Assembly Bill No. 373–Assemblyman Neighbors

 

March 15, 2001

____________

 

Referred to Select Committee on Energy

 

SUMMARY—Authorizes cities, counties and groups thereof to aggregate electrical load of interested residents. (BDR 58‑704)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: No.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to utilities; providing in skeleton form for cities, counties and groups thereof to aggregate the electrical load of interested residents; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1    Section 1. Chapter 704 is hereby amended by adding thereto the

1-2  provisions set forth as sections 2 to 7, inclusive, of this act.

1-3    Sec. 2.  “Opt-in program” means a program of municipal

1-4  aggregation pursuant to which the customers who will be served by the

1-5  program are enrolled in the program only at their request.

1-6    Sec. 3.  “Opt-out program” means a program of municipal

1-7  aggregation pursuant to which the customers who will be served by the

1-8  program are enrolled in the program automatically but may elect not to

1-9  participate in the program.

1-10    Sec. 4.  “Program of municipal aggregation” means a program of

1-11  aggregation established pursuant to section 5 of this act.

1-12    Sec. 5.  1.  Except as otherwise provided in this section and section

1-13  7 of this act, the board of county commissioners of a county and the

1-14  governing body of each city in the county may, acting jointly in

1-15  accordance with the provisions of this section, establish a program of

1-16  municipal aggregation to aggregate the electrical load of customers in

1-17  the unincorporated areas of the county and within the boundaries of

1-18  each city in the county.

1-19    2.  A program of municipal aggregation must not provide for the

1-20  aggregation of the electrical load of customers who are served by:

1-21    (a) A cooperative association or nonprofit corporation or association

1-22  which is declared to be a public utility pursuant to NRS 704.673; or

2-1    (b) An electric utility that is owned by a local government pursuant to

2-2  NRS 710.160 to 710.280, inclusive,

2-3  unless the governing body of the cooperative association, nonprofit

2-4  corporation, association or local government, as applicable, by the

2-5  affirmative vote of a majority of its members, elects to participate in the

2-6  program of municipal aggregation.

2-7    3.  Before commencing a program of municipal aggregation, the

2-8  board of county commissioners and the governing body of each city

2-9  must:

2-10    (a) Each adopt a resolution declaring the intent of those local

2-11  governments to aggregate the electrical load of customers in the

2-12  unincorporated areas of the county and within the boundaries of each

2-13  city in the county; and

2-14    (b) Form a municipal aggregation coalition by cooperative agreement

2-15  pursuant to chapter 277 of NRS.

2-16    4.  The cooperative agreement entered into pursuant to paragraph (b)

2-17  of subsection 3 must specify:

2-18    (a) The organizational structure and governance of the municipal

2-19  aggregation coalition; and

2-20    (b) The share of the administrative expenses associated with the

2-21  operations and activities of the municipal aggregation coalition to be

2-22  paid by each local government.

2-23    5.  The board of county commissioners of a county and the governing

2-24  body of each city in the county may, acting jointly, terminate a program

2-25  of municipal aggregation created pursuant to this section by:

2-26    (a) Each adopting a resolution declaring their intent to terminate the

2-27  program; and

2-28    (b) Disbanding the municipal aggregation coalition formed to carry

2-29  out that program of municipal aggregation.

2-30    Sec. 6.  1.  A municipal aggregation coalition formed pursuant to

2-31  section 5 of this act shall develop and adopt an aggregation plan to carry

2-32  out the program of municipal aggregation. The plan must specify:

2-33    (a) Whether the program will be operated as an opt-in program or an

2-34  opt-out program; and

2-35    (b) The procedures pursuant to which customers who are enrolled in

2-36  the program will obtain electric power and energy services in the event

2-37  that the program is terminated pursuant to subsection 5 of section 5 of

2-38  this act.

2-39    2.  If the program of municipal aggregation will be operated as an

2-40  opt-out program, the plan developed and adopted pursuant to subsection

2-41  1 must specify:

2-42    (a) The conditions and procedures, including, without limitation, any

2-43  applicable fees, pursuant to which a customer may:

2-44      (1) Elect not to participate in the program; and

2-45      (2) Reenroll in the program after electing not to participate; and

2-46    (b) The manner in which the municipal aggregation coalition will

2-47  inform customers and prospective customers of the conditions and

2-48  procedures described in paragraph (a).

3-1    3.  Before adopting the aggregation plan, the municipal aggregation

3-2  coalition shall conduct at least two hearings to solicit public comment on

3-3  the aggregation plan, giving at least 30 days’ notice of each hearing.

3-4    Sec. 7.  1.  In carrying out a program of municipal aggregation, a

3-5  municipal aggregation coalition may:

3-6    (a) Solicit bids, broker and contract for electric power and energy

3-7  services from alternative sellers;

3-8    (b) Enter into agreements for services to facilitate the sale and

3-9  purchase of electric energy and other related services; and

3-10    (c) Enter into a cooperative agreement with another municipal

3-11  aggregation coalition pursuant to chapter 277 of NRS to jointly carry out

3-12  a program of municipal aggregation. Such a joint program is subject to

3-13  the requirements for the establishment and carrying out of a program of

3-14  municipal aggregation set forth in this section and sections 5 and 6 of

3-15  this act.

3-16    2.  A municipal aggregation coalition shall not commence a program

3-17  of municipal aggregation unless:

3-18    (a) The municipal aggregation coalition is able to obtain electric

3-19  power and energy services at a price that is at least 5 percent lower than

3-20  the price at which such energy and services may be obtained from the

3-21  provider of electric service designated pursuant to subsection 1 of NRS

3-22  704.982; and

3-23    (b) If the aggregation plan developed and adopted pursuant to section

3-24  6 of this act specifies that the program will be operated as an opt-out

3-25  program:

3-26      (1) The board of county commissioners, pursuant to NRS 293.481,

3-27  submits to the registered voters of the county for consideration at the

3-28  next general election the question of whether the electrical load of

3-29  customers in the unincorporated areas of the county and within the

3-30  boundaries of each city in the county should be aggregated pursuant to

3-31  an opt-out program; and

3-32      (2) A majority of the registered voters voting on the question

3-33  approves the operation of the program of municipal aggregation as an

3-34  opt-out program.

3-35  If a majority of the registered voters voting on the question does not

3-36  approve the operation of the program of municipal aggregation as an

3-37  opt-out program, the municipal aggregation coalition may amend the

3-38  aggregation plan developed and adopted pursuant to section 6 of this act

3-39  to specify that the program of municipal aggregation will operate as an

3-40  opt-in program.

3-41    3.  As used in this section, “energy services” includes, without

3-42  limitation, generation, metering, billing and any other potentially

3-43  competitive services.

3-44    Sec. 8.  NRS 704.965 is hereby amended to read as follows:

3-45    704.965  As used in NRS 704.965 to 704.990, inclusive, and sections 2

3-46  to 7, inclusive, of this act, unless the context otherwise requires, the words

3-47  and terms defined in NRS 704.966 to 704.975, inclusive, and sections 2, 3

3-48  and 4 of this act have the meanings ascribed to them in those sections.

 

4-1    Sec. 9.  NRS 704.967 is hereby amended to read as follows:

4-2    704.967  “Alternative seller” means a seller of any component of

4-3  electric service other than a noncompetitive service, unless the alternative

4-4  seller has been designated to provide the noncompetitive service pursuant

4-5  to NRS 704.982. The term [includes] :

4-6    1.  Includes an affiliate of a vertically integrated electric utility . [, but

4-7  does]

4-8    2.  Does not include [a] :

4-9    (a) A vertically integrated electric utility[.] ; or

4-10    (b) A municipal aggregation coalition.

4-11    Sec. 10.  NRS 704.977 is hereby amended to read as follows:

4-12    704.977  1.  It is unlawful for an alternative seller to sell any electric

4-13  service to a customer for consumption within this state without having first

4-14  obtained a license from the commission to do so.

4-15    2.  The commission shall by regulation set forth the procedures and

4-16  conditions that alternative sellers must satisfy to obtain a license to sell any

4-17  electric services to a customer in this state, including, but not limited to,

4-18  procedures and conditions relating to:

4-19    (a) Safety and reliability of service;

4-20    (b) Financial and operational fitness; and

4-21    (c) Billing practices and customer service, including the initiation and

4-22  termination of service.

4-23    3.  If, after reviewing the application of an alternative seller for a

4-24  license, the commission finds that the applicant is qualified to be an

4-25  alternative seller, the commission shall issue a license to the applicant.

4-26    4.  The commission may deny the application of an applicant for a

4-27  license to operate as an alternative seller and may limit, suspend or revoke

4-28  a license issued to an alternative seller if the action is necessary to protect

4-29  the interests of the public or to enforce the provisions of NRS 704.965 to

4-30  704.990, inclusive, or a regulation of the commission.

4-31    5.  In determining whether an applicant is qualified for a license,

4-32  whether to deny an application for a license to operate as an alternative

4-33  seller or whether to limit, suspend or revoke a license issued to an

4-34  alternative seller, the commission may consider whether the applicant for

4-35  or holder of the license, or any affiliate thereof, has engaged in any

4-36  activities which are inconsistent with effective competition.

4-37    6.  A city, county or other local governmental entity or a public utility,

4-38  or any affiliate thereof, which is authorized to provide electric service

4-39  within the State of Nevada and which has an annual operating revenue of

4-40  less than $250,000,000, becomes subject to the provisions of NRS 704.965

4-41  to 704.990, inclusive, and any regulations adopted pursuant thereto, on the

4-42  date on which the city, county or other local governmental entity or a

4-43  public utility, or an affiliate thereof:

4-44    (a) Applies to obtain a license as an alternative seller; or

4-45    (b) Directly or indirectly attempts to provide, or act on behalf of an

4-46  alternative seller in the provision of, electric service in the territory served

4-47  by another city, county or other local governmental entity or public utility,

4-48  or an affiliate thereof, unless the city, county or other local governmental

5-1  entity or public utility, or an affiliate thereof, is otherwise required or

5-2  permitted by specific statute to provide such service.

5-3    7.  Notwithstanding the provisions of subsection 6, a city, county or

5-4  other local governmental entity or a public utility, or any affiliate thereof,

5-5  does not become subject to the provisions of NRS 704.965 to 704.990,

5-6  inclusive, or any regulations adopted pursuant thereto, solely because the

5-7  city, county or other local governmental entity or a public utility, or any

5-8  affiliate thereof, provides transmission or distribution services to an

5-9  alternative seller pursuant to a contract, tariff or requirement of any state or

5-10  federal law, except that the city, county or other local governmental entity

5-11  or public utility, or an affiliate thereof, shall provide such transmission and

5-12  distribution services on an open and nondiscriminatory basis to alternative

5-13  sellers in accordance with such standards as the commission may establish

5-14  by regulation for the provision of transmission and distribution services in

5-15  accordance with this subsection.

5-16    8.  Regulations adopted pursuant to subsection 2:

5-17    (a) Must not be unduly burdensome;

5-18    (b) Must not unnecessarily delay or inhibit the initiation and

5-19  development of competition for any service in any market; and

5-20    (c) May establish different requirements for licensing alternative sellers

5-21  of:

5-22      (1) Different services; or

5-23      (2) Similar services to different classes of customers,

5-24  whenever such different requirements are appropriate to carry out the

5-25  provisions of NRS 704.965 to 704.990, inclusive.

5-26    9.  An alternative seller may combine two or more customers or any

5-27  group of customers to provide aggregation service. The commission may

5-28  not limit the ability of:

5-29    (a) An alternative seller to combine customers to provide aggregation

5-30  service; [or]

5-31    (b) Customers to form groups to obtain aggregation service from

5-32  alternative sellers[.] ; or

5-33    (c) A municipal aggregation coalition to carry out a program of

5-34  municipal aggregation pursuant to sections 2 to 7, inclusive, of this act.

5-35    Sec. 11.  This act becomes effective upon passage and approval.

 

5-36  H