A.B. 369

 

Assembly Bill No. 369–Select Committee on Energy

 

March 14, 2001

____________

 

Referred to Select Committee on Energy

 

SUMMARY—Revises and repeals various provisions governing the regulation of public utilities. (BDR 58‑1156)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

~

 

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).

 

AN ACT relating to utilities; revising and repealing various provisions governing the regulation of public utilities; preventing certain electric utilities from disposing of certain generation assets for a certain period; placing restrictions on the disposal of such assets after that period; repealing provisions pertaining to the competitive provision of retail electric service; requiring the public utilities commission of Nevada to take certain actions to carry out the provisions of this act; and providing other matters properly relating thereto.

 

   Whereas, In 1997, the legislature enacted comprehensive legislation designed to prepare the electric industry in this state for retail competition; and

   Whereas, In 1999, the legislature enacted additional legislation delaying the onset of such competition until March 1, 2000, unless the governor determined that a later date was necessary to protect the public interest; and

   Whereas, On several occasions, the governor has determined that commencement of retail competition in the electric industry is not yet in the public interest of this state and that this state is not yet adequately prepared to begin such competition; and

   Whereas, This state has not commenced retail competition in the electric industry, and the electric utilities in this state have not been required to operate in a competitive market; and

   Whereas, It is almost certain that this state will not, in the foreseeable future, be adequately prepared to implement retail competition in the electric industry; and

   Whereas, The electric utilities in this state have for decades operated in a strictly regulated market in which such utilities have dedicated their property to serve the public convenience and necessity and have been extended the privilege to be the exclusive providers of electricity within


their respective service territories and have earned a reasonable rate of return on their investment in the electric industry; and

   Whereas, The strict regulation of electric utilities in this state is vital to the economy of this state and is essential to protect the health, safety and welfare of the residents of this state; and

   Whereas, This state has a compelling interest in continuing its historically strict regulation of the electric utilities in this state; and

   Whereas, This state has a compelling interest in protecting the consumers in this state, in safeguarding the economy of this state and in requiring the electric utilities in this state to provide adequate and reliable electric service at just and reasonable prices; and

   Whereas, In recent years, the western United States has experienced a severe and ongoing crisis in the electric industry marked by critical shortages in the supply of electricity and extreme volatility in the price of electricity in the wholesale and retail markets; and

   Whereas, The severe and ongoing crisis in the electric industry in the western United States appears to be a chronic problem that may not be resolved for years or decades; and

   Whereas, The severe and ongoing crisis in the electric industry in the western United States is both an immediate threat and a continuing danger to the economy of this state and to the health, safety and welfare of the residents of this state; and

   Whereas, The severe and ongoing crisis in the electric industry in the western United States requires that this state preserve and continue its historically strict regulation of the electric utilities in this state to promote stability and predictability in the electric industry, to foster confidence in the financial markets, to ensure that consumers have adequate and reliable electric service and to protect the public from unjust and unreasonable utility rates; now, therefore,

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1    Section 1. NRS 703.010 is hereby amended to read as follows:

1-2    703.010  As used in this chapter, unless the context otherwise requires:

1-3    1.  “Alternative seller” [has the meaning ascribed to it in NRS

1-4  704.967.] means a person who sells any competitive, discretionary or

1-5  potentially competitive component of natural gas service pursuant to

1-6  NRS 704.993 to 704.999, inclusive.

1-7    2.  “Commission” means the public utilities commission of Nevada.

1-8    Sec. 2.  NRS 703.025 is hereby amended to read as follows:

1-9    703.025  1.  The commission, by majority vote, shall organize the

1-10  commission into sections, alter the organization of the commission and

1-11  reassign responsibilities and duties of the sections of the commission as the

1-12  commission deems necessary to provide:

1-13    (a) Advice and guidance to the commission on economic policies

1-14  relating to utilities under the jurisdiction of the commission, and the

1-15  regulation of such utilities;


2-1    (b) Administrative, technical, legal and support services to the

2-2  commission; and

2-3    (c) For the regulation of utilities governed by the commission and the

2-4  services offered by such utilities, including, but not limited to, licensing of

2-5  such utilities and services and the resolution of consumer complaints.

2-6    2.  The commission shall:

2-7    (a) Formulate the policies of the various sections of the commission;

2-8    (b) Coordinate the activities of the various sections of the commission;

2-9    (c) [Take such] If customers are authorized by a specific statute to

2-10  obtain a competitive, discretionary or potentially competitive utility

2-11  service, take any actions which are consistent with [law as] the statute and

2-12  which are necessary to encourage and enhance:

2-13      (1) A competitive market for the provision of that utility [services]

2-14  service to customers in this state; and

2-15      (2) The reliability and safety of the provision of [those services] that

2-16  utility service within that competitive market; and

2-17    (d) Adopt such regulations consistent with law as the commission

2-18  deems necessary for the operation of the commission and the enforcement

2-19  of all laws administered by the commission.

2-20    3.  Before reorganizing the commission, the commission shall submit

2-21  the plan for reorganization to:

2-22    (a) The director of the legislative counsel bureau for transmittal to the

2-23  appropriate legislative committee and the interim finance committee; and

2-24    (b) The director of the department of administration.

2-25    Sec. 3.  NRS 703.110 is hereby amended to read as follows:

2-26    703.110  1.  [The] Except as otherwise provided in sections 8 to 19,

2-27  inclusive, of this act or any other specific statute, the majority of the

2-28  commissioners have full power to act in all matters within [their

2-29  jurisdiction.] the jurisdiction of the commission.

2-30    2.  If two commissioners are disqualified or if there are two vacancies

2-31  within the commission, the remaining commissioner shall exercise all the

2-32  powers of the commission.

2-33    3.  Except as otherwise provided in this chapter, all hearings and

2-34  meetings conducted by the commission must be open to the public.

2-35    Sec. 4.  NRS 703.130 is hereby amended to read as follows:

2-36    703.130  1.  The commission shall appoint a deputy commissioner

2-37  who shall serve in the unclassified service of the state.

2-38    2.  The commission shall appoint a secretary who shall perform such

2-39  administrative and other duties as are prescribed by the commission. The

2-40  commission shall also appoint an assistant secretary.

2-41    3.  The commission may employ such other clerks, experts or engineers

2-42  as may be necessary.

2-43    4.  [The commission may] Except as otherwise provided in
subsection 5, the commission:

2-44    (a) May appoint one or more hearing officers for a period specified by

2-45  the commission to conduct proceedings or hearings that may be conducted

2-46  by the commission pursuant to chapters 704, 704A, 705, 708 and 711 of

2-47  NRS. [The commission shall]


3-1    (b) Shall prescribe by regulation the procedure for appealing a decision

3-2  of a hearing officer to the commission.

3-3    5.  The commission may not appoint a hearing officer to conduct

3-4  proceedings or hearings pursuant to sections 8 to 19, inclusive, of this

3-5  act.

3-6    Sec. 5.  NRS 703.151 is hereby amended to read as follows:

3-7    703.151  In adopting regulations pursuant to this Title relating to the

3-8  provision of electric service, the commission shall ensure that the

3-9  regulations:

3-10    1.  [Maximize the benefits of a competitive marketplace for the

3-11  provision of electric services;

3-12    2.  Maintain, to the extent possible, even and fair competition among

3-13  providers of electric service;

3-14    3.  Ensure the flexibility necessary for existing utilities that provide

3-15  energy to enter into a deregulated market;

3-16    4.  Foster innovation in the provision of electric services;

3-17    5.  Ensure and enhance reliability and safety in the provision of electric

3-18  services;

3-19    6.  Provide for flexible mechanisms for regulating electric services; and

3-20    7.] Protect, further and serve the public interest;

3-21    2.  Provide effective protection [of persons] for customers who depend

3-22  upon electric [services.] service;

3-23    3.  Provide for stability in rates and for the availability and reliability

3-24  of electric service;

3-25    4.  Encourage the development and use of renewable energy

3-26  resources; and

3-27    5.  Require providers of electric service to engage in prudent business

3-28  management, effective long-term planning, responsible decision making,

3-29  sound fiscal strategies and efficient operations.

3-30    Sec. 6.  NRS 703.320 is hereby amended to read as follows:

3-31    703.320  1.  [When, in] In any matter pending before the commission,

3-32  if a hearing is required by [law,] a specific statute or is [normally]

3-33  otherwise required by the commission, the commission shall give notice of

3-34  the pendency of the matter to all persons entitled to notice of the hearing.

3-35  The commission shall by regulation specify:

3-36    (a) The manner of giving notice[;] in each type of proceeding; and

3-37    (b) [Where not specified by law, the] The persons entitled to notice in

3-38  each type of proceeding.

3-39    2.  [Unless,] The commission may not dispense with a hearing in any

3-40  matter pending before the commission pursuant to sections 8 to 19,

3-41  inclusive, of this act.

3-42    3.  In any other matter pending before the commission, the

3-43  commission may dispense with a hearing and act upon the matter

3-44  pending unless, within 10 days after the date of the notice of pendency, a

3-45  person entitled to notice of the hearing files with the commission a request

3-46  that the hearing be held . [, the commission may dispense with a hearing

3-47  and act upon the matter pending.

3-48    3.] If such a request for a hearing is filed, the commission shall give at

3-49  least 10 days’ notice of the hearing.


4-1    Sec. 7.  Chapter 704 of NRS is hereby amended by adding thereto the

4-2  provisions set forth as sections 8 to 19, inclusive, of this act.

4-3    Sec. 8.  As used in sections 8 to 19, inclusive, of this act, unless the

4-4  context otherwise requires, the words and terms defined in sections 9 to

4-5  17, inclusive, of this act have the meanings ascribed to them in those

4-6  sections.

4-7    Sec. 9.  “Affiliate” means a person who, directly or indirectly

4-8  through one or more intermediaries, controls, is controlled by or is under

4-9  common control with an electric utility.

4-10    Sec. 10.  1.  “Approved by every member of the commission” means

4-11  that, with regard to a particular matter before the commission, every

4-12  commissioner appointed to the commission:

4-13    (a) Must be present at a hearing on the matter that is open to the

4-14  public; and

4-15    (b) Must vote to approve the matter on the record at the hearing.

4-16    2.  For the purposes of this section, “commissioner” does not include:

4-17    (a) Any vacancy within the commission; and

4-18    (b) Any commissioner who is prohibited or disqualified from voting or

4-19  taking action on the matter pursuant to NRS 281.411 to 281.581,

4-20  inclusive, or any other specific statute.

4-21    Sec. 11.  “Consumer’s advocate” means the consumer’s advocate of

4-22  the bureau of consumer protection in the office of the attorney general.

4-23    Sec. 12.  “Dispose of a generation asset” means to:

4-24    1.  Sell, lease, assign, transfer or divest an interest in a generation

4-25  asset, in whole or in part, to another person;

4-26    2.  Execute a contract or agreement to sell, lease, assign, transfer or

4-27  divest an interest in a generation asset, in whole or in part, to another

4-28  person; or

4-29    3.  Perform any promise, covenant or obligation to sell, lease, assign,

4-30  transfer or divest an interest in a generation asset, in whole or in part, to

4-31  another person pursuant to the terms of a contract or agreement unless:

4-32    (a) The electric utility executed the contract or agreement before

4-33  January 1, 2001;

4-34    (b) The commission approved the contract or agreement before

4-35  January 1, 2001, if such approval was required; and

4-36    (c) The electric utility fully performed the promise, covenant or

4-37  obligation to sell, lease, assign, transfer or divest the interest before the

4-38  effective date of this act.

4-39    Sec. 13.  1.  “Electric utility” means:

4-40    (a) Any public utility or successor in interest that:

4-41      (1) Is in the business of providing electric service to customers;

4-42      (2) Holds a certificate of public convenience and necessity issued or

4-43  transferred pursuant to this chapter; and

4-44      (3) In the most recently completed calendar year or in any other

4-45  calendar year within the 7 calendar years immediately preceding the

4-46  most recently completed calendar year, had a gross operating revenue of

4-47  $250,000,000 or more in the State of Nevada;

4-48    (b) A subsidiary or affiliate of such a public utility;


5-1    (c) A holding company or other person that holds a controlling

5-2  interest in such a public utility; and

5-3    (d) A successor in interest to any public utility, subsidiary, affiliate,

5-4  holding company or person described in paragraph (a), (b) or (c).

5-5    2.  The term does not include a cooperative association, nonprofit

5-6  corporation, nonprofit association or provider of electric service which is

5-7  declared to be a public utility pursuant to NRS 704.673 and which

5-8  provides service only to its members.

5-9    Sec. 14.  1.  “Generation asset” means any plant, facility,

5-10  equipment or system that:

5-11    (a) Converts other forms of energy into electricity or otherwise

5-12  produces electricity;

5-13    (b) Is located within this state;

5-14    (c) Is or was owned, possessed, controlled, leased, operated,

5-15  administered, maintained, acquired or placed into service by an electric

5-16  utility before, on or after January 1, 2001;

5-17    (d) Is subject, in whole or in part, to regulation by the commission;

5-18  and

5-19    (e) Is used and useful for the convenience of the public, as determined

5-20  by the commission.

5-21    2.  The term does not include:

5-22    (a) Any hydroelectric plant, facility, equipment or system that has a

5-23  generating capacity of not more than 5 megawatts; and

5-24    (b) Any net metering system, as defined in NRS 704.771.

5-25    Sec. 15.  1.  “Interest in a generation asset” means any interest, in

5-26  whole or in part, in the physical plant, facility, equipment or system that

5-27  makes up the generation asset, whether such interest is legal or

5-28  equitable, present or future, or contingent or vested.

5-29    2.  The term does not include any interest in the electricity or other

5-30  energy produced by the generation asset.

5-31    Sec. 16.  “Person” means:

5-32    1.  A natural person;

5-33    2.  Any form of business or social organization and any other

5-34  nongovernmental legal entity, including, without limitation, a

5-35  corporation, partnership, association, trust or unincorporated

5-36  organization;

5-37    3.  A government or an agency or instrumentality of a government,

5-38  other than this state or an agency or instrumentality of this state; and

5-39    4.  A political subdivision of this state or of any other government or

5-40  an agency or instrumentality of a political subdivision of this state or of

5-41  any other government.

5-42    Sec. 17.  “Substantial financial emergency” means, with regard to

5-43  an electric utility, any set of circumstances that:

5-44    1.  Exists or has a substantial probability of coming into existence

5-45  within the immediate future; and

5-46    2.  Has caused or has a substantial probability of causing the electric

5-47  utility to become:

 

 


6-1    (a) Insolvent or subject to any proceeding in bankruptcy; or

6-2    (b) Unable to secure credit, fuel or power to such a degree that the

6-3  electric utility is substantially impaired in its ability to provide reliable

6-4  electric service to its customers.

6-5    Sec. 18.  1.  Except as otherwise provided in section 19 of this act,

6-6  an electric utility shall not dispose of a generation asset unless, before

6-7  the disposal, the commission approves the disposal by a written order

6-8  issued in accordance with the provisions of this section.

6-9    2.  Before July 1, 2003, an electric utility may not file an application

6-10  to dispose of a generation asset, and the commission may not authorize

6-11  an electric utility to dispose of a generation asset.

6-12    3.  On or after July 1, 2003, and before July 1, 2007, an electric

6-13  utility may file an application to dispose of a generation asset only if the

6-14  application is based upon a substantial financial emergency. If an

6-15  electric utility files such an application, the commission may not approve

6-16  the application unless:

6-17    (a) The electric utility proves a substantial financial emergency by

6-18  clear and convincing evidence; and

6-19    (b) The application is approved by every member of the commission.

6-20  Such approval may be based upon such terms, conditions or

6-21  modifications as the commission deems appropriate, if such terms,

6-22  conditions or modifications are approved by every member of the

6-23  commission.

6-24    4.  On or after July 1, 2007, an electric utility may file an application

6-25  to dispose of a generation asset. If an electric utility files such an

6-26  application, the commission may approve the application upon such

6-27  terms, conditions or modifications as the commission deems appropriate,

6-28  if the commission finds that disposal of the generation asset will be in the

6-29  public interest.

6-30    5.  If an electric utility files an application to dispose of a generation

6-31  asset, the consumer’s advocate shall be deemed a party of record and

6-32  does not have to file a petition to intervene in the matter.

6-33    6.  If an electric utility disposes of a generation asset in violation of

6-34  this section, the disposal is void and unenforceable and is not valid for

6-35  any purpose.

6-36    Sec. 19.  1.  An electric utility may dispose of its generation assets

6-37  pursuant to a merger, acquisition or transaction that is authorized

6-38  pursuant to NRS 704.329 or pursuant to a transfer of its certificate of

6-39  public convenience and necessity that is authorized pursuant to NRS

6-40  704.410, if:

6-41    (a) The other person in the merger, acquisition, transaction or

6-42  transfer is not a subsidiary or affiliate of the electric utility or a holding

6-43  company or other person that holds a controlling interest in the electric

6-44  utility; and

6-45    (b) The electric utility disposes of substantially all of its generation

6-46  assets and substantially all of its other assets to the other person in the

6-47  merger, acquisition, transaction or transfer.

6-48    2.  Any person who assumes or has assumed ownership, possession,

6-49  control, operation, administration or maintenance of a generation asset


7-1  pursuant to a merger, acquisition, transaction or transfer described in

7-2  subsection 1 is subject to the provisions of sections 8 to 19, inclusive, of

7-3  this act.

7-4    Sec. 20.  NRS 704.030 is hereby amended to read as follows:

7-5    704.030  “Public utility” or “utility” does not include:

7-6    1.  Persons engaged in the production and sale of natural gas, other than

7-7  sales to the public, or engaged in the transmission of natural gas other than

7-8  as a common carrier transmission or distribution line or system.

7-9    2.  Persons engaged in the business of furnishing, for compensation,

7-10  water or services for the disposal of sewage, or both, to persons within this

7-11  state if:

7-12    (a) They serve 25 persons or less; and

7-13    (b) Their gross sales for water or services for the disposal of sewage, or

7-14  both, amounted to $5,000 or less during the immediately preceding 12

7-15  months.

7-16    3.  Persons not otherwise engaged in the business of furnishing,

7-17  producing or selling water or services for the disposal of sewage, or both,

7-18  but who sell or furnish water or services for the disposal of sewage, or

7-19  both, as an accommodation in an area where water or services for the

7-20  disposal of sewage, or both, are not available from a public utility,

7-21  cooperative corporations and associations or political subdivisions engaged

7-22  in the business of furnishing water or services for the disposal of sewage,

7-23  or both, for compensation, to persons within the political subdivision.

7-24    4.  Persons who are engaged in the production and sale of energy,

7-25  including electricity, to public utilities, cities, counties or other entities

7-26  which are reselling the energy to the public.

7-27    5.  Persons who are subject to the provisions of NRS 590.465 to

7-28  590.645, inclusive.

7-29    6.  Persons who are engaged in the sale or use of special fuel as defined

7-30  in NRS 366.060.

7-31    7.  [Persons who are licensed as alternative sellers to provide electric

7-32  services.

7-33    8.] Persons who provide water from water storage, transmission and

7-34  treatment facilities if those facilities are for the storage, transmission or

7-35  treatment of water from mining operations.

7-36    Sec. 21.  NRS 704.329 is hereby amended to read as follows:

7-37    704.329  1.  Except as otherwise provided in subsection 4, no person

7-38  may merge with, acquire through a subsidiary or affiliate, or otherwise

7-39  directly or indirectly obtain control of a public utility doing business in this

7-40  state or an entity that holds a controlling interest in such a public utility

7-41  without first submitting to the commission an application for authorization

7-42  of the proposed transaction and obtaining authorization from the

7-43  commission pursuant to subsection 2. Any merger, acquisition or change in

7-44  control in violation of this section is not valid for any purpose.

7-45    2.  Before authorizing the merger, acquisition or change in control of a

7-46  public utility doing business in this state, the commission shall consider the

7-47  effect of the proposed transaction. If the commission finds that the

7-48  proposed merger, acquisition or change in control is in the public interest


8-1  [,] and complies with the provisions of section 19 of this act, the

8-2  commission shall authorize the proposed transaction.

8-3    3.  If the commission does not issue a final determination regarding the

8-4  proposed transaction within 180 days after the date on which an application

8-5  or amended application for authorization of the proposed transaction was

8-6  filed with the commission, and the transaction:

8-7    (a) Is not subject to the provisions of section 19 of this act, the

8-8  transaction shall be deemed approved.

8-9    (b) Is subject to the provisions of section 19 of this act, the transaction

8-10  shall be deemed disapproved.

8-11    4.  The provisions of this section do not apply to the transfer of stock of

8-12  a public utility doing business in this state or to the transfer of the stock of

8-13  an entity holding a controlling interest in such a public utility, if a transfer

8-14  of not more than 25 percent of the common stock of such a public utility or

8-15  entity is proposed.

8-16    Sec. 22.  NRS 704.370 is hereby amended to read as follows:

8-17    704.370  1.  The commission shall have the power, after hearing, to

8-18  issue or refuse such certificate of public convenience, or to issue it for the

8-19  construction of a portion only of the contemplated line, plant or systems, or

8-20  extension thereof, and may attach thereto such terms and conditions as, in

8-21  its judgment, the public convenience and necessity may require.

8-22    2.  [The] Except as otherwise provided in subsection 3, the

8-23  commission, in its discretion[,] and after investigation, may dispense with

8-24  the hearing on the application if, upon the expiration of the time fixed in

8-25  the notice thereof, no protest against the granting of the [certificate]

8-26  application has been filed by or on behalf of any interested person.

8-27    3.  The commission may not dispense with the hearing on the

8-28  application of an electric utility, as defined in section 13 of this act.

8-29    Sec. 23.  NRS 704.390 is hereby amended to read as follows:

8-30    704.390  1.  It [shall be] is unlawful for any public utility to

8-31  discontinue, modify or restrict service to any city, town, municipality,

8-32  community or territory theretofore serviced by it, except upon 30 days’

8-33  notice filed with the commission, specifying in detail the character and

8-34  nature of the discontinuance or restriction of the service intended, and upon

8-35  order of the commission, made after hearing, permitting such

8-36  discontinuance, modification or restriction of service.

8-37    2.  [The] Except as otherwise provided in subsection 3, the

8-38  commission , in its discretion and after investigation, may dispense with

8-39  the hearing on the application for discontinuance, modification or

8-40  restriction of service[,] if, upon the expiration of the time fixed in the

8-41  notice thereof, no protest against the granting of the application has been

8-42  filed by or on behalf of any interested person.

8-43    3.  The commission may not dispense with the hearing on the

8-44  application of an electric utility, as defined in section 13 of this act.

8-45    Sec. 24.  NRS 704.410 is hereby amended to read as follows:

8-46    704.410  1.  Any public utility subject to the provisions of NRS

8-47  [704.005] 704.001 to 704.751, inclusive, and sections 8 to 19, inclusive, of

8-48  this act to which a certificate of public convenience and necessity has been

8-49  issued pursuant to NRS [704.005] 704.001 to 704.751, inclusive, and


9-1  sections 8 to 19, inclusive, of this act may transfer the certificate to any

9-2  person qualified under NRS [704.005] 704.001 to 704.751, inclusive, [but

9-3  the] and sections 8 to 19, inclusive, of this act. Such a transfer is not valid

9-4  for any purpose until a joint application to make the transfer has been made

9-5  to the commission by the transferor and the transferee, and the commission

9-6  has authorized the substitution of the transferee for the transferor. If the

9-7  transferor is an electric utility, the commission may not authorize the

9-8  transfer unless the transfer complies with the provisions of section 19 of

9-9  this act.

9-10    2.  The commission [may] :

9-11    (a) Shall conduct a hearing on a transfer involving an electric utility.

9-12    (b) May direct that a hearing be [had in the matter of the transfer.]

9-13  conducted on a transfer involving any other public utility. If the

9-14  commission determines that such a hearing should be held, the hearing

9-15  must be noticed and conducted in the same manner as other contested

9-16  hearings before the commission.

9-17    [3.  The commission has the sole discretion to direct that a hearing be

9-18  held if the application seeks to transfer the certificate from a person or

9-19  partners to a corporation when the officers of the corporation will be

9-20  substantially the same person or partners.

9-21    4.] The commission may dispense with such a hearing if, upon the

9-22  expiration of the time fixed in the notice thereof, no protest to the proposed

9-23  transfer has been filed by or on behalf of any interested person.

9-24    [5.] 3. In determining whether the transfer of a certificate of public

9-25  convenience and necessity to an applicant transferee should be authorized,

9-26  the commission must take into consideration:

9-27    (a) The utility service performed by the transferor and the proposed

9-28  utility service of the transferee;

9-29    (b) Other authorized utility services in the territory for which the

9-30  transfer is sought; and

9-31    (c) Whether the transferee is fit, willing and able to perform the services

9-32  of a public utility and whether the proposed operation will be consistent

9-33  with the legislative policies set forth in NRS [704.005] 704.001 to 704.751,

9-34  inclusive[.

9-35    6.] , and sections 8 to 19, inclusive, of this act.

9-36    4. The commission may make such amendments, restrictions or

9-37  modifications in a certificate upon transferring it as the public interest

9-38  requires.

9-39    [7.] 5. No transfer is valid beyond the life of the certificate transferred.

9-40    6.  As used in this section, “electric utility” has the meaning ascribed

9-41  to it in section 13 of this act.

9-42    Sec. 25.  NRS 704.961 is hereby amended to read as follows:

9-43    704.961  The commission [shall expend up to $500,000] may expend

9-44  money from its reserve account to provide education and informational

9-45  services necessary to educate and inform the residents in this state on

9-46  issues related to the provision of [competitive] utility services in this state.

9-47  The commission [shall] may contract with an independent person to

9-48  provide such educational and informational services.

 


10-1    Sec. 26.  NRS 704.989 is hereby amended to read as follows:

10-2    704.989  1.  The commission shall establish portfolio standards for

10-3  domestic energy that [sets] set forth the minimum percentage of the total

10-4  electricity sold by electric utilities to retail customers during each calendar

10-5  year that must be derived from renewable energy resources. The portfolio

10-6  standards must:

10-7    (a) [Be] On January 1, 2001, be set at two-tenths of [one] 1 percent of

10-8  the total amount of electricity [annually consumed by customers]

10-9  consumed in this state [as of January 1, 2001.     (b) Be increased

10-10  biannually thereafter] by retail customers of electric utilities during the

10-11  immediately preceding calendar year.

10-12  (b) On January 1 of each successive odd-numbered year, be increased

10-13  by two-tenths of [one] 1 percent of the total [annual electric consumption

10-14  by the] amount of electricity consumed in this state by retail customers of

10-15  electric utilities during the immediately preceding calendar year until the

10-16  [standard reaches] portfolio standards reach a total of 1 percent of the total

10-17  amount of electricity consumed[.] in this state by retail customers of

10-18  electric utilities during the immediately preceding calendar year.

10-19  (c) Be derived from not less than 50 percent renewable energy

10-20  resources.

10-21  (d) Be derived from not less than 50 percent solar renewable energy

10-22  systems.

10-23  (e) Be based on renewable energy credits, if applicable.

10-24  2.  Each [vertically integrated] electric utility [and alternative seller that

10-25  provides electric service in this state] shall comply with the portfolio

10-26  [standard] standards established by the commission pursuant to this

10-27  section. At the end of each calendar year, each [vertically integrated]

10-28  electric utility [and alternative seller] shall submit a report, in a format

10-29  approved by the commission, of the quantity of renewable energy and

10-30  credits, if applicable, that the electric utility [or alternative seller]

10-31  generated, purchased, sold and traded to meet the portfolio standards . [of

10-32  the portfolio.]

10-33  3.  In establishing the portfolio standards pursuant to this section, the

10-34  commission may establish a system of credits pursuant to which an electric

10-35  utility [and alternative seller] may comply with the provisions of this

10-36  section. A system of credits must provide that:

10-37  (a) Credits are issued for renewable energy resources for each kilowatt

10-38  hour of energy which it produces; and

10-39  (b) Holders of credits may trade or sell the credits to other parties.

10-40  4.  For the purposes of this section, [a vertically integrated] an electric

10-41  utility which, on January 1, 1997, has 9 percent of its electricity consumed

10-42  by its customers served by renewable energy resources shall be deemed to

10-43  be in compliance until January 1, 2005, with the portfolio standards

10-44  established by the commission pursuant to this section. Between January 1,

10-45  2005, and December 31, 2009, such [a vertically integrated] an electric

10-46  utility [and its affiliated alternative seller, if any,] shall reach a total of one-

10-47  half of 1 percent of the amount of electricity consumed by its customers, in

10-48  annual increments of one-tenth of 1 percent, in solar energy resources for


11-1  full compliance with the portfolio [standard] standards established by the

11-2  commission pursuant to this section.

11-3    5.  [The] In addition to the report required by subsection 2, each

11-4  electric utility [and alternative seller] shall submit a report [to] , in a

11-5  format approved by the commission , that provides information relating to

11-6  the compliance by the [vertically integrated] electric utility [or alternative

11-7  seller] with the requirements of this section. Such reports must be made at

11-8  least annually, unless the commission by regulation determines that such

11-9  reports must be made more frequently than annually, and must include

11-10  clear and concise information that sets forth:

11-11  (a) If the [vertically integrated] electric utility installed a renewable

11-12  energy system during the period for which the report is being made, the

11-13  date of installation;

11-14  (b) The capacity of renewable energy systems of the [vertically

11-15  integrated] electric utility ; [or alternative seller;]

11-16  (c) The amount of production of energy from the renewable energy

11-17  systems;

11-18  (d) The portion of the production of energy that is directly derived from

11-19  renewable energy resources;

11-20  (e) The quantity of energy from renewable energy systems that is

11-21  transmitted or distributed, or both, to customers in this state by the

11-22  [vertically integrated] electric utility ; [or alternative seller;] and

11-23  (f) Such other information that the commission by regulation may deem

11-24  relevant.

11-25  6.  [Nothing in this section applies] The provisions of this section do

11-26  not apply to:

11-27  (a) Rural electric cooperatives established pursuant to chapter 81 of

11-28  NRS;

11-29  (b) General improvement districts established pursuant to chapter 318

11-30  of NRS; or

11-31  (c) Utilities established pursuant to chapter 709 or 710 of NRS.

11-32  7.  As used in this section:

11-33  (a) “Electric utility” has the meaning ascribed to it in section 13 of

11-34  this act.

11-35  (b) “Renewable energy resources” means wind, solar, geothermal and

11-36  biomass energy resources in this state that are naturally regenerated.

11-37  [(b)] (c) “Renewable energy system” means an energy system in this

11-38  state that utilizes renewable energy resources to produce electricity or solar

11-39  thermal energy systems that reduce the consumption of electricity that was

11-40  installed and commenced operations after July 1, 1997.

11-41  Sec. 27.  NRS 704.990 is hereby amended to read as follows:

11-42  704.990  The commission shall prepare [a quarterly] an annual report

11-43  for the legislature that assesses the developments in the electric industry in

11-44  the State of Nevada. The reports must be submitted to the director of the

11-45  legislative counsel bureau for transmittal to the legislature and must

11-46  include, but are not limited to, a discussion of:

11-47  1.  Whether [there is effective competition for each potentially

11-48  competitive service;


12-1    2.  The compatibility of direct access for retail customers to alternative

12-2  sellers] providers of electric service are:

12-3    (a) Developing new facilities in this state for the generation,

12-4  transmission and distribution of electricity;

12-5    (b) Developing and using renewable energy resources and complying

12-6  with the portfolio standards established by NRS 704.989; and

12-7    (c) Engaging in prudent business management, effective long-term

12-8  planning, responsible decision making, sound fiscal strategies and

12-9  efficient operations;

12-10  2.  How current and projected market conditions in the electric

12-11  industry may affect rates, the availability of power, the reliability of

12-12  electric service and the regulation of providers of electric service;

12-13  3.  Whether the electric industry is operating consistently with

12-14  environmental goals ; [;

12-15  3.  The effects of direct access for retail customers to alternative sellers

12-16  on each class of customers, compared to the noncompetitive regulatory

12-17  structure ;]

12-18  4.  The opportunities to cooperate, formally or informally, with other

12-19  states or the Federal Government in the implementation of effective

12-20  [competition;] regulation of the electric industry on a statewide, regional

12-21  and national level; and

12-22  5.  Additional legislation necessary to [achieve the goals of NRS

12-23  704.965 to 704.990, inclusive.] carry out the purposes of this chapter.

12-24  Sec. 28.  NRS 228.360 is hereby amended to read as follows:

12-25  228.360  The consumer’s advocate [may,] :

12-26  1.  Shall intervene in and represent the public interest in all

12-27  proceedings conducted pursuant to sections 8 to 19, inclusive, of this act.

12-28  2.  May, with respect to all public utilities except railroads and

12-29  cooperative utilities, and except as provided in NRS 228.380:

12-30  [1.] (a) Conduct or contract for studies, surveys, research or expert

12-31  testimony relating to matters affecting the public interest or the interests of

12-32  utility customers.

12-33  [2.] (b) Examine any books, accounts, minutes, records or other papers

12-34  or property of any public utility subject to the regulatory authority of the

12-35  public utilities commission of Nevada in the same manner and to the same

12-36  extent as authorized by law for members of the public utilities commission

12-37  of Nevada and its staff.

12-38  [3.  Petition]

12-39  (c) Except as otherwise provided in subsection 1, petition for, request,

12-40  initiate, appear or intervene in any proceeding concerning rates, charges,

12-41  tariffs, modifications of service or any related matter before the public

12-42  utilities commission of Nevada or any court, regulatory body, board,

12-43  commission or agency having jurisdiction over any matter which the

12-44  consumer’s advocate may bring before or has brought before the public

12-45  utilities commission of Nevada or in which the public interest or the

12-46  interests of any particular class of utility customers are involved. The

12-47  consumer’s advocate may represent the public interest or the interests of

12-48  any particular class of utility customers in any such proceeding, and he is a

12-49  real party in interest in the proceeding.


13-1    Sec. 29.  NRS 228.390 is hereby amended to read as follows:

13-2    228.390  Except as otherwise provided in sections 8 to 19, inclusive,

13-3  of this act:

13-4    1.  The consumer’s advocate has sole discretion to represent or refrain

13-5  from representing the public interest and any class of customers in any

13-6  proceeding.

13-7    2.  In exercising his discretion, the consumer’s advocate shall consider

13-8  the importance and extent of the public interest or the customers’ interests

13-9  involved and whether those interests would be adequately represented

13-10  without his participation.

13-11  3.  If the consumer’s advocate determines that there would be a conflict

13-12  between the public interest and any particular class of customers or any

13-13  inconsistent interests among the classes of customers involved in a

13-14  particular matter, he may choose to represent one of the interests, to

13-15  represent no interest, or to represent one interest through his office and

13-16  another or others through outside counsel engaged on a case basis.

13-17  Sec. 30.  NRS 538.181 is hereby amended to read as follows:

13-18  538.181  1.  The commission shall hold and administer all rights and

13-19  benefits pertaining to the distribution of the power and water mentioned in

13-20  NRS 538.041 to 538.251, inclusive, for the State of Nevada[,] and, except

13-21  as otherwise provided in NRS 538.186, may enter into contracts relating to

13-22  that power and water, including the transmission and other distribution

13-23  services, on such terms as the commission determines.

13-24  2.  Every applicant, except a federal or state agency or political

13-25  subdivision, for power or water to be used within the State of Nevada must,

13-26  before the application is approved, provide an indemnifying bond by a

13-27  corporation qualified pursuant to the laws of this state, or other collateral,

13-28  approved by the state board of examiners, payable to the State of Nevada in

13-29  such sum and in such manner as the commission may require, conditioned

13-30  for the full and faithful performance of the lease, sublease, contract or other

13-31  agreement.

13-32  3.  The power and water must not be sold for less than the actual cost to

13-33  the State of Nevada.

13-34  4.  Except as otherwise provided in subsection 5, before any such sale

13-35  or lease is made, a notice of it must be advertised in two papers of general

13-36  circulation published in the State of Nevada at least once a week for 2

13-37  weeks. The commission shall require any person desiring to make

13-38  objection thereto to file the objection with the commission within 10 days

13-39  after the date of the last publication of the notice. If any objection is filed,

13-40  the commission shall set a time and place for a hearing of the objection not

13-41  more than 30 days after the date of the last publication of the notice.

13-42  5.  The provisions of subsection 4 do not apply to:

13-43  (a) Any contract by the commission to sell supplemental power to a

13-44  holder of a long-term firm contract with the state for power if the

13-45  supplemental power is procured by the commission from a prearranged

13-46  source and is secured by the holder for his own use; or

13-47  (b) Any agreement by the commission to sell short-term or interruptible

13-48  power on short notice for immediate acceptance to a holder of a long-term


14-1  firm contract with the state for power who can take delivery of the short-

14-2  term or interruptible power when it is available.

14-3    6.  Except as otherwise provided in subsection 2 of NRS 538.251, any

14-4  such lease, sublease, contract or sale of the water or power is not binding

14-5  upon the State of Nevada until ratified and approved by the governor and,

14-6  where required by federal law, until approved by the United States.

14-7    7.  The commission shall, upon the expiration of a contract for the sale

14-8  of power which is in effect on July 1, 1993, offer to the purchaser the right

14-9  to renew the contract. If the commission is unable to supply the amount of

14-10  power set forth in the contract because of a shortage of power available for

14-11  sale, it shall reduce, on a pro rata basis, the amount of power it is required

14-12  to sell pursuant to the renewed contract.

14-13  8.  [Except as otherwise provided in NRS 704.987, notwithstanding]

14-14  Notwithstanding any provision of chapter 704 of NRS, any purchase of:

14-15  (a) Power or water for distribution or exchange, and any subsequent

14-16  distribution or exchange of power or water by the commission; or

14-17  (b) Water for distribution or exchange, and any subsequent distribution

14-18  or exchange of water by any entity to which or with which the commission

14-19  has contracted the water,

14-20  is not subject to regulation by the public utilities commission of Nevada.

14-21  Sec. 31.  1.  NRS 704.965, 704.966, 704.967, 704.968, 704.969,

14-22  704.970, 704.971, 704.972, 704.973, 704.974, 704.975, 704.976, 704.977,

14-23  704.978, 704.979, 704.980, 704.981, 704.982, 704.9823, 704.9826,

14-24  704.9829, 704.983, 704.984, 704.985, 704.986, 704.9865, 704.987 and

14-25  704.988 are hereby repealed.

14-26  2.  Sections 335 and 337 of chapter 482, Statutes of Nevada 1997, at

14-27  pages 2021 and 2022, respectively, and sections 17, 21, 22, 24 and 26 of

14-28  chapter 600, Statutes of Nevada 1999, at pages 3269 and 3272, are hereby

14-29  repealed.

14-30  Sec. 32.  1.  The public utilities commission of Nevada shall:

14-31  (a) Amend, modify, supplement, annul or vacate any order or directive

14-32  issued by the commission before the effective date of this act that

14-33  authorizes or requires an electric utility to dispose of any generation asset,

14-34  if such disposal would violate the provisions of this act;

14-35  (b) Take all appropriate action to request that the Federal Energy

14-36  Regulatory Commission and any other officer, agency or department of the

14-37  Federal Government:

14-38     (1) Not issue any order or directive that authorizes or requires an

14-39  electric utility to dispose of any generation asset, if such an order or

14-40  directive could be interpreted as being in conflict with or preempting the

14-41  provisions of this act; and

14-42     (2) Amend, modify, supplement, annul or vacate any order or

14-43  directive issued before, on or after the effective date of this act that

14-44  authorizes or requires an electric utility to dispose of any generation asset,

14-45  if such an order or directive could be interpreted as being in conflict with

14-46  or preempting the provisions of this act;

14-47  (c) If any action taken pursuant to paragraph (b) is unsuccessful, take all

14-48  appropriate legal action to challenge any order or directive issued by the


15-1  Federal Energy Regulatory Commission or any other officer, agency or

15-2  department of the Federal Government that authorizes or requires an

15-3  electric utility to dispose of any generation asset, if such an order or

15-4  directive could be interpreted as being in conflict with or preempting the

15-5  provisions of this act; and

15-6    (d) Take any other action or issue any other orders necessary to carry

15-7  out the provisions of this act.

15-8    2.  Notwithstanding any other provision of law, the public utilities

15-9  commission of Nevada is hereby empowered and authorized to take any

15-10  action or to issue any orders necessary to carry out the provisions of this

15-11  act.

15-12  Sec. 33.  Any license issued to an alternative seller pursuant to NRS

15-13  704.977 is void on and after the effective date of this act.

15-14  Sec. 34.  This act becomes effective upon passage and approval.

 

 

15-15  LEADLINES OF REPEALED SECTIONS

 

 

15-16  704.965  Definitions.

15-17  704.966  “Aggregation service” defined.

15-18  704.967  “Alternative seller” defined.

15-19  704.968  “Customer” defined.

15-20  704.969  “Effective competition” defined.

15-21  704.970  “Electric distribution utility” defined.

15-22  704.971  “Electric service” defined.

15-23  704.972  “Generation service” defined.

15-24  704.973  “Noncompetitive service” defined.

15-25  704.974  “Potentially competitive service” defined.

15-26  704.975  “Vertically integrated electric utility” defined.

15-27  704.976  Date upon which customers may begin obtaining

15-28   potentially competitive services from alternative sellers; exception;

15-29   commission authorized to establish different dates for provision of

15-30   different services; determination of potentially competitive service;

15-31   determination of prices under certain circumstances; regulations;

15-32   date upon which potentially competitive electric service deemed

15-33   competitive; reconsideration of determinations; date upon which

15-34   vertically integrated electric utility is required to provide potentially

15-35   competitive service through affiliate.

15-36  704.977  Licensing of alternative sellers: Requirements;

15-37   regulations; provision of aggregation service.

15-38  704.978  Provision of potentially competitive service by provider of

15-39   noncompetitive service prohibited; exception; certain facilities or

15-40   services of provider of noncompetitive service to be made available to

15-41   alternative sellers on equal and nondiscriminatory basis; use of name

15-42   or logo by affiliate.


16-1    704.979  Markets for electric services: Monitoring by commission;

16-2  investigations; regulations; transmission of evidence of anticompetitive

16-3   or discriminatory conduct to attorney general or appropriate federal

16-4   agency; alternative sellers and affiliates not exempt from other

16-5   applicable statutes; person aggrieved by conduct of alternative seller

16-6   not required to seek relief first from commission.

16-7    704.980  Provision of potentially competitive service by affiliate of

16-8   provider of noncompetitive service: Requirements; regulations;

16-9   provider of noncompetitive service and affiliate subject to applicable

16-10   statutes relating to consumer and antitrust protections.

16-11  704.981  Noncompetitive service: Requirements; regulations.

16-12  704.982  Designation of vertically integrated electric utility or its

16-13   successor electric distribution utility for certain customers; obligation

16-14   to serve; rate to be charged; alternate methods for providing electric

16-15   service; reacquisition of service from designated provider; limitation

16-16   on commission adjusting rates, earnings, rate base or rate of return of

16-17   designated provider.

16-18  704.9823  Commission to establish total rate for components of

16-19   electric service for each class of customers of electric service;

16-20   modification of rates; reduction of total rate; inapplicability of total

16-21   rates to customer of alternative seller.

16-22  704.9826  Authority of designated provider of electric service to

16-23   recover shortfall.

16-24  704.9829  Authority of licensed alternative seller to take over part

16-25   of service provided by designated vertically integrated electric utility;

16-26   offer; auction; bidding; review of bids.

16-27  704.983  Recoverable costs of vertically integrated electric utilities

16-28   and successor electric distribution utilities; procedure adopted by

16-29   commission for recovery from ratepayers; commission required to

16-30   consider minimization of certain federal taxes in determining

16-31   recoverable costs.

16-32  704.984  Adverse effects of competitive service on employees of

16-33   vertically integrated electric utilities; certain costs related to

16-34   employees to be considered in determining recoverable costs.

16-35  704.985  Change in alternative sellers: Procedure; standards;

16-36   educational program.

16-37  704.986  Vertically integrated electric utility to submit plan for

16-38   compliance to commission; commission authorized to exempt

16-39   vertically integrated electric utility or alternative seller from strict

16-40   application of certain provisions of chapter.

16-41  704.9865  Vertically integrated electric utility in existence on

16-42   January 1, 1999, to comply with existing obligations for purchase of

16-43   power; recovery of costs.

16-44  704.987  Colorado River commission: Sale of electricity; provision

16-45   of transmission or distribution service.

16-46  704.988  Availability of electric service: Forecasts of electric

16-47   capacity and energy; establishment of equitable obligations to ensure

16-48   sufficient capacity is available; submission of information to

16-49   commission.


 

 

17-1  TEXT OF REPEALED SECTIONS

 

 

17-2    Section 335 of chapter 482, Statutes of Nevada 1997:

17-3  Sec. 335.  The executive director of the department of taxation

17-4   shall, not later than January 1, 1999, submit to the director of the

17-5   legislative counsel bureau for distribution to the legislature a report

17-6   including, but not limited to:

17-7  1.  An analysis of the effect of the tax policies of this state on:

17-8  (a) The potential for effective competition in providing electric

17-9   services to customers; and

17-10           (b) The effect of competition in providing electric services to

17-11   customers on the revenue from taxes and franchise fees of this state

17-12   and local governments.

17-13           2.  Recommendations for legislation that would advance the

17-14   purposes of sections 28 to 53, inclusive, of this act and ensure a

17-15   minimal effect on the tax revenue of this state and local governments.

17-16  Section 337 of chapter 482, Statutes of Nevada 1997:

17-17           Sec. 337.  The public service commission of Nevada shall adopt

17-18   regulations to carry out the provisions of sections 28 to 53, inclusive,

17-19   of this act not later than July 1, 1999.

17-20  Section 17 of chapter 600, Statutes of Nevada 1999:

17-21           Sec. 17.  NRS 704.982 is hereby amended to read as follows:

17-22           704.982 1.  The commission shall designate [a vertically

17-23   integrated electric utility or its successor] an electric distribution

17-24   utility to provide electric service to customers who are unable to

17-25   obtain electric service from an alternative seller or who fail to select

17-26   an alternative seller. The provider so designated by the commission is

17-27   obligated to provide electric service to the customers. Electric service

17-28   provided by the utility pursuant to this section shall be deemed to be

17-29   a noncompetitive service for which the utility may recover its costs

17-30   pursuant to NRS 704.001 to 704.655, inclusive, 704.701 to 704.751,

17-31   inclusive, and 704.800 to 704.900, inclusive.

17-32           2.  [The rate that the designated provider of electric service must

17-33   charge a customer for the provision of electric service pursuant to

17-34   subsection 1 is the total rate established for that class of customer by

17-35   the commission pursuant to section 4 of this act.

17-36           3.] Upon a finding by the commission that the public interest will

17-37   be promoted, the commission may prescribe alternate methods for

17-38   providing electric service to those customers described in subsection

17-39   1. The alternate methods may include, but are not limited to, the

17-40   direct assignment of customers to alternative sellers or other electric

17-41   distribution utilities or a process of competitive bidding for the right

17-42   to provide electric service to the designated customers, including,

17-43   without limitation, an auction conducted pursuant to section 6 of this


18-1  act. [Any alternate methods prescribed by the commission pursuant to

18-2  this subsection may not go into effect before July 1, 2001.

18-3  4.] 3. A customer who has obtained generation, aggregation or

18-4   any other potentially competitive service for at least 30 continuous

18-5   days from an alternative seller [after March 1, 2000, or such other

18-6   date that is determined to be in the public interest by the governor

18-7   pursuant to NRS 704.976,] may reacquire service from the

18-8   designated provider of electric service pursuant to tariffs approved

18-9   by the commission. The commission shall establish minimum terms

18-10   and conditions under which electric service must be provided

18-11   pursuant to this section, including a minimum period during which a

18-12   customer must be obligated to pay for the electric service from the

18-13   assigned provider. The price charged for electric service for a

18-14   particular group of customers must reflect the incremental cost of

18-15   serving the group.

18-16           [5.] 4. If the designated provider of the electric service pursuant

18-17   to subsection 1is [a vertically integrated] an electric distribution

18-18   utility, the utility shall provide the electric service [on or after July 1,

18-19   2001,] only through an affiliate whose sole business activity is the

18-20   provision of electric service.

18-21           [6.  Except upon the application of the designated provider to

18-22   reduce the total rate for any class of customers pursuant to section 4

18-23   of this act, the commission shall not initiate or conduct any

18-24   proceedings to adjust the rates, earnings, rate base or rate of return of

18-25   the designated provider of electric service during the period in which

18-26   the provider is providing that service to customers pursuant to this

18-27   section.]

18-28  Section 21 of chapter 600, Statutes of Nevada 1999:

18-29           Sec. 21.  On or before March 1, 2000, or such other date that is

18-30   determined to be in the public interest by the governor pursuant to

18-31   NRS 704.976, the commission shall, for the purposes of NRS

18-32   704.986, establish for each class of customers of electric service in

18-33   this state the rate for each component and a total rate for electric

18-34   services for customers based on the cost to provide electric service to

18-35   each class of customers in this state. The total rate established for

18-36   each class of customers pursuant to this section must be the same as

18-37   the total rate for each class of customers that is in effect on June 1,

18-38   1999.

18-39  Section 22 of chapter 600, Statutes of Nevada 1999:

18-40           Sec. 22.  On or before March 1, 2000, or such other date that is

18-41   determined to be in the public interest by the governor pursuant to

18-42   NRS 704.976, an alternative seller and a vertically integrated electric

18-43   utility may negotiate and enter into a contract with a customer for the

18-44   provision of electric service, but no such contract is effective before

18-45   March 1, 2000, or such other date that is determined to be in the

18-46   public interest by the governor pursuant to NRS 704.976.

18-47  Section 24 of chapter 600, Statutes of Nevada 1999:

18-48           Sec. 24.  This act must not be construed to impair any existing

18-49   rights under any labor agreement to which a vertically integrated

18-50   electric utility or its successor electric distribution utility or an

18-51   affiliate thereof is a party on July 1, 1999.


19-1    Section 26 of chapter 600, Statutes of Nevada 1999:

19-2  Sec. 26.  If the pending merger between Sierra Pacific Resources

19-3   and Nevada Power Company, referred to in the records of the Public

19-4   Utilities Commission of Nevada as Docket No. 98-7023, is

19-5   terminated for any reason before the completion of the merger, this

19-6   act expires by limitation on the date on which the pending merger is

19-7   terminated.

 

19-8  H