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 704.983 is hereby amended to read as follows:

1-2 704.983 1. [The] Upon a request filed by a vertically integrated

1-18 obligations;

2-1 (c) The effectiveness of the efforts of the utility to increase the market

2-2 value and realize the market value of any assets, and to decrease the costs

2-3 of any obligations, associated with the provision of generation,

2-4 aggregation and other potentially competitive services;

2-5 (d) [The extent to which the rates previously established by the

2-6 commission have compensated shareholders for the risk of not recovering

2-7 the costs of the assets and obligations;

2-8 (e)] The effects of the difference between the market value and the cost,

2-9 including, without limitation, tax considerations, for the assets and

2-10 obligations; and

2-11 [(f)] (e) If the utility had the discretion to determine whether to incur or

2-12 mitigate the costs, the conduct of the utility with respect to the costs [of the

2-13 assets and obligations] when compared to other utilities with similar

2-14 obligations to serve the public.

2-15 2. For the purposes of [this section,] subsection 1, the commission

2-16 [may] shall impose a procedure for the direct and unavoidable recovery

2-17 from ratepayers [of the portion] of the past costs which are determined by

2-18 the commission to be owed by the ratepayers. The procedure must include a

2-19 determination of the period over which the recovery [may] must occur and

2-20 include the authority for the commission to assess charges on those

2-21 customers on whose behalf the vertically integrated electric utility incurred

2-22 costs who are no longer receiving transmission or distribution service, or

2-23 both, from the vertically integrated electric utility. Such determinations and

2-24 procedures must not discriminate against a participant in the market.

2-25 3. The cost of a contract between a vertically integrated electric

2-26 utility and a qualified facility for the purchase of power, and of any other

2-27 contract of the utility for the purchase of power, must be fully recovered

2-28 by the utility from all of the customers of the utility on an equitable basis.

2-29 As used in this subsection, "qualified facility" means a cogeneration

2-30 facility or small power production facility that meets the criteria of and is

2-31 certified as a qualified facility pursuant to Subpart B of Part 292 of Title

2-32 18 of the Code of Federal Regulations, as that subpart existed on

2-33 January 1, 1999.

2-34 4. To recover the costs incurred in the implementation of the

2-35 competitive provision of electric service, including generation,

2-36 aggregation and any other potentially competitive service, a vertically

2-37 integrated electric utility or an electric distribution utility must:

2-38 (a) Record those costs in its accounting records in deferred accounts;

2-39 and

3-1 (b) Annually file a request for the recovery of those costs with the

3-2 commission.

3-3 Upon a determination by the commission that the costs are properly

3-4 recoverable pursuant to this section, the commission shall provide for the

3-5 full recovery of those costs.