effect on July 1, 1999, without the agreement of the parties to the obligation.
".Amend the bill as a whole by deleting sec. 13, renumbering sections 14 through 15.5 as sections 6 through 8 and adding new sections designated sections 4 and 5, following sec. 12, to read as follows:
"Sec. 4.
The commission shall, for each class of customers of electric service in this state, establish a total rate for the components of electric service that are necessary to provide electric service to customers in this state pursuant to subsection 1 of NRS 704.982. The total rate for each class may not exceed the total rate for each class of customers of electric service in this state which is in effect on July 1, 1999, except that the commission shall modify the rates to account for the effects of any decisions by the commission relating to any cases filed with the commission before October 1, 1999, which involve the use of deferred accounting. Upon approval by the commission, the provider designated pursuant to subsection 1 of NRS 704.982 may reduce the total rate for any class of customers. The total rates established pursuant to this subsection do not apply to any customer who obtains generation, aggregation or any other potentially competitive service from an alternative seller.Sec. 5.
1. The provider of electric service designated pursuant to subsection 1 of NRS 704.982 is entitled to recover only from the gain, if any, from the sale by the provider of its generation assets any shortfall during the period commencing on March 1, 2000, and ending on March 1, 2003, that results from the netting of any difference between:(a) The revenues generated by the total rates charged to all classes of customers pursuant to section 4 of this act; and
(b) The total cost incurred by the provider to provide that service to all classes of customers. 2. Upon approval of the amount of the net shortfall, if any, the commission shall authorize the designated provider to recover that amount from the gain if any, on the sale of its generation assets, after the deduction of any taxes.
3. As used in this section, "total cost incurred by the provider" means the total revenues generated by all classes by the rates in effect on July 1, 1999, as adjusted to account for the effects of any decision of the commission relating to any cases filed with the commission before October 1, 1999, which involve the use of deferred accounting.".
Amend sec. 14, page 6, by deleting lines 31 through 35 and inserting:
"
seller may submit to the commission an offer to provide electric service that is being provided by the provider designated pursuant to subsection 1 of NRS 704.982. The offer must:(a) Request to serve at least 10 percent of the load of the provider designated pursuant to subsection 1 of NRS 704.982;".
Amend sec. 14, page 6, by deleting line 39 and inserting:
"
prescribed in subsection 2 of NRS 704.982.".Amend sec. 14, page 6, line 40, by deleting "
a bid," and inserting "an offer,".Amend sec. 14, page 7, by deleting lines 5 through 7 and inserting:
"
Each bid must be not less than 10 percent of the load, as measured in megawatts or megawatt hours, of the load of the provider designated pursuant to subsection 1 of NRS 704.982.".Amend sec. 14, page 7, line 12, by deleting:
"
For the percentage of the" and inserting "For the".Amend sec. 14, page 7, by deleting line 13 and inserting:
"
remainder of the load that is not awarded to a successful bidder, the".Amend sec. 14, page 7, line 17, by deleting:
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the affiliate of".Amend the bill as a whole by deleting sec. 16 and renumbering sections 17 through 22 as sections 9 through 14.
Amend sec. 17, page 10, line 20, by deleting:
"
12, 13 and 14" and inserting:"
3 to 6, inclusive,".Amend sec. 21, page 12, by deleting lines 37 through 40 and inserting:
"obtained a license from the commission to do so.".
Amend sec. 21, page 13, line 15, by deleting:
"
12, 13 and 14" and inserting:"
3 to 6, inclusive,".Amend sec. 21, page 13, line 27, by deleting:
"
12, 13 and 14" and inserting:"
3 to 6, inclusive,".Amend sec. 21, page 13, line 41, by deleting:
"
12, 13 and 14" and inserting:"
3 to 6, inclusive,".Amend sec. 21, page 14, by deleting lines 18 and 19 and inserting:
"provisions of NRS 704.965 to 704.990, inclusive
9. An alternative seller may combine two or more customers or any group of customers to provide aggregation service. The commission may not limit the ability of:
(a) An alternative seller to combine customers to provide aggregation service; or
(b) Customers to form groups to obtain aggregation service from alternative sellers.".
Amend the bill as a whole by deleting sec. 23, renumbering sec. 24 as sec. 18 and adding new sections designated sections 15 through 17, following sec. 22, to read as follows:
"Sec. 15. NRS 704.981 is hereby amended to read as follows:
704.981 1. An electric distribution utility shall provide all noncompetitive services within its territory unless the commission authorizes another entity to provide the noncompetitive service.
2. A noncompetitive service is subject to NRS 704.001 to 704.655, inclusive, 704.701 to 704.751, inclusive, and 704.800 to 704.900, inclusive.
3.
The component rates for noncompetitive services established by the commission pursuant to NRS 704.986 must be used by customers who elect to receive competitive or potentially competitive services from alternative sellers or from the Colorado River Commission pursuant to NRS 704.987.4.
The commission shall adopt regulations for noncompetitive services that allow innovative pricing methods for noncompetitive services upon a finding that the innovative pricing, when compared to pricing of services provided pursuant to subsections 1 and 2, improves the performance of the service or lowers the cost of the service to the customer, or both. The regulations for innovative pricing must specify:(a) The provisions that must be included in a plan of innovative pricing;
(b) The procedures for submitting an innovative plan for pricing to the commission for approval and implementation; and
(c) Which provisions of this chapter do not apply to pricing changes that are made during the period in which the innovative pricing plan is in effect.
Sec. 16. NRS 704.982 is hereby amended to read as follows:
704.982 1. The commission shall designate a vertically integrated electric utility or its successor electric distribution utility to provide electric service to customers who are unable to obtain electric service from an alternative seller or who fail to select an alternative seller. The provider so designated by the commission is obligated to provide electric service to the customers. Electric service provided by the utility pursuant to this section shall be deemed to be a noncompetitive service for which the utility may recover its costs pursuant to NRS 704.001 to 704.655, inclusive, 704.701 to 704.751, inclusive, and 704.800 to 704.900, inclusive.2.
The rate that the designated provider of electric service must charge a customer for the provision of electric service pursuant to subsection 1 is the total rate established for that class of customer by the commission pursuant to section 4 of this act.3.
Upon a finding by the commission that the public interest will be promoted, the commission may prescribe alternate methods for providing electric service to those customers described in subsection 1. The alternate methods may include, but are not limited to, the direct assignment of customers to alternative sellers or electric distribution utilities or a process of competitive bidding for the right to provide electric service to the designated customers3.] , including, without limitation, an auction conducted pursuant to section 6 of this act. Any alternate methods prescribed by the commission pursuant to this subsection may not go into effect before July 1, 2001.
4. The commission shall establish minimum terms and conditions under which electric service must be provided pursuant to this section, including a minimum period during which a customer must be obligated to pay for the electric service from the assigned provider. The price charged for electric service for a particular group of customers must reflect the incremental cost of serving the group.
[4.] A customer who has obtained generation, aggregation or any other potentially competitive service from an alternative seller after March 1, 2000, for at least 30 continuous days may reacquire service from the designated provider pursuant to tariffs approved by the commission.
5. If the designated provider of the electric service pursuant to subsection 1 is a vertically integrated electric utility, the utility shall provide the electric service on or after July 1, 2001, only through an affiliate whose sole business activity is the provision of electric service.
[5. Except as otherwise provided in this subsection and subsection 6, the rate charged for residential service provided pursuant to subsection 1 must not exceed the rate charged for that service on July 1, 1997. The limitation set forth in this subsection is effective until 2 years after the date upon which, in accordance with NRS 704.976, the commission repeals the regulations which established the pricing method for that service and the terms and conditions for providing that service.
6. The commission may, in accordance with NRS 704.110, 704.120 and 704.130, approve an increase in the rate charged for residential service provided pursuant to subsection 1 in an amount that does not exceed the increase necessitated, if any, to ensure the recovery by the vertically integrated electric utility of its just and reasonable costs. The provisions of this section do not limit or prohibit in any manner the operation of any order issued by the commission before July 1, 1997.]
6. Except upon the application of the designated provider to reduce the total rate for any class of customers pursuant to section 4 of this act, the commission shall not initiate or conduct any proceedings to adjust the rates, earnings, rate base or rate of return of the designated provider of electric service during the period in which the provider is providing that service to customers pursuant to this section.
Sec. 17. NRS 704.982 is hereby amended to read as follows: 704.982 1. The commission shall designate
2.
3.] Upon a finding by the commission that the public interest will be promoted, the commission may prescribe alternate methods for providing electric service to those customers described in subsection 1. The alternate methods may include, but are not limited to, the direct assignment of customers to alternative sellers or other electric distribution utilities or a process of competitive bidding for the right to provide electric service to the designated customers, including, without limitation, an auction conducted pursuant to section 6 of this act. [Any alternate methods prescribed by the commission pursuant to this subsection may not go into effect before July 1, 2001.
4.] 3. The commission shall establish minimum terms and conditions under which electric service must be provided pursuant to this section, including a minimum period during which a customer must be obligated to pay for the electric service from the assigned provider. The price charged for electric service for a particular group of customers must reflect the incremental cost of serving the group. A customer who has obtained generation, aggregation or any other potentially competitive service from an alternative seller [after March 1, 2000,] for at least 30 continuous days may reacquire service from the designated provider pursuant to tariffs approved by the commission.
[5.] 4. If the designated provider of the electric service pursuant to subsection 1 is [a vertically integrated] an electric distribution utility, the utility shall provide the electric service [on or after July 1, 2001,] only through an affiliate whose sole business activity is the provision of electric service.
[6. The commission shall not initiate or conduct any proceedings to adjust the rates, earnings, rate base or rate of return of the designated provider of electric service during the period in which the provider is providing that service to customers pursuant to this section.]".
Amend sec. 24, page 15, line 41, by deleting "In" and inserting:
"
Amend sec. 24, page 16, line 2, by deleting the semicolon and inserting " .
Amend sec. 24, page 16, line 5, by deleting the semicolon and inserting "
.Amend sec. 24, page 16, line 6, by deleting "The" and inserting:
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Amend sec. 24, page 16, line 9, by deleting the semicolon and inserting:
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.Amend sec. 24, page 16, line 12, by deleting the semicolon and inserting "
.Amend sec. 24, page 16, by deleting line 15 and inserting "obligations
.Amend the bill as a whole by renumbering sections 25 and 26 as sections 20 and 21 and adding a new section designated sec. 19, following sec. 24, to read as follows:
"Sec. 19. NRS 704.984 is hereby amended to read as follows:
704.984 A vertically integrated electric utility shall take such reasonable steps as are necessary to minimize layoffs and any other adverse effects on the employees of the vertically integrated electric utility that result from the beginning of provision of potentially competitive services by alternative sellers. In determining the recoverable costs of the vertically integrated electric utility pursuant to NRS 704.983, the commission shall consider any reasonable costs incurred by the vertically integrated electric utility pursuant to this section, including, without limitation, the costs for severance pay, retraining, job placement and early retirement for employees of the vertically integrated electric utility.".Amend the bill as a whole by renumbering sections 27 and 28 as sections 26 and 27 and adding new sections designated sections 22 through 25, following sec. 26, to read as follows:
"Sec. 22. On or before March 1, 2000, the commission shall, for the purposes of NRS 704.986, establish for each class of customers of electric service in this state the rate for each component and a total rate for electric services for customers based on the cost to provide electric service to each class of customers in this state. The total rate established for each class of customers pursuant to this section must be the same as the total rate for each class of customers that is in effect on July 1, 1999.
Sec. 23. On or before March 1, 2000, a vertically integrated electric utility may negotiate and enter into a contract with a customer for the provision of electric service, but no such contract is effective before March 1, 2000.
Sec. 24. This act must not be construed to impair any existing rights under contracts for electric service in effect on June 1, 1999.
Sec. 25. This act must not be construed to impair any existing rights under any labor agreement to which a vertically integrated electric utility or its successor electric distribution utility or an affiliate thereof is a party on July 1, 1999.".
Amend sec. 27, page 17, by deleting lines 33 through 37 and inserting:
"Sec. 26. 1. This section and sections 1 to 6, inclusive, 9 to 16, inclusive, 18 to 23, inclusive, 25 and 27 of this act become effective on July 1, 1999.
2. Section 24 becomes effective upon passage and approval.
3. Sections 7 and 8 of this act become effective on October 1, 1999.
4. Sections 4 and 16 expire by limitation on July 1, 2003.
5. Section 5 expires by limitation on September 1, 2003.
6. Section 17 becomes effective on July 1, 2003.".
Amend the bill as a whole by deleting sec. 29.
Amend the title of the bill by deleting the first through third lines and inserting:
"AN ACT relating to utilities; providing for the appointment of hearing officers to conduct proceedings before the public utilities commission of Nevada; revising the provisions governing recoverable costs;".