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 a

1-5 state shall divest its generation services.

1-6 Sec. 2. NRS 704.965 is hereby amended to read as follows:

1-7 704.965 As used in NRS 704.965 to 704.990, inclusive, and section 1

1-10 to them in those sections.

1-11 Sec. 3. NRS 704.976 is hereby amended to read as follows:

1-12 704.976 1. The date upon which customers may begin obtaining

1-16 necessary to protect the public interest. If the commission determines that a

2-1 different date is necessary, the commission shall provide a report to the

2-2 director of the legislative counsel bureau for transmittal to the legislature

2-3 [by February 1, 1999,] which:

2-4 (a) Explains the reason that the commission has not granted such an

2-5 authorization; and

2-6 (b) States whether the commission will grant such an authorization by

2-7 [December 31, 1999.] February 1, 2000.

2-8 2. The commission may:

2-9 (a) Establish different dates for the provision of different services by

2-10 alternative sellers in different geographic areas; and

2-11 (b) Authorize, in gradual phases, the right of customers to buy from

2-12 alternative sellers.

2-13 3. The commission shall determine that an electric service is a

2-14 potentially competitive service if provision of the service by alternative

2-15 sellers:

2-16 (a) Will not harm any class of customers;

2-17 (b) Will decrease the cost of providing the service to customers in this

2-18 state or increase the quality or innovation of the service to customers in this

2-19 state;

2-20 (c) Is a service for which effective competition in the market is likely to

2-21 develop;

2-22 (d) Will advance the competitive position of this state relative to

2-23 surrounding states; and

2-24 (e) Will not otherwise jeopardize the safety and reliability of the electric

2-25 service in this state.

2-26 4. If the commission determines that a market for a potentially

2-27 competitive service does not have effective competition, the commission

2-28 shall, by regulation, establish the method for determining prices for the

2-29 service and the terms and conditions for providing the service. The

2-30 regulations must ensure that the pricing method, terms and conditions are

2-31 just and reasonable and not unduly discriminatory. The regulations may

2-32 include pricing alternatives which authorize the seller to reduce prices

2-33 below maximum pricing levels specified by the commission or any other

2-34 form of alternative pricing which the commission determines to be

2-35 consistent with the provisions of this subsection. In determining whether a

2-36 market for an electric service has effective competition, the commission

2-37 shall:

2-38 (a) Identify the relevant market;

2-39 (b) Identify, where feasible, the alternative sellers that participate and

2-40 are reasonably expected to participate in the relevant market; and

2-41 (c) Calculate, where feasible, the market share of each participant in the

2-42 market and evaluate the significance of each share.

3-1 5. On or before October 1, 2000, the commission shall submit to the

3-2 director of the legislative counsel bureau for transmittal to the appropriate

3-3 legislative committee a report which:

3-4 (a) Evaluates the effectiveness of competition in the market for each

3-5 service which customers have the right to purchase from alternative sellers;

3-6 and

3-7 (b) Recommends actions which the legislature should take to increase

3-8 the effectiveness of competition in the markets for all potentially

3-9 competitive services.

3-10 6. On or before October 1, 2001, an electric service that has been

3-11 found on or before that date to be potentially competitive shall be deemed

3-12 to be competitive.

3-13 7. The commission may reconsider any determination made pursuant to

3-14 this section upon its own motion or upon a showing of good cause by a

3-15 party requesting a reconsideration. Upon a finding by the commission that

3-16 the market for a service previously found not to have effective competition

3-17 has become effectively competitive, the commission shall repeal the

3-18 regulations which established the pricing methods and the terms and

3-19 conditions for providing that service. The commission shall conduct any

3-20 proceedings for the reconsideration of any such determination as

3-21 expeditiously as practicable considering the current work load of the

3-22 commission and the need to protect the public interest.

3-23 8. A vertically integrated electric utility shall not provide a potentially

3-24 competitive service except through an affiliate:

3-25 (a) On or after [December 31, 1999;] February 1, 2000; or

3-26 (b) The date on which the commission determines that the service is

3-27 potentially competitive,

3-28 whichever is later.