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

1-3 1. A public utility that provides water may construct lines larger than

1-4 those needed to serve existing customers in anticipation of the addition of

1-5 customers as the result of future development. A public utility that

1-6 constructs larger lines for this purpose may record upon its books and

1-7 records the additional cost so incurred and is entitled to recover this cost

1-8 as an increase in rate base upon the completion of the construction of the

1-9 larger lines and recover the cost in the future, as property is developed,

1-10 from the developer of property upon which the additional customers will

1-11 be located. Any amount of the cost that is later recovered from a

1-12 developer must be credited to rate base upon recovery.

1-13 2. The commission shall provide by regulation for the manner and

1-14 time of the increase in rate base and the recording and recovery

1-15 authorized by this section.

2-1 3. As used in this section:

2-2 (a) "Development" includes both the subdivision of land and the

2-3 construction of improvements upon unimproved land.

2-4 (b) "Public utility" includes a local government that provides water.